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2020-08-05 Planning Commission PacketCommissioners City Staff Lawson Bronson, Chair Tom Medhurst, Vice-Chair Robert “Doc” Hansen, Planning Manager Wayne Carlson Hope Elder E. Tina Piety, Administrative Assistant Dawn Meader McCausland Tim O’Neil 253-835-2601 Diana Noble-Gulliford Dale Couture, Alternate www.cityoffederalway.com Eric Olsen, Alternate K:\PLN Planning Commission\2020\Agenda\Agenda 08-05-20.doc City of Federal Way PLANNING COMMISSION August 5, 2020, 6:30 p.m. City Hall, Zoom Meeting AGENDA Notice: Pursuant to Governor Inslee’s Proclamation 20-28, all in-person meetings are prohibited until further notice. The Mayor and City Council are providing opportunities for public comment by submitting written comment or calling into the meeting to provide oral testimony. To access these options please use the following: Click here for a form to sign-up to give citizen comment during the meeting (via telephone, number below) / you will be given access during the public testimony portion (we request you sign up at least 2 hours before the meeting starts). Click Here to submit written comments to the Planning Commission (we request you submit them at least 2 hours before the meeting starts); please reference “Planning Commission Meeting – August 5th Please click the link below to join the webinar: https://cityoffederalway.zoom.us/j/91558684637?pwd=TEJnRFlOSTZZc0NlTVJGdXlRUDJXdz09 Listen to the live meeting: (888) 788-0099 or 253-215-8782 Meeting ID: 915 5868 4637 Watch from the Zoom mobile app with meeting: 915 5868 4637 and password: 371382 1. CALL TO ORDER 2. ROLL CALL 3. APPROVAL OF MINUTES a. Planning Commission Meeting of July 15, 2020 4. PUBLIC COMMENT 5. COMMISSION BUSINESS a. Discussion –Housing Action Plan 6. STAFF BUSINESS a. Manager’s Report 7. NEXT MEETING a. August 19, 2020, 6:30 p.m. 8. ADJOURNMENT Planning Commission Meeting Minutes July 15, 2020 Planning Commission Minutes Page 1 July 15, 2020 CITY OF FEDERAL WAY PLANNING COMMISSION July 15, 2020 City Hall 6:30 p.m. Zoom MEETING MINUTES Commissioners present: Lawson Bronson, Tom Medhurst, Wayne Carlson, Dawn Meader McCausland, Diana Noble-Gulliford, Hope Elder, Tim O’Neil, and Dale Couture. Commissioners absent: Eric Olsen (ex). City Staff present: Planning Manager Robert “Doc” Hansen, Public Works Director EJ Walsh, City Traffic Engineer Rick Perez, Assistant City Attorney Eric Rhoades, and Administrative Assistant II Tina Piety. CALL TO ORDER Chair Bronson called the meeting to order at 6:30 P.M. MINUTES The July 1, 2020, minutes were approved as presented. PUBLIC COMMENT None Because of procedural issues, Planning Manager Hansen asked that both public hearings be postponed. Commissioner Medhurst moved (and it was seconded) to postpone Public Hearing (a) regarding Shelter Resources to a Wednesday, August 19, 2020, at 6:30pm Zoom meeting because of a public notice procedural mistake. There was no further discussion. The vote was held and the motion passed unanimously. Commissioner Noble-Gulliford moved (and it was seconded) to postpone Public Hearing (b) regarding the 376th Street/19th Avenue Connection to a date and time uncertain because the Public Works Department must perform a traffic/engineering impact analysis. There was no further discussion. The vote was held and the motion passed unanimously. Commissioner Noble-Gulliford expressed her concern that Planning Commission meetings, and in particularly public hearings, are being held via Zoom. She feels it is limiting for both the public and Planning Commissioners and the whole reason for the meetings is to hear from the public. She asked staff to research other possibilities; maybe hold meetings at City Hall or the PAEC with appropriate social distancing and other safety measures. She noted the city received funds for dealing with the impacts of the virus and maybe some could be used for public meetings. While it is felt staff is doing a good job, other Commissioners agreed with her concerns and suggestions. Planning Commission Minutes Page 2 July 15, 2020 COMMISSION BUSINESS a. Public Hearing: 2020 Proposed Comprehensive Plan Amendment and Rezone, Shelter Resources Property from RS-7.2 to High Density, Multiple Family Classification, and RM 1800 b. Public Hearing: Eliminate the 376th Street/19th Avenue Connection “Minor Collector” Classification in Chapter 3, Map 3 of the Comprehensive Plan STAFF