Development Incentives and Agreements

Development Incentives 

Apply for Development Incentives

To apply for any of the City of Austin’s Development Incentive programs, use the online application portal below. Please review details about the individual program before applying.

SMART Housing

The SMART (Safe, Mixed-Income, Accessible, Reasonably-priced, Transit-Oriented) Housing program is designed to stimulate the production of housing for low-and-moderate income residents of Austin by providing fee waivers for development permits in exchange for onsite income-restricted units.. To participate in SMART Housing, developments must provide a certain level of affordable housing, meet specific accessibility and green building standards, and satisfy requirements related to proximity to transit. The City of Austin provides certain fee waivers (including Permit, Capital Recovery, and Construction Inspection fees) and SMART Housing development review for certified developments.

For further information, please see the SMART Housing guide and SMART Housing section of the Land Development Code. Development within the University Neighborhood Overlay (UNO) is also required to meet certain SMART Housing thresholds. For further information, see UNO information under the Overlays tab.

Density Bonuses

Density Bonuses allow developers to build more units than are allowed by a site’s base zoning if the developer agrees to set aside a portion of units for income-restricted affordable housing or, in some cases, pay a fee, known as a fee-in-lieu. The affordable housing units must be income-restricted and leased or sold to a low-income or moderate-income household for the required affordability period.

To find more details on the City of Austin’s density bonus programs see the Development Incentive Matrix or the drop-down menus below. 

Affordability Unlocked

Affordability Unlocked is a development bonus program that waives or modifies some development restrictions in exchange for providing affordable housing. In return for setting aside half of a development’s total units as affordable, developments can receive increased height and density limits, parking and compatibility waivers, and reductions in minimum lot sizes. The program is designed to increase the number of affordable housing units being developed in Austin and fully leverage public resources by allowing housing providers to build more units in their developments when significant amounts of affordable housing are included.

Please visit the Affordability Unlocked program website for more information, including a program guide.

Vertical Mixed Use (VMU)

The Vertical Mixed Use (VMU) density bonus is a voluntary density bonus available to properties with the -V combining district in their zoning string. The bonus provides various modifications to development regulations including setbacks, FAR, permitted uses, and parking. VMU buildings must provide a mix of uses and on-site affordable residential units. Different requirements may apply depending on site location and whether the applicant opts into VMU 1.

For further information, please see the VMU Section of the Land Development Code. 

Overlays

Overlays apply to specific areas within the City of Austin. The boundaries and requirements for these programs are established by ordinance and enshrined in the City’s Land Development Code.

University Neighborhood Overlay

Residential development in the University Neighborhood Overlay (UNO) is required to meet certain SMART Housing thresholds. By providing additional on-site affordability, applicants can obtain a density bonus that provides additional height, FAR, and modifications to compatibility and parking standards.

The University Neighborhood Overlay is located in West Campus. To determine whether a site falls within the UNO boundary, or to determine which UNO Subdistrict applies to a site, please visit the UNO Boundaries section of the Land Development Code.

If you hope to participate in the University Neighborhood Overlay, please review the UNO District Requirements section of the Land Development Code, the Post-2014 UNO Affordability Requirements, and the UNO Height Bonus. For an updated list of need-based financial aid awards that may be used to qualify for SMART Housing, please see the updated SMART Awards List.

Downtown Density Bonus

The Downtown Density Bonus program covers the downtown area. This program provides an increase in maximum height and FAR in exchange for on-site affordable housing units, a fee-in-lieu of affordable housing units, community benefits, or some combination of the three.

Different standards apply depending on the site’s location within the Downtown Density Bonus program area. Please review the Downtown Density Bonus Program section of the Land Development Code for information on program requirements and a map of the boundaries. For projects within the Rainey Street Subdistrict, additional requirements apply.

Please utilize these resources for guidance on the applicable community bonus calculations in Ordinance and fee-in-lieu rates.

