FWCP Chap 05 Housing_201302271050543111CHAPTER FIVE - HOUSING
5.0 INTRODUCTION
This Federal Way Comprehensive Plan (FWCP) Housing chapter, together with the Land
Use chapter, is perhaps the most personal components of the comprehensive plan. Their
policies affect the immediate environment in which residents live and raise their families.
The primary goal of the Housing chapter is to create high quality neighborhoods that
meet Federal Way's current and future housing needs for all economic groups and
household types. It does this by preserving existing neighborhood character while also
encouraging the development of a wide range of housing types. The Land Use chapter
determines the location and densities of that new housing.
The availability of diverse housing choices and affordable housing for all income groups
is essential to a stable, healthy, and thriving community. Most housing is not built by
cities, but by the private sector. However, cities and other entities, such as lending
institutions, do impact the supply and affordability of housing. This chapter focuses on
the housing supply and affordability factors that the City can either control or influence.
5.1 Requirements of the Growth Management Act (GMA)
Washington State Growth Management Act
The GMA requires cities to, "...encourage the availability of affordable housing to all
economic segments of the population and to promote a variety of residential densities and
housing types." It also encourages "preservation of existing housing stock." The GMA
discourages conversion of undeveloped land, "...into sprawling, low -density
developments" (RCW 36.70A.020, 1990 Supp.).
The GMA requires that the Housing chapter include:
• An inventory and analysis of existing and projected housing needs.
A statement of goals and policies for housing preservation, improvement, and
development.
• Identification of sufficient land area for the number of needed housing units,
including government assisted housing, housing for low income families,
mobile/manufactured housing, multiple family housing, and special needs
housing. This defines the amount of land that the City must designate for housing
in the Land Use chapter.
FWCC — Chapter Five, Housing
A strategy and policy for meeting the housing needs of all economic segments of
the community.
• Encouragement for innovative land use management techniques to enhance
affordable housing opportunities, including density bonuses, cluster housing,
planned unit developments, and transfer of development rights.
Countywide Policies
The Countywide Planning Policies (CWPPs), required by GMA, both confirm and
supplement the GMA. The CWPPs for affordable housing promote a "rational and
equitable" distribution of affordable housing. They require that jurisdictions do the
following regarding housing:
• Provide for a diversity of housing types to meet a variety of needs and plan for
housing opportunities for all economic segments of the population.
• Consider the need for proximity to lower wage employment, access to
transportation and human services, and the adequacy of infrastructure to support
housing development when planning for housing affordable to low and
moderate -income households.
• Develop strategies to preserve existing low-income housing and provide
relocation assistance to households that may be displaced due to public action,
where feasible.
• Evaluate existing subsidized and low cost housing resources and identify such
housing that may be lost due to redevelopment, deteriorating housing conditions,
public policies or actions.
• Participate in cooperative, countywide efforts to address current low income
housing needs.
The policies also establish numerical housing targets that each city should accommodate
as well as specific targets for housing affordable to households earning less than 80
percent of the county's median family income. The numerical housing target for Federal
Way is discussed in the Future Housing Growth section of this chapter. The overall
targets for low and moderate -income housing are described below.
• Seventeen percent of new housing units should be affordable to households
between 50 and 80 percent of median income.
• Twenty percent of new housing units should be affordable to households below
50 percent of median income. (Jurisdictions that had relatively less existing
affordable housing were required to have 24 percent of new housing be
affordable to this income group.)
Revised 2005 V-2
FWCC — Chapter Five, Housing
The CWPPs also suggest local actions to encourage development of affordable housing.
These may include, but are not limited to, providing sufficient land zoned for higher
housing densities, revision of development standards and permitting procedures,
reviewing codes for redundancies and inconsistencies, and providing opportunities for a
range of housing types.
5.2 FEDERAL WAY AND ITS HOUSING
Federal Way, like most communities, has residents with a range of incomes, ages, and
household types. The size and type of housing needed by Federal Way residents have
been changing due to a number of factors, such as the influx of new immigrants, the
increasing number of people living alone, the rising number of single -parent households,
and increasing life span. Federal Way's housing opportunities must accommodate all of
the various types and cost of housing needed by its residents.
Household and Population Trends
Federal Way's population growth has slowed down since the 1980s when its population
doubled. According to the Census, from 1990 to 2000 Federal Way has grown
approximately 23 percent. This is greater than King County's growth rate of 15 percent,
but less than some of its neighboring cities.
Population by Age
The age of a city's population is an important indicator of housing need. Different types
of housing are needed at various stages of people's lives. Federal Way's citizens are
relatively young. Over half of its population is under 35 years of age; almost one-third of
this group is under 18 years of age. This statistic reflects a City with many young families
and individuals, many of whom may need rental housing as well as first-time homeowner
opportunities. It is the residents between the ages of 25 and 35 that represent the majority
of potential first-time homeowners. Federal Way must provide entry-level homes for this
existing and future population if they are to remain in the community. Typically, first
time homebuyer opportunities are in the form of smaller single-family homes,
townhouses, and condominiums.
Smaller sized ownership units and rental housing are needed not only by this younger
population, but by seniors as well. Seniors often desire smaller and more affordable
housing, both ownership and rental, in order to minimize or eliminate yard work/
housework and to expend less of their fixed incomes for housing. Of course, these types
of housing are also ideal for the growing number of single person households, as well as
for many of the rising number of single parent headed household, regardless of age.
