AUSTIN, Texas -- Austin’s current land development code is 30 years old and was written in a time when the population was half the size it is today.

  • Current code is 30 years old
  • New code looks to guide growth
  • Goal is to build 405,000 new housing options

An updated code looks to guide continuing growth and determine what can be built and where. As more housing is being built, the Austin City Council wants to make sure to create as much affordable housing as possible.

Council got a presentation from members of the revision team Tuesday. It is the first public meeting since the draft land development code was released.

City Council members have a goal of building more than 405,000 new housing options in Austin and 75 percent of them would have to be along high-transit roads. Staff said one key strategy allowable under state law to maximizing affordable housing is through a density bonus program. It aims to provide incentives to developers to build income-restricted units. 

“It’s not that the City is paying any money to the developers. It’s just that the City would be allowing them to build a taller building or a denser building, perhaps having more units in the development than they would be able to. We can continue to look at how to improve the density bonus program to make sure that it can be as effective as possible. But, since it does have to be a voluntary incentive program, there are limitations on how it can be designed and how it can be calibrated,” said Erica Leak, housing policy and planning manager for Austin’s Neighborhood Housing and Community Development Department.

Members of the revisions team said current code allows for the potential of 1,500 additional units of income-restricted housing. That number would go up to 9,000 units under the proposed code, a six-fold increase. 

The number does fall short of the council’s policy direction in May that sought the creation of 60,000 affordable units. Staff said they are restricted by the state. Unlike other states, Texas law does not allow for inclusionary zoning where municipalities can require a certain percentage of new developments to be affordable units, rent controlled, or impact fees for affordable housing.

“Due to limitations in state law, it basically means that that the city has fewer tools to meet its affordable housing goals,” Leak said. 

Council members weighed in on the proposal after the meeting. 

“We have density bonuses right now that developers are using. I believe that this code extends that for different places across the city. It is working in the city. We just don't allow it in very many places. What I hope is the goal here is as we continue to allow those incentive programs, we will see the market bring us those more affordable units,” said Mayor Pro Tem Delia Garza of District 2.

“Broadly speaking, I am skeptical of whether the market will deliver the kind of capacity that they’re talking about. We're putting a lot of emphasis on the market and part of what we didn't really get into today is exactly how we're going to calibrate our bonuses, how we're going to calibrate our system, so that we get the most affordable housing possible,” said council member Alison Alter of District 10.

Staff in every council district is holding office hours and town halls this month. For more information about dates, times, and locations visit the City of Austin website.   

Council members could vote on the land development code in December.