BUSINESS a. Manager’s Report – Planning Manager Hansen reported that he is working with the city’s consultants to provide a presentation on the Housing Plan at the August 5, 2020, meeting. NEXT MEETING August 5, 2020, 6:30 p.m., Zoom Meeting ADJOURN The meeting adjourned at 6:50 P.M. K:\Planning Commission\2016\Meeting Summary 07-15-20.doc Planning Commission Discussion A Housing Action Plan 1 Federal Way Housing Action Plan Engagement Plan – July 2020 Introduction The Engagement Plan provides a framework for understanding how engagement will be coordinated with the development of the Housing Action Plan. It is a tool the City and project team will use to organize and direct their efforts. In addition to outlining the purpose and objectives of engagement, this Public Engagement Plan identifies key stakeholders and possible methods of engagement. As the project progresses, the team will use this Public Engagement Plan to select and design events that are aligned with the project schedule and respond to community needs. The Public Engagement Plan identifies a range of engagement options that meet the needs of participants, including a range of methods that meet requirements for public health and safety in response to COVID-19. Vision Statement The Housing Action Plan Engagement Plan will provide equitable public participation with meaningful outreach and engagement to all populations resulting in people having a voice and access to decision making by including diverse housing types, applying racial equity, and involving those representing marginalized populations. Objectives Public engagement is important to the development of policies and plans to guide the City’s future. Outreach and engagement objectives for this plan include the following:  Clearly communicate the project’s purpose and process so the community is well-informed.  Build project support through outreach and engagement efforts that invite thoughtful, meaningful input.  Actively solicit questions, priorities, and concerns from a variety of stakeholders including residents, businesses, property owners, housing providers, real estate professionals, housing developers.  Seek perspectives of parties that may be affected by the plan, including those who may have barriers to participation.  Seek perspectives of those at high risk of displacement.  Provide safe, accessible, inclusive, and enjoyable engagement opportunities. July 2020 City of Federal Way | Housing Action Plan 2 Stakeholders Housing is a community issue with many stakeholders. All people need shelter, but housing is also important to building families, neighborhoods, and communities. Many people’s livelihoods are involved with the housing industry including the development, construction, sales, and leasing of housing units. As a result, there are many kinds of stakeholders that need to be involved in the development of a Housing Action Plan. The list of stakeholders below identifies general stakeholder categories as well as specific examples of contacts within each group. As the plan is developed, stakeholders and contacts will be added to this list. Group Stakeholders Specific Organizations Residents Property owners Neighborhood Associations Renters Low-income households People of color Residents from a variety of housing types (mobile home, apartment, senior housing, townhouse, duplex/triplex/quadplex/ King County Library System Federal Way Diversity Commission Tenants Union of Washington Boys & Girls Clubs of Federal Way Housing Production Single-family developers Multi-family developers Mixed-use developers Single-family builders Multi-family builders Mixed-use builders Master Builders Association of King and Snohomish Counties SECO Development Building Industry Association of Washington Sales and Leasing Real-estate brokers and agents Property management companies Building managers Rental Housing Association of WA Washington Association of Realtors Zaran Sayre Property Management Targa Real Estate Services, Inc. Industrial Realty Group Affordable Housing Non-profit housing developers Public housing agencies South King Housing and Homelessness Partners (SKHHP) Homestead Community Land Trust King County Housing Authority Housing Development Consortium Affordable Housing Management Association of Washington July 2020 City of Federal Way | Housing Action Plan 3 Community and Non-Profit Organizations Housing advocates Equity and social justice advocates