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AHFC December 12, 2024

District: 2 | Southern Austin

District: 3 | Southeast Austin

CC December 12, 2024

District: 3 | East Riverside

District: 7 | North Austin

District: 4 | Wooten

District: 9 | Upper Boggy Creek

District: 4 | Northern Austin

District: 3 | South Congress

District: 7 | Northern Austin

District: 9 | Old West Austin

City Council 12/12/24

On December 12, 2024, the City of Austin approved Resolution No. 20241212-036, authorizing the issuance of up to $5 million in tax-exempt multifamily housing revenue bonds for Bridge at Canyon View, a 215-unit affordable senior housing development located in southern Austin’s District 2. The project, developed through a partnership between LDG Development and HACA subsidiary Austin Affordable Housing Corporation (AAHC), represents a $62.68 million investment combining $32.46 million in debt financing, $24.03 million in tax credit equity from Citi, and $6.20 million in deferred developer fees. The financing structure leverages 4% Low Income Housing Tax Credits with private activity bonds, delivering all 215 units at 60% Area Median Income (AMI).

The Bridge at Canyon View's total bond financing consists of multiple series: the original tax-exempt multifamily housing revenue bonds from 2019, a subsequent subordinate series issued in 2023, and the newly approved supplemental issuance of up to $5 million in December 2024. The deal utilizes a multi-tranche bond structure, transitioning from construction to permanent financing through Ready Capital (formerly Redstone) as the lender. While the original private activity bond cap was established at $25 million in the 2016 MOU, the total bond authorization across all series demonstrates the project's evolving capital needs through development and stabilization. The December 2024 action specifically focuses on converting the supplemental short-term bonds to a long-term structure at a more favorable interest rate, utilizing proceeds from permanent debt conversion and final equity installment to retire construction debt and operating advances

While the MOU between LDG and HACA subsidiary AAHC was executed in 2016, construction completed in July 2024. The 215-unit senior multifamily deal achieved 95-100% occupancy immediately upon opening.

AAHC's subsidiary, Bridges at Canyon View GP, LLC, serves as the sole General Partner, while LDG takes a 0.01% Special Limited Partner position. The Housing Authority of City of Austin (HACA) maintains land ownership through a 99-year ground lease, with annual rent waived contingent on affordable housing use. This structure enables property tax exemption while ensuring long-term affordability through public control of the land.

The developer fee arrangement splits 15% of total development costs 70/30 between LDG and AAHC respectively, with any deferrals split proportionally. After development fee payment and priority distributions, cashflow and disposition proceeds split 51% to AAHC and 49% to LDG. AAHC maintains a right of first refusal at the statutory minimum price after the 15-year compliance period.

The project's operating assumptions include 7.5% vacancy/collection loss, $3,500 per unit expenses including reserves, and minimum 1.15x debt service coverage. AAHC advanced $250,000 for pre-development costs, reimbursable at closing. Construction oversight includes specific controls - change orders exceeding $10,000 individually or $25,000 in aggregate require AAHC approval. Construction cost savings from sales tax exemptions split 70/30.

The 2016 MOU established several key structural elements that carried through to completion. It outlined a $25 million private activity bond cap for the initial issuance, with AAHC contributing $250,000 in pre-development funding. The MOU structured key operational assumptions: 7.5% vacancy/collection loss, $3,500 per unit expenses including reserves, and 1.15x minimum debt service coverage. Construction oversight requirements included AAHC approval for change orders exceeding $10,000 individually or $25,000 in aggregate. The MOU also established the 70/30 split of construction cost savings from sales tax exemptions.

LDG’s financing structure layers $32.46 million in debt, $24.03 million in third-party equity from Citi as the LIHTC investor, and $6.20 million in deferred developer fees, totaling $62.68 million. The project used both an initial bond issuance and a supplemental bond series, with Ready Capital as the lender. The latest board action in December 2024 involves converting the supplemental short-term bonds to long-term bonds at a lower interest rate, using proceeds from permanent debt conversion and final equity installment to retire construction debt and operating advances.

