The City of Austin Housing Department has both a Housing Finance Corporation entity and a Public Facilities Corporation entity that are used as tools for partnering with developers to create and maintain affordable housing by providing a 100% property tax exemption for residential properties owned by the entities. Each entity has different partnership criteria, funding strategies, and affordability targets.
- Austin Housing Finance Corporation (AHFC) Partnership
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The Austin Housing Finance Corporation (AHFC) partners with developers to build affordable housing or preserve existing affordable housing. In a typical partnership, AHFC owns the land and ground leases it to a development partnership, of which an AHFC affiliate serves as the general partner; AHFC also retains the right of first refusal and a purchase option. In exchange, the development maintains AHFC’s 100% exemption from property taxes.
Please use the following form to submit a proposal for partnership with the Austin Housing Finance Corporation (AHFC). For examples of standard AHFC partnership terms, see the templates available on the Request for Proposals webpage. The development must be located completely within the corporate limits of the City of Austin (confirm location within full city limits here).
A completed Rental Housing Development Assistance (RHDA) Application and Scoring Criteria Excel (available within the “RHDA Resources” section of the Affordable Housing Development Funding webpage) is required. Note: this does not constitute an application for RHDA funding. If a partnership is approved and gap financing is anticipated, the development will still need to apply for RHDA funding at a later date.
Staff will review and follow up with the development team contact for any additional information.
- Austin Housing Public Facilities Corporation (AHPFC) Partnership
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The Austin Housing Public Facilities Corporation (AHPFC) also partners with developers to build affordable housing or preserve existing affordable housing. AHPFC deals must be located in a high opportunity and stable census tract as set by the Project Connect displacement risk maps (see a map of eligible census tracts here). The affordability mix must meet the minimums established by the Texas local government code. The development will not be eligible for City of Austin gap financing. In addition, the development partner must have successfully received a Certificate of Occupancy for at least one multi-family rental property in Austin in the last five years if proposing a new construction. These partnerships will have an AHPFC affiliate serve as Property Lessor, with a minimum ground lease term of 40 years and a right of first refusal. In exchange, the development maintains AHPFC’s 100% exemption from property taxes.
Please use the following form to submit a proposal for partnership with the AHPFC. The development must be located completely within the corporate limits of the City of Austin (confirm location within full city limits here).
Staff will review and follow up with the development team contact for any additional information.
