Austin leaders directed the city manager to come back to council with a streamlined proposal.
AUSTIN, Texas — Austin leaders want to fill downtown with more skyscrapers and were hoping to get it done under the downtown density bonus program, but a new law is forcing them to change plans.
On Thursday, council members listened to feedback from Austinites about their proposal to set a 350 ft height cap on buildings for the Central Business District (CBD) density bonus program to preserve affordable housing.
Under SB840, which took effect on Sept. 1, the state got rid of Texas cities’ ability to regulate floor-to-area ratios (FAR) for residential and mixed-use projects.
“We need some time to work through [the state law] and get to a good solution that encourages skyscrapers in downtown, but I want to make sure and preserve our affordable housing dollars that generate the great streets requirements,” said District 4 leader, Chito Vela.
District 9 leader Zo Qadri released the following statement:
“We know this outcome is not ideal for anyone. Once again, Austin is constrained by state law and court rulings. I want to assure our downtown community that I am committed to working with staff to fast track the Downtown Density Bonus update for the areas most affected. Together, we can create a stronger program that encourages investment downtown and reflects our community’s goals for a more vibrant, walkable, and inclusive Austin.”
Council members agreed to streamline the proposal and have the city manager come back by May 2026 before moving forward.
In the meantime, Vela added that the goal was to continue getting public feedback.
“This is a much smaller community of folks and I think we’ll be able to get everybody together, you know, get their thoughts and opinions, craft something that works and move forward in a relatively quick manner,” said Vela.