Federal report shows city’s progress, shortfalls in addressing housing needs

A report recently submitted to the federal government offered a picture into how the city has progressed in achieving its housing goals using federal dollars, while also highlighting areas where improvement is needed to make sufficient progress on its most recent five-year housing plan.

At its most recent meeting, the Community Development Commission (CDC) reviewed the city’s Housing Department’s Fiscal Year 2023-2024 Consolidated Annual Performance and Evaluation Report (CAPER), a federally required document that details progress in addressing housing and community development goals.

The city showed success in areas such as the Down Payment Assistance program, which exceeded expectations by serving more households than projected, and the successful implementation of some home repair initiatives.

The report also identified shortcomings, including difficulties in meeting targets for tenant-based rental assistance and special needs housing, with factors such as rising housing costs, administrative hurdles and market constraints contributing to these challenges. The city’s efforts to support vulnerable populations – including veterans and people experiencing homelessness – were noted, though concerns were raised about the accessibility and transparency of these programs.

Recommendations included improving program tracking and reporting mechanisms, increasing outreach efforts to underserved communities and enhancing collaboration with nonprofit partners to expand the reach and effectiveness of housing initiatives. The report also emphasized the need for strategic adjustments to funding allocations and better alignment between planning and implementation cycles to ensure efficient use of resources, and greater impact in addressing Austin’s housing affordability crisis.

Commission members raised concerns about the allocation of housing resources, with some questioning whether the city’s reliance on the 80 percent median family income threshold excludes lower-income residents from affordable housing opportunities.

Commissioner Tisha-Vonique Hood shared data on the salary ranges of essential local professions such as social workers, firefighters and an entry-level teacher, all of which max out under $60,000 and would make affordable units priced at 80 percent of MFI too expensive.

“We are looking at it (with a) individual humanistic perspective when we’re looking at these particular percentages, how we can advocate as well as amplify for those that reside here in Austin,” she said. “When we are considering the types of funding, we also need to look at a humanistic perspective of who are the types of individuals that will be impacted and affected when we have those MFI ranges.”

A key topic of discussion was the city’s approach to veteran housing support, specifically the use of Veterans Affairs Supportive Housing vouchers. Commissioners requested more detailed updates on how these vouchers are allocated and whether they are effectively reaching their intended recipients. Additionally, concerns were raised about the availability of eviction prevention services and the transition of tenant rights assistance from federal to local funding sources.

The CAPER outlined that during the past fiscal year, the Housing Department utilized federal funds from programs such as the Community Development Block Grant, the HOME Investment Partnerships Program and the Emergency Solutions Grant. The city reported serving 817 individuals through tenant-based rental assistance, falling short of its projected target of 970. Meanwhile, the Down Payment Assistance Program exceeded expectations, helping 29 households instead of the anticipated 25.

Chair Cheryl Thompson asked whether the shift of certain housing programs from federal to local funding sources should be viewed as a positive or negative development. Interim Housing Department Director Mandy DeMayo responded by stating that while the department would prefer to have sufficient federal funding to fully support community needs, the ability to secure local funding – such as Housing Trust Fund dollars – is a positive development that allows the city to continue essential programs.

“The positive is we are able to identify local funds,” DeMayo said. “It won’t show up in this type of reporting. As a department, we’re working on and have so many different funding sources. We have very specific reporting mechanisms. And what we’re trying to do is do one consolidated report about all of our programs.”

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