A converted extended-stay hotel in Northwest Austin redeveloped as a deeply affordable housing complex is set to open next month.

Balcones Terrace at 10024 North Capital of Texas Highway is designed for permanent supportive housing for single adults exiting homelessness, as well as those with extremely low and fixed incomes, such as veterans and seniors.

Permanent supportive housing provides long-term leasing or rental assistance and supportive services for achieving stability.  Ninety percent of the units are reserved for households with incomes at or below 30 percent of the area median family income; 10 percent will be for households at or below 50 percent MFI. 

An extended-stay hotel was converted to create Balcones Terrace, which has 13 accessible units and six hearing and visually impaired units. Both buildings have an elevator. Residents will have access to various on-site services and amenities, including case management, a food pantry, a community room, a courtyard, a community kitchen, an exercise room, a computer lab, and a TV room.

The Austin Housing Department and Foundation Communities, joined by Mayor Kirk Watson, celebrated the expected September opening of Balcones Terrace with a ribbon-cutting ceremony Wednesday. Along with the Austin Housing Finance Corporation and the U.S. Department of Housing and Urban Development, they also marked the 50th anniversary of Community Development Block Grant funding from the Federal Housing and Urban Development. Balcones Terrace was partially funded with $8 million from the CDBG program.

Balcones Terrace is Foundation Community's 27th affordable housing community in Austin. It was funded by the Austin Housing Finance Corporation, Texas Department of Housing and Community Affairs, Federal Home Loan Bank of Dallas, and the Federal Home Loan Bank of New York, along with grants from the Disability Opportunity Fund and Housing Partnership Network. The project also received a services grant from the City of Austin's Homeless Strategy Office.

The Austin Housing Finance Corporation, which owns the complex, executed a 55-year lease agreement with Foundation Communities to remain the long‐term manager and service provider. The Housing Authority of the City of Austin awarded Balcones Terrace 50 project-based vouchers to serve those who have experienced chronic homelessness.