North - Northwest Austin Edition | July 2024

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North Northwest Austin Edition VOLUME 18, ISSUE 6 JULY 31AUG. 28, 2024

2024 Home Edition

'HOME' builds out

Policy to add residential housing options expands Dozens of multi-unit residences permitted under the city's new HOME allowances are now in the works around Austin, like a project bringing three homes to an East Cesar Chavez property. BEN THOMPSONCOMMUNITY IMPACT

BY BEN THOMPSON

RENDERING COURTESY CITY OF AUSTIN

be built on much smaller footprints. “This is a way to bring down our average price points, oer something in the neighborhood that doesn’t exist, and be selling to a broader range of people,” said homebuilder Thomas Joseph of Joseph Design Build.

single-family homes have long been the norm. The controversial policy followed unsuccessful attempts by City Hall to broadly revise Austin’s land development code. HOME’s rst stage allowed multiple housing units to be built on single-family-zoned property. By late 2024, a second phase will let single homes

Austinites will soon begin seeing more varied types of housing in their neighborhoods under both phases of HOME, or Housing Options for Middle-In- come Empowerment, rolling out this year. HOME was approved by local ocials who said they hope to see it bring more aordable and acces- sible housing types to a city where larger, costlier

CONTINUED ON 22

Also in this issue

Impacts: Oasis Face Bar now open in Northwest Austin (Page 6)

Government: TravCo prepares for child care tax election (Page 8)

Transportation: Safety project incoming for key corridor (Page 9)

Education: Central Texas ISDs struggle with budgets (Page 13)

COMMUNITYIMPACT.COM

WHEN: Wednesday, July 31, 2024 at 5 p.m. - Sunday, September 1, 2024 WHERE: MobilityAuthority.com/183a-ac

YOU’RE INVITED The Central Texas Regional Mobility Authority invites you to participate in a Virtual Open House for the 183A Added Capacity Project to evaluate a fourth lane in each direction of 183A Toll between RM 620 and HeroWay. Explore roadway history, the environmental evaluation, and next steps.

GET INVOLVED

Comments are requested and may be submitted by email to 183aacproject@gmail.com, or by mail to: Central Texas Regional Mobility Authority, c/o 183A Added Capacity, 3300 N. IH-35, Suite 300, Austin, TX 78705. Comments must be received or postmarked by Sunday, September 1, 2024 to be included in the official record of this Virtual Open House.

The open house will be conducted in English. If you need an interpreter or document translator because English is not your primary language or you have difficulty communicating effectively in English, one will be provided to you. If you have a disability and need assistance, special arrangements can be made to accommodate most needs. If you need interpretation or translation services or you are a person with a disability who requires an accommodation to attend and participate in the virtual open house, please contact us at (512) 996-9778 no later than 4 p.m. CT, July 25. Please be aware that advance notice is required as some services and accommodations may require time to arrange.

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Owners John and Jennifer Garrett launched Community Impact in 2005, and the company is still locally owned today with editions across Texas. Our mission is to provide trusted news and local information that everyone gets. Our vision is to build communities of informed citizens and thriving businesses through the collaboration of a passionate team. Our purpose is to be a light for our readers, customers, partners and each other by living out our core values of Faith, Passion, Quality, Innovation and Integrity. About Community Impact

Market leaders & metro team

Reporters Brittany Anderson Elle Bent Amanda Cutshall Dacia Garcia Kameryn Griesser Sarah Hernandez Parks Kugle Haley McLeod Hannah Norton Brooke Sjoberg Ben Thompson Amira Van Leeuwen Gracie Warhurst Zacharia Washington Chloe Young Graphic Designers Alissa Foss Gloria Gonzalez Melissa Johnson Sabrina Musachia

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Impacts

3 Bullseye Bakery The family-owned bakery sells baked goods, quiches, kolaches and coffee. The business space is shared with a new local bar, Bar Gimmicks. • Opened July 3 • 2007 Kramer Lane, Unit 105, Austin • www.bullseyebakery.com 4 True Texas BBQ The H-E-B BBQ chain features barbecue classics including brisket, sandwiches and loaded baked potatoes. The eatery offers indoor seating, take-out options and catering. • Opened June 5 • 500 W. Canyon Ridge Drive, Austin • www.truetxbbq.com 5 Austin Massage Studio The studio offers a variety of body massage services— including Thai, deep tissue, couples massages and foot reflexology—for 30, 45, 60 or 90 minutes. Essential oil and CBD oil add-ons are also available. • Opened in early June • 13812 Research Blvd., Ste. B4, Austin • https://salons-spa.wixsite.com/austinmassagestudio 6 Bellissima Italian Mediterranean Restaurant The family-owned and -operated restaurant’s menu includes dishes such as bruschetta, Greek salad, fresh pasta, risotto, veal, seafood and wood-fired pizza. • Opened June 7 • 8300 N. RM 620, Bldg. K, Ste. 200, Austin • www.bellissimatx.com 7 The Drip Bar The business provides vitamins through IVs and shots plus some beauty services, including Botox, hydrafacials, halotherapy, infrared saunas and red light therapy. • Opened July 8 • 8300 N. RM 620, Ste. 600, Austin • www.thedripbar.com

PECAN PARK BLVD.