Revised 2005 V-3
FWCC - Chapter Five, Housing
Seniors make up only eight percent of Federal Way residents, less than King County's
percentage of ten. However, countywide, both the number of elderly and its proportion of
the senior population is expected to increase by 2010 and increase more dramatically by
2025 as the baby boomer generation ages.
25,000
m
0 20,000
a)
a 15,000
0
10,000
E 5,000
z
Figure V-1
Federal Way's Population by Age
5 and 6-17 18-24 25-35 36-54 55-64 65-74 75-84 85
under and
older
Age
Source: 2000 Census
Household Income
Understanding the distribution of Federal Way's household income is also critical in
planning for its future housing needs. A household's income dictates its housing
decisions and opportunities. The King County Benchmark Program defines income
groups as follows:
Very Low Income:
0 - 30% of county median income
Low Income:
31-50% of county median income
Moderate Income:
51-80% of county median income
Middle Income:
81-120% of county median income
Upper Income:
120% or more -of county median income
According to the 2000 Census, Federal Way's median household income was $49,278,
which is less than King County's median of $53,157, but more than the South King
County cities" median income of $45,850. Federal Way's income groups are distributed
in approximately a 60:40 split, with 60 percent of residents with middle and greater
incomes and 40 percent with moderate and lesser incomes.
1 The South King County cities used in this comparison are Auburn, Burien, Des Moines, Kent, Federal Way,
Normandy Park, Renton, SeaTac, and Tukwila.
Revised 2005 V4
FWCC — Chapter Five, Housing
Figure V-2
Households By Income Level
Very Low
Middle and Upper 11 % Low
58% 12%
Moderate
19%
Source: 2000 Census
Household Size
Federal Way has the largest average household size in South King County at 2.63. It is
well above the King County average of 2.39 per household. However, as for most cities,
Federal Way consists predominately of one and two person households, as the figure
below shows. Three reasons for Federal Way's relatively large average household size is
its large percentage (67.6 percent) of families, its relatively high number of immigrants
(who tend to have large families), and the overcrowding of its housing due to
affordability and availability issues.
Figure V- 3
Distribution of Households by Size in Federal Way, 2000
4 People
15%
3 People
17%
5+ People
Source: 2000 Census
' Person
25%
2 People
32%
Overcrowding
According to the 2000 Census, almost eight percent of Federal Way's housing is
overcrowded. Overcrowding, defined by HUD as having more than one person per room
in a housing unit, is more of a problem in Federal Way than in King County or on
average in South King County, although the South King County cities of Kent, SeaTac,
Revised 2005 V-5
FWCC — Chapter Five, Housing
and Tukwila have a worse problem with overcrowding. Overcrowding typically results
when households have to "double up" in order to afford the cost of housing, or from large
families not being able to find an appropriately sized unit.
Special Needs Populations
There are many people in Federal Way who need housing that is directly linked to
supportive services and/or is designed to accommodate physical disabilities. The private
market, for the most part, does not meet the housing and service needs of these groups,
especially if they are low-income. However, the need is independent of a person's
income; it is experienced due to a crisis or disabling condition. Although most who are
disabled on a permanent basis, due to the limitations of their disability, usually become
very low-income.
Special needs populations and their needs are diverse. Some groups require special needs
housing for a limited time and others on a permanent basis. Two examples of housing
needed on a permanent basis are group homes by some developmentally disabled adults
and apartments with supportive services for the chronically mentally ill. The type of
housing that is needed on a temporary basis includes confidential shelters and transitional
housing for victims of domestic violence, supportive housing for pregnant teens, and
emergency shelters and transitional housing for the homeless.
Special needs populations require two major ingredients to ensure a stable housing
situation: very low cost housing and supportive services. The type and number of
supportive services required varies by population and by individuals within each
population. Jurisdictions can help encourage an adequate supply of special needs housing
by ensuring that its codes and regulations are not barriers to the provision of special
needs housing throughout the City.
Employment
Federal Way is more a source for workers than a place to work, according to the Puget
Sound Regional Council's (PSRC) Location of Jobs and People in Central Puget Sound,
1999. There are 30,012 jobs in Federal Way, according to another PSRC study, Covered
Employment Estimates for 2002. This is not enough to employ Federal Way's
approximately 60,000 potential workers aged 18 or older. This low ratio of people to jobs
is why Federal Way is considered a bedroom community. Approximately 70 percent of
those 30,012 jobs were in the retail and service sector. Jobs in government and education
accounted for the next highest percentage with almost 13 percent.
Federal Way's proportion of retail jobs is twice the regional average. Jobs in retail sales
and service employment typically pay low wages and as a result, these workers have
difficulty finding housing they can afford despite working full time jobs. Accordingly,
there may be an imbalance between jobs available in Federal Way and the earnings
needed to afford local housing. Ironically, this may result in employees working in the
City commuting from other communities where cheaper housing is available and higher
wage earners who live in Federal Way commuting to other cities for higher paying jobs.
Revised 2005 V-6
FWCC — Chapter Five, Housing
Housing Stock and its Condition
According to the April 1, 2004, Washington State Office of Financial Management
(OFM) estimates there are 33,249 housing units in Federal Way. Of this total, 18,377 are
single family, 13,635 are multi -family, 1,219 are mobile homes or trailers, and 18 are
special housing. The majority of Federal Way's housing is fairly homogenous. The
housing primarily consists of single-family detached units, constructed in the sixties and
eighties. According to the 2000 Census, almost 11 percent of those single-family homes
are rentals, a lower percentage than the county's approximately 13 percent. There are
some mobile home parks and a few duplexes located in the City. The rest of the housing
stock tends to be two and three story apartment buildings. Although, the number of
structures with 20 or more units has been increasing as a proportion of all housing in the
last several years. (The composition of this housing is illustrated in the figure below.)
