Austin, Monitored: Demolition and Rate Cut Impact

Callout: Today’s newsletter is supported by “Austin Parks Foundation’s Party for the Parks”

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Quote of the Day

““There was a very highly publicized encampment here in the spring that the city expended thousands of dollars to clean up. Obviously, it’s been on our radar for 30 years… but we have people actively camping between walls that are not stable and it’s very, very serious.””

— Kim McKnight, Historic Preservation Division Manager, from City to demolish historic ruins at Bluff Springs, citing threat to public safety

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City to demolish historic ruins at Bluff Springs, citing threat to public safety

From Kali Bramble

City staff are stepping in to put the remains of a former Texas Historic Landmark in South Austin out of its misery, after decades of neglect have left the 173 year old ruins a threat to public safety.

The structure at 6706 Bluff Springs Road, which was once home to prominent political figures at the dawn of Texas’ statehood, has languished for nearly three decades since a fire that left it an assemblage of dilapidated limestone walls. With no intervention from owner David Hemassi, who inherited the property after the death of his father Majid, the unsecured lot just east of I-35 and William Cannon has found itself one of the area’s largest encampment sites.

Fed rate cut could help city jump start stalled redevelopment projects

From Chad Swiatecki

City staff expressed optimism on Wednesday that improvements in capital markets could create positive momentum for stalled redevelopment projects on a variety of city parcels. At a briefing to City Council’s Audit and Finance Committee, staff from the Financial Services Department cited the The Federal Reserve System’s recent interest rate cut as a sign that projects such as the St. John and HealthSouth sites could be ready to move forward following years of planning and false starts.

Christine Maguire, manager of the Redevelopment Division, noted both projects had previously been entitled and were moving toward implementation but have faced delays due to market uncertainty, increased vacancy rates in the multifamily sector and high borrowing costs.

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Today’s newsletter is supported by “Austin Parks Foundation’s Party for the Parks”

Join Austin Parks Foundation for the 11th Annual Party for the Parks, featuring Passion Pit! This beloved event is happening under the lights at ACL in Zilker Park on Wednesday, October 8th.

Partygoers will enjoy delicious dining options, libations from Austin’s premiere beverage brands, games, a live auction and an intimate concert—all while helping raise funds for our city’s nearly 400 parks, trails and green spaces. Click here to get your tickets and join the fun!

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City experiments with new displacement study ethos

The Community Development Commission recently reviewed new maps and data from Housing Department staff that are reflected in updates to Austin’s Displacement Risk Area maps and dashboard. The presentation was based on new American Community Survey data from 2018–2022 and showed a significant expansion in areas flagged as vulnerable or facing chronic displacement. The number of vulnerable tracts increased from 39 to 47, and chronic areas grew from 22 to 30. Much of this growth occurred on the city’s northern, eastern, and southern outskirts, which have seen rising housing costs, a decline in low-income residents and demographic shifts like an increase in residents with bachelor’s degrees.

The Housing Department also introduced a new program with the University of Texas at Austin to build an “early warning system” for displacement. Unlike the backward-looking American Community Survey-based maps, the new system integrates real-time indicators like development activity, utility data and housing trends to identify at-risk areas more proactively. Commissioners emphasized the importance of ensuring future data updates involved more direct engagement with displaced residents and the community groups that serve them. Several members also urged the department to ensure this data meaningfully informs policy decisions, particularly around zoning, affordability thresholds and program eligibility

–Chad Swiatecki

Austin’s CDC votes in favor of anti-displacement restart

The Community Development Commission voted to recommend City Council resumes the Anti‑Displacement Community Acquisition Program (ADCAP) at the beginning of fiscal year 2026. The program, funded through Project Connect’s anti‑displacement allocation, had been paused in October 2024 while Austin Housing reviewed both short‑ and long‑term improvements. ADCAP offers zero‑interest, forgivable, and repayable loans to nonprofits to acquire land or property in gentrifying, transit‑adjacent areas to preserve affordable housing and limit speculation. With $8 million allocated to the program, $3.6 million has been used so far to support over 20 affordable units. The resumption proposed by the commission includes reinstating the rolling application cycle and deploying these resources once again in vulnerable neighborhoods.

The decision to pause ADCAP came amid growing concerns about who benefits under its eligibility thresholds and how quickly nonprofits could access resources in a tight real estate market. Discussion last year highlighted community unease over the income cap set at 80 percent of the area’s median family income which some argued is too high to capture those most at risk of displacement. There were also questions about transparency and fairness in how nonprofits were selected for funding, with criticism that some communities, especially East Austin, weren’t seeing much of the anti‑displacement dollars under ADCAP despite their high need.

The recommendation now goes to Council for possible consideration.

–Chad Swiatecki

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