The Austin Housing Finance Corporation owns this land and is seeking a development partner to build income-restricted rental housing that serves the community.  

• AHFC purchased the land in 2021 with General Obligation (GO) Bonds. In 2018, city voters approved $250 million in GO Bonds to support the creation and preservation of affordable housing, of which $100 million was allocated for land acquisition.
   
• AHFC will remain the landowner and serve as a partner in the development. The land is not being sold to a private developer. 
   
• Visit the Development Updates tab for more information about when and how the land was purchased by AHFC and the Solicitation tab for details about the process of selecting a development partner. 

AHFC will require its development partner to meet clear standards for property management, maintenance, and community responsiveness. AHFC welcomes input on what good management should look like. 

• This development is anticipated to serve the general population with a focus on family-friendly housing. 

• Some community members have asked if this housing development will serve people experiencing homelessness and/or will provide ownership units. The development is not anticipated to serve either of these populations.

  • In terms of homelessness services, the City does not currently have the ongoing resources necessary to support wraparound services and rental subsidies required for operating Permanent Supportive Housing (PSH), and therefore cannot put resources towards building new PSH properties at this time.

  • With regards to ownership, we are seeing a need for housing at deeper affordability levels (30%-50% of the median family income). This deeper affordability better aligns with rental developments, whereas AHFC’s affordable ownership developments tend to serve 60%-80% of the median family income. See current income and rent limits as set by HUD.  

This development is designed to serve households and individuals who live, work, and contribute to this community but are being priced out by rising costs, or want to live here but cannot currently afford to. It responds to a documented gap in affordable rental housing in South Austin. 

• The surrounding area has high household incomes (approximately $130,000 median) and high rents (median gross rent exceeding $2,166), with 79% of renters paying at least $1,500 per month. 

• The area has a low supply of existing affordable multifamily housing. 

AHFC is committed to reaching the full range of voices affected by this development, including those who are hardest to reach, and to providing engagement opportunities that are accessible, bilingual, and designed around where people already gather. Visit the Community Engagement tab to learn what we’re hearing and how to give your input. We also invite your questions in the Q&A section below.  

AHFC is planning a new affordable housing development at 6200 Menchaca Road, with multiple buildings designed to serve families and individuals across a range of income levels in a neighborhood where affordable options are increasingly scarce. 

• The development is anticipated to include 145 to 275 units in buildings of four to five stories, accessed from Menchaca Road. 
   
• All of the units will be income-restricted multifamily rentals serving households at various income levels. 
   
• Multiple buildings are possible, which allows for variation in design

At this time, the building height and unit count have not been finalized. The zoning application is primarily to allow for a multifamily development and to provide flexibility for potential development scenarios (using Affordability Unlocked). The final zoning category will establish the upper bounds of the development allowed. It does not require the development to maximize density. 

In response to the Austin Strategic Housing Blueprint, voter-approved 2018 General Obligation (GO) Bonds for affordable housing, and other policies directing the City to advance affordable housing, AHFC purchased this property in 2021 for $6.435 million in 2018 GO Bonds for affordable housing. Given the City’s goals of creating 60,000 new affordable housing units and using GO Bonds for affordable housing to support this goal, 6200 Menchaca offers a critical and strategic opportunity for long-term, publicly-owned, community-serving affordable housing. At the time of acquisition, AHFC estimated the property could yield up to 280 multifamily rental units through a 4-story development across most of the site with structured parking. Subsequent high-level yield studies and due diligence efforts suggest MF-4 zoning plus Affordability Unlocked, with a 4- or 5-story building with 145 units to 275 units, may be the most appropriate zoning category to allow flexibility between advancing affordable housing goals, stewarding the City’s limited resources, and balancing community needs.  

We hear the concern about density and building height, and will be taking all community input into consideration as decisions are made. No building has been designed yet. Community engagement, in addition to City policies, will inform the solicitation requirements and, once a developer is selected, the ultimate design of the future development.  

Once the development team is selected and design begins, AHFC will require the selected developer to conduct additional community engagement around specific building form and site design to understand and respond to community needs when possible, including further discussions around height, buffers, access, green space, trees, and community-serving amenities.

AHFC has estimated the development could yield between 145 to 275 units, all of which are anticipated to be income-restricted. The 145-unit development assumes 4-story building(s) with surface parking whereas the 275-unit development assumes 5-story building(s) with structured parking; both assumed a 1.2 parking ratio. However, these analyses were mathematical and did not involve laying out the site or buildings. The final unit count and development strategy will depend on further due diligence (including a tree survey), financing constraints (including creating a financially viable development and whether the development can support the added cost of structured parking), feasible designs (including driveway location, drainage needs, etc.), and community priorities established during this engagement process, outlined in the RFQ, and further refined with the selected developer. The final design and unit count will be based on balancing the resulting tradeoffs of addressing affordable housing goals, serving community needs, and potentially reducing building heights and unit counts, and will not be determined until the solicitation has been awarded (anticipated May 2027) and the selected development team has conducted additional due diligence and community engagement (anticipated 2027-2028).  

