Item 8-ADCAP Presentation to CDC — original pdf

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Anti-Displacement Community Acquisition Program (ADCAP) Review and Recommendations for Consideration Chase Bryan, Senior Planner Housing Department August 2025 Content ADCAP Background & Overview Findings from the Staff Report Recommendations from the Staff Report Implementation Options & Next Steps ADCAP Background & Overview Creation  2020 community advocacy for rapid acquisition funds for 501(c)3 community development organizations, allocated from the $300 million in Project Connect Anti-Displacement Funding  ADCAP created in December 2021 after direction from Council Resolution No. 20210204-062  $8 million allocation  2 main functions of ADCAP: – Protect housing and land from speculation in gentrifying areas – Support nonprofit community development organizations 4 ADCAP Guideline Overview  Zero-interest forgivable or non-forgivable loans (AHFC discretion) for real property acquisition  Rolling application with a relatively quick award timeline  Available to 501(c)3 nonprofit developers  Small sites (1 acre or less)  May only be used within a Displacement Risk Census Tract and within 1 mile of a Project Connect bus or rail line  Income requirements: – At least half of the housing units must be affordable to households earning 50%MFI (rental) or 80%MFI (owner) – Affordability periods are 40 years for rental and 99 years for ownership 5 ADCAP Awards to Date, 2022-2024 6 ADCAP Awards to Date $8 million allocated $3,600,000 awarded $4,400,000 remaining Project Owners + Partners 8402 Garcreek Cir. 3306 Vintage Hills 300 Carmen Court 302 Carmen Court 8301 Riverstone Dr. 806 Vargas Rd. 8418 Riverstone Dr. Austin Revitalization Authority Austin Revitalization Authority Austin Revitalization Authority Austin Revitalization Authority Austin Revitalization Authority + Equidad ATX Guadalupe Neighborhood Development Corporation Austin Revitalization Authority Affordable (income- restricted) Units 4 units, rental, (4) 2- bed 4 units, rental, (4) 2- bed 4 units, rental, (2) 2- bed, (2) 1-bed 4 units, rental, (2) 2- bed, (2) 1-bed 3 units, ownership, (4) 3-bed 2 units, ownership, (1) 2-bed, (1) 3-bed 4 units, rental, (4) 2- bed Award Amount $458,000 $780,000 $650,000 $650,000 $150,163 $240,000 $674,000 Lot Size (acres) Year of Acquisition 0.36 0.23 0.21 0.22 0.31 0.15 0.23 2022 2023 2023 2023 2024 2024 2024 7 ADCAP Awards to Date $8 million allocated $3,600,000 awarded $4,400,000 remaining Project Owners + Partners 8402 Garcreek Cir. 3306 Vintage Hills 300 Carmen Court 302 Carmen Court 8301 Riverstone Dr. 806 Vargas Rd. 8418 Riverstone Dr. Austin Revitalization Authority Austin Revitalization Authority Austin Revitalization Authority Austin Revitalization Authority Austin Revitalization Authority + Equidad ATX Guadalupe Neighborhood Development Corporation Austin Revitalization Authority Affordable (income- restricted) Units 4 units, rental, (4) 2- bed 4 units, rental, (4) 2- bed 4 units, rental, (2) 2- bed, (2) 1-bed 4 units, rental, (2) 2- bed, (2) 1-bed 3 units, ownership, (4) 3-bed 2 units, ownership, (1) 2-bed, (1) 3-bed 4 units, rental, (4) 2- bed Award Amount $458,000 $780,000 $650,000 $650,000 $150,163 $240,000 $674,000 Lot Size (acres) Year of Acquisition 0.36 0.23 0.21 0.22 0.31 0.15 0.23 2022 2023 2023 2023 2024 2024 2024 8 ADCAP Awards to Date $8 million allocated $3,600,000 awarded $4,400,000 remaining Project Owners + Partners 8402 Garcreek Cir. 3306 Vintage Hills 300 Carmen Court 302 Carmen Court 8301 Riverstone Dr. 806 Vargas Rd. 8418 Riverstone Dr. Austin Revitalization Authority Austin Revitalization Authority Austin Revitalization Authority Austin Revitalization Authority Austin Revitalization Authority + Equidad ATX Guadalupe Neighborhood Development Corporation Austin Revitalization Authority Affordable (income- restricted) Units 4 units, rental, (4) 2- bed 4 units, rental, (4) 2- bed 4 units, rental, (2) 2- bed, (2) 1-bed 4 units, rental, (2) 2- bed, (2) 1-bed 3 units, ownership, (4) 3-bed 2 units, ownership, (1) 2-bed, (1) 3-bed 4 units, rental, (4) 2- bed Award Amount $458,000 $780,000 $650,000 $650,000 $150,163 $240,000 $674,000 Lot Size (acres) Year of Acquisition 0.36 0.23 0.21 0.22 0.31 0.15 0.23 2022 2023 2023 2023 2024 2024 2024 9 Causes for Program Review  Relatively few awards to a few organizations  Few homes created and preserved relative to other programs  Program paused in October 2024 to evaluate and identify opportunities for improvement Fiscal Year 2022 2023 2024 Number of Awards 1 3 3 Number of Units 4 12 9 Projects Awarded 7 Total Units Preserved Units New Units* 25 20 5 Ownership Units 5 Rental Units 20 ADCAP Funding per Unit $111,120 Family-sized Units 21 * Proposed new units are not yet constructed. 10 Evaluation Process  Reviewed the intent and vision behind ADCAP  Reviewed documentation on the program  Interviewed stakeholders  Reviewed funding awards  Reviewed program performance by key metrics  Compared with similar funding programs in other cities 11 Stakeholders Interviewed  Small Nonprofit Developers  Other Program Leaders – Austin Revitalization Authority (ARA) – Guadalupe Neighborhood Development Corporation (GNDC) – Blackland CDC – Seattle Equitable Development Initiative – Texas Community Capital (TCC)  City of Austin Staff – Housing Department/AHFC – Equity Office – Law Department 12 Findings from Staff Report Findings  Lack of program awareness  Inconsistent understanding of ADCAP requirements and intent  Timeline pressures  Lack of small nonprofit developers in Austin  Low spending threshold for AHFC administrative approval  Lack of program flexibility 14 Recommendations from the Staff Report Recommendations Housing Department/AHFC Actions 1. Clarify program guidelines 2. Adjust application intake schedule 3. Improve awareness among small community-oriented developers and integrate with EDI Training 4. Expand site size eligibility for multifamily preservation 5. Report outcomes on Project Connect Anti-Displacement Funding Dashboard 6. Enhance capacity to manage the program 16 Recommendations City Council Actions 1. Expand ADCAP applicant eligibility 2. Amend AHFC procurement policy to increase the administrative approval threshold for land acquisition 17 Implementation and Next Steps Implementation and Next Steps Shorter term changes: – Update program guidelines – Website improvements – Equitable Development Initiative (EDI) training – Site size eligibility for multifamily acquisition – Intake schedule Longer term changes/lessons learned: – Increase administrative capacity – Funding eligibility – Administrative Approval threshold 19 Discussion and Questions Thank You Chase Bryan – chase.bryan@austintexas.gov