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Austin leaders voted to extend a housing financing tool into several neighborhoods home to higher shares of lower-income residents, with the aim of bringing more affordable homes and apartments to those areas.
Under state law, cities can designate Homestead Preservation Districts, or HPDs, in targeted areas with higher rates of poverty and lower median incomes. After a district is established, financing tools like tax increment financing or land banking can be used to support local affordable housing development.
After recent City Council action, officials voted this fall to double the share of tax revenue set aside under Austin's original HPD on the east side, which supported several housing complexes. They also designated three new districts in North Central and Southeast Austin as well as in the West Campus area for future low-income housing. Financing tools in those neighborhoods could be set up next year.
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