Federal Way's housing provides only a narrow range of choices and does not fully reflect
the range of housing options that could be built.
Figure V-4
Federal Way's Housing Stock
Mobile Homes
4%
Multifamily
41%
Single Family
55%
Source: Washington State Office of Financial Management, April 2004
This lack of housing choice creates a situation where an increasing number of families
find it difficult to obtain suitable housing in the community. It affects empty nesters and
couples that have raised their families and who for life-style reasons, no longer need or
want a large single-family house and the associated maintenance. Young adults, students,
young married couples, and low-income workers would like to live in the community
where they grew up or currently work, but often cannot find a house that fits their
housing needs or cannot afford the available housing.
Subsidized Housing
Included in Federal Way's 33,249 housing units, is a limited amount of subsidized
housing. In 2004, there were 443 King County Housing Authority (KCHA) Public
Housing units and approximately 800 subsidized units owned by private non-profit
agencies and reserved mostly for the elderly, physically disabled, or those with other
special housing needs. In addition, as of February 2004, 1,141 households were renting in
Revised 2005 V-7
FWCC — Chapter Five, Housing
Federal Way using KCHA Section 8 vouchers. A household with a Section 8 voucher can
live anywhere in the county. The tenant pays 30 to 40 percent of their income toward the
rent and HUD pays the remainder —up to a certain limit. Tenants are encouraged to pay
no more than 30 percent of their income, but are permitted to pay up to 40 percent if
necessary to obtain suitable housing.
The demand for both subsidized housing and vouchers far out strips supply. For example,
in February 2003, 364 Federal Way residents were on the waiting list for public housing;
households are typically on the waiting list for 1 %2 to 2 years. In addition, 420 Federal
Way residents were on the waiting list for Section 8 vouchers- however, the Section 8
waiting list is closed to new households and it is not expected to open for the foreseeable
future.
Housing Condition
For the most part, the housing stock in Federal Way is in good condition. The City has
very little concentration of substandard housing, which is typically found in older urban
areas. However, houses in poor condition do exist in isolated cases around the City and in
small pockets.
The King County Assessor's Office provides information related to housing construction
quality, which is a good indicator of housing condition. The Assessor's data indicates an
overall housing stock of average to better quality. There are a few areas, however, where
clusters of buildings have lower quality rankings. Two such areas of note are the
Westway and Lake Grove neighborhoods. The City is aware of the housing condition in
these areas. In Westway, the City and a group of interested housing and social service
agencies are working with the community to identify approaches to improve the
neighborhood. The goal is to create a model for neighborhood involvement and planning
that could be replicated in other neighborhoods. Preventing existing affordable housing
stock from deteriorating is a key to retaining existing affordable housing.
Housing Cost and Affordability
The term "affordable" is not dollar -specific; it is used in a relative sense. In the case of
housing, "affordable" typically is defined as housing costs that total no more than 30
percent of a household's gross income. That affordable dollar amount, of course, changes
depending upon the income level of each household. The following table shows the
annual income, affordable monthly housing cost, and affordable home price, by
household size, for each income group.
Unfortunately, housing costs often take a bigger bite out a household's income than the
recommended 30 percent. For higher income households, this still leaves enough money
to pay for other necessities and perhaps some luxuries. It is lower income households that
are negatively impacted if they are unable to find affordable housing. According to the
2000 Census, in Federal Way almost three-quarters of households earning 50 percent or
less of median family income spend over 30 percent of their income on housing; almost
40 percent of those households spend over half of their income on housing. Table V-4
provides more information on residents overpaying for their housing in Federal Way.
Revised 2005 V-8
FWCC - Chapter Five, Housing
Table V-1
2004 Income Levels and Affordable Housing Costs by Household Size
Affordable Monthly Housing Cost equals 30% of the household's income. In the case of homeownership, the
cost includes principal, interest, and property taxes. The Affordable Home Price assumes a 5% down payment
on a 30 year mortgage at a 6% interest rate.
Percent of
One
Person
i Person
Three
Personi
IncomeMedian
Annual Income
$
16,350
$
18,700
$
21,050
$
23,350
30%
Affordable Monthly
$
410
$
468
$
525
$
585
Housing Cost
Affordable Home Price
$
72,000
$
86,700
$
97,300
$
108,500
Annual Income
$
27,250
$
31,150
$
35,050
$
38,950
50%
Affordable Monthly
$
683
$
780
$
878
$
975
Housing Cost
Affordable Home Price
$
119,800
$
136,900
$
154,100
$
171,200
Annual Income
$
43,600
$
49,850
$
56,100
$
62,300
80%
Affordable Monthly
$
1,090
$
1,245
$
1,403
$
1,558
Housing Cost
Affordable Home Price
$
191,400
$
218,600
$
246,200
$
273,500
Annual Income
$
54,500
$
62,300
$
70,100
$
77,900
Affordable Monthly
$
1,363
$
1,558
$
1,753
$
1,948
100%
Housing Cost
Affordable Home Price
$
239,200
$
273,500
$
307,700
$
341,900
Annual Income
$
65,400
$
74,750
$
84,100
$
93,500
120%
Affordable Monthly
$
1,635
$
1,870
$
2,103
$
2,338
Housing Cost
Affordable Home Price
$ 287,100
$
328,300
$
369,100
$
410,400
Ownership Housing
The cost of ownership housing in Federal Way, like other places in King County, has
been increasing. In Federal Way, the average price of a single-family home in 2003 was
$233,980, an increase of 24 percent since 1999, and the average price of a condominium
increased by 37 percent to $120,958.
