Council asked to renew a land trust tax break for 39 East Austin lots meant for affordable homes

One of the quieter items on today's City Council agenda touches a housing tool that came up repeatedly in this fall's East Austin council races. Item 19 would recertify the Guadalupe Neighborhood Development Corporation as a community land trust and exempt 39 of its properties from city property taxes, according to the staff recommendation.

A community land trust keeps ownership of the land and sells or leases the homes on it, which keeps prices lower over time. Under the city's rules, people who later buy homes in the trust pay property taxes only on the house, not the land, the staff memo says. The exemption also lowers the nonprofit's costs while it builds.

What the item does

• Recertifies the trust. Organizations designated as land trusts "must re-apply annually," and staff found the corporation eligible again under city and state requirements, the memo says.
• Exempts 39 properties. The list of properties includes 28 lots on Father Joe Znotas Street, plus lots on Brass, Tillery, Willow, Waller, San Marcos, Porter and Vargas streets and Gardner Road. Most are listed as land only.
• Costs the city about $6,011. That is the estimated city tax that will not be collected, based on Travis Central Appraisal District values as of Sept. 14. Most lots carry a $10,000 market value and a $52 city tax estimate. The two largest are a parcel listed as Lot 1, Block C (GSNZ), valued at $510,000, and 900 Gardner Road, at $270,000.
• Covers only the city's share. The exemption applies to city property taxes only, the memo says. The corporation must give the appraisal district proof of the city's recertification by July 1 each year.

State law lets cities designate land trusts by ordinance. To qualify, an organization must be a charitable organization that owns land for leasing and selling housing on it, and does nothing other than housing and related work, the memo says.

What our records add

Last year's vote. On Aug. 28, 2025, the council designated the Austin Revitalization Authority and the Guadalupe Neighborhood Development Corporation as land trusts with the same kind of exemption. It passed on consent, 10-0, with one member absent. This year's item covers only the Guadalupe corporation. The staff memo does not say whether the Austin Revitalization Authority applied.

The longer history. The council created the land trust exemption in 2012, and the staff memo lists designations in 2016, 2017, 2018, 2022, 2023 and 2025.

Related tools. Council Member José Velásquez led 2025 resolutions to extend the city's first homestead preservation district and to create new ones. In November 2025 the council approved Homestead Preservation District B in southeast Austin, 11-0. Those districts let the city set aside some property tax growth for affordable housing.

Why it came up on the campaign trail. In District 1, Amber Goodwin supports community land trusts and homestead exemptions, KUT reported before the election, as we noted in our District 1 story. Misael Ramos has led the board of the Blackland Community Development Corporation, KUT reported. Both are in the Dec. 12 runoff.

What's next

Item 19 is on the consent agenda, so it can pass with other routine items in a single vote unless a member pulls it. Once approved, the ordinance takes effect on a date to be filled in, and the corporation sends proof to the appraisal district. If the council approves it, the corporation will have to apply again next year to keep the exemption.