With regards to ownership, we are seeing a need for housing at deeper affordability levels (30%-50% of the median family income). This deeper affordability better aligns with rental developments, whereas AHFC’s affordable ownership developments tend to serve 60%-80% of the median family income due to household income requirements needed to qualify for and sustain a mortgage even at a restricted sales price.  

Furthermore, this site is best positioned for rental development due to the size of the property and projected unit yields, which would be too many units to finance for an affordable ownership development. Including both ownership and rental development within this site would also be infeasible due to the site dimensions and inability to accommodate separate, feasible, and phased developments on this site. 

However, AHFC’s portfolio includes other affordable ownership opportunities with more ownership developments underway, such as Willows Crossing and Doris Hathaway. Learn more about AHFC’s ownership portfolio, the Austin Community Land Trust (ACLT).  

Yes, this development requires a rezoning as well as a Neighborhood Plan Amendment, both of which involve a formal public process with required notifications, public hearings, and opportunities for community input before the Austin City Council makes a final decision. 

• The site's current zoning does not permit the proposed use. A rezoning application must be submitted to change the base district classification. The current zoning is SF-2-NP (Single Family Residence – Standard Lot). AHFC is proposing to change it to MF-4-NP (Multi-Family Residence – Moderate-High Density). 

• Staff initially anticipated the future selected developer would lead the rezoning. However, to better prepare this development to harness various financing sources and deliver affordable housing faster, staff are initiating these processes in advance of the solicitation. 

• Because the site falls within an adopted neighborhood planning area, a Neighborhood Plan Amendment to the Future Land Use Map (FLUM) is also required. This amendment can be processed at the same time as the rezoning. 

• Under City of Austin procedures, public notice of a rezoning application is mailed to property owners, utility customers, and registered neighborhood or environmental organizations within 500 feet of the site within 14 days of filing. A zoning sign is posted on the site. 

• A staff recommendation is developed based on review of land use principles and adopted plans, and is released as a public report before review by the Planning Commission. 

• Both the Planning Commission (or Zoning and Platting Commission) and City Council hold public hearings where community members may speak or submit written comments. Notice of each public hearing is mailed to neighbors within 500 feet at least 11 days before the Planning Commission hearing and 16 days before the City Council hearing.

• Community members can submit comments on active plan amendment and rezoning cases through the City's Plan amendment and Zoning/Rezoning Comment Form sent with the public hearing notices. Comments can also be sent via email any time during the process to the case managers:
  • Nancy Estrada, Zoning Case Manager,  Nancy.Estrada@austintexas.gov
  • Maureen Meredith, Plan Amendment Case Manager, Maureen.Meredith@austintexas.gov

How do we keep this property at MF-1 which is in line with Residential Node as described in the South Austin Neighborhood Plan and in keeping with the character of our neighborhood? Many in the neighborhood’s preference is for townhomes with an ownership option. 

MF-1 is unlikely to yield enough units to adequately respond to the City’s affordable housing goals and steward City resources. We hear the community concerns about 5 stories. We are exploring what development options there may be at lower height and a different multifamily zoning category. 

With regards to ownership, we are seeing a need for housing at deeper affordability levels (30%-50% of the median family income). This deeper affordability better aligns with rental developments, whereas AHFC’s affordable ownership developments tend to serve 60%-80% of the median family income due to household income requirements needed to qualify for and sustain a mortgage even at a restricted sales price.  

Furthermore, this site is best positioned for rental development due to the size of the property and projected unit yields, which would be too many units to finance for an affordable ownership development. Including both ownership and rental development within this site would also be infeasible due to the site dimensions and inability to accommodate separate, feasible, and phased developments on this site. 

However, AHFC’s portfolio includes other affordable ownership opportunities with more ownership developments underway, such as Willows Crossing and Doris Hathaway. Learn more about AHFC’s ownership portfolio, the Austin Community Land Trust (ACLT).

Does Affordability Unlocked 2 allow the development to exceed the 60 feet height limit given the bonus to expand up to 90 feet? Given the goal of trying to maintain the 1.2 parking spaces per unit, the neighborhood is concerned that the only option is to build up. 

