AUSTIN, Texas, Nov. 7, 2023 – Hunt Capital Partners (HCP), SGI Ventures, Inc., the Housing Authority of the City of Austin and its subsidiary, Austin Affordable Housing Corporation (AAHC), announced the closing of $16.5 million in Federal Low-Income Housing Tax Credits (LIHTC) to finance construction of Cady Lofts. The new development will be a permanent supportive housing (PSH) property comprising of 100 studio homes intended to expand the supply of affordable housing for low-income households in Austin.
The homes will be available for people earning between 30 to 60 percent of the area median income (AMI) and set aside for persons who are experiencing homelessness; have physical, intellectual and/or developmental disabilities; or recovering from substance addictions. Residents will receive Project-Based Vouchers from the Housing Authority of the City of Austin (HACA) and the City of Austin under two separate Housing Assistance Payments (HAP) contracts. Under the first, 75 residents will receive a voucher through a 20-year Project-Based Section 8 HAP contract with HACA. Under the second contract, the remaining 25 residents will receive a rental subsidy from the City of Austin through a 15-year, Project-Based Local HAP contract.
“The unsheltered homeless population is growing in the city’s edges, living in less visible areas such as parks and nature preserves particularly within South Austin’s District 5, Northwest Austin’s District 6 and Northeast Austin’s District 1,” said HCP Executive Managing Director Dana Mayo. “Living farther away from the city’s center makes it harder for homeless individuals to reach supportive services, which is why Cady Lofts, a project that provides housing stability and delivers vital services in the tenant’s backyard, is all the more important. We’re grateful to have SGI Ventures and HACA partner with us to create lasting, quality housing solutions for the city’s most vulnerable.”
Residents will be referred to Cady Lofts under the U.S. Department of Housing and Urban Development (HUD) Continuum of Care (COC) Program, which promotes community-wide commitments to solving homelessness by rehousing homeless individuals, promoting access to key supportive service programs, and optimizing self-sufficiency among the unhoused. Residents will have access to services that contribute to overall independence and housing stability such as financial literacy training, benefit enrollment, education services, job skills training and employment assistance. Case management services will be provided on-site by Endeavors with funding provided through HUD.
“HACA, and its subsidiary AAHC, are fully committed to efforts to end homelessness in Austin,” said HACA President and CEO Michael Gerber. “Collaborative construction projects like Cady Lofts, coupled with our commitments of housing vouchers and our partnerships with city leaders and services agencies, are essential to securing stable housing and offering social and medical services to our most vulnerable populations.”
The homes will feature modern appliances and have access to a communal computer lab, health and wellness center, case management offices, central laundry, and wireless internet. The building will incorporate energy-efficient features throughout, such as Energy Star-rated kitchen appliances, LED lighting, Low-E coated window glazing, low-VOC paints, EPA Water Sense-labeled 1.28-gallons per flush toilets, as well as provisions for future rooftop solar PV. Cady Lofts will also offer bicycle parking and recycling on-site.
“The challenges of providing stable housing and wrap-around services for this vulnerable population are many, and Cady Lofts would not be possible without the commitment and support from our development partner, AAHC, together with the mission driven support of our financial partners that provided equity, low interest soft loans, grants and project-based vouchers,” said SGI Ventures, Inc. President Sally Gaskin.
To make this development possible, SGI Ventures, Inc., a Texas Historically Underutilized Business (HUB) will act as the developer and administrative member. Cady Loft’s non-profit sponsor, AAHC will serve as managing member. O-SDA Industries and Saigebrook Development will be co-development consultants. Skybeck Construction, LLC will serve as the prime sub-contractor; Three Bar Architecture, Inc., as architect; Volunteers of America Texas Property Management Corporation as management agent; New Hope Housing as services and operations consultant; Family Endeavors as supportive services provider with site-based case management, and Tidwell Group, LLC, as accountant.
“We are excited to do our part to help create this much needed housing project in Austin,” said O-SDA Industries President Megan Lasch.
HCP facilitated the syndication of the project’s LIHTCs through its fund, Hunt Capital Partners Tax Credit Fund 49. Lenders include Cadence Bank, which provided an $8.5 million construction loan; Central Texas Housing Accelerator Fund LLC, which provided a $2.0 million construction loan; Texas State Affordable Housing Corporation, which provided a $225,000 permanent loan; the City of Austin, which provided a soft loan of $7.2 million through the Rental Housing Development Assistance program; and AAHC, which provided a $850,000 sponsor loan. Additional funding came from the Texas State Affordable Housing Corporation, which provided a $75,000 grant, and the Texas Department of Housing and Community Affairs, which provided a $1,082,400 HOME American Rescue Plan grant.
Environmental Social and Corporate Governance (“ESG”) Investing
Hunt Capital Partners recognizes that its institutional investors are seeking to increase the social value of their investments to help further their ESG initiatives. An investment in affordable housing not only improves the living conditions of its residents, but it also helps to remove obstacles that stand in the way of creating a healthy, safe and stable home environment for low-income families and seniors. When families spend less on housing related expenses, they have more resources available for other essentials such as food and clothing, or even extracurricular activities and educational programs. One of the most significant benefits to providing quality affordable housing is an increase in an individual’s physical and mental health. Hunt Capital Partners’ affordable housing investments create a lasting effect on the people and communities they serve for generations to come.
About Hunt Capital Partners
Hunt Capital Partners (HCP) is the tax credit syndication division of Hunt Companies, Inc. (Hunt). HCP specializes in the sponsorship of Federal and State Low-Income Housing, Historic, and Solar Tax Credit Investments funds. Since its inception in 2010, HCP has raised over $3.3 billion in tax credit equity in over 48 proprietary and multi-investor funds. HCP manages almost 760 project partnerships representing over 75,000 homes in 48 states and territories. Founded in 1947, Hunt is a privately held company that invests in businesses focused in the real estate and infrastructure markets. The activities of Hunt’s affiliates and investors include investment management, asset management, property management, development, construction, consulting and advisory. For more information on HCP, please visit www.huntcapitalpartners.com, or for Hunt, please visit www.huntcompanies.com.