Revised 2005 V-9
FWCC — Chapter Five, Housing
Table V-2
2003 Housing Sales Prices in Federal Way
Vice 2003 Change Since 1999
Average Single -Family Price $233,980 24%
Average New Single -Family Price $286,247 17%
Average Condominium Price $120,958 37%
Source: Northwest Multiple Listing
Affordability of Ownership Housing
Compared to some other parts of the county, Federal Way's ownership housing is
relatively affordable. For instance, in 2003, the average price of a home in King County
was $352,956, approximately $120,000 more than in Federal Way. As the table below
shows, in 2003, the average priced single-family house was affordable to households over
80 percent of median income, while a three or four person household below 50 percent of
median could afford an average priced condominium in Federal Way.
Table V-3
Affordability of Home Purchase in Federal Way, 2003
Income Requi ed for
Income Required
Average -Priced Single
Average -Priced New
I Average -Priced
Family Home
Sin le Family Home
Condominium
1 Person
100% Median
120% Median
Just Over 50%
Household
Median
2 Person
100% Median
Over 100% Median
Less Than 50% Median
Household
3 Person
80% Median
Over 80% Median
Less Than 50% Median
Household
4 Person
Less Than 80% Median
Over 80% Median
Less Than 50% Median
Household
Rental Housing
The Dupre + Scott Apartment Reports track rents by the size of the building: 1 to 19 unit
buildings and 20 or more unit buildings. The vast majority of rental buildings in Federal
Way are less than 20 units. Therefore, this section will examine rents for these smaller
rental buildings. It makes a difference since average rents vary based upon the size of the
building. Rent in buildings with 1 to19 units have less expensive one -bedroom units (by
$87 a month) but more expensive larger units (from $87 to $387 more a month). This
Revised 2005 V-10
FWCC — Chapter Five, Housing
could be because so many of Federal Way's single-family homes are rentals and single-
family houses are the most expensive rental type. Rents in buildings with 1 to 19 units
average $586 for a one bedroom, $818 for a two bedroom, $1,207 for a three bedroom,
and $1,426 for a four bedroom.
Affordability of Rental Housing
The following table, derived from the 2000 Census State of the Cities data tables, provides
some valuable information, but can easily result in erroneous assumptions. For instance, it
makes it appear that there are not enough rentals for households over 80 percent of median
income. However, the 850 units cited as affordable are just those relatively few rentals that
are expensive enough to equal 30 percent of these higher households' incomes. All the
rentals affordable to lower income households are, of course, affordable to these higher
income households as well. The Census further informs us that only about 50 percent of
the housing affordable to each income group is actually occupied by that income group.
This demonstrates that other income groups are renting units with rents that either equal
much less or much more than 30 percent of household income.
Table V-4
Quantity and Affordability of Federal Way's Rental Housing for
Each Income Group
Source: 2000 Census
Note: The percent overpaying are the percent of households paying more than 30% of household
income on housing.
Table V-4 also illustrates the need for housing for households earning 30 percent or less
of median income. For instance, by comparing the number of renter households earning
30 percent or less of median income with the number of rental units affordable to this
income group, we find that there is 1,803 fewer affordable housing units than needed for
this income group. This is further illustrated in the last column of the table, which shows
that almost 80 percent of these households pay more than 30 percent of their income for
rent. In addition, a significant portion of the few housing units that are affordable to these
very -low income households were built before 1970, implying that fewer are being built
more recently.
Revised 2005 V-11
FWCC — Chapter Five, Housing
Federal Way's rental housing, as with the rental housing throughout the county, is
generally affordable to households in the 50 to 60 percent of median income range and
above. As Table V-5 shows, it is the households at 40 percent of median income and
below that have the most difficulty in finding affordable rentals; although, larger
households at 50 percent of median income also lack for affordable rental housing. For
example, a three -person household earning 30 percent of median income pays $292 more
than they can afford for a two -bedroom apartment in Federal Way. The figure also
demonstrates why overcrowding may be so prevalent in Federal Way. Low-income
households can only afford rentals with three or more bedrooms by doubling or tripling
up with other households.
Table V-5
Affordability of Federal Way's 2004 Average Rents
1 BR
$586
($178)
($41)
$95
$232
$325
(1 person)
1 BR
$586
($119)
$37
$192
$349
$372
(2 people)
2 BR
$818
($351)
($195)
($40)
$117
$372
(2 people)
2 BR
$818
($292)
($117)
$58
$234
$418
(3 people)
3 BR
$1,207
($624)
($428)
($234)
($39)
$465
(4 people)
3 BR
$1,207
($576)
($366)
($156)
$55
$502
(5 people)
4 BR
$1,426
($701)
($460)
($219)
$23
$576
(7 people)
4 BR
$1,426
($655)
($398)
($141)
$116
$613
(8 people)
Source: Dupre + Scott 1-19 Apartment Report, Betsy Czark & Associates
In conclusion, it appears that the rental market is providing affordable rentals to
households above 50 percent of median and ownership of single-family housing for
households above 80 percent of median, and ownership condominium for those at
approximately 50 percent of median. Therefore, all the City's affordable housing
Revised 2005 V-12
FWCC — Chapter Five, Housing
programs, current and proposed, (e.g., density bonuses, inclusionary zoning, impact fee
waivers, federal Community Development Block Grant JCDBGJ funding, etc.) should
target these income groups not otherwise being provided with affordable housing by the
private market.
