New Mixed-Use Developments in South and East Austin Encouraged Through Revived Building Program

The Rise Of NewProjects Under Revived DB90 Program

The landscape of South and East Austin is set for a transformation under a new city building regulation. The city council has given its approval for re-zoning multiple properties in East and South Austin, marking the first set of approvals under the city’s new DB90 regulations. The DB90 program, a density bonus program, permits the construction of larger buildings comprising both residential and commercial space in designated areas within the city.

DB90: An Initiative To Foster Affordable Housing and Ground-level Commercial Space

The DB90 is a successor to the VMU2 program, which it mirrors in its guidelines. The new program champions the construction of taller, mixed-use buildings that reserve a portion of the new housing to be affordable for lower-income city residents. It also encourages street-level commercial space to enhance pedestrian activity. The VMU2 program was discontinued in December after a legal suit against the city by a group of residents led to its closure. Now, the city has resurrected the concept with the introduction of the DB90 program.

Proposed Developments Along South Congress Avenue

A noticeable bunch of the first DB90 zonings includes several properties running across South Congress Avenue. These include a proposed luxury condominium venture by Intracorp and another property on the intersection of East Seventh Street and Pleasant Valley Road. In their entirety, these four proposed new projects are anticipated to bring over 1,200 residential offerings and thousands of office and retail space.

DB90 Program Requirements

The DB90 imposes that 10%-12% of new rental housing units be affordable for tenants with an income level between 50% and 60% of the local median family income, or MFI. As of now, the designated income range is $40,900-$49,080 for individuals and $58,400-$70,080 for a family of four. In cases where ownership housing is developed, the program mandates developers to reserve 12% of those units for individuals earning up to 80% of the MFI or pay fees directly into the city’s affordable housing fund.

Environmental and Conservation Concerns Raised by Local Residents

While the city council approved the re-zoning with little to no debate, the residents around the properties put forth environmental concerns, particularly the 5402 S. Congress Avenue property. They raised issues about the removal of trees and treatment of a not-yet-charted waterway they refer to as “Mystery Creek”. The developer’s representative responded that the city evaluations failed to identify any significant environmental features at the site, and any water passing through may be runoff from nearby properties, suggesting that there isn’t enough drainage area on the property to sustain a creek. Despite this clarification, local residents voiced their desire to have protections in place to preserve the local water feature throughout the development process.