Item 5- Affordable Housing Working Group Update — original pdf

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BEATF Housing Work Group Recommendation Feb. 23, 2026 The Need is Great The Need is Great Housing for Low Income Families  Surveys revealed this was a high priority for Austinites and the 2026 GO Bond package.  34% of “Respondents expressed significant concern about rising rents, evictions, and displacement, as well as widespread recognition of homelessness as a critical issue. Many called for urgent and sustained investment in affordable housing, shelters, and tenant protections”  “Housing and Homelessness” are top responses from surveys and open houses and remain core demands from the community  City affordable housing spending is targeted to 30-50% MFI and below, including Permanent Supportive Housing Other Community Benefits  Data show that that public investments in low-income housing and homeless services have societal payoffs that exceed the benefits received by the folks housed, including safer streets and reduced social service spending  City affordable housing spending priorities include carbon-mitigating strategies, including targeting transit corridors and green building standards such as energy efficient units and solar or alternative energy initiatives, environmental superiority, water conservation, and climate resiliency;  Housing Investments create:  After-school and summer learning programs for children;  Amenities, activities and support services for seniors.  Job creation and growth of the local economy  Reduction in public costs for services such as emergency room visits and extra counseling for students The City’s Request  Homeless Strategy Office asked for $50M to replace the ARCH and a few other shelters with a new facility with many services and beds provides.  Also, $15M for a Homeless Resource Center to provide case management and a range of services including directing folks to where they can get food, clothing, and shelter.  For housing low-income individuals and families, the request from the Housing Department was $350M, to match the $40M to $80M spent each year over 6 years for projects such as Foundation, Habitat for Humanity, Caritas and others in creating housing units.  Homes are provided either as rental housing (RHDA) or for home-ownership (OHDA). In almost all cases, the City’s contribution is a fraction of the total project cost but is required to complete the entire package.  The City also has a Partnership program and a Home Repair program. Reality  We recognize the constraints in the size of a 2026 (or 2028) GO bond and the many demands for transportation infrastructure, parks, flood control, libraries, rec centers, and public safety.  Our WG collaborated on developing a “low, medium, high” recommendation based on original request, feasible production timelines, and priority sections for affordable housing spending  Bond funding from prior Affordable Housing Bonds has been allocated to pipeline projects, and was planned for full budget commitment by this fiscal year; stretching this allocation by reducing annual projects and units supported would only allow extension to FY2028  Our consensus… Recommendations for HSO – Homeless Strategy Office Housing – Development of Affordable Housing HSO Housing Total Recommendation Medium Recommendation Floor Recommendation $50M $270M $320M $47M $145M $192M $45M $105M $150M