On April 17th, the City of Austin proposed a new citywide density bonus program to incentivize affordable housing across the city.
In recent years, Austin has become a flagbearer for density bonus programs, offering several programs across the city, including the Downtown Density Bonus, Density Bonus 90, and the Equitable Transit-Oriented Development density bonus (DBETOD). These programs offer much needed density in exchange for additional affordable housing for the city.
In the wake of SB840 and external analysis released at the beginning of last year, the City of Austin is proposing a new Citywide Density Bonus Program (DBC). This program applies to all commercial and multi-family housing zones in the city of Austin. This builds upon SB840, which allowed multifamily housing to be built in areas zoned for commercial development.
For developments built to sell units, DBC requires 10% of the units to be affordable for people making 80% Median Family Income (MFI). The city is also allowing developers to pay a fee to the city to bypass this requirement, a practice called “fee-in-lieu”. These funds are sent to the City of Austin Housing Trust Fund, which distributes that money into other affordable housing developments.
On the other hand, if a development is building rental units, 10% of the units must be affordable for people living at 50% MFI without fee-in-lieu. This program ensures a meaningful level of affordability, striking at the core of the city’s, and the State’s, affordable housing crisis.
In exchange for these requirements, the city offers several non-combining tiers, 0’, 15’, 30’ 45’ and 60’ of additional height. In addition, all of these tiers include unlimited FAR, no minimum lot size, and no maximum density. Finally, in line with other density bonus programs, DBC would also adjust compatibility requirements. DBC would allow 90’ of height more than 25’ away from the property line of a triggering property, and the maximum density bonus height more than 50’ away.
As a part of the approval process, local residents are allowed to comment on the new developments and the scale of bonuses the city will allow.
This program has not yet been finalized, and the City of Austin is still looking for feedback. To submit feedback and to get more details about redevelopment, allowable use expansions, and mixed-use rules, visit https://www.speakupaustin.org/CitywideDB#tab-73128