45 TOLL

LAKE CREEK PKWY.

POND SPRINGS RD.

CANYON RIDGE DR.

620

183

620

WILSON PARK AVE.

SPICEWOOD SPRINGS RD.

CONCORDIA UNIVERSITY DR.

12A

JOLLYVILLE RD.

MOPAC

620

BULLICK HOLLOW RD.

WALNUT CREEK PARK

GREAT HILLS TRL.

2222

2 3

SPICEWOOD SPRINGS RD.

12B

360

2222

183

MAP NOT TO SCALE

• 10000 Research Blvd., Ste. 254, Austin • www.oasisfacebar.com/austin-arboretum-tx

Now open

1 Oasis Face Bar Oasis offers 30-60 minute skin care treatments including hydrojelly masks and acne cryo facials. In addition, the spa provides wax, tint, lift and lamination facial options. Oasis takes reservations online for bachelorette, birthday and networking parties for up to 20 people. • Opened July 12

2 Bar Gimmicks The business opened its first location in North Austin. The restaurant and bar is Chicago-inspired and serves food and drinks to the local community. • Opened June 20 • 2007 Kramer Lane, Unit 105, Austin • Instagram: bargimmicks

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8 Enchanted Forest Ice Cream The locally-owned shop offers a variety of Hershey’s ice cream flavors, bakery treats and coffee drinks, owner

Coming soon

Fred Dodge said. • Opened June 30 • 6812 N. RM 620, Austin • Facebook: Enchanted Forest Ice Cream

Quali-Tech Electrical Services The mobile business provides residential and commercial electrical services, electrical panel upgrades, lighting installations and related repairs. • Opened in April • www.quali-tech-electrical.com Austin Photo Booths The photo booth rental company began offering services in the Greater Austin area with multiple photo booth experiences. • Opened June 1 • www.austinphotobooths.com

11 Alpha Dessert Juice Cafe Owned by Hamza Ashraf and Kashif Pathan, the Houston-based business will soon serve fresh juices, milkshakes, smoothies, Indian desserts made with vermicelli, syrup, sabja seeds, milk and ice cream in North Austin. • Opening in summer • 1212 W. Parmer Lane, Ste. C, Austin • www.alphadesserts.com

14 Scooter’s Coffee The company offers a variety of drinks that can be served hot, blended or iced, including coffee, lattes, smoothies and protein shakes alongside food items such as bagels, burritos, cake bites, egg bites and more. • Opening in late November • 1412 E. Anderson Lane, Austin • www.scooterscoffee.com

Relocations

9 Dang Hot 89 The local food truck moved locations from 7221 McNeil Drive, Austin, to Celis Brewery. The menu features an array of Nashville hot chicken from bone-in and boneless chicken to sandwiches. • July 5 • 10001 Metric Blvd., Austin • https://howdy-89-llc.square.site

12 Chuy’s The Austin-based chain is being bought out by Darden Restaurants Inc., the owner of companies such as Olive Garden and Cheddar’s Scratch Kitchen, for $605 million. The transaction is expected to take place by November.

Closings

15 Little Kitchen Academy The Montessori-inspired cooking academy closed its Arbor Walk location. The school offered cooking classes to children ages 3-18, and is now offering refunds to customers who purchased gift cards and those who prepaid for future classes. • Closed July 7 • 10515 N. MoPac Expressway, Ste. 135-A, Austin • www.littlekitchenacademy.com

In the news

• A 11680 Research Blvd., Austin • B 10520 N. Lamar Blvd, Austin • www.chuys.com

10 Russell’s Bakery The local coffee shop Coffee Shark announced their closure, and under new ownership, the name of the shop was changed to Russell’s Bakery. New ownership began July 1, making this the third Russell’s Bakery location. • 7300 RM 2222, Unit 111, Austin • www.russellsbakery.com

13 Pho Van The quick-service Vietnamese restaurant reopened their doors following a car crashing into the business. New renovations have been completed on the interior. • Opened July 1 • 8557 Research Blvd., Ste. 120, Austin • www.order.online/business/pho-van-39187

