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December 7, 2023

Citywide

  • HOME Initiative: 3 Units on SF-Zoned Lots | Approved

November 30, 2023

District: 1

District: 3

District: 5

District: 7

You saved: 13h 18m, 3h 32m

HOME Initiative: 3 Units on SF-Zoned Lots

Citywide | Approved As Amended

The City Council met to debate and vote on the controversial HOME ordinance to allow more housing density in certain single-family zoned neighborhoods. The proposal would enable property owners to have up to 3 units on lots currently restricted to one house through a streamlined permitting process. It also eliminates limits on the number of unrelated adults living together.

Several amendments were proposed and adopted, including:

  • Simplifying floor-area-ratio (FAR) calculations and providing more space for a 3rd small unit on tiny lot.

  • Reducing minimum front yard setbacks from 25ft to 15ft to allow houses closer to streets.

  • Cutting minimum side yard setbacks on corner lots from 15ft to 5ft to enable street-facing townhouses.

  • A 2-month delay on the effective date to prepare city processes/guidance.

  • Coordinating implementation of a preservation "bonus" to incentivize keeping existing houses.

  • Maintaining current short-term rental limitations and tracking data on unit sizes constructed under the policy.

  • Annual reporting for 5+ years on permit counts, housing costs, geographical impacts, infrastructure capacity, environmental metrics, equity measures, and more.

There were over 130 in-person speakers and 50 remote speakers providing testimony during a public hearing.

Opponents cited concerns about gentrification, affordability declines, property tax increases, tree and environmental damage, infrastructure limitations, public safety, inadequate public input, and more. Some called it a "land grab" by investors without community protections.

Supporters argued it is needed to help housing supply, provide "missing middle" housing options, reduce sprawl, and follow a market-driven approach aligned with the Imagine Austin comprehensive plan. They say it allows "gentle density" done properly.

After hours of debate and multiple revisions, the ordinance passed 9-2 with Council Members Kelly and Alter voting against. The policy marks a major shift for housing density in Austin's single-family zoned neighborhoods.

DISTRICT: 1

Colony Park Sustainable Community 7900 Loyola Ln

Northeast Austin | 208.16 Acres | 3,000 Units | Reading: ① - ② -  | Approved

The City of Austin is redeveloping 208 acres of vacant, city-owned land in east Austin into a mixed-use community called Colony Park.

The developer, Catellus Development Corporation, will construct up to 3,000 homes, 700,000 square feet of retail space, roads, utilities, parks and other infrastructure. At least 20% or 600 units must be income restricted affordable housing.

Financing sources will come from multiple public and private sources:

  • Sale of land parcels to third party builders.

  • Tax increment financing using future property tax growth.

  • Housing bonds.

  • Federal community block grants.

  • Developer equity capped at an unknown amount.

The city has already dedicated $3.3 million to reimburse the developer’s expenses. The preliminary financing plan approved by Council allows these public funding sources to pay for all "hard, soft, and development costs."

  • The developer will get a 4% construction management fee on total project costs.

  • The developer will receive an administration fee starting at $800,000/year with 3-5% annual escalation. The city will receive a $250,000/year administration fee.

  • The developer gets a 7.5% fee on "all other proceeds" which is undefined.

  • Developer commission is 3-4% on land sales.

  • Returns to the developer will be calculated in one of two ways, whichever is greater between a "Land Sales Method" and "Waterfall Method." The specifics of the calculations are complex but ultimately allow for a 15-20% IRR.

  • The total project costs are unspecified. It mentions a "peak equity investment cap" for the developer but no numbers are given.

  • The Preliminary Financing Plan approved by Council includes funding sources like land sale revenue, Tax Increment Financing (TIRZ), capital improvement funds, housing bonds, and CDBG funds.

The developer has multiple revenue streams from fees, financing mechanisms that utilize public funding sources, and a complex profit sharing arrangement with the city from project proceeds.

In summary, the City of Austin has established a public-private partnership with incentives aimed to spur the transformation of a long vacant site into a mixed income community.