Future Housing Growth
The purpose of the GMA is to assist every city in responsibly planning for growth.
Growth will occur. We can either scramble to accommodate this growth or plan for it.
Left alone, the housing market will build housing in the easiest and most profitable
manner to meet the housing demand. Unfortunately, unless guided by good policy,
zoning, development regulations, and incentives, this market -driven response usually
does not supply the diversity of housing choices and prices that result in a healthy and
attractive community.
Housing Targets
During their September 25, 2002 meeting, the GMPC adopted a motion to update the
targets for new households and jobs for the period, 2001 — 2022. These targets were
based on a methodology developed over a two-year period by the King County Planning
Directors. The adopted 2001 — 2022 housing target for Federal Way is 6,188 new
residential units.
Of that 6,188-unit target, per the CWPPs, 20 percent (1,238 units) should be affordable to
households at or below 50 percent of median, and 17 percent (1,052 units) should be
affordable to households between 50 and 80 percent of median income.
Housing Capacity
As is described in the Land Use chapter Federal Way currently has a capacity for 5,538
new residential units, including 3,265 detached single-family homes and up to 2,273
multiple -family units. The capacity for 1,415 of those multifamily units is located in
mixed -use development zones. Given the 6,188 housing unit target above, Federal Way,
at the time of the target adjustment, had a capacity deficit of 650 housing units.
The City will increase its capacity in order to eliminate this deficit in a number of ways.
For instance, in order to encourage more residential development, the City will consider a
number of changes, including a change to the definition of density for conventional
subdivisions. Currently, density is based on minimum lot sizes. The change would base
density on gross acreage. This should result in relatively more lots than presently
allowed. In addition, the City is focusing its policy and development efforts on the City
Center and mixed -use zones to ensure that the projected multifamily housing is built in
those areas. For instance, it has adopted a ten-year exemption from property taxes for
multi -family development within the City Center. The City is also preparing a Planned
Action SEPA for the City Center, which would allow environmental review to occur in
advance of development. This is an incentive for developers since it allows development
to proceed more quickly. As part of the Planned Action SEPA, the City is considering
allowing increased height for structures in the City Center, which would increase
potential capacity for new residential dwelling units.
Revised 2005 V-13
FWCC — Chapter Five, Housing
Meeting the Need for Housing
In addition to ensuring the land capacity to accommodate the expected growth in
households, the City must do what it can to ensure diverse housing opportunities for all
income groups. Although no city can guarantee that the housing built will be affordable
to all income groups, cities can encourage and facilitate housing that is more affordable
using factors it does control, such as land use regulations. For instance, the City can
ensure that it has an adequate amount of land zoned to facilitate the development of
affordable housing opportunities, such as smaller lot sizes, townhouses, cottage housing,
cluster housing, accessory dwelling units, duplexes, triplexes, small-scale apartments,
senior apartments, and single -room -occupancy housing.
Zoning and Development Regulations
Jurisdictions place the most significant controls on housing development through land
use controls and zoning. By a careful evaluation and revision of land use regulations,
Federal Way can significantly influence the amount, type, design, and affordability of the
housing built in the community. Federal Way, like most urban and suburban jurisdictions,
is already "built out"; therefore, the greatest opportunities for expanding the types of
housing available are in infill and redevelopment, not new development.
The first component of Federal Way's housing strategy is to promote in -fill while
protecting the character and quality of its existing single-family residential
neighborhoods. For instance, it is possible to increase the number of units in existing
single-family neighborhoods without changing the neighborhood character by allowing
accessory dwelling units, duplexes, cottage developments, or low -density multifamily
structures. The City already allows cluster housing in single-family zones; however, other
techniques such as lot averaging may be added to the Federal Way Revised Code
(FWRC) to encourage compatible development on difficult sites and near
environmentally sensitive areas. Implementation of the City's design guidelines will
ensure that in -fill development will be compatible with existing neighborhoods.
The second component of the housing strategy is to encourage higher density residential
uses in the I-5/Highway 99 corridor, including the City Center. Row houses, townhouses,
condominiums, and mid -rise residential buildings are appropriate in these areas given the
availability of utilities and other infrastructure, access to public transportation, jobs,
shopping, entertainment, and social and human services. This plan anticipates that during
the next 20 years, the City Center and the Highway 99 corridor will redevelop and
accommodate the majority of the City's new housing units, particularly multifamily
housing units. The area will gradually become a denser, mixed use, pedestrian friendly,
high amenity, high quality vital part of Federal Way.
The third part of the strategy is to ensure that there is sufficient land available for other
housing needs such as government assisted housing, manufactured housing, housing for
low-income families, and special needs housing, including group homes and foster care
facilities. The Land Use chapter and FWRC provide support for these types of housing.
A critical issue in providing a sufficient amount of this housing is to remove any
regulatory barriers to locating such housing throughout Federal Way.
Revised 2005 V-14
FWCC — Chapter Five, Housing
Affordable and Special Needs Housing Strategies
One way that Federal Way can encourage special needs and affordable housing is by
removing regulatory barriers and ensuring an adequate amount of land zoned to facilitate
affordable housing, such as smaller lot sizes, townhouses, cottage housing, cluster
housing, accessory dwelling units, duplexes, triplexes, small-scale apartments, senior
apartments, single -room -occupancy housing, and boarding homes.