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Government

BY GRACE DICKENS

Travis County gears up for child care tax election Travis County officials will hold a public hearing on the proposed Travis County Creating Access for Resilient Families, or CARES, afford- able child care initiative Aug. 13. Following the hearing, county commissioners must decide by Aug. 19 on whether to call a tax rate election to expand affordable early child care and after-school programs. The impact CARES is proposed with a property tax increase of $0.025 per $100 valuation, equating to about $100 tax bill for the owner of a median-valued home as of 2024. The new revenue would bring in around $77 million to: • Increase day care subsidy spots and incentivize providers to offer reduced-tuition slots • Increase after-school and summer care slots

City opens public safety trailer

Proposed tax increase Travis County officials will likely ask voters to sign off on a property tax increase to fund child care programming.

Current 2023-24 rate

$0.304655*

Northwest Austin has a new law enforce- ment resource, following the launch of a public safety engagement center near city limits on July 11. Council member Mackenzie Kelly said the opening of the new public safety center, a city trailer stationed at 10800 Pecan Park Blvd., came as a result of residents’ calls for a heightened public safety presence in the area. Kelly requested the creation of a police substation in Northwest Austin back in March 2023 at what is now the supportive housing facility Pecan Gardens. Located across the street from Pecan Gardens, the new engagement center will serve as a “tem- porary stopgap,” Kelly said, while plans for a permanent police substation in Northwest Austin remain in development.

Proposed rate increase

$0.025*

New rate

$0.329655*

*PER $100 PROPERTY VALUATION

Tax bill example

2024 median taxable home value: $401,806**

Current tax bill: $1,224.12

Tax bill after proposed increase: $1,324.57

**THE FISCAL YEAR 2023-24 TAX RATE IS SHOWN. THE COUNTY’S FY 2024-25 RATE WILL BE SET THIS FALL, BEFORE A POTENTIAL ELECTION.

SOURCE: TRAVIS COUNTY/COMMUNITY IMPACT

• Expand child care outside traditional work hours • Cover gaps in state funding The update could provide new opportunities for an estimated 9,800 kids and support many child care providers, according to the county.

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Transportation

BY GRACE DICKENS

Plans are in development to increase trac safety along Cameron and Dessau roads, including a new trac signal, protected bike lanes, enhanced pedestrian crossings and more. Project improvements are focused on the road section between E. 51st Street and E. Parmer Lane. Per the project’s virtual open house, proposed improvements include: • Adding or improving pedestrian crossings • Adding protected bicycle facilities throughout the corridor • Enhancing street lighting • Increasing separation between vehicle trafic and sidewalks • Relocation bus stops closer to safe crossings Safety project nearly underway

Moving forward

E. PARMER LN.

Project limits

Residents can provide feedback on the proposed plans through Sept. 3. The project is expected to begin in late 2024 or early 2025. The project is funded through Austin’s 2022 Safe Streets and Roads for All Grant alongside 2020 Mobility Bond funds, per the project’s website. Needed improvements From 2019-2023 on the section of Cameron Road and Dessau Road undergoing improvements, there were: 2,400 crashes 12 individuals killed 77 seriously injured who suered minor injuries 397

CHILDRESS DR.

DESSAU RD.

183

New trac signal

Major intersection safety project

CAMERON RD.

290

Major intersection safety project

SOURCE: AUSTIN TRANSPORTATION AND PUBLIC WORKS DEPARTMENT COMMUNITY IMPACT

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Display

BY BROOKE SJOBERG & CHLOE YOUNG

Stagnant state funding brings shortfalls for Central Texas ISDs

when it was raised to $6,160. Since this adjustment, Azaiez estimates costs have gone up about 20%. If the basic allotment were adjusted for inflation, it would be closer to $7,342 per student in 2024, per projections from Hays CISD using Texas Education Agency data. In June, when Round Rock ISD passed a $466 million balanced budget, it was one of few expected to do so in Central Texas, board President Amber Landrum said. The district identified $30 million in budget cuts to have its expenditures equal its revenues. Similarly, Bastrop ISD was able to pass a balanced $173.12 million budget in June after making cuts. About 43% of school districts in Texas are expecting to make budget cuts going into fiscal year 2024-25, per the Texas Association of School Business Officials.

With budget season wrapping up for many Central Texas school districts, officials are contending with higher operating costs amid stagnant funding. Administrators have shared they are experiencing heightened cost pressures this year compared to recent years due to increases in the cost of insurance, fuel and other goods vital to the operation of public schools. “You’ve probably heard the word ‘inflation’ many times,” Round Rock ISD Superintendent Hafedh Azaiez said to the board of trustees in a May 18 meeting. “I’m sure you feel it yourself as you go out to buy groceries or if you have to fix something in your house. Everything is costing more.” These rising costs come as the basic allotment— one of the primary kinds of state funding calculated using a district’s average daily attendance—has not been increased since 2019,

Flat funding The basic allotment is state funding to public and charter schools based on attendance.

