FRONTIER BANK BACKS AUSTIN’S CORE WORKFORCE WITH $1 MILLION INVESTMENT
FRONTIER BANK BACKS AUSTIN’S CORE WORKFORCE WITH $1 MILLION INVESTMENT
Frontier Bank of Texas has taken a leadership role in helping stabilize housing expenses for moderate and middle-income families in the Austin area. The Central Texas community bank is investing $1 million in the Residency Support Fund of the Austin Housing Conservancy, a group at the forefront of addressing Austin’s workforce affordability crisis.
“We are fully committed to the Conservancy and what they are accomplishing for local families and individuals,” said Frontier CEO Patrick Johnson. “Without their support, we risk continuing to lose teachers, nurses, first responders and many more salaried professionals because the Austin housing market is pricing them out of an affordable place to live.”
Frontier Bank and those supporting the work of the Conservancy see the organization as a vital partner in keeping quality salaried professionals in the workforce. According to AHC, the annual income required to afford a two-bedroom apartment in Austin is estimated at $64,000. In comparison, an entry level educator earns about $51,000, a policeman and licensed professional nurse about $57,000 and a plumber approximately $57,000. As more and more affordable rental properties are removed from the landscape, the gap between income and living expenses grows wider and wider.
In an effort to preserve affordable housing options, the Austin Housing Conservancy invests in those fast-disappearing multifamily properties and offers them as rental options to moderate and middle-income families and individuals. It is a direct investment in workers who don’t have assistance programs that are now available to low income residents. Over time, the affordable rental rates increase proportionally with a growth in wages.
According to Frontier Chairman Kirk Watson, the bank’s investment in the Conservancy supports a long-term solution for affordable workforce housing. “We are facing a challenge that needs to be addressed for the long-haul,” said Watson. “If we don’t meet it head-on now, we will wind up like so many major metropolitan areas across the country that have priced core workers out of the city.”
To date, the Austin Housing Conservancy Fund has invested $123 million in four properties including The Preserve at Wells Branch, The Bridge at Northwest Hills, The Bridge at Terracina and Melrose Trail Apartments. In total, the properties make up 1,000 units and serve 1,500 Austin residents. Investment by partners such as Frontier Bank enables AHC to acquire more such properties before they become a part of the city’s history.
About Frontier Bank of Texas
Frontier Bank of Texas is an independent, community bank headquartered in Elgin, Texas. The bank has assets of $570 million and operates locations in Elgin, Bastrop, Manor, Austin, Leander, Buda and Round Rock. Chartered in 2007, Frontier Bank of Texas serves individual and business customers in Central Texas. Frontier Bank is owned by the local community and benefits from the support of more than 600 shareholders across Texas.
Details
November 12, 2021
Frontier Bank of Texas
Name: Evelyn Franco
Email: efranco@frontierbankoftexas.com