17 C20-2024-004 - Citywide Density Bonus - Staff Presentation — original pdf

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Citywide Density Bonus Program Planning Commission Hearing | April 28, 2026 Agenda ▪ Background ▪ Citywide Density Bonus Program Staff Proposal ▪ Next Steps Source: City of Austin 2 Background Austin's Affordability Challenges and Needs ▪ Austin has seen population growth over recent decades, and housing production has not kept up with this growth, making it more difficult for people to find affordable housing. Affordable housing is a priority for the City. ▪ The Strategic Housing Blueprint (2017) calls for various tools, including: ▪ Public subsidies and grants ▪ Public-private partnerships ▪ Fee waivers ▪ Tax incentives ▪ Density bonuses ▪ The greatest need is at and below 50% MFI ($66,900 for a four-person household). Source: City of Austin 4 Density Bonuses And Economic Context ▪ A density bonus allows a developer to build more in exchange for a community benefit, usually affordable housing. They are market- based, voluntary tools. They depend on current economic conditions for success. ▪ Density bonuses tend to be more effective for units affordable between 50%-80% MFI. ▪ Austin’s real estate and construction market is in a different place than it was previously, with costs and uncertainty rising. ▪ Recent changes to state law like Senate Bill 840 (SB 840) encourage more market-rate housing, but impact density bonus effectiveness. Source: City of Austin 5 City Council's Direction Austin City Council directed staff to create a new Citywide Density Bonus Program with a tiered structure, offering a range of additional heights in exchange for income- restricted housing, that also considers: ▪ Additional Heights: Consider tiered options that are more or less than 30’ ▪ Market-Feasible Affordability: Ensure requirements reflect current market conditions ▪ Community Benefits: Provide benefits beyond affordable housing ▪ Compatibility Rules: Update regulations to allow for more housing ▪ Redevelopment Requirements: Consider one-to-one replacement for demolished affordable units in new developments Council also asked us to update or align existing programs including DB90, VMU, and DBETOD with the new program. Source: City of Austin 6 Citywide Density Bonus Program Goals ▪ Encourage creation of new affordable housing without additional City subsidy. ▪ Provide more density bonus options that can be tailored to different neighborhood contexts across Austin. ▪ Help make density bonus requirements more consistent and transparent for City staff, property owners, builders, and the community. ▪ Respond to the implications of SB 840 that impact where and how housing can be built by-right. Source: City of Austin 7 Community Engagement Public input has been gathered through a variety of methods for the last year and a half. Engagement included: ▪ Virtual open houses ▪ Compensated focus groups with community members ▪ Interviews with members of the development community ▪ Housing Affordability Fair event (co-hosted with Austin Housing) ▪ Advertisement of online project webpages and survey questions ▪ Digital: paid and owned social media; external City of Austin newsletters; CapMetro MetroAlert ▪ Analog: Austin utilities newsletter; flyers at all Austin libraries and on all CapMetro buses and trains ▪ In-person stakeholder briefings to organizations and groups ▪ Tabling at community events and libraries ▪ Planning Commission and City Council public hearings Source: City of Austin Source: City of Austin 8 Community Feedback Though a variety of views have been expressed, several themes have emerged from community feedback on density bonus programs: ▪ Affordable housing provision in addition to a mix of other community benefits (public open space, ground-floor stores, civic/cultural spaces, bike lanes, transit amenities, etc.). ▪ Tall buildings near transit; mid-rise and shorter buildings are more appropriate farther from transit. ▪ A mix of income-restricted housing levels, not just deep affordability or only moderate affordability. ▪ Sensitivity to the surrounding neighborhood context. ▪ Intentionally preserving existing affordable housing. ▪ Focus on the areas of greatest need for those struggling to find housing. Source: City of Austin Source: City of Austin Source: City of Austin Source: City of Austin 9 Citywide Density Bonus Program Staff Proposal Program Structure The new program will consist of five new combining districts corresponding to height tiers. Only one tier can be used per property. No rezoning is part of Council action in May, and no new DB90 or VMU zoning applications would be accepted going forward. Tier Combining District Name Comparable Existing Program No Additional Height Citywide Density Bonus Program Base (-DBCBase) Vertical Mixed Use (V) +15’ +30’ +45’ +60’ Citywide Density Bonus Program 15’ (-DBC15) Citywide Density Bonus Program 30’ (-DBC30) Citywide Density Bonus Program 45’ (-DBC45) Citywide Density Bonus Program 60’ (-DBC60) N/A DB90, DBETOD Subdistrict 2 N/A DBETOD Subdistrict 1 Source: City of Austin 11 Applicability The Citywide Density Bonus will be allowed in the following commercial zones: ▪ Neighborhood Office (NO) ▪ Limited Office (LO) ▪ General Office (GO) ▪ Neighborhood Commercial (LR) ▪ Community Commercial (GR) ▪ General Commercial (CS and CS-1) ▪ Commercial Highway Services (CH) ▪ Potential future mixed-use zones No residential or industrial zones will be eligible for this program. VMU DB90 DBETOD Citywide DB Single Family Residential Multifamily Residential Neighborhood Office (NO) Limited Office (LO) General Office (GO) Commercial (CS, CS-1) Commercial Highway (CH) Neighborhood Commercial (LR) Community Commercial (GR) Commercial Recreation (CR) Central Business District (CBD) Downtown Mixed Use (DMU) Lake Commercial (L) Warehouse/ Limited Office (W/LO) Industrial (LI, MI, IP, R&D) Potential Future Mixed-Use Zones N N N Y Y Y N Y Y N N N N N N - N N N Y Y Y N Y Y N N N N N N - N Y Y Y Y Y Y Y Y Y Y Y Y Y Y - N N Y Y Y Y Y Y Y N N N N N N Possibly 12 Program Components A density bonus program allows a developer additional entitlements, such as the additional heights allowed, in exchange for providing a community benefit, usually affordable housing. The next slides will discuss the specifics of how this balance of requirements and incentives will work under the new program. Community Benefits Affordable Housing Unit Replacement Requirements Mix of Uses and Design Standards Additional Entitlements Additional Height Modified Site Development Standards Additional Permitted Uses 13 Citywide DB Program (DBC) Highlights Community Benefits Additional Entitlements ▪ Affordability Requirements: ▪ Height: ▪ Ownership: 10% of units at 80% MFI or FIL ▪ Rental: 10% of units at 50% MFI on-site ▪ Redevelopment Requirements (Ch. 4-18): ▪ Separate section with definitions and processes ▪ Tenant protections apply to participating sites ▪ When redeveloping units at 70% MFI and below, requires at least 10% of units and up to 20% of units to be replaced as income-restricted ▪ Mix of Use & Active Design Standards: ▪ Maximum of 35% non-residential use total ▪ 75% of ground floor building frontage along the principal street must contain non-residential use ▪ Similar building design standards as existing DBs ▪ Required to build full recommended width of pedestrian infrastructure ▪ Allows for an additional +0’, +15’, +30’, +45’, or +60’ beyond base zone maximum height ▪ Modified Site Development Standards: ▪ No Floor Area Ratio (FAR), min. site area, max. building coverage, or max. dwelling units/acre ▪ Reduced or eliminated setbacks ▪ Supersedes other regulations that would otherwise limit height ▪ Relaxed compatibility allowing up to 90’ tall buildings after a 25’ deep no-build zone, and then allowing full height for the DB building beyond 50’ from a triggering property ▪ Additional Allowable Active Land Uses 14 Next Steps Next Steps November 2025 – February 2026 April – May 2026 WE ARE HERE - Interdepartmental Discussions - Codes and Ordinances (4/15) - Analysis and Proposal Development - Planning Commission Hearing (4/28) - Council Consideration (5/21) - Finalize