Actual basic allotment

Basic allotment if adjusted for inflation

$8K

$7K

$6K

2019-20 2021-22 2023-24 2025-26*

*PROJECTED

SOURCES: HAYS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT, TEXAS EDUCATION AGENCY/COMMUNITY IMPACT

Stay tuned

What are the options?

Throughout the budget planning process, area school administrators shared different strategies for reducing their planned expenditures, such as eliminating unfilled positions, increasing class sizes and reducing departmental budgets. In several cases, such as in GISD, staffing was decreased by eliminating unfilled positions and reassigning staff as needed, Superintendent Devin Padavil said. Along with cutting vacant positions, Lake Travis ISD passed its lowest compensation increase in over a decade at 1% for FY 2024-25. Liberty Hill ISD—which is projecting its largest budget shortfall in recent years at $8.5 million—may ask voters to approve a tax rate increase through a voter-approval tax rate election, or VATRE. If approved by voters, this will allow the district to have a higher tax rate than otherwise allowed by the state, per the TEA. If a VATRE is not called for November, the district’s fund balance is projected to be completely depleted by 2026, according to district information. Despite cutting costs, many districts are expected to adopt some of their largest shortfalls in recent years. North East ISD in San Antonio; San Marcos and Hays CISDs; and Austin, Dripping Springs, Eanes, Georgetown, Hutto and Leander ISDs have passed shortfall budgets or are planning to pass budgets with shortfalls.

Looking ahead to January and the start of the next legislative session, many districts have established school funding as their top priority. Member districts have asked the Texas Association of School Boards to advocate on their behalf, in addition to communicating with community members about advocating for increased state funding. This comes as Texas lawmakers have attempted to tie increases in basic allotment funding to the approval of an educational savings account program that would have provided public funds to families who choose to enroll their children in private schools. In legislative sessions held in 2023, a measure including a $540 increase to the basic allotment failed after legislators stripped House Bill 1 of a provision including educational savings accounts. Going into the next legislative session, interim charges released in May by Texas House Speaker Dade Phelan— or the directives of what house committees should study—did not include increases to the basic allotment.

Regional shortfalls

Austin ISD $41.25M*

Bastrop ISD $0

Dripping Springs ISD

$2.77M

$1.2M

Eanes ISD

Georgetown ISD

$4.59M

$3.5M

Hutto ISD

Lake Travis ISD

$3.98M**

$13.09M

Leander ISD

Liberty Hill ISD

$8.57M**

Pflugerville ISD

$6.9M**

Round Rock ISD

*ASSUMES A VATRE PASSES IN NOVEMBER; THE SHORTFALL WOULD BE $78.2 MILLION WITHOUT A SUCCESSFUL VATRE **THESE BUDGETS HAVE NOT YET BEEN PASSED

NORTH - NORTHWEST AUSTIN EDITION

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Real estate

BY HALEY MCLEOD

Home Edition

2024

Readers, welcome to your annual CI Home Edition! This guide features news ranging from key real estate trends and new developments unique to your neighborhood to an overview of the housing industry across Texas. All of the stories were written by our team of local journalists, and all of the advertisements are from nearby businesses who support our mission to provide free, useful news—show them your gratitude by supporting local businesses. The lead story in North-Northwest Austin’s Annual Home Edition on Page 22 addresses the HOME initiative, a multi-phase proposal originally brought forth by Austin City Council member Leslie Pool of District 7. “HOME” is City Council’s plan to address affordability by updating Austin’s land development code to allow denser and more varied housing. Top of mind for local Realtors is a recent settlement with the National Association of Realtors, which alters the way compensation is presented for agents. Read more about how this might impact home prices and the selling process on Page 18. Another top story on Page 19 addresses the phenomenon of “concrete cancer” in pools. We are proud of our reporting on this ongoing situation, as it is devastating homeowners and businesses alike. We hope you find the coverage useful.

