Community Not Commodity

This Thursday at City Council there is a resolution for Austin to create a fund, “AHOT” for the preservation, or enhancement of naturally occurring affordable housing (NOAH) and funding mechanisms to prevent the net loss of affordable housing (Item 41).   This resolution will add a variety of precise tools to cover areas where the city’s response could be more robust in preserving socially valuable affordable housing stock. This program is based upon a  Dallas  (Dallas Housing Opportunity Fund )  Fund.   Council Member Duchen was the driving force to bring this forward.  You can view his in depth presentation on Naturally Occurring Affordable Housing here.

The seed money would come from the 2018 Affordable Housing Bonds and Austin would build the funds from Philanthropic sources, private donations and capital investment and future possible bonds.

The resolution asks the city to report and review NOAH properties and their preservation and their replacement with new development.   The city will The seed money would come from the 2018 Affordable Housing Bonds and Austin would build the funds from Philanthropic sources, private donations and capital investment and future possible bonds report the number  of units renting below certain price thresholds that will be destroyed as part of developments that require a zoning change or seek participation in a density bonus program.   In the case of the Acacia Cliffs rezoning which we reported on, there was a large net loss of affordable housing in the rezoning that included participation in the DB90 density bonus program This Thursday at City Council there is a resolution for Austin to create a fund, “AHOT” for the preservation, or enhancement of naturally occurring affordable housing (NOAH) and funding mechanisms to prevent the net loss of affordable housing (Item 41).   This resolution will add a variety of precise tools to cover areas where the city’s response could be more robust in preserving socially valuable affordable housing stock. This program is based upon a  Dallas  (Dallas Housing Opportunity Fund )  Fund.   Council Member Duchen was the driving force to bring this forward.  You can view his in depth presentation on Naturally Occurring Affordable Housing here..

The resolution also asks for city staff to review displacement compensation provided to tenants when a property owner participates in a density bonus program.

This is a first step towards stopping the loss of existing market rate affordable housing in Austin.

In February, the Austin City Council rewrote the rules governing short-term rentals (STRs) in Austin – and not in a good way. As part of these changes, they amended the land development code to allow STRs as an “accessory use” in all base residential zoning districts – including Single-Family. They declared that, with an operator’s license, “short-term rental use cannot be prohibited.” They did so over the opposition of the community and in contradiction of the City Council’s own findings that STRs “are predominantly located in single-family and multi-family neighborhoods” and replace long-term housing for residents, “which can impact housing affordability, neighborhood dynamics, and the quiet enjoyment of one’s home.”  These are the Council’s words.

The Council is revisiting its proposed STR licensing regulations this Thursday (Agenda Item 12), but is still refusing to limit the number and location of STRs in any meaningful way. New “cannot be prohibited” STRs will replace available neighborhood housing, including naturally occurring affordable housing, thereby elevating the interests of investors over those of homeowners and long-term renters.

In February, the Council excused its failure to regulate the number and location of STRs because the Legislature was in session. The Legislature is no longer in session. The Council also claimed that three court cases tied their hands. This was demonstrated at the time to be false. It remains false today.

In February, the council delayed the implementation of the STR rules and code amendments until October 1^st. Write to the Mayor, Council Members, and City Manager. Tell them that if this Council truly prioritizes housing for residents over hotels for investors, then it must extend the effective date of the proposed code changes to allow for meaningful revisions—ones that regulate not just the operation of STRs, but also their number and location, as permitted under current law.

SB840, a new state law that went into effect on September 1, 2025, dramatically alters land use on commercial property in Austin. It allows residential development—including multifamily and mixed-use—on properties zoned for office, commercial, retail, or warehouse use without a zoning change or a public hearing.

According to the city:

Multifamily and mixed-use residential developments in commercial zones will be allowed to:

1. Reach a minimum height of 45 feet or the height that applies to commercial uses for the site.
2. Reach a density of up to 54 units per acre.
3. Include setbacks that are 25 feet or those imposed on commercial uses, whichever is less.
4. Develop an unlimited floor-to-area ratio (FAR).

This will allow automatic height increases in Neighborhood and Limited Office zoning (NO & LO) and Neighborhood Commercial (LR) with residential redevelopment.  These are currently limited to 2 and 3 stories.

It also allows the conversion of non-residential buildings and prohibits traffic impact analysis, fees for traffic improvements, and impact fees. Additionally, it restricts utility improvements to those necessary for serving the proposed converted building.

The biggest impacts will be on large commercial or office tracts that do not already have mixed-use zoning, as well as small office and retail spaces located within existing neighborhoods.

By eliminating zoning hearings and traffic impact studies, SB 840 removes consideration of the compatibility of the project with the surrounding or nearby neighborhood.

