26-2419: 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.

Description

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.

Summary

Austin Resolution 26-2419 would direct that, whenever possible, fee-in-lieu payments from the Citywide Density Bonus Program be used to create rental housing affordable to households earning no more than 30% of Median Family Income (MFI). The program allows developers receiving zoning benefits—such as added height, greater density, expanded uses, and relaxed development standards—to provide affordable units or pay fees instead. The policy responds to Austin producing just over 4% of its annual goal of 2,000 deeply affordable units. It would affect future affordable-housing investments but would not change fee amounts or create a fiscal impact. The Citywide Density Bonus Program was established in May 2026.