New Mixed-Income Development Planned for Austin
Mayor Lori E. Lightfoot introduced a measure to City Council today that would authorize the issuance of up to 12.9 million in TIF funds and up to $10M in Department of Housing (DOH) Multifamily loan or grants funds for the construction of Austin United Alliance in the INVEST South/West Austin Community. The new six-story, 78-unit mixed-income residential development will be built alongside the Laramie State Bank, which is currently being redeveloped.
Once approved, today’s measure would also issue up to $1,500,000 in 9% Low Income Housing Tax Credits, which are expected to generate $14,250,000 in equity. The measure will also convey one City-owned lot with a value of $28,000 to the developer for $1 and designate Austin United Alliance GP, LLC or their successor affiliate(s), Heartland Housing, Inc., a not-for-profit corporation, or an entity acceptable to DOH Commissioner as developer.
Austin United Alliance will include 37 one-bedroom, 36 two-bedrooms, and five three-bedrooms. Sixty units will be affordable to households at or below 50% and 60% of the area median income (AMI), and 18 units will be market price. The total project cost is estimated at $40M and will be financed with various sources, including TIF, 9% LIHTC and DOH multifamily funds, ComEd Energy Grant, and GP Equity. Austin United Alliance, LP will be the owner/borrower for this development. The General Partner, Austin United Alliance GP, LLC, will hold 0.01% ownership in the entity, Heartland Housing, Inc will own 70%, and 30% will be owned by Oak Park Regional Housing Center, both nonprofit.
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