Foundation Communities Receives $1.5 Million for Austin Affordable Housing Development to Ease Low-Income Housing Shortage

Foundation Communities Receives $1.5 Million for Austin Affordable Housing Development to Ease Low-Income Housing Shortage

AUSTIN, TX - Wells Fargo and the Federal Home Loan Bank of Dallas (FHLB Dallas) have awarded $1.5 million in Affordable Housing Program (AHP) subsidies to Foundation Communities for two Austin apartment complexes serving low-income individuals and families.

The $25 million Zilker Studios apartments (formerly Armadillo Studios) will provide 100 rental units to single adults with high needs, low incomes and housing instability in central Austin while The Loretta, a $31 million project, will offer 137 units to low-income families and individuals in far north Austin. Each project received a $750,000 AHP subsidy.

“We are thankful that Wells Fargo and FHLB Dallas see these two projects as critical in providing affordable housing options at a time when rising rents and home prices are straining the budgets of many Austinites,” said Walter Moreau, Foundation Communities executive director.

Wells Fargo said the bank is pleased to support the nonprofit’s mission.

“This is a homegrown nonprofit that has succeeded in providing innovative and affordable housing and opportunities that transform people’s lives,” said Theresa Alvarez, Wells Fargo senior vice president of Community Relations for Central Texas.

AHP funds are intended to assist FHLB Dallas members in financing the purchase, construction and/or rehabilitation of owner-occupied, rental or transitional housing and housing for homeless individuals. AHP funds must be used to benefit households with incomes at or below 80 percent of the median income for the area.

In 2020, FHLB Dallas awarded $19.3 million in grants to 38 affordable housing projects. The grants will help create 2,749 new or rehabilitated housing units. Included in that total is $10.2 million for 1,475 units in Texas.

Since the AHP’s inception in 1990, FHLB Dallas has awarded more than $323 million in AHP and Homeownership Set-Aside Programs and has assisted more than 57,000 households.

Greg Hettrick, first vice president and director of Community Investment at FHLB Dallas, said Wells Fargo has been a long-time proponent of affordable housing.

“We’ve partnered with Wells Fargo on dozens of AHP subsidies over the years in multiple cities and states; it’s been a joy to work with them,” Mr. Hettrick said.

Source: Foundation Communities

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