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C20-2024-010 REZONING, NEIGHBORHOOD PLAN, AND ORDINANCE AMENDMENT REVIEW SHEET Amendment: C20-2024-010 University Neighborhood Overlay (UNO) Update Description: Amend City Code Title 25 (Land Development) to repeal Article 3 Division 9 University Neighborhood Overlay District Requirements and to create Density Bonus University Neighborhood Overlay (-DBUNO) and rezone property generally located west of the University of Texas, east of Lamar Boulevard, south of 29th Street and north of Martin Luther King Jr. Boulevard to apply -DBUNO and amend the Central Austin Combined Neighborhood Plan, an element of the Imagine Austin Comprehensive Plan, to change the future land use map for the same property from multiple land use designations to High Density Mixed Use. Background: Initiated by City Council Resolution No. 20240418-077 and Resolution No. 2025-0130-057. The University Neighborhood Overlay, or UNO, was first adopted by Ordinance No. 040902-58 in 2004 to promote high-density, pedestrian-oriented redevelopment of the West Campus area that maintains the area's existing character and stimulates income- restricted affordable housing development. The overlay supersedes specific site development standards of the base zones and allows land uses to encourage development that serves the primarily student population of the area. This includes reduced required parking spaces, increased maximum allowable building height and bulk, and allowance for a mix of local, pedestrian-serving commercial uses. For a property to develop under UNO, additional requirements must be met, including providing affordable housing and adherence to stricter streetscape and design standards. These regulations were crafted through a robust community process involving residents and stakeholders. Since their original adoption, UNO regulations were amended in 2014 and 2019 through Ordinance No. 20140213-056 and Ordinance No. 20191114-067. The 2014 amendment allowed participating developments to rent by the bedroom and increased the affordability period from 15 to 40 years. Amendments in 2019 changed the second tier of maximum allowed building height available through the dedication of additional affordable housing units or bedrooms. These amendments demonstrate the commitment to updating UNO to address necessary changes that better serve students and the surrounding community. Since its adoption in 2004, the UNO overlay has facilitated the development of over 10,000 housing units or bedrooms and has led to the creation of 972 income-restricted bedrooms and 401 income-restricted units. In April 2024, the City Council adopted Resolution No. 20240418-077, which initiated amendments to the University Neighborhood Overlay (UNO). The Resolution included 29 distinct items for staff consideration, including amendments to the land development code, which are reflected in staff’s proposal. 1 C20-2024-010 In January 2025, the City Council adopted Resolution No. 2025-0130-057, which initiated a rezoning and neighborhood plan amendment to be completed simultaneously with the proposed code amendments. Summary of Proposed Code Amendment: The proposed code amendment will repeal existing Land Development Code Article 3 Division 9 University Neighborhood Overlay District Requirements and create a new density bonus combining district – Density Bonus University Neighborhood Overlay (DBUNO). The new combining district will replace the existing overlay and incorporate many of the elements of the existing regulations as well as the updates requested by City Council. The regulations are divided between regulations that apply throughout the district, referred to as General Requirements, and those that are unique to the three proposed subdistricts – Transit Core, Inner West Campus, and Outer West Campus. General Requirements Each of the three new subdistricts will contain general provisions applicable to participating developments. This includes requirements to meet certain provisions of City Code Chapter 4- 18 related to general density bonus requirements, generally applicable design guidelines for the area, and restrictions on allowed uses. Applicability The DBUNO combining district will contain an applicability map that defines the geographic area where properties will be eligible for the combining district. This includes the areas currently within the University Neighborhood Overlay as well as the proposed expansion areas. Properties within the proposed applicability area will be rezoned to the DBUNO combining district described further in the Summary of Proposed Rezoning section of this report. The development bonus and its additional requirements will apply to properties that elect to participate in the voluntary program. Development using a property’s base zoning regulations will not be impacted by the addition of the combining district. 2 C20-2024-010 Use Regulations The following lists delineate land uses that will be permitted, prohibited, or made conditional for properties within the DBUNO combining district if a land owner chooses to participate in the program. Definitions for each of these land uses is governed by the Land Development Code (LDC) and can be found in LDC 25-2, Subchapter A. Permitted Uses Residential Uses including Multifamily Residential and Group Residential, and Local Uses as defined below. Local Uses: Administrative and Business offices Art Gallery Art Workshop Business and Trade School Consumer Convenience Services Consumer Repair Services Counseling Services Custom Manufacturing Cultural Services Child Care and Adult Care (General, Limited) Financial Services Food Preparation, in conjunction with Food Sales General Restaurant or Limited Restaurant Accessory Use Food Sales General Retail Sales (Convenience or General) Guidance Services Indoor Sports and Recreation Medical Offices (under 5,000 square feet) Performance Venue Personal Improvement Services Personal services Pet Services Postal Facilities Printing and Publishing Services Professional Office Religious Assembly Restaurant (General or Limited) Theater A conditional use in the base zoning district that is approved by the land use commission Prohibited Uses: COMMERCIAL Automotive Sales Agricultural Sale and Services Automotive Rentals Automotive Repair Services Building Maintenance Services Campground Carriage Stable Convenience Storage Drop-off Recycling Collection Facility Electronic Prototype Assembly Electronic Testing Equipment Repair Services Equipment Sales Exterminating Services Funeral Services Marina