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Austin City Council Approves Controversial Rezoning of Acacia Cliffs

Illustration of an urban redevelopment project in Austin

News Summary

The Austin City Council has unanimously approved the controversial redevelopment of the Acacia Cliffs apartment complex. The project will transform the existing 290 apartments into a seven-story building with 700 units, including 80 affordable ones. Critics argue the move contradicts the city’s goals for affordable housing amid a housing crisis, raising concerns about potential displacement of low-income residents. Advocacy groups demand policy reforms to prioritize affordable housing and prevent further losses in low-rent units.

Austin, Texas – The Austin City Council has unanimously approved the controversial rezoning of the Acacia Cliffs apartment complex, located in Northwest Austin. The decision allows for the redevelopment of the existing 290 apartments into a new seven-story building consisting of 700 units. Approximately 80 of these new units will be designated as affordable, aimed at families earning between 50 and 60 percent of the area’s median family income (MFI).

The existing apartments currently offer rent that is significantly lower, representing 30 to 45 percent of the median family income. Critics of the rezoning argue that this change contradicts the city’s stated goal of increasing affordable housing options, especially in light of the ongoing housing crisis.

In response to concerns about the potential displacement of low-income residents, the developer, Trammell Crow, has pledged to provide up to $5,000 in relocation benefits and moving expenses to those affected by the redevelopment. Nonetheless, many community advocates believe this assistance is insufficient in the face of the mounting affordability challenges faced by renters in Austin.

Housing advocates have expressed strong criticism of the Council’s decision, suggesting that it undermines the city’s commitment to addressing the affordable housing crisis. The approval event has sparked further discussions about the need for reforms within the density bonus 90 program (DB90). Austin’s Mayor acknowledged that DB90 has had “unintended consequences” that must be addressed and hinted at the necessity of forthcoming reforms.

In the wake of the decision, Council Member Marc Duchen has proposed the creation of a housing opportunity fund aimed at preserving current affordable housing. Advocates have suggested a one-to-one policy, ensuring that any low-rent units lost to redevelopment are replaced with affordable options.

The city has previously established ambitious goals to create 22,000 affordable housing units for low-income renters by 2027. However, critics maintain that recent policy decisions, including the Acacia Cliffs project, have derailed progress toward achieving these objectives. Data indicates that the area’s median family income has reached $133,800, further complicating the housing landscape for many residents.

As the housing crisis intensifies in Austin, housing advocates are calling for alternative approaches to address these pressing challenges. Suggested measures include abolishing fee-in-lieu policies which allow developers to pay a fee instead of building affordable housing, implementing right-to-return policies for displaced residents, and investing in a low-income housing trust fund.

The approval of the Acacia Cliffs project has fueled concerns regarding the city’s dedication to affordable housing. Community leaders argue that a shift in policymaking is essential to ensure that investments in housing indeed prioritize the needs of low-income families. The unfolding debates within the Austin City Council will be pivotal as stakeholders grapple with the balance between development and preserving affordable living options in an increasingly competitive housing market.