What is HousingWorks?

HousingWorks is a new broad coalition of individuals, faith communities, employers, neighborhoods, realtors, builders, and non-profit housing organizations that have come together to ensure an affordable future for Austin. In two community forums held over the past two years, hundreds of Austinites came together to discuss Austin’s housing problems.

HousingWorks Austin is a new charitable organization, supported by tax-deductible donations, engaging in research, education and policy advocacy for affordable homes and neighborhoods for all Austinites.

HousingWorks ACTION is a new political action committee, supported by non-tax deductible contributions, organized to win the historic bond election in November for Proposition 5, the $55 million Yes for Homes! Bonds.

How will passage voting for Housing Bonds affect property taxes?

The November bond package of $567 million is expected to raise the tax rate .02 per $100 dollar valuation on property over the next several years. The proportional cost for the $55 million in Housing Bonds is $4.65 for the average homeowner per year.

How many people will this help?

Building housing is an investment in the community. It will generate benefits for families to occupy the new homes, as well as those who may live there in future years. Because of the way that housing is financed, a relatively small contribution can help leverage much more. How many families’ benefit will depend in part on this use of leverage, as well as how long the homes last.

Building housing also helps to create jobs in the community, both in construction and related industries and more broadly.

What will this money be used for?

Funds will be used to help the many low-income households in our community that pay beyond their means for housing. This includes many seniors that are living on fixed incomes, people with disabilities, and lower-income working families with children.

We know how to solve our housing problems. We have many award winning examples in our community of how to address these needs: Lyons Gardens is an senior housing complex; Garden Terrace provides single-room occupancy housing for formerly homeless people; Guadalupe Neighborhood Development Corporation develops homeownership, rental housing and restores old homes in the neighborhood. More funding will allow us to build many more such examples.

Will this money be used for Hurricane Evacuees?

Housing bond funds are intended to help the 54,000 lower-income households in our community that are paying beyond their means for housing. This would include anyone in our community that needs such assistance

We still have over 1000 Katrina evacuees to our community. It is hard to say how many will remain in Austin after federal assistance ends and, of these, how many will continue to need assistance. The hurricanes have helped us to understand the importance of having a good home.

So where are these projects going to be built? Will the neighborhoods object?

No locations have been predetermined for the bond proceeds. HousingWorks recommends that bond funds be used to support successful local programs with a proven track record in our community. All projects would be expected to be respect existing neighborhood plans.

Why $55 million? The City staff initial recommendation said $25 million is enough.

The $25 million figure was an initial placeholder rather than a firm estimate based on a solid needs assessment. The gap between our current housing needs and existing resources is estimated to be $1.3 billion. A conservative estimate is that we could leverage an additional $100 million with the passage of $55 million in affordable housing bonds.

Why is Affordable Housing more important than dealing with other critical needs like Health and Safety, or Flood Drainage, or a new Library?

We all learned from the Hurricanes that housing is an essential part of our lives and of our community. It is as important as other types of infrastructure that we need. It’s also connected to many of the other items on the bond package. Improvements to water and sewer, and housing at the same time will increase the value of all these investments.

How will we make sure this money isn’t wasted?

Accountability is a priority for HousingWorks. HousingWorks has developed recommendations for the City Council to pass to ensure that these funds are put to good use.

Will the bond dollars be used for operations (i.e. hiring people to staff these programs) as opposed to capital expenditures? 

The Bond dollars will be used for capital expenditures through an open, competitive Request for Proposal process in which qualified nonprofit housing organizations submit proposals to perform affordable housing development activities. 

Are there any plans to institute a Land Trust? How will that work?

Bond dollars for the Community Land Trust will be used to acquire land, which will be held in perpetuity for affordable housing. Lower income families could acquire homes developed on the land, but the land will would always be held by a nonprofit Community Land Trust in order to maintain affordability. Community Land Trusts currently operate in 35 states.

What will HousingWorks’ role be in spending the bond dollars?

HousingWorks would not have a direct role in spending bond dollars. HousingWorks is a broad non-profit coalition of organizations and persons in Austin concerned about the extreme lack of affordable housing. HousingWorks wants to play an active role in implementation of the Bond program through a Bond Implementation Oversight Committee, which would monitor and evaluate progress of the bond implementation.

Actual expenditures would occur through Request for Proposal processes administered by City departments.

How would the $55 million compare to the City’s current annual funding for affordable housing?

$55 million would roughly triple the amount of funds currently expended by the City from all sources for affordable housing.

Does the City of Austin have the staff to cope with the influx of money?

Assuming that the $55 million would become available over a period of seven years instead all at once, we believe that the City has the capability to administer the funds.