Recreational Equipment Maintenance & Storage Recreational Equipment Sales Research Assembly Services Research Testing Services Research Warehousing Services Scrap and Salvage Service Station Stables Vehicle Storage INDUSTRIAL Basic Industry General Warehousing and Distribution Limited Warehousing and Distribution Recycling Center Resource Extraction AGRICULTURAL Animal Production Crop Production Horticulture Indoor Crop Production 3 Monument Retail Sales Off-Site Accessory Parking Pawn Shop Services Pedicab Storage and Dispatch Special Use Historic INDUSTRIAL Custom Manufacturing Light Manufacturing C20-2024-010 Conditional Uses: COMMERCIAL Alternative Financial Services Automotive Washing Bail Bond Services Commercial Blood Plasma Center Commercial Off-Street Parking Communications Services Construction Sales and Services Electric Vehicle Charging Kennels Additional Requirements for Certain Uses Local Uses • Limited to the first two stories of a development • May not include a drive-through facility Multifamily Residential • Dwelling Units o Ground floor dwelling units must be: ▪ Adaptable for use by a person with a disability; and ▪ Accessible by a person with a disability from on-site parking, pedestrian path, and common facilities o 10% must be accessible for a person with a mobility impairment o 2% must be accessible for a person with a hearing or visual disability 4 C20-2024-010 General Site Development and Design Standards General Development and Design Standards Exemptions Street Wall Site Access Streetscape Setbacks - Maximum floor-to-area ratio - Maximum building coverage - Landscaping requirements - Minimum site area - - Private common open space Impervious cover – defined by subdistrict 24’ minimum height 12’ step back required at a height of 65ft Occupant Space Areas intended for occupancy including rentable and common areas - excluding parking and mechanical areas 75% of net street frontage and 42% of Street Wall must contain Occupant Space Provides limitations on the curb cuts and access points to a property Pedestrian Zone dimensions prescribed by the Transportation Criteria Manual + UNO street tree and street furnishing requirements No minimum unless necessary to ensure adequate Fire Department access 10’ maximum street yard except for public plaza/private common open space Building Design UNO Design Standards 2-Star Rating under Austin Energy Green Building Screening Requirements for screening of trash receptacles and above-ground parking Parking Requirements Developments must comply with LDC 25-5-591, which institutes parking maximums and minimums for participating developments. Parking Maximums • The maximum off-street parking is 40% of the spaces formerly required by Appendix A. • The maximum can be increased to 60% provided that 50% of the parking is included in an underground parking structure. Bicycle Parking • Bicycle parking requirements are increased to a minimum of five spaces or 15% of the proposed vehicle parking spaces, whichever is greater. • For residential uses, the maximum long-term bicycle parking spaces required by the Transportation Criteria Manual must be provided. Redevelopment Requirements The proposal includes certain requirements when redeveloping multifamily or commercial property. The redevelopment requirements support the goals of the Equitable Transit- Oriented Development Policy Plan and the Austin Strategic Housing Blueprint by increasing the supply of affordable housing while preserving existing affordable housing and community spaces. A redevelopment of an existing multifamily residential structure must: • Replace all units that were affordable to a household earning 70% MFI or below 5 C20-2024-010 • Provide current tenants with notice and relocation benefits • Grant current tenants the right to return to a unit of comparable size following completion of the redevelopment • Allow current tenants to terminate a lease without penalty • Return security deposits to current tenants Qualifying non-residential structures are defined as: • Creative spaces (see § 25-2-654(F) for definition) operating for ≥ 3 years • Adult care services (general or limited) operating for ≥ 12 months • Child care services (general or limited) operating for ≥ 12 months • Cocktail lounges operating for ≥ 10 years • Food sales operating for ≥ 10 years w/ gross floor area of ≤ 20,000 sq ft • General retail sales operating for ≥ 10 years w/ a gross floor area of ≤ 5,000 sq ft • Personal services operating for ≥ 10 years w/ a gross floor area of ≤ 5,000 sq ft • Restaurant (general or limited) operating for ≥ 10 years w/ gross floor area of ≤ 5,000 sq ft A redevelopment of an existing qualifying non-residential structure must: • Provide current tenants with notice and relocation benefits • Grant current tenants the right to return to a unit of comparable size following completion of the redevelopment 6 C20-2024-010 Subdistrict Regulations The proposal includes three distinct subdistricts within the DBUNO combining district. The subdistricts are differentiated by their development standards, affordability requirements, and community benefit gatekeeper options. Site Development Regulations Site Development Regulations Height Bonus Transit Core Inner West Outer West 540’ (600’ Max) 360’ (420’ Max) 30’ (90’ Max) Impervious Cover 100% 100% 90% or Base Zoning Uses Residential, Local1, Hotel/Motel2 Residential, Local Residential, Local Parking Maximum 3 Stories 3 Stories 2 Stories Community Benefits3 Choice of 1 Choice of 1 Not Applicable Tower Spacing4 20’ Stepback at a Height of 120’ 20’ Stepback at a Height of 120’ Not Applicable 1 Local uses are defined under § 25-2-753 2 Hotel/Motel use permitted when permitted in the base zoning district and subject to affordability requirements. 3 Options include Pedestrian-Oriented Commercial, Grocery Store Use, On-site Water Reuse System, Green Roof, and - in the Transit Core - Transit-Supportive Infrastructure. 4 40ft step-back above 120ft in height from existing building of 120ft in height or greater; OR 20ft from a parcel with a maximum allowed building height greater than 120ft. If the lot frontage is under 100ft, then the maximum building coverage for portions of a building above 120ft is 65%. 