CNC was tracking around 40 legislative bills that would impact land use.   The vast majority of the bills that were filed did not advance – in most cases for good reason. CNC joined with other groups around the state in an effort to defeat or ameliorate land use legislation that would undermine local control and community decision-making or chisel in stone bad policy. Despite long odds against well-funded proponents of these bills, aided by a small army of lobbyists, we had surprising, but not complete, success.

Here are three bills, that take and effect on September 1, 2025 and could have the biggest impact on our communities:

HB24 by Orr.   The final version was pulled back from its original scope.

Major Impacts:

Petition Rights – homeowners were stripped of their petition rights against high density residential rezoning within 200 feet of their homes.  We were able to salvage valid petition rights (20% of owners) involving commercial rezonings where the commercial use is more than 35% of the overall development.

Comprehensive Zoning Change notification – notification must be published in a newspaper and on the city’s internet website.   Though the city may notify in the future about comprehensive changes like H.O.M.E. , they are not required to give individual notice and are allowed to decide what constitutes fair notice.

Very short statute of limitations on lawsuits filed against a city’s illegal zoning actions those actions allow more residential development on a property.    The three year period to file suit has been reduced to 60 days from the effective date of the ordinance.

Travis County Delegation Votes:  Hinijosa. Flores and Troxclair voted no.  Eckhardt, Bucy, Cole, Goodwin, Howard and Talarico voted yes.

SB15 by Bettencourt.  The final version applies to new subdivision plats of 5 acres or more.

Major impacts:

Lot size – the city may not require a residential lot to be larger than 3,000 sf, wider than 30 sf, or deeper than 75 feet. (the original bill was 1400 sf)

Small lots (4,000 square feet or less) –  A municipality must allow 15  foot or less front setbacks – 3 full stories and 70% or greater impervious cover (unless the land is located in an aquifer recharge zone).

SB840 by Hughes – the final version regulates residential development of commercial property.

Major Impacts:

Residential development – a city must allow mixed use residential or multifamily residential in a zoning classification that allows office, commercial, retail or warehouse with any zoning change.  The residential density allowed would be the highest allowed in the municipality.   The height would be restricted to the existing commercial height limit. Other site development regulations would be relaxed or eliminated.

A comprehensive list will be available on the CNC website.

Like you, we mourn with those grieving the loss of loved ones in the July 4th floods and, our hearts go out to all those whose lives have been upended.   The magnitude of this disaster has left deep wounds that will take time and community support to heal.

We are awed by the actions of those who risked their lives to save others and who are still toiling under hazardous conditions to aid in the recovery.  This tragedy reminds us of nature’s force and our shared duty to protect each other through forward-looking policy and preparedness.

Many organizations are stepping up to help those in need. One list of resources can be found through Communities Foundation of Texas.

Closer to home, the City Council will soon consider two floodplain variances at its July 24 meeting. A floodplain variance request seeks to build in an area prone to flooding.

One request (Item 130) is for an extension of an expired floodplain variance, which was granted over the objection of the city’s floodplain administrator, for a proposed tower at 506 West Avenue.

Testimony from COA floodplain administrator at the July 18,2024 initial  meeting:

“[T]his entire lot is within the 25 year and 100 year city of Austin floodplain. The parking garage has a ramp that goes down adjacent to the right of way, and that’s how residents would leave the building. … And for a 25 year floodplain, the flood depth is approximately six feet. And for the 100 year flood, the depth of that location is approximately nine feet. A flood depth of nine feet is significant, and that’s a lot of water. That’s not the amount of water that anybody can drive through that it it presents a very dangerous situation for the occupants of the building that might be getting out, as well as for first responders that can’t get into the building. The distance to go from the building itself to an area that’s out of the out of the floodplain is about 300ft, not a short distance to get out of flood waters and out of harm’s way.

“Staff believes that this proposed use a very dense residential use is not appropriate. “

Disregarding the warning of the City’s floodplain engineer who carefully explained the safety hazards posed by development at this location, the council on Zo Qadri’s motion nonetheless approved the variance, with only Alison Alter voting against.   Those on the current council who approved this variance were Mayor Kirk Watson, Natasha Harper-Madison, Vanesa Fuentes, José Velásquez, José “Chito” Vela, Paige Ellis, Ryan Alter and Zo Qadri.

See Austin American Statesman  video of the Memorial Day flooding in 2015 at this site.

The second (Item 131) is to convert a garage into living space within the 25 and 100 year floodplain without raising the building 2 feet above the 100 year floodplain.

Write Council and tell them that public safety should rule on floodplain variances, not developers.  Say “no” to Agenda Items 130 and 131.