AUSTIN (KXAN) — An Austin nonprofit was awarded $6 million to expand affordable housing as the cost of living continues to rise in the city.
The $6 million, awarded from the Capital Magnet Fund administered by the U.S. Treasury Department’s Community Development Financial Institutions Fund (CDFI Fund), will help Foundation Communities reach the $30 million it needs to build or complete eight new affordable apartment communities all over Austin, according to a press release.
“We are excited that this award from the Treasury Department moves us closer to welcoming home more than 2,000 residents, many of whom will come directly out of homelessness,” said Foundation Communities Executive Director Walter Moreau in the release. “This funding comes at a critical time when our waiting lists for affordable housing are longer than ever.”
Foundation Communities plans to build affordable housing for low-income families and single adults. Residents will benefit from below market rate rental prices, as well as an array of support services designed to help them in the areas of education, financial wellness and health.
Family income has grown within the last year, but that has not been enough to to keep up with housing affordability. The year-over-year growth in median home sales price was 21.8%, according to researchers at Texas A&M University’s Texas Real Estate Research Center.
Foundation Communities is one of 59 organizations nationwide that will receive a total of $336.4 million for development of affordable housing and community facilities serving low-income individuals, families and communities.
The nonprofit owns and operates 23 affordable communities all over Austin and three in North Texas.