What's inside

More qualify for affordable housing as threshold rises (Page 17)

Taylor Caranfa Stover General Manager tstover@ communityimpact.com

Central Texas Pool owners sue over costly construction error (Page 19)

BBQ Outfitters offers grilling supplies, installation in Austin area (Page 24)

Central Texas home valuations decline as market slows Homeowners are able to challenge their appraisal valuations annually by filing a protest with their county’s appraisal district, the deadline for which was May 15. Central Texas appraised home values Travis County

This year’s release of appraisal valuations from the Travis Central Appraisal District indicated the overall average appraisal values for residential properties are lower than in recent years. The overview “Values have definitely come down,” Chief Appraiser Alvin Lankford of the Williamson County Central Appraisal District said during an update to commissioners on June 4. “Mainly, [it’s] because the increase in interest rates slowed the market down, but also because builders aren’t constructing as many homes as prior years.” According to a news release from the Travis Central Appraisal District, the median market value for residential properties in Travis County in 2024 is $551,419, representing a 12.8% decline since 2022. The median value of residential homes in Williamson County for 2024 is $412,310, a small drop from the $414,869 seen in 2023, but a 12.9% drop from $473,325 in 2022. Market values don’t directly result in a change in property tax bills, the release said. Instead, these values help decide a property owner’s portion of the total tax levy. The total tax amount is based on the budgets set by local governments, such as cities, counties and school districts.

Williamson County

A total of 186,206 individual protests were filed in Travis County and over 82,300 were filed in Williamson County. Each appraisal district reviews filings and evidence submitted, typically issuing a settlement. If a settlement is not accepted, a formal hearing will be scheduled. While sales and property values have stabilized since 2022, residents can expect to continue to see an annual increase of 10% to their property’s tax value, Lankford said, explaining that the increase will continue until the market value and the taxable value align, per state tax code. As of 2024, the total market value for Travis County is roughly $488 billion, an increase of 5.8% year over year. What else? Clare Knapp, local housing economist with the Austin Board of Realtors, also predicts interest rates will remain flat for the rest of the year. “I don’t think that we’re going to see any significant movements in rates, especially over

$750K

$551,419

$632,208

$625K

$500K

$375K

$250K

$473,325

$412,310

$125K

SOURCES: TRAVIS CENTRAL APPRAISAL DISTRICT, WILLIAMSON CENTRAL APPRAISAL DISTRICT/COMMUNITY IMPACT

this year or even moving into 2025. ... If you’re a first-time buyer waiting on the sidelines now, well, you’re missing out on building wealth, too,” Knapp said.

NORTH - NORTHWEST AUSTIN EDITION

Real estate

BY BEN THOMPSON

BY HANNAH NORTON

Texas’ first statewide flood plan shows 5 million people at risk

As a sign of ongoing economic change, median earnings in Central Texas increased in 2024, which affects who can access affordable housing. The big picture Median family income, or MFI, is calculated by the U.S. Department of Housing and Urban Develop- ment as a key metric for federal housing assistance. Locally, organizations use MFI to determine who can rent or sell affordable housing units. HUD defines 80% of an area’s MFI as low-income. The Austin-Round Rock metro area’s MFI for a family of four is $126,000 this year. That’s just over a 3% increase from 2023, following double-digit increases in the previous two years. More qualify for affordable housing as threshold rises

Income increasing The Austin-Round Rock metro area’s median family income increased again in 2024 following double-digit jumps the past two years. The MFI is based on a family of four and scales based on household size.

Median family income (4-person household)

Low-income limit/80% MFI (4-person household)

Over 5 million Texans live or work in areas vulnerable to flooding, according to a draft of the state’s first flood plan. State lawmakers tasked the Texas Water Devel- opment Board with creating the plan in 2019, in the aftermath of Hurricane Harvey. The 267-page draft, published in early May, recommends over $54.5 billion in funding from various sources to reduce flood risks. The board discussed the plan during a May 30 public hearing in Austin. Board members are expected to adopt a final flood plan in August and submit it to the Legislature by Sept. 1. The details The plan includes findings from 15 regional flood planning groups, which have been working since October 2020, and makes several recom- mendations for state and local flood policies. “Although flooding has certain benefits, like recharging groundwater and providing vital

nutrients to ecosystems and agricultural lands, it remains a significant threat to the health and safety of Texans,” the plan reads. “Each of the state’s 254 counties has experienced at least one federally declared flood disaster, proof that floods can affect all areas of Texas.” The plan noted roughly 70% of flood-related deaths occur on roadways, particularly during the night and at low-water crossings. The planning groups identified nearly 64,000 miles of roads in areas susceptible to flooding. The board asked the Texas Legislature to expand early warning systems for floods, create minimum building and infrastructure standards to reduce fatalities and property damage, improve low-water crossing safety, and enhance dam and levee safety programs. “We want to put out a state flood plan that does what it is tasked to do, and that is to save lives and save property,” board Chair Brooke Paup said.

