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South Austin, gentrification and the affordability crisis

Affordable housing finally comes to Cumberland Road. 55 units will be rented at below-market value—a step in the right direction to bridge the wealth gap. However, with groundbreaking not scheduled until spring 2025, it's yet another case of too little, too late from our out-of-touch leaders.

Published August 12, 2024 at 10:26am by Shonda Novak

Austin Developer to Reserve Half of New Units for Affordable Housing

Austin, TX — In an attempt to address the affordable housing crisis in Austin, developer Chris Affinito plans to build 110 new apartments, with a twist of "luxury amenities." Affinito, president and founder of Notional Development Partners, says his project, named after its address, 600 Cumberland Road, will offer a glimmer of hope to those struggling to find affordable housing in the city.

We’re focused on bringing more workforce housing to Austin. Rising rents have forced many people into long commutes from the suburbs. Our teachers, medical workers, first responders, and essential workers deserve better; they deserve to live in the community they serve.
— Chris Affinito, president and founder of Notional Development Partners

The development, an eight-story mixed-use building in the Dawson neighborhood, will include restaurant and retail space. Half of the units will be reserved for affordable housing, serving those earning between 50% to 80% of Travis County's median income. Affinito ensures that tenants won't be paying more than 30% of their gross income towards rent. For example, a person earning half the median income can expect to pay no more than $1,103 for an efficient unit, $1,181 for a one-bedroom, or $1,418 for a two-bedroom apartment.

The development's market-rate rents will start at $1,500 per month for a studio and climb to a staggering $3,000 per month for a two-bedroom unit, showcasing the extreme disparities in Austin's housing market.

Despite the varied income levels, all units will have equal access to amenities, including a pool, fitness and business centers, a lounge, and underground parking.

Notional has secured funding from Capital Impact Partners, a national nonprofit lender, for the project, with an understanding of the dire need for affordable housing options in high-opportunity areas. Sarah Ransome, a senior loan officer with Capital Impact Partners, acknowledges the rising housing costs in Austin, with the average rental price within a mile of the site exceeding the city's average by a significant margin.

As a shining beacon of hope in the struggling housing market, Notional Development Partners is also working on two other projects in Austin: one in the Montopolis neighborhood, with 101 units, half of which are affordable, and another in East Austin, with 348 units, 50% reserved for those earning between 50% and 80% of the area's median income, and 40% for those at or below 120%.

Perhaps these developments will inspire other builders and developers to step up and prioritize affordable housing, ensuring that Austin remains a vibrant and diverse community.

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