Background

Austin City Council adopted Ordinance No. 20260521-056 on May 21, 2026, creating the Citywide Density Bonus Program (DBC), and amending City Code Title 25 (Land Development Code) to create five new density bonus combining districts.​

As part of adoption of the Citywide Density Bonus Program, City Council also approved an amendment by Council Member Qadri. This amendment directed the City Manager to return to City Council with a memorandum providing policy options and recommendations for implementing a fee-in-lieu (FIL) option for rental units in the Citywide Density Bonus Program, and an ordinance for action to apply said recommendations. Staff provided a memorandum with these recommendations on July 24, 2026. This item would modify chapter 25-2 of the Land Development Code to implement the staff recommendations. 

Summary of Amendment

This amendment would establish eligibility requirements for use of the rental fee-in-lieu option. Properties within one-half mile of Austin Light Rail Phase 1 and priority extensions that utilize the Citywide Density Bonus Program will not be eligible to use fee-in-lieu and will be required to build income-restricted units onsite in order to fulfill the affordability requirements of the program. This one-half mile boundary aligns with the ETOD Boundaries map, which can be found below, and in Austin City Code Section 25-2, Appendix G.

This is a map of the ETOD Boundaries around Austin Light Rail Phase 1 and its priority extensions. The boundary is a 1/2 mile radius around the light rail line.

Staff Contact

Warner Cook, warner.cook@austintexas.gov, 512-974-7220 

planned
planned

City Council

September 10, 2026 - to be considered by City Council

complete
complete

City Council

May 21, 2026 - City Council adopted the Citywide Density Bonus Program. Watch discussion. 

As part of adoption, City Council also approved an amendment by Council Member Qadri. This amendment directed the City Manager to return to City Council with a memorandum providing policy options and recommendations for implementing a fee-in-lieu option for rental units in the Citywide Density Bonus Program, and an ordinance for action to apply said recommendations. 

complete
complete

Planning Commission

April 28, 2026 - Planning Commission previously recommended that projects under the Citywide Density Bonus Program be allowed to use rental fee-in-lieu. Therefore, this item does not require additional Planning Commission consideration. Watch discussion.