Staff review of ADCAP finds limited awards and recommends clarifying guidelines, outreach and capacity building

Austin Housing policy staff presented findings from a program review of the Anti Displacement Community Acquisition Program (ADCAP) and recommended several changes to improve participation and outcomes.

Why it matters: ADCAP was created to provide rapid acquisition funding to nonprofit community development organizations to preserve housing and community‑oriented land near Project Connect corridors. The City allocated $8 million from Project Connect anti‑displacement funding for ADCAP; staff told the commission $3.6 million of that allocation has been awarded to date and $4.4 million remained at the time of the review.

What staff reported: Chase Bridal, a planner in the Housing Department policy and data analytics team, said ADCAP was created following community advocacy and City Council direction. The program offers zero‑interest loans (forgivable or nonforgivable at AHFC discretion) for property acquisition, is open on a rolling basis to 501(c)(3) nonprofit developers, and is limited to sites of 1 acre or less within a displacement‑risk census tract and within one mile of a Project Connect bus or rail line. ADCAP requires that at least half of units meet affordability thresholds (50% MFI for rental, 80% MFI for ownership) and sets affordability periods (40 years rental; 99 years ownership).

Staff summarized the review process: document review, stakeholder interviews with nonprofit applicants and awardees (including Austin Revitalization Authority and Guadalupe Neighborhood Development Corporation), legal and AHFC staff interviews, and benchmarking with similar programs in other cities. Findings included: low overall awareness of the program; inconsistent interpretation of eligibility and underwriting rules; relatively tight internal deadlines that hinder quick approvals; a small local nonprofit affordable‑housing developer ecosystem; and an administrative approval threshold ($250,000) that requires AHFC board (City Council) action and can slow timely acquisitions.

Recommendations presented to commissioners included clarifying program guidelines and eligibility, improving outreach and publicization (including integrating ADCAP into the Equitable Development Initiative training), adjusting application intake/timelines to better align with council schedules, increasing underwriting and loan document capacity in staff, and considering an amendment to AHFC’s procurement policy to raise the administrative approval threshold above $250,000. Staff also suggested exploring modest site‑size eligibility expansion for limited multifamily preservation opportunities, improved outcomes reporting, and possible limited expansion of applicant eligibility to graduates of the Equitable Development Initiative (EDI) training.

Commission discussion: Commissioners asked when ADCAP might reopen to applications; staff said leadership discussion was ongoing and staff expected a reopening during fiscal year 2026 if leadership accepts changes. Commissioners urged expanding access to smaller neighborhood groups and homeowner‑led efforts, and to use EDI training and other capacity‑building efforts to increase the number of nonprofit developers able to apply. Daphrittiti Jackman (community displacement prevention officer) told the commission staff want to “get more participants beyond ARA” and highlighted ongoing efforts (including a Community Land Trust accelerator) to expand nonprofit capacity.

Ending: Staff will present recommendations to leadership for decisions about reopening, guideline changes, and capacity investments. Commissioners encouraged staff to prioritize outreach and training for smaller community organizations so more groups can apply for acquisition funding in future rounds.