As Acacia Cliffs rezoning is approved, Critics say Council has sold out on its affordability commitments

The zoning reforms that have come to define our City Council are having a moment in the spotlight, earning shout outs from Vice President J.D. Vance and New York Times bestseller Ezra Klein, whose recent book Abundance presents an approach that will be familiar to most Austinites–tweaking land use code alongside market-based incentives as a way out of our affordable housing crisis. But for the hundreds of apartment tenants in Northwest Austin who will soon lose their homes to redevelopment, their city’s esteem as a champion of smart housing policy couldn’t seem more unearned.

Despite months of tenacious organizing, the residents of Acacia Cliffs lost the battle for their apartment complex last Thursday when Council unanimously voted to approve its rezoning under the density bonus 90 program (DB90), clearing the way for a brand new, seven-story building granted extra square feet in exchange for providing roughly 80 of its 700 proposed units at 50-60 percent of the median family income (MFI). Yet the development will also mean the loss of the 290 existing apartments offering rent at an increasingly rare 30 to 45 percent MFI, an outcome that critics say is incomprehensible under a program that, when passed last February, was framed as a means of generating affordability.

In weeks leading up to the vote, Mayor Kirk Watson took to City Council’s message board and his newsletter ‘The Watson Wire’ to announce forthcoming reforms to the density bonus program, which he acknowledged had “unintended consequences” that “need to be addressed”. Given the admission, Council’s move to grant those same entitlements to the project at Acacia Cliffs left tenants and their supporters expressing outrage.

Per DB90’s terms, developer Trammell Crow will reimburse displaced residents, who can expect to receive up to $5,000 cash in moving expenses and relocation benefits for their troubles. Yet speakers say the deal is a flash in the pan considering the housing crisis faced by Austin’s low -income renters.

“If any of your words about affordability mean anything, the vote here today is no… If you believe in supply and demand housing, you must vote no, because as you heard this morning, you have created fewer than 500 of the 22,000 units you need at this income level, and this would set us back by 290,” said organizer Carmen Llanes, referring to city housing goals adopted in 2017. “If you approve this today, you send the message to investors and their lobbyists that the Strategic Housing Blueprint means absolutely nothing for anyone under the median family income in this city.”

The controversy has pushed Council to reexamine DB90 in a resolution initiating amendments to its program of entitlements and concessions, which includes consideration of a one-to-one replacement of low-rent units lost to redevelopment. Council Member Marc Duchen, whose district encompasses Acacia Cliffs, says he also plans to propose a housing opportunity fund designed to preserve the city’s existing affordable housing stock, a model that has seen some success in Dallas.

Still, the measures are too little too late for the residents of Acacia Cliffs and their supporters, who say that the developer-friendly approach to the housing crisis has exacerbated the displacement of low-income Austinites and eroded their trust in City Council.

“The City Council prides itself in being at the forefront of addressing the housing affordability crisis. There’s been a report that the city has led in affordable housing construction in 2024, and that there were at least 4,600 affordable units built last year… but who can afford these?” said PODER Housing Justice Director Noah Elias. “You can see the Austin area median family income, which is now at $133,800. What that means is someone making 50 percent MFI (makes) around $66,900, while somebody making 60 percent MFI would be making around $80,240.”

“DB90 was a mistake,” added Llanes. “It gives away everything that Greg Casar’s beloved Affordability Unlocked promised in exchange for on-site units, and it has basically made it so that affordable developers cannot compete with this perverse incentive.”

Organizers with groups like PODER and Vocal Texas have proposed their own solutions to the housing crisis, including abolishing fee-in-lieu policies that allow developers to skirt on-site unit requirements, programs like Portland’s right-to-return policy for displaced East Austinites, and a  low-income housing trust fund modeled after initiatives in Denver. 

For now, the coalition of advocates says the case at Acacia Cliffs is another betrayal of Council’s purported values.

“Mayor Watson, you know how much I respect and appreciate you…but when you were campaigning, I believe that you had door hangers that said affordability first,” said Zilker Neighborhood Executive Committee member Robin Rather. “This is where the rubber meets the road.”

The Austin Monitor’s work is made possible by donations from the community. Though our reporting covers donors from time to time, we are careful to keep business and editorial efforts separate while maintaining transparency. A complete list of donors is available here, and our code of ethics is explained here.

Posted In: Housing, District 10