Austin planners have detailed a new citywide strategy to allow taller buildings in various places, in exchange for affordable housing. The proposal responds to direction from City Council last year to revise a similar, controversial program, and the impacts of a new state law.
The setup
Austin has several incentives meant to encourage public benefits alongside new development. The city can trade fee waivers or regulatory rollbacks to allow for bigger buildings.
More than a dozen density bonus programs are in place today, which generally exchange affordable housing or funding for more overall space in a project. One of Austin’s newest density programs, DB90—zoning that allows up to 90 feet in height, conditioned on affordable housing commitments—was created in 2024 and went on to be used dozens of times citywide.
Projects planned with those DB90 rezonings could add nearly 20,000 homes and apartments across Austin. Those would include around 2,000 new income-restricted units and some fee payments, based on original zoning outlines filed with the city.
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DB90 was welcomed by some residents anticipating projects like a multilot redevelopment in North Loop and the reconstruction of an east side Austin ISD campus. But it also drew opposition given its rigid height standard, regardless of the context of surrounding properties.
Many community members also worried DB90 would lead older, naturally affordable housing to be replaced by more expensive housing with fewer income-restricted units overall. Those concerns were illustrated in a contentious West Austin rezoning approved last year.
During that process, Mayor Kirk Watson called DB90 an “unhappy experience” that needed to be reworked. City planners are now proposing the replacement program to allow different building heights in different places, rather than a blanket 90-foot total.
“We’re filling in the gaps and replacing existing height tiers along the way, with the hope being that these new tiers can better correspond to the market and to the neighborhood in different parts of town—instead of just a yes/no on 30 feet, which is I think a lot of what the commission and council is often faced with deciding,” Principal Planner Warner Cook said.
A new citywide density bonus would allow different scales of new development around Austin. (Courtesy city of Austin)The details
The new citywide density bonus, labeled DBC, would be used in multifamily and commercial areas across Austin. It’s not meant for single-family or industrial zones.
DBC’s five tiers would add anywhere from 0-60 feet of extra height on properties, on top of what’s already allowed there. For example, a site allowed 45 feet of height today could be rezoned with DBC30 and build up to 75 feet tall. Or if that area is seeing more intense development, that building could reach up to 105 feet with DBC60.
Austin’s proposed DBC would allow different levels of building height, meant to align with surrounding neighborhoods, in exchange for affordable housing. (Courtesy city of Austin)If DBC is established, Cook said the city would likely stop accepting applications under comparable programs like DB90 in favor of the new citywide version.
The potential bonus tiers will be reviewed by several commissions this month ahead of a council vote to establish the program in late May. For now, Watson signaled his new support for the new framework as a “more thoughtful” replacement for DB90.
“While developers can still request 90 feet in height, neighbors can help the council decide if the height should be more or less. We can also adjust the density, decide whether ground-floor commercial makes sense, make other adjustments so the development is tailored to the neighborhood,” he said in his newsletter. “This is a far more intentional approach to development and creates the opportunity for robust conversations between neighbors and developers.”
Residents can learn more online, at the city’s April 11 Housing Affordability Fair or during an April 13 virtual open house.
Zooming in
DBC reflects the fact that Austin includes several real estate submarkets with differing development trends, Cook said. It’s also based on input solicited by the city that found residents want to see new construction to come with community benefits, taller buildings near transit lines and shorter buildings in neighborhoods, and a mix of income levels for affordable housing programs.
Lower income limits are being eyed for Austin’s overall affordability strategy and in the citywide bonus as drafted. The city regulates affordable housing based on median family income, or MFI, and would only allow DBC rental projects that reserve a share of units at no more than 50% MFI. Any homeownership projects would be limited to 80% MFI and below—or comparable fee payments to the city’s housing fund—due to typical mortgage requirements.
“Really just trying to match our tools with the need,” said Erica Leak, a housing officer for city management.
The proposed DBC incentive would require lower levels of affordability than some comparable programs today. (Courtesy city of Austin)What else?
The proposed DBC is one of several ways Austin planners are seeking to maintain development incentives that can create more affordable housing in the wake of Senate Bill 840’s passage last year.
Under that “residential in commercial” legislation, larger housing projects are now automatically permitted in places they previously wouldn’t be. Cook noted that state-level change has reduced the effectiveness of longtime local strategies, like a downtown building program that was already revised.
“That can be really beneficial in increasing housing capacity, but it does impact the likelihood that somebody would choose to use a density bonus program,” she said. “If they can build enough of what they were already interested in building without coming in for a rezoning case, they’re likely to do that.”