7 C20-2024-010 Community Benefit Gatekeeper Requirements A development must provide one of the following: • Provide on-site water reuse system • Provide Transit Supportive Infrastructure approved by the Project Connect Office • Provide 75% of the ground floor frontage of the building as a pedestrian-oriented use meeting design standards prescribed by Subchapter E • Provide a grocery store (Food Sales) use of at least 8,000 sq. ft. Provide a green roof of at least 4,000 sq. ft. meeting the performance standards of the Environmental Criteria Manual Affordability Requirements Affordable housing set-aside requirements are defined by subdistrict. The table below outlines affordability requirements. ADDITIONAL HEIGHT BONUS +240’ (300’ Max) +300’ (600’ Max) +240’ (300’ Max) +120’ (420’ Max) TIER ONE TIER TWO Transit Core Bedroom: 20% at 50% MFI Unit: 10% at 50% MFI Inner West Bedroom: 20% at 50% MFI Unit: 10% at 50% MFI Bedroom: 20% at 50% MFI Unit: 10% at 50% MFI AND Bedroom: 10% at 50% MFI or Fee-in-Lieu Unit: 5% at 50% MFI Bedroom: 20% at 50% MFI Unit: 10% at 50% MFI AND Bedroom: 10% at 50% MFI or Fee-in-Lieu Unit: 5% at 50% MFI +30’ (90’ Max) Bedroom: 20% at 50% MFI Unit: 10% at 50% MFI Outer West 8 C20-2024-010 Summary of Neighborhood Plan Amendment: The proposed neighborhood plan amendment will amend the future land use map (FLUM) of the Central Austin Combined Neighborhood Plan. The neighborhood plan amendment will designate all properties within the DBUNO applicability area as High-Density Mixed Use. This land use designation supports a mix of uses including residential and commercial uses with floor-to-area ratios (FAR) in excess of 3:1. A table of the proposed updates to the future land use map is provided in Attachment A. High Density Mixed Use Summary of Proposed Rezoning: The proposed rezoning will apply the proposed Density Bonus University Neighborhood Overlay (-DBUNO) combining district to the properties shown in Exhibit A. Properties within the -DBUNO combining district will be eligible to participate in the voluntary density bonus program. Development using a property’s base zone standards will not be impacted by the addition of the -DBUNO combining district. The -DBUNO combining district will be applied in addition to any existing district or overlays that may already apply to a property. A table of the proposed rezoning is provided in Attachment B. Staff Recommendation: Recommended Overview Staff recommends the creation of the proposed Density Bonus University Neighborhood Overlay combining district, the amendment to the Central Austin Combined neighborhood plan, and the rezoning of properties into the new combining district. These changes aim to align development regulations with the goals identified in City Council’s April 2024 Resolution. 9 C20-2024-010 Expansion Area Staff recommends the proposed program boundaries based on an analysis of parcels adjacent to the existing boundaries for their proximity to campus and transit options and their existing land use and zoning. Further, the 2012 Imagine Austin Comprehensive Plan designated the area as part of the Downtown Activity Center, which aligns with the development regulations proposed for the area. Over time, staff estimates that the expansion areas could increase the housing capacity of the district by over 2,000 units. Subdistricts – Boundaries and Height Limits Staff recommends the creation of the Transit Core subdistrict and the expansion of the Inner West subdistrict. These districts are characterized by their allowance for high-rise development and increased residential density. The proposed subdistricts allow for increased development adjacent to the planned light rail line and closest to the University of Texas campus. Achievable height limits allow for increased housing unit capacity in line with the population targets for the district and City Council direction. Staff recommends the height limit of up to 90ft for developments within the Outer West subdistrict. Analysis of building permit data of UNO participating properties shows mid-rise development (under 90ft in height) as the prevailing typology, with 32 such examples. In fact, within the Outer West subdistrict, no property has developed beyond eight stories despite having the allowance for additional height. Further, stakeholder and community engagement indicated a desire for more mid-rise development, especially in closer proximity to the district boundaries. Additionally, over 50% of survey respondents emphasized that establishing a transition to surrounding neighborhoods was very important to them. Subdistricts – Development Standards Staff recommends the proposed site development standards of the district, which support goals and implementation strategies of the Equitable Transit-Oriented Development Policy Plan through the development of pedestrian-oriented uses and transit-supportive densities. Further, staff recommends instituting maximum parking allowances to reduce auto-oriented development and uses. Analysis indicates recent developments have provided less than 60% of the required parking spaces, and stakeholders noted that even lower parking ratios are anticipated in planned developments. Limiting off-street parking supports the transit system and enhances land use efficiency. Subdistricts - Community Benefits and Affordability Staff recommends adopting a menu of community benefit options to address Council direction. The approach will encourage creative and original design that accommodates different site conditions. Together, these options will create a complete community with incentives for developments to provide for daily needs of the community such as grocery stores and retail spaces along with infrastructure improvements such as on-site water reuse systems and green roof elements to mitigate development impacts. Staff supports deeper affordability requirements, reducing the threshold to 50% MFI to enhance housing access for eligible students and residents. Stakeholder input indicates that rental rates at 60% MFI remain unaffordable for many eligible students. Staff has contracted 10 C20-2024-010 with Economic & Planning Systems (EPS) to calibrate the affordable housing set-asides to ensure that the requirements maximize amount of affordable housing in absolute terms and provide for community benefits within the district. Staff supports the findings by EPS, which indicate the proposed set-asides will continue to incentivize participation in the density bonus program. Further, adjustments to the fee-in-lieu requirements will create additional funds for the provision of more affordable housing through the University Neighborhood Housing Trust Fund. Partnerships with non-profit organizations, religious institutions, and cooperative housing providers active within the UNO area could further expand deeply affordable housing beyond what private development incentives can achieve. Lease