Public-Private Team Bridges the Affordable Housing Gap
- Oct 15, 2015
New York—Community Development Trust (CDT) of New York City has partnered with a subsidiary of the Housing Authority of the City of Austin (HACA) to buy two market-rate properties in North Central Austin. Half of the 642 units will be turned into long-term affordable housing and reserved for households earning less than 80 percent of the area median income.
Also included in the financing package are two 10-year Freddie Mac mortgages originated by Bellwether Enterprise. HACA will own the land and lease it to the CDT/AAHC partnership on a long-term basis.
“We are excited to work with the Austin Affordable Housing Corporation to create newly affordable high-quality housing in a high-growth city like Austin,” said Joseph Reilly, president & CEO of CDT. “We believe that this model can be implemented in other states and cities and we look forward to continuing to partner with state and local housing agencies to create and preserve affordable housing nationwide.”
Built in 2007-2008 as market-rate properties, the communities feature amenities such as large resort-style pools, fitness centers, and Wi-Fi throughout the common areas.
“We are proud to have partnered with the outstanding team at CDT to bring greater affordable housing opportunity to North Austin,” said Michael Gerber, HACA’s president & CEO.
“These exceptional properties will immediately help address the 55,000-unit shortfall we have in affordable housing in our city,” he added. “And, we look forward to showcasing these properties as a model of what can be achieved when working with an experienced real estate investment firm committed to the creation and preservation of affordable housing.”
Images courtesy of Bridge at Center Ridge and Bridge at Tech Ridge