Micro-Unit Density Bonus

The Micro-Unit Density Bonus is a voluntary program that offers relaxed site area and parking requirements for eligible units in a development that provides the required on-site affordable housing. These bonuses and requirements apply to dwelling units that contain 500 sq. ft. or less, or three-bedroom units. The development site must be located in a transit-oriented development district, a core transit corridor, or a future core transit corridor.

For further information, please see Land Development Code Section 25-2-780 (C). 

Regulating Plans

Regulating Plans are comprehensive planning documents which set standards for new development in key areas within the City. The standards within these areas are fully spelled out within the Regulating Plans and only apply within the Regulating Plan boundaries. Regulating Plans feature voluntary development bonus programs.

Transit Oriented Development (TOD)

The City of Austin currently has three designated Transit Oriented Development (TOD) districts. Developments within these TOD districts is regulated by individual Regulating Plans. Each Regulating Plan includes a voluntary affordable housing bonus.

Applicants interested in developing near the MLK Red Line Station should consult the MLK TOD Regulating Plan.

Applicants interested in developing near the Plaza Saltillo Red Line Station should consult the Plaza Saltillo TOD Regulating Plan.

Applicants interested in developing near the Crestview Red Line Station should consult the Lamar/Justin TOD Regulating Plan.

North Burnet/Gateway

North Burnet/Gateway (NBG) refers to the approximately 2,300 acre area in north Austin bounded by Walnut Creek on the north, Metric Boulevard on the east, US 183 (Research Boulevard) on the south and southwest, Braker Lane on the northwest, and MoPac (Loop 1) on the west. This Regulating Plan includes a voluntary affordable housing bonus.

Applicants interested in developing within the NBG Boundaries should reference the NBG Regulating Plan. 

East Riverside Corridor

The East Riverside Corridor (ERC) covers properties along East Riverside Drive bounded by IH-35 to the west and Highway 71 to the east. This Regulating Plan includes a voluntary affordable housing bonus.

Applicants interested in developing within the ERC boundaries should reference the ERC Regulating Plan. 

Equitable Transit Oriented Devlopment (ETOD) 

The Equitable Transit Oriented Development (ETOD) overlay was established in Ordinance No. 20240516-005 to enhance transit-supportive uses near public transit. As part of this overlay, a density bonus ETOD program (DBETOD) was established. The DBETOD program offers additional height, modified site development standards (including compatibility), and residential uses to proposed developments within the ETOD overlay in exchange for community benefits, including affordable housing.

If you have questions about the DBETOD program, please review the DBETOD Applicant Guide.

DBETOD applicants are required to schedule a pre-application meeting with Housing staff prior to submitting their application. To request a meeting, please email HousingIncentives@austintexas.gov with the subject line “Pre-Submittal Meeting Request – DBETOD – PROJECT ADDRESS”.

Applicants may not submit a site plan or building permit application which utilizes DB90 bonuses until the Housing Department has certified the proposed development under the program.

Density Bonus 90 (DB90)

Density Bonus 90 (DB90) is a voluntary density bonus available to properties with a -DB90 combining district in the site’s zoning. The program provides development modifications and a height bonus in exchange for affordable housing benefits. Certain mixed-use design standards also apply. The requirements of the program are outlined in Ordinance No. 20240229-073, with additional requirements outlined in §4-18-20 through §4-18-26 of the Land Development Code.

Before applying to the Housing Department for certification into the program, applicants must demonstrate that their -DB90 combining district zoning has been approved. If you have not initiated a rezoning, please follow the City of Austin’s Rezoning Process to request -DB90 combining district zoning. Applications will not be accepted without proof of appropriate zoning.

Applicants may not submit a site plan or building permit application which utilizes DB90 bonuses until the Housing Department has certified the proposed development under the program. 

If you have questions about the DB90 program, please review the DB90 Applicant Guide.

DB90 applicants are required to schedule a pre-application meeting with Housing staff prior to submitting their application. To request a meeting, please email HousingIncentives@austintexas.gov with the subject line “Pre-Submittal Meeting Request – DB90 – PROJECT ADDRESS”.

Development Agreements

Affordability is also promoted through Development Agreements which may produce affordable units and/or fees-in-lieu. Learn more about the Current Development Agreements (PDF).