and Redevelopment Requirements Staff supports the protection of tenants in existing multifamily developments by including requirements for the redevelopment of existing residential units and requirements for tenant notification and relocation benefits. These provisions align with recommendations from a comprehensive analysis of density bonus programs and are consistent with the ETOD density bonus program’s tenant protections. General Recommendations Staff recommends Council consider initiating citywide amendments to the International Building Code as desired to change the regulations relating to windowless bedrooms. The applicable IBC requirements are based on occupancy type, not zoning designation or density bonus participation. Development under the UNO program will primarily be classified as the R2 occupancy type. Staff recommends modifications to the building code, as desired by Council, to achieve the goals of the Resolution. See Attachment C for additional information and analysis on the recommended code amendment. Board and Commission Action: March 19, 2025 – To be considered by the Codes and Ordinances Joint Committee April 22, 2025 – To be considered by the Planning Commission Council Action: May 8, 2025 – To be considered by City Council Sponsor Department: Planning Department City Staff: Paul Ray Books, Planner Senior, Planning Department, Paul.Books@austintexas.gov, (512) 974-3173 11 C20-2024-010 Attachment A: Applicability of Neighborhood Plan Amendment The proposed neighborhood plan amendment would update the future land use (FLUM) designation to align with development entitlements available through the proposed DBUNO density bonus program. High Density Mixed Use designation is intended for areas where a mix of residential and non-residential uses with floor-to-area ratios of 3.0 or higher is appropriate. The proposed update to the future land use designation is shown in Exhibit C. From (Existing Future Land Use) Mixed Use Multi-Family Mixed Use/Office Office Civic High Density Mixed Use; Mixed Use Mixed Use; Multi-family; Commercial To (Future Land Use Under the Proposal) High Density Mixed Use High Density Mixed Use High Density Mixed Use High Density Mixed Use High Density Mixed Use High Density Mixed Use High Density Mixed Use 12 Exhibit A C20-2024-010 Future Land Use Map Request: From: Multiple To: High Density Mixed Use 13 C20-2024-010 Attachment B: Applicability of Proposed Rezoning to DBUNO The proposed rezoning would apply the DBUNO combining district to properties shown in Exhibit B. Properties would be assigned a subdistrict based on the map shown in Exhibit C. The DBUNO combining district will apply in addition to any combining districts or overlays that may already apply to the property and may modify certain regulations of each applicable combining district or overlay. From (Existing Zoning) CS-1-CO-NP CS-1-MU-H-NP CS-1-NP CS-CO-ETOD- DBETOD-NP CS-CO-NP CS-H-CO-ETOD- DBETOD-NP CS-MU-CO-NP CS-MU-H-NP CS-MU-NP CS-MU-NP/MF-6- CO-NP CS-NCCD-ETOD- DBETOD-NP CS-NP CS-V-NCCD-ETOD- DBETOD-NP GO-CO-ETOD- DBETOD-NP GO-CO-NP GO-H-CO-NP GO-H-NP GO-MU GO-MU-CO-ETOD- DBETOD-NP GO-MU-CO-NP GO-MU-H-CO-NP GO-MU-H-NP GO-MU-NP GO-MU-V-CO-NP GO-NP GR-CO-NP GR-H-CO-NP GR-MU-CO-NP GR-MU-H-CO-NP To (Zoning Under the Proposal) CS-1-CO-DBUNO-NP CS-1-MU-H-DBUNO-NP CS-1-DBUNO-NP CS-CO-ETOD- DBETOD-DBUNO-NP CS-CO-DBUNO-NP CS-H-CO-ETOD- DBETOD-DBUNO-NP CS-MU-CO-DBUNO-NP CS-MU-H-DBUNO-NP CS-MU-DBUNO-NP CS-MU-NP/MF-6-CO- DBUNO-NP CS-NCCD-ETOD- DBETOD-DBUNO-NP CS-DBUNO-NP CS-V-NCCD-ETOD- DBETOD-DBUNO-NP GO-CO-ETOD- DBETOD-DBUNO-NP GO-CO-DBUNO-NP GO-H-CO-DBUNO-NP GO-H-DBUNO-NP GO-MU-DBUNO GO-MU-CO-ETOD- DBETOD-DBUNO-NP GO-MU-CO-DBUNO-NP GO-MU-H-CO-DBUNO- NP GO-MU-H-DBUNO-NP GO-MU-DBUNO-NP GO-MU-V-CO-DBUNO- NP GO-DBUNO-NP GR-CO-DBUNO-NP GR-H-CO-DBUNO-NP GR-MU-CO-DBUNO-NP GR-MU-H-CO-DBUNO- NP From (Existing Zoning) GR-MU-NP GR-MU-V-DB90-NP GR-MU-V-DB90- To (Zoning Under the Proposal) GR-MU-DBUNO-NP GR-NP LO-H-ETOD- DBETOD-NP LO-H-NP LO-MU-H-CO-NP LO-NP LR-H-CO-ETOD- DBETOD-NP LR-NP LR -NP MF-2-ETOD- DBETOD-NP MF-3-ETOD- DBETOD-NP MF-4-CO-ETOD- DBETOD-NP MF-4-CO-NP MF-4-ETOD- DBETOD-NP MF-4-H-CO-NP MF-4-H-NP MF-4-NP MF-5-CO-NP MF-5-ETOD- DBETOD-NP MF-5-NCCD-ETOD- DBETOD-NP MF-5-NP MF-6-CO-ETOD- DBETOD-NP MF-6-CO-NP MF-6-NCCD-ETOD- DBETOD-NP NO-NCCD-ETOD- DBETOD-NP NO-NP P DBUNO-NP GR-DBUNO-NP LO-H-ETOD-DBETOD- DBUNO-NP LO-H-DBUNO-NP LO-MU-H-CO-DBUNO- NP LO-DBUNO-NP LR-H-CO-ETOD- DBETOD-DBUNO-NP LR-DBUNO-NP LR -DBUNO-NP MF-2-ETOD-DBETOD- DBUNO-NP MF-3-ETOD-DBETOD- DBUNO-NP MF-4-CO-ETOD- DBETOD-DBUNO-NP MF-4-CO-DBUNO-NP MF-4-ETOD-DBETOD- DBUNO-NP MF-4-H-CO-DBUNO-NP MF-4-H-DBUNO-NP MF-4-DBUNO-NP MF-5-CO-DBUNO-NP MF-5-ETOD-DBETOD- DBUNO-NP MF-5-NCCD-ETOD- DBETOD-DBUNO-NP MF-5-DBUNO-NP MF-6-CO-ETOD- DBETOD-DBUNO-NP MF-6-CO-DBUNO-NP MF-6-NCCD-ETOD- DBETOD-DBUNO-NP NO-NCCD-ETOD- DBETOD-DBUNO-NP NO-DBUNO-NP P-DBUNO 14 C20-2024-010 Exhibit B 15 C20-2024-010 Exhibit C 16 C20-2024-010 Attachment C: Additional Information and Analysis University Neighborhood Overlay Housing Capacity Analysis Results and Methodology Staff conducted a quantitative analysis to estimate the potential change in housing unit capacity due to the proposed modifications to University Neighborhood Overlay (UNO). The objective of the analysis was to understand how the proposed changes may impact the potential housing unit capacity and how that related to the program goals and population targets. A housing unit capacity analysis is a projection of how many housing units could be built in a community if expected properties were to develop or redevelop to the maximum extent possible under zoning regulations. To estimate the impacts on housing unit capacity, staff calculated the potential housing unit yield using the existing entitlements of the University Neighborhood Overlay and compared it with the potential housing unit yield using the proposed entitlements offered in the revised density bonus programs. Staff utilized ArcGIS Urban, a geographic information system software suite designed to provide scenario-based modeling of changes to zoning regulations and resulting development patterns, to conduct the housing unit capacity analysis. Population Targets UNO is a density bonus program with the primary goal of providing housing for nearby universities and colleges, notably the University of Texas at Austin. In addition to the UT campus, the Rio Grande Campus of Austin Community College is also located nearby. UT Austin Enrollment ACC Rio Grande Enrollment Student Subtotal Current On-Campus Population Off-Campus Housing Need Count 53,082 