$140K $120K $100K $0 $60K $80K

+64.06% increase

Flood risks Around one in six Texans live or work in flood-prone areas, the Texas Water Development Board found. Over one-fourth of Texas’ land area is vulnerable to flooding.

+59.18% increase

5.22M people

1.66M buildings

2015 2016 2017 2018 2019 2020 2021

2022 2023 2024

63,900 miles of roads

NOTE: THE AUSTIN-ROUND ROCK METROPOLITAN STATISTICAL AREA INCLUDES BASTROP, CALDWELL, HAYS, TRAVIS AND WILLIAMSON COUNTIES.

1.29M homes

SOURCE: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT/COMMUNITY IMPACT

With a rising MFI, many people may not realize they fall under a low-income housing bracket and can qualify for housing with capped rents. “Whenever ... I ask people, ‘What do you think the median income is for a family of four?’ People are shocked by how high it is,” Foundation Com- munities Executive Director Walter Moreau said.

Current situation The area’s rising MFI is likely skewed by higher earners in some fields, rather than representing widespread wage growth, experts said. The increase also means there’s now a larger pool of potential residents in affordable housing provided by groups like Foundation Communities.

12.65M acres of agricultural land

6,258 hospitals, EMS departments, fire stations, police stations and schools

SOURCE: TEXAS WATER DEVELOPMENT BOARD/COMMUNITY IMPACT

HYMEADOW 12611 Hymeadow (512) 506-8401

NORTH 620 10601 N FM 620 (512) 506-8316

ARBORETUM 10515 North Mopac Expressway (512) 342-6893

Real estate

BY BRITTANY ANDERSON

The Austin Board of Realtors is set to implement policy changes to its Multiple Listing Service—an online portal where Realtors share information about homes for sale in the market—on Aug. 13. The changes come following a $418 million National Association of Realtors settlement that could transform the way homes are bought and sold, and even end up leading to lower home prices, local Realtors have said. Austin-area Realtor April Womack said the settlement will bring new rules to how buyer agent and seller agent commissions work. Commissions are usually split between buyer and seller agents and paid for by the seller. Averaging 6%, some homeowners are unaware of this fee as it’s baked into the home cost, Womack said. NAR said this percentage has always been negotiable, but the new rules require its disclosure. Home buying, selling rules shift

Breaking it down

Womack and Austin-based Realtor Emily Ross said the changes will be hardest on the buyer side, specifically first-time homebuyers. While sale prices likely won’t be affected much in the beginning, Ross expects that by the end of next summer Realtors will have a better grasp on the settlement’s long-term effects. In time, sales prices could come down if sellers don’t pay the buyer agent commission and it falls on the buyer instead, Ross said. “Adding 3% to a buyer, in a lot of cases, is going to be a big deal for them, and there’s no way they’re going to be able to afford the home if the sales price doesn’t go down by 3% too,” Ross said.

2024 settlement timeline The settlement agreement from the NAR requires the MLS practice changes to be implemented by this fall. March 15 Settlement agreement signed April 24 Preliminary approval of settlement review granted by court Aug. 17 Practice changes take effect,

earliest day for class action lawsuit notifications to be issued to those impacted

Nov. 26

Final approval hearing for settlement

SOURCE: NATIONAL ASSOCIATION OF REALTORS/COMMUNITY IMPACT

Major takeaways

Chenevert added there will be nuance in the way each market with an MLS uses NAR’s policy changes, so buyers and sellers could have a different experience should they choose to buy or sell outside of ABoR’s MLS.

When negotiating commissions, Womack recommended buyers go for an agent who: • Has experience and knowledge of the area • Can “think out of the box” for packaging commission and other buyer fees Buyers and sellers should also keep a few things in mind once the changes take effect, ABoR CEO Emily Chenevert said. Agents are likely to have their sellers sign an additional amendment that has the new required disclosures if they do not sell their home before Aug. 13, and buyers should expect that agents won’t show them a property without a written agreement in place.

Major upcoming changes to the MLS

Compensation disclosures to sellers, and prospective sellers and buyers, are now required. Seller agents can no longer make compensation offers to buyer agents on the MLS. ABoR will show financial contributions made toward the buyer’s expenses in a “seller contributions” field. A written agreement outlining agent pay and services between a buyer and agent is now required before home tours.

“The seller contributions field that we’re adding ... [allows] for that kind of marketing incentive box that doesn’t exist in every MLS.”

