HEB’s $1M donation to fund two affordable housing projects in East Austin

To aid in the construction of affordable housing in East Austin, HEB has announced a $1 million donation to Austin Habitat for Humanity to help fund two new clusters of affordable homes in East Austin.

The grocery giant’s contribution will help fund construction on Habitat’s 126-unit Persimmon Point project, and the organization’s work at the Whisper Valley development in Manor that will see more than 70 new homes constructed by the end of next year. AHH is still fundraising to cover the roughly $2.5 million still needed to complete Persimmon Point, which is already under construction.

Amy Jackson, Austin Habitat for Humanity’s chief development officer, said Persimmon Point will be the organization’s most densely populated project to date. Its funding sources for affordable housing projects typically involve a mix of public money including the Housing Authority of the City of Austin, partnerships with foundations and philanthropic donations.

In addition to the donation, HEB has announced new stores planned in East Austin, with a Manor store slated to open next year and a location at the intersection of East William Cannon Drive and South Pleasant Valley Road that will open in 2027. The need for a full-service grocery store in Southeast Austin has been a recurring political issue in the city for years, with the city exploring the opening of a co-op style store in recent years as a way to address residents’ call for better food options.

Whisper Valley, a geothermal-powered community in Northeast Travis County managed by Taurus Investment Holdings, will get 48 homes in AHH’s first phase. The organization plans for a blitz build of 25 additional homes during the Carter Work Project in October 2025.

Jackson said those efforts are part of a broader strategic plan to increase affordable homeownership, aiming to build 75 homes annually within the next five years.

“We’re incrementally growing, but the need is still real,” she said. “Way too many families are housing cost burdened, and everything we’re doing aims to alleviate that pressure.”

Greg Anderson, Austin Habitat for Humanity’s director of community affairs, said the affordable housing is intended to at least partially serve HEB employees in the new stores, who will want to have a short commute instead of searching for cheaper housing in surrounding suburbs.

“Housing affordability is a real concern for our partners and the communities we serve,” he said. “This model of corporate responsibility shows what’s possible when local businesses step up to help solve critical challenges.”

In addition to Persimmon Point and Whisper Valley, Anderson said Habitat is currently working with the Housing Authority on the Prospect Heights section of the Rosewood Townhomes community to transition current renters into homeowners.

Anderson, who also serves on the Planning Commission, noted that while recent City Council actions have created pro-housing momentum, bottlenecks at the staff level and delays in implementing code changes continue to slow progress. He specifically said approvals for subdivisions of parcels and site plans may stifle the effectiveness of the two rounds of pro-density code changes approved over the past year.

“An action-oriented Council is essential, but now attention needs to turn to how we can support staff in implementing the changes that will make different types of housing accessible to more people,” he said.

While area rental rates have moderated and in some cases declined recently, Anderson said homeownership is still too costly for many local households. Anderson said that challenge extends into the area’s four surrounding counties, with AHH planning to explore options for building affordable units outside of the city.

“There’s still way too many people and way too many families that are housing cost burdened,” he said. “Everything that City Council is doing, and everything that the county and the state are looking to do when it comes to addressing homeownership … it has to make it easier for more folks to be able to enjoy affordable homeownership that doesn’t have them as cost burdened as we are today.”

Photo by Enoch Lai, CC BY-SA 3.0, via Wikimedia Commons.

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