1,345 54,427 8,896 45,531 Source: University of Texas at Austin, Austin Community College. Staff researched best practices for housing unit capacity analyses to establish a benchmark for evaluating the capacity under the proposal. According to California’s Housing Element Law, local governments must plan for zoning capacity that exceeds the Regional Housing Needs Allocation (RHNA) to ensure sufficient room for housing development. A best practice is to include a buffer of 15-30% above the RHNA target.1 This buffer addresses potential limitations in housing production, such as property owners choosing not to develop their land, developers building fewer units than permitted by zoning, or site constraints and market conditions limiting development potential. The buffer helps ensure a planning area can meet its housing targets even if some sites are not built to their maximum capacity. Utilizing this approach for the capacity analysis for the proposed 1 Source: Association of Bay Area Governments, (https://abag.ca.gov/sites/default/files/documents/2021- 10/RHNA_Buffer_Document_Final.pdf) 17 C20-2024-010 modifications to UNO allows for flexibility and ensures that, despite uncertainties, the district can meet its housing goals and support sustainable population growth. Currently, 90% of the population within the UNO area is enrolled in college or graduate school with 10% of the population not classified as a student. The college or graduate school residents are likely to be temporary residents (living in the UNO boundary only during the school year) and the people not classified as students are likely full-time residents. Area residents and businesses expressed interest in seeing a larger proportion of full-time residents within the neighborhood. Additionally, students expressed interest in more businesses, including retail and grocery stores, within the area to serve their daily needs. These businesses require a sufficient full-time resident customer base to be sustainable. To provide this customer base while still meeting the housing needs of the student population, staff set a goal for the district to move closer to having 70% of the population be students and 30% be non-students. Staff adjusted the population target to account for this goal. 45,531 Student Off-Campus Housing Need + 30% Non-Student Population = 65,044 Housing Capacity Target Current Population and Assumptions Staff collaborated with the City Demographer to analyze the existing population within the UNO boundaries, establishing a foundation for projecting future population growth. Rather than using the most recent census data as a baseline, staff leveraged the Demographic team’s 2023 housing unit verification analysis (an analysis identifying the most likely number of units based on a review of multiple internal and external data sources, including City of Austin permitting data, appraisal district data, and Census Bureau data) and added new units developed in 2024 based on internal data sources. Tenure-specific occupancy rates and average household size were then applied to the units to derive the estimate of the population in households. The 2020 Census group quarters population was then added to the population in households to derive the total current population in the area. See below for the data inputs used in the methodology. Estimated Total Units Times: Rental Unit Occupancy Rate Total Occupied Units Times: Avg Household Size Total Population in households Plus: Group quarters population Projected 2024 Population Count 13,706 94.5% 12,952 2.01 26,034 2,428 28,462 Source: 2023 Housing Verification Analysis, Demographics & Data Division; City of Austin permit data, U.S. Census Bureau, American Community Survey, 1-Year 2023 Estimates; 2020 Decennial Census. Staff aimed to provide a realistic projection of redevelopment within the UNO area, which has experienced significant growth over the past 20 years, leaving few remaining development sites. To estimate the remaining housing capacity, staff identified potential redevelopment sites based on criteria designed to reflect their likelihood of redevelopment. Parcels were selected where the appraised land value exceeded the improvement value (the value of buildings) according to appraisal district data. From this list, staff excluded properties under ¼ acre, those owned by the University of Texas, designated historic landmarks, or those with an approved site development application. The remaining parcels were identified as potential development sites, where existing and proposed 18 C20-2024-010 regulations would be modeled to determine housing capacity that could result from their redevelopment. Additionally, staff examined the current use of the remaining properties to assess their likelihood of redevelopment. UNO has a diverse set of landowners, including Panhellenic organizations, religious institutions, and other nonprofit or institutional owners. Given the difficulty in predicting whether these entities will redevelop or utilize a proposed density bonus, staff chose to run two scenarios: one including these properties and one excluding them. Based on historical participation in the UNO density bonus program, five properties currently used as Group Quarters and two previously used as Meeting and Assembly have participated in the program. This analysis provided a range of redevelopment projections to better account for the uncertainty surrounding these unique landowners. Staff utilized general assumptions throughout the analysis of the existing and proposed regulations. Staff assumed occupancy percentages, household size, and group quarters populations would remain consistent with those identified in the current population analysis. Utilizing appraisal district data, staff determined the average unit size in gross square feet, 908 sq.ft., which was used to determine the number of new units created through redevelopment. Additionally, staff used appraisal district data to determine the percent of built space used for commercial purposes, 4%, and that used for residential units, 96%, of properties that had participated in the UNO density bonus program. This allocation would be applied to the building square footage created through redevelopment. Existing Regulations Analysis Staff created a model of the current University Neighborhood Overlay regulations to simulate future development within the area using the maximum heights allowed under the current density bonus program. Staff modeled prototypical buildings to simulate the built form seen through the density bonus