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City opens $5 million grant round for anti-displacement work

Monday, May 19, 2025 by Chad Swiatecki

At its meeting last week, the Community Development Commission learned about a newly-launched $5 million grant opportunity aimed at combating displacement and promoting economic mobility near Austin’s Project Connect transit corridors.

Housing Department staff explained that the current $5 million solicitation is the final portion of a $15.9 million allocation for fiscal years three through five of the Community Initiated Solutions (CIS) program. Of that total, $10.9 million has already been awarded to eight community organizations that had received funding in earlier rounds and applied to continue their programs. The remaining funds are now open to competitive proposals from nonprofit organizations operating within one mile of Project Connect lines.

Questions during the meeting focused on how the funding amount was determined and how it fits into the broader $300 million anti-displacement strategy tied to the transit expansion. Commissioners also had questions about eligibility, whether previously funded organizations could reapply and how new groups would be supported. Staff confirmed both new and existing 501(c)(3) organizations are encouraged to apply. Mission Capital, a nonprofit partner for the program, is providing free technical assistance to help applicants align their proposals with program goals and develop work plans and deliverables.

Three technical assistance sessions remain available for interested applicants, with information and reservations available online.

Funding awards will range from $500,000 to $2 million, with at least three organizations expected to receive support. The solicitation closes on at 5 p.m. on June 13. Programs must demonstrate a focus on long-term economic resilience, such as workforce development, income stabilization or community-based economic infrastructure. Proposals that include initial needs assessments followed by implementation are also allowed.

Commissioners raised questions about whether funded projects could include planning or community input phases and whether legacy organizations would receive preference. Staff clarified that all applications will be evaluated through a community-led review panel, with scoring criteria emphasizing alignment with economic mobility goals and potential for sustained impact.

The solicitation represents the last round of programming funds from $14 million specifically earmarked for immediate anti-displacement strategies. That sum is part of the larger, multi-year $300 million fund approved by voters and divided among land acquisition, affordable housing development and community programming.

Organizations awarded funding in the most recent round include:

  • Austin Tenants Council: $2 million
  • Austin Voices for Education and Youth: $500,000
  • Communities in School of Central Texas: $2 million
  • Del Valle Community Coalition: $1.2 million
  • El Buen Samartino: $1 million
  • Goodwill Industries of Central Texas: $1.7 million
  • Interfaith Action of Central Texas: $975,000
  • Meals On Wheels Central Texas: $1.4 million

Also at the Tuesday meeting, Angel Zambrano of Austin Public Health’s Neighborhood Services Unit provided an update on the federally funded Community Services Block Grant (CSBG) program. Zambrano focused on services delivered through the city’s neighborhood centers, including rental assistance, food distribution, health screenings and case management aimed at helping residents transition out of poverty. No vote was taken, but commissioners raised questions about program sustainability in light of proposed federal budget cuts and expressed interest in more qualitative reporting and community engagement. A bipartisan bill to reauthorize CSBG for seven years is pending in Congress and no immediate funding disruption is expected.

 

Photo made available through a Creative Commons license.

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