A critical element that makes housing more affordable is cost-conscious development
regulations. Subdivision and development regulations should be modified to ensure that
land is used efficiently; that the regulations reflect current safety needs, and that they
permit and encourage construction of a broad range of housing types. For instance,
structural setbacks and street widths could be modified to facilitate small lot
developments, cottage housing, cluster housing, and zero -lot line developments.
In addition, since the private housing market mostly targets those earning middle and
upper incomes, the City should consider providing extra incentives or requirements for
developers to build housing affordable to those with less financial resources. The City
already requires rental housing developments of 25 units or more to provide affordable
housing units, and it also offers an affordable housing density bonus in the City Center.
Other programs it could offer include impact fee waivers, parking requirement
reductions, and affordable housing requirements in conjunction with transit -oriented
development. One incentive program alone is often not enough to encourage developers
to participate. For example, a study by the Growth Management Planning Council
(GMPC), Affordable Housing Incentive Program for King County, suggests that,
depending upon economic factors, a density bonus program needs to be combined with
other incentives in order to be fiscally feasible.
If the City provides incentives, cost-conscious development regulations, and allows
affordable housing types, the private market is more likely to provide housing affordable
to low- and moderate -income households. However, it is impossible for the private
housing market to meet the affordable housing needs of very low-income households,
which includes many with special needs. For example, a senior or disabled person on
Supplemental Security Income has an income of about $570 a month, which is about 13
percent of median income. After food and other essentials, this person does not have
much money left to pay for housing. Furthermore, rents that are affordable to this income
group cannot cover the basic operating and maintenance cost of the housing. Substantial
capital development subsidies, as well as rent subsides, are needed to make new
construction affordable to very low-income households.
To help meet this need for subsidized housing, Federal Way uses the funds available,
such as its federal Community Development Block Grant (CDBG) dollars, to help fund
needed housing and support services. Federal Way also works with the King County
Consortium, neighboring cities, local, state, and federal funding sources, and service and
housing providers to coordinate funding and to develop and implement effective housing
policies and programs to meet future housing needs.
Revised 2005 V-15
FWCC — Chapter Five, Housing
5.3 KEY HOUSING ISSUES
Preserving Neighborhood Character
Preserving existing neighborhood is an important community value in Federal Way. One
of the reasons the community incorporated was to have more control over maintaining
the character of its existing single-family neighborhoods. The FWCP recognizes that
neighborhoods are special places and are valuable and important to the quality of life for
many citizens. In particular, new development in established neighborhoods must be
sensitively designed and constructed. Likewise, new multi -family or mixed use
development located along arterials running through or adjacent to existing residential
neighborhoods should be designed to minimize adverse impacts to its surroundings.
Development Review
Time is money to a housing developer. Thus, whatever the City can do to reduce permit -
processing time will make housing more affordable. As part of the HB 1724 code
revisions, which were enacted in 1995, the City revised the FWRC so that more land use
decisions are administrative decisions, thereby avoiding time-consuming public hearings.
The City also has in place a preapplication process that allows the developer to meet with
City representatives at an early stage in the review process to ensure that the applicant
understands City development regulations. Such early meetings allow the City and
housing developer to agree on the best method to achieve a code compliant and mutually
beneficial site plan prior to spending significant sums on costly design and engineering
work.
A significant portion of the cost of building housing is the cost of providing the necessary
infrastructure. If the City is interested in providing housing that is affordable to very low
income citizens, it could, to the extent economically practicable, provide the necessary
infrastructure, or possibly subsidize the cost of providing public facilities such as streets,
parks, utilities, transit facilities, public amenities, and social services. Federal and state
grants, including CDBG funds are available and should be used where appropriate.
Citizen Participation
Housing policies and development, which results from these policies, impact the
environment of Federal Way residents. Therefore, it is essential that citizens are involved
both in developing policies, such as those in the FWCP, and in reviewing proposed
housing developments. To accomplish this, the City has levels of citizen participation
processes. The process used depends upon the scale of the development and its potential
to impact Federal Way citizens. Both the public and developers should have a clear
understanding of the citizen review process, including the types of issues that are open to
discussion and the time frame for the review process.
Revised 2005 V-16
FWCC — Chapter Five, Housing
Good Design and Diversifying Housing Choice
The City's design guidelines will ensure that Federal Way is able to maintain and
improve the character and quality of its existing residential areas, while at the same time
providing more diverse housing choices for its residents. New housing should be more
diverse and designed in a way that contributes to community character and relates well to
the existing neighborhood environment. It should reassure residents that they will be able
to afford to live close to their jobs, friends, and families. The proposed housing diversity
will also help preserve and maintain neighborhoods by ensuring that there are housing
opportunities for a healthy mix of ages and incomes.
Affordable and Special Needs Housing
To be prosperous in the long run, Federal Way must have sufficient housing affordable to
its bank tellers, firefighters, teachers, government employees, restaurant workers, sales
clerks, and seniors on fixed incomes. Federal Way's goal is both to preserve existing
affordable housing and to ensure that there is an adequate amount of special needs
housing and housing affordable to its low and moderate -income residents. To this end,
the City will eliminate regulatory barriers to special needs and expand opportunities to
develop affordable housing. The City will also facilitate a range of affordable housing
types throughout the City by revising its zoning and development codes as necessary. The
City will also continue to offer density bonuses and other affordable housing programs to
encourage private developers to provide affordable housing. In addition, the City will use
its federal CDBG dollars and other resources to help fund the development and operation
of special needs and affordable housing.
