§ 2.5. DEVELOPMENT BONUSES.

2.5.1.   Limitation on Development.

Except as provided in Section 2.5.2 ( Requirements for Exceeding Baseline ), site development regulations for maximum height, maximum floor area ratio, and maximum building coverage in a PUD may not exceed the baseline established under Section 1.3.3 ( Baseline for Determining Development Bonuses ).

2.5.2.   Requirements for Exceeding Baseline.

Development in a PUD may exceed the baseline established under Section 1.3.3 ( Baseline for Determining Development Bonuses ) for maximum height, maximum floor area ratio, and maximum building coverage if:

A.

the application for PUD zoning includes a report approved by the Director of the Neighborhood Housing and Community Development Department establishing the prevailing level of affordability of housing in the vicinity of the PUD, expressed as a percentage of median family income in the Austin metropolitan statistical area; and

B.

the developer either:

1.

for developments with residential units, provides contract commitments and performance guarantees that provide affordable housing meeting or exceeding the requirements of Section 2.5.3 ( Requirements for Rental Housing ) and Section 2.5.4 ( Requirements for Ownership Housing ); or

2.

for developments with no residential units, provides the amount established under Section 2.5.6 ( In Lieu Donation ) for each square foot of bonus square footage above the baseline to the Affordable Housing Trust Fund to be used for producing or financing affordable housing, as determined by the Director of the Neighborhood Housing and Community Development Department.

2.5.3.   Requirements for Rental Housing.

If rental housing units are included in a PUD, dwelling units equal to at least 10 percent of the bonus area square footage within the PUD must:

A.

be affordable to a household whose income is 60 percent or below the median family income in the Austin metropolitan statistical area;

B.

remain affordable for 40 years from the date a certificate of occupancy is issued; and

C.

be eligible for federal housing choice vouchers.

2.5.4.   Requirements for Ownership Housing.

If owner occupied housing is included in a PUD, dwelling units equal to at least five percent of the bonus area square footage within the PUD must be:

A.

affordable to a household whose income is 80 percent or below the median family income in the Austin metropolitan statistical area; and

B.

affordable in perpetuity from the date a certificate of occupancy is issued; and

C.

transferred to the owner subject to a shared equity agreement, land trust, or restrictive covenant approved by the Director of the Neighborhood Housing and Community Development Department.

2.5.5.   Alternative Affordable Housing Options.

A developer of a residential project may request an exception to the contract commitments and performance guarantees in Section 2.5.3 ( Requirements for Rental Housing ) and Section 2.5.4 ( Requirements for Ownership Housing ) as follows:

A.

Subject to approval by the Director of the Neighborhood Housing and Community Development Department, the developer may provide to the Austin Housing Finance Corporation land within the PUD that is appropriate and sufficient to develop 20 percent of the residential habitable square footage planned for the PUD; or

B.

Subject to approval by the city council, the developer may provide all or a portion of the amount established under Section 2.5.6 ( In Lieu Donation ) for each square foot of bonus square footage above baseline to the Affordable Housing Trust Fund to be used for producing or financing affordable housing, as determined by the Director of the Neighborhood Housing and Community Development Department.

C.

A request to pay a fee in lieu to meet all or a portion of the residential affordability requirement in Section 2.5.2.B must be submitted in writing to the Director of Neighborhood Housing and Community Development Department, must include supporting documentation sufficient to demonstrate the infeasibility of compliance with Section 2.5.2.B., and must be approved by city council as provided in Section 2.5.5.B above.

D.

Regardless of whether a developer requests an exception under this section, the Director of Neighborhood Housing and Community Development may recommend that a developer be allowed to pay a fee in lieu in order to comply with the contract commitments and performance guarantees in Section 2.5.3 ( Requirements for Rental Housing ) and Section 2.5.4 ( Requirements for Ownership Housing ). The recommendation must be in writing, supported by the Director's reasons as to why the fee in lieu option is appropriate, and approved by city council to be effective.

E.

Council approval of any alternative affordable housing project shall expire 36 months after the date of approval if the project has not been initiated.

2.5.6.   In Lieu Donation.

The amount payable under Section 2.5.5.B ( Alternative Affordable Housing Options ) shall be $6 for each square foot of bonus square footage above baseline. Such fee will be adjusted annually in accordance with the Consumer Price Index all Urban Consumers, US City Average, All Items (1982-84100), as published by the Bureau of Labor Statistics of the United States Department of Labor or other applicable standard as defined by the director of the Neighborhood Housing and Community Development Office. The city manager shall annually determine the new fee amounts for each fiscal year, beginning October 1, 2014 and report the new fee amounts to the city council.

Source: Ord. 20080618-098; Ord. 20131003-096; Ord. No. 20151119-092, Pts. 1—4, 11-30-15 .