Metropolis Council is about to approve a decision recalibrating the Downtown Density Bonus program’s reasonably priced housing charges, a primary try to select up the items of the town’s failed Land Improvement Code rewrite.
Nearly all Council members have mentioned they assist recalibrating the charges, and none have mentioned they’re opposed. However the particulars – how the charges must be recalibrated and the way usually – are nonetheless up for debate.
The Downtown Density Bonus program provides builders extra ground space ratio (FAR) in alternate for group advantages, together with a payment towards reasonably priced housing in lieu of offering on-site reasonably priced housing. This system additionally requires builders to satisfy city design and inexperienced constructing requirements.
If not for a decide halting the LDC rewrite final 12 months, the brand new charges would already be in place. Even with out the LDC, the town can nonetheless change the charges. A resolution, if handed Thursday, would start that course of.
Council Member Kathie Tovo, who sponsored the decision, desires to make use of charges calibrated in 2019 as a part of the Land Improvement Code rewrite. Others, corresponding to Council Member Paige Ellis, steered recalibrating the charges to present market situations earlier than adopting new ones.
“I’m actually eager on transferring that ahead, and never letting the proper be the enemy of the great,” Tovo mentioned.
Right here’s how the present charges (high) examine to the 2019 charges (backside):
The 2019 charges, nonetheless, can’t be straight utilized to the present code.
“Due to variations between the present code and the proposed code,” Housing and Planning Officer Erica Leak mentioned, “we must return and and principally type of translate and remap the proposed charges.”
Housing and Planning Division employees defined in a memo that the LDC charges “have been calibrated primarily based on the location’s base zoning (CC and DC within the proposed LDC), not the downtown sub-district as they’re at this time.” Different components of the Land Improvement Code, corresponding to parking maximums and limitless FAR, additionally affected the 2019 calculations.
Tovo additionally desires business and lodge tasks to pay charges, as proposed in 2019.
If Council decides to make use of the 2019 charges, metropolis staffers mentioned they might tweak them to suit the present code by June. Recalibrating the charges for present market situations would take till August.
Leak mentioned, “It’s actually potential that what was proposed as a part of the Land Improvement Code is not right, for particularly the business area.”
Improper calibration may have unintended penalties. Actual Property Council of Austin CEO Dianne Bangle instructed the Austin Monitor in an e mail that “it is extremely necessary … that (density bonuses) are appropriately calibrated. If they’re set with out regard for market forces, builders will probably change the venture to adjust to the code with out the density bonuses.” Bangle mentioned that when carried out appropriately, density bonuses “profit everybody.”
Whether or not the charges will probably be modified yearly or much less incessantly remains to be up for dialogue. Tovo argued that the charges must be modified yearly as a part of the town’s price range course of. Metropolis employees recommends that the modifications happen each three years “to offer predictability for the event group,” Leak mentioned.
The decision would additionally amend or take away a part of the Downtown Density Bonus program that enables builders to exceed ground space ratio limits, translating to taller buildings. Tovo desires to ban these FAR exceptions till Council decides what group advantages must be required for that further bonus space. FAR exceptions for three towers in the Rainey Street District handed Council earlier this month.
Housing advocacy teams cheered the payment revision, however mentioned they might not assist hardening FAR limits. “Repealing or amending this part may jeopardize funding for this essential group want,” Planning Our Communities mentioned in a press release. HousingWorks Austin and Austin Housing Coalition launched comparable statements. Mayor Professional Tem Natasha-Harper Madison, amongst different Council members, additionally opposed the FAR exception clause.
Tovo emphasised there’ll nonetheless be time to determine particulars after the decision passes: “By passing the decision, it doesn’t impact the change. It simply begins the method of getting that dialog.”
After implementing the modifications to the Downtown Density Bonus program, a number of Council members hope to recalibrate different density bonus applications and add new ones across the metropolis. Harper-Madison indicated that one other decision may very well be forthcoming, however didn’t present a timeline.
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