Austin holds public hearing on raising preservation-bonus FAR from 0.55 to 0.65 to preserve small homes

Austin City Council and the Austin Planning Commission held a joint public hearing April 1, 2025, at City Hall on a staff proposal to amend the city’s land development code so that two new dwelling units on a lot could be built to 0.65 floor-to-area ratio (FAR) — or roughly 4,350 square feet — when the existing residence on the lot is preserved.

Keith Mars, assistant director of the Development Services Department, told the joint meeting the proposal is “changing 1 line in the land development code in the zoning chapter to state that the 2 dwelling units may not exceed 0.65 FAR or 4,350 square feet if the existing residential unit is preserved.” He emphasized the change would not affect other zoning rules: “It’s important to note that this changes no other land use regulations. This does not change impervious cover. This does not change building height or setbacks.”

The amendment responds to earlier action and direction by council. Mars said the council approved a package called HOME Phase 1 in December 2023 that initially allowed up to three units on a residential lot and excluded the preserved existing home from FAR calculations, but capped the two new units at 0.55 FAR (about 3,200 square feet). A July 2024 council resolution asked staff to return with an ordinance to raise that 0.55 limit to 0.65 FAR. Staff described the current proposal as narrowly confined to that FAR change.

Staff analysis presented at the hearing said the change is intended to increase incentives to preserve the smallest homes. Under the earlier 0.55 limit, Mars said, the “tipping point” on an average Austin lot meant projects preserving homes of about 800 square feet or less could not reach the full allowable FAR for the lot while building two new units. Raising the cap for the two new units to 0.65, the staff presentation said, would make preservation economically feasible for smaller, naturally affordable homes.

Two speakers addressed the joint hearing. Monica Guzman, identified as policy director of "Grama go Austin, Vamos Austin," said she appreciated efforts to preserve original housing but cautioned that “people shouldn't feel that they're forced to get it only if they build more units.” Megan King, policy and communications planner for Preservation Austin, expressed support for the proposed FAR recalibration, saying the preservation bonus “aims to promote preservation and disincentivize demolition, creating net benefits for preservation, affordability, anti displacement, and sustainability.” King highlighted staff and council direction to explore additional entitlements over time, including allowing relocated pre‑1961 homes to access the bonus and other changes to site coverage and unit counts.

King cited citywide housing trends discussed at the hearing: Austin averages over 500 residential demolitions annually and average new construction projects are about 2,800 square feet, figures she used to argue the preservation bonus could help retain smaller, lower‑cost homes in the housing supply.

No vote was taken at the April 1 joint public hearing. The Planning Commission is scheduled to consider the item and take a recommendation April 8, 2025, and the City Council is scheduled to hold a public hearing and consider adoption at its April 24, 2025 meeting.

The staff presentation and public comments confined the proposal to a single change in the zoning chapter’s FAR calculation for preservation bonus projects; other development regulations — including height, setbacks and impervious cover — were not part of the current amendment.

Ending: The record from April 1 will be part of the Planning Commission’s April 8 review. If the commission forwards a recommendation, the City Council will have a final public hearing and potential vote on April 24, 2025.