The Austin Planning Commission on Oct. 14 approved a package of code amendments setting a new base height framework for the Central Business District (CBD) and made several related changes intended to preserve the downtown density bonus while staff develops a more comprehensive update.

The commission voted to adopt the staff presentation as the draft CBD amendment and approved multiple amendments and recommendations by unanimous vote. Commissioners also directed staff to return with analysis on the downtown density bonus by Feb. 1, 2027, and to consult with the city attorney’s office about whether a time-limited repeal or automatic sunset is legally feasible.

Why it matters: The changes are a near-term response to Texas Senate Bill 840 (referred to in the staff presentation as “SB 840”), which took effect Sept. 1 and removed local limits on floor‑area ratio (FAR) for multifamily or mixed‑use residential projects in commercial zones. Staff said that removal of FAR limits would render the density bonus program nonfunctional for CBD‑zoned sites unless the city establishes an alternative regulatory trigger.

Alan Paniam, a principal planner with Austin Planning, summarized the staff recommendation during the hearing: “As we looked at this pattern of change, our proposed amendment was to create a new maximum by‑right height limit of 350 feet for the central business district.” Paniam told commissioners the 350‑foot figure was chosen after analyzing recent projects and accounting for parking that would now count toward height but not toward FAR.

Public comment included a mix of developers, downtown residents and neighborhood groups. Roger Calvin, a director of the Downtown Austin Neighborhood Association, opposed imposing base height limits downtown and urged the city instead to consider a mechanism to capture incremental property‑tax revenue from taller development and dedicate a portion to affordable housing. Hannah Rangel, speaking for the Downtown Austin Alliance board, asked the commission to delay action 120 days to allow financial modeling and broader stakeholder engagement. Zachary Faddis, president of Aura, and other business speakers warned that a 350‑foot cap could leave the density bonus insufficient to function as an incentive.

Commission debate focused on two practical problems staff flagged: (1) without a height‑based trigger the downtown density bonus would lose its incentive now that FAR cannot be regulated for residential projects; and (2) the staff map for administrative versus council approvals included subdistricts that previously read “no limit,” which the law department identified as legally problematic.

After presentations and public comment, the commission approved a series of amendments and recommendations. Key outcomes included:
- Confirming, as a cleanup item for council, that existing gatekeeper requirements for the downtown density bonus (including Great Streets standards where the bonus applies) remain required and unchanged.
- Directing staff to return to Planning Commission with a status report on downtown density bonus revisions by Feb. 1, 2027.
- Directing staff to consult City Legal about the feasibility of placing a time‑limited repeal or automatic sunset in the ordinance and to report back.
- Raising the administrative threshold (the height at which projects may be approved administratively under the density bonus) in the downtown core from 350 to 700 feet, by an amendment the commission adopted, to avoid suddenly shifting projects that had previously been eligible for administrative approvals into a council‑approval process.
- Applying the same 700‑foot administrative threshold to two Rainey Street subdistricts that staff had proposed to cap at 350 feet.
- A commission recommendation to staff to revisit how and at what height the Great Streets requirement is triggered — and to consider whether Great Streets should be required more broadly for downtown development — citing the risk that projects approved under a new, lower automatic threshold could avoid infrastructure commitments the city cannot later recapture.
- A separate direction asking staff to analyze alternative funding mechanisms that would capture incremental property tax revenue from taller development and dedicate a portion to affordable housing and other community benefits (a mechanism several public speakers proposed as an alternative to a height‑based density bonus).

Staff emphasized that the 350‑foot number in the staff draft was a stopgap calibrated against the recent median equivalent height for an 8:1 FAR and to account for parking counting toward height. Alan Paniam said staff expects to run a comprehensive downtown density bonus revision next year in tandem with a central city district plan and a broader downtown program update.

Commissioners repeatedly warned the amendment package is intended as a temporary measure to preserve the density bonus mechanics while the city devises a more thorough long‑term approach. “We needed to have this in effect prior to September 1,” a staff member told the commission, citing the effective date of the state law. Commissioners also approved a recommendation that staff return with a clear timeline and public outreach as part of the next‑phase work.

Votes at a glance:
- Consent agenda (minutes approval and several applicant postponements): motion by Commissioner Powell, second by Commissioner Maxwell — approved without objection.
- Base motion (move staff presentation as the draft CBD amendment as provided in backup): motion by Commissioner Maxwell, second by Commissioner Laan — passed unanimously as amended.
- Notable amendments and direction (each passed by unanimous vote unless noted): confirm gatekeeper requirements remain in place; direct staff report by 02/01/2027; consult City Legal on a possible repeal/sunset; raise downtown core administrative threshold to 700 feet; set Rainey subdistrict thresholds to 700 feet; direct staff to revisit Great Streets trigger and to analyze a property‑tax capture mechanism for affordable housing.

What happens next: Staff said the ordinance will go to the Downtown Commission Oct. 15 and then to City Council on Oct. 23 for consideration. A more comprehensive downtown density bonus update and central city plan are scheduled over the following year and will include extended stakeholder outreach.

The commission closed the item and moved to other agenda business after approving the package. The meeting record shows unanimous votes on the base motion and on the amendments and recommendations recorded in the minutes of Oct. 14, 2025.