Yes, the zoning category MF-4 allows for 60 feet in height and the density bonus program, Affordability Unlocked, allows for up to a 50% increase over base zoning limits for a development meeting the “Type 2” requirements. Type 2 means that 75% to 100% of the total units are income-restricted, at least 50% of the affordable units contain two or more bedrooms, and at least 10% of the affordable units are reserved for households at 30% MFI or below.  

The type of construction we typically use for our projects (wood frame) is limited to 5 stories, which is typically around 60-feet-tall. A 90-foot-tall building would be closer to 7-9 stories and would require steel or concrete construction, which would likely not be financially feasible for this project.  

Five stories is envisioned as the maximum height that would be feasible for this development, however, the development has not been designed yet, and AHFC will continue to engage the community to inform the design of the development once a development partner is selected. We understand community concerns about building height and will prioritize limiting building height near single family homes in the design of the development while providing enough parking to accommodate residents and guests. 

Will City Council members and the Mayor recuse themselves from the rezoning vote if they’ve accepted campaign contributions from developers during their campaign and tenure? 

While campaign contributions generally do not require recusal, there are state and local laws that require government officials to disclose conflicts of interest and, when applicable, recuse themselves from votes. 

Texas Local Government Code Chapter 171 requires officials with a substantial interest in real property to file an affidavit stating the nature and extent of the interest before a vote and must abstain from further participation if it is reasonably foreseeable that the action will have a special economic effect on the property’s value. A knowing violation of Chapter 171 is a Class A misdemeanor.  

Austin’s City Code Chapter 2-7 (Ethics and Financial Disclosure) adds local requirements. Complaints under the city code are heard by Austin’s Ethics Review Commission. 

• Section 2-7-61 requires disclosure before the vote, a councilmember must either file the Chapter 171 affidavit or publicly disclose the nature and extent of the interest in the official records. 

• Section 2-7-63 prohibits participating in a vote that affects a member’s substantial interest. 

• Section 2-7-65 bars participating in a vote or decision affecting a substantial interest of a relative within the first or second degree. 

Affordable housing is housing that is affordable to low- and moderate-income households. Although some housing on the open market may be naturally affordable to households with lower incomes, affordable housing generally refers to units that are restricted to households at or below specific incomes, with rents at or below specific limits. Most affordable housing in the United States is financed via the low-income housing tax credit (LIHTC) program, a federal program created in 1986 and administered by state housing finance agencies, such as the Texas Department of Housing and Community Affairs. Learn more about LIHTC. 

The City of Austin supports creation of affordable housing through a variety of developer resources, including gap financing, developer incentives, and partnerships. The City also offers programs and resources to help renters, homebuyers, and homeowners throughout Austin remain housed or find housing. 

The City primarily utilizes voter-approved affordable housing bonds, Project Connect Anti-Displacement Funding, federal funding, and other local funding sources to finance these programs.  

6200 Menchaca is anticipated to be financed with low-income housing tax credits, a conventional loan, and gap financing sources, which may include the City’s Housing Development Assistance program. 

At its core, affordable housing is intended to first and foremost benefit the residents by providing access to safe, stable, and affordable housing. This development is anticipated to serve households with incomes at or below 30% to 60% of the median family income. Per the 2026 rent limits, this means the maximum rents could potentially range from $756 to $1,614 for a one bedroom, or $1,048 to $2,016 for a three-bedroom unit.   

The City, through the Austin Housing Finance Corporation, will solicit a developer partner to finance, design, permit, construct, and operate the building. The developer will receive compensation, in line with the low-income housing tax credit (LIHTC) program regulations, for these services and the risks associated with undertaking real estate development and providing associated long-term guarantees. AHFC is also anticipated to receive compensation for its role as the owner and co-developer, including a share of the developer fee and cash flow. Any proceeds to AHFC will be reinvested in housing activities across the City. Anticipated terms will be included in the developer solicitation. See past solicitations for sample Summary of Terms.  

Austin’s current rental market has softened significantly recently. Despite high vacancies overall, we are seeing continued demand for units available to households at or below 50% of the median family income, which is the primary population we anticipate serving at 6200 Menchaca. Indeed, the City’s most recent Housing Market Analysis shows that, throughout Austin, there’s a substantial gap between the number of households with lower incomes, and the number of housing units affordable to these households. 

AHFC’s work is guided by a number of City policies and goals, one of the most central of which is the Austin Strategic Housing Blueprint. The Blueprint established a citywide goal of developing 135,000 new housing units by 2028, with 60,000 of these units affordable to low- and middle-income households. It also established housing goals for each council district, with almost 4,500 units needed in District 5. Although we’ve made progress, we still have a long way to go. AHFC's development partnerships are one of the City’s tools to advance this goal and address the mismatch illustrated in the Housing Market Analysis.