Affordable Housing Task Force
February 27, 2007 21:41 Filed in: Development
Watch
Over the last year, a city-sponsored Affordable
Housing Incentives Task Force has been discussing
ways to encourage the development of afordable
housing units as part of large scale development
projects. The city wants more affordable downtown
units, but State law doesn't allow the city to place
affordability requirements on new developments. The
purpose of the task force is to create incentives
that make it attractive for developers to include
these units.
Last week, the Task Force delivered its recommendations to the Austin City Council, Planning Commission and the Community Development Commission. After seven months of work and twenty meetings, the task force reached consensus on incentive policies to encourage developers to provide affordable housing.
Like most policies, there is a carrot and a stick. The carrot provides for expedited review, fee waivers, and zoning variances that allow for greater height or density if affordable units are included. The stick is a fee -- as much as $10 per SF -- that applies to project area in excess of standard zoning density requirements when variances are granted for projects that do not include affordable units. As the City Council has already been applying similar rules in some zoning discussions, the incentives seem likely to be put into effect.
While Austin remains much more affordable than many of the Country' largest cities, affordibility is becoming a bigger issue as prices continue to rise. To keep the city vibrant -- and to make sure that there is always central housing for teachers, public servants, and other middle income workers, these incentives seem to make sense. Like any policy that appears to redistribute resources, the rules will be controversial. But they seem balanced enough to be fair to increase the stock of affordable housing without reducing development.
Here are the specific rules that apply to downtown:
Central Business District (CBD):
For rental CBD projects that provide either 5% of the total project square footage or 10% of the additional gross square feet in the project, above what is possible with 8:1 floor to area ration (FAR), must provide units at below 80% of Medium Family Income (MFI) in order to receive fast track permitting and to have all City of Austin fees waived. In for sale projects, the same amount of affordable units are required; however, the units must be affordable for households earning at or below 120% of MFI.
Residential developments in the CBD that choose not to provide affordable housing on-site or non-residential developments seeking an increase in FAR must pay a "fee in lieu" of $10 for each additional gross square foot in the project, above what is possible with 8:1 FAR.
Downtown Mixed Use (DMU):
For rental DMU projects will be required to provide affordability at or below 80% MFI for 10% of additional gross square feet in the project, above what is possible with 5:1 FAR, or that exceeds 120 feet in height. For sale projects must provide the same amount of affordable housing at a level of 120% of MFI.
As with CBD, residential developments that choose not to provide affordable housing on-site or non-residential development seeking an increase in FAR must pay a "fee in lieu" of $10 for each additional gross square foot in the project, above what is possible with 5:1 FAR, or that exceeds 120 feet in height. Projects that do not seek a FAR bonus, but 5% of the total project square footage meets the affordability requirements, will receive the allowed incentives.
Here is the actual report: Final Report
Last week, the Task Force delivered its recommendations to the Austin City Council, Planning Commission and the Community Development Commission. After seven months of work and twenty meetings, the task force reached consensus on incentive policies to encourage developers to provide affordable housing.
Like most policies, there is a carrot and a stick. The carrot provides for expedited review, fee waivers, and zoning variances that allow for greater height or density if affordable units are included. The stick is a fee -- as much as $10 per SF -- that applies to project area in excess of standard zoning density requirements when variances are granted for projects that do not include affordable units. As the City Council has already been applying similar rules in some zoning discussions, the incentives seem likely to be put into effect.
While Austin remains much more affordable than many of the Country' largest cities, affordibility is becoming a bigger issue as prices continue to rise. To keep the city vibrant -- and to make sure that there is always central housing for teachers, public servants, and other middle income workers, these incentives seem to make sense. Like any policy that appears to redistribute resources, the rules will be controversial. But they seem balanced enough to be fair to increase the stock of affordable housing without reducing development.
Here are the specific rules that apply to downtown:
Central Business District (CBD):
For rental CBD projects that provide either 5% of the total project square footage or 10% of the additional gross square feet in the project, above what is possible with 8:1 floor to area ration (FAR), must provide units at below 80% of Medium Family Income (MFI) in order to receive fast track permitting and to have all City of Austin fees waived. In for sale projects, the same amount of affordable units are required; however, the units must be affordable for households earning at or below 120% of MFI.
Residential developments in the CBD that choose not to provide affordable housing on-site or non-residential developments seeking an increase in FAR must pay a "fee in lieu" of $10 for each additional gross square foot in the project, above what is possible with 8:1 FAR.
Downtown Mixed Use (DMU):
For rental DMU projects will be required to provide affordability at or below 80% MFI for 10% of additional gross square feet in the project, above what is possible with 5:1 FAR, or that exceeds 120 feet in height. For sale projects must provide the same amount of affordable housing at a level of 120% of MFI.
As with CBD, residential developments that choose not to provide affordable housing on-site or non-residential development seeking an increase in FAR must pay a "fee in lieu" of $10 for each additional gross square foot in the project, above what is possible with 5:1 FAR, or that exceeds 120 feet in height. Projects that do not seek a FAR bonus, but 5% of the total project square footage meets the affordability requirements, will receive the allowed incentives.
Here is the actual report: Final Report