Organizations serving the homeless Religious organizations Federal Way Black Collective The Arc of King County Multi Service Center Habitat for Humanity Seattle-King County Catholic Community Services of Western Washington United Way of King County House of Mercy Church of the Nazarene Family Life Church Brooklake Church Integrity Life Church Islamic Center of Federal Way Al-Firdows Islamic Center Kiwanis Club of Federal Way Greater Federal Way Kiwanis LeadingAge Washington El Centro de La Raza Business and Economic Development Organizations Business Associations Major Employers Greater Federal Way Chamber of Commerce St. Francis Hospital Methods and Tools ENGAGEMENT Engagement will revolve around a series of meetings with an advisory committee, the Planning Commission, and the City Council (including Council committees). Broader engagement will occur at project key touchpoints in the process. Due to the changing nature of public health orders, engagements could include in-person and remote applications.  Advisory Committee. An advisory committee comprised of racially diverse people representing groups and stakeholders listed in the chart above, will guide development of the Housing Action Plan. The goal of this body is to represent the many housing interests in the community and to provisions to “provide for participation and input from community members, community groups, local builders, local realtors, nonprofit housing advocates, and local religious groups.1” The work of the 1 ESHB 1923. July 2020 City of Federal Way | Housing Action Plan 4 committee will be guided by a charter that guides participation throughout the process. Advisory Committee meetings will be advertised on the project website and open to the public.  Planning Commission. The Federal Way Planning Commission is an appointed group representing a cross-section of interests that reviews changes to the City’s Comprehensive Plan and development regulations and forwards recommendations to City Council. Public comment is accepted orally and in writing at their meetings and they are authorized to hold public hearings by the Federal Way Municipal Code. Throughout the process the Planning Commission will participate in briefings and workshops, some held jointly with the Advisory Committee, to review the development of the policies, codes, and strategies that are under consideration for the Housing Action Plan.  Interviews. Interviews will be used to gather in-depth feedback key stakeholders to learn more about the needs of specific populations and to provide qualitative information for the housing action plan. Interviews may take place remotely using a variety of communication tools including phone calls, video conferencing applications, or WhatsApp.  Focus groups. These small, facilitated discussions collect in-depth input from a variety of groups. They may be conducted with small groups in lieu of individual interviews.  Tour. The project team will design a virtual/self-driving tour that highlights higher density housing options that may be suitable for Federal Way in the future. The goal is to feature innovative programs in other jurisdictions that may meet Federal Way housing objectives. The tour will include a survey instrument to collect feedback from participants.  Public meetings. Public meetings can include in-person and virtual open houses, workshops, town halls, or charettes. They invite the community to learn more about the project and provide comment, and can include interactive activities like live polling, small group discussions, and moderated question/answer sessions. Public meetings will be scheduled at key project milestones to provide input on community-wide housing preferences and to review the draft Housing Action Plan document. While public meetings are traditionally held in person, remote options include:  Real-time remote meetings. Meetings may be held in real time using conferencing platforms accessed by computer or smart phone. These allow for moderated discussions, question and answer sessions, presentations, and small group discussions. Those without a smart phone can participate by dialing in with any phone and using a supplemental packet of hardcopy or digital materials made available in advance. Real-time meetings can be recorded and posted online for people to review at their convenience.  