City Council Amendments Summary (5.17.24)
The following notes were prepared by Susan Moffat, currently the vice chair of the Hyde Park Neighborhood Plan Contact Team. Ms. Moffat has lived in Austin for over 40 years, more than 30 of them in Hyde Park. As a tri-president of the Hyde Park Neighborhood Association in the 1990s, she was a leader in the fight to create Austin’s first mixed-use development at the Triangle, defeating the original developer’s plan for a massive strip mall at that location. In addition to her work on numerous city and AISD task forces, she served as the Joint Subcommittee’s appointee to the CodeNEXT Advisory Group, representing the city, county and AISD. While these notes provide an overview of the current proposed code changes, Ms. Moffat strongly encourages everyone to visit the city website and read the ordinances and staff reports for themselves.
On May 17th, after roughly 14 hours of often heated public testimony, the Austin City Council approved the following ordinances with amendments: HOME Phase Two, Equitable Transit Oriented Development (ETOD/DBETOD), Citywide Compatibility Changes, and EV Charging Stations.
Below is a summary of the Council amendments to ETOD, HOME 2, and Compatibility, as well as an additional agenda item brought by CM Zo Qadri, which amended some provisions of existing city code related to affordable housing. For those who aren't up to plowing through the whole attachment, I've provided a thumbnail sketch below of the major amendments to ETOD/DBETOD and HOME 2 that are most likely to affect Hyde Park.
ETOD/DBETOD
Below are the chief amendments to the ETOD/DBETOD ordinances, which explicitly supersede both Hyde Park NCCDs and will apply from Guadalupe to the west side of Avenue H:
• Any structure located less than 50 feet from a triggering property - meaning a single family home or duplex - may not exceed 60' in height (the original draft would have allowed 90' heights at a distance of 25' from a triggering property for properties using the ETOD density bonus program known as DBETOD).
• Two subdistricts are created for ETOD/DBETOD. Subdistrict 1 applies to multifamily and commercial properties located in the first quarter mile from the Light Rail Phase One route or Priority Extensions; this allows a building using the DBETOD program to exceed the maximum building height in the base zoning district by 60 feet, but caps it at 120' total (per the above amendment, it would still be limited to a 60' height if it is within 50' of a triggering property). Subdistrict 2 applies to the remaining multifamily and commercial properties up to one half mile from the route and extensions; this allows a building using the DBETOD program to exceed the base zoning by 30' but caps it at 90' total, assuming it isn't within 50' of a triggering property (the original draft would have allowed building heights of 120' up to half a mile away for properties using the DBETOD program).
• The city manager is directed to provide recommendations to incorporate enhanced street standards outlined in the Great Streets Program, University Neighborhood Overlay, and South Central Waterfront and apply as appropriate to DBETOD overlay.
• The city manager is directed to provide recommendations to incentivize and encourage preservation of culturally and/or historically significant buildings, facades, and sites along transit routes while allowing for increased height and density.
• If only a portion of a property falls within an ETOD district, it will not be rezoned now, but may be rezoned in the future. Owners of such properties will still have access to the DBETOD program should they choose to use it.
• There will be a 90-day delay on implementation on ETOD/DBETOD to allow city staff to get up to speed.
There were no changes to the draft fee-in-lieu provision for ownership units under the DBETOD program, potentially allowing luxury condo projects to avoid providing any on-site affordable units in exchange for paying a fee-in-lieu. In addition, an amendment by CM Pool effectively lowered the required percentage of affordable units for some rental projects under the DBETOD program.
HOME Phase 2
HOME Phase 2 is less likely than ETOD to produce significant impacts in Hyde Park because, as CM Zo Qadri publicly stated at the May 6th HPNA meeting, this ordinance supersedes base zoning where there is a conflict, but it does not supersede NCCDs or other overlays. This means that where an NCCD is silent, HOME 2 will control (or if HOME 2 is silent, the base zoning will control). But where an NCCD conflicts with HOME 2 or base zoning, the NCCD will control.
Because both the Hyde Park and North Hyde Park NCCDs already establish minimum lots sizes, maximum building heights, minimum setbacks, and impervious and building cover limits, many of the HOME 2 changes will not apply here. For example, City Council approved an amendment by Mayor Watson to reduce the minimum lot size to 1800 square feet; however, both Hyde Park NCCDs require a minimum lot size of 5750 square feet in most residential districts so that lot size will continue to control. Links to both Hyde Park NCCDs are available here:
https://www.austinhydepark.org/hydeparkplanningzoning
However, please note the City Council already approved significant code changes last fall, which will apply in Hyde Park. These include allowing up to three dwelling units on a single-family site, removing occupancy limits for unrelated adults, eliminating onsite parking requirements, and removing many Residential Design and Compatibility regulations a.k.a. the McMansion ordinance. HOME 2 also allows further modifications of the McMansion ordinance.
