AUSTIN HOME INITIATIVE

Developers Are Applying For Projects Meeting Home Initiative Guidelines. What Is The Impact On Austin Residential Real Estate?

Austin development has long been constrained by a cumbersome zoning code that runs over 1,300 pages long. To add to the complexity, the code is written with vague language that is often open to interpretation.  Ask any builder or developer in Austin what their number one constraint is with increasing the housing stock, and they'll be sure to reply with permitting and regulatory oversight. But make sure your calendar is cleared for the day, because you're going to get an earfull!

This isn't to say that all zoning and regulation and oversight is bad. The current land development code in place has kept Austin beautiful by preventing overdevelopment - see Houston for an example of a city without zoning. But while Austin has retained natural beauty, it has simultaneously become an expensive place to live. I have to applaud City Council this time around and give credit where credit is due. It seems that they're serious this time about passing a land development overhaul that will increase the housing stock and deliver more relatively affordable housing in Central Austin, in addition to a recent overhaul of the permitting process that has greatly improved the residential development process. 

Okay now let's get to the good stuff! As it stands, here's a quick overview of the changes to the development code:

• The FAR increased from 0.45 to 0.55 for duplexes and 0.65 for three units
• The setback is reduced from 25 feet to 15 feet for a standard lot and 10 feet for a corner lot. In some circumstances it can be reduced to as little as 5 feet!
• Parking requirement is waived
• The existing home, if applicable, doesn't count towards towards the FAR if at least 20 years old
• Height increased to 35 feet across the board

Clearly, as it stands this zoning overhaul is going to have a vast impact on housing supply and how our Central Austin neighborhoods look. However, it's important to note a couple stipulations and potential roadblocks:

• There is a likelihood of a potential lawsuit to try and overturn this legislation, although nothing has been filed as of the time of this writing. It'll be approximately 1-2 years before we know if we're in the clear.
• Deed restrictions and HOA restrictions supersede the HOME Initiative, so heavily deeded neighborhoods like Hyde Park, Tarrytown, etc. will not be impacted.  

After two previous attempts in the last 5 years to overhaul the land development code, is the third time the charm? Naturally, the development community in Austin has expressed some hesitancy with their checkbooks. Although applications opened earlier this month, only a handful of applications have been submitted.

Stay tuned and we'll keep this page updated as things progress, or fill out the form below and we'll be sure to keep you in the loop.