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Austin UNO affordable housing: the 10 + 10 set-aside in West Campus

Last verified August 13, 2026 against the Austin Land Development Code · Kimbrough Gray · KiliGray Homes
A multi-family or group residential use established after February 24, 2014 must set aside 10 percent of its dwelling units or bedrooms at or below 60 percent of median income, and another 10 percent at or below 50 percent, for at least 40 years from the certificate of occupancy. The second 10 percent may instead be paid into the University Neighborhood District Housing Trust Fund.
Applies to: Property in the university neighborhood overlay (UNO) district. Section 25-2-751 states that the division applies to property in the UNO district if the property owner files a site plan and an election for the property to be governed by the division. Section 25-2-765(A) then reaches a multi-family residential use or a group residential use established after February 24, 2014.

Nobody is made to do this

Read §25-2-765 on its own and it looks like a mandate on West Campus. §25-2-751 says otherwise: the division applies to property in the UNO district if the property owner files a site plan and an election for the property to be governed by it.

So the set-aside is the price of a bargain. A West Campus owner who does not elect into Division 9 does not owe it — and does not get what Division 9 gives, which is the rest of the division: its use regulations, lot area, height, setbacks and stepbacks. The affordability is one side of a trade the owner chooses to make.

Ten at sixty, ten at fifty, for forty years

The requirement has two halves at different income bands. 10 percent of the dwelling units or bedrooms at or below 60 percent of area median income, and a further 10 percent at or below 50 percent.

Two details do a lot of work. It is measured in "dwelling units or bedrooms", which matters in a market built around leasing by the bed. And the clock is not less than 40 years from the certificate of occupancy — not from the election, not from first lease-up.

First 10%Second 10%
Income bandAt or below 60% MFIAt or below 50% MFI
Term40 years minimum from CO40 years minimum from CO
Can it be bought out?NoYes — fee into the trust fund
Rent ceilingLow HOME Rent Limit, one bedroom40% MFI HOME Rent Limit, efficiency

Rent ceilings are the TDHCA limits, set annually — §25-2-765(D).

Only the second ten can be bought out

This is the asymmetry that decides how a project is structured. Subsection (B) allows a payment into the University Neighborhood District Housing Trust Fund instead of complying with Paragraph (A)(2) — the 50 percent band. It says nothing about (A)(1).

The deeper-affordability half is the one you may write a cheque for; the 60 percent half has to be built. That is the opposite of the intuition that the harder obligation would be the buyable one.

The dollar figures in the code are not the fee you would pay. §25-2-765(B) sets $1.00 per square foot of net rentable floor area, then says it is adjusted annually by CPI-U and that the city manager determines the amount for each fiscal year and reports it to council. The printed number is a 2014 base. Ask the City for the current schedule.

What the fund buys, and the fee waiver

Money paid in is not general revenue. Subsection (C) lets the director allocate it for housing development inside the UNO district that provides at least 30 percent of its units or bedrooms at or below 50 percent MFI, again for at least 40 years.

So the buyout concentrates: two projects paying instead of building can fund one project at triple the depth. And a project drawing on those funds receives a 100 percent fee waiver under the S.M.A.R.T. Housing Policy, which is a second subsidy stacked on the first.

The hotel option, and its two ratios

Subsection (E) has its own route out. A hotel/motel use with an associated condominium, multifamily, group residential or retirement housing use may pay $2.00 per square foot of the combined residential and hotel net square footage instead of complying with Subsection (A) at all — the whole set-aside, not just half of it.

It is fenced by two ratios that must both hold: residential units no more than 40 percent of the hotel unit count, and residential net square footage no more than 45 percent of the hotel net square footage. The route is for a hotel with flats attached, not a residential building with a lobby.

Common questions

How much affordable housing does UNO require?
10 percent of dwelling units or bedrooms at or below 60 percent of median income, plus another 10 percent at or below 50 percent, for at least 40 years from the certificate of occupancy.
Is the University Neighborhood Overlay mandatory?
No. Under §25-2-751 the division applies only if the property owner files a site plan and an election for the property to be governed by it.
Can I pay a fee instead of building the affordable units?
Only for the second 10 percent. Subsection (B) allows a payment into the trust fund instead of complying with Paragraph (A)(2), the 50 percent MFI band. The 60 percent band has no buyout.
How long does UNO affordability last?
Not less than 40 years from the date a certificate of occupancy is issued.
What rent can I charge on a UNO affordable unit?
For the 60 percent band, no more than the Low HOME Rent Limit for one bedroom. For the 50 percent band, no more than the 40 percent MFI HOME Rent Limit for an efficiency. Both are set annually by the Texas Department of Housing and Community Affairs.
Does UNO count bedrooms or units?
Either — §25-2-765(A) is written as "dwelling units or bedrooms", which matters in a market that leases by the bed.
What is the fee-in-lieu amount?
The code prints $1.00 per square foot of net rentable floor area, but says it is adjusted annually by CPI and that the city manager sets the amount each fiscal year. Treat the printed figure as a 2014 base and ask the City for the current one.

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We do this research ourselves on every project we take on — zoning, floodplain, watershed, trees, whether it is a legal lot. Send us an address and we will run it and tell you what we find. It works the same whether you own a vacant lot, a house you are thinking of adding a unit to, or a house you are thinking of replacing. No charge and no strings, and if it is a bad lot we will say so.

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We are homebuilders, not the City of Austin. This page explains how we read the code in practice — it is not legal advice and it is not an official determination. Always confirm with Austin Development Services before you rely on it for a project. The authoritative text is the Austin Land Development Code; permitting questions go to Austin Development Services Department.

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