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In correlation with the Facilitating Housing Toolbox, H-GAC has answered some common housing-related questions. Before using any tools in the Housing Toolbox, think to yourself:
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What are my community’s unique housing concerns?
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Might my housing concerns be addressed through policy, through certain incentives programs, or through an expansion of partnerships?
Based on your response, the Housing Toolbox will lead you to policy, incentive, and partnership tools that you can deploy. This guide lists a few questions you might ask and then lists tools from the Housing Toolbox that address these unique scenarios. Indicated tools are not prescriptive or exhaustive; they are intended as examples for how tools can be applied to a specific question.
How do we preserve the look and feel of our community while allowing for new housing development?
By enacting local zoning, municipalities can ensure that new developments fit the envisioned “look hand feel” of an area. While zoning is one option, city codes and ordinances can be also revised to meet the needs of the community and promote residential areas that can serve multiple functions.
Mixed-use Zones
Definition: Permitting commercial, residential, and even in some instances, light industrial uses in the same area.
The City of Sugar Land has mixed use conservation districts to protect the visual character of the built environment. Both residential and restricted non-residential use are permitted in the districts, which also allow for accessory dwelling units and home occupations.
Housing Specific Zones
Definition: Permitting or requiring specific residential types, like multifamily housing, in designated areas.
Missouri City’s Code of Ordinances classifies residential use districts, each with density, landscaping, and parking requirements depending on the neighborhood characteristics to ensure a variety of housing types are accommodated and to ensure a consistent local feel.
Form Based Codes
Definition: Using physical form and aesthetics as the basis for allowed buildings in a given area, rather than building uses.
The City of Bastrop, Texas adopted a form-based code ordinance in 2014 to preserve and enhance the character of the historic downtown area and adjoining neighborhoods. The code outlines appropriate infill and redevelopment standards for the neighborhoods adjoining downtown.
Adaptive Reuse: Historic Preservation
Definition: Renovating or reusing existing structures for new purposes, like housing.
Tyler, TX has a historic preservation plan; the historic Moore grocery store was converted into 80 new living spaces within the City’s Adaptive Reuse District, intended to allow for the rehabilitation and reuse of residential buildings and other buildings in historically residential areas.
How do we leverage our existing downtowns and commercial corridors to be lively, walkable communities where people want to live?
Building lively, walkable downtowns helps establish a sense of place and community. Housing near downtown destinations could attract both younger residents and empty nesters who want to walk to enjoy amenities. Walkable downtowns also draw visitors from surrounding communities.
Building Line/Lots Size Modification
Definition: Changing minimum or maximum size requirements for buildings or lots to enable desired housing types.
In 1999, Houston reduced the minimum lot size for homes from 5,000 square feet to 1,400 square feet to encourage greater housing diversity. Existing parcels can be subdivided to accommodate more housing on the same area of land, creating more walkable neighborhoods. Used in combination with parking reductions or exemptions and other policy adjustments, lot size modifications can make neighborhoods more walkable.
Parking Reduction or Exemption
Definition: Reduce or eliminate requirements to provide a certain number of parking spots for multifamily residences.
Port Aransas offers parking alternatives, including shared parking that can be used by multiple businesses at different times; off-site parking located on a separate lot from the building itself; and reduction in required off-street parking spaces for developments that accommodate bicycles.
Density Bonus Ordinance
Definition: Developers are incentivized to build more affordable housing units or attractive streetscapes when the city allows more units to be built on a parcel than would be otherwise allowed.
The Downtown Density Bonus Program (DDBP) in Austin allows developers to build taller buildings with more units in exchange for community benefits, like affordable housing units and attractive streetscapes.
Accessory Dwelling Units
Definition: A smaller, stand-alone residential unit located on the same lot as another residential unit.
In 2010, Port Aransas approved new zoning rules that allowed for small residences, or accessory dwelling units, on single-family home lots to increase available housing for renters. Accessory dwelling units can be affordable housing options for seniors and young professionals.
Low-Income Housing Tax Credits
Definition: A dollar-for-dollar credit reduction in income taxes for developers that construct or rehabilitate low-income housing.
Cottages at South Acres, a 144-unit affordable community of single-family homes in Southeast Houston, was funded in part by the purchase of $15.2 million in low income housing tax credits, in addition to $3.1 million in HOME Investment Partnership funds, and a $15.8 million construction loan from Capital One Bank.
How do we build infrastructure to support new housing projects?
A lack of infrastructure to support new housing development can stall housing projects. Here are some ways to build or improve local infrastructure and partially fund housing development or redevelopment.
Tax Increment Reinvestment Zones
Definition: A political subdivision that uses property taxes from a designated area to fund public improvement projects in that area.
