Posting Language
Title
Approve a resolution prioritizing how fee-in-lieu funds generated by the Citywide Density Bonus Program should be spent on affordable housing. Funding: This item would establish a target income level for City investments in affordable housing using future fee-in-lieu revenue that is generated through the Citywide Density Bonus program. The item would not impact the overall amount of fee-in-lieu collected.
De
Lead Department
Austin Planning.
Fiscal Note
This item has no fiscal impact.
Prior Council Action:
May 21, 2026 - City Council adopted Ordinance No. 20260521-056 creating the Citywide Density Bonus (DBC) Combining Districts.
For More Information:
Warner Cook, Austin Planning, Warner.Cook@austintexas.gov or (512) 978-1724.
Additional Backup Information:
Ordinance No. 20260521-056, adopted by City Council on May 21, 2026, created the Citywide Density Bonus Program and amended City Code Title 25 (Land Development) to create five new density bonus combining districts corresponding to five additional height tiers (no additional height, +15 feet, +30 feet, +45 feet, +60 feet) that:
• in the case of four of the five combining districts, provide additional height;
• allow additional land uses;
• relax site development standards such as setbacks, building coverage, maximum floor to area ratio, maximum density, and minimum site area requirements;
• relax compatibility requirements;
• require the provision of income-restricted housing (including fee-in-lieu options for both rental and ownership developments);
• set requirements for redevelopment in the case of existing multifamily; and
• require other pedestrian-friendly community benefits.
As part of the adoption of the Citywide Density Bonus Program, City Council directed the City Manager to explore policy options to prioritize creation of additional units at 30 percent Median Family Income and on July 24, 2026, staff provided a memorandum recommending that Council prioritize creating additional units at 30 percent MFI when utilized to finance rental housing. If approved, this ordinance will implement the City Manager’s recommendations.