Politics
City Council Approves 1,200 New Housing Units Downtown by 2028
The July 8 vote rezones three blocks for taller buildings and projects 1,200 new rental units by 2028, directly expanding options for Downtown Core households paying above-average rents.
How we reported this
The Downtown Core City Council passed the Housing Density Bonus Program by a 7-2 vote on July 8, 2026. The measure applies to the Main Street corridor between 4th and 7th Avenues and permits buildings up to 12 stories where current limits cap heights at eight stories.
Zoning Changes and Immediate Effects
The Downtown Core Planning Department will begin accepting applications under the program on August 1. Developers must reserve 20 percent of units for households earning up to 80 percent of area median income to receive the height allowance, according to the ordinance text approved last week.
Residents living near the corridor will see construction activity increase within six months. The program targets parcels already served by existing water and sewer lines, so new projects avoid the need for major utility extensions in the 2026-2027 capital budget.
Budget Figures and Service Adjustments
The 2026 Housing Needs Assessment prepared by the city estimates the added units will increase the core housing stock by 15 percent. The same document projects that property tax collections from the new buildings will reach $4.8 million annually once fully occupied, offsetting costs for expanded fire and police coverage in the rezoned blocks.
Local advocates note that the density bonus does not alter current parking requirements, which remain at one space per unit. The legislation states that any future reduction in those standards would require a separate council vote.
The Planning Department will issue its first progress report on approved projects by January 2027. Council members directed staff to track average rents in the affected area and report those figures alongside building permit data.