The City of Houston has 27 Tax Increment Reinvestment Zones, which use property taxes to fund infrastructure, in addition to affordable housing, façade programs, and other public improvements. A TIRZ is created by city ordinance.
Chapter 380/381 Agreements
Definition: An agreement between a municipality and a developer that provides sales tax incentives to the developer in exchange for their project meeting performance metrics.
To partially fund landscaping, signage, and façade improvements at a mixed-use property in Tomball, TX, the city negotiated a Chapter 380 agreement with the developer, BakerKatz. Chapter 380 of the Local Government Code authorizes municipalities to offer incentives, while Chapter 381 allows counties to provide incentives to developers.
Community Development Block Grants
Definition: Either directly appropriated to entitlement communities, or applied for by non-entitlement communities, Community Development Block Grant funding can be used for housing rehabilitation and acquisition, and a wide variety of other housing support projects—including infrastructure.
Among a variety of other uses, Missouri City used CDBG recovery funds to rehabilitate 17 households—12 of them low- or very low-income—making them more energy efficient and handicap accessible.
Tax-Exempt Bonds
Definition: Municipalities can issue bonds to developers for housing activities. Developers do not need to pay taxes on the interest earned.
The Texas State Affordable Housing Corporation issued $4.2 million in bonds to acquire and rehabilitate the Brooks Manor Apartments in West Columbia, Texas. The developer will add new roofs, energy efficient windows and Energy Start certified HVAC systems to improve the existing housing.
Streamline Processes
Definition: Align the departments in a city responsible for approving a development and expedite the process to help reduce developer costs.
The Houston Permitting Center is a one-stop shop for review and collection of permits for most developments, including single-family houses and single-family and commercial properties.
How do we ensure that our elderly population can age in place?
As the elderly population grows, municipalities might want to explore “age in place” housing solutions that discourage displacement. Elderly populations also benefit from housing rehabilitation and maintenance programs.
Accessory Dwelling Units
Definition: A smaller, stand-alone residential unit located on the same lot as another residential unit.
In 2010, Port Aransas approved new zoning rules that allowed for accessory dwelling units, also known as granny flats, on single-family home lots; ADUs are a possible way to accommodate aging family members.
HOME Investment Partnership Program
Definition: Formula grants to States to be used for grants, direct loans, loan guarantees or other forms of credit enhancements, of for rental assistance or security deposits.
HOME awards are allocated as formula grants from States to participating jurisdictions. The City of Tyler, TX participates in the program and publishes an annual action plan describing their planned use of these funds. In 2012, the city spent HOME funds on rehabilitation, new construction, and the Andrew Center, a behavioral healthcare center specializing in mental health.
Streamline Processes
Definition: Align the departments in a city responsible for approving a development and expedite the process to help reduce developer costs.
The Houston Permitting Center is a one-stop shop for review and collection of permits for most developments, including single-family houses and single-family and commercial properties.
How can our community maintain its historic character and promote housing diversity at the same time?
Historic buildings can distinguish and anchor communities. Instead of building a new housing development, developers can thoughtfully restore buildings and convert them into housing.
Adaptive Reuse: Historic Preservation
Definition: Renovating or reusing existing structures for new purposes, like housing.
Tyler, TX has a historic preservation plan; the historic Moore grocery store was converted into 80 new living spaces within the City’s Adaptive Reuse District, intended to allow for the rehabilitation and reuse of residential buildings and other buildings in historically residential areas.
Texas Historic Preservation Tax Credit
Definition: Tax credits worth 25% of the developer’s rehabilitation costs for buildings listed in the National Register of Historic Places, as well as Recorded Texas Historic Landmarks and Texas State Antiquities Landmarks.
In Galveston, Texas Historic Preservation Tax Credits were used to finance the restoration of a single-family home to its historical use as a duplex. If planning an adaptive reuse project, tax credits can help make the project feasible.
Streamline Processes
Definition: Align the departments in a city responsible for approving a development and expedite the process to help reduce costs for developers doing adaptive reuse projects.
The Houston Permitting Center is a one-stop shop for review and collection of permits for most developments, including single-family houses and single-family and commercial properties.
How can we prevent displacement due to rising cost of housing?
Preserving affordable housing and prioritizing developments that include middle-income housing options will help protect residents that have lived in communities for years.
Land Banking
Definition: Land banks are public or community-owned entities that acquire, maintain, and repurpose vacant, abandoned, and foreclosed properties.
The Houston Land Bank strategically acquires and stewards vacant, abandoned, and damaged properties and conveys them into productive uses.
Public Property Sales
Definition: Publicly owned land can be sold at minimal cost to developers with the stipulation that affordable housing will be constructed on the lot within a specified time period.
