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2020-09-16 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 09-16-20.doc City of Federal Way PLANNING COMMISSION September 16, 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: DOWNLOAD THE DOCUMENT TO ACCESS THE LINKS. 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 – September 16th 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 September 2, 2020 4. PUBLIC COMMENT 5. COMMISSION BUSINESS a. Public Hearing – FWRC Chapter 19.250, Cottage Housing Amendment 6. STAFF BUSINESS a. Manager’s Report 7. NEXT MEETING a. October 7, 2020, 6:30 p.m. 8. ADJOURNMENT Planning Commission Meeting Minutes September 2, 2020 Planning Commission Minutes Page 1 September 2, 2020 CITY OF FEDERAL WAY PLANNING COMMISSION September 2, 2020 City Hall 6:30 p.m. Zoom MEETING MINUTES Commissioners present: Lawson Bronson, Tom Medhurst, Wayne Carlson, Diana Noble-Gulliford, Dawn Meader McCausland, Tim O’Neil, Hope Elder, and Eric Olsen. Commissioners absent: Dale Couture (ex). City Staff present: Planning Manager Robert “Doc” Hansen, Senior Planner Becky Chapin, Assistant Planner Chaney Skadsen, 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 August 19, 2020, minutes were approved as amended to include Commissioner Hope Elder as present. PUBLIC COMMENT None COMMISSION BUSINESS a. Public Hearing: Proposed Minor Code Amendments – Planner Chapin delivered the staff report. She stated that the issue brought up at the last meeting by Commissioners regarding clarifying what is done for public notices if the newspaper has a temporary stop to publishing a paper copy can be added to next year’s minor code amendments. Commissioner Noble-Gulliford commented that she is concerned that there be a clear and easy way for citizens to find out about proposed actions. She noted that for the online Federal Way Mirror, one must pay to view legal notices after a certain number of free views. She is also concerned that not posting a notice at the libraries means there is not a place a citizen can discover a proposed action. Planner Chapin commented that staff is working with our IT Department on providing a more prominent place on the main page of the city’s website for land use notices. Commissioner Meader McCausland suggested the city provide a list service for those interested in proposed actions. Just having them on the website means people have to remember to check every week. Commissioner Carlson suggested the city consider doing additional ways of noticing for more substantial projects; but as not part of code, simply a written policy. Planning Commission Minutes Page 2 September 2, 2020 Commissioner Noble-Gulliford stated that she is concerned the cost for an appeal ($1000) is exorbitant for an average citizen. Some other commissioners disagree, feeling the amount discourages frivolous appeals. Commissioner Noble-Gulliford noted that at times the notice only has a parcel number and no address. Many people will not know what a parcel number is and she asked that all notices include an address or nearby streets. Commissioner Carlson moved (and Commissioners Noble-Gulliford and O’Neil seconded) to recommend adoption of the proposed amendments as presented. There was no further discussion. The vote was held and the motion passed unanimously. b. Discussion: FWRC Chapter 19.250, Cottage Housing Amendment – Manager Hansen introduced Associate Planner Skadsen, who delivered the staff presentation. The purpose of this session is to brief and obtain feedback from the Commissioners on the proposed cottage housing amendment. Staff has identified barriers to cottage and compact single-family housing in Title 19 of the Federal Way Revised Code (FWRC). Such housing is referred to as Missing Middle Housing. “Missing” because they have typically NOT been permitted. “Middle” because they sit in the middle of a spectrum between detached single-family homes and mid-rise to high-rise apartment buildings, in terms of form and scale. The proposed amendment will increase the maximum base density in single-family zones from 12 units to 16 units, and will remove the affordability requirement. Discussion was held regarding the Housing Action Plan that the city is preparing. Commissioner O’Neil suggested the city allow cottage and compact single-family housing as condominiums. Commissioner Meader McCausland asked why is the city proposing this amendment at this time, rather than waiting until after the Housing Action Plan is done as it may have additional suggested amendments to cottage and compact single-family housing. Manager Hansen replied that the city has received a number of inquiries about cottage housing. The proposed amendment will remove a barrier and make it more financially feasible for developers, and therefore, make it more likely for them to apply for development. Discussion was held on how COVID 19 may be affecting housing. Discussion was held concerning parking and that the current parking requirement could lead to a lot of street parking. Commissioner Noble-Gulliford expressed that