Securing private financing for apartment projects in the current market can be a daunting task. However, one Austin developer has found a unique solution. LDG Development has successfully raised $50 million through tax-exempt bonds to fund the construction of Kingswood Apartments, a 328-unit complex located near Circuit of Americas.
According to reports from the Austin Business Journal, this financing will be issued by an agency within the city of Austin. The project is specifically designed to provide affordable housing options and will qualify for a 4% tax credit program that incentivizes investors who contribute funds.
Kingswood Apartments will reserve units for tenants with incomes at or below 60% of Travis County’s median family income (MFI). For reference, MFI for a family of four in Travis County is currently $122,300. Housing experts estimate that families with this income level can typically afford homes priced between $300,000 and $400,000. In contrast, 60% MFI equates to an annual income of $70