Unit mix splits: 71 one-bedrooms, 54 two-bedrooms, and 90 three-bedrooms. The larger unit sizes reflect the project's family focus, with three-bedrooms comprising 42% of units. Based on 2024 rent limits, maximum rents range from $1,417 for one-bedrooms to $1,965 for three-bedrooms at 60% AMI. These rents must cover operating expenses while servicing the substantial debt load, demonstrating the delicate financial balance in affordable housing operations.

The property actively markets to Housing Choice Voucher (HCV) holders and serves a critical community need. Many initial residents had family connections in the neighborhood, highlighting the development's role in maintaining community cohesion. The location provides access to Perez Elementary, Mendez Middle School, and Akins High School, with proximity to Austin Community College South Campus and St. Edward's University.

Property management is handled by Capstone Management Services or equivalent, with third-party management responsible for resident social services. The inclusion of after-school programs and social services demonstrates a holistic approach to resident support beyond housing alone.

The timeline from 2016 MOU to 2024 lease-up is a long road. Multiple bond inducements and supplemental issuances were required, showing how financing often evolves to meet changing market conditions and development needs. The December 2024 refinancing to convert short-term debt to permanent financing represents the final step in stabilizing the property's capital stack.

City Council 12/12/24

The Sasha represents a 60-unit permanent supportive housing development in Austin's District 3, structured through a public-private partnership between established housing developers and service providers. Austin Housing Finance Corporation (AHFC)’s role is purely a lender utilizing GO Bond and Project Connect funds, with the loan characterized as forgivable and structured to align with TDHCA's supportive housing requirements that eliminate permanent debt service. There is no going AHFC involvement beyond loan administration.

Development Team

Ownership Structure Grove Supportive Housing Partnership LP owns the development with:

Public Agency Roles

Service Provider Integration
SAFE Alliance provides comprehensive supportive services including:

The December 12, 2024 Austin City Council approval authorized the partial release of 0.886 acres from existing lease agreements to facilitate The Sasha's development. This technical approval clears a crucial site control hurdle within a complex financing structure:

Capital Stack Structure
The $26.8M development utilizes a $12M construction loan from Amegy Bank at 7.5% interest for 24 months. The permanent capital structure eliminates traditional permanent debt, instead utilizing $16.78M in tax credit equity (NEF at $0.8625 per credit) and an $8.5M forgivable loan from the City of Austin. The lack of permanent debt aligns with TDHCA's definition of Supportive Housing.

Public Funding Components
The City of Austin's involvement includes multiple layers: an $8.5M forgivable loan ($4.68M from 2022 GO Bonds, $3.82M from Project Connect funds), approximately $150,000 in fee waivers through S.M.A.R.T. Housing certification, and a 99-year ground lease restructuring of the 0.886-acre development site.

Operating Subsidy
The Housing Authority of the City of Austin committed 25 project-based vouchers (41% of units) through a 20-year HAP contract valued at $10.32M. The contract establishes initial contract rents at $1,471 for one-bedrooms, $1,721 for two-bedrooms, and $2,213 for three-bedrooms, with utility allowances of $54, $68, and $84 respectively.

Affordability Structure
The development maintains deep affordability with 6 units at 30% MFI, 25 units at 40% MFI, and 29 units at 50% MFI. All 60 units operate as Continuum of Care (CoC) units with a 45-year affordability period. This 100% supportive housing model influenced several unique financing aspects:

Tax Credit Structure
The development received a $1.946M annual allocation of 9% credits, generating $16.78M in equity through five installments: 15% at admission, 30% during construction, 38.95% at completion, 15% at stabilization, and 1.05% upon 8609 receipt. The equity pricing reflects current market conditions for supportive housing developments.

Development Team Structure
The ownership entity, Grove Supportive Housing Partnership LP, combines DMA Development Company with SAFE Alliance Affordable Housing Corporation. JSA Development and SAFE provide guarantees jointly through stabilization, after which SAFE becomes sole guarantor with required liquidity of $1M and net worth of $5M.

