FY 2026 Notice of Funds Availability (NOFA) 

The Austin Housing Finance Corporation has announced FY 2026 funding availability for affordable housing development, targeting rentals for households below 50% Median Family Income and ownership below 80% MFI.  

• October 24, 2025: Submission deadline for 4% Low-Income Housing Tax Credit proposals.  

• May 1, 2026: Submission deadline for 9% Low-Income Housing Tax Credit proposals.  

Ownership developments and rental developments without tax credits are also eligible to submit in both rounds. For detailed updates on guidelines and application link, visit the HDA webpage (Housing Development Assistance Funding | AustinTexas.gov). Contact the HDA Team at HousingDevelopmentAssistance@austintexas.gov for specific questions.

New HDA Guidelines

New Rental Housing Development Assistance (RHDA) and Ownership Housing Development Assistance (OHDA) Program Guidelines 

A comprehensive assessment of development funding was led by Austin-based consulting firm, Guidehouse, which included feedback from the local market and community organizations. Conducted at the direction of Austin City Council Resolution 20220901-087, the City is implementing targeted changes to RHDA and OHDA. These programs provide critical gap financing that complements Low-Income Housing Tax Credits (LIHTCs), helping to make affordable housing projects financially viable.  

Updated Program Guidelines for both RHDA and OHDA programs include significant changes to the application process and program structure. The enhancements will streamline the housing development assistance financing process, improve transparency for developers, and align application timelines with current LIHTC cycles to increase the impact of housing bond dollars investments throughout Austin.   

Private Activity Bond (PAB) Deadlines for AHFC/AHPFC 2026 Lottery Inducement

Applicants for 4% Low-Income Housing Tax Credits within the City of Austin may request a Private Activity Bond (PAB) inducement for the 2026 bond lottery from Austin Housing Finance Corporation (AHFC) or Austin Housing Public Facility Corporation (AHPFC) by submitting this application by Wednesday, August 13, 2025. For more information and resources, please see our PAB webpage. 

All PAB inducement applicants should be aware of the following: All applicants should thoroughly review the AHFC/AHPFC PAB Program Guidelines for local issuer requirements and fees. Staff will issue an invoice for a required $5,000 application fee upon receipt of the application. 

New Affordable Rental Housing Community Opens in North Austin-The Rhett

We celebrated the opening of The Rhett, a 215-unit affordable multi-family rental housing community for households earning between 30% and 80% median family income (MFI). Located in District 1 at 1000 East Yager Lane, the apartments consist of one-, two-, and three-bedroom units, providing an affordable and diverse selection of household sizes in North Austin. 

The property received $6,400,000 from the AHFC through the Rental Housing Development Assistance (RHDA) Program, comprising $5,561,676 in 2022 General Obligation (GO) Bonds and $838,324 from the Housing Trust Fund. The development also secured an award of 4% Low-Income Housing Tax Credits (LIHTC) from the Texas Department of Housing and Community Affairs (TDHCA), as well as American Rescue Plan (ARP) funds, Project-Based Vouchers (PBVs) from the Housing Authority of the City of Austin (HACA), and Tax-Exempt Bonds. Additionally, the property received funding from Steller Bank and Hudson Housing Capital. 

City of Austin and Austin Habitat for Humanity Create Affordable Housing Communities Together

The City of Austin Housing Department proudly highlights its ongoing partnership with Austin Habitat for Humanity (AHFH), a collaboration that continues to make significant strides in providing affordable housing opportunities for low- to moderate-income residents. 

Through this partnership, two new housing communities have been successfully developed, with construction on a third soon to start. These homes align with the Housing Department's mission to create and provide affordable housing options for those who need it. 

Scenic Point | 6304 Farrell Glen, near the intersection of Johnny Morris and Loyola, District 1, Northeast 

The development is comprised of 67 single family ownership units for households at or below 80% MFI: 8 two-bedroom apartments, 28 three-bedroom apartments; and 15 four-bedroom apartments. It is located less than a mile from transit. The final homes constructed range in size from 900 to 1,024 square feet, consist of 2 bedroom 1 baths and 2 bedroom 1.5 baths, and are priced from $180,000 to $183,000.  

These affordable homes have been built and sold in phases, with the first one sold in June of 2018. The final two homes are being built and are expected to be completed by October of this year, with the homes being closed by the end of the year (spaces are currently filled, no reservations are available). 

