Commission backs expanding On‑Site Water Reuse incentives for deeply affordable housing; staff to report quarterly

After a staff briefing on Austin Water’s Go Purple program, the Resource Management Commission voted to recommend approval of amendments to expand incentives and caps that help deeply affordable housing projects incorporate on-site reclaimed-water systems and dual plumbing.

Catherine (Reclaimed and On-site Water Reuse Program supervisor) described the program’s origins: council adopted the original Go Purple code and incentive package in March 2024 as part of the Water Forward long-range supply plan. The ordinance included code requirements for reuse and an exemption for deeply affordable housing projects (those with at least 50% income-restricted units at specified AMI thresholds). The council also directed staff to study fully subsidizing reuse in exempt affordable projects.

Staff presented cost estimates showing a maximum potential incremental cost of about $1,500,000 for a mid-rise dual-plumbed on-site reuse installation; costs could be “as low as a few hundred thousand dollars” if reclaimed main access exists. Current incentives include an on-site reuse incentive with a $500,000 cap (proposed to be raised to $1,500,000 for exempt affordable housing) and a reclaimed main extension cost-share that covers up to $500,000. Staff said the fiscal-year budget currently reserves $4,000,000 per year for these incentives and that council revenue from the community benefit charge raises roughly $10,000,000 annually (staff said about $6,000,000 is targeted for reclaimed infrastructure expansion and $4,000,000 for incentives).

Commissioners pressed staff on program measurement and timeline. Commissioner Robbins and others called the program a market-transformation pilot and urged strong public reporting; staff said quarterly reporting will begin next month and the item is reauthorized annually in the budget process, providing an opportunity to reassess. Commissioner Robbins suggested a sunset or limiting the incentives to affordable housing only; several commissioners noted that unspent incentive funds are slated to be used to expand the reclaimed-water ("purple pipe") network.

Two on-site water reuse incentives were reported as approved in the prior year — one for $500,000 and one for $250,000. Staff and commissioners agreed to monitor program uptake and budget impacts as applications increase. Commissioner Silverstein moved the recommendation; Commissioner Gurland seconded. The commission approved the recommendation 7–2 (Commissioners Gary and Saceridis opposed).

Staff will report program activity in a quarterly water-management strategies report and continue to monitor budget needs as the program grows.