As first reported by Bloomberg News, Adler is planning to push for a housing bond package of between $300 million and $500 million during his final year in office. While development of a potential bond package is still in its early stages, the proposal could be put on the November election ballot as funds from Austin's record 2018 housing bond package dry up.
Whether a new bond is possible without requiring a city tax increase as well as details on its size and which housing initiatives it would support have yet to be determined.
Austin voters most recently authorized borrowing $250 million for the city's affordable housing efforts in 2018 through a multi-part municipal bond ordered by council. Those seven 2018 propositions also sent hundreds of millions of dollars to community facilities, transportation and public safety, and each passed with at least 70% support.
The quarter-billion-dollar housing allocation continues to be used on city land purchases, home repair programs and funding for affordable housing development.
Adler's backing of a new bond would build on his call last year for city officials to focus on relieving the Austin area's housing "crisis" that spurred several consensus adjustments to city building and development rules in recent months. That process has served as a more gradual workaround to Austin's stalled land development code rewrite that rose to the forefront at city hall before the COVID-19 pandemic and was held up both by divisions on the council dais and eventually legal action from residents.
The city appealed after a Travis County judge ruled against Austin and halted the code update in 2020. A decision on that case from the 14th Court of Appeals could decide the fate of the comprehensive code revision this year.
Whether or not the land development code changes can move forward, council is likely to pursue additional tweaks to development rules this year through further planning and housing policy proposals. One such item, an expansion of the city's vertical mixed-use affordability program that council passed in November, could also be further adjusted early this year.
The city remains in the midst of a housing crunch that saw home sales and prices skyrocket to record levels through 2021. According to data from the Austin Board of Realtors, Austin median home prices hit an all-time December high of $550,000 last year—a 19.31% jump from the $461,000 reported in December 2020. Monthly home prices peaked last year at $575,000.