Online open house. These are interactive platforms with which people can engage at their convenience. Depending on the platform, they provide information with embedded opportunities for input, such as storymaps, and surveys. OUTREACH AND COMMUNICATION The following methods will be used to share information about the Housing Action Plan and opportunities to participate. July 2020 City of Federal Way | Housing Action Plan 5  Project webpage. This will be a repository for Housing Action Plan information, including status updates, draft documents, schedules, official notices, and links to partner agencies. It may invite electronic input through features such as comment boxes, surveys, or online open houses.  Print and electronic media. At key milestones information about the plan will be advertised through the City’s social media platforms and other online accounts, as well as through print mailings, emails, and newsletters.  Official notices. City staff will comply with notification requirements for comment periods and public hearings specified by the State Environmental Policy Act (SEPA) and the Federal Way Municipal Code.  Interested parties list. City staff will maintain a list of interested parties who will receive electronic notification of public meetings and project milestones. Participants who provide contact information to the City will be added to the list.  Translation and interpretation. Translation of print materials and interpretation at meetings will be available as needed. The team should work with trusted advisors and community leaders to determine the most effective way of distributing materials in other languages. Engagement Schedule Engagement will occur during each phase of the project. The timing of these phases is an estimate and subject to change. Outreach Phase Outreach and Engagement Activities Needs Assessment Inform stakeholder and community groups about the project and learn about existing conditions and future needs. Summer 2020 Notice to the public of project launch Launch of Advisory Committee Interviews with City Council members Interviews and focus groups with housing stakeholders Joint workshop with the Planning Commission and the Advisory Committee City Council briefing Policy Review Identify policies that may be needed to fill housing gaps. Summer and Fall 2020 Advisory Committee meeting Planning Commission meeting Housing Options Review and identify housing types that are suitable for Federal Way. Community wide housing preferences workshop Advisory Committee meeting Joint workshop with the Planning Commission and the Advisory Committee Higher density housing options tour July 2020 City of Federal Way | Housing Action Plan 6 Fall 2020 Strategies Identify strategies to support desired housing options. Develop a draft Housing Action Plan. Beginning of 2021 Public meeting/Open House on the Draft Plan Advisory Committee Meeting Planning Commission Meeting Council Land Use and Transportation Committee meeting Exercise transparency by advising community members of potential impact (negative externalities) from proposed strategies to allow for time to participate in discussion before adoption stage FEDERAL WAY SOUTH KING COUNTY SUB-REGIONAL HOUSING ACTION PLAN FRAMEWORK 2020 2 City of Federal Way | South King County Sub-Regional Housing Action Plan Framework This document provides trends in demographic, employment, housing, and housing affordability along with housing projections for the City of Federal Way. Fedreal Way is a participant of the South King County Sub-regional cities who are coordinating a comprehensive Housing Action Plan Framework for South King County which includes the cities of: • Auburn • Burien • Federal Way • Kent • Renton • Tukwila Given that the participating communities are impacted by many common market trends and demands, cooperation is necessary to address these issues. Providing for the sub-regional coordination of Housing Action Plans through a common Framework will allow all the partners to address housing issues holistically and ensure housing-related burdens are not simply shifted around between cities. The sub-region differs from East King County and Seattle, where housing markets and income levels significantly skew the Area Median Income as it relates to how affordability is defined, and therefore how successful south King County cities are in providing affordable housing for their communities. A sub-regional framework that captures broad factors impacting housing choice, cost burden, and existing conditions