1. City of Austin, Texas National Call to Action Symposium Oct. 17, 2008 Presentation by: Margaret Shaw, Director Neighborhood Housing & Community Development

3. Austin Housing Facts 56% of Austin area households earning below 80% median family income spend more than 30% of their income on housing (2000) 44% of area residents could not afford the federal fair market rent ($836/month for two-bedroom) (2006) Homeownership rate was 47% -- 20% lower than the national rate of 67% (2006) 17.7% of Austin residents live in poverty compared to 13.3% nationally – many are families with children (2006)

4. Housing Values in Austin: Ownership Median Residential Home Prices and MFI in the Austin MSA 1990-2007 Source: Texas Real Estate Center and HUD Median Family Income data.

5. Industry Standards for Affordability Financial subsidies (ex., Low Income Housing Tax Credits; Federal, State and local funding) Legislative and Regulatory Mandates (ex., mandatory affordability, tax exemptions)

6. Texas Standards & Challenges for Affordable Housing Financial subsidies (Low Income Housing Tax Credits; State and local funding) No State Income Tax -- Property Tax Dependent –Tax exemptions for nonprofit housing tightening Legislative and Regulatory Mandates –State law prohibits mandating affordability

7. Regulatory Reform Efforts Affordable Housing Incentive Policies  S.M.A.R.T. Housing™  University Overlay District  Bonus policies underway  Downtown Density Bonus  Vertical Mixed Use  Transit-Oriented Development Districts

8. S.M.A.R.T.™ Housing –Safe, Mixed Income, Accessible, Reasonably Priced and Transit Oriented –Policy allows for full or partial City fee waivers for certified projects BuilderCity of Austin Reasonably priced unitsFee waivers 10%25% 20%50% 30%75% 40%100%

9. S.M.A.R.T.™ Housing Benefits Developer Benefits:  Fee waivers of $500/units in multifamily and $2,000/units in single-family  Expedited review  Technical Support Community Benefits:  Increased tax base and economic sustainability through mixed-income and diverse housing types  Enhanced housing standards  More affordable housing choices for consumers Policy Benefits:  Affordability Impact Statements

10. S.M.A.R.T. Housing Production 2001 through September 2008 Completed Units: Multifamily 6,695 Single-family 4,080 Total 11,075

11. University Neighborhood Overlay  District with height and density bonuses  Affordability requirements  10% of units at or below 80% MFI  10% of units at or below 65% MFI (or fee-in-lieu)  Results since 2004  More than 2,000 units developed  254 units serving households at or below 80% MFI  $950,000 in Fees-in-Lieu

12. Downtown Density Bonus  Task Force Recommendation  Adopted January, 2008  10% of bonus square footage affordable Rental: 80% MFI Ownership: 120% MFI  Unlimited density and height  Aggressive fee-in-lieu of $10 per bonus square foot

13. Questions/Comments: Margaret Shaw, City of Austin margaret.shaw@ci.austin.tx.us 512.974.3184