Does a new law undermine Austin's density bonuses?
Is this a good thing?
In May the state legislature passed SB 840, a law pushed by a coalition of real estate interests and pro-housing YIMBY groups.
The law says that any property that has been zoned for commercial use must also allow multifamily residential development. The apartments or condos must be granted at least 45 feet of height or whatever the height limit is for commercial development.
In Austin, for instance, most commercially-zoned properties have a 60 foot height limit. Any residential development on those properties would thus also be entitled to 60 feet.
So the bill overrides local zoning ordinances in one key way but leans on them in another.
Some are now concerned that the entitlements granted by state law will undercut the city's density bonus programs, which offer developers additional height in exchange for providing a certain amount of below-market rate housing for people at certain income thresholds.
