From the City of Austin's press release:
The City of Austin Housing Department celebrates the monumental opening of the Austin Housing Finance Corporation’s (AHFC) first permanent supportive housing community. Espero Rutland is located in District 4 at 1934 Rutland Drive. The development is already accepting applications and began welcoming residents at the beginning of the year. The 2-acre property features 171 furnished studio apartments designed to house residents at risk of or who have experienced chronic homelessness – permanently. All units will be affordable for households earning at or below 60% median family income.
“Espero marks AHFC’s first of many permanent supportive housing communities to open in Austin,” explains Mandy DeMayo, Interim Director for the Housing Department. “We couldn’t be prouder to help 171 households have a place to call home. We are grateful to all of the partners that helped make Espero happen as we work together to increase affordable housing for vulnerable individuals and families.”
Espero, developed in collaboration with The Vecino Group and Caritas of Austin, was funded through various sources. This includes $17 million in Private Activity Bonds issued by AHFC, a $17 million construction loan and an $11.4 million permanent loan from Citi, $11 million in 4% LIHTC equity syndicated by Boston Financial and invested by Aetna (a CVS Health company), $3 million in Texas Department of Housing and Community Affairs (TDHCA) debt financing through the Multifamily Direct Loan (MFDL) program, $750,000 from the Federal Home Loan Bank of Dallas, and finally, $7.5 million in AHFC debt financing through the Rental Housing Development Assistance (RHDA) program.
“We are thrilled to see the grand opening of Espero Rutland, which will provide much-needed affordable housing for our unhoused neighbors and help address the growing issue of homelessness in our community,” said Jo Kathryn Quinn, President & CEO of Caritas of Austin. “Homelessness is a complex issue, and there is no single solution. But we also know that housing is the critical first step in helping people rebuild their well-being.”
Both the City and the Housing Authority of the City of Austin dedicated project-based vouchers to support the facility’s operation. The development includes 101 housing vouchers dedicated to the property, trauma-informed design, and on-site supportive services provided by Caritas of Austin. The Housing Authority of the City of Austin provided 50 project-based vouchers, with a total value of $17 million over the course of 20 years.
“Espero Rutland development is a huge win for our community and a win for our homeless neighbors and veterans,” said Michael Gerber, CEO of the Housing Authority of the City of Austin. “HACA is proud to partner with Caritas, the City of Austin, and so many community partners on this important development. Twenty-five chronically homeless veterans and twenty-five other homeless neighbors will receive nearly $17 million in rental assistance through HACA’s project-based voucher program over the next 20 years. Espero Rutland is a home run.”