Nonprofit spends $8M to convert hotel

into affordable housing

Austin Business Journal - August 18, 2006

by Jenny Robertson

ABJ Staff

A former Ramada Inn in South Austin -- once the site of discount business stays -- will now become more permanent, supportive housing for the working poor and homeless.

Under an $8 million plan by local nonprofit Foundation Communities, the Oak Inn on Ben White Boulevard will turn into affordable efficiency apartments. Walter Moreau, Foundation Communities' executive director, says such projects provide much-needed help in stemming Austin's affordable housing deficiency.

The nonprofit put the 20-year-old hotel under contract in January and is set to close on the property later this month. it will continue operating the site as a hotel until early next year, when renovation is slated to begin on what the group has dubbed "Skyline Terrace."

The seven-story inn will eventually host 100 affordable housing units, open to single adults who must comply with the group's zero tolerance drug and crime policy. Some of the units will receive rental subsidies, meaning they'll be rented at little or no cost, while the rest will lease for about $320 a month.

"The need for this kind of housing is substantial," Moreau says.

The hotel's top floors have sweeping views of downtown, Moreau says. A penthouse lounge will morph into a common area for residents. The group is adding kitchenettes to the rooms and turning the hotel's commercial kitchen into a communal cooking area.

Moreau says the project will also incorporate energy-efficient technology. He wants to replace carpet with a more durable, easier-to-clean material such as tile. He and others are considering whether to put solar panels on the south side of the roof. They are also exploring rainwater collection to help ease water woes.

Federal tax credits will funnel $4 million to the project -- about half its budget -- and the city of Austin has granted another $1.1 million. Moreau says the group has about $1 million left to raise. Part of the project's budget includes a $500,000 reserve for its operation.

Skyline Terrace marks the second hotel conversion for the nonprofit, which last year bought an extended-stay hotel at

I-35 and St. John's Avenue that is currently undergoing a renovation. The two hotels, combined with a renovated nursing home, make up Foundation Communities' three supportive housing.