AUSTIN (KXAN) — Scott Turner, the owner of Riverside Homes, is one of the more than 100 people who has been approved to utilize HOME part one — one of the recent land development code changes made by the city of Austin aimed at housing affordability. With it, he’s going to build a 260-square-foot detached home or tiny home in Austin. Before the land development code change went into place earlier this year, that build would have been prohibited in the city. “I really don’t know what to expect other than I should be able to sell that tiny home at a price that I haven’t been able to sell anything at for many many many years,” Turner said.
The application process for the second iteration of the HOME initiative, HOME part two, rolled out Friday. Applications will be rolled out in two phases as the city works through protections for fire safety and displacement. The entire city will be able to apply in November.
HOME phase one HOME, an acronym for Home Options for Middle-income Empowerment, is a series of changes to Austin’s land development code — and other incentives for creating or preserving housing. HOME phase one was approved in late 2023 and the application process for it opened up in February of 2024. Phase one includes the following:
• Three units: Bumping the number of units “by right” allowed on a single-family lot to three
• Tiny Homes: Patching loopholes in Austin’s land development code to more easily allow for tiny homes to be considered a unit on a lot zoned as single-family
• Preserving existing homes: Part of the HOME initiative creates a bonus program that encourages the preservation of houses already on lots
• House Size Limits: Setting “size constraints” to force smaller units So far, 162 people have filed applications under HOME part one, city data shows. More than 100 of those applications have been approved. If all were to be approved, the city says more than 300 new housing units would come online as a result.
“I hope that continues. So we’ve got kind of a gentle accretion of additional infill if you will and adding more homes at lower cost so that we can address the really desperate need that we have in our community for homes for folks,” Mayor Pro Tem Leslie Pool previously told KXAN.
Home phase two After the first phase of HOME was approved by Austin City Council, the second phase was considered this year. The second phase of HOME focuses on minimum lot size — meaning, how much land is required to put a single unit on it. The idea is that smaller lots will allow for the creation of more housing. Previously, in the city, most single-family lots were zoned, so you need a minimum of 5,750 square feet to build a single unit. Austin City Council voted to drop that down to 1,800 square feet. It’s worth noting that phase one and phase two of HOME don’t necessarily build on each other here. Only one single unit can be built on each 1,800-square-foot plot of land. To build condominiums or other similar structures approved in phase one, the lot size requirements remain the same.
The application process for HOME part two opened Friday for some. Turner told us he’s hopeful it will be just another tool to allow builders like him to offer more housing options to Austin buyers. “The process for getting my permit for my third unit under HOME one was relatively straightforward. It took about a month, maybe a month and a half,” he said. But Turner wonders if the rollout for HOME part two applications will be less popular. He says subdividing a lot with the city is expensive — to the tune of $100,000 — and can be a years-long process. “I think that really it’s going to put a lot of pressure on the city to really simplify and clean up its development approval process so that people really can use HOME 2 the way it was intended to be,” he said.
Expanding Housing Options in Austin
With the introduction of the HOME initiative in Austin, the city is making strides towards addressing the pressing issue of housing affordability. By allowing for the construction of smaller units and incentivizing the preservation of existing homes, the program aims to create more housing options for residents. Scott Turner, a local builder, is just one of many individuals who have already benefited from the changes brought about by HOME part one. His plan to build a tiny home in Austin demonstrates how these new regulations are opening up possibilities that were previously restricted by outdated land development codes.
One of the key aspects of HOME phase one is the allowance for three units on a single-family lot, a significant increase from previous regulations. This change enables builders like Turner to maximize the use of available land and provide more housing units within the city limits. Additionally, the inclusion of tiny homes as a viable housing option further diversifies the market and caters to individuals looking for affordable and compact living spaces. By encouraging the preservation of existing homes through bonus programs, the initiative also seeks to maintain the unique character of Austin’s neighborhoods while increasing overall housing stock.
Impacts of HOME Phase One
The implementation of HOME phase one has already resulted in a significant number of applications being filed, with over 100 approvals granted thus far. This influx of new housing units is a positive step towards addressing the growing demand for affordable homes in Austin. The potential for over 300 additional units to become available highlights the impact that these regulatory changes can have on the local housing market.
Mayor Pro Tem Leslie Pool’s endorsement of the HOME initiative underscores the importance of providing more housing options for residents in need. The gradual expansion of infill housing and the reduction of unit size constraints are key components of the program’s success. By allowing for the development of smaller units on smaller lots, the city is paving the way for increased density without compromising on quality or affordability. As more individuals like Scott Turner take advantage of these opportunities, the landscape of Austin’s housing market is set to evolve in a positive direction.
Looking Towards HOME Phase Two
As the city moves forward with the implementation of HOME part two, the focus shifts towards minimum lot size requirements. By reducing the minimum land area needed to build a single unit, Austin City Council aims to create more opportunities for housing development on smaller plots. The decision to lower the threshold from 5,750 square feet to 1,800 square feet reflects a commitment to increasing housing density and promoting efficient land use within the city limits.
While phase two of HOME introduces new regulations regarding lot size, it is important to note that these changes do not directly build upon the provisions of phase one. Each 1,800-square-foot plot of land is limited to one single unit, maintaining the integrity of the program’s objectives. For builders and developers looking to capitalize on the benefits of HOME part two, understanding the nuances of the updated regulations will be essential in navigating the application process effectively.
Challenges and Opportunities Ahead
As the application process for HOME part two opens up, individuals like Scott Turner are eager to see how these new regulations will impact the housing market. While the streamlined permit process for phase one was relatively straightforward, concerns remain regarding the potential challenges of subdividing lots and meeting city requirements. The high costs associated with land development and the lengthy approval process pose significant obstacles for builders looking to take advantage of the program.
Turner’s call for a simplified and efficient development approval process highlights the need for continued improvements in the city’s regulatory framework. By addressing these challenges and providing clearer guidelines for applicants, Austin can ensure that the HOME initiative fulfills its intended purpose of expanding housing options for residents. As the city strives to meet the growing demand for affordable homes, initiatives like HOME part two play a crucial role in shaping the future of Austin’s housing market.
In conclusion, the HOME initiative represents a significant step forward in addressing housing affordability in Austin. By introducing new regulations, incentives, and opportunities for builders and developers, the program is creating a more diverse and sustainable housing market. As phase two of HOME unfolds, it is essential for stakeholders to collaborate, adapt, and innovate in order to maximize the benefits of these regulatory changes. With a focus on increasing housing density, preserving neighborhood character, and promoting affordability, Austin is poised to set a new standard for housing development in the years to come.