Staff Proposal - Organizational Briefings - Community Engagement February – April 2026 16 Citywide Density Bonus Program Website www.SpeakUpAustin.org/CitywideDB 17 Thank you! Warner Cook, Austin Planning | LDCUpdates@austintexas.gov www.SpeakUpAustin.org/CitywideDB Reference Material Community Benefits Affordable Housing OWNERSHIP UNITS Duration: For a minimum of 99 years Affordability Criteria: For a household making 80% MFI or lower Fee-in-Lieu (FIL): Allowed Each Citywide Density Bonus tier has the same affordability requirements. ON-SITE FEE-IN-LIEU (ALLOWED) ▪ Ownership: ▪ 10% units affordable to households making 80% MFI or less for a minimum of 99 years. ▪ Fee-in-lieu is allowed. ▪ Rental: ▪ 10% units affordable to households making 50% MFI or less for a minimum of 40 years. ▪ On-site only; fee-in-lieu is not allowed. RENTAL UNITS Duration: For a minimum of 40 years Affordability Criteria: For a household making 50% MFI or lower Fee-in-Lieu (FIL): Not Allowed ON-SITE ONLY FEE-IN-LIEU (NOT ALLOWED) 20 Community Benefits Redevelopment Requirements Tenant protections outlined in Austin’s Chapter 4-18 of City Code today will apply to all Citywide Density Bonus Program developments that redevelop existing multifamily structures, including: ▪ Required tenant notice information ▪ Payment of four months rent and fees ▪ Payment for moving expenses ▪ Right of first refusal for new units ▪ Ability to break lease without penalty ▪ Full return of security deposits Source: City of Austin 21 Community Benefits Redevelopment Requirements (cont.) Unit replacement requirements also help increase the number of affordable units in the new development above the Citywide Density Bonus Program’s baseline when redevelopment of lower cost existing housing occurs. To use the Citywide Density Bonus Program on properties with existing units that are affordable to households earning 70% MFI or less, a developer must replace those units in the new development by providing a minimum of 10% of units and up to a maximum of 20% of units. Apartment Style Existing Units (at 70% MFI or below) Proposed Units Required Affordable Units Total Percentage Affordable Units Full Replacement of Existing Units? Low-Rise Example 1 Low-Rise Example 2 Low-Rise Example 3 Garden Example 4 25 25 25 100 200 300 20 25 30 20% 12.5% 10% No Yes Yes, and 5 additional units 300 600 120 20% No 22 Community Benefits Mix of Use Standards Development projects using the Citywide DB must be at least 65% residential, with the remaining area able to be used for purposes like office, retail, commercial, and restaurants. At least 75% of the ground floor building frontage must contain non-residential uses, although site-specific waivers are allowed. MIX OF USES Non-Residential: Maximum 35% Floor Area; 75% Ground Floor Street Frontage Minimum Residential: Minimum 65% Floor Area Non-Residential: Maximum 35% Floor Area; 75% Ground Floor Street Frontage Minimum Residential: up to 100% Floor Area* * Possible site-specific waiver available 23 Additional Entitlements Height and Site Development Standards 0’ +15’ +30’ 45’ +45’ +60’ Cannot Combine Tiers 24 Additional Entitlements Compatibility Standards The program recommends a relaxed version of compatibility standards, similar to existing density bonus programs. Standard DB90 DBC (Proposed) DBETOD Subdistrict 1 25 Additional Entitlements Allowable Use Standards Staff are recommending allowing additional land uses for participating developments to make neighborhoods more pedestrian-friendly and help residents meet their daily needs. Recommended land uses include: • adult care services (limited or general) art gallery art workshop business or trade school childcare services (limited or general) consumer repair services consumer convenience services counseling services cultural services • • • • • • • • custom manufacturing financial services without drive-through services food sales guidance services general retail sales (convenience or general) personal services restaurant (limited or general) without drive-in service, and theater • • • • • • • • Source: City of Austin 26