Posting Language
Title
Conduct a public hearing and consider an ordinance amending City Code Section 25-2-656 (Citywide Density Bonus (DBC) Combing District Regulations) to allow an applicant using the Citywide Density Bonus Program to pay a fee in lieu of providing on-site, income-restricted rental units. Funding: If it is approved, this item would require certain projects participating in the Citywide Density Bonus program to provide on-site affordable housing rather than being allowed to provide fee-in-lieu. This item could result in a reduction in the overall amount of fee-in-lieu collected under the program over time, but the reduction would be offset by the provision of on-site affordable housing units by the development.
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 Program (DBC) combining districts and directed the City Manager to return with an ordinance to implement a fee-in-lieu option for rental units.
For More Information:
Warner Cook, Austin Planning, Warner.Cook@austintexas.gov, (512) 978-1724.
Council Committee, Boards and Commission Action:
April 28, 2026 - Planning Commission recommended City Council consider allowing for fee-in-lieu for on-site rental units in developments constructed under the Citywide Density Bonus Program.
Additional Backup Information:
Ordinance No. 20260521-056, adopted by City Council on May 21, 2026, created the Citywide Density Bonus (DBC) 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 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 adoption of the DBC Program, Council also approved an amendment by Council Member Qadri. This amendment directed the City Manager to return to Council with a memorandum providing policy options and recommendations for implementing a fee-in-lieu option for rental units in the Citywide Density Bonus Program and an ordinance for action to apply the City Manager’s recommendations. On April 28, 2026, the Planning Commission recommended Council authorize fee-in-lieu for on-site rental units. If approved, this ordinance would authorize fee-in-lieu of on-site rental units when the property is outside of the boundary of the City’s Equitable Transit Oriented District (ETOD) Combining District.