PNC Bank Commits $10M To Affordable Housing In Austin As It Plans Branch Expansion

PNC Bank is investing $10 million in the Austin Housing Conservancy fund.

A collaboration among investors, nonprofit and community partners, the fund invests and preserves multifamily properties currently affordable to moderate and middle-income individuals. It is the latest such investment by Pittsburgh-based PNC Financial Services Group, Inc. (NYSE:PNC) and part of its $88 billion Community Benefits Plan.

Austin is also one of PNC's newest markets and among six cities - four of which are in Texas - that PNC singled out as key locations for its recently announced branch expansion. PNC said on Feb 14 that it will build and open 100 new branches across the country through 2028.

PNC is focused on making a real impact in Austin communities and, as a longtime resident, I know that among the most critical issues facing our region is housing affordability," said Steven Gonzalez, PNC regional president for Austin. "This investment will help create meaningful change by offering a path forward to help middle-income families, especially those who work in essential services, remain in Austin despite steep increases in cost of living."

PNC's direct equity investment in the fund, which is sponsored and managed by Affordable Central Texas, is earmarked for the purchase and preservation of multifamily properties and, in doing so, maintain affordable rental rates for middle-income Austin residents. It takes the fund's total to date past $41 million; ACT's initial goal was $50 million by the end of 2024.

Currently, the fund portfolio has preserved 2,150 units in 14 properties with a capacity to serve 4,000 residents and a total fund value in excess of $413 million.

PNC's $88 billion Community Benefits Plan provides loans, investments and other financial support to bolster economic opportunity for low-and moderate income individuals, communities and people of color over a four-year period that began Jan. 1, 2022. As part of the plan, PNC expects to provide at least $14.5 billion in community development loans and investments across all markets,  including $400 million for Community Development Financial Institutions that help meet the banking and financial service needs of traditionally undeserved communities.

Earlier this month, PNC announced the closing of Low income Housing Tax Credit Fund 92, which is investing $127 million in the development and rehabilitation of affordable rental housing for families, young adults and seniors across the U.S. It will provide financing for more than 1,834 affordable housing rental units in 15 multifamily properties in 10 states. These are Indiana, Minnesota, Oregon, Wisconsin, Idaho, Michigan, New Jersey, Texas, New York and Illinois.