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Multi-Family and Apartment Investing

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Sarah Davis
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Missing Middle - Austin's Making it Easier to Re-Develop SFH lots

Sarah Davis
Posted Nov 7 2022, 16:21

Austin, Texas has re-vamped their Land Development Code to ease up on requirements for the redevelopment of single-family lots to multifamily units (up to 11). See the change here under the "Missing Middle" section: 

Environmental Code Updates: Details | AustinTexas.gov

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Jordan Moorhead
  • Real Estate Agent
  • Austin, TX
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Jordan Moorhead
  • Real Estate Agent
  • Austin, TX
Replied Nov 7 2022, 17:40

@Sarah Davis it looks like this is proposed. Any idea where this is in the approval process? This would be huge!

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Aaron Gordy
  • Real Estate Broker
  • Austin, TX
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Aaron Gordy
  • Real Estate Broker
  • Austin, TX
Replied Nov 8 2022, 12:18

@Sarah Davis notice the 55% impervious cover limit. That is a serious impediment. They need to allow for limits comparable to multifamily or commercial. It is a step in the right direction though. I am wondering and hoping that the voting that takes place today will change things for more density. 

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Sarah Davis
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Sarah Davis
Replied Nov 9 2022, 11:34

@Jordan Moorhead I don't think the website is updated but this is the email I received from the City below


"The City of Austin's Watershed Protection Department has been working on environmental code updates to Austin’s Land Development Code over the summer and fall. The code updates introduce critically important initiatives that will help Austin maintain its high standards of water quality resource protection, including increased use of Green Stormwater Infrastructure and expanded protections for wetlands on Lady Bird Lake.

The Planning Commission conducted a public hearing on October 11. The Austin City Council conducted a public hearing and adopted the new code on October 27. An amendment related to water quality controls will go into effect on November 1, 2023, unless Watershed Protection brings forward other recommendations before then."

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Sarah Davis
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Sarah Davis
Replied Nov 9 2022, 11:45

@Aaron Gordy Multifamily is only 60%, so not a substantial difference. I'm a water resource engineer for my W2, so I tend to balk at increasing impervious cover blindly... However, there is definitely a need for more housing in Austin and an overhaul of the LDC. 

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Aaron Gordy
  • Real Estate Broker
  • Austin, TX
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Aaron Gordy
  • Real Estate Broker
  • Austin, TX
Replied Nov 10 2022, 08:00

@Sarah Davis 60% vs 55% of a typical lot is about the size of an efficiency or an adu. That would relieve some housing pressure. But the biggest change is allowing for up to 11 units. Thanks for posting! Hopefully it will be greenlighted to move through the channels quickly.


I am glad to see that the Mayor runoffs will be between two people that realize the need to change things substantially from the present and that both have State of Texas legislative experience. 

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Bryan Hancock#4 Off Topic Contributor
  • Investor
  • Round Rock, TX
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Bryan Hancock#4 Off Topic Contributor
  • Investor
  • Round Rock, TX
Replied Nov 13 2022, 07:09

Austin's Watershed Department is and has been out of control for many years now.  Hopefully they ease restrictions, but I would expect for anything that approaches rationality to be thwarted by the all-powerful forces in Austin that have been driving up costs and prices for end-buyers for decades.  

The are some very simple changes that could be made for compatibility setbacks that would drastically change the game for many platted existing lots in the city, but politics and incompetence are likely to continue to rule in the city.  After many years of brain damage most reputable sponsors move to the city's adjacent cities to invest their time and energy.  Hopefully this all changes, but I'll believe it when i see it.  

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Ryan Kelly
  • Real Estate Broker
  • Austin, TX
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Ryan Kelly
  • Real Estate Broker
  • Austin, TX
Replied Nov 13 2022, 08:38

@Sarah Davis as others have said, I'll believe it when I see it pass. Austin has fought the development code for decades and only now begrudgingly trying to make a few tweaks. We're decades behind where we should be with density in the city. 

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Sarah Davis
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Sarah Davis
Replied Nov 30 2022, 13:19

@Ryan Kelly this code change was adopted on October 27, but doesn't go into effect until Nov 2023. You can see the minutes from council here: 

Environmental Code Updates | AustinTexas.gov