Austin pursues code amendments to make granny flats, homes in commercial areas easier to build

City officials have initiated changes to Austin’s zoning code in an effort to address one of the Texas capital’s most pressing issues.

Austin City Council met on Dec. 9 for its last regular meeting of the year, and it kick-started code amendments and other efforts that could help more affordable housing units get on the ground, which include expanding access to accessory dwelling units and allowing more residential uses in commercial zones.

Council’s action began the process of changing the city code, which will also require input from stakeholder groups and city commissions. Council will consider final approval for the amendments at a later date.

For months, Council has discussed the need to take a piecemeal approach to altering the land development code, which determines what can be built where in the city, since a previous multi-year effort to more broadly rewrite the code is held up by a lawsuit. Advocates for change argue that Austin’s zoning rules from the 1980s need to be updated to compensate for the city’s new standing as one of the biggest cities in the United States. It would encourage more dense development, which some believe could make the creation of affordable units more accessible.

Others worry sweeping changes to the code could impact quality of life if dense developments rise near existing neighborhoods.

From 2010 to 2020, the city of Austin population shot up 171,465 to 961,855, or 21.7%, according to the U.S. Census Bureau. During the same time, the median home value rose 71%, according to city data.

At a Dec. 7 work session, Austin Mayor Steve Adler noted that Council needs to make progress on as many changes as it can to address the city’s biggest issue.

“The existential challenge we have right now is housing costs, rental costs and home price, which are just over the last 12 months going through the roof,” Adler said. “Trying to find as many different ways as we can get at this and better understand this, I support because it’s the issue right now in our city.”

Council approved the following items:

• To initiate code amendments to allow more residential uses in commercial zones. That will include areas zoned general commercial services, community commercial, general office and limited office. City Manager Spencer Cronk will still have to present the proposed changes to the Housing and Planning Committee before Council can give final consideration to the amendments. Council will also ask staff to add affordable housing requirements to the language and to incentivize ground floor retail uses. This effort has been spearheaded by Adler and Council Member Alison Alter.

• Another resolution kick-starts code amendments that will expand the use of accessory dwelling units. A robust resolution from Council Member Kathie Tovo asks the city manager to focus on a host of tasks that would encourage and streamline the creation of accessory dwelling units on single-family lots, which are detached units also known as granny flats. The idea is to make these units more accessible by eliminating current requirements related to age, ability, occupation and family status. One task is to propose a new Chapter 380 policy focused on affordable housing development and preservation that includes income-restricted ADUs. The resolution will also ask Cronk to estimate the amount of staff time and resources that it would take to create a “menu of pre-approved building plans for detached ADUs” before Feb. 1, 2022. Tovo’s proposal has received widespread support from Council thus far, though a recent study from the University of Texas at Austin found that ADUs may have a mixed effect on affordability, according to a recent report from KXAN.

• A public hearing has been set for Jan. 27 to consider changes to Austin’s vertical mixed-use program. Council approved Nov. 18 a resolution to expand the city’s VMU program, which allows developers of mixed-use projects to bypass certain zoning restrictions if they set aside residential units for lower-income renters or owners. The proposed changes, sponsored by Council Member Ann Kitchen, would allow for greater height in projects along transit corridors if developers agree to add even more affordable units in their projects. A public hearing is one of the next steps before Council can make these changes official.

• Council directed city staffers to perform a cost analysis on developing different types of housing in Austin. That will include a cost analysis for building single-family homes, duplexes, townhomes, small multiplexes and mid-rise multifamily developments, according to city documents, plus ways to lower those costs. Developers have long said that the lengthy development process adds time and money to final project costs, and the latest obstacles have included inflated land prices, increased construction material costs and increased developer fees, such as those under the Downtown Density Bonus Program. Staffers will need to present findings by December 2022 with an interim update by May 2022. This is sponsored by Council Member Natasha Harper-Madison.

Courtesy of Austin Business Journal. See the full article here.