Affordable Housing Update — original pdf

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Affordable Housing Update Affordable Housing Update Mueller Redevelopment Robert Mueller Municipal Airport Plan Implementation Advisory Commission November 12, 2025 Agenda Mueller Redevelopment Background • Vision and Goal • Designing the Program Affordable Rental Update • Affordable Rental Options • • Exceeding MDA Requirements By the Numbers Affordable Ownership Update • Affordable Ownership Options Exceeding MDA Requirements • By the Numbers • Purpose and Leadership Program Partners Program Implementation About the Mueller Foundation • • • • Milestones • • Outreach & Marketing Financial Stability Transition Retention • • Accountability 2 | RMMA PIAC 11/12/25 Background: Vision, Goal & Requirements Vision Mueller will be an interactive, mixed-use, mixed- income community that will be a model for responsible urban development, offering a compact, pedestrian-oriented alternative to the land- consumptive and automobile-dependent development patterns that could influence the form and pattern of growth within Austin. Goal Redevelopment must offer a wide range of housing choices to create a new community of socially and economically diverse residents. MDA Requirements MDA requires 25% of all housing to be affordable For ownership requirement = affordable homes must be available at 80% MFI for at least 1 year For rental requirement = affordable apartments much be available 60% MFI for at least 5 years MDA incorporates Affordable Housing Resolution confirming Catellus (now Banbury) commitment to use good-faith efforts to provide longer and deeper affordability 3 | RMMA PIAC 11/12/25 Background: Designing the Program – 2004-2007 • Development with intermixed affordability was a very new concept; it had not been done in Texas before; 25% affordability an ambitious goal nationally. • One-year affordability was the MDA requirement for homeownership and 5- year affordability requirement for rental; the City and the surrounding community wanted Mueller to go farther. • • The land trust statute did not yet exist when the Mueller Affordable Homes Program was forming. $165,000 homes were available in the marketplace. • Central Park (formerly Stapleton): 10% affordability; fewer resale protections; less interspersed. • The team worked with City of Austin and PeopleFund/PeopleTrust to design the affordability preservation program. • Creation of a nonprofit (Mueller Foundation) to steward the housing program and other public goals. 4 | RMMA PIAC 11/12/25 Background: HomeBase Collaboration • HomeBase is a 501(c) (3) nonprofit sister organization to Austin Habitat for Humanity, providing affordable housing consulting services. • • In March 2023, the Mueller Foundation hired HomeBase to manage Mueller’s affordable resale program. In July 2023, Catellus also hired HomeBase to: o Manage income qualification for all affordable homebuyers and renters o Educate and guide buyers under contract through the affordable home closing process o Help confirm Mueller’s apartment communities are complying with their affordable housing rental agreements o Support the overall marketing of the Mueller Affordable Homes Program o More information available at www.homebasetexas.org/ 5 | RMMA PIAC 11/12/25 Affordable Rental: Diversity of Options Mosaic @ Mueller Sync @ Mueller Wildflower Terrace AMLI @ Mueller Aldrich 51 AMLI on Aldrich Overture The Jordan AMLI Branch Park Rivette Tower AMLI North Park AMLI’s Park Central (construction) 6 | RMMA PIAC 11/12/25 Affordable Rental: Exceeding MDA Requirements Mueller has 25% all current and upcoming rental units as affordable to those who qualify Market-rate rental properties have a minimum of 10% affordable units, with the majority delivering 15% affordable units Long-term affordability from 40-99 years for all rental apartments Predominantly affordable rental developments have reached deeper affordability: some units serve 30-50% MFI and The Jordan provides some transitional housing for those who had experienced homelessness Mueller is a certified S.M.A.R.T. Housing development MFI of Affordable Renters 7% 1% 22% 70% <=30% MFI 30-50% MFI 50-60% MFI 60-80% MFI 7 | RMMA PIAC 11/12/25 Affordable Rental: By the Numbers Number of Apartment Units Completed, Constructed & Contracted Community Market Affordable Total % Affordable Years Affordable Mosaic Sync Wildflower Terrace AMLI Mueller Aldrich 51 AMLI Aldrich Overture The Jordan AMLI Branch Park Rivette Tower AMLI North Park AMLI Park Central 397 271 30 237 36 270 171 0 345 293 277 550 44 30 171 42 204 48 30 132 61 52 49 98 441 301 201 279 240 318 201 132 406 345 326 648 CURRENT TOTAL 2,877 961 