Density Bonus Fee In Lieu

At a glance

• What: Council changed the Citywide Density Bonus Program on September 10, 2026, so projects must provide on-site income-restricted rental units rather than pay a fee in lieu, and set priorities for spending fee-in-lieu money already collected.
• Where it stands: Ordinance No. 20260910-031 approved 11-0 after a public hearing; Resolution No. 20260910-019 on spending priorities passed on consent.
• Next: None recorded.

Action on September 10, 2026

• Item 31, amending City Code Section 25-2-656: approved on Council Member Alter's motion, Council Member Duchen's second, 11-0. The fiscal note says fee-in-lieu collections may fall over time, offset by on-site affordable units.
• Item 19: resolution prioritizing how fee-in-lieu funds should be spent on affordable housing, setting a target income level for City investments; approved on consent 11-0.

Sources

• City Council regular meeting minutes, September 10, 2026: https://services.austintexas.gov/edims/document.cfm?id=482888

Log

2026-09-10 - City Council

Fee-in-lieu option for rental units ended, 11-0; spending-priority resolution on consent.