UFCU Partners with Journeyman Group to Expand Affordable Housing Options in South Austin

AUSTIN – May 22, 2023 —University Federal Credit Union (UFCU), Austin’s largest locally based financial institution, announced today that it closed a financing deal with Journeyman Group to build the Matador, a 285-unit affordable multi-family project in South Austin.

The $49,000,000 syndicated construction loan is structured as a public-private partnership between Journeyman Group, Travis County Housing Finance Corporation (TCHFC), and seven credit unions led by UFCU. Under the terms of the agreement with TCHFC, a minimum of 50% of the units in the project will be offered to rent for families making an average 60% of the median family income. Completed units are expected to be ready for move-in by spring 2025.

The Matador is the second affordable housing community developed by Journeyman Group and financed by UFCU in the Austin area. The two entities previously built Park South, a 280-unit apartment complex in South Austin to be completed in summer 2024.

“As Austin continues to flourish and grow, housing still remains unattainable by too many working class families in our community,” said Chris Turnley, UFCU’s executive vice president of member experience. “At UFCU, we not only have a stated mission to advance opportunities for quality education, employment, and housing, we feel there is an obligation to continuously create opportunities that benefit our Members and the communities we serve.”

Sam Kumar, Chairman of the Journeyman Group commented, “although we are currently the largest developer in the Austin metro area mostly developing market rate luxury apartments, we are committed and devoted to bringing at least one affordable housing project per year to our community. We are very thankful to UFCU and their Partners who have been instrumental in bringing our 5th affordable project to our community. The Matador and Park South communities’ proximity to downtown, schools, and jobs, place these affordable units where they are most needed for our community’s workforce. We look forward to continuing to serve the needs of our working families by bringing many more affordable projects for years to come.”

Typically a sector dominated by commercial banks, multifamily development financing is seeing an increase of credit union participation. Today’s announcement is one of the largest known credit union-led financing deals led by a locally-based institution. UFCU typically finances one or two affordable housing projects a year and anticipates continuing to finance these types of projects as a way to support the credit union’s mission.

About UFCU
As a Member-owned, not-for-profit financial cooperative, UFCU is passionate about helping people and their Members improve their lives to create a financially healthy community. With more than 361,000 Members in Central Texas and Galveston County and total assets under management of $4.5 billion, UFCU offers a variety of products, services, and education programs to empower Members in achieving financial health.