Councilman Seeks Creation of Affordable Housing

DOWNTOWN AUSTIN, TX -- Austin City Council members on Thursday will consider setting aside up to $74 million from future property tax revenue to finance creation of specialized, affordable-housing districts.

The brainchild of District 4 Councilman Greg Casar, the financing plan centers on setting aside taxable revenue from high-end developments—high-rises and the like—on land that was once city-owned, non-taxable property.

Given the brisk pace of commercial development in Austin in recent years, such properties will contribute some $68 million in new revenue to city coffers over the course of ten years, Casar said.

Another $6 million would be derived from new businesses capitalizing on the now-trendy East side, once a thriving community primarily comprising a Latino working class.

Gentrification continues to displace residents in some parts of the city as home property values soar in light of increased commercial development in their neighborhoods. Some residents can no longer afford to live there in light of soaring values.

Casar’s idea of setting aside tax money is an effort to stem that tide.

“This Thursday, we’ll be voting to designate more areas as homestead preservation districts,” he said, noting the city currently only has one such district, located in East Austin.

The idea of for such districts isn’t new, he noted. He credited District 51 State Rep. Eddie Rodriguez for having created the idea for the districts ten years ago. But Casar’s idea extends the idea further with a funding mechanism to promote affordable housing within such districts.

“This not only designates areas for homestead preservation districts, but actually provides the funding mechanism for the first time,” Casar said.

The proposal calls for creation of three homestead preservation districts in Southeast Austin, far East Ausin and North Austin.

Casar his hopes for passage of his proposal are buoyed by the presence of like-minded individuals on the council dais also hoping to promote affordable housing.

Chief among fellow supporters is Mayor Steve Adler, who has voiced concerns over the diminishing affordable housing stock in Austin. Also simpatico is District 3 Councilman Pio Renteria, who’s long championed affordable housing creation, Casar said.

“Pio has been promoting the idea of affordable housing for a long time,” Casar said. “He’s driven it, and I’m putting together the financing mechanism.”

The components to Casar’s plan will be voted on during a very packed, pre-holiday council agenda. The council is scheduled to vote on items 26-28, which will create the three homestead preservation districts; item 74, related to the taxable revenue on land formerly city-owned; and item 99 detailing a proposals to create a tax increment reinvestment zone in the existing homestead preservation district.

The Dec. 17 council meeting is scheduled to begin at 10 a.m. at Austin City Hall, 301 W. Second St.