Building the Pipeline

Affordable Housing Promotes Health and Economic Stability in Central Texas

Elizabeth Reyes grew up in the middle-class neighborhood of Northwest Hills in North Austin. From a young age, she showed a natural talent for the arts, singing opera, modeling, and creating art in all mediums. As a lifelong Austinite, Reyes never imagined she would find herself without a home in her 40s. Yet, after a series of setbacks, she spent three years living out of a tent, an experience she describes as the most difficult chapter in her life.

After a three-and-a-half-year wait, Reyes received life-changing news that a housing unit was available through the Blackland Community Development Corporation (BCDC), located off Chicon Street east of IH-35. Today, she shares a residence with her two beloved cats and cherishes the comfort, stability, and security of her own home - something she once thought was out of reach.

Once celebrated as one of the most affordable places to live, Austin is now one of the most expensive housing market in Texas. According to The New York Times, the median U.S. home in 2025 was $417,900, while Austin’s median home price reached $473,300 – more than 4.6 times the region’s median housing income of $102,800. This dramatic spike in housing costs has made stable housing unattainable for many, threatening the health and well-being of individuals, families and entire communities throughout Central Texas. 

The affordable housing challenge is not unique to Central Texas. Across the country, rising housing costs and limited supply have made safe, stable, and affordable housing increasingly out of reach for millions of Americans. Without a stable place to live, families face greater barriers to economic security, health, educational opportunity, and overall well-being. The urgency of this challenge has elevated affordable housing as a national priority, leading to significant bipartisan efforts to expand the nation's housing supply and preserve existing affordable homes. Yet policy changes alone are not enough. Affordable housing projects continue to face financing gaps, lengthy permitting processes, rising construction costs, and other barriers that can delay or derail development. At the same time, many existing affordable housing communities require strategic reinvestment to extend their useful life, improve resilience, and ensure residents have safe, healthy places to live.

Recognizing the barriers to affordable housing, both in pre-development and planning stages, St. David’s Foundation invested $8.4 million in 16 Central Texas organizations through the Housing + Health: Funding Opportunity for Planning and Predevelopment. “These organizations were chosen for their commitment to expanding Central Texas’s capacity to provide safe, healthy, and affordable housing options for low-to-moderate-income households across the region’s five counties,” said Tasha Banks, St. David’s Foundation Program Officer. “This funding opportunity underscored the Foundation’s commitment to advancing affordable housing as a platform for community health.”

“Housing is closely tied to health; it’s inextricably bound,” said Andy Bucknall, Executive Director of Blackland Community Development Corporation (BCDC). “It's important that we really look at the complexity of the issues, how everything goes together in a tapestry that becomes woven into a safety net for everybody, for the entire community.” 

In 1928, the City of Austin adopted a master plan that displaced people of color from their communities in West Austin, where they had lived for generations, to communities east of IH-35, where the Blackland community eventually formed. The Blackland Community Development Corporation was established in 1983, following an agreement with The University of Texas at Austin to halt expansion east of Leona Street. As the neighborhood continued to grow, affordability and gentrification became its biggest challenges. Today, BCDC serves about 70 residents across 51 housing units on 26 properties. To address the needs of musicians and artists, BCDC is developing the Austin Art Village, 10 smaller homes designed to foster creativity and community.

Bucknall explained that small nonprofits often struggle to secure pre-development loans because, without a plan, lenders have no assurance the money will be repaid. “The investment from St. David’s Foundation was pivotal for the Austin Art Village,” Bucknall said. “It allowed us to learn the development process, build our team, issue a request for proposals, and select a builder. Now, our site plan is under review and we’re ready to move forward.”

“Blackland has changed my life. The community is tight. Everyone is very sweet,” said resident Reyes. “My mental health has stabilized. People have been here for a long time. It feels like home. I am safe now. It’s a tremendous weight off my shoulders and I couldn’t have done it without my case manager at Blackland.” Reyes is currently working on a memoir about her life and has plans to pursue a college degree.

"Blackland has changed my life. The community is tight.
My mental health has stabilized. I am safe now."

Elizabeth Reyes | BCDC resident

Political and community support are vital for affordable housing, as they shape zoning laws, address neighborhood concerns, and unlock public funding. Local resistance to high-density developments remains a major hurdle, especially in the pre-development phase. To assess the broader impact of early investment, the Foundation partnered with csb philanthropic solutions to evaluate how flexible philanthropic funding strengthens the region’s affordable housing capacity. Through the Housing + Health initiative, the organizations funded leveraged more than $25 million in additional public and private funding—a 3-to-1 return on the original $8.4 million investment.

