The Austin area is lacking 48,000 affordable housing units.* In order to help, the City of Austin is exploring several approaches and tools, including creation of Homestead Preservation Districts.
Created to serve the most impoverished areas of the city, Homestead Preservation Districts, in combination with Homestead Preservation Reinvestment Zones, can provide a dedicated funding stream to reinvest in the area’s housing affordability.
Tax Increment Reinvestment Zones or Tax Increment Financing models, often called TIFs, can be set up under the Homestead Preservation District law to ensure property tax dollars from economic development are reinvested in affordability for that area. The Homestead Preservation Districts and Reinvestment Zones do not establish new taxes or increase existing taxes on residents.
What does this mean for you?
Not much at this point. Establishing a Homestead Preservation District will have no immediate impact on residents, however it is a preliminary step toward other actions to enhance affordability tools in your area.
To view the Homestead Preservation District profiles, click here.
For a list of Frequently Asked Questions regarding Homestead Preservation Districts, click here.
* Housing is considered “affordable” if occupants are paying no more than 30 percent of income for gross housing costs including utilities.