program. Staff studied historical site plan data to determine the parking ratio in developments through the UNO program. The prototypical buildings were designed to resemble this observed parking ratio – 1.09 parking spots per unit – allocating the remainder of the built space to residential or commercial uses based on the assumption above. The prototypical buildings were applied to each development site at the maximum allowed building height and density allowed under the current regulations. This assumed development under the second tier of the density bonus program, which allows developments within the Inner West subdistrict an additional 125ft in height and developments in the Outer West and Guadalupe subdistricts on parcels with a maximum height of 50ft or greater an additional 25ft in height. This amended second tier allowance was incorporated into the program during updates made in 2019. Under both development scenarios, including and excluding group quarters and churches, staff found that the current regulations do not meet the capacity targets identified. The existing regulations would allow for an estimated capacity of 26,268 housing units if all identified development sites were to utilize the maximum entitlements within the program with an estimated total population of 56,006 – 14% below the identified target population of 65,044. Under the existing regulations, an estimated 5,253 affordable units would be created. Housing Units Excluding Churches and Group Quarters 17,540 All Development Sites 26,268 19 C20-2024-010 Estimated Population Buffer over Capacity Target 39,425 -39% 56,006 -14% This finding supports the need for additional housing capacity to support the University Neighborhood and expressed community goals. Proposed Regulations Analysis Analysis of the proposed regulations was an iterative process with changes to meet the capacity targets and community desires based on information gathered throughout the stakeholder engagement process. Staff created a model of the proposed regulations to simulate future potential development within the area. The UNO height allowances currently override the underlying base zoning district regulations; however, because of the way the density bonus program is applied to each property, the height is offered as an increase from the base zoning district’s current height. Currently, base heights range from 40ft to 60ft. The proposed subdistricts provide varied height allowances that cater to different types of development. The Transit Core and Inner West subdistricts offer significant opportunities for high-rise residential development, enabling taller structures that accommodate a larger number of residents and promote urban density. This approach aligns with transit-oriented development goals, encouraging more people to live in close proximity to public transportation. In contrast, the Outer West subdistrict is designed for mid-rise residential development, allowing for an increase of 30 feet while ensuring a smooth transition to nearby lower-density uses. Through mid-rise development, this area maintains a balance between increased density and the existing neighborhood character. This strategic approach supports a cohesive urban environment that promotes diverse housing options while respecting the surrounding community's scale and context. 20 C20-2024-010 Staff modeled prototypical buildings to reflect the proposed modifications, including adjustments to parking allowances and tower massing. The regulations and models were altered to understand the impact of different policy changes on housing capacity within the overlay area, providing insights into how the proposed height increases and modified parking requirements could influence development patterns and housing availability. If all identified development sites were to utilize the maximum entitlements, staff found that the proposed regulations create sufficient additional capacity, with a 28% buffer over the population target. The capacity enabled through the proposed regulations would provide the opportunity for more students and other residents to live within the West Campus area. Under this scenario, an estimated 2,375 affordable units or 9,550 affordable bedrooms would be provided. All Development Sites Housing Units Estimated Population Buffer over Capacity Target Excluding Churches and Group Quarters 25,207 53,834 -17% 40,493 83,026 28% The findings of this analysis indicate that the proposed regulations are sufficient to accommodate future growth of the population of the area in response to increased demand for housing. 21 C20-2024-010 University Neighborhood Overlay Existing Program Analysis Staff and consultants studied the participation in the University Neighborhood Overlay (UNO) program, including participation rates and components of building design including height, parking ratio, and prevalence of windowless bedrooms. The findings from this analysis are described below and were used to inform modifications to the program requirements and incentives. Density Bonus Participation Staff, alongside their consultants, analyzed the participation rate and units created through the UNO density bonus program. Due to the significant shift in program requirements in 2014, the participation metrics are broken down between pre- and post-2014. Pre-2014 The first iteration of UNO prior to the changes in 2014 included a total of 20 development projects. Data indicates that 17 of those projects have affordability periods that have already expired. The program originally contained a 15-year affordability period, which, in 2014, was extended to 40 years. This has led to the loss of 171 income-restricted units as affordability periods expire, with the remaining 256 units set to expire by 2030 or earlier. Count Bldg Sq. Ft. Affordable Units Total Units Total Fee-In-Lieu Active 20 3,492,616 256 2,227 $745,147 Affordability Expired 17 -* 171 1,466 $643,162 Total 37 3,492,616 427 3,693 $1,388,309 Source: City of Austin, Affordable Housing Inventory. *Building square footage is not available for buildings no longer in the Affordable Housing Inventory Data. There was a high participation rate among projects eligible to participate in the pre-2014 UNO density bonus program. Of the projects eligible to participate, 82% did so – making up 84% of the building square footage and 86% of the residential units built during this time period. Pre-2014 UNO Projects as % of Total Development Count Bldg Sq. Ft. Total Units 82.22% 83.63% 86.29% Source: City of Austin, Affordable Housing Inventory, Land Database. 