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City Council is seeking to create new affordable housing financing zones in Austin neighborhoods using a state tool that's recently supported nearly 400 income-restricted units across three East Austin developments.
Under state law, cities can establish Homestead Preservation Districts, or HPDs, in targeted areas home to higher shares of low-income residents. Local funding tools under HPDs allow a portion of the district's city property taxes to be reserved for affordable housing purposes, like new development or land banking.
District 3 council member José Velásquez has drafted a pair of resolutions seeking to double the tax collections within East Austin's current HPD, and to establish new HPDs in North Central and Southeast Austin. Another district for the student-heavy West Campus area could also be included in the update.
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