Development Incentives and Agreements
The City of Austin may provide developers with incentives—such as fee waivers, density bonuses, tax incentives, and development agreements—to build and to set aside affordable rental and ownership housing for low- and moderate-income households in developments.
New Certification Process for Development Incentive Programs
Austin Housing staff are implementing new certification processes beginning August 1, 2026. The changes are in response to Code Amendments. Developers seeking to submit a development application should review the Notice of Process Change.
Development Incentives
Apply for Development Incentives
To apply for any of the City of Austin’s Development Incentive programs, use the online application portal. Please review details about the individual program before applying. Apply for Development Incentives through the online application portal.
SMART Housing
The SMART (Safe, Mixed-Income, Accessible, Reasonably-Priced, Transit-Oriented) Housing program is designed to stimulate the production of housing for low-and-moderate income residents of Austin by providing fee waivers for development permits in exchange for onsite income-restricted units. To participate in SMART Housing, developments must provide a certain level of affordable housing, meet specific accessibility and green building standards, and be located within one-half mile walking distance of transit service.
The requirements of the SMART Housing program are found within § 25-1, Article 15, Division 2 and § 4-18-25 of the Land Development Code.
Those interested in participating in the SMART Housing program are encouraged to review the SMART Housing Applicant Guide.
Applicants must submit a Development Incentives application to Austin Housing and receive a Prequalification Letter before submitting site plan or building permit applications. Development applications without a Prequalification Letter will be rejected by Austin Development Services.
Development within the University Neighborhood Overlay (UNO) is also required to meet certain SMART Housing thresholds. For further information, see UNO information under the Overlays tab.
Fee Waivers
The City of Austin provides certain fee waivers (including Permit, Capital Recovery, and Construction Inspection fees) and SMART Housing development reviews for certified developments. Review the SMART Housing Fee Waivers from DSD for Fiscal Year 2026 (XLS) or view them by permit type by visiting the DSD Fee Schedules webpage.
Density Bonuses
Density Bonuses allow developers to build more units than are allowed by a site’s base zoning if the developer agrees to set aside a portion of units for income-restricted affordable housing or, in some cases, pay a fee, known as a fee-in-lieu. The affordable housing units must be income-restricted and leased or sold to a low-income or moderate-income household for the required affordability period.
To find more details on the City of Austin’s density bonus programs, see the Development Incentive Matrix or the drop-down menus below. Review the Density Bonus Area Search Tool to learn whether a proposed development is located in a density bonus geography.
- Affordability Unlocked
Affordability Unlocked, established by Ordinance No. 20190509-027, is a development bonus program that waives or modifies some development restrictions in exchange for providing affordable housing. For rental developments, the affordable housing units must serve households with incomes averaging at or below 60% of the median family income (MFI), with a portion of those serving households up to 50% MFI, for 40 years. For ownership developments, the affordable housing units must be sold to households with incomes averaging at or below 80% MFI; these units must be affordable for 99 years. In return for setting aside half of a development’s total units as affordable, developments can receive increased height and density limits, compatibility waivers, and reductions in minimum lot sizes. The program is designed to increase the number of affordable housing units being developed in Austin and fully leverage public resources by allowing housing providers to build more units in their developments when significant amounts of affordable housing are included.
The Affordability Unlocked program allows applicants to select from two levels of affordability. The first level, Type 1, includes entry-level requirements that must be met to utilize the program. The second level, Type 2, includes requirements in addition to all Type 1 requirements and allows for more development bonuses.
The requirements of the Affordability Unlocked program are found within § 25-1, Article 15, Division 4 of the Land Development Code.
Those interested in participating in the Affordability Unlocked program are encouraged to review the Affordability Unlocked Applicant Guide.
Applicants must submit a Development Incentives application to Austin Housing and receive a Prequalification Letter before submitting site plan or building permit applications. Development applications without a Prequalification Letter will be rejected by Austin Development Services.
- Vertical Mixed Use (VMU)
The Vertical Mixed Use (VMU) density bonus is a voluntary density bonus available to properties with the -V combining district in their zoning string. The bonus provides various modifications to development regulations including setbacks, FAR, permitted uses, and parking. VMU buildings must provide a mix of uses and on-site affordable residential units. Different requirements may apply depending on site location.
The requirements of the VMU program can be found in § 25-2, Subchapter E, Article 4 of the Land Development Code.
Important: No new zoning applications are allowed per Ordinance No. 20260521-056. Applicants interested in the VMU program must already have VMU combining district zoning.
- Overlays
Overlays apply to specific areas within the City of Austin. The boundaries and requirements for these programs are established by ordinance and enshrined in the City’s Land Development Code.
University Neighborhood Overlay
Residential development in the University Neighborhood Overlay (UNO) is required to meet certain SMART Housing thresholds. By providing additional on-site affordability, applicants can obtain a density bonus that provides additional height, FAR, and modifications to compatibility and parking standards.
The University Neighborhood Overlay is located in West Campus. To determine whether a site falls within the UNO boundary, or to determine which UNO Subdistrict applies to a site, please visit the UNO Boundaries section of the Land Development Code.
