The Austin Housing Conservancy Fund (Fund) is the first housing affordability fund in the nation to combine a non-profit investment manager (Affordable Central Texas or ACT) with an open-end private equity fund, changing the way affordable multifamily properties can be funded, acquired, and preserved, utilizing an innovative private investment option for long term preservation.  The Fund preserves workforce housing for nurses, teachers, musicians and other low-to-moderate income households earning primarily 80% and below median family income (MFI).  Annual rent rate growth at portfolio properties is limited to annual regional MFI increases published by HUD, providing a level of rental growth certainty that market rate fluctuations do not deliver.   In addition, to ensure positive outcomes for the residents, ACT provides social wraparound programs to create community and provide financial, healthcare, nutrition, and educational improvement opportunities for residents to increase the chance for success.  The Fund has a long-term goal of preserving 10,000 units in greater Austin with 2,150 units being acquired in its first five years totaling 14 properties with over $400 million in value.

The Austin Housing Conservancy’s innovative funding model has been piloted in Austin, is now a proven concept and is ready to be scaled and replicated in other markets. Starting in Texas, the goal is to create a roadmap for communities around the country to implement an open-end fund model run by a non-profit coupled with resident community and wellness programs. Each community will have its own set of challenges, but ACT’s experience and expertise in concepting, implementing, and proving the success of this innovative model provides knowledge on how to navigate various obstacles. Sharing the legal structure, partner concepts, capital raise ideas, creative acquisition strategies and overall structure will allow other communities to implement a similar program more rapidly, accelerating preservation and/or development of low-to-middle income housing across the country. ACT provides economy of scale through expertise, experience and success. ACT’s next step in growth is to respond to requests from investors and various cities to expand the Fund to include Dallas, Houston and San Antonio. The expectation is for a new city to be added in 2024.