Briefing on City Manager's Office Update to the City’s approach to creating affordable housing. [Erica Leak, Officer -City Manager's Office].

The City Manager's Office is updating its approach to creating affordable housing in response to Texas Senate Bill 840, which significantly alters density bonus programs by allowing by-right development in commercial zones. This new legislation reduces the incentive for developers to participate in existing density bonus programs, potentially leading to fewer affordable housing units. The city is now focused on identifying and implementing new incentives to address this gap, with stakeholder collaboration planned for late 2025/early 2026 and recommendations for new incentives by spring 2026.

The city is exploring new strategies to ensure affordable housing is created, as state legislation has made existing programs less effective.

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