City of Austin Breaks Ground on Urban Empowerment Zone

Austin Housing and the Austin Housing Finance Corporation (AHFC) are thrilled to announce the groundbreaking celebration for Urban Empowerment Zone 1 (UEZ I). The new community will provide 80 Permanent Supportive Housing (PSH) units to serve individuals and families at risk of or exiting homelessness. Located at 6400 FM 969 Road in District 1, the development will consist of a four-story, elevator-served building that includes a community room, warming kitchen, community pantry, laundry facilities, computer center, supportive service areas, and a central courtyard designed to promote safety and community connection. 

“By combining affordable housing with supportive services at UEZ I, we’re creating more than a place to call home,” explains Deletta Dean, Director of Austin Housing. “We’re creating opportunities for residents to rebuild their futures as part of our Austin community.” 

All units will be Continuum of Care (CoC) units, providing coordinated health care and supportive services for residents. Capital A Housing is developing the site as a turn-key building.  Austin Area Urban League (Austin, TX) will be both the 100% owner/operator and the supportive services provider. Support services on the site are designed to help residents obtain gainful employment and move on to private housing. 

“This development is a key part of the community’s coordinated push to address homelessness,” says Conor Kenny, Principal, Capital A Housing. “The development will provide homes for 80 families – many moving out of shelters to start rebuilding their lives and break the downward spiral of homelessness.” 

The development will utilize 80 Project-Based Vouchers (PBVs) administered through the Housing Authority of the City of Austin (HACA), representing a total value of approximately $29.7 million over a 20-year period.  

“The City’s funding for this project has been crucial to fill the last gap between what we could raise from other sources and the cost of construction,” Kenny says. “It enabled the Urban League to avoid taking out expensive debt that would be a permanent drain on the non-profit project’s finances and require constant infusions of operating funds.” 

The total estimated development cost is approximately $19.9 million, and the property will maintain affordability for 42 years. 

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