A
ustin's Density Bonus 90 zoning program has been a hit with developers, who are taking advantage of the opportunity to build taller residential buildings in exchange for including affordable housing. Since its launch in February, the city has received 56 applications and approved 29 projects covering over 125 acres. The program allows buildings up to 90 feet tall, 30 feet higher than previously permitted, if developers commit to affordable units.

    Developers are enthusiastic about the program, which is unlocking properties that couldn't achieve necessary density before. "It's taking some of those properties and incentivizing development of mixed-use over just pure commercial use," said Chris Affinito of Notional Development Partners. Under the guidelines, developers must set aside 12% of units as affordable for households earning 80% or less of median family income, or pay a fee instead.

    The program is particularly appealing in submarkets near downtown where prices are higher, according to William Sayers of Intracorp, which took advantage of the density deal for a 270-unit condominium project on South Congress Avenue. However, some city officials have expressed reservations about the implications for the community, including concerns about building heights in less dense neighborhoods.