To address a growing need for affordable housing in the city, the Austin City Council revamped the Downtown Density Bonus Program June 27 by recalibrating a fee paid by residential developers in the urban core in place of the developers providing affordable housing units. Council also allocated the money generated from the program fees to the affordable housing units.
"We need to give developers incentives for adequate housing for the chronically homeless and we need bonus fees that will actually work as an incentive, not as an escape clause," said John Wright, senior pastor at First United Methodist Church of Austin, who spoke at the meeting.
The city council modified the program so that Central Urban Redevelopment zoning may not be used to increase the floor area or height of a development and get around the program. Council also recalibrated the fee to range from $3 to $10 per additional square foot, depending on where the residential development is located in the downtown area. The area where the program applies is roughly bounded by Lady Bird Lake, Martin Luther King Jr. Boulevard, I-35 and Lamar Boulevard. Rainey Street is excluded from the area.
Mayor Lee Leffingwell said he supported dedicating the money for low-barrier permanent supportive housing because the city has "prioritized" in the past, but it has not worked to the council's satisfaction