22 C20-2024-010 Post-2014 Following the changes to the program requirements in 2014, a total of 37 projects have participated in the density bonus program. The 37 projects include a mixture of developments that report their affordable housing requirements by the unit and by the bedroom. Count Bldg Sq. Ft. Developments Reporting by the Unit Affordable Units Total Units Developments Reporting by the Bedroom Affordable Units Total Units Total Fee-In-Lieu Active 3,600,986 Certified Under Construction 4 -* 4 -* Total 3,600,986 29 12 145 1,203 17 940 2,357 4 172 847 0 0 0 37 19 527 3,145 18 1,140 2,661 3 210 1,095 1 200 304 $402,909 $102,238 $3,920,156 Source: City of Austin, Affordable Housing Inventory *Building Square Footage is not available for buildings that have not been completed The post-2014 UNO projects have achieved high participation rates among redeveloping properties eligible to participate in the bonus program. Specifically, 93.55% of redeveloping properties with the opportunity to participate have done so. These projects contribute 96.67% of the total building square footage and represent 99.58% of total units available in this period. This high participation underscores the effectiveness of the UNO program in engaging properties for development, maximizing both housing capacity and the creation of affordable units in the overlay area. $4,425,302 Count Bldg Sq. Ft. Total Units Built post-2014 UNO Projects as % of Total Development 93.55% 96.67% 99.58% Source: City of Austin, Affordable Housing Inventory, Land Database. Land Area Since 2004, when UNO was adopted, there has been significant redevelopment of the West Campus area, leaving fewer remaining parcels for redevelopment through an updated density bonus program. Further, the average lot size of parcels developed since 2004 is almost 150% larger than the average size of the remaining parcels. This indicates that the remaining parcels may be more difficult to develop and yield fewer units than the parcels developed through the UNO program thus far. 23 C20-2024-010 Pre-2014 UNO Post-2014 UNO Built Since 2004 (Non- Participants) Acres 33.22 19.54 5.48 Percent Source: City of Austin, Affordable Housing Inventory, Land Database. 20% 12% 3% Developed Sub Total Remaining Area Total Area 58.24 35% 107.71 165.95 65% 100% Of the remaining 107.71 acres, almost a quarter (26.69 acres) are currently used as churches or group quarters. Data on program participation indicates that these uses are less likely to redevelop through the density bonus program. This suggests that much of the development that was likely to occur in the boundaries through the UNO program has already taken place, with program participation expected to decrease in the coming years compared to the boom seen directly after the program’s adoption. Building Design The UNO program is designed to encourage high-density redevelopment of the West Campus area with an emphasis on creating a walkable, high-quality built environment. To evaluate and enhance the program’s effectiveness, staff analyzed several design components, including building height, parking ratios, green building rating, and the inclusion of windowless bedrooms. Each of these factors influences the livability, appeal, and functionality of the area for both residents and developers. Building Height One of the primary incentives for participation in the UNO density bonus program is increased building height. Allowed building height within the program has changed through various amendments since the original adoption in 2004. Staff analyzed the mix of development typologies across the different program years to determine which typology – mid-rise or high-rise – was more common. While it is clear that the mid-rise development typology was most common, the revisions to the program in 2019, which amended the additional height bonus, did incentivize high-rise development within the Inner West subdistrict. Development Type by Program Year 35 30 25 20 15 10 5 0 30 3 2004 11 6 2014 6 11 2019 Mid-Rise High-Rise Source: City of Austin, Building Permit data 2006-Present. Note: Building Permit data is not available from 2004 to 2005. Amendments to the program in 2019 greatly increased the allowed building height for the Inner West subdistrict and modestly increased height in the Outer West subdistrict. Staff analyzed the subset of 24 C20-2024-010 building permits submitted after this change to determine its impact on building design and program uptake. Outer West (Add. 25ft) Inner West (Add. 125ft) Average of Permitted Stories Max of Permitted Stories 7 22 8 30 Count 6 12 Count Utilized Second Tier % Utilized Second Tier 5 6 83% 50% Source: City of Austin, Building Permit data 2019-Present. The second tier of the bonus was particularly popular among development in the Outer West subdistrict where the additional 25ft of building height allowed the development to reach 75-85ft in allowed building height. Among the developments that utilized the 125ft height bonus, five chose to maximize their development potential, reaching 29 or 30 stories, indicating that this additional height bonus provided sufficient development potential to offset the increased affordability requirements. Parking Ratio Staff analyzed parking data in site plans submitted within the UNO district boundaries in the last 10 years. Parking regulations for developments participating in the UNO density bonus program have changed throughout the years, and currently, there are no parking requirements for developments. However, staff analyzed the amount of parking provided against the City’s previous parking requirements, similar to the analysis conducted for a recent code amendment to impose maximum parking requirements within Austin’s downtown. The formerly required parking ratio provides a useful benchmark from which provided parking can be analyzed. Staff found that, on average, developments provided 56% of the parking that would have been required of typical development, with much of the parking being provided in below-ground parking structures. However, staff did find that in subdistricts that allow for additional building height, Inner West, developments included more above-grade stories of parking than in subdistricts that allowed lower heights – Outer West. Average of Below-Grade Stories 2.0 1.2 1.6 Average of Above-Grade Stories 2.1 0.8 1.3 Average of % of Required Parking Provided 47% 67% 56% Average of Residential Parking Ratio 1.00 1.20 1.09 Total Parking Spaces provided 4,300 1,956 6,326 INNER WEST OUTER WEST Grand Total Source: City of Austin, Site