City planning staff outline major University Neighborhood Overlay changes that would raise heights near UT; commissioners voice preservation concerns

City planning staff on April 2 briefed the Historic Landmark Commission on proposed Land Development Code amendments to the University Neighborhood Overlay, a voluntary zoning incentive aimed at increasing housing capacity around the University of Texas at Austin.

Alan Piney, principal planner with the Planning Department, told the commission the UNO program -- established in 2004 -- is being updated to expand boundaries and create three new subdistricts with larger height limits to support higher-density, transit-oriented development. “For background on UNO, it was established in 02/2004. It's the University Neighborhood Overlay,” Piney said.

The changes are intended to increase housing supply and quality, support light rail investments and add tenant protections, city staff said. The Planning Department presented proposed new zoning standards, a draft menu of community benefits, altered parking rules and affordability requirements intended to apply to developments that opt into the voluntary overlay.

Staff said the proposal would create three subdistricts with different maximum heights: Transit Core (up to 600 feet), Inner West (up to 420 feet) and Outer West (up to 90 feet). The proposal would expand UNO boundaries to include adjacent commercial and multifamily parcels, and would make participation voluntary; property owners would have to opt in through a rezoning process that includes Planning Commission and City Council hearings.

Key proposed changes described by staff - Height and subdistricts: Transit Core (600 ft), Inner West (420 ft), Outer West (90 ft). Transit Core would be closest to the proposed light-rail alignment and intended for highest-density residential development. - Parking: a maximum of 40% of the parking otherwise required by Appendix A; projects may provide up to 60% if at least half of the parking is underground; bicycle parking minimums would increase to match Transportation Criteria Manual requirements. - Design: stepback/tower-spacing standards (for example, 40-foot spacing above 120 feet in some cases, with allowances for small lots), and increased minimum energy-efficiency requirements (from one-star to a two-star Austin Energy Green Building rating). - Affordability and tenant protections: staff proposed limiting deeper discounts to units at 50% of Median Family Income (MFI) and expanding lease and redevelopment protections that would restrict preleasing windows and set a baseline for replacement housing accommodations in redevelopment scenarios. - Community benefits: projects in the Transit Core and Inner West would be required to provide one item from a menu that includes pedestrian-oriented commercial space, an on-site grocery, transit-supportive infrastructure, green roofs or on-site water reuse systems, in addition to the affordable-unit commitments.

Staff emphasized UNO is voluntary and that a rezoning would require individual property notice and public hearings. Piney outlined the public outreach and timeline for adoption: earlier committee briefings in March, an open house and a Planning Commission hearing April 22, and City Council consideration scheduled for May 8.

Commissioner and public concerns Commissioners and neighborhood representatives used the briefing to press staff on historic-preservation impacts, the effect on churches and the interaction between incentives and potential transfer-of-development-rights programs. Commissioner Cook asked about surveys of historic resources in the area: “Was there any review of do we have surveys in this area? Is there a survey done for this area?”

Several commissioners said larger heights and denser towers immediately adjacent to low-rise historic properties and longstanding churches could place pressure on preservation. One commissioner urged staff to coordinate UNO changes with any transfer-of-development-rights (TDR) market study, noting TDRs can create a market mechanism that allows owners of smaller historic properties to sell development value to sites that will redevelop.

Staff responses and next steps Planning staff said they had removed some parcels from the proposed Outer West boundary that fell within critical environmental feature buffers in response to early outreach, and that they are coordinating on TDR feasibility work with other city divisions. Piney reminded the commission that changes to UNO will require a rezoning and neighborhood plan amendment and will be considered by Planning Commission and City Council in public hearings.

Commission action and commission follow-up The commission voted unanimously to take staff’s UNO briefing out of order on the agenda so the item could be heard (procedural vote). Commissioners did not take final action on the Land Development Code amendments at the April 2 meeting; several asked staff to provide additional materials, including an updated survey of historic resources and parcel-level information identifying likely redevelopment sites so the commission could flag priorities for preservation or possible tools to reduce demolition pressure.

The Planning Department is scheduled to brief the Planning Commission on April 22 and City Council on May 8. Members of the Historic Landmark Commission said they will consider drafting recommendations for council or asking staff to allow more time for preservation review before the council vote.

Why this matters The UNO changes would reshape development capacity near the University of Texas, affecting housing supply, transit-oriented development and the character of older neighborhoods. The proposal’s interplay of larger height allowances, new parking limits and a menu of community benefits is meant to steer higher-density development toward transit and add tenant protections, but commissioners warned the changes could produce increased pressure on churches and older properties that are not presently landmarked.

What’s next Planning Commission public hearing: April 22, 2025. City Council consideration: May 8, 2025. The Historic Landmark Commission requested more parcel-level survey data and said it will consider forwarding preservation-focused recommendations to Council prior to final action.