Austin Shifts Rental Assistance Funding to Eviction Settlements

City closes application portal, reallocates $1 million to prevent displacements

Mar. 27, 2026 at 3:38am

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The city of Austin has closed its rental assistance portal indefinitely, shifting $1 million in remaining funds to negotiated eviction settlements. The 'I Belong in Austin' program, which provided over $16 million in aid from 2021-2026, saw its budget reduced from $4 million to $3 million this year after a failed property tax increase. City officials say the change prioritizes the 'most immediate interventions' to keep residents in their homes.

Why it matters

The closure of the rental assistance portal reflects the ongoing challenges Austin faces in addressing housing insecurity and preventing displacement, especially as federal pandemic-era aid has dried up. While the negotiated settlements aim to intervene earlier in the eviction process, the shift in funding highlights the difficult tradeoffs cities must make when demand for aid outpaces available resources.

The details

The 'I Belong in Austin' program, run in partnership with the nonprofit El Buen Samaritano, previously allowed renters to apply for assistance through an online portal. However, the portal will now be closed indefinitely, with the remaining $1 million in funding reallocated to negotiated eviction settlements. City officials say this will allow them to 'prioritize the most immediate interventions' to keep residents housed, even if it means serving fewer people overall.

  • The rental assistance portal was originally scheduled to reopen on March 1, 2026.
  • The program provided over $16 million in aid from 2021 to 2026.
  • The program's budget was reduced from $4 million to $3 million in 2026 after a failed property tax increase ballot measure in November 2025.

The players

Zohaib 'Zo' Qadri

City council representative for District 9 in Austin.

Rosamaria Murillo

CEO of El Buen Samaritano, the city's partner in the rental assistance program.

Eric Lindholm

Part of the program staff overseeing the 'I Belong in Austin' initiative.

Jake Wegmann

Associate professor of architecture at the University of Texas.

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What they’re saying

“While emergency rental assistance has been a critical resource, demand has continued to outpace available funding. By focusing on eviction prevention through negotiated settlements, we are prioritizing the most immediate interventions that can keep people in their homes, intervene earlier in the eviction process, and prevent displacement before it happens.”

— Zohaib 'Zo' Qadri, City council representative

“If you don't have a negotiated settlement, once you're evicted … it's almost impossible to find a house. These negotiated settlements help people to pay the landlord whatever is negotiated and also allow folks to still be able to find a home to rent.”

— Rosamaria Murillo, CEO of El Buen Samaritano

“While both are important, the one where people go into the portal and apply for assistance is so needed because it stops the bleeding. It helps those families that for whatever reason. Maybe they lost their job, they had healthcare challenges or some unexpected expense came up, and then all of a sudden they fell behind (on) their rent.”

— Rosamaria Murillo, CEO of El Buen Samaritano

“Given the funding available, we prioritized the negotiated settlements and diversion strategies over direct rental assistance through the application process to stretch resources and prevent as many evictions as possible.”

— Eric Lindholm, Program staff overseeing 'I Belong in Austin'

“Even when this program was at its full size, it was relatively small compared to the scale of the problem of the need that's out there. That's just hard, right? What's the city supposed to do?”

— Jake Wegmann, Associate professor of architecture at UT

What’s next

The city will continue to monitor the impact of the shift in funding priorities and explore additional ways to support renters facing housing insecurity.

The takeaway

The closure of Austin's rental assistance portal highlights the difficult tradeoffs cities must make when demand for aid outpaces available resources. While the focus on eviction prevention through negotiated settlements aims to keep more residents housed, the shift in funding also underscores the ongoing challenges in addressing the scale of housing instability in the community.