“Our greatest strength comes from coming together as a community. The best is yet to come when we honor our past, learn from it, and move forward, building on that history in a way that lifts everyone up,” said Bucknall. He said the investment from the Foundation paved the way for future funding because it shows lenders that BCDC has community support. 

These results show how collaboration and early investment can open doors to greater opportunities and speed up progress across Central Texas.

"Our greatest strength comes from coming together as a community. The best is yet to come when we honor our past, learn from it, and move forward, building on that history in a way that lifts everyone up"
Andy Bucknall | Executive Director of Blackland Community Development Corporation

Since 2020, the number of youth who experience homelessness in the Austin area has tripled from 247 to nearly 900. LifeWorks was formed in 1998 to address youth homelessness and serves people between the ages of 16 and 26, helping young people who are navigating homelessness and housing instability. 

Amid Central Texas’s affordability crisis and ongoing challenges in the child welfare system, LifeWorks is striving to expand its housing for youth. As one of the 16 grantees from the Housing + Health initiative, LifeWorks used the Foundation’s support to launch The Works at Tillery project, a new affordable housing complex for youth transitioning out of homelessness. “This was a pivotal investment in our early stages,” said Liz Schoenfeld, CEO of LifeWorks. “St. David’s Foundation really helped smooth our path forward. The grant covered critical pre-development costs, from legal fees to environmental reviews.”

Located in the heart of East Austin, The Works at Tillery will be LifeWorks’ third affordable housing development, providing 120 units offering easy access to Austin Community College and nearby grocery stores, removing transportation barriers. 

“Don’t be afraid to seek help.
I was struggling, but now
I feel safe and hopeful.”

Jeremiah
Client | LifeWorks

Jeremiah began receiving support from LifeWorks in January. Growing up in South Austin, he faced a difficult childhood and periods without stable housing. Now, receiving housing services through LifeWorks, he feels secure for the first time in years and next month, he plans to attend Austin Community College for his associate’s degree. “My social worker checks on me weekly. LifeWorks helped me with a college scholarship, food, and mental health resources,” Jeremiah said. “Don’t be afraid to seek help. I was struggling, but now I feel safe and hopeful.”

Construction for The Works at Tillery is expected to be completed in late 2027, with the first move-in beginning in early 2028. Reflecting the broader theme, Schoenfeld notes, “Housing in my mind is a form of health care. Simply having a roof over somebody’s head obviously helps protect you from the elements and helps you avoid health challenges. If you are spending a disproportionate amount of your income on rent or housing, that prevents you from being able to make the necessary investments in your health such as medication, doctor appointments, or high-quality food."

“Housing in my mind is a form of health care. Simply having a roof over somebody’s head obviously helps protect you from the elements and helps you avoid health challenges.
Liz Schoenfeld | CEO of LifeWorks

Tucked among the pecan trees of East Austin, the connection between housing and health is also evident in a longstanding community, the Guadalupe neighborhood of East Austin. A community in flux since the 1980s, East Austin is marked by rising home prices and a blend of local shops, restaurants, and music venues. In 1981, neighborhood advocates founded the Guadalupe Neighborhood Development Corporation (GNDC), which evolved to offer affordable housing and homeownership through a pioneering Community Land Trust for those with deep roots in the neighborhood.

GNDC operates two multifamily rental properties and manages single-family rental homes throughout the neighborhood. The organization provides 156 affordable rental units and has more than 30 homes in its Community Land Trust (CLT)-- the first of its kind in Texas -- which continues to grow. Launched in 2012, GNDC’s CLT model has become the cornerstone of their mission to preserve affordability and community ties.

“We really want to step in and be able to offer a place for folks to live so they can keep those community ties together,” said Rachel Stone, Executive Director of GNDC. “Folks can choose to move out of the neighborhood and not feel forced out because of rising costs.” Stone is the new Executive Director of GNDC.

Rachel Stone is the new executive director of GNDC.

Rachel Stone is the new executive director of GNDC.

A Community Land Trust (CLT) allows homeowners to buy their house while the non-profit retains ownership of the land, leasing it for a small fee. This model keeps homes affordable for generations. Cristina Guajardo experienced this firsthand when she was first connected with GNDC by living at the Jeremiah Program Austin, a supportive housing program for single mothers pursuing their secondary education. After graduating from college in 2021, when no longer eligible for the Jeremiah Program, Cristina sought to remain in the tight-knit East Austin community she called home. Guajardo was able to purchase a CLT house with GNDC and today, she is a proud homeowner, providing a safe and stable environment for her son to grow up in. She also became a staff member at GNDC, providing community management services.

