Project Connect Anti-Displacement Funding Under Scrutiny by Community Development Commission

The Community Development Commission has requested additional information from city staff to gain a clearer understanding of the decision-making process for spending Project Connect funds. These funds are intended to preserve existing affordable housing and create new affordable housing near mass transit systems.

Last week, a presentation detailed how the city has so far spent approximately $120 million of the $300 million in Project Connect funds that were allocated for anti-displacement efforts. The city plans to spend $20 million annually for the next nine budget cycles on anti-displacement initiatives. The targeted areas are within 1 mile of a rail or bus route. Additionally, properties could be prioritized based on their potential for linkage or their potential for phased development.

Allocations of Project Connect Funds

Up until now, four major multi-family properties have been acquired using Project Connect funds resulting in the preservation of 160 affordable housing units and the planned development of an additional 100 units. The largest acquisition was a 66-acre undeveloped property, bought for $27 million as a part of the city’s purchase of the former Tokyo Electron headquarters earlier this year.

Smaller purchases made using the Project Connect funding have preserved 109 affordable units and created 171 units of permanent supportive housing for formerly homeless people. These projects also include plans for 1,304 rental units and 113 ownership units. Furthermore, the Tokyo Electron property neighbors another 18 acres of city-owned undeveloped property, offering the potential for a large, multiphasic project exceeding 80 acres.

Anti-Displacement Community Acquisition Program

Regarding the Anti-Displacement Community Acquisition Program, Commissioner Jose Elias advocated for a lower income cap than the current 80 percent of median family income set for projects under that program.

“I would think that we would try to target something lower for homeownership as well. If the target or the cap is at 80 percent MFI, my opinion is that that’s pretty high,” he commented. “The city of Austin minimum wage is about $21, so two employees at a city of Austin as a couple would be at less than 80 percent, so they wouldn’t fall under that.”

Alex Radtke, development manager for the Housing Department, revealed that the guidelines for the ADCAP program are scheduled for review, which may include consideration of lower income caps.

Concerns over Environmental Impact and Funding Distribution

There remained, however, concerns about the potential environmental impact of developing city-acquired properties. The Commission addressed these issues as well as the city’s distribution of funding to different development projects. Questions were raised on how the city plans to deal with the potential heat island effect at the Tokyo Electron property with the anticipated removal of substantial vegetation.

Furthermore, Commissioner Bertha Delgado raised concerns over the city’s criteria for awarding money to nonprofit developers through the ADCAP program. The Austin Revitalization Authority’s five projects received approximately $2.8 million, which far surpasses the single $240,000 award for the Guadalupe Neighborhood Development Corporation.

“I just want to see if you’re giving the opportunities to all nonprofits that have the same qualifications that they do, and that is there a fair system,” she stated.

As the city moves forward with Project Connect and its anti-displacement efforts, it is evident that a close eye will continue to be kept on funding allocations, development priorities, and potential environmental impacts.