Let me begin by thanking several people:

• Mayor Leffingwell for your leadership on the dais in promoting the need for Housing-first Permanent Supportive Housing!
• Mayor Pro Tem Cole for your leadership in presenting an amendment to the Density Bonus supporting Housing-first Permanent Supportive Housing
• City Council members Morrison, Tovo, Martinez and Riley for voting in favor of the Density Bonus as amended to allow for the funds generated in Downtown Austin to be used for Housing-first Permanent Supportive Housing. (And I am sure i would be thanking Councilman Spellman as wee had he been on the dais to vote)
• Ann Howard, Ann Denton, Ed McHorse and the rest of my ECHO Board members for making Housing-first Permanent Supportive Housing a priority in our mission being fiercely committed to ending homelessness
• Charlie Betts, Bill Brice, Julie Fitch and the rest of my Downtown Austin Alliance Board members for taking the charge on making lemonade out of lemons pertaining to the Density Bonus
• The Planning Commission and Downtown Commission for supporting an amendment to the Density Bonus supporting Housing-first Permanent Supportive Housing

Last night, the Austin City Council passed the (so-called) Density Bonus allowing developers wishing to build residential units downtown the ability to apply for great FAR (Floor to Area ratio) than is currently allowable by paying a fee-in-lieu of $X per square foot to be spent on affordable housing, specifically amended to define affordable housing as Housing-first Permanent Supportive Housing.  This is a big deal in a city that is in need of 38,000+ affordable housing units and is the first step in housing the truly homeless, those categorized as chronically homeless.  These are the men, women, children, veterans and disabled individuals that are the most vulnerable and most need our help forced to sleep in our streets, parks, woodlands and ditches alike.

The fact is there is not enough money available to build the 38,000+ plus affordable homes needed and, until now, there has been no reason to build housing for the chronically homeless.  Simple market economics state that when there is a shortage of housing, or anything for that matter, the market will cater to the highest end of the need and the least risky investment.  In this case, affordable housing, a developer is going to build housing for the easiest to house, the wealthiest of the population and the lowest risk tenant.  This would be anyone other than those we most need to house.  So the simple economics haft left the chronically homeless out in the cold, literally.

It has been proven that the only way to get someone interested in building housing for the poorest of the poor, the hardest to serve and highest rick clients is to either be so overstocked with housing that anyone and everyone finds a place to live, or to force the issue by making that the free money for which developers can apply.  Our Council just did the latter last night and I applaud them for their wisdom, courage and action.

Marshall