EMILY CHENEVERT, AUSTIN BOARD OF REALTORS CEO

SOURCES: AUSTIN BOARD OF REALTORS, NATIONAL ASSOCIATION OF REALTORS/ COMMUNITY IMPACT

COMMUNITYIMPACT.COM

Real estate

BY KAMERYN GRIESSER

A defect in concrete mixtures that causes the shell of a pool to weaken and crack has resulted in hundreds of lawsuits piling up as pool owners seek legal recourse against builders in Travis and Williamson counties. The defect, known as concrete cancer or alkali silica reaction (ASR), is primarily found in Austin-area pools built between 2017 and 2023. “The multimillion-dollar question at the heart of ongoing litigation is who is responsible; where in the supply chain did something go wrong?” attorney Michael Lovins said. Pool builders often subcontract shell construction out to “shotcrete” suppliers who mix the ingredients—sand, water and cement—and then spray the mix on-site, said Juan Armenta, a researcher with Texan Concrete Construction. “ASR is a chemical reaction between the concrete ingredients gone wrong,” Armenta said. “It’s nothing new, and it’s not just pools. It’s aecting sidewalks, driveways, patios, foundations, but it’s accelerated because of the warm water in pools touching the concrete 24/7,” he said. Pool owners sue over costly error

Warning signs of ASR

Cracks with white or brown gel oozing out

Pool tile separation

Lowering pool levels or leaks

Flaky concrete surface

SOURCES: JOHN FORD OF FRONT2BACK CUSTOM, JONATHAN BROWN OF CLEAR REFLECTION POOLS, PAX POOLSCOMMUNITY IMPACT

How we got here

The big picture

Average repair cost

John Ford, Front2Back Custom pool repair expert, said pool builders saw a boom in business during the pandemic. “After the big freeze back in 2021, people started noticing the cracks. ... Many mistook it for a cosmetic issue and just used temporary xes,” Ford said. These issues, however, were sometimes the result of ASR, which is not typically isolated to one area. This results in most pool repairs involving a complete rebuild of the concrete shell, which can cost nearly double the original price of construction, builders said. One theory surrounding the origin of ASR is that concrete mixtures received an insucient amount of y-ash—a material that strengthens concrete. Fly ash is created from burning coal, but due to recent Environmental Protection Agency measures, Texas production has dwindled, making the material harder to come by, Armenta said. While there are some visual signs of ASR, Ford said the only way to conrm the defect’s presence is drilling and testing core samples in a lab, which can cost $4,000-$8,000.

Pool builders and pool owners agree the problem was likely preventable. “Texas is the wild, wild west when it comes to pool building,” Ford said. “Anyone can become a pool builder in Texas; you don’t need a license.” Armenta, who serves on the board of the Central Texas Pool and Hot Tub Alliance, PHTA, explained that a lack of education about ASR within the pool industry and the state’s lax codes for pool concrete created the perfect storm at a time when demand for backyard recreation was at its highest. Easy Mix and Hot Crete are among the shotcrete companies involved in multiple lawsuits. Both did not respond to requests for comment as of press time. Lovins, who represents parties on both sides of the issue, said if the current multidistrict litigation against Easy Mix—the largest ASR-related lawsuit to date with over 200 parties—is successful, involved pool owners could be compensated for repair costs

Repair type

Cost

Epoxy membrane (short- term, waterproong)

$8,500-$10,500

Fiberglass replacement (long-term)

$15,000-$25,000

Complete reconstruction of in-ground concrete pool Full demolition + ground re ll

$60,000+ (depending on size)

$5,000-$20,000

SOURCES: FRONT2BACK CUSTOM, CODY POOLS, PAX POOLS COMMUNITY IMPACT

The National PHTA recommends homeowners with newly-built pools or plans to build a pool inquire with their builder about inspections and construction details.

NORTH NORTHWEST AUSTIN EDITION

Real estate

Home sales decreased in most North-Northwest Austin ZIP codes year over year in June, Austin Board of Realtors data shows. Residential market data

Homes sold

June 2023

June 2024

-15.8%

-26.92%

-35.29%

-19.05%

+3.57%

45 TOLL

78727

78729

78750

78758

78759

78729

620

MOPAC

183

Median home sales price

78727

78750

78759

June

2023

2024

78758

360

$538,441 $515,000 $540,000 $400,000 $700,000

$494,950 $490,000 $816,500 $344,000 $775,000

78727

2222

78729

78750

78758

MARKET DATA PROVIDED BY AUSTIN BOARD OF REALTORS AND UNLOCK MLS 512-454-7636 WWW.ABOR.COM

78759

Average days on market

North-Northwest Austin

June 2023

June 2024

-8.1%

-42%

+23.33%

+57.14%

June

2023

2024

257

198

New listings

108

Closed sales

78727

78729

78750

78758

78759

Homes under contract

111

Homes sold by price point in June

Months of inventory

3.3

3.8

78727

78729

78750

78758

78759

1 –

– 1

7 6

– –

9 9 6 4

$900,000+

Price per square foot

$700,000-$899,999

$319 $319

7 8

8 9

$500,000-$699,999

4 8

$300,000-$499,999

Active listings

393

504

–

<$299,999

‘HOME’ builds out From the cover

What’s happening?