Plan data 2014-Present. Green Building Mandatory Green Building has been a component of the University Neighborhood Overlay since it was first adopted in 2004. Participating developments are required to reach at least a one-star rating under the Austin Energy Green Building program (AEBG program). A one-star rating under the program only includes the basic requirements such as goal setting, bicycle parking, electric vehicle charging, and measures to reduce potable water use, among other requirements. Most developments have met only this minimum standard of a one-star rating; however, 11 developments have received 25 C20-2024-010 two- or three-star ratings under the program. Two- and three-star ratings require increased point totals from the core measures of the AEBG program, including elements of site location, energy performance, and water conservation. Increasing the requirement for Green Building from one-star to two- or three-stars reinforces the commitment to the City’s environmental and sustainability goals. One-Star Two-Star Three-Star Count 54 3 8 Source: Austin Energy Green Building, 2005 – Present. Windowless Bedrooms Addressing the issue of windowless bedrooms is crucial for enhancing livability for residents of new developments. Access to natural light significantly impacts residents' well-being, mental health, and safety. Ensuring that bedrooms are designed to include windows or alternatives for natural light aligns with UNO's focus on creating high-quality, safe living spaces for all residents. Staff analyzed site plan documents for multifamily developments within the UNO area and were able to confirm data with property managers for a subset of buildings. Among the developments for which data was available, staff found that 32 buildings included at least one floorplan with a windowless bedroom. Due to limitations in data availability, this analysis does not reflect all developments within the district. Within the developments studied, staff found that up to 60% of the bedrooms were windowless in some buildings. Staff estimate that at least 13% of bedrooms in the UNO area do not have access to natural light. This percentage was higher in high-rise developments in the Inner West subdistrict, where 17% of studied bedrooms were windowless. Reducing the size of floorplates or increasing the separation between towers can help to facilitate development with more bedrooms with access to natural light by allowing for more windows on exterior walls and reducing the depth of interior space within the development. 26 C20-2024-010 Delay of Occupancy Proposal: Notice Remedy Options University Neighborhood Overlay Delay of Occupancy and Early Leasing Require a lease addendum for all UNO participating properties with notice and remedy requirements in the case of a delay of occupancy. • Require notice to all signed tenants if a certificate of occupancy for a leased unit has not been obtained 60 days prior to the lease start date. Tenants are entitled to the following options at their discretion. • Tenant is entitled to rent abatement on a daily basis until the unit is ready for occupancy and may terminate the lease without fees or additional requirements at any time before the unit is available for occupancy. • Tenant is provided with compensation for temporary relocation including relocation costs, alternative accommodations, storage, and meal stipends. Rent payment is required under the lease provisions. o Alternative accommodations must be within the district, of equal or greater value, and may include a building owned or managed by the property owner of the leased property. o Compensation for expenses not including alternative accommodation may not exceed $6,000. Local Best Practices Staff reviewed both State and Austin tenant relocation requirements to determine best practice requirements. The requirements analyzed are for similar situations where a tenant is not able to access their unit and the landlord is required to provide relocation assistance. Sec. 92.023 of the Texas Property Maintenance Code • If a municipality revokes a leased unit’s certificate of occupancy a landlord must provide: o The full amount of the tenant’s security deposit o The pro rata portion of any rental payment the tenant has paid in advance o The tenant’s damages, including any moving costs, utility connection fees, storage o Court costs and attorney’s fees from any related cause of action fees, and lost wages 27 C20-2024-010 Austin Tenant Relocation Ordinance development application discretionary land use approval • Eligibility • Requires an applicant to provide tenant notification 120 prior to the submittal of a • Establishes a tenant relocation fee for multifamily redevelopment requiring a rezone or other o Household income at or below 70% of median family income • Relocation and moving expenses covered o Application fee, deposit, and first month’s rent at replacement housing o Reimbursement for moving expenses (truck, movers, and materials) Peer City Relocation Assistance Programs Staff reviewed Peer cities to analyze what other cities require be provided to tenants in need of relocation assistance. CITY San Antonio, Texas SOURCE OF ASSISTANCE City (Risk Mitigation Fund) Renters = $2,250– $3,500 TOTAL ASSISTANCE Santa Barbara, California Property owner $5,000 maximum Seattle, Washington 50% paid by property owner $5,133 50% paid by City Portland, Oregon Property owner Mobile homeowners = $5,250–$7,500 $6,000 maximum for households with special needs Studio: $2,900 1-bed: $3,300 2-bed: $4,200 3+ bed: $4,500 28 Restrict early leasing for UNO participating properties to 6 months before the start of the lease term; applicable to all leases, lease renewals, and pre-lease agreements. C20-2024-010 Early Leasing Proposal: Similar Peer City Programs: Ann Arbor, Michigan Early Leasing and Right to Renew • Landlords must provide lease renewal offer no earlier than 180 days before the end of a current lease • Landlord may only show a prospective tenant an occupied unit during the last 150 days of the • lease term If a renewal is not offered, landlord must provide ground for good cause; if not provided then relocation assistance is mandated East Lansing, Michigan Releasing Process lease period current lease period • Cannot show prospective tenants a leased unit until 150 days before the end of the current • Cannot enter into a lease agreement with another tenant until 150 days before the end of the *This ordinance was voided after a requirement for nearby municipalities to adopt a similar ordinance was not met. 29