Real estate
BY CHLOE YOUNG
A growing number of Central Texas school districts are seeking affordable housing options for their staff amid rising expenses. The average rental rate in the Austin and Round Rock area has increased by 24% since 2020 despite decreasing in recent months, said Monica Medina, president and CEO of the Austin Housing Conservancy. Lake Travis ISD and Eanes ISD officials said district pay raises have not kept up with growing housing costs, leading many teachers to live outside of where they work. In May, the LTISD board of trustees voted to form a public facility corporation, or PFC, that could partner with a developer to offer employees rent- and income-restricted apartments. EISD voted to form a PFC June 4, and though no concrete plans exist, EISD Superintendent Jeff Arnett said it gives the board financial flexibility to help staff. Schools consider housing options
The process
How it works
Local government entity creates a PFC 1
Under a PFC, districts can own and lease land to a developer while providing them with a 100% prop- erty tax exemption. In exchange, a developer must reserve a certain number of units for those making 60%-80% or less of the area median income, or AMI, which is $126,000 in the Greater Austin area for a four-person household, per the U.S. Department of Housing and Urban Development. Beyond incentivizing staff to stay in the district, the PFC may also allow for new revenue streams, Arnett said. Upon receiving approval from the Texas Secretary of State, EISD and LTISD officials said they hope to begin meeting with potential developers. EISD officials want to update staff next school year, while LTISD officials are aiming to offer staff housing options by 2025, district officials said.
Developer proposes mixed-income housing 2
If approved by PFC, developer attains financing from banks or lenders 3 PFC takes ownership of land and leases it back to developer 4 Developer builds housing 5
A PFC provides a tax exemption allowing a developer to rent units below market rates, including: 6
40% of units reserved for those making 80% or less of the AMI 10%-25% of units reserved for those making 60% or less of the AMI Rent is restricted at 30% of those AMI levels
SOURCES: TEXAS AFFILIATION OF AFFORDABLE HOUSING PROVIDERS, SHACKELFORD LAW/COMMUNITY IMPACT
Put in perspective In LTISD: 81% of staff who reported living outside the district said they wanted to move into the district. 56% expressed interest in workforce housing through LTISD. 11% reported living within 20 minutes of work. In AISD: 66% of staff identified as cost-burdened. 53% commute over 20 minutes to work. 43% had a household income less than $60,000. In EISD: Over 60% of staff expressed interest in workforce housing.
The bottom line
LTISD officials said they hope to retain teachers with workforce housing as the district cannot provide larger pay raises amid a lack of state funding, Norton said. In EISD—where the average home price sits around $2 million—the cost of housing is outpacing compensation increases, Arnett said. Amid high housing costs, LTISD and EISD officials said many staff members are living outside of the district and making long commutes. “If there’s something that we can do to just make the cost of living more affordable, ... we need to explore those options,” Arnett said.
Breaking it down Most local teachers don’t qualify for two- bedroom apartments, which cost over $1,700 on average monthly, data shows.
$74K
Qualifying salary for an average two-bedroom apartment in 2024
Average teacher salaries
Lake Travis ISD
$64,210 $60,392 $59,592
Austin ISD Eanes ISD
SOURCES: LAKE TRAVIS ISD, REALPAGE APARTMENT MARKET REPORT/ COMMUNITY IMPACT
SOURCES: AUSTIN ISD, EANES ISD, LAKE TRAVIS ISD/COMMUNITY IMPACT
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