Policy Coordination and Regional Participation
The GMA and good planning practice require that each chapter of the FWCP be
coordinated and consistent with goals and policies set forth in the other chapters. This is
especially true of the Housing chapter, particularly as it relates to the Land Use and
Transportation chapters.
The City also recognizes that most of the housing issues found in Federal Way are
common to the County, Seattle, and the other suburban jurisdictions. In order to ensure
that it addresses this regional housing need effectively, and to help eliminate duplications
of effort, the City should continue to coordinate with the King County Consortium, other
relevant regional entities, and other South King County cities when developing policies
and funding housing and housing -related services.
Revised 2005 V-17
FWCC — Chapter Five, Housing
5.4 HOUSING CHAPTER GOALS AND POLICIES
The following section establishes goals and policies for providing, preserving, and
improving housing in Federal Way. These goals and policies provide a framework from
which to develop implementation strategies and work programs for the community. The
purpose of these goals and policies is to provide housing opportunities to all segments of
the population. Consistent with GMA, these goals and policies should promote a variety
of densities, housing types, and encourage preservation of the City's existing housing
stock.
Overall Goal
Preserve and protect Federal Way's existing high quality residential neighborhoods
and promote a variety of opportunities to meet the housing needs of all residents of the
community and region.
Preserving Neighborhood Character
Goal
HG1 Preserve and protect the quality of existing residential neighborhoods and
require new development to be of a scale and design that is compatible with
existing neighborhood character.
Policies
HP1 High -density housing projects, with the exception of senior housing, will not be
permitted in existing single-family residential neighborhoods. More moderate
densities such as cottage housing will be considered.
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.
HP3 Continue to allow accessory housing units within single-family neighborhoods
in a way that protects residential character, maintains specific design standards,
and complies with all applicable laws. Review accessory housing regulations
and, if necessary, revise any regulation that inappropriately limits their
development.
HP4 Maintain a strong code enforcement program to protect residential areas from
illegal land use activities.
Revised 2005 V-18
FWCC — Chapter Five, Housing
HP5 Subject to funding availability, conduct periodic surveys of housing conditions
and fund programs, including housing rehabilitation, to ensure that older
neighborhoods are not allowed to deteriorate.
HP6 If allowed by applicable law, development inside and outside the City should
be required to provide their fair share of onsite and offsite improvements.
Community Involvement and Development Review
Goal
HG2 Involve the community in the development of new housing to a degree that is
consistent with the scale of impact on the surrounding neighborhoods.
Policies
HP7 Continue to encourage public input into development of planning and
regulatory documents through a formal public process characterized by broad,
thorough, and timely public notice of pending action.
HP8 Consider the economic impact of all development regulations on the cost of
housing.
HP9 Maximize efficiency in the City's development review process and ensure that
unnecessary time delays and expenses are eliminated. Continue to provide
streamlined permitting processes for development that is consistent with the
FWCP and FWRC, and that has no adverse impacts.
HP10 Encourage community input, where appropriate, into the development permit
process by providing thorough and timely information to the public.
HP11 Continue to assist developers with housing proposals at the earliest possible
opportunity, including preapplication meetings to produce projects that can be
reviewed quickly and maximize their ability to receive permits.
Good Design and Diversifying Housing Choice
Goal
HG3 Develop a Comprehensive Plan and zoning code that provide flexibility to
produce innovative housing solutions, do not burden the cost of housing
development and maintenance, and diverse the range of housing types
available in the City.
Revised 2005 V-19
FWCC — Chapter Five, Housing
Policies
HP12 The FWRC and Land Use chapter of the FWCP will be coordinated to facilitate
locating housing affordable to low-income, very low-income and special needs
households throughout the City, especially around the City Center and other
areas that provide proximity to low wage employment, safe and convenient
access to transportation and human services, and adequate infrastructure to
support housing development.
HP13 Continue to use design guidelines to ensure that new and infill developments
have aesthetic appeal and blend into surrounding development.
HP14 Establish appropriate minimum densities for each zone and encourage new
residential development to achieve maximum allowable density based on gross
area to ensure that the City can house the anticipated population growth.
HP15 Review zoning, subdivision and development regulations to ensure that they
further housing policies and don't create unintended barriers. This is of
particular importance for small lot and cottage housing developments. In order
to facilitate small lot and cottage housing developments, it is particularly
important to revise, as necessary, the subdivision and development regulations
that govern their development.
HP16 As appropriate, reduce minimum lot sizes to allow construction of smaller,
detached single-family houses on smaller lots.
HP17 Increase capacity and encourage greater diversity of housing types and costs for
both infill and new development through various methods, such as inclusionary
zoning, density bonuses, transfer of development rights, cluster housing,
cottage housing, garden housing, duplexes, and low to moderate density
housing types.
HP18 Continue to permit mixed -use residential/commercial development in
designated commercial areas throughout the City. Develop incentive programs
to ensure an adequate amount of housing is developed in these areas.
HP19 Increase the amount of undeveloped open spaces in both infill and new
development parcels, by expanding the use of cluster development and
allowing housing techniques such as lot averaging, and zero lot line standards.
HP20 Establish administrative procedures to permit innovative housing designs and
techniques, provided they are of high standard and consistent with the FWCP.
HP21 Continue to provide incentives such as density bonuses for multi -family
housing, and expand the types of incentives offered to encourage new
developments to include affordable housing.
HP22 Periodically review and update development regulations to incorporate
opportunities for new housing types.
