City Council Approves New Ordinance to Expand Housing Options and Protect Vulnerable Communities
In response to Austin’s growing housing needs and the challenges of equitable urban development, the City Council has passed Ordinance No. 20240516-006, introducing significant changes to the city’s Land Development Code. This new ordinance is designed to promote more diverse housing options by relaxing regulations on small lot developments, while also protecting communities at risk of displacement.
Key Changes to Small Lot Development
The ordinance introduces several amendments aimed at making small lot single-family residential developments more feasible and appealing. These changes include:
– Reduced Minimum Lot Size: The ordinance lowers the minimum lot size for small lot single-family homes to as little as 1,800 square feet. This is a substantial reduction that opens up opportunities for infill development in areas where larger lots are scarce or prohibitively expensive. Corner lots are required to have a minimum size of 4,500 square feet.
– Setback Flexibility: New setback requirements allow for more efficient use of space. The ordinance sets a minimum front yard setback of 10 feet, a side yard setback of 5 feet, and a rear yard setback of 5 feet. In certain situations, such as when a property abuts another small lot, these setbacks can be reduced to zero, allowing for more compact and dense developments.
– Increased Building Coverage: The ordinance permits building coverage of up to 55% of the lot area, giving developers greater flexibility in designing homes that meet modern needs while maximizing the use of available land.
– Height Limitations: A crucial aspect of the ordinance is the height restriction, which limits the maximum height of structures on these small lots to 35 feet. This height limit ensures that new developments are compatible with the surrounding neighborhood’s scale and character, preventing the construction of overly tall buildings that might overshadow adjacent properties.
Addressing Community Displacement Concerns
One of the ordinance’s primary goals is to protect communities identified as vulnerable to displacement, particularly those highlighted in the Uprooted Report. These areas are experiencing or are at risk of displacement due to rising property values and increased development pressure. The ordinance applies special protections and regulations to these census tracts to ensure that new developments contribute positively to the community without displacing long-term residents.
Simplifying Regulations for Flag Lots
The ordinance also addresses the development of flag lots—properties with narrow street frontages that widen behind other lots. The new regulations make it easier to create and develop flag lots by:
– Reducing Minimum Width Requirements: The minimum width for flag lots has been reduced to as little as 10 feet, depending on specific circumstances, such as utility installation and access needs. This reduction makes it possible to develop lots that would have been considered too narrow under previous regulations.
– Driveway and Access Guidelines: The ordinance includes specific requirements to ensure that driveways and access points for flag lots comply with essential safety and utility standards, such as the Fire Code, Plumbing Code, and environmental regulations. These guidelines help ensure that flag lot developments are both practical and safe for residents.
Phased Implementation to Ensure Fair Development
The City Council has opted for a phased implementation of the ordinance to ensure that all stakeholders have time to adapt to the new regulations. Beginning on August 16, 2024, the new rules will apply to most development applications. However, properties within the wildland-urban interface or in census tracts identified as vulnerable to displacement will see the new regulations take effect on November 16, 2024. This phased approach ensures a smoother transition and minimizes disruption.
Temporary Ban on Short-Term Rentals
To further protect the availability of housing for long-term residents, the ordinance temporarily prohibits the use of these small lots for short-term rentals. This restriction is in place until April 1, 2025, unless a new ordinance is passed that modifies or extends this provision. The temporary ban ensures that newly developed housing stock remains available to those who need it for permanent residency.
Supporting Austin’s Housing Future
The adoption of Ordinance No. 20240516-006 underscores the City Council’s commitment to addressing Austin’s housing challenges through thoughtful and equitable policy changes. By relaxing certain land use regulations and focusing on the needs of vulnerable communities, this ordinance is a key step towards creating a more inclusive and sustainable city.
For developers and property owners looking to understand how these changes may impact their projects, our team at is ready to assist. We offer expert advice on navigating Austin’s evolving land development landscape and can help you find prime locations for residential or commercial developments under the new rules.