After considerable public outcry, City Council amended HOME Phase 2 to prohibit Short Term Rentals (STRs) until April 1, 2025, or until a superseding ordinance is passed. However, this prohibition will only apply to projects on lots that are newly subdivided under the HOME 2 ordinance, allowing any existing STRs to remain in operation. Council members and city staff acknowledged the impacts STRs are having on Austin's housing supply and expect to bring a proposal tightening restrictions on STRs generally in the coming months. There appeared to be a strong consensus that the new code changes are intended to create housing for Austin residents, not more tourist accommodations.
Similar to the ETOD ordinance, there will be a 90-day delay on implementation of HOME 2, with an additional six-month delay in specific areas identified as at risk for wildfires or displacement of low-income residents. Council also directed the city manager to explore developing an "equity overlay," which would exempt areas at risk for displacement from some or all provisions of HOME 2.
Finally, if you're interested in watching any or all of the public testimony and Council deliberations on these items, the video is available in the ATXN archives here:
https://austintx.new.swagit.com/videos/305483
Best,
Susan Moffat
HPNPCT Vice Chair
Summary of City Council Amendments: May 17, 2024
Amendments are summarized below in the order Council took them up, with agenda item numbers, amendment authors, and amendment numbers noted, though the mayor acknowledged that some of the amendment numbers may not have matched what appeared in the online backup.
Amendments with particular relevance to Hyde Park are bolded and highlighted in magenta below.
Please note that Council divided the ETOD ordinance into two separate items (3 and 5) and took up Item 5 first. Agenda Item 2 (the posting for the public hearings) and Item 7 (the EV Charging Station item, which passed without controversy or amendments) are omitted from this summary. '
Item 1 - Approve an ordinance amending City Code Chapter 4-18 related to density bonus and incentive program requirements for redeveloping existing non-residential space and existing multi-family structures. The following amendments to the existing code chapter were approved.
CM Qadri:
(1) Provides additional regulations for density bonus programs to try to avoid displacing residents, including increased relocation benefits and more stringent replacement requirements; allows Council to waive replacement requirements for a variety of reasons.
(2) Directs the City Manager to explore more tools to ensure right-to-return especially near transit, calls for more cost analysis and stakeholder input, and asks city staff to return to Council with recommendations.
CM Fuentes:
(1) Directs the City Manager investigate the legal feasibility of applying the city's preference policy beyond the Community Land Trust program to all affordable units to increase compliance and extend the preference policy to all density bonus programs; directs the City Manager to develop a template for an affirmative marketing policy and explore strategies to increase compliance.
CM Pool:
(1) Amends relocation benefits to provide a payment equal to the average of six months rent within a one-mile radius; requires approval by the city's director of economic development.
Item 4. Citywide Compatibility Standards. The following amendments were approved to the base motion (staff version), available here: https://services.austintexas.gov/edims/document.cfm?id=428728
Mayor Watson:
(1) Requires an annual impact report on citywide compatibility changes; relevant departments will have discretion to identify necessary data points for the report.
Compatibility changes would apply in Hyde Park where the NCCDs are silent and where they are not already superseded by ETOD.
Item 5. ETOD Density bonus program (DBETOD). The following amendments were approved to the base motion (staff version), available here:
https://services.austintexas.gov/edims/document.cfm?id=428733
CM Pool:
(1) Provides a "tiered approach" to affordability to match existing density bonus programs. As described, it would tie affordable unit percentages to the height of a building, which effectively lowers the percentages of affordable units originally proposed for the DBETOD program. CM Pool provided a revised copy of her amendment on the dais so the new language wasn't entirely clear, but her stated rational was that the higher percentages of affordable units wouldn't be achievable in the current market slump. City staff indicated they would revisit this issue next year by which time they hope market conditions will have improved.
(2) Raises the length of time an existing business must have been in continuous operation to be eligible for replacement/return benefits; reduces the maximum square footage for food sales and other small format uses to be eligible for these benefits; removes custom manufacturing, pet services, and veterinary services from the eligibility list.
(3) Allows existing gas or service stations to transition to EV Charging Stations as permitted use.
