May 14, 2026
Honorable City Council, Commissioners, and Staff:
The Downtown Austin Neighborhood Association (DANA) recommends several improvements to the C20-2024-018 phase 1 Downtown Density Bonus Program (DDBP) updates.
We have previously highlighted fundamental flaws in the DDBP, called for granting unlimited height and floor area ratio (FAR) by right, and for dedicating the resulting extra property tax revenue to affordable housing and other community benefits.
We believe housing is itself a community benefit. Setting base entitlements below what the market demands, while “taxing” density beyond those base entitlements, constrains housing production and leads to a chronic housing shortage.
However, recognizing that you are likely to move forward with more modest updates to the DDBP, we recommend:
- 1. Eliminate the “cliff” and apply the fee in lieu only to the marginal square footage beyond each height threshold.
- 2. Remove or relax the Chapter 4-18, Division 2 provisions.
- 3. Allow for administrative approval of DDB850 projects, in addition to DDB400 projects.
- 4. Increase the base height entitlement to 500 feet.
- 5. Raise the 1,200 foot height ceiling to a level that, for all practical purposes, is infinite.
We urge you to consider these recommendations to improve the proposed phase 1 DDBP updates. At the same time, we reiterate our call for restructuring the program to address its fundamental flaws.
Sincerely,
Board of Directors
Downtown Austin Neighborhood Association (DANA)
info@downtownaustin.org
(512) 593-2621
