Purple public notice slips mailed to Austinites: What do they mean?

If you live in Austin, you may have noticed a purple "public notice" slip in the mail. It has two proposed changes to the land development code.

One has to do with short-term rental code amendments, and the other is about preservation bonus code. 

Short-term rental code amendment

The backstory:

There are about 2,200 licensed short-term rentals (STRs) in Austin. 

"We believe that there are many out there operating without a license," Daniel Word, assistant director of Austin's Development Services Department, said.

The code amendments would require a license number to be displayed on the online posting for an STR and for platforms to take down listings if not properly licensed.

"We are trying to encourage responsible short-term rental ownership and operation," Word said.

RELATED: Austin considers changes to short-term rental codes

If someone wants to operate more than one STR, they have to be at least 1,000 feet apart. 

The platforms also need to collect hotel occupancy tax owed to the city. The tax supports cultural use, historical preservation, and tourism. 

"We're trying to achieve a balance of trying to allow a homeowner to supplement their income through the use of a short-term rental, but at the same time trying to balance the concern of having too many short-term rentals in an area that could potentially drive up prices on housing," Word said.

Preservation bonus code amendment

The backstory:

The other part of the notice is about a preservation bonus code amendment.

This stems from the HOME Initiative that the City Council passed in 2023, which allows up to three units to be built on a single lot. 

Currently, there is a limit to how big those two new units can be. The amendment would let you build slightly larger units in exchange for preserving the original structure. 

"This is to incentivize protecting and preserving existing homes in our city, and the opposite side of that is to preserve the community character of not demolishing smaller homes," Keith Mars, assistant director of Austin's Development Services Department said.

The amendment would increase the maximum square footage by roughly a thousand square feet. However, you can't increase impervious cover, which is any human-made surface that doesn't absorb rainfall, like the roof or the driveway. 

"Everything that you build vertically going up is what you're allowed, have more flexibility to build a larger unit but without increasing the amount of surface," Mars said.

What's next:

Public hearings for STR code amendments will be:

  • Feb. 4, 1 p.m. - Joint Planning Commission and City Council meeting
  • Feb. 11, 6 p.m. - Planning Commission meeting
  • Feb. 27, 10 a.m. - City Council meeting
  • Hearings for the preservation bonus code amendment will be:
  • April 1, 2 p.m. - Joint Planning Commission and City Council meeting
  • April 8, 6 p.m. - Planning Commission meeting
  • April 24, 10 a.m. - City Council meeting

You can also submit comments online. For more information, click here.

The Source: Information from interviews conducted by FOX 7 Austin's Angela Shen

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