26-2420: 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.

Description

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.

Summary

Austin’s proposed ordinance (File 26-2420), considered September 10, 2026, amends the Citywide Density Bonus Program created by Ordinance No. 20260521-056. It would require rental developments within the Equitable Transit-Oriented Development (ETOD) district—generally areas near Austin Light Rail Phase 1 and priority extensions—to provide income-restricted units onsite rather than pay a fee-in-lieu. Outside ETOD, rental developments could pay an equivalent fee to the Housing Trust Fund. Ownership projects within ETOD would retain a fee-in-lieu option. The program otherwise requires at least 10% affordable rental units for households at or below 50% of Median Family Income, or ownership units for households at or below 80%. The change aims to place affordable housing near transit, support anti-displacement and ETOD goals, and align related density-bonus programs. It would take effect October 1, 2026.