If you hope to participate in the University Neighborhood Overlay, please review the UNO District Requirements section of the Land Development Code, the Post-2014 UNO Affordability Requirements, and the UNO Height Bonus. For an updated list of need-based financial aid awards that may be used to qualify for SMART Housing, please see the updated SMART Awards List.
Downtown Density Bonus
The Downtown Density Bonus program covers the downtown area. This program provides an increase in maximum height and FAR in exchange for on-site affordable housing units, a fee-in-lieu of affordable housing units, community benefits, or some combination of the three.
Different standards apply depending on the site’s location within the Downtown Density Bonus program area. Please review the Downtown Density Bonus Program section of the Land Development Code for information on program requirements and a map of the boundaries. For projects within the Rainey Street Subdistrict, additional requirements apply.
Please utilize these resources for guidance on the applicable community bonus calculations in Ordinance and fee-in-lieu rates.
Micro-Unit Density Bonus
The Micro-Unit Density Bonus is a voluntary program that offers relaxed site area and parking requirements for eligible units in a development that provides the required on-site affordable housing. These bonuses and requirements apply to dwelling units that contain 500 sq. ft. or less, or three-bedroom units. The development site must be located in a transit-oriented development district, a core transit corridor, or a future core transit corridor.
For further information, please see Land Development Code Section 25-2-780 (C).
- Regulating Plans
Regulating Plans are comprehensive planning documents which set standards for new development in key areas within the City. The standards within these areas are fully spelled out within the Regulating Plans and only apply within the Regulating Plan boundaries. Regulating Plans feature voluntary development bonus programs.
Transit Oriented Development (TOD)
The City of Austin currently has three designated Transit Oriented Development (TOD) districts. Developments within these TOD districts is regulated by individual Regulating Plans. Each Regulating Plan includes a voluntary affordable housing bonus.
- Applicants interested in developing near the MLK Red Line Station should consult the MLK TOD Regulating Plan.
- Applicants interested in developing near the Plaza Saltillo Red Line Station should consult the Plaza Saltillo TOD Regulating Plan.
- Applicants interested in developing near the Crestview Red Line Station should consult the Lamar/Justin TOD Regulating Plan.
North Burnet/Gateway
North Burnet/Gateway (NBG) refers to the approximately 2,300 acre area in north Austin bounded by Walnut Creek on the north, Metric Boulevard on the east, US 183 (Research Boulevard) on the south and southwest, Braker Lane on the northwest, and MoPac (Loop 1) on the west. This Regulating Plan includes a voluntary affordable housing bonus.
- Applicants interested in developing within the NBG Boundaries should reference the NBG Regulating Plan.
East Riverside Corridor
The East Riverside Corridor (ERC) covers properties along East Riverside Drive bounded by IH-35 to the west and Highway 71 to the east. This Regulating Plan includes a voluntary affordable housing bonus.
- Applicants interested in developing within the ERC boundaries should reference the ERC Regulating Plan.
- Equitable Transit Oriented Development (ETOD)
The Equitable Transit Oriented Development (ETOD) overlay was established by Ordinance No. 20240516-005 to enhance transit-supportive uses near public transit. As part of this overlay, a density bonus ETOD program (DBETOD) was established. The DBETOD program offers additional height, modified site development standards (including compatibility), and residential uses to proposed developments within the ETOD overlay in exchange for community benefits, including affordable housing.
The requirements of the DBETOD program are found in § 25-2-654 and § 4-18, Article 2 of the Land Development Code.
Those interested in participating in the DBETOD program are encouraged to review the DBETOD Applicant Guide.
Applicants must submit a Development Incentives application to Austin Housing and receive a Prequalification Letter before submitting a site plan application. Site Plan applications without a Prequalification Letter will be rejected by Austin Development Services.
DBETOD applicants may schedule a pre-submittal meeting with Housing staff prior to submitting their Development Incentives application. To request a meeting, please email HousingIncentives@austintexas.gov with the subject line “Pre-Submittal Meeting Request – DBETOD – PROJECT ADDRESS”.
- Density Bonus 90 (DB90)
Density Bonus 90 (DB90), established by Ordinance No. 20240229-073, is a voluntary density bonus available to properties with a -DB90 combining district in the site’s zoning. The program provides development modifications and a height bonus in exchange for affordable housing benefits. Certain mixed-use design standards also apply.
The requirements of the program are found in § 25-2-652 and § 4-18, Article 2 of the Land Development Code.
Those interested in participating in the DB90 program are encouraged to review the DB90 Applicant Guide.
Important: No new zoning applications are allowed per Ordinance No. 20260521-056. Applicants interested in the DB90 program must already have DB90 combining district zoning.
Applicants must submit a Development Incentives application to Austin Housing and receive a Prequalification Letter before submitting a site plan application. Site Plan applications without a Prequalification Letter will be rejected by Austin Development Services.
DB90 applicants may schedule a pre-submittal meeting with Housing staff prior to submitting their Development Incentives application. To request a meeting, please email HousingIncentives@austintexas.gov with the subject line “Pre-Submittal Meeting Request – DB90 – PROJECT ADDRESS”.
Development Agreements
Affordability is also promoted through Development Agreements, which may produce affordable units and/or fees-in-lieu. Learn more about the Current Development Agreements (PDF).
Income and Rent Limits
Visit our Income and Rent Limits webpage for more information on income and rent limits for development incentives and agreements.