District leaders celebrated the groundbreaking of the Anita Ferrales Coy redevelopment, which is located at the site of the former school on Gonzales Street.

AUSTIN, Texas — Austin ISD leaders kicked off construction on a new affordable housing project in East Austin.

On Friday, the district and developer NRP Group celebrated the groundbreaking of the Anita Ferrales Coy redevelopment in East Austin. The new development will be located at the former site of the school of the same name on Gonzales Street.

The site will soon become mixed-use housing for the Austin ISD community, and will be designed to help teachers and district staff find affordable housing within the city while also continuing to work within the district.

Leaders say the first phase of the project will open up more than 300 units. It is part of a larger two-phase plan to transform the 18-acre property into two apartment buildings.

“Everyday, our educators pour their hearts into our students, often commuting far from outside the city to do so,” Austin ISD Superintendent Matias Segura said at Friday’s groundbreaking. “They give so much to our community and it’s only right that we build them a space to live, providing a place to call home right here in the heart of Austin.”

“Preserving a historic school within the AISD community and turning it into homes for the very people who serve this city – our teachers, our bus drivers, our parents, our public works crews – this isn’t just policy, this is a promise kept,” Austin City Councilman José Velásquez said.

Half of the units will be for cost-burdened residents and Austin ISD staff, while the other 50% of units will be offered at market rates.

Leaders are hoping to have the first phase of the project completed by late 2027.

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