In a contentious decision, the Austin City Council has approved a zoning change and density bonus for the Acacia Cliffs apartment complex, despite fierce opposition from residents and housing advocates. Tenants fear the move will displace vulnerable families and accelerate the loss of affordable housing as developers plan to replace 290 units with a larger, costlier project.
Read: Texas Approves SB 840 for Easier Multi-Family, Commercial Conversions
Protests Against Rezoning
Protests erupted at Austin City Hall as Acacia Cliffs tenants, supported by housing justice groups, rallied against a rezoning request tied to a proposed redevelopment of their homes. Folasade Fashina, an East Austin resident, attended in solidarity. Residents warned that the project threatens to displace retirees, veterans, students, single mothers, and others living on modest incomes.
Also read: Nevada Senate Passes Bill Expanding ‘Affordable Housing’ to Middle Class Renters
Criticism of Density Bonus
At the heart of the controversy is the city’s DB90 density bonus program, which allows taller, denser developments in exchange for community benefits like affordable housing. Opponents say it has the opposite effect. “It was deeply disappointing to watch every council member choose to put profit over people,” said Alexia Leclercq of Community Powered. Mayor Kirk Watson admitted the program produced “significant unintended consequences.”
Also read: Nevada Senate Passes Bill Expanding ‘Affordable Housing’ to Middle Class Renters
Council Divided Over Vote
Speakers at Thursday’s meeting, including tenants and community members, urged the council to either reject or delay the decision. Betsy Greenberg, a Zoning and Platting Commission member, called it a “lose-lose proposition,” arguing the developer presented a false choice: approve rezoning and lose affordable units, or deny it and risk worse outcomes.
Also read: Trump’s Budget Cuts Could Leave 30,000 Facing Homelessness in NYC, Warns NYCHA
Displacement and Developer Offers
Despite outcry, Price Realty Corp. plans to redevelop the site, with Trammell Crow Residential managing construction. Their attorney, Michael Whellan, pledged no redevelopment before January 1, 2027. Tenants would receive at least $5,000 each, totaling $1.5 million in relocation benefits, rent reimbursement, moving costs, and housing search support.
Also read: NYC Shifts Broker Fee to Landlords Under New FARE Act
A Broken Housing System
Council Member Mark Duchen, who represents the district, voted for the rezoning after a motion to postpone failed. He criticized the system, saying it forces council members to “scramble to pick the least bad option.” Duchen said the DB90 program was deeply flawed, leaving residents vulnerable to displacement if no rezoning occurred.
Also read: Students Built $65K Tiny Homes to Battle Housing Crisis in California
Proposals for Policy Reform
The council approved Mayor Watson’s resolution to reform DB90 and other density programs. Suggested changes include varied height options, stricter affordability requirements, and redevelopment rules requiring “one for one” replacement of demolished affordable units.
Also read: Landlord Fined $1M for Illegal Rent Hikes in DC Price-Fixing Lawsuit
New Housing Fund on Horizon
Duchen announced plans to establish the Austin Housing Opportunity Fund, modeled after programs in cities like Dallas and Detroit. Funded through existing bonds and anti-displacement resources, it would aim to preserve affordable housing without new taxpayer costs.
Next up:
- Lawrence Tenants Push for ‘Right to Counsel’ in Eviction Cases
- Parker’s $2B Philadelphia Housing Plan Moves Forward After Council Approval
- Proposition 123 to Allocate $67.5M for 1,017 Housing Units, Governor Polis Announced
- Nearly ‘300 Evictions’ Filed by NYC Supportive Housing Landlords in 5 Months