Update: September 28, 2021

City staff posted a memo announcing that they are extending the timeline for Council consideration of the recalibrated density bonus fees to November 2021.
On September 15, staff presented a new range of recommended density bonus fees for residential and commercial properties to the Downtown Commission, outlined in the chart below along with the progression of the density bonus fees to date.

	Original Fees Set in 2014	May 20 Temporary Fees	Aug. Draft Staff Recommendation	Sept. Downtown Commission Recommendation
Residential Rainey	$5/sq. ft.	$5/sq. ft.	$5-18/sq. ft.	$5-18/sq. ft.
Residential CBD	$10/sq. ft.	$12/sq. ft.	$12-18/sq. ft.	$12-24/sq. ft.
Residential not CBD or Rainey	$3/sq. ft.	$10/sq. ft.	$10-18/sq. ft.	$10-16/sq. ft.
Commercial CBD	$0/sq. ft.	$18/sq. ft.	$3-18/sq. ft.	$2.50-18/sq. ft.
Commercial not CBD	$0/sq. ft.	$12/sq. ft.	$3-12/sq. ft.	$2.50-12/sq. ft.

*Use this link for the full presentation to the Downtown Commission.
It is important to note that staff raised the upper limit on the residential CBD fee, and lowered the range on both of the commercial fees.
Staff also posted an updated model that they used to calibrate the new fee ranges above. You can download this model via this link.
Between now and November, RECA and the Downtown Austin Alliance will work with Housing and Planning staff to provide feedback on the model and the latest fee range from the chart above.
The updated model does not account for the recent increase in Parkland Dedication fees that will go into effect October 1; staff was unaware of this fee increase and indicated that they plan to use this time to add those fees to the model.
The RECA expert density bonus team is reviewing staff’s model, testing fees in the new range, and continuing to work to achieve the best outcome before the November Council consideration.
If you have any questions about the process or would like to participate, please email Alina Carnahan, RECA Director of Advocacy.

Background

The City of Austin uses a density bonus program in downtown and other areas of the city to provide developers with additional height and floor-to-area ratio (FAR) in exchange for community benefits, including affordable housing and green building. Fees for the density bonus programs were last changed in 2014. 
In April 2021, Council voted on an emergency item to require City staff to recalibrate the downtown density bonus program and return with new fees by August. On May 20, Council voted on temporary fees that will be in effect until the new, final fees are brought by City staff and voted on by Council. 
RECA has been working with City of Austin Housing and Planning staff, who have twice extended the timeline for Council consideration of final fees, to improve the density bonus calibration model, the data inputs for the model, and the ways they arrive at their fee.
RECA is continuing to engage with the City and our expert members on this in order to potentially arrive at a model we support and reasonable fees. RECA needs your help to continue to engage in research and work toward a better outcome. If you would like to contribute to the conversation, please reach out to Alina Carnahan, RECA’s Director of Advocacy: [email protected] or 512-320-4151.

Density Bonus Changes Timeline

• April 8, 2021
  • Council Member Tovo brings forth a resolution calling for the recalibration of the downtown density bonus program; item is postponed
• April 22, 2021
  • Council passed a resolution calling for the recalibration of the downtown density bonus program
  • April 22 Council Resolution
• May 20, 2021
  • Council passed an ordinance to implement temporary density bonus fees
  • May 20 Ordinance
• May 31, 2021
  • Temporary density bonus fees passed on May 20 take effect
    • Fees will be effective until final fees are implemented
• July 21, 2021
  • City staff shares notice of extension of density bonus Council consideration to September
  • Staff memo
• August 13, 2021
  • City staff releases draft fee recommendations
  • Staff memo
• September 15, 2021
  • City staff presents updated draft fee recommendations to Downtown Commission
  • Staff presentation
• September 17, 2021
  • City staff shares notice of extension of density bonus Council consideration to November
  • Staff memo
• November 2021 (TBD)
  • City staff present final recommended fees for Council vote

​Downtown Density Bonus Fees over Time

	Original Fees Set in 2014	May 20 Temporary Fees	Aug. Draft Staff Recommendation	Sept. Downtown Commission Recommendation
Residential Rainey	$5/sq. ft.	$5/sq. ft.	$5-18/sq. ft.	$5-18/sq. ft.
Residential CBD	$10/sq. ft.	$12/sq. ft.	$12-18/sq. ft.	$12-24/sq. ft.
Residential not CBD or Rainey	$3/sq. ft.	$10/sq. ft.	$10-18/sq. ft.	$10-16/sq. ft.
Commercial CBD	$0/sq. ft.	$18/sq. ft.	$3-18/sq. ft.	$2.50-18/sq. ft.
Commercial not CBD	$0/sq. ft.	$12/sq. ft.	$3-12/sq. ft.	$2.50-12/sq. ft.

Information from the City of Austin; all fees are assessed per square foot of bonus area. 
The former fees were in effect from 2014 to May 30, 2021. The current temporary fees have been in effect since May 31, 2021, and will remain in effect until Council votes on and the City implements final new fees through the process outlined in the April 22 resolution.

Information is current as of September 28, 2021.