City of Austin, Texas National Call to Action Symposium Oct. 17, 2008 Presentation by: Margaret...

City of Austin, TexasNational Call to Action Symposium

Oct. 17, 2008

Presentation by:Margaret Shaw, Director

Neighborhood Housing & Community Development

Austin Housing Facts

• 56% of Austin area households earning below 80% median family income spend more than 30% of their income on housing (2000)

• 44% of area residents could not afford the federal fair market rent ($836/month for two-bedroom) (2006)

• Homeownership rate was 47% -- 20% lower than the national rate of 67% (2006)

• 17.7% of Austin residents live in poverty compared to 13.3% nationally – many are families with children (2006)

Housing Values in Austin: Ownership

Median Residential Home Prices and MFI in the Austin MSA 1990-2007Source: Texas Real Estate Center and HUD Median Family Income data.

$72,892

$76,383$83,275

$91,225$96,067

$100,583 $108,767

$112,208$117,667

$126,642

$143,925$149,992

$154,192

$154,058

$153,250$160,892

$171,758

$183,100

R2 = 0.9169

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Median Family Income

Median Home Price

Linear (Median Family Income)

Industry Standards for Affordability

• Financial subsidies (ex., Low Income Housing Tax Credits; Federal, State and local funding)

• Legislative and Regulatory Mandates (ex., mandatory affordability, tax exemptions)

Texas Standards & Challenges for Affordable Housing• Financial subsidies (Low Income Housing

Tax Credits; State and local funding)

• No State Income Tax -- Property Tax Dependent– Tax exemptions for nonprofit housing

tightening

• Legislative and Regulatory Mandates – State law prohibits mandating affordability

Regulatory Reform Efforts

Affordable Housing Incentive Policies

S.M.A.R.T. Housing™ University Overlay DistrictBonus policies underway

Downtown Density BonusVertical Mixed UseTransit-Oriented Development

Districts

S.M.A.R.T.™ Housing

– Safe, Mixed Income, Accessible, Reasonably Priced and Transit Oriented

– Policy allows for full or partial City fee waivers for certified projects

Builder City of Austin

Reasonably priced units Fee waivers

10% 25%

20% 50%

30% 75%

40% 100%

S.M.A.R.T.™ Housing Benefits

Developer Benefits:Fee waivers of $500/units in multifamily and $2,000/units in single-family

Expedited review Technical Support

Community Benefits:Increased tax base and economic sustainability through mixed-income and diverse housing types

Enhanced housing standardsMore affordable housing choices for consumers

Policy Benefits:Affordability Impact Statements

S.M.A.R.T. Housing Production2001 through September 2008

Completed Units:Multifamily 6,695Single-family 4,080 Total 11,075

University Neighborhood Overlay

District with height and density bonuses

Affordability requirements10% of units at or below 80% MFI10% of units at or below 65% MFI (or fee-in-lieu)

Results since 2004More than 2,000 units developed254 units serving households at or below 80% MFI$950,000 in Fees-in-Lieu

Downtown Density Bonus

Task Force RecommendationAdopted January, 200810% of bonus square footage

affordable• Rental: 80% MFI• Ownership: 120% MFI

Unlimited density and heightAggressive fee-in-lieu of $10 per bonus square foot

Questions/Comments:Margaret Shaw, City of Austin margaret.shaw@ci.austin.tx.us512.974.3184