Total construction costs were offset by $3.1 million in funding from the Austin Housing Finance Corp. (AHFC), through the Ownership Housing Development Assistance (OHDA) program using 2022 General Obligation (GO) Bonds ($1.48 million), from the Housing Trust Fund ($252,328.30); money from the Corporate Fund ($36,612.70) and Community Development Block Grant (CDBG) program funds ($1.36 million).  

Montopolis Townhomes |  6301 Circulo de Amistad 

The development, which sits on .61 acres, received funding from multiple sources including funding from the Austin Housing Finance Corp. (AHFC), through the Ownership Housing Development Assistance (OHDA) program: predevelopment funds totaling $277,610 from the Housing Trust Fund in 2021; and two construction loans totaling $654,000, with $294,000 from the 2018 General Obligation (GO) Bonds in 2022 and $360,000 from 2022 GO Bonds in 2024. 

Whisper Valley | Near F.M. 973 and Braker Lane 

Austin Habitat for Humanity also has plans to add affordable housing to the Whisper Valley development, located just east of the State Highway 130 toll road. Site preparation has already begun, but home construction will start later in 2025.  

The initial phase will include 48 homes, with more to come in subsequent phases. The new homes will have 3 or 4 bedrooms, range in size from 1,280 to 1,490 square feet and range in price from $230,000 to $245,000. Austin Habitat for Humanity is actively recruiting homeowners for this new community and those interested must earn at or below 80 percent MFI (median family income) to quality. 

The Whisper Valley development was launched by developer Taurus, which acquired the land in 2006 and started delivering homes in 2017. 

City of Austin Development Services Department | Second Series of Land Development Academy Classes

The second speaker series of the Land Development Academy series began July 22. This is a great opportunity to start building your knowledge or continue your deep dive into the regulations and processes that guide site plan review in Austin. As with the first series, City of Austin experts who do this work will present the series of virtual and in-person classes.  

The second series includes:   

• Legal Documents Required for Austin Development (Aug. 13-14, in person)   

• Subdivision 101 (Sept. 24, virtual)   

Visit the Land Development Academy website to learn more and register for these new classes. If you have questions or need help, please email dsdcommunications@austintexas.gov.  

Fast construction and demolition facts

Austin is the largest city in Texas requiring construction projects to help keep materials out of landfills. The city's Construction and Demolition Recycling ordinance spells out the rules: General contractors must reduce, recycle or repurpose their materials. All projects over 5,000 square feet of new, added or remodeled floor area must follow the ordinance—plus all demolition of commercial and multifamily properties. Altogether, the ordinance saves more than 80,000 tons of material from landfills each year. 

Place-Based Enhancement Program Application Now Available

The City of Austin Economic Development Department recently launched the Place-Based Enhancement Program (PBEP) to help create affordable commercial spaces for small businesses, nonprofits, and creative sectors in underserved neighborhoods. Approved real estate development projects may qualify for annual tax reimbursements in exchange for offering long-term, affordable commercial leases to eligible tenants. Interested developers can submit an Incentive Inquiry Form and learn more about PBEP. 

2025-2026 City of Austin Budget Updates

The City is committed to an inclusive and transparent budget development process that utilizes resident and stakeholder feedback to ensure budget priorities are being met. Read the proposed budget documents and view the budget adoption timeline. Explore the site to learn more.

Imagine Austin Speaker Series: Austin Working for YOU

Join the City of Austin at ACC’s Highland Campus to learn how the City is putting Imagine Austin into action. The family-friendly event will feature activities, popsicles, and light refreshments. Imagine Austin provides a roadmap that guides City decision-making when setting goals and policies. Learn more!

📆 August 23, 2025 | 10:00 a.m. - 1:00 p.m.

📍 Austin Community College Highland Campus

🆓 The event is open to the public.

Opening the Door to New Co-op Housing Opportunities

Changes to Austin's residential property rules allow for new, smaller-scale cooperative housing options. The City of Austin Economic Development Department has partnered with Austin Cooperative Business Association for training. Property and homeowners as well as architects and developers can learn how to create and finance one! Get practical tactics and real examples on:

• Developing small-scale co-ops by adding units to your lot under new HOME provisions;
• Using extra units from HOME to develop community-oriented cottage courts and pocket neighborhoods; and
• Crowdfunding housing development through selling shares of a Cooperative Housing Development Corporation.

📆September 17, 2025 | 6:00 p.m. – 8:00 p.m.  

📍Free and online

🆓 Register here!

Share this Newsletter

You're receiving this communication because you have applied for funding before or worked the City of Austin Housing Department in the past.