Revised 2005 V-20
FWCC — Chapter Five, Housing
Housing Affordability
Goal
HG4 Develop a range of affordable housing opportunities for low-income
households consistent with the CWPPs and the needs of the community.
Policies
HP23 Promote fair housing access to all persons without discrimination.
HP24 As estimated by CWPPs, maintain sufficient land supply and adequate -zoning
within the City to accommodate 17 percent of the City's projected net
household growth for those making 50 to 80 percent of King County's median
income and 20 percent making less than 50 percent of median income.
HP25 Require a portion of new housing on sites of significant size to be affordable to
low-income households at a level not provided otherwise by the private market.
Developers should be compensated for providing this affordable housing by
increased density or other benefits.
HP26 Revise the City's affordable housing density bonus program to provide housing
at affordability levels not provided otherwise by the private market. At a
minimum, any affordable rental units should be affordable and rented to
households below 50 percent of county median income, and ownership units
should be affordable and sold to households at or below 80 percent of county
median income.
HP27 Ensure that any new affordable housing required by the City remains affordable
through some tool approved by the City, such as recording a lien on the
property. In the case of homeownership projects, the lien can be structured as a
deferred second mortgage to the homebuyer, due upon sale if the subsequent
buyer does not meet the income eligibility standards.
HP28 Coordinate all City affordable housing programs so that a developer can use
multiple incentives or programs for a single project. Required affordability
levels and duration of affordability should be the same for all programs.
HP29 Allow and encourage use of manufactured housing in residential zones,
provided it conforms to all applicable federal, state, and local requirements and
is compatible with the character of the surrounding neighborhood.
HP30 In order to maintain existing affordable housing, the City should continue to
allow manufactured home parks in existing locations. However, new
manufactured home parks will not be permitted, nor will expansion of existing
parks be allowed.
Revised 2005 V-21
FWCC — Chapter Five, Housing
HP31 Encourage new residential development to achieve maximum allowable density
based on gross area.
HP32 Explore federal, state, and local resources to assist in financing affordable
rental and ownership housing. Encourage expansion of home ownership
options through such means as first time home buyer programs, housing
cooperatives, lease -purchase ownership, and other housing models.
HP33 Consider delaying, deferring, or exempting affordable housing from
development fees, concurrency requirements, payment of impact fees, offsite
mitigation, and other development expenses that do not compromise
environmental protection or public health, safety, and welfare concerns, or
constitute a nuisance.
HP34 Support tax law amendments that provide relief to owners of affordable and
special needs housing.
HP35 Identify low-income and very low-income housing resources that may be lost
due to redevelopment or deteriorating housing conditions. Develop strategies
that seek to preserve this existing housing, and that seek to provide relocation
assistance to households that are displaced as a result of any redevelopment.
HP36 Annually monitor residential development to determine the total number of
new and redeveloped units receiving permits and units constructed, housing
types, developed densities, and remaining capacity for residential growth for all
income levels and needs.
HP37 Integrate and coordinate construction of public infrastructure with private
development to minimize housing costs wherever possible or practicable.
Special Needs Housing
Goal
HG5 Develop a range of housing opportunities that meet the requirements of people
with special housing needs, including the elderly, mentally ill, victims of
domestic abuse, and persons with debilitative conditions or injuries.
Policies
HP38 Periodically review the FWRC and remove any regulatory barriers to locating
special needs housing and emergency and transitional housing throughout the
City as required by the federal Fair Housing Act, to avoid over -concentration,
and to ensure uniform distribution throughout all residential and mixed -use
zones.
Revised 2005 V-22
FWCC — Chapter Five, Housing
HP39 Modify the FWRC's definition of family in order to simplify and clarify the
definition and remove any potential barriers to siting housing for protected
classes as defined in the federal Fair Housing Act
HP40 Review permit applications for special needs housing in close coordination
with service providers and the City's Human Services program.
HP41 Assist special needs housing developers, local service organizations and self-
help groups to obtain funding and support.
HP42 Ensure that access to special needs housing is provided without discrimination.
Goal
HG6 Develop emergency shelter and transitional housing facilities for the homeless.
Policies
HP43 Coordinate City actions related to homelessness with the City's Human
Services Program and non-profit housing and human services providers.
HP44 Clarify the City's Social Services Transitional Housing (SSTH) definition and
regulations and make necessary changes to result in adequate opportunities to
develop transitional housing in Federal Way.
HP45 Emergency shelters and transitional housing should be permitted and regulated
to ensure there are adequate opportunities to locate them throughout the City, to
avoid over -concentration of facilities, to ensure that such housing is properly
managed, and to avoid or mitigate significant impacts on existing residential
neighborhoods or other surrounding uses.
Regional Participation
Goal
HG8 Coordinate and integrate the City's housing programs with regional housing
efforts and with local housing and service providers.
Policies
HP46 Policies and regulations related to affordable housing should be consistent with
CWPPs and multi -county policies.
HP47 Establish effective links with King County and other area cities to assess need
and create housing opportunities for low-income and special needs households,
Revised 2005 V-23
FWCC — Chapter Five, Housing
and develop housing programs that address issues common throughout the
region.
HP48 Subject to availability of funds, participate in the production and periodic
update of a housing needs assessment for the City and the region to ensure that
policy is based upon a rational evaluation of housing needs and priorities.
HP49 Ensure equitable and rational distribution of affordable housing throughout the
region that is compatible with land use, transportation, and employment
locations.
Revised 2005 V-24