The City of Bryan’s Housing Infill Neighborhood Revitalization Program (HINRP) funds the acquisition of property and development of new homes, primarily to benefit low-to-moderate income residents.
Accessory Dwelling Units
Definition: A smaller, stand-alone residential unit located on the same lot as another residential unit.
In 2010, Port Aransas approved new zoning rules that allowed for small residences, or accessory dwelling units, on single-family home lots to increase housing at a reasonable cost for renters.
Housing Trust Fund
Definition: Housing trusts receive ongoing public funding to support the preservation and production of affordable housing.
In a housing trust fund model, the Austin City Council dedicates 40% of City property tax revenues from developments that have been built on previously City-owned land toward affordable housing.
Low-Income Housing Tax Credits
Definition: A dollar-for-dollar credit reduction in income taxes for developers that construct or rehabilitate low-income housing.
Cottages at South Acres, a 144-unit affordable community of single-family homes in Southeast Houston, was funded in part by the purchase of $15.2 million in low income housing tax credits, in addition to $3.1 million in HOME Investment Partnership funds, and a $15.8 million construction loan from Capital One Bank.
Neighborhood Empowerment Zones
Definition: Designated areas that can waive certain development fees for residential or commercial projects.
In 2018, City Council unanimously approved Magnolia Neighborhood Empowerment (NEZ) 1, which allowed for the development of Magnolia's first mixed-use complex, both creating and rehabilitating affordable housing.
How can we update our aging housing stock?
Housing stock that was largely built at the same time years ago may be in need of reinvestment. This can be challenging because rehabilitation can be an expensive prospect, however there are ways to finance reinvestment in existing housing.
Tax Exempt Bonds
Definition: Municipalities can issue bonds to developers for housing activities. Developers do not need to pay taxes on the interest earned.
The Texas State Affordable Housing Corporation issued $4.2 million in bonds to acquire and rehabilitate the Brooks Manor Apartments in West Columbia, Texas. The developer will add new roofs, energy efficient windows and Energy Start certified HVAC systems to improve the existing housing.
Low Income Housing Tax Credit (4% for rehabilitation)
Definition: A dollar-for-dollar credit reduction in income taxes for developers that construct or rehabilitate low-income housing.
Cottages at South Acres, a 144-unit affordable community of single-family homes in Southeast Houston, was funded in part by the purchase of $15.2 million in low income housing tax credits, in addition to $3.1 million in HOME Investment Partnership funds, and a $15.8 million construction loan from Capital One Bank.
Community Development Block Grants
Definition: Either directly appropriated to entitlement communities, or applied for by non-entitlement communities, Community Development Block Grant funding can be used for housing rehabilitation and acquisition, and a wide variety of other housing support projects—including infrastructure.
Among a variety of other uses, Missouri City used CDBG recovery funds to rehabilitate 17 households—12 of them low- or very low-income—making them more energy efficient and handicap accessible.
Tax Increment Reinvestment Zones (TIRZ)
Definition: A political subdivision that uses property taxes from a designated area to fund public improvement projects in that area.
The City of Houston has 27 Tax Increment Reinvestment Zones, which use ad valorem property taxes to fund infrastructure, in addition to affordable housing, façade programs, and other public improvements. TIRZ can work alone or partner with other organizations to purchase and rehabilitate aging housing.
Housing Trust Fund
Definition: Housing trusts receive ongoing public funding to support the preservation and production of affordable housing.
Austin City Council dedicates 40% of City property tax revenues from developments that have been built on previously city-owned land toward affordable housing.
Chapter 380/381 for Aging Infrastructure Improvements
Definition: An agreement between a municipality and a developer that provides sales tax incentives to the developer in exchange for their project meeting performance metrics.
To partially fund landscaping, signage, and façade improvements at a mixed-use property in Tomball, TX, the city negotiated a Chapter 380 agreement with the developer, BakerKatz.
What new housing types are needed to attract the next generation?
In general, a diversity of housing types appropriate for a variety of incomes will attract younger residents and young families to an area. Housing near downtown destinations could also attract younger residents.
Tax Abatements
Definition: A temporary elimination or reduction in property taxes to incentivize construction of affordable housing or to provide indirect assistance to lower-income households to rehabilitate their homes.
The City of Houston approved tax abatements for the Cullen South Houston Apartment project in 2015, exempting the developer from 90% of taxes on the property in exchange for the development of new student housing.
Mixed-used Zones
Definition: Permitting commercial, residential, and even in some instances, light industrial uses in the same area.
Rockport introduced a zoning overlay to encourage pedestrian-oriented, mixed-use development, providing retail and office space in addition to housing. Mixed use zones allow for a variety of housing types for different levels of income and other attractions to appeal to younger residents.
