Staff propose UNO code changes to allow taller buildings, tighter affordability requirements and parking caps in West Campus

Alan Panney, principal planner with the City of Austin Planning Department, briefed the Austin Downtown Commission on April 16 about proposed code amendments to the University Neighborhood Overlay (UNO), a West Campus zoning overlay that guides redevelopment around the University of Texas.

Panney said the proposed update would expand UNOs boundaries, reorganize internal subdistricts and increase allowable heights in the areas closest to campus and a planned light-rail corridor. "UNO will remain a voluntary program, so properties will have to opt into the program to utilize UNO," Panney said.

Why it matters: The proposal would change redevelopment incentives in West Campus by increasing the maximum heights available through the bonus program, tightening affordability requirements and limiting above-ground parking. Planning staff said the changes aim to add housing capacity, improve pedestrian character and support Project Connect light-rail plans.

Key proposals presented by staff include: - Subdistrict and height changes: creation of a Transit Core (areas near planned light-rail and close to UT) with a new maximum height of 600 feet for projects that opt into UNO; Inner West at up to 420 feet; Outer West capped at 90 feet. - Affordability: the draft reduces the affordability tiers to require deeper affordability at 50% median family income (MFI) for bonus units; staff described a two-tier approach in Transit Core and Inner West where projects that add additional height must provide additional affordable bedrooms or units. Outer West would require either 20% of bedrooms or 10% of units at 50% MFI. - Parking and green standards: a maximum of 40% of the citys former minimum parking requirement (calculated from Appendix A) would apply, and projects may increase to 60% only if at least half the parking is provided underground. Bicycle parking requirements are strengthened and Austin Energy Green Building requirements are raised. - Tower spacing and design: buildings taller than 120 feet would generally require a 20-foot stepback for tower portions, with an alternate coverage standard for narrow lots. - Community benefits: projects in Transit Core and Inner West would need to provide one additional community benefit (options include ground-floor pedestrian retail, grocery space, transit-support infrastructure coordinated with Project Connect, on-site water reuse or green roofs); staff said the grocery threshold was reduced from 8,000 to 2,500 square feet after stakeholder feedback.

Panney said staff will present the draft to Planning Commission next week and to City Council in May; the UNO changes would also require an update to the Central Austin Combined Neighborhood Plan (an element of Imagine Austin). He said the draft was developed after stakeholder meetings, multiple open houses and surveys with about 300 responses.

Commissioners raised concerns about historic resources, compatibility with downtown density and how fee-in-lieu funds would be used. Commissioner Carroll asked where fees in lieu would go; staff said the funds would flow to the Housing Trust Fund under the current practice and that historically the fee amounts have been modest compared with rising land and development costs. Staff also said project-based voucher and case-management models will remain part of PSH outcomes and that longitudinal data on PSH retention will be analyzed as more units come online.

Several commissioners urged careful coordination with other planning efforts (Downtown Austin Plan and downtown density bonus) to avoid a patchwork of rules between UNO and adjacent downtown districts. Staff said DAP and downtown density bonus updates are also planned and that those processes should be aligned where appropriate.

Ending note: Staff emphasized the voluntary nature of UNO and described the draft as designed to increase housing capacity near campus while adding tenant protections and design controls. The Planning Commission public hearing is scheduled next week, and the item will move to council afterward for decision.