3,838 10% 10% 85% 15% 85% 15% 15% 100% 15% 15% 15% 15% 25% 50 50 99 50 99 50 50 40 50 50 50 50 8 | RMMA PIAC 11/12/25 Affordable Rental: Auditing Tax-credit projects • Audit and compliance performed by the State of Texas for Wildflower Terrace, Aldrich 51 and The Jordan • Banbury also monitors unit designation between MFI percentages (e.g. 30%, 60%, 80%, etc.) Income Verification: • To be completed by a third-party for all market-rate projects • Currently conducted by HomeBase; any concerns sent to Banbury Monitoring • Market-rate developments submit monthly rent rolls to HomeBase for review of vacancies and rental rates • Any concern with provided info shared with Banbury The Mueller Project Team and City Housing staff are working together to determine the City’s role and oversight of multi-family developments post-MDA. Auditing • City of Austin audits for S.M.A.R.T. Housing multifamily developments • Mueller MDA – annual audit on both sale and rental housing Reporting • Per the Mueller MDA: Banbury provides two semi-annual affordable housing reports (June and December) 9 | RMMA PIAC 11/12/25 Affordable Ownership: Diversity of Options Yard Homes Garden Court Homes Multi-level Condos Mueller House Condos Row Homes Cottage Homes 10 | RMMA PIAC 11/12/25 Affordable Ownership: Exceeding MDA Requirements Mueller has 25% all current and upcoming ownership units as affordable to those who qualify Longer-term affordability: 30 years using fixed-appreciation model, renewed upon resale for ownership units Self-sustaining model to monitor and enforce compliance with affordability restrictions and provide post-ownership support, i.e. stewardship Affordable homes integrated throughout and indistinguishable from market-rate housing Added some new and resale workforce housing at up to 120% MFI MFI of Affordable Owners 6% 19% 10% 42% 23% 11 | RMMA PIAC 11/12/25 Affordable Ownership: By the Numbers Number of Ownership Units Completed, Constructed & Contracted 1 This figure includes homes and condos built or under construction, including Section 11 and Mueller’s three condo projects: Pearlstone’s Parkside and Austin Modern Loft’s Iris and Concourse 12 | RMMA PIAC 11/12/25 = 25.7% affordable at 80% MFI = 28.2% affordable and 120% MFI Affordable Ownership: Retention TOTAL Garden Home Mueller Home Row Home Yard Home Cottage Home Condo Home All 678 68 133 372 58 17 30 Group 1 Group 2 83 10 11 28 34 0 0 595 58 122 344 24 17 30 936 families served to date: • • 731 original new homes, including “workforce” at 120% MFI 47 released to market o Some homes are less sellable, or there are too many homes entering the market simultaneously o Group I market value is more than the Foundation can afford • 205 resales 678 affordable new and resale homes currently in program as of June 1, 2025 13 | RMMA PIAC 11/12/25 Mueller Foundation: Outreach & Marketing Most Recent Information Sessions To Date: • • • 40 live (Zoom) information sessions Average 102 registrants, 52 participants per session 255+ local organizations contacted Updated marketing materials: Infographic: road to ownership • Resource guide • FAQs • Updated outreach: • • Emails, calls to interest lists and stakeholder groups Targeted advertising on social media, radio, newspapers Encourage attendance to Zoom info sessions, visit website, contact HomeBase; automatically added to interest list • Results of Affirmative Marketing [self-reported through 11.03.2025]: Anglo: 46% • Latinx: 24% • Asian: 12% • Black: 10% • • Multi: 4% • Native American: 1% An example of the information session promotion the Mueller Team has shared 14 | RMMA PIAC 11/12/25 Mueller Foundation: Leadership Purpose: The Mueller Foundation is a 501(c)3 non-profit corporation created by Catellus to support and fund long-term community goals for Mueller with an emphasis on affordable housing Board Members: Suzanna Caballero Rob Repass Kerry Tate Jim Walker Chair Matt Whelan Greg Weaver Leslie Wingo 15 | RMMA PIAC 11/12/25 Mueller Foundation: Program Partners Robin Lafleur, Executive Director Frances Ferguson, Senior Advisor Phyllis Greenberg, Operations Manager Sophia Shaney, Document Management Team Members • • • • • Christy Baker, Data Management Lindsay Smith, Outreach Support • Operating Partners • HomeBase Texas Texas ProTax • • Matt Malcom, CPA • Mueller Property Owners Association • Winstead BCL Texas Brown, Graham & Company Banbury Development Additional Partners • Austin Community Foundation • • • • City of Austin • Grounded Solutions Network • HousingWorks • Mueller’s homebuilders 16 | RMMA PIAC 11/12/25 Mueller Foundation: Program Implementation Home Sales Information sessions and materials • • Answer questions • • • Conduct income certification • Refer first-time homebuyer to learn more Refer some to credit counseling Equity stewardship: o Updated affirmative marketing program o Down-payment program for lower- wealth prospective buyers Home Resales • Foundation has recorded Purchase Option; thus has first right to purchase the home • HomeBase manages resale process: o Determine home price o Market to pre-qualified affordable buyers on waiting list o Manage sale transaction Report info to Banbury, City • • Report info to homebuilders, Banbury, City Ongoing Stewardship • Compliance management: o Ensure owners living in the property or require them to cure o Annual compliance letters o Allow temporary rental opportunities • Maintain a working relationship with TCAD • Work closely with POA: o Educate owners about stewardship, future maintenance costs o Hailstorm impacts o Confirm commercial property sales within Mueller 17 | RMMA PIAC 11/12/25 Mueller Foundation: Milestones Housing Summit I • Demonstrate to builders what can be done Interspersed homes Ferguson consultant • • Shift to Group II: • Affordability challenged if based on home values • Projections, studies Legal docs to 2% • 2005 Mueller Foundation Created • Austin Community Fnd • PeopleTrust consulting • Established board 2013 2007 New, More Staff: • Housing based Exec Dir • Ops Manager • Added partners Stewardship: • New ED • MOU w/POA • 1st annual report • Compliance monitoring Expert Consulting: • National consultants Transition planning • • Affirmative marketing • 10-year projections Transition Prep: • Hired HomeBase Stronger POA • relationship 2021 2025 2019 2020 • Home maintenance stewardship 2023 2008 2021 2024 Housing Summit II • Affordability by design Increased density • Live-work opportunities • 2006 2007 Design • Shared- Appreciation Model • Pioneer Program • Documentation 2016 2018 TCAD Solutions: • MOU assigns value of home to original affordable price Share with TCAD annual affordable inventory • Updated Policies/Programs: • More Affirmative marketing • Home rental policies • Restrictive covenant Listening sessions • Expanded Compliance: • Updated policies • Developing MOU with POA 2022 More Policies: • Home sustainability • Capital replacement support • Enforcement 18 | RMMA PIAC 11/12/25 Mueller Foundation: Financial Stability Main Revenue Sources: • One quarter of one percent (0.0025) of every property sale in Mueller, including all residential and commercial buildings • • Stewardship fee among affordable homes to help cover admin costs Resales returned to the market when necessary Main Expenses: • • Resale home purchases Salaries and professional services 2024 Mueller Foundation Audit: • Will be ready by end of November 2025 • Anticipate another clean audit with neutral, consistent financial statements • 2022-2023 Full audit report available at: muellerfoundation.org/wp-content/uploads/ 2025/08/2022-2023_audit_results.pdf 19 | RMMA PIAC 09/12/25 Transition: Retention Retention of Affordability • • • • Legal docs: Original 2nd Lien/Deed of Trust now Restrictive Covenant - recorded Legal docs: Purchase Option & Right of First Refusal - recorded Agreement with TCAD 30-year: Some owners will live in their homes 30 years and pay off the lien/covenant o Homeowner has option to renew the affordability covenant after 30 years o Must be owner’s primary residence o No leasing without Mueller Foundation’s approval (minimal – e.g., 1 year for health/work/education) Property condition Row Home special assessments Funding for Group 1 repurchases Financial Risk for Resales • • • • Do incomes and appreciation “match” • Interest rates 20 | RMMA PIAC 11/12/25 Transition: Accountability Goal: to retain as many affordable homes as possible, but there will be attrition: • After 30 years, some homeowners may not want to stay in the program, despite tax increases Some Group 1 homes may be too expensive for Foundation to purchase at time of resale • Some floor plans may be less desirable for households wanting to purchase an affordable home • • Outside factors like interest rates or the economy Mueller Foundation operates like any 501c3 nonprofit organization: Experienced board of directors that reviews facts, figures, and financials • • Considering bringing on new board members Standard accounting principles and annual audit • Experienced executive director • • HomeBase as institutional partner Implemented the first report to the community: • • Posted online for all to have access Shared with: o City of Austin o POA o Affordable homeowners o Mueller’s apartment managers o Other relevant stakeholders 21 | RMMA PIAC 11/12/25 Thank you Latest section of Mueller’s affordable and market-rate homes, July 2025 22 | RMMA PIAC 11/12/25