The Austin Housing Conservancy Fund, a local open-ended private equity investment fund that preserves affordable multifamily rental housing for moderate- and middle-income Austinites, announced today its future growth strategy amid broadening nationwide interest in social impact investments.

The announcement follows the 2018 acquisitions of three multifamily properties in Austin totaling 792 units that maintain affordable rental rates for about 1,200 workforce Austinites. The Fund aims to expand its geographic presence in Austin through the purchases of four additional properties in 2019, enabling the Fund to preserve about 2,000 multifamily housing units for roughly 2,500 moderate- and middle-income Austin professionals.

“2018 was an important year for the Austin Housing Conservancy Fund as we began to implement our first-to-market model of investing directly into moderate- and middle-income housing,” said David Steinwedell, CEO of Affordable Central Texas, the sponsor and investment manager of the Fund. “As housing demand in and around Austin increases, it’s critical that we keep rental growth proportionate to wage growth for our community’s educators, first responders, medical professionals and others who are at risk of being priced out of the city. The Fund meets that clear social need while also delivering solid financial returns to a broadening investor base that’s eager to tackle our community’s housing challenges.”

The Fund’s activity and growth similarly augment the City of Austin’s existing efforts to combat rising rental prices that threaten Austin workers and families across a range of income levels.

“The Austin Housing Conservancy is a groundbreaking example of our city’s ability to capitalize on its greatest strengths—innovation, community and a thriving private market—to tackle its greatest challenges,” Austin Mayor Steve Adler said. “This is a unique opportunity for the Austin community to invest in itself and continue to grow while also ensuring that every Austinite has an affordable place to call home.”

The Fund represents a growing alternative investment class for high-net-worth individuals, institutional investors, foundations and others seeking to maximize the social and environmental impact of their investments while also generating low-risk financial returns.

“Social impact investment is poised for a breakout year in 2019 as more and more investors of all types pour additional capital into these alternative investment vehicles,” Steinwedell said. “Experienced early entrants like the Austin Housing Conservancy Fund are in the best position to move rapidly and make the discretionary, flexible investments that deliver the financial, social and environmental returns that are impactful for investors and for communities around the country.”

To learn more about the Fund, visit www.austinhousingconservancy.com. To learn more about Affordable Central Texas, visit www.affordablectx.org.

To learn more about the City of Austin’s housing affordability initiatives, visit http://austintexas.gov/page/householdaffordability.

About the Austin Housing Conservancy Fund

The Austin Housing Conservancy Fund is an open-ended social impact private equity fund. The first of its kind to provide long-term moderate- and middle-income housing preservation, the Fund’s purpose is to purchase and preserve affordable multifamily rental housing for Austinites. Raised, funded and deployed in Austin, the Fund delivers risk-adjusted financial returns through flexible, discretionary investments that directly benefit Austin’s teachers, nurses, first responders and other core workers. For more information, visit www.austinhousingconservancy.com.

About Affordable Central Texas

Affordable Central Texas, a 501(c)(3) nonprofit, is the sponsor and investment manager of the Austin Housing Conservancy Fund. ACT was formed in 2016 by a group of highly experienced Austin real estate, finance and affordable housing professionals. ACT has been the recipient of several recent operating grants from the St. David’s Foundation, TEGNA and SynerMark Properties in addition to previous grants from the Michael and Susan Dell Foundation, Wells Fargo, Seton and IBC Bank, as well as contributions from numerous individuals. For more information, visit www.affordablectx.org.