Operating Pro Forma
First-year operating expenses total $685,572 ($11,426 per unit) with $256,108 in net operating income. The development eliminates traditional DCR requirements through its supportive housing structure with no permanent debt service.

The Sasha demonstrates several unique features in affordable housing finance: elimination of permanent debt, full integration of supportive services, deep affordability requirements, and significant public funding leverage. The structure creates long-term sustainability through operating subsidies while maintaining deep affordability targeting.

City Council 12/12/24

The Austin City Council unanimously approved RockFarmer Properties' rezoning request for 2201 Willow Creek Drive on December 12, 2024, marking a significant shift in how the city approaches affordable housing preservation in market-rate redevelopment. The project will transform a 7.085-acre site containing 210 aging multifamily units into approximately 1,100 new units with 20,000 square feet of ground-floor retail.

The development team, led by Kostas Koutsothanasis and George Michelis, negotiated an unprecedented affordability package: 210 units (19.1% of total) restricted at 50-60% MFI for 40 years, maintaining the exact unit count and bedroom mix of the existing naturally occurring affordable housing. This represents full replacement of affordable units, a rarity in market-rate redevelopment.

District 3 Council Member José Velásquez, who led negotiations, emphasized the project's significance:

The deal received unusual praise from typically development-skeptical council members, with Velásquez noting he received "a ton of thank yous that I have never received during any zoning ever."

The tenant protection package includes: $3,000 relocation stipends Right to return with priority access Lease termination without penalty Full security deposit refunds 180-day demolition notice Three months' free rent On-site relocation services

District 4 Council Member José “Chito” Vela highlighted the quality improvement aspect:

The development will increase density from 30 to 155 units per acre while adding water quality improvements and commercial accessibility.

Mayor Pro Tem Natasha Harper-Madison brought personal perspective to the quality versus affordability debate:

The transportation analysis projects 5,115 new daily trips, requiring a 30% trip reduction through Transportation Demand Management measures. The site will have two access points: one on Willow Creek Drive and one on Anken Drive. The developer must dedicate right-of-way to meet Austin Strategic Mobility Plan standards.

The rezoning from MF-3 to GR-MU-V-DB90 enables vertical mixed-use development with increased height through the city's density bonus program. The case involved multiple amendments, including adding the DB90 (Density Bonus 90) combining district in March 2024. The project aligns with Imagine Austin Corridor goals, sitting 0.10 miles from the South Pleasant Valley Activity Corridor and 0.14 miles from the Riverside Station Town Center.

Council Member Vanessa Fuentes praised the precedent-setting nature:

City Council 12/12/24

Two institutional owners are coordinating to develop nearly 38 acres for high-density residential near the planned Capital Metro Red Line Broadmoor Station in North Austin's Burnet/Gateway corridor.

The larger eastern assemblage, controlled by Barings Real Estate through TR Stonehollow Corp (operating from 111 S. Wacker Dr. in Chicago), spans 28.59 acres across six distinct tracts. Stonehollow East would replace the industrial space with 1,185 multifamily units under Robert Whitney's direction. The development encompasses 352,000 SF across five improved tracts, primarily consisting of 210,000 SF of warehouse/office space, with supplemental warehouse and office improvements complemented by surface parking. Barings acquired these properties through a 2015 deed from Metropolitan Life Insurance Company, positioning for this eventual redevelopment play.

The western portion, totaling 9.35 acres in two tracts, involves a partnership between Barings and HPI Real Estate Services. Barings controls the 3.43-acre northern tract currently occupied by Harmony School of Science, while the 5.92-acre southern tract is owned by Stonehollow A Ltd., an HPI entity led by Richard Hill and D. Kent Lance from their Austin headquarters. The western parcels would accommodate 400 units, bringing the combined development total to 1,585 units on 37.94 acres.

The coordinated rezoning effort would transform the sites' development potential from the current NBG-NR-NP designation (allowing 2:1 FAR and 60-foot heights) to NBG-CMU-M-NP (enabling 10:1 FAR and 350-foot heights with development bonuses). This matches recent precedent-setting cases in the area, including the October 2024 upzoning at 11700 Metric (800 Units on 11 Acres from Mile Rock Capital, Andreas Papageorge, C14-2024-0090).