620 HOME Phase 1 under way Many new projects under HOME Phase 1 are moving forward. Once both phases of HOME are in place, the city estimates that 154,000 lots covering more than 70 square miles would be eligible. Issued Pending

Allowances under HOME unlock new housing options in Austin’s single-family-zoned areas where less exible building rules used to apply. The new options are now being considered by Austin property owners with scores of projects proposed since February, when the rst phase went into e ect. The plan was generally aimed at increasing the density of housing on single-family plots, resulting in more housing like duplexes and accessory dwelling units, or ADUs. “[HOME is] making for a better product. It’s three-bed, two-bath-type houses that have a more comfortable feel for homeowners,” said developer Cody Carr of Carr Residential. Developer Gabe Joseph said HOME builds on the popularity of ADUs and smaller housing in costlier areas, a trend that can now scale out to more neighborhoods—although HOME will likely be most-used around Central Austin rather than farther out, where new additions would compete with larger homebuilders. “Inll creates character,” he said. “You need to have massive growth, but I think you have to keep some sort of a central core that people want to be a part of. And this is what that looks like.” Austin’s Development Services Department, or DSD, began accepting HOME Phase 1 applications on Feb. 5. More than 100 permit requests had been led as of mid-July. It remains to be seen how widely HOME will be used, and whether it will have the intended eect of curbing home prices and helping rst-time low- and middle-income buyers. City Council required regular reporting on HOME to publicly track projects and their impacts in Austin. The rst of those reviews is expected in August.

183

AS OF JULY 16

Pending projects

• In North Austin, a three-unit residential project would be built on an empty Pecan Drive lot. • A single-family home near North Lamar Boulevard in North Austin would become a duplex.

2222

360 TOLL

290

Austin

MOPAC

290

183

MAP NOT TO SCALE N

SOURCE: CITY OF AUSTINCOMMUNITY IMPACT

COMMUNITYIMPACT.COM

BY BEN THOMPSON

New housing types Both phases of the HOME initiative will bring dierent housing types and sizes to single-family neighborhoods.

Put in perspective

What else?

Dierent parts of town are likely to see varying impacts from HOME. For example, core neighbor- hoods and places near major roads or bus routes could see more of the new additions that will take advantage of new housing caps. “I think you’ll primarily see HOME [Phase] 1 three-unit projects in more walkable urban settings where it naturally is calling for density because you have transit nearby, stores nearby, people want to live there, live near the parks and near the water,” Carr said. “[New housing will] look very similar; just in instances where there are larger lots, you might have an additional unit where you otherwise wouldn’t. But I don’t think it’s as dramatic of a change as maybe people had originally believed.” DSD sta say HOME hasn’t altered their oversight work so far with permit turnaround times still last- ing about two weeks. They also advised residents or homebuilders to schedule meetings with the city before moving a HOME project forward.

One item of interest for many residents was whether new HOME projects would ood the market with even more unregu- lated short-term rentals, or STRs, like Airbnb and Vrbo. For multi-unit homes created under Phase 1 allowances, one of those units can serve as an STR for 30 days a year. For housing cre- ated under Phase 2’s lower lot sizes, all STRs are banned—until April, or an STR overhaul ocials are planning for later this year. Another concern was HOME’s impact on private legal agreements, like deed restric- tions that can limit properties to single-fam- ily builds. Those trump Austin policies like HOME—although any violations must be enforced privately, rather than by the city. To make HOME usable for more residents, new city support like down payment assis- tance, lower building fees and low-interest loans will be considered by the fall.

New lots 2,000 sq.ft.

Existing Lot 6,000 sq.ft.

Permitted HOME 1

Permitted HOME 2

Existing home

What’s next

and unaordability. The Planning Department is working on that proposal on an undetermined timeline. “Sta is currently studying the feasibility, merits and risks of an equity overlay by reviewing community proposals, previous city proposals, and peer cities,” said spokesperson Caleb Pritchard.

The city is now preparing for the Phase 2 lot size reform. The city will accept such projects starting mid-August, and DSD spokesperson Stephanie Sanchez said sta training and other work is underway to “ensure a smooth implementation.” City ocials also mandated the study of an “equity overlay” that could limit HOME’s impact in places found to be hit hardest by gentrication

HOME Phase 2 goes into eect Aug. 16, but will be delayed until November for much of the city. For more information, visit communityimpact.com

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