Industry Update: Keeping Austin Balanced: Key Policy Updates Impacting the Rental Housing Industry

By Carrie Smith, TexAdvocacy Partners

At the Austin Apartment Association (AAA), we’re constantly at the forefront of the evolving policies shaping our city. From amendments to the International Property Maintenance Code (IPMC) to the recent appointment of a new police chief, there’s been no shortage of important developments. Here’s an informative roundup of the hottest topics that have kept us busy this summer, and what they mean for the central Texas rental housing industry.

IPMC Amendments: Protecting Your Interests and Streamlining Compliance

The City of Austin recently released proposed amendments to the International Property Maintenance Code (IPMC), which could impact all multifamily properties across the city. The Austin Code Department uses the IPMC to ensure compliance, particularly within the Repeat Offender Program (ROP).

Our advocacy efforts have focused on protecting rental housing properties from unnecessary penalties. Specifically, we’re asking that actions against properties be taken only if tenants reported an issue and landlords failed to respond within the state property code’s required timeframe. Additionally, we’ve suggested that new property owners of ROP-listed properties be given extra time to comply before being required to register as Repeat Offenders.

These amendments will go before Austin City Council this fall and take effect in January. We are closely involved in ensuring that the IPMC works for our members. Rest assured, AAA is making sure the voices of multifamily owners are heard loud and clear!

Austin City Council Member Ryan Alter and Rental Housing Fees: What’s the Deal?

Another hot topic at Austin City Hall has been the potential regulation of rental housing fees, spearheaded by Council Member Ryan Alter. His resolution, which aims to regulate the disclosure of fees, has sparked concern across the rental housing industry.

Our team at AAA has been busy advocating at City Hall, expressing concerns about the possible unintended consequences of such regulations. We fear that this could pave the way for more restrictive ordinances in the future, including fee caps that could hurt both property owners and renters in the long run.

Fortunately, thanks to our proactive efforts, Council Member Alter has paused his proposed action and returned to the drawing board on this issue. While this is a victory for now, the topic remains on our radar, and we’ll continue monitoring any developments. Advocacy in action!

Simplifying Alarm Permitting

Another major change on the horizon is the city of Austin’s new multifamily alarm permitting rules. These changes are designed to simplify the permitting process and make compliance easier for property owners. The rules also shift terminology away from terms like “master permit” in favor of “principal,” while codifying current practices for fee waivers.

Under the new rules, individual tenants will be required to obtain permits for alarms in their units—a move that could cut down on noncompliance fines. While fees for master permits are set to increase, the overall financial burden is expected to decrease due to the streamlined approach. The new rules will take effect on October 1 as part of the city’s upcoming budget. We’ll keep you posted on how this impacts your properties.

Budgeting for the Future: Austin City Council’s 2024-2025 Proposal & Property Tax Increases

The Austin City Council recently approved their $5.9 billion proposed budget for 2024-2025, with a strong focus on affordable housing, infrastructure, and community services. Among the highlights are significant investments in generational projects like expanding the Austin-Bergstrom International Airport and redeveloping the Austin Convention Center.

However, for many Austin residents, the budget means higher property taxes. Homeowners are looking at an increase of $8.52 per month in property taxes, and rates for essential services like electricity, trash, water, and drainage are also expected to rise. This comes on the heels of the Texas Legislature’s property tax cap, and many multifamily property owners are concerned about the implications for renters.

Unfortunately, unlike owner-occupied homes, rental properties don’t benefit from the same property tax exemptions, which often forces landlords to pass these increased costs onto tenants. These dynamic impacts affordability, especially for smaller properties owned by “mom and pop” landlords.

Solutions? Responsible Property Tax and Bond Management Is Key

AAA is all about finding solutions, and we’re urging city leaders to be mindful when managing property taxes and bond packages. Affordability needs to be top of mind because when renters thrive, so does our community. Collaboration among property owners, local government, and community stakeholders will be crucial to maintaining a healthy rental market and keeping Austin affordable for everyone.

Public Safety Update: Austin Welcomes New Police Chief Lisa Davis

In other big news, Austin has a new sheriff in town— well, police chief. Meet Lisa Davis, recently Austin confirmed as Police Chief. With a strong background in problem-solving and community policing, Davis is stepping into a role that’s been under intense scrutiny. She’s committed to addressing crime and disorder while improving the quality of life for all residents—something that directly impacts Austin’s multifamily communities.

Why Public Safety Matters for Multifamily Housing

We’ve all felt it: crime rates are up, police response times are lagging, and residents are feeling uneasy. As it stands, the Austin Police Department (APD) is operating with 463 vacancies, including 330 sworn officer positions. As a result, response times are 30-40% higher than the department’s goals, and many non-emergency crimes are being rerouted to 311 instead of getting an immediate response from officers. For a city that’s grown so rapidly, this isn’t just an inconvenience—it’s a public safety crisis.

That’s why AAA strongly supports the highly anticipated long-term contract proposal between the City of Austin and APD. This contract is crucial for filling those vacant positions and addressing the crimes that impact your businesses, residences, and quality of life. By providing officers with stability and clear incentives, the contract will help the city recruit and retain the best officers, which is essential for addressing crime. This contract should be finalized soon, which is a moment we have all been waiting for. Stay tuned for more details soon.

*ICYMI – APD has a new interactive data portal to view statistics about incidents in your area. Check it out here: https://datahub.austintexas.gov/stories/ s/8fv5-rasp.

Wrapping It All Up

It’s clear that Austin’s multifamily housing industry is at the center of many important discussions. Whether it’s advocating for practical property maintenance standards, keeping an eye on rental housing fee regulations, or supporting public safety efforts, the Austin Apartment Association is here to protect our members and promote a thriving rental community.

As we move forward into fall, we’ll continue to engage with city leaders, push for balanced solutions, and work to keep Austin a great place to live.

Find out how you can get involved in these and other issues at austinaptassoc.com/be-an-advocate.