The location offers exceptional transit connectivity, sitting within a half-mile walk of the future Broadmoor Station. Multiple Capital Metro routes serve the immediate area, with stops directly adjacent on Stonehollow Drive (#5760) and at Metric Boulevard (#2568). The Austin Strategic Mobility Plan designates both Stonehollow Drive and Gracy Farms Lane as Level 3 roadways, requiring 116-foot rights-of-way to accommodate future multimodal improvements.

Development parameters include an 80% impervious cover maximum under Walnut Creek Watershed regulations. The proposals must incorporate parkland dedication, with city staff indicating interest in neighborhood park space and greenbelt connections, particularly given the eastern tract's location in a park-deficient area.

While specific development plans and unit mixes remain undefined at the rezoning stage, the scale and institutional backing suggest a significant mixed-income residential project. The coordinated applications, filed through David Hartman at DuBois Bryant & Campbell, have garnered staff support and unanimous Planning Commission approval (12-0 on November 12, 2024). There was no discussion or feedback from the Council at the 3rd reading approval on December 12, 2024.

The timeline points toward 2027 delivery, with both properties requiring demolition of existing improvements. The development would generate 7,196 daily vehicle trips, reduced to 4,104 through required TDM measures and existing traffic credits. This careful attention to transportation impacts, combined with the transit-oriented location and institutional sponsorship, positions these properties for a transformative redevelopment that could help establish the area as Austin's "second downtown."

City Council 12/12/24

Anderson Square represents a transformative 16-acre mixed-use project that secured first reading approval from Austin City Council on December 12, 2024. The development, spearheaded by Jimmy Nassour and James Cotton through Anderson Square Investments, LLC & C2G, LLC, sits at a critical transit nexus near the North Lamar Transit Center and future Project Connect light rail expansion.

The project's approval journey reveals evolving approaches to Austin's transit-oriented development strategy. Initially proposing a 250-foot height limit, the development team amended to 120 feet in May 2024 based on staff recommendations, only to revert to 250 feet in November 2024 after finalizing community benefit agreements. This flexibility in height negotiations proved crucial for securing broader community support.

The site's financial metrics are compelling: 552,750 square feet of office space coupled with 632,750 square feet of retail space, operating under an aggressive 8:1 floor-to-area ratio with 95% lot coverage. The development will generate an estimated 23,529 additional daily trips, mitigated by a committed 20% reduction through Transportation Demand Management strategies.

During the August 27, 2024 Planning Commission meeting, Commissioner Jennifer Mushtaler articulated a central concern about the project's zoning approach, trying to "make a PDA work with tools we don't have, and for results we won't get." This sentiment reflected broader commission concerns about using Planned Development Areas (PDAs) rather than Planned Unit Developments (PUDs) for projects of this scale.

The community benefits package, negotiated through eight versions of the agreement, includes:

The Wooten Neighborhood Plan Contact Team's negotiations with the developer are noteworthy. Despite common neighborhood concerns about not enough parking for new multifamily and the spillover effect into neighborhoods, Ryan Nill, Wooten Neighborhood Plan Contact Team Chair, expressed concerns about parking and its impact on walkability.

The project's affordable housing requirements scale with building height:

A distinctive aspect of the community agreement involves the site's iconic Pink Gorilla, which will either be incorporated into the development's car-free paseo or donated to the City's Park Department for placement in Wooten Neighborhood Park – an unusual preservation requirement that emerged from community negotiations.

Despite Staff's recommendation for denial, preferring a PUD structure for stronger community benefits enforcement, the Planning Commission approved the CH-PDA-NP zoning 8-0 on November 19, 2024. This approval came after multiple postponements throughout 2024, reflecting the complex negotiations required to align developer objectives with community interests.

City Council 12/12/24

The 1230 E. 38th 1/2 Street development, led by Jimmy Nassour and Graham Carter through their respective entities (38th Half St Holding LLC et al.), received final approval from Austin City Council on December 12, 2024. The 4.44-acre transit-oriented project represents a significant density increase in the Upper Boggy Creek Neighborhood Plan area.