“I planted my roots in this community, and it has completely changed our lives and trajectory. The statistics for single moms don’t look great, and I wanted to show people that we can make it and advocate for others,” said Guajardo. 

“I planted my roots in this
community, and it has completely
changed our lives and trajectory.”

Cristina Guajardo
Community Manager | GNDC

Receiving a grant from the Foundation has enabled GNDC to increase affordable housing for the very community that helped build Austin. Their latest initiative, the Pleasant Hill Collaborative, is a partnership with local organizations on East 11th Street to welcome back residents who have been displaced. The project is also a tribute to the arts and culture of the neighborhood’s historic African American community. Pleasant Hill will offer 98 affordable units, ranging from one to three bedrooms, and prioritize families with generational ties to the area.

“The grant from St. David’s Foundation has allowed us to pursue the design with the architect and really line up everything we need in order to get us shovel-ready for this project,” said Stone. Construction will begin a year from now. “There’s a lot of history and injustice in this neighborhood. GNDC’s mission is to help people stay in the place they’ve fought for, bringing stable housing and hope back to the community.”

Affordable housing is increasingly out of reach for Central Texans, pushing people farther from the city and into rural communities like Bastrop County. This area has seen rapid population growth as Austin residents seek relief from soaring costs. “Affordable housing in rural communities looks different than in urban areas,” said Amy Mills, Housing + Health Grant Coordinator for Bastrop County Public Health. “We’re seeing more renters than ever before in our rural county, which is new for us. Most residents were traditionally homeowners.” 

The Bastrop County Collective for Housing + Health was formed in 2025 in response to alarming data tracked by the Bastrop County Public Health Department. Despite an influx of higher-income newcomers, 45% of all households remain below the ALICE (Asset Limited, Income Constrained, Employed) survival threshold. 

Donna Nichols moved to Smithville, Texas in 1992, seeking affordable land for her horse farm. At that time, Bastrop County’s population hovered around 60,000–70,000. Over the past two decades, it has exploded to more than 120,000. Today, Nichols serves as Executive Director of the Bastrop County Public Health Department, which was established just four years ago.

Donna Nichols serves as Executive Director of the Bastrop County Public Health Department.

Donna Nichols serves as Executive Director of the Bastrop County Public Health Department.

“The cost burden puts a heavy strain on those barely able to afford rent, they’re forced to choose between food, childcare, or other essentials,” Nichols said. “Public health will have to support this growing population. If we can provide affordable housing, we improve everyone’s chance to live healthier, more stable lives.”

​“I’m a home-oriented person, I want to feel safe and comfortable in my home, and I want that for everyone. Imagine a county where everyone has that security. It would transform our community, making it safer and more welcoming for all.”
Amy Mills | Housing + Health Grant Coordinator for Bastrop County Public Health

With support from the Foundation, the Bastrop County Public Health Department spent a year speaking to residents across the county to understand how health and housing are connected. Instead of presenting a pre-made plan, they listened first, shaping a community-driven vision for the county’s future. “One big takeaway is that every community, and every stage of life, has different needs,” Mills said.

“As a new health department, we recognized that housing is a key social determinant of health,” Nichols said. “Early on, we identified core principles connecting housing and health and committed to learning together how best to address these challenges.”

The Texas Housing Foundation (THF) is a key partner in Bastrop County’s efforts. Their mission is to develop affordable housing with and for the local community. “This partnership has been phenomenal,” said Lucy Murphy, Housing Innovation Manager for THF. “We want this project built with full community input, their voices front and center every step of the way.” Affordable housing is a challenge everywhere, but rural areas face even greater resource gaps. The housing need has shifted, it now includes essential workers, nurses, teachers, as well as seniors and veterans, the very people who keep these communities running.

​“I’m a home-oriented person, I want to feel safe and comfortable in my home, and I want that for everyone,” Mills said. “Imagine a county where everyone has that security. It would transform our community, making it safer and more welcoming for all.”

Over the last two decades, the Foundation’s approach to housing has evolved, from viewing housing as outside its mission to recognizing it as a key driver of health outcomes and security. Housing might not be healthcare in the traditional sense, but without safe, stable, affordable housing, individual and community health interventions, however strong, rarely achieve lasting outcomes.

These personal stories and impactful efforts of grant partners across Central Texas underscore a simple truth: safe, stable, affordable housing is the foundation of thriving communities. St. David’s Foundation will continue to learn alongside our community and prioritize funding for housing efforts at all stages. Visit the Funding Opportunity page to learn more about upcoming funding opportunities.