Austin Apartment Builder Secures $50M for Affordable Housing

Finding private financing for apartment projects with rates as they are is a challenging proposition. One Austin developer is taking a different route. LDG Development has rounded up $50 million in the form of tax-exempt bonds to help build the 328-unit Kingswood Apartments just south of Circuit of Americas. The Austin Business Journal reports an Austin city agency would issue the financing. The project will be entirely for affordable housing applicants.

The project will also qualify for a 4% tax housing credit program, where investors receive tax credits if they participate in funding the project.

Kingswood Apartments will have units reserved for tenants with incomes at or below 60% of the median family income for Travis County. The MFI for a family of four in Travis County is $122,300, and housing experts have said buyers with this income can typically afford a home priced between $300,000 and $400,000. Meanwhile, 60% MFI for a family of four is $70,080. Rental rates will range from $1,314 to $2,032.