In Review - Austin City Council’s First Half of 2024 (Part 3)
In Review - Austin City Council’s First Half of 2024 (Part 3)
HOME 2 Continues Move Toward Density, Affordability
Following up on the passage of the first HOME package of land use reforms late last year, this spring saw City Council was pass the supplementary HOME 2 slate of code changes. As before, the goal of supporters was to increase housing density and improve transit-oriented development. Key actions include:
Reducing Land Requirements for Single-Family Homes:
The Council voted to significantly reduce the amount of land required for single-family homes. This change aims to address the city's housing affordability crisis by allowing for greater housing density. The decision followed a two-day hearing with passionate testimony from both advocates and opponents.
Allowing Denser Development Near Single-Family Homes:
The Council approved measures to allow apartment buildings to be built closer to single-family homes. This move is part of a broader effort to loosen housing restrictions and increase the supply of housing.
Promoting Transit-Oriented Development (ETOD):
The Council voted to expand the city's transit-oriented development plans, particularly around the planned light-rail line. This includes creating an "ETOD overlay" that allows for taller, denser buildings near transit stations, with incentives for affordable housing and community benefits.
Compatibility Requirement Changes:
The Council drastically reduced the "compatibility" requirements, which previously limited building heights up to 540 feet from single-family homes. This distance has been reduced to 75 feet, making it easier to develop dense housing near single-family properties.
The decisions are part of a broader strategy to address high housing costs and improve affordability in Austin. Mayor Pro Tem Leslie Pool led the reforms, which also tie into the city's equitable transit-oriented development (ETOD) policies, aiming to guide development with a focus on affordability, accessibility, and equity around transit stations.
As part of the new regulations, city staff will rezone properties within a half-mile of planned Project Connect rail stations to support these goals. The ETOD plans include provisions for ground-floor retail and community uses, as well as measures to address displacement pressures around bus and rail stops.
Homelessness Strategies Shift As Federal Dollars Dwindle
With funding from the federal American Rescue Plan coming to and end by the end of 2026, City and staff are exploring a number of options regarding homelessness, including restarting funding for homelessness prevention programs that were reduced during the Covid-19 pandemic in favor of rapid rehousing efforts. The return to preventative measures to reduce homelessness would work alongside existing programs aimed at rehousing those without a home, and providing permanent supportive housing when needed.
At a spring Public Health Committee meeting, representatives from Best Single Source Plus (BSS+), a coalition of 13 homelessness service providers, discussed the need to return to prevention programs. Committee members were surprised by the city's shift away from prevention programs, which are generally more cost-effective than rehousing or permanent supportive housing.
Council plans to direct staff to improve processes in coordination with Travis County; optimizing the waitlist for housing, enhancing pathways to permanent supportive housing, and evaluating the state of homelessness with agencies and philanthropic groups.
Since the start of federal funding, the city has spent over $94 million of the $95.3 million allocated for homelessness programs. Council recently approved an eight-month, $500,000 extension to continue the Marshalling Yard emergency shelter operations through March 2025 to continue offering essential services to about 300 clients daily including case management, mental health care, meals, pet-friendly facilities, and more. One of the foremost issues ahead of that closure is finding alternative shelter capacity, and moving existing users into housing whenever possible.
HealthSouth Redevelopment Goes On Pause
It appears the city will delay the redevelopment of the former HealthSouth property downtown due to real estate market conditions and high interest rates, which pose challenges for new projects. In a February work session, Council reviewed four development scenarios presented by the Housing Department and Economic & Planning Systems consulting firm.
These scenarios prioritize affordable housing while considering Capitol View Corridor restrictions and incentives from the Downtown Density Bonus Program.
Mandy DeMayo, director of the Housing Department, recommended pausing the redevelopment until the summer or fall when market conditions might improve, and more information about nearby projects and the FY25 budget is available. The four scenarios include:
Hybrid Scenario:
Provides the most on-site affordability with 178 affordable units.
Requires a $17 million upfront subsidy from the city.
Would need to wait until at least 2028 due to solicitation and financing assembly requirements.
Market-rate portion could generate $51 million, funding an additional 267 affordable units elsewhere in the city.
Downtown Density Bonus Scenario:
Focuses on market-rate housing, generating over $300 million in revenue.
Revenue could fund 1,589 affordable units in future developments.
Rainey District Density Bonus Scenario:
Balances fee-in-lieu and on-site affordability with 93 affordable units.
Market-rate portion projected to generate $237 million, funding 1,237 affordable units elsewhere.
Payment in Lieu of Taxes Scenario:
Maximizes market-rate housing with no on-site affordable units.
Estimated to produce $330 million in ground lease revenue, funding over 1,700 affordable units in other parts of the city.
The city’s previous agreement with Aspen Heights for a mix of affordable housing and other uses on the site failed due to changing market conditions. The new scenarios aim to balance immediate and long-term affordable housing needs with financial feasibility.
City Council members showed an inclination to hold off on making a decision, preferring to wait for better market conditions and more clarity on surrounding projects. The goal is to find a sustainable and effective plan for redeveloping the HealthSouth property that maximizes affordable housing and financial returns for the city.
City Criticized Over New Scooter Regulations
Council has also received pushback on new regulations governing how e-scooters and other micromobility devices operate in Austin.
Richard Mendoza, director of Transportation and Public Works, explained to the Council’s Mobility Committee that the new rules, effective April 1, were developed in collaboration with Bird and Lime starting last fall. Mendoza emphasized that while he supports the service scooters provide, there have been challenges related to safety, ADA compliance, storefront access, and environmental impacts.
Key points of the new regulations include:
Reducing licensed vendors from three to two.
Cutting the number of scooters from over 14,000 to 8,700, with a potential further reduction to 6,700.
Limiting the maximum number of scooters downtown from 4,500 to 2,250.
Discontinuing dockless e-bikes, while allowing seated scooters.
Reducing maximum speeds from 15 mph to 10 mph overnight (10 p.m. to 5 a.m.) in entertainment districts to reduce serious head injuries.
Creating designated staging areas for scooters.
Mendoza stated that different cities have addressed scooter issues in various ways, from total bans to infrastructure development. Austin chose to partner with micromobility companies to address the challenges swiftly due to safety concerns.
The Urban Transportation Commission, however, wants the city to rework some of these regulations. The commission approved a revised recommendation, crafted by Commissioner Spencer Schumacher, which reduced the detailed text regarding the number of vendors, total micromobility devices, and speed limits. The recommendation, to be reviewed by the City Council, stresses the need for regulations that align with the Austin Strategic Mobility Plan’s goals of increasing device availability and usage.
The commission also called for more data and public input on the need for greater regulations. Mendoza reiterated that the changes aim to prioritize public safety and maintain access for people with disabilities while addressing the clustering of scooters.
Conclusion
And that’s a wrap for the first half of 2024! In the near-term (Q3 2024) we’ll have the selection of Austin’s next police chief, a finalized contract between the city and Austin Police Association, and an executed FY 24/25 city budget.
//A.J. Bingham
aj@binghamgp.com