of housing stock in South King County will set the stage to evaluate and incorporate appropriate policies, tools and incentives for increasing residential capacity. This document and analyses were produced by: South King County Sub-Regional Housing Action Plan Framework | City of Federal Way 3 Executive Summary › Federal Way needs about 6,786 new housing units by 2040 when its population is expected to reach more than 106,500 people. This includes 1,154 units that were underproduced and are needed to meet current demand, plus 5,632 units needed to meet future population growth (see page 7). › Federal Way needs to produce about 339 units per year to reach this goal (pg. 7). This is more than 1.5x the 200 average units produced annually over the 2011-2019 timeframe (pg. 4). › In the 2011-2019 timeframe, Federal Way produced 5.7 housing units for every 10 new households that formed in the city (pg. 4). This is the lowest level of production of any city in the South King County subregion. › The majority of these new units were built in the middle of this development cycle - in 2016 and 2017 (pg. 4). › As a result of this imbalance in supply and demand for housing, average 2-bedroom rents increased about 60% since 2010, and home prices increased about 96% (pg. 6). › Housing costs are quickly outpacing incomes: over the 2012 to 2018 time period, renter incomes only grew 30% and homeowner incomes only grew 25% (pg. 5). › In 2018, 89% of renters and 84% of homeowners earning less than 30% of AMI were cost burdened, along with 87% of renters and 59% of homeowners earning between 30% and 50% of AMI (pg. 6). › Federal Way is increasingly seeing an influx of four and five and more family households, potentially due to generational shifts in homeownership of the existing single-family stock. (pg. 5). › Federal Way saw a decline in the number of households earning less than 50% of AMI between 2012 and 2018, while the number of households earning over 50% of AMI grew. Part of this change can be attributed to changing household sizes and part due to an influx of higher-income households (pg. 5). › As a result of Federal Way’s changing demographics, the bulk of its new units are needed at the 50%-80% AMI and over 100% AMI affordability range (pg. 7). Some households in this income range may be renting down – taking stock from lower-income households – or renting up and experiencing cost burdening. The 2018 HUD Area Median Income (AMI) for King County is $103,400 for a 4-person household. Data discussing “% AMI” are proportioned off of this median and are also for 4-person households. 4 City of Federal Way | South King County Sub-Regional Housing Action Plan Framework Housing Trends Number of Units Built Per Year, 2011-2019 Source: OFM, 2019 Source: King County Assessor’s Office, 2020 Housing Units Built by Decade, 1960-2020 Decade % of Units Before 1960’s 4% 1960’s 16% 1970’s 22% 1980’s 31% 1990’s 15% 2000’s 6% 2010’s 5% 37,257 Number of total housing units in 2018 Source: OFM, 2019 1,813 Number of housing units built since 2011 Source: OFM, 2019 202 New housing units built on average every year since 2011 Source: OFM, 2019 5.7 New housing units per every 10 new households› Between 2010-2019 Source: OFM, 2019, ECONorthwest calculations Scale of Housing Built by Decade, 1960-2020 Source: King County Assessor’s Office, 2020 South King County Sub-Regional Housing Action Plan Framework | City of Federal Way 5 Change in Household Type, 2012 & 2018 Income Distribution by AMI, 2012 & 2018 Income Distribution by AMI and Tenure, 2018 2010 2018 Population 89,306 97,440 2012 2018 Households 47,812 50,368 2012 2018 Median Income $37,378 $48,629 2012 2018 Median Income $68,694 $85,607 Demographics Source: PUMS (2012, 2018) Source: PUMS (2012, 2018) Source: PUMS (2012, 2018) Source: PUMS (2012, 2018) Source: OFM, 2019 Source: PUMS (2012, 2018) Source: PUMS, 2018 9% Change in population › Between 2010 and 2018 5% Change in number of households› Between 2012 and 2018 30% Change in median renter household income› Between 2012 and 2018 25% Change in median owner household income› Between 2012 and 2018 6 City of Federal Way | South King County Sub-Regional Housing Action Plan Framework Cost Burdened› A household who pays more than 30% of their income on housing (inclusive of households with severe cost burdening). Severely Cost Burdened› A household who pays more than 50% of their income on housing. Cost