During the recent Austin City Council Work Session, significant discussions centered around the definition and management of Naturally Occurring Affordable Housing (NOAH) and its implications for the community. Council members explored how to balance the need for affordable housing with the financial viability of property owners.

A key point of discussion was the definition of NOAH, which has evolved since its introduction by CoStar in 2016. The definition primarily focuses on the age and condition of properties rather than rental prices. This has led to a situation where older buildings, often in need of maintenance, tend to have lower rents, inadvertently housing lower-income residents. Council members emphasized the importance of considering median family income (MFI) when establishing rental requirements for properties under restrictive covenants.

The council is considering implementing a percentage of affordability that would allow property owners to maintain their investments while still providing affordable housing options. For instance, a proposed model suggests that 20% of units in an 800-unit NOAH property could be set aside for families earning between 20% to 50% of the area median income (AMI). However, council members acknowledged the need for flexibility in rent structures to ensure property upkeep and sustainability.

Additionally, the council discussed the potential for including conditions such as retrofitting properties to improve neighborhood connectivity and resident comfort. Suggestions included enhancing sidewalks and bike storage facilities, which would not only benefit residents but also improve the overall appeal of the properties.

The conversation highlighted the necessity of ongoing dialogue with the multifamily housing community to ensure that any new policies do not disrupt the real estate market. The council aims to create a framework that reflects the values of Austin while addressing the pressing need for affordable housing.

As the council moves forward, they are committed to balancing the needs of residents with the realities of property management, ensuring that any agreements made will support both community welfare and economic viability. The discussions from this work session will inform future decisions on housing policies in Austin, with a focus on sustainable and inclusive growth.