Staff Report - HAPI code amendmentsCITY OF FEDERAL WAY
MEMORANDUM
DATE:
March 13, 2023
TO:
Land Use & Transportation Committee
VIA:
Jim Ferrell, Mayor
FROM:
Keith Niven, CD Director
SUBJECT:
HAPI code amendments
Financial Impacts:
There are no costs to the City for adopting the proposed code amendments.
Background Information:
In late 2022, Heartland, LLC was hired by the City to evaluate existing codes and policies that might be limiting housing production within the City. Heartland presented to the Planning
Commission in January and to the Land Use & Transportation Committee in February of 2023. Based on their existing conditions evaluation and gap analysis, Heartland recommended 9 actions
to address issues they found. These recommendations included:
1. Expand the Multi Family Tax Exemption (FWRC 3.30.030) to the Community Business (BC) zone;
2. Reduce the amount of ground floor non-residential space that is required;
3. Increase building height within 100 feet of single family for the BC zone;
4. Reduce the parking requirement for the BC zone;
5. Make consistent the open space requirement and allow for a fee in lieu of option;
6. Allow stormwater to be placed in vaults within the BC zone;
7. Provide predictability for school impact fees;
8. Remove the City’s inclusionary requirement; and,
9. Remove the restrictions on building form.
Staff Response
Proposed under separate Ordinance (Title 3).
Proposed revisions are included.
Not supported at this time. Study this further as part of the update to the City’s Housing Chapter of the Comprehensive Plan (2024).
Not supported. The code currently allows for a parking reduction with a technical analysis. No added revisions are warranted.
No revisions are proposed at this time. Staff are reviewing open space requirements as part of a stand-alone code amendment (2023).
Supported – not a code revision, but a revision to PW development standards.
Proposed revisions are included.
Not supported.
Proposed revisions are included.
Procedural Summary:
2/17/23: Issuance of Determination of Nonsignificance (DNS) pursuant to the State Environmental
Policy Act (SEPA)
2/17/23: Public Notice of SEPA Decision published in Federal Way Mirror and posted (website)
3/3/23: End of SEPA Comment Period
3/24/23: End of SEPA Appeal Period
3/15/23: Planning Commission Public Hearing
4/3/23: LUTC Council Committee (anticipated date)
4/21/23: City Council 1st Reading (anticipated date)
5/2/23: City Council 2nd Reading (anticipated date)
Planning Commission Recommendation:
The Planning Commission conducted a Public Hearing on March 15, 2023. There were no public comments regarding these proposed code amendments. Following Commission discussion and deliberations,
consistent with 19.80.240(1)(c), the Planning Commission forwarded the proposed code amendments to the City Council with a recommendation for approval incorporating additional clarifications
on the proposed revisions relating to ground floor non-residential requirements and school impact fees relating to increasing predictability to the school district while preserving
City Center incentives.
Decision Criteria:
FWRC Chapter 19.80.130 provides criteria for zoning text amendment. The following section analyzes compliance of the proposed zoning text amendment with the criteria provided by this
chapter. The City may amend the text of the FWRC only if it finds that:
1. The proposed amendment is consistent with the applicable provisions of the comprehensive
plan;
Staff Response: The proposed FWRC text amendment is consistent with the following Federal Way Comprehensive Plan (FWCP) policies:
LUP 29 Ensure compatibility between non-residential developments and residential zones by regulating height, scale, setbacks, and buffers.
HP2 Amend development regulations to accommodate a diverse range of housing forms that are compatible with neighborhood character and create an effective transition between the City
Center, business areas, and residential neighborhoods.
HP8 Consider the economic impact of all development regulations on the cost of housing.
HG3 Develop a zoning code that provides flexibility to produce innovative housing solutions, does not burden the cost of housing development and maintenance, and diversifies the range
of housing types available in the City.
HG4 Proactively plan for and respond to trends in housing demand.
HP14 Review zoning, subdivision, and development regulations to ensure that they further housing policies, facilitate infill development and don’t create unintended barriers.
2. The proposed amendment bears a substantial relationship to public health, safety, or welfare; and
Staff Response: The proposed code amendments are intended to result in the construction of more housing units in the City. Prior to drafting the proposed amendments, the City hired
a consultant (Heartland, LLC) to evaluate existing policies and code language. In addition, the consultant reached out to developers and property owners prior to developing recommendations
for the City’s consideration. The proposed amendments have considered the recommendations from the consultant and are believed to result in the increased production of housing thereby
adding to the public health, safety, and welfare of the community.
3. The proposed amendment is in the best interest of the residents of the city.
Staff Response: The proposed FWRC text amendments remove many of the barriers to the production of housing in the BC, CC-F, and CC-C zones identified by the City’s consultant (Heartland,
LLC). By updating the City code to be more in-step with current market factors, the City should see more housing built within its jurisdiction. This added production is in the best
interest of the residents of the City as there is currently a housing shortage both in the City and the region. As stated in the HAP:
“Housing availability is an urgent and growing challenge in Federal Way. Two out of every five households are struggling to manage the cost of housing. The lack of supply and resulting
cost pressure is contributing to the displacement of long-term Federal Way residents, a process that can uproot lives and undermine the social fabric and support structure for many
residents.” (HAP, pg i)