The rezoning request evolved from CS-MU-V-CO-NP to CS-MU-V-CO-DB90-NP, utilizing Austin's new DB90 (Density Bonus) program that replaced the invalidated VMU2 framework. The development must meet strict affordability requirements: either 12% of units at 60% MFI or 10% at 50% MFI for rental properties, with a 40-year affordability period.

The project's entitlements are notable:

Community negotiations were substantial, with Cherrywood Neighborhood Association Chair Jim Walker acknowledging constructive dialogue while expressing three primary concerns:

The Planning Commission approval (7-1-0) reflected mixed sentiments. Commissioner Ryan Johnson praised it as "thoughtful dense mixed-use infill development," while Vice Chair Awais Azhar pushed for additional community benefit commitments.

Staff initially recommended denial, preferring a PUD structure for stronger community benefit enforcement. However, the project's proximity to the North Lamar Transit Center and future Project Connect light rail expansion aligned with Austin's transit-oriented development goals.

Technical requirements include:

The approval follows eight postponements between February and November 2024.

City Council 12/12/24

The Austin City Council approved CS-MU-V-DB90-NP zoning for PCD Burnet, Ltd.'s 273-unit mixed-use development at 8909, 9030-1/2, and 9034 Burnet Road. The 2.57-acre site, currently operating as Highland Lanes Bowling Alley, will be redeveloped with ground-floor commercial space (4,000 SF) and multifamily units above. The land was valued at $7,290,530 in 2024.

The project represents a direct response to Austin's invalidated VMU2 program. Owner Peter L. Donovan had previously secured VMU2 zoning and submitted site plans under those entitlements before a Travis County judge invalidated the program in late 2023. The DB90 (Density Bonus 90) designation serves as a replacement mechanism, allowing the same development standards: 90-foot maximum height (60 feet base plus 30 feet bonus) with modified compatibility standards in exchange for affordable housing.

The affordability component requires 12% of rental units (approximately 33 units) to be restricted at 60% MFI for 40 years. This matches the previous VMU2 requirements, maintaining continuity in Austin's density bonus strategy along transit corridors.

The project received unanimous support from the Planning Commission on November 12, 2024 (12-0 vote, with Commissioner Cox absent) and Consent approval from Council, both without any discussion.

City Council 12/12/24

The Industrial Boulevard and Terry O Lane development secured final approval from Austin City Council on December 12, 2024, marking the culmination of an 18-month negotiation process between Twin Oaks Associates Ltd, Ungar & Company, and the South Congress community.

The 5.791-acre site will transform from limited industrial (LI-NP) to planned development area (LI-PDA-NP) zoning, enabling construction of 400 multifamily units alongside 765,000 square feet of office space and 40,000 square feet of warehouse space. The development stands out for its significant density, with a 6:1 FAR and 125-foot maximum height allowance.

Community negotiations centered on affordability requirements, resulting in a 12% affordable housing commitment (48 units) with specific unit mix requirements to prevent concentration of efficiency units. This represents a notable increase from the initial proposal, though some community members pushed for deeper affordability levels.

Council Member José Velásquez (District 3) played a key role in facilitating dialogue between the developer and community, thanking the developers’ negotiations with the community in September.

The South Congress Combined Neighborhood Plan Contact Team raised persistent concerns about affordability terms. Team Chair Mario Cantu emphasized the need for "solidified" long-term affordability that could span "two years, two days, 20 years," while community member Gene Adams highlighted discrepancies between proposed 20-year versus standard 40-year affordability periods.

Transportation impact analysis revealed the development will generate 8,777 daily vehicle trips, with the site benefiting from proximity to Capital Metro's rapid bus route. The development requires modest right-of-way dedications: 4 feet on Industrial Boulevard and 2 feet on Terry O Lane.

The project team, led by Merrick Ungar and Scott Ungar, with Glen Coleman managing the zoning process, successfully navigated multiple postponements while maintaining the core development program: 80% lot coverage, mixed-use orientation, and significant office component.