Staff Report: C814-2014-0110.02.SH
DISTRICT: 7

Brentwood Townhomes 5506 Grover Ave

Brentwood | 2.33 Acres | 195 Units | Reading: ① - ② -  | Approved

A request to rezone property at 5506 and 5514 Grover Avenue and 5515 Roosevelt Avenue from SF-3-NP and MF-4-NP to MF-6-NP was amended to MF-6-CO-NP following opposition from the Brentwood Neighborhood Association. The association expressed concerns about increased traffic and the removal of existing affordable "missing middle" housing on the site.

While some neighborhood residents wrote in support of the original zoning change to allow a 195-unit multifamily development, the association engaged with the developers but ultimately remained opposed to changing the zoning from MF-4 to MF-6. As a compromise, the rezoning request was amended to include a conditional overlay limiting the maximum height to 45 feet and 4 stories.

The neighborhood traffic analysis also influenced the revisions, finding that the development would increase traffic on narrow, residential streets like Grover Avenue by 14-26%, taking them to undesirable levels. Recommendations included sidewalk improvements and a requirement to reassess if the number of units changed.

Attorney: DuBois, Bryant & Campbell, David Hartman
Staff Report: C14-2023-0065
DISTRICT: 1

Ed Bluestein Multifamily 4116 1/2 Ed Bluestein Blvd

East MLK | 9.09 Acres | 285 Units | Reading: ① - ② -  | Approved

The 9-acre Ed Bluestein Blvd parcel sought a routine rezoning from general commercial to commercial mixed-use to allow for more flexible development. The case glided through approvals, with staff citing consistency with the area's neighborhood plan and the city's greater housing goals. Minimal debate ensued over the largely vacant freeway-abutting lot. Its rezoning fills a gap between existing apartments and industrial buildings, logically enabling mixed-use.

Owner: : Robert Tiemann, Trustee of the Robert Miller Tiemann Trust
Attorney: Jackson Walker LLP, Henry Gilmore LinkedIn
Staff Report: C14-2023-0084
DISTRICT: 1
East MLK | 3.44 Acres | 244 Units | Reading: ① - ② -  | Approved

Heartwood Group requested to rezone approximately 3.44 acres SF-3-NP to MF-2-NP in order to develop 244 multifamily units, with 40% of the units being affordable at 80% MFI. They faced pushback from the community concerned about the adjacent historic Bethany Cemetery. After being postponed to allow time for additional archaeology review to ensure no unmarked graves would be disturbed, the rezoning request was approved by the Planning Commission on October 10, 2023 and subsequently by City Council.

Developer: Heartwood Group, Chris Affinito LinkedIn
Attorney: Drenner Group PC, Leah Bojo
Staff Report: C14-2023-0038.SH
DISTRICT: 9

Hyatt West PUD Amendment 151 S 1st St

South Central Waterfront | 3.321 Acres | Reading: ① - ② -  | Approved

The 3.3-acre Hyatt West property along Lady Bird Lake sought to amend its PUD to remove minimum parking requirements, prompting debate between competing environmental priorities surrounding water conservation versus reduced car dependence.

After objections over $2 million in redesign costs to add reclaimed water plumbing, the Planning Commission approved the parking reduction but required partial onsite reuse of reclaimed water in a compromise attempt.

Here it receives its 3rd reading approval at Council.

Attorney: Drenner Group, Leah Bojo
Staff Report: C814-06-0106.03

Postponements
DISTRICT: 3

Vargas Mixed-use 400 Vargas Rd

Montopolis | 4.31 Acres | 149 Units | Reading: ① - - ③ | Postponed (Developer)
Owner: Jay Chernosky | Agent: Thrower Design, Victoria Haase | Neighborhood Group: Montopolis Neighborhood Association Plan Contact Team
Staff Report: C14-2022-0107
DISTRICT: 5
South Austin | 3.75 Acres | 46 Units | Postponed (Council Member R. Alter)
Developer: The Geyser Group, Matt McDonnell LinkedIn, Dick Hall LinkedIn | Attorney: Armbrust & BrownMichael Whellan | Neighborhood Group: Matthews Lane Neighborhood Association

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