Friday, January 18, 2008

Austin Business Journal - by Jean Kwon ABJ Staff

The Austin City Council later this month may approve some of the city’s most aggressive affordable housing incentives to date targeted at developers and builders of downtown and Central Business District projects.

Developers of high-rise condos and other multifamily projects located downtown and within a 2-mile radius of Sixth Street and Congress Avenue who reserve a small percentage of units for affordable housing will automatically be able to exceed floor-to-area and height limits, potentially getting substantial boosts in density. These bonuses will be in addition to perks given during the development review process such as fee waivers and fast-track approval. Council members are set to review the proposed ordinance on Jan. 31.

To get the bonuses, developers must keep at least 10 percent of condo units affordable to households making equal to or less than 120 percent of Austin’s median family income. In 2007, the median income for a family of four was about $71,125. Rental units deemed affordable would have to be within reach to those who make equal to or less than 80 percent of the median family income, which is about $45,500 for a couple.

Alternately, instead of building affordable units on-site, developers may be able to contribute money to a fund devoted to paying for affordable housing elsewhere downtown. In the proposed ordinance, developers who choose the fee-in-lieu option would pay $10 for every square foot that exceeds the FAR limitation. That fee is based on the current value of land in downtown, which ranges from $15 to $20 per buildable square foot.

By code, downtown projects are limited to 5-to-1 FAR — meaning they can build up to five times the area of their lot. Central Business District projects are limited to 8-to-1 FAR and heights up to 120 feet. Under the proposed ordinance, the City Council would have the discretion to waive these limits altogether, depending on the project.  >>> Click for full article

Tags: buyers, money, neighborhoods, sellers //