Burdened and Severely Cost Burdened by Tenure, 2018 Housing Units Affordable by AMI and Tenure, 2018 2010 2020 Average Rent $857 $1,343 2010 2020 Median Sales Price $211,600 $414,700 Source: PUMS, 2018 Source: PUMS, 2018 Source: Costar Source: Zillow 60% Change in average rent for 2-bedroom apartment› Between 2010 and 2020 96% Change in median home sales price› Between 2010 and 2020 Housing Affordability 3,195 Number of income restricted units› Total units as of 2020 Source: ECONorthwest analysis of public affordable housing data South King County Sub-Regional Housing Action Plan Framework | City of Federal Way 7 Housing Need Forecast 106,571 Projected population by 2040 451 Average annual population growth projected through 2040 6,786 Projected number of units needed by 2040 339 Average number of new units needed per year through 2040 68% Increase in annual housing production to reach 2040 housing need target Housing Units Needed Through 2040 Housing Units Needed as a Share of Existing Stock Housing Units Needed by AMI, 2040 Underproduction Future Need Housing Need 1,154 5,632 6,786 Existing Units Housing Need % of Existing Units 37,257 6,786 18% AMI # of Units % of Units 0-30% 950 14% 30-50%1,289 19% 50-80%1,629 24% 80-100%814 12% 100%+2,104 31% Source: OFM, 2019; PSRC, 2017; ECONorthwest Calculation Source: OFM, 2019; PSRC, 2017; ECONorthwest Calculation Source: OFM, 2019; PSRC, 2017; ECONorthwest Calculation Source: PSRC, 2017 Source: PSRC, 2017, ECONorthwest calculations Source: OFM, 2019; PSRC, 2017; ECONorthwest Calculation Source: OFM, 2019; PSRC, 2017; ECONorthwest Calculation Source: OFM, 2019; PSRC, 2017; ECONorthwest Calculation HUD Affordability Level by Housing Type, 2018 AMI Studio 1-bed 2-bed 30%$542 $582 $698 50%$904 $970 $1,164 80%$1,448 $1,552 $1,862 100%$1,810 $1,938 $2,326 Source: HUD, 2018 Underproduction › Housing units needed to satisfy existing households today. Future Need › PSRC 2040 population forecast translated into housing units. 8 City of Federal Way | South King County Sub-Regional Housing Action Plan Framework Employment Profile Source: PSRC, ECONorthwest Federal Way Employment Numbers Regional Access to Employment Industry (2-digit NAICS Code)Employees (2018) # Change (2008-2018) % Change (2008-2018) Median Salary (2018) % Jobs by Auto % Jobs by Transit Agriculture, Forestry, Fishing and Hunting 19 14 280%$36,563 24%0% Mining, Quarrying, and Oil and Gas Extraction 22 17 340%NA 47%6% Utilities 0 -8 -100%$93,542 24%1% Construction 1,085 138 15%$50,362 44%1% Manufacturing 308 -416 -57%$62,420 45%1% Wholesale Trade 1,093 302 38%$47,864 51%2% Retail Trade 4,914 -394 -7%$40,378 39%3% Transportation and Warehousing 569 106 23%$50,920 66%4% Information 105 -256 -71%$57,418 6%0% Finance and Insurance 1,424 193 16%$63,308 24%2% Real Estate and Rental and Leasing 1,024 318 45%$41,974 34%3% Professional, Scientific, and Technical Services 1,447 98 7%$74,257 16%1% Management of Companies and Enterprises 99 -2,861 -97%$46,319 26%1% Administrative and Support and Waste Management and Remediation services 913 -326 -26%$38,838 38%3% Educational Services 2,614 281 12%$51,543 34%2% Health Care and Social Assistance 7,927 2,615 49%$45,870 36%2% Arts, Entertainment, and Recreation 472 -272 -37%$50,625 33%3% Accommodation and Food Services 3,680 -84 -2%$31,935 36%4% Other Service 952 -558 -37%$44,544 34%2% Public Administration 1,772 33 2%$59,243 38%3% South King County Sub-Regional Housing Action Plan Framework | City of Federal Way 9 Employment Profile * Transit and drive time of 45 minutes, departing at 8:00 AM, midweek Source: PSRC, ECONorthwest Access to Employment* These city-level employment estimates by 2-digit NAICS codes were derived using a combination of the U.S. Census Bureau’s Longitudinal Employer-Household Dynamics (LEHD) Origin-Destination Employment Statistics (LODES) data, and Puget Sound Regional Council’s Covered Employment Estimates. These employment estimates show the total number of residents working in each 2-digit NAICS sector in that city, the change in employment in that sector in that city since 2008, and the 2018 median wages for the residents in that city in that sector. Transit and auto access to regional employment was derived using 45-minute travel sheds for each mode. We calculated the number of jobs available within these travel sheds in each 2-digit NAICS category for the four-county region (King, Pierce, Snohomish, and Kitsap).