Monica Guzman from Go Austin/Vamos Austin voiced concerns about affordability depth, calling for "a greater number of units that are affordable at a deeper affordability that are family-friendly." However, the final approval on consent indicates the development team sufficiently addressed key community concerns through the enhanced affordability commitment and unit mix requirements.

City Council 11/21/24

City Council 9/26/24

The deal has faced persistent community opposition through multiple postponements. At the

City Council 12/12/24

New York-based Gilbane Development Company is proposing a 375-unit multifamily development in Austin's Brentwood neighborhood, leveraging the city's new DB90 density bonus program. The 2.96-acre site sits at a key intersection of Burnet Road and Houston Street, combining nine separate parcels including a recently vacated portion of Clay Avenue.

The development stands out for its scale relative to the existing neighborhood context. Entitled to 90 feet (using the full 30-foot DB90 height bonus above the 60-foot base zoning), it will be one of the larger residential developments along this section of Burnet Road. The project's 375 units on under 3 acres represents significant density for the area.

A defining characteristic is the project's mixed-use nature - Gilbane must dedicate 75% of the Burnet Road ground floor frontage to commercial or civic uses. This continues the corridor's evolution toward pedestrian-oriented development, supported by existing MetroRapid bus service.

The site assembly strategy is notable. Gilbane first secured zoning entitlements in 2023 for most of the parcels, then acquired additional Burnet Road frontage and successfully petitioned to vacate the Clay Avenue right-of-way between their holdings. This created a larger, more efficient development site that can now accommodate the full 375 units.

While the project will participate in Austin's DB90 program requiring affordable housing commitments, the specific affordability mix is not yet disclosed. The development will need to either provide 12% of rental units at 60% AMI for 40 years, or 10% of units at 50% AMI for the same period.

The development must also provide parkland dedication, though the exact form (land vs. fees) remains undetermined.

The property's assessed value notably dropped from $2.95 million to $2.31 million in 2024 after existing improvements were removed, potentially indicating preparation for redevelopment. This site transformation from aging commercial and small multifamily uses to high-density mixed-use development exemplifies the ongoing evolution of Austin's core transit corridors.

City Council 12/12/24

The 1209 W 5th Street rezoning case, developed by Bridger Holdings LLC under Laura V Greissing, reached a critical juncture at the December 12, 2024 City Council meeting for second and third readings. The proposal seeks to increase height from 60 to 120 feet through a zoning change from LI-CO-NP to LI-PDA-NP on a 0.46-acre site in Old West Austin.

The November 7th first reading passed 7-3, with Mayor Watson, Council Member Kelly, and Council Member A. Alter opposing. District 9 Council Member Zohaib "Zo" Qadri supported the project.

The development parameters include a 6.5:1 FAR and 95% lot coverage. The motion sheet specifies height restrictions based on use: 120 feet for residential, 90 feet for commercial, or 120 feet for mixed-use if 70% residential (hotel/motel can satisfy up to 50% of residential requirement).

OWANA Zoning Committee Chair Sheila Lyon led community opposition.

The project received 17 letters of opposition and zero in support.

Technical concerns emerged around the site's small size. Architect Donna Osborn noted "there are no properties nearby that are over 75 feet." James Cowser, a 45-year resident, emphasized the speculative nature: "they're not bringing you a plan and design and a developer."

The project represents a significant departure from area norms. While located on a transit corridor with high-frequency bus service, the 0.46-acre site is notably smaller than comparable developments. The Planning Commission approved on consent in July 2024, despite substantial neighborhood debate.

The proposal includes permitted uses ranging from multifamily residential to commercial offices, with specific conditions on industrial and civic uses. Staff recommends approval, citing proximity to downtown Austin (less than 1/4 mile) and alignment with Imagine Austin Corridors planning objectives.

The neighborhood has proposed DB90 zoning as an alternative, which would guarantee affordable housing components and require 75% ground floor pedestrian-oriented commercial space. The case is scheduled for second and third readings on December 12, 2024.

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