City planning staff to propose downtown base height limit after state law removes residential floor-area caps

City of Austin planning staff told the Housing and Planning Committee on Sept. 16 that they expect to bring a Land Development Code amendment before council by the end of 2025 to address the effects of Senate Bill 840 on downtown development.

The memo and timeline presented Wednesday, and summarized by Stevie Greathouse, division manager with the City of Austin Planning Department, show that staff are developing a proposal “that would create a base height limit within the Central Business District zone” to respond to the state law change removing floor-area limits for residential and mixed-use developments.

The issue: Senate Bill 840 removes a city’s authority to apply a floor-area-ratio cap to certain residential and mixed-use projects. Greathouse told the committee that Austin’s Central Business District historically used floor-area controls to limit the bulk and form of downtown buildings; without a usable FAR, staff say they need a base height cap to provide a predictable limit for base development. Greathouse said downtown projects would still be able to opt into the downtown density bonus program to exceed the base limit.

Staff outlined a compressed schedule for consideration: a special-called Codes & Ordinances joint committee on Sept. 24, the Planning Commission on Oct. 14, and City Council consideration on Oct. 23. Greathouse said detailed materials will be posted on the SpeakUpAustin land development code updates page.

Looking beyond the CBD change, staff presented a multi-year workplan. Notable timeline items in the backup memo include: - A study of new mixed‑use and missing‑middle base zones due no later than Jan. 2026, with potential code amendments following in late 2026 (staff said an initial phase might be advanced earlier). - Watershed- and parkland-related drainage easement amendments anticipated in Jan. 2026. - A package of amendments to clarify how SB 840 is applied across base zones and to address minor code inconsistencies, potentially brought forward for council consideration in February 2026. - A comprehensive review and recommended changes to citywide density bonus programs, with staff analysis and proposals targeted for May 2026.

Committee members pressed staff on sequencing and timing, noting the citywide density bonus work is linked to how SB 840 changes development economics. Greathouse said the February tranche is intended to give staff and council more certainty about how recently enacted notification requirements (HB 24, as cited in the presentation materials) and other changes will affect implementation before larger incentive programs are revised.

Staff also told the committee they expect to conduct multiple rounds of public engagement on corridor- and downtown-related planning efforts (including an East Riverside corridor update and a broader downtown density-bonus review tied to the Central City District process) during 2026. The presentation emphasized the schedule is ambitious and subject to change as staff incorporate council feedback and statutory clarifications.

The committee did not take formal action on the item Wednesday; the presentation was an informational briefing and staff invited follow-up questions from council offices and stakeholders.

For more information staff said they will post the LDC timeline and proposal materials at speakupaustin.org/ldcupdates.