City plans navigator expansion, financing tools for HOME initiative

City housing leaders have found that efforts to expand and improve access to Austin’s HOME initiative are progressing on multiple fronts, with program refinements, interdepartmental coordination and new support strategies underway. A recent memo from the Housing Department outlines these developments, which focus on helping low- and moderate-income residents stay in their homes, build additional units and better navigate the city’s often-complex permitting and development process.

According to a May 8 memo from Interim Housing Director Mandy DeMayo, city staff have completed a financial tools analysis in collaboration with HousingWorks Austin and have begun implementing recommendations to reduce the barriers many homeowners face when attempting to add dwelling units to their properties. Among the completed or advancing actions is the establishment of the HOME Interdepartmental Task Force, which has developed a work plan that is now in motion.

The task force is focused on streamlining permitting processes, assessing existing homeowner programs and exploring how to lower construction costs and upfront development fees. In addition, the Housing Department is preparing to relaunch and expand its Displacement Prevention Navigator Program in late summer, shifting to a model that separates outreach and case management duties to better support at-risk homeowners in Colony Park, Dove Springs and Montopolis neighborhoods.

Feedback from a pilot phase of the navigator program, which concluded in June 2024, has informed the redesign of the initiative. The updated structure will assign community ambassadors to rebuild relationships and awareness, with case managers providing direct assistance to households navigating financial stress or development challenges.

The department is also preparing a broad education and outreach campaign aimed to inform homeowners about estate planning, predatory lending, homestead exemptions and home repair financing. Staff are also developing partnerships with legal aid providers to create estate planning and property rights workshops.

An additional $100,000 in funding will be necessary to support collateral development, outreach materials, and related marketing, with that request to be considered during the city’s upcoming budget process.

Data released earlier this year show that since HOME Phase 1 took effect in February 2024, development applications under the new rules have increased. A six-month progress report noted that 159 residential development applications had been submitted, with 99 receiving approval. Most of those were for two-unit projects.

Applications that used the preservation bonus intended to protect older homes were limited, with only two filed during that period. Demolition permit applications remained flat compared to the previous six months, suggesting that the code changes have not led to an increase in teardown activity. The average unit size for approved projects was just over 1,700 square feet, indicating interest in the new options for housing creation.

The permitting environment has also seen notable improvement. A report in late 2024 documented a 56 percent reduction in the time required for initial site plan review, bringing the average wait to 32 days, with follow-up review times also decreasing significantly.

In March, city officials warned that proposed federal cuts to housing and homelessness programs administered by the Department of Housing and Urban Development could threaten funding that supports downpayment assistance, homelessness services and home repair grants. Austin currently receives about $14 million annually through HUD block grants, in addition to a one-time $14 million allocation earlier this year. Cuts to these sources could constrain the city’s ability to fund some components of the HOME program, particularly those targeted at low-income residents.

The developments underway are tied to two City Council resolutions adopted in December 2023 and May 2024. Those directives called on staff to explore financing mechanisms such as Special Purpose Credit Programs, low-interest and forgivable loan programs, and expanded down payment assistance.

They also required creation of an interdepartmental task force, improvement of public outreach and regular reporting to City Council on findings and implementation needs.

Task force efforts are planned to continue through early 2025, with stakeholder engagement sessions and reviews of existing ombudsperson roles, fee structures and development support programs scheduled in the coming months. Additional findings and recommendations are expected later this summer.

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