CM Vela:
(1) Allows a DBETOD development to trade affordable housing for providing transit supportive infrastructure.
(2) Adds civic uses to count toward the required percentage of ground floor commercial activations.
CM Fuentes:
(1) Directs the city manager to prepare recommendations to prohibit Short Term Rentals in an ETOD district, and to explore strategies to increase STR licensing compliance and optimize revenue collection, including Hotel Occupancy Taxes.
Mayor Watson:
(1) Directs staff to provide an annual impact report on ETOD/DBETOD.
(2) Requires that any structure located less than 50 feet from a triggering property may not exceed 60' in height (staff version would have allowed 90' heights at a distance of 25' from a triggering property).
(3) Creates two subdistricts for ETOD/DBETOD. Subdistrict 1 allows a building to exceed the maximum building height in the base zoning district by 60 feet, but caps it at 120' total. Subdistrict 2 allows a building to exceed the base zoning by 30' but caps it at 90' total.
CM Qadri:
(1) Directs the city manager to provide recommendations to incorporate enhanced street standards outlined in the Great Streets Program, University Neighborhood Overlay, and South Central Waterfront and apply as appropriate to DBETOD overlay.
(2) Directs the city manager to explore options and return to Council with recommendations to incentivize and encourage preservation of culturally and/or historically significant buildings and facades that contribute to a walkable, transit-oriented pedestrian realm along frontage of light rail corridors, while allowing for increased height and density, and provide similar recommendations for culturally and historically significant sites within half a mile of transit corridors.
CM Ryan Alter:
(1) Adds alleyways to requirements for sound and lighting restrictions.
Item 3. Rezones property located within half a mile of Light Rail Phase One and Priority Extensions. Note: CM Alison Alter recused herself on this item because her home is in an ETOD district; she is the only Council member to be directly affected by this ordinance.
The following amendments were approved to the base motion (staff version), available here: https://services.austintexas.gov/edims/document.cfm?id=428334
Mayor Watson:
(1) Provides that if a portion of a property falls within an ETOD district, it will not be rezoned now, but could be rezoned in the future. Property owners will still have access to the DBETOD program if they choose to use it.
(3) Creates two subdistricts within the DBETOD, as outlined above in the Mayor's amendment to Item 5. Subdistrict 1 applies to properties within .25 miles of the Phase 1 Light Rail and Priority Extensions. Subdistrict 2 applies to remaining properties within .5 miles of Phase 1 Light Rail and Priority Extensions. This is the partner piece to the mayor's amendment #3 in Item 5 above.
Before the vote on the main motion as amended, staff asked for a 90-day delay on implementation to match the delay on the DBETOD item, and this was approved.
Item 6. HOME Phase 2. This was the only one of the proposed ordinances that began with the Planning Commission's version as the base motion, available here:
https://services.austintexas.gov/edims/document.cfm?id=428739
The following amendments were approved to the base motion.
CM Fuentes:
(1) Directs the city manager to analyze displacement impacts and include this information in an annual impact report.
(2) Directs city manager to continue to efforts to create and preserve affordable housing.
CM Kelly:
(1) Directs the city manager to include the number of subdivision applications in the annual impact report.
Mayor Watson:
(1) Reduces minimum lot size to 1800 square feet. Note: This is higher than the Planning Commission's recommendation of 1500 square feet, but lower than the staff recommendation of 2000 square feet.
CM Velasquez:
(1) Directs the city manager to explore creating an equity overlay for HOME Phase 2.
CM Pool with amendments by CM Ryan Alter and CM Fuentes:
(1) Provides a 90-day delay for staff to begin accepting applications under HOME Phase 2; provides a six-month delay for properties outside the Wildland Urban Interface (WUI) to allow staff time to complete existing work on WUI regulations (amended by CM Ryan Alter); provides a six-month delay for properties in census tracts identified as at-risk of displacement to provide time to identify financial support and other resources for families who may wish to subdivide their lots (amended by CM Fuentes).
CM Pool:
(2) Provides a correction to subdivision language requested by the city law department.
CM Alison Alter:
(2) Prohibits Short Term Rentals (STRs) in Small Lot Single-Family Residential Use (HOME Phase Two) until April 1, 2025 or until a superseding ordinance is passed. This prohibition will only apply to projects on lots that are newly subdivided under this ordinance, allowing any existing STRs to stay. However, Council members and city staff have acknowledged the impacts of STRs on Austin's housing stock and expect to bring a proposal for tightening restrictions on STRs generally in the coming months.
