New affordable housing complex rises on Sanger Avenue corner, emphasizing 'high-quality' lifestyle
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The Avanti Viking Hills development, at 6501 Sanger Avenue near Highway 6, has 69 of its 82 units set aside for households making 30% to 60% of the area median income. The developer says tenants will pay about $600 less than market rate, depending on several factors.
Rod Aydelotte photos, Tribune-Herald
Henry Flores remembers 1996, when he tried valiantly to find his parents an affordable place to live in Mercedes, near the Texas border with Mexico.
Three years later, he broadened his quest by creating what would become Madhouse Development, an Austin-based, family-operated entity that develops apartment communities affordable to working folks — entry-level police officers, H-E-B checkers, schoolteachers and nurses, for example.
His goal is creating nice places to live, with pools, granite countertops, grilling areas, fitness centers and cyber cafes, while saving residents hundreds of dollars a month in lease payments. A qualifying couple on Social Security would pay about $600 per month less than market rate, depending on income and state and federal guidelines that Madhouse Development follows, said Flores, speaking by phone about his new property in Waco.
Madhouse Development’s new Avanti Viking Hills has opened at 6501 Sanger Ave., where crews in 2023 leveled two aging professional office buildings to make room for it, confirmed Clint Peters, Waco’s development services director.
Flores said Austin-based Madhouse began to consider Waco for expansion about five years ago, judging it to be a growing city under stable leadership with robust demand for affordable housing. Early response to Avanti Viking Hills’ grand opening this month has proven that analysis valid, said Flores.
“We have eight residents, and will have 20 by the end of the week. More important, we have 596 people on the waiting list,” said Flores.
A press release issued earlier this month said the project represents a collaboration involving Madhouse Development, Texas Department of Housing and Community Affairs, H4 Development, RBC Community Investments LLC, Stellar Bank and the city of Waco.
The Waco City Council passed a resolution supporting the $23.8 million project in early 2020. The council supported the project’s application for the 9% Competitive Housing Tax Credit Program, a state-administered federal program which awards private investors incentives to develop affordable housing.
Houston-based Stellar Bank financed construction. H4 Development, which the Texas Secretary of State’s Office lists as a principal in six other Avanti Group projects, secured housing tax credits from the state needed to finance the project.
“Our vision was to create more than just housing; we aimed to build a thriving community where families can enjoy a high-quality affordable lifestyle, and we believe we achieved that,” said Avanti Group vice president Henry Flores IV in the press release. “Bringing Avanti Viking Hills to life required immense dedication from all our partners.”
Of the 82 units, 69 have been set aside for households making 30% to 60% of the area median income. Waco’s median household income stood at $51,468 in 2023, according to the United States Census Bureau.
Applying those percentages, as well as income variations, Flores said households leasing a one-bedroom unit would pay $437 to $937 monthly. A two-bedroom apartment would fetch $518 to $1,118 and three-bedroom occupants would shell out $591 to $1,285 each month.
Features include built-in microwaves, nine-foot ceilings, walk-in closets, wood-style vinyl flooring, pool views and energy-efficient appliances. And propertywide amenities include a laundry center, grilling and picnic area, pet washing station, club lounge, and fitness center. Residents have access to an elevator, 24-hour emergency maintenance, storage units, building security measures, and electronic payments, according to a fact sheet.
The developer of the Avanti Viking Hills development at 6501 Sanger Ave. says tenants will pay about $600 less than market rate, depending on several factors.
Rod Aydelotte, Tribune-Herald
Nathan Embry, an agent with Kelly Realtors, lists several properties near Avanti Viking Hills on the edge of the Parkdale Viking Hills neighborhood. Some are for sale, others offer lease space.
“I think it’s just timing,” said Embry, asked about the abundance of available property near the affordable housing complex. “I don’t think it’s a coordinated effort. It’s just timing of the market. I think their business model has changed, and they no longer need the real estate.”
He said no one has mentioned dissatisfaction with the new arrival.
“From the outside, it looks like a well-built project,” said Embry. “I’ve heard no complaints. Maybe it’s too soon.”
The Madhouse Development website says its principals have developed 5,400 units of affordable housing valued at more than $700 million. It says Affordable Housing Finance magazine listed Madhouse among its top 50 developers nationally in years 2014, 2015, 2016, 2019 and 2020.
Madhouse founder Henry Flores was named the first executive director of the Texas Department of Housing and Community Affairs by Gov. Ann Richards in 1991. President Bill Clinton appointed him chairman of the Federal Home Loan Bank, an appointment repeated by President George W. Bush.
The company rebranded in 2016, placing its affordable housing communities under the Avanti Communities umbrella. High-end luxury rental communities are developed under the Avanti Marquis brand. A division called Avanti Resident Services reflects efforts to improve quality of life within residences by offering financial education, wellness programs and tutoring.
