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C20-2024-004B Fee-in-Lieu (FIL) Eligibility - Citywide Density Bonus

C20-2024-004B Fee-in-Lieu (FIL) Eligibility - Citywide Density Bonus

Amend City Code Title 25 (Land Development Code) to establish eligibility for the use of rental fee-in-lieu for projects participating in Section 25-2-656 (Citywide Density Bonus Combining Districts).

Archive Notice: This page is archived and no longer monitored. All information is for reference only.

This ordinance was adopted by City Council on September 10, 2026. See below for a summary of adopted changes, and click to view the adopted ordinance. 

Background

Austin City Council adopted Ordinance No. 20260521-056 on May 21, 2026, creating the Citywide Density Bonus Program (DBC), and amending City Code Title 25 (Land Development Code) to create five new density bonus combining districts.​

As part of adoption of the Citywide Density Bonus Program, City Council also approved an amendment by Council Member Qadri. This amendment directed the City Manager to return to City Council with a memorandum providing policy options and recommendations for implementing a fee-in-lieu (FIL) option for rental units in the Citywide Density Bonus Program, and an ordinance for action to apply said recommendations. Staff provided a memorandum with these recommendations on July 24, 2026. This item modifies chapter 25-2 of the Land Development Code to implement the staff recommendations. 

Summary of Amendment

This amendment establishes eligibility requirements for use of the rental fee-in-lieu option. Properties within one-half mile of Austin Light Rail Phase 1 and priority extensions that utilize the Citywide Density Bonus Program are not eligible to use fee-in-lieu and are required to build income-restricted units onsite in order to fulfill the affordability requirements of the program. This one-half mile boundary aligns with the ETOD Boundaries map, which can be found below, and in Austin City Code Section 25-2, Appendix G.

This is a map of the ETOD Boundaries around Austin Light Rail Phase 1 and its priority extensions. The boundary is a 1/2 mile radius around the light rail line.

Staff Contact

Warner Cook, warner.cook@austintexas.gov, 512-974-7220 

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City Council

September 10, 2026 - City Council adopted Ordinance No. 20260910-031. Watch discussion. 

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City Council

May 21, 2026 - City Council adopted the Citywide Density Bonus Program. Watch discussion. 

As part of adoption, City Council also approved an amendment by Council Member Qadri. This amendment directed the City Manager to return to City Council with a memorandum providing policy options and recommendations for implementing a fee-in-lieu option for rental units in the Citywide Density Bonus Program, and an ordinance for action to apply said recommendations. 

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Planning Commission

April 28, 2026 - Planning Commission previously recommended that projects under the Citywide Density Bonus Program be allowed to use rental fee-in-lieu. Therefore, this item does not require additional Planning Commission consideration. Watch discussion.