Item5-COA 2024 HUD PRO Housing Grant Proposal — original pdf

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z City of Austin 2024 HUD Pathways to Removing Obstacles (PRO) Grant Proposal October 8, 2024 Community Development Commission HUD PRO Housing Grant: Goals and Proposed Activities Update the Austin Strategic Housing Blueprint and Opportunity Mapping Index Create New Zoning Tools to Unlock Missing-Middle and Urban Mixed-Use Development Develop and Preserve Affordable Housing Near Planned Light Rail Investment 2 BACKGROUND: HUD Pathways to Removing Obstacles to Housing (PRO) Grant Basics • Supports efforts to remove barriers and increase • affordable housing production In 2024, HUD awarded 21 PRO Housing grants Austin applied in 2023 but was not selected The second PRO Housing round offers $100 M • • Up to $7M per award • Performance period: 2025-2030 • Priority: Given to applicants showing commitment and progress in overcoming local barriers to affordable housing, with acute demand (Austin qualifies as a priority geography) The Arnold - 1621 E 6th St Austin TX 78702 3 HUD PRO Housing Grant: Need / Challenges Need • Austin, Texas is listed as a priority geography with acute demand for Affordable Housing, due to: • Unequal geographic distribution of affordable housing • A high ratio of median home price to area median income • Rising number of individuals who are homeless • Heavy displacement pressure • Aging rental housing stock $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 Austin Area Home Prices Vs. Median Household Income Median Home Value Median Household Income Source: American Community Survey 2006-2022 1-Year Estimates, Tables B19013(A-I) and B25077 Overall MHI (2022 Dollars Inflation Adjusted) Median House Value 4 HUD PRO Housing Grant: Need / Challenges Key Barriers to Affordable Housing Goals • Socio-Political Barriers: Lack of updated action plan to meet housing goals, disparities affecting protected classes, uneven affordable housing distribution, and lack of public transit and infrastructure in key areas • Regulatory Barriers: Slow, complex regulatory processes and exclusionary land use rules • Economic Barriers: Mismatch between incomes and housing costs, high land and construction costs, financing challenges for affordable housing, and housing supply shortage Improve the City’s ability to meet housing goals through updated data and resource alignment Revise city regulations to ensure a wider range of housing options Invest in affordable housing near planned light rail to ensure easy access to transit, jobs, and services. 5 HUD PRO Housing Grant: Goals and Proposed Activities Update the Austin Strategic Housing Blueprint and Opportunity Mapping Index Create New Zoning Tools to Unlock Missing-Middle and Urban Mixed-Use Development Develop and Preserve Affordable Housing Near Planned Light Rail Investment 6 HUD PRO Housing Grant: Proposed Activities Update the Austin Strategic Housing Blueprint and Opportunity Mapping Index • Revise the Opportunity Index, last updated in 2017, to better guide housing distribution and mitigate displacement risks. • Incorporate new programs and policies not included in the plan such as Project Connect, displacement prevention programs, new real estate tools, and resolutions from Council. • Update the action plan to ensure each action is linked to preserving or creating affordable housing units, with projected unit outcomes to improve reporting and evaluation. • The PRO Housing grant would go towards consultant fees to assist with a progress report, updated Opportunity Mapping Tool, updated Action Plan, and a new FTE to help with GIS mapping and implementation tracking • Timeline: Progress Report and Data Analysis (Q1-Q2 2026) Opportunity Index Update (Q1-Q4 2026) Action Plan Revision (Q1-Q4 2027) 7 HUD PRO Housing Grant: Proposed Activities Create New Zoning Tools to Unlock Missing-Middle and Urban Mixed-Use Development • Today, mixed-use development is mostly prohibited outside a few overlay zones, with no mixed-use base zones available • Missing Middle Housing (MMH) types, such as fourplexes, cottage courts, and multiplexes, are prohibited in single-family zones and are difficult to develop under existing higher density residential zones • A comprehensive and thoughtful approach is necessary to avoid complicating the land development code and to ensure changes are clear, effective, and financially feasible for all development types • The PRO Housing grant would go towards consultant fees to help develop ordinances for new mixed-use zones and missing middle zones • Timeline: Initial Groundwork (Q3 2024 – Q2 2025) Grant-Funded Work Program (Q3 2025 - Q2 2026) 8 HUD PRO Housing Grant: Proposed Activities Development and Preservation of Affordable Housing Near Planned Light Rail Investment • The Austin Housing Finance Corporation (AHFC) is addressing displacement and development pressures along the North Lamar and South Congress transit corridors, aligning its initiatives with the city's Equitable Transit-Oriented Development (ETOD) Policy Plan and Project Connect, which aim to promote affordable housing, sustainability, and inclusivity around new transit infrastructure. • The PRO Housing grant would help close an estimated 5% financing gap for the Ryan Drive Redevelopment, fund a new FTE for land acquisition, and cover consultant fees for property solicitation due diligence along the South Congress Transit Corridor. • Timeline: Ryan Drive Development (Q2 2024- Q3 2027) Congress Development (Q4 2025 - Q1 2029) 9 HUD PRO Housing Grant: Proposed Activities Grant Timeline Public Comment Begins Community Development Commission Briefing and Public Hearing Grant Application Due Sept 19 Oct 8 Oct 15 Oct 1 Oct 10 Housing and Planning Committee Briefing Project Connect Community Advisory Committee Briefing 10 Communications & Public Comment Webpage www.SpeakUpAustin.org/PROHousingGrant2024 11 Thank you! Rachel Tepper, AICP Planner Principal Housing Department rachel.tepper@austintexas.gov