AUSTIN, Texas — Airbnb will provide $6.4 million to support Austin’s St. Johns redevelopment project in North Austin, making the city the first recipient of funding through the company’s new housing accelerator program.
The investment will help close a multimillion-dollar funding gap for the 19-acre mixed-use development, which will include more than 500 housing units, including affordable housing.
Council Member José “Chito” Vela said the funding will help move the project forward.
Airbnb launched its accelerator program Monday and committed $250 million nationwide to what the company calls “last-dollar financing,” which targets housing projects that need additional funding before construction can proceed.
Airbnb co-founder and CEO Brian Chesky said the program aims to address funding gaps affecting housing developments across the country.
“There’s about 750,000 homes or housing developments that are about to be built, but they need last-dollar funding,” Chesky said. “And if they got their last-dollar funding, then those 750,000 units would be built.”
Funding supports Austin housing goals
Austin has continued efforts to increase its housing supply and expand affordable housing.
The city set a goal in 2017 to build 135,000 new apartments over 10 years, with about half intended for families earning no more than $65,000 a year.
Vela said projects often face funding shortfalls that delay construction.
“In so many projects that we see out there, there is some kind of gap that is keeping the ground from breaking and keeping construction from starting,” Vela said. “So I think this kind of deal-closing fund for affordable housing is a phenomenal idea.”
Vela said Airbnb will not receive incentives or other city deals as part of its investment. Austin’s existing regulations for short-term rental operators will remain in place.
The city adopted stricter short-term rental rules last year.
Vela said the funding could also strengthen cooperation between Austin and private companies, affordable housing groups and philanthropic organizations.
“The city can’t do this on our own,” Vela said. “We need our business partners, our affordable housing partners and our philanthropic partners.”
Longtime St. Johns resident Thelma Williams said the redevelopment can create more housing options for young families.
“Because young people are really struggling to have affordable houses so that they can be all that they can be,” Williams said.
Construction on the St. Johns project started earlier this summer, with completion expected in 2028.
