Large projects near Austin's light rail must include affordable housing

Elsewhere in the city, developers can pay into a city bank account for affordable housing rather than providing the required affordable units within their projects.

1 minute read

September 14, 2026, 7:00 AM PDT

By Zachary Whalen


Wooden shops and restaurants in Austin, with people mingling.

Some housing advocates in Austin believe mandating affordable housing on such projects will hinder development. | Cavan-Images

Developers looking to build larger projects than usually permitted near Austin’s future light rail stations will have to include affordable housing on site under new rules unanimously approved by the Austin City Council on Sept. 10.  

“The change tightens the recently approved citywide density bonus program, a zoning tool that allows developers to build larger, taller projects than would normally be permitted in exchange for community benefits, such as affordable housing. Elsewhere in the city, developers using the program can pay into Austin’s Housing Trust Fund — a city bank account for affordable housing — instead of providing the required affordable units within their projects. For future projects near Project Connect light rail stations, that option is now off the table,” Sam Stark writes for Austin Current. 

Some housing advocates in Austin believe mandating affordable housing on such projects will hinder development, while others fear that without affordable housing mandates, such housing will continue to be concentrated in specific parts of the city. 

Friday, September 11, 2026 in Austin current

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