City staff outline rental‑assistance shortfall and IBIA program reach; call for follow-up data

Austin Housing briefed the Community Development Commission on July 21 about renter need and the city’s I Belong in Austin (IBIA) rental assistance program, presenting recent funding and participant data and answering commissioners’ questions about eligibility and funding sources.

Susan Watkins, division manager in the Displacement Prevention division, said city reports show a large affordability gap for renters under 60% of area median family income (MFI), with a shortfall “on the order of tens of thousands” of affordable units. She described recent reports (a consolidated plan and a June 24 memo from the city manager’s housing policy team citing Bay Consultants) that show a substantial gap between affordable rents and market rents at lower MFI bands.

Watkins and program manager Ursula Henderson provided program-level figures the city has reported to the CDC: roughly $11.6 million in 2024 served about 1,742 households; $6.2 million in 2025 served about 925 households; and in the first quarter of FY26 the city reported serving roughly 414 households with about $3 million — staff said FY26 totals are not finalized until the fiscal year closes on Sept. 30. Henderson said the majority of applicants and participants served in recent years are Hispanic and Black households and that 61% of applicants served are at 30% AMI or below.

Commissioners asked whether a reported drop in service to Latino renters could reflect outreach or portal changes; Henderson said the program shifted mid‑year and the online portal closed in May so the program moved to negotiated settlements (for households already in court) which likely affected raw application counts. Watkins traced the program’s funding path: a one‑time Budget Stabilization Reserve allocation in FY24, followed by a recurring Housing Trust Fund line in FY25 after federal COVID-era funding ran out.

On eligibility, Jill Smith and program staff clarified that households need to be behind on rent (owe rent) to get support but do not have to already be in eviction court or have a formal eviction notice; landlords accepting the payment will typically agree to refrain from eviction for a limited period.

What commissioners asked for next: follow‑up data from the vendor and updated IBIA final metrics in September, and outreach analysis to ensure groups at risk are being reached. Staff committed to follow up with the vendor and to provide final numbers once FY26 closes.

Quoted: “There’s an approximately 34,000 unit shortage,” Susan Watkins said, summarizing staff estimates of the local affordability gap. Ursula Henderson said, “About 61% of the applicants that we serve are at 30% or below,” describing IBIA program reach and concentration in the East IH‑35 corridor.