Form Based Codes
Definition: Using physical form and aesthetics as the basis for allowed buildings in a given area, rather than building uses.
The City of Bryan approved Pattern Zoning in 2020 in their Midtown Area. They offer options for architect-designed building types pre-approved by the City of Bryan’s Development Services Office to help small developers and property owners improve housing quality.
Adaptive Reuse
Definition: Renovating or reusing existing structures for new purposes, like housing.
Tyler, TX has a historic preservation plan; the historic Moore grocery store was converted into 80 new living spaces within the City’s Adaptive Reuse District, intended to allow for the rehabilitation and reuse of residential buildings and other buildings in historically residential areas.
How can we balance housing - to ensure that a renter can buy, an empty nester can rent, a senior can find assisted living - to preserve community?
Balanced housing is crucial for meeting the needs of your community, attracting jobs, and maintaining a sense of place. When taking stock of existing housing, it might be necessary to add build new multifamily units, allow for accessory dwelling units in established neighborhoods, or repurpose vacant or foreclosed properties into single-family homes—or a mix of all three.
Accessory Dwelling Unit (ADU)
Definition: A smaller, stand-alone residential unit located on the same lot as another residential unit.
In 2010, Port Aransas approved new zoning rules that allowed for small residences, or accessory dwelling units, on single-family home lots that can be used flexibly for senior assisted living or younger renters.
Adaptive Reuse
Definition: Renovating or reusing existing structures for new purposes, like housing.
Tyler, TX has a historic preservation plan; the historic Moore grocery store was converted into 80 new living spaces within the City’s Adaptive Reuse District, intended to allow for the rehabilitation and reuse of residential buildings and other buildings in historically residential areas. Keeping old buildings intact helps preserve a sense of continuity in community.
Land Banking
Definition: Land banks are public or community-owned entities that acquire, maintain, and repurpose vacant, abandoned, and foreclosed properties.
The Houston Land Bank strategically acquires and stewards vacant, abandoned, and damaged properties and conveys them into productive uses.
Density Bonus Ordinance
Definition: Developers are incentivized to build more affordable housing units or attractive streetscapes when the city allows more units to be built on a parcel than would be otherwise allowed.
The Downtown Density Bonus Program (DDBP) in Austin allows developers to build taller buildings with more units in exchange for community benefits, like affordable housing units and attractive streetscapes.
Public Property Sales
Definition: Publicly owned land can be sold at minimal cost to developers with the stipulation that affordable housing will be constructed on the lot within a specified time period.
The City of Bryan’s Housing Infill Neighborhood Revitalization Program (HINRP) funds the acquisition of property and development of new homes, primarily to benefit low-to-moderate income residents.
What “transit-oriented” housing options can help cut down on traffic?
Locating housing near transit stops helps cut down on traffic, allows residents to save money on transportation costs, and increases transit ridership.
Mixed-use Zones
Definition: Permitting commercial, residential, and even in some instances, light industrial uses in the same area.
Rockport introduced a zoning overlay to encourage pedestrian-oriented, mixed-use development, providing retail and office space in addition to housing. Increasing safe options for walking, biking, and public transit will cut down on vehicle traffic.
Building Lot/Line Size Modifications
Definition: Changing minimum or maximum size requirements for buildings or lots to enable desired housing types.
In 1999, Houston reduced the minimum lot size for homes from 5,000 square feet to 1,400 square feet to encourage greater housing diversity. Existing parcels can be subdivided to accommodate more housing on the same area of land in greater proximity to transit options.
Tax Increment Reinvestment Zones
Definition: A political subdivision that uses property taxes from a designated area to fund public improvement projects in that area.
The City of Houston has 28 Tax Increment Reinvestment Zones, which use ad valorem property taxes to fund infrastructure, in addition to affordable housing, façade programs, and other public improvements.
Density Bonus Ordinance
Definition: Developers are incentivized to build more affordable housing units or attractive streetscapes when the city allows more units to be built on a parcel than would be otherwise allowed.
The Downtown Density Bonus Program (DDBP) in Austin allows developers to build taller buildings with more units in exchange for community benefits, like affordable housing units and attractive streetscapes. Building multi-family homes along transit corridors, bike paths, or walkable streets will encourage alternatives to car travel.
Parking Reductions/Exemptions
Definition: Reduce or eliminate requirements to provide a certain number of parking spots for multifamily residences.
Port Aransas offers parking alternatives in their parking requirements, including shared parking used by more than one business at different times; off-site parking located on a separate lot from the building itself; and reduction in required off-street parking spaces for developments that accommodate bicycles.