Affordable Housing Project Set To Receive $50 Million In Tax-Exempt Bond Financing

LDG Development LLC has secured tax-exempt bond funding to raise a new apartment complex dedicated entirely to affordable housing just south of Circuit of the Americas.

During its Oct. 24 meeting, the Travis County Commissioners Court unanimously approved tax-exempt bonds not to exceed a total of $50 million to help bring the new housing opportunity known as the Kingswood Apartments to fruition in far Southeast Austin. Austin Affordable PFC Inc.-an affiliate of the Housing Authority of the City of Austin - would issue the financing, which is expected to close in December following approval from the Austin Affordable Housing Corp., - according to country documents.

LDG's project would add hundreds of much needed affordable units to Austin amid ongoing efforts to boosts affordable housing options. The city has faced a step rise in home prices in recent years - coupled with lower inventory - and an ever rising cost of living.

This new project, a partnership between developer LDG, Austin's Housing Authority and Austin Affordable PFC, is planned to rise on the southeast corner of FM Road 812 and Burklund Farms Road. It's roughly 10 miles away fromboth the Austin-Bergstrom International Airport and tesla Inc.'s electric car manufacturing plant.

Kingswood Apartments will include 328 units reserved for tenants with incomes at or below 60% of the median family income for Travis County.

The MFI for a family of four in Travis County is $122,300, and housing experts have said buyers with this income can typically afford a home priced between $300,000 and $400,000. Meanwhile, 60% MFI for a family of four is $70,080, according to data gathered by Austin's Housing Department.

As outlined in the proposal submitted to the Commissioner's Court, the development will offer a variety of floor plans, including 48 on-bedroom units, 132 two-bedroom units, 124 three-bedroom units and 24 four-bedroom units. Each unit will include granite countertops, wood-look flooring, ceiling fans in bedrooms, energy-efficient appliances, covered patios or balconies and walk-in closets.

Rental rates will range from $1,314 to $2,032, depending on the unit type, according to county documents.

Following the Court's approval, the project will be financed by the state's 4% tax-exempt bond financing program offered by the Texas Department of Housing and Community Affairs, a primary measure used by communities throughout the state to direct private capital toward the development of affordable housing.

The non-competitive 4% housing tax credit program is coupled with the multifamily bond program when the bonds finance at least 50% of the cost of the land and buildings in the development, according to the state.

While approving of the project, Commissioner Jeff Travillion shared concern for a lack of public transit near the site and called for the developers to work with the Capital Area Rural Transportation System, or CARTS, a bus system that serves Bastrop, Burnet, Blanco, Caldwell, Fayette, Hays and lee counties and the non-urbanized areas of Travis and Williamson counties. Travillion said a similar undertaking in Manor has been carried out with success.

In response, city staff shared they will continue looking into potential options to  bring public transit services to the area working with both CARTS and the Capital Metropolitan Transportation Authority, or CapMetro, which serves Austin.

Based in Louisville, Kentucky, LDG Development maintains offices in Austin. The firm focused on developing affordable apartments and senior communities. Its previous Austin projects include Bridge at Cameron at 9201 Cameron Road, Commons at Goodnight Ranch at 2022 E Slaughter Lane and Harris Branch Apartments at 12435 Dessau Road.

In 2020, it filed plans to build a six-story, 285-unit apartment complex dubbed. The Matador on 3.39 acres of undeveloped land at 5900 S. Congress Ave. The project has since been taken over by the Journeyman Group, recognized as Central Texas' busiest multifamily developer.