AUSTIN, Texas — Austin City Council approved two measures Thursday that change how developers can use fees in lieu of providing affordable housing and how the city will spend the money collected through those fees.
The measures, Items 19 and 31 on the council agenda, amend Austin’s Citywide Density Bonus Program, which the council established in May to offer development incentives in exchange for affordable housing and other community benefits.
Under the program, developers can provide affordable housing within their projects or pay a fee in lieu of building the units.
Item 19 directs the city to prioritize fee-in-lieu revenue for affordable housing serving households earning 30% of the Median Family Income.
Item 31 limits the fee-in-lieu option for certain developments participating in the density bonus program within the city’s Equitable Transit Oriented District Combining District.
Developers covered under the change must provide affordable housing units on-site rather than pay the city a fee.
The change applies to developments near future transit stations and could reduce the amount of fee-in-lieu revenue the city collects over time.
City officials said the reduction in fee revenue would be offset as developers provide affordable housing units within their projects.
The changes come as Austin continues to adjust its Citywide Density Bonus Program after concerns about potential unintended effects on affordable housing production.
