Austin, TX Zoning Overlays & Bonuses: Density Bonus Law (2026)

Sec. 25-2-181 establishes Density Bonus (DB) combining districts as a voluntary overlay: a property owner opts in to participate in a density bonus or incentive program that trades regulatory benefits, most often extra height or eased development standards, for defined community benefits, chiefly income-restricted housing. Three DB combining districts exist under this section. The DB90 Combining District allows residential uses on sites carrying certain commercial base zoning districts, modifies the compatibility standards that would otherwise apply, and grants additional building height, all in exchange for income-restricted housing units; it was adopted by Ordinance No.

20240229-073, Part 2, effective March 11, 2024. The DBETOD (equitable transit-oriented development) Combining District similarly allows residential uses, but also preserves certain existing residential and non-residential uses on the site, modifies both compatibility standards and the Sec. 25-2-492 site development regulations, and grants additional building height in exchange for income-restricted housing; it was added by Ordinance No. 20240516-005, Part 4, effective July 15, 2024. The DBCS Combining District, adopted by Ordinance No. 20241010-034, Part 2, effective October 21, 2024, targets a different community benefit: it supports resiliency and long-term viability for centers of art and live music by encouraging developers to include affordable creative space in new development.

Because DB districts are combining districts layered on top of a base zoning designation, a specific site must first carry an eligible base district and then be rezoned to add the DB combining designation before the bonus regulations, or the community-benefit obligations that come with them, apply.