market forces (cost of materials, labor cost, etc.) may negate what the city does to address the housing crisis. Commissioner O’Neil commented that developers are more concerned with the lot yield, as opposed to the number of units. STAFF BUSINESS a. Manager’s Report –None. NEXT MEETING September 16, 2020, 6:30 p.m., Zoom Meeting ADJOURN The meeting adjourned at 8:00 P.M. K:\Planning Commission\2016\Meeting Summary 08-19-20.doc Planning Commission Public Hearing Proposed FWRC Chapter 19.250 Cottage Housing Amendment Public Hearing Planning Commission Staff Report September 16, 2020 Cottage and Compact Single-Family Housing Amendments Page 1 of 8 PLANNING COMMISSION PUBLIC HEARING STAFF REPORT TO: Lawson Bronson, Federal Way Planning Commission Chair FROM: Robert “Doc” Hansen, Planning Manager Chaney Skadsen, Associate Planner DATE: September 16, 2020 SUBJECT: Code Amendments to the FWRC I. FINANCIAL IMPACTS The proposed code amendments will have no financial impacts on the city budget. Completion of the amendments is contingent on staffing resources. II. INTRODUCTION The term “cottage housing” refers to small detached houses, on small lots built in clusters, usually grouped around shared common open spaces. Cottage housing developments are becoming an increasingly desired type of housing that tends to attract demographically different populations than traditional large lot single-family homes. The smaller households, fewer bedrooms, fewer cars, and communal amenities meet the needs of aging and young family populations seeking smaller and more manageable single-family type housing. Planning staff identified barriers to cottage housing and compact single-family development regulations in Title 19 of the Federal Way Revised Code (FWRC). The code currently recognizes that as many as 16 houses are feasible upon one site. While the current language limits the number of units in a cottage housing development to 12 units, and the fact that 16 units can be achieved with affordable conditions, demonstrates that as many as 16 houses are feasible upon the site. Brief review of other jurisdictions shows that many limit the number of units between 8 and 16 units. The requirement to have 2 units affordable in order to receive 16 units is often economically unachievable in meeting the maximum density allowed given the cost of building cottage housing. The proposed amendments are designed to promote higher density cottage housing and compact single-family developments, increase housing production, and meet the growing demand for diverse housing option in Federal Way. On June 17, 2020, discussions began and continued on September 2, 2020, at the Planning Commission meetings to introduce the amendment being proposed and allow the Planning Commission to provide direction. The proposal presented within Exhibit A is the result of those discussions and the focus of the hearing. Public Hearing Planning Commission Staff Report September 16, 2020 Cottage and Compact Single-Family Housing Amendments Page 2 of 8 Specifically, the amendments address: • Maximum base density of cottage and compact single-family housing development; • Removal of affordability standards; and • Removal of the limitation of the number of cottage housing demonstration projects allowed in the City of Federal Way III. PROPOSED AMENDMENTS It is proposed to amend FWRC Title 19 “Zoning and Development Code” Chapter 19.250, “Cottage and Compact Single-Family Housing” as follows: 1. Maximum Base Density, FWRC 19.250.030(1)(b) – Increase the allowed maximum base density of cottage housing development in Single-Family Residential (RS) zones by amending the FWRC to read: (b) CHDs shall contain clusters consisting of a minimum of 4 dwelling units and a maximum of 16 units. In RS 5.0 and 7.2 zones, a CHD may be integrated into a larger conventional subdivision. The maximum number of dwelling units is not limited in the RM zoning classifications. 2. Remove Affordability Standards, FWRC 19.250.150 – Remove the affordability condition for achieving increased maximum base density available to cottage housing developments in Single- Family Residential zone. 3. Edit Ordinance 08-580 – Eliminate the restriction of demonstration projects of cottage housing developments allowed in the City of Federal Way. IV. TIMELINE The anticipated timeline for completion of the code amendment process is as follows: *SEPA Threshold Determination 8/21/2020 *Notice of Planning Commission Public Hearing 8/28/2020 *Planning Commission Discussion 9/02/2020 Planning Commission Hearing 9/16/2020 SEPA Appeal Ends 9/25/2020 LUTC Review 10/5/2020 Council First Reading 10/20/2020 Council Second Reading 11/3/2020 *Actions which have already been accomplished. Public Hearing Planning Commission Staff Report September 16, 2020 Cottage and Compact Single-Family Housing Amendments Page 3 of 8 V. PUBLIC COMMENTS No public comments have been received regarding this proposal as of August 31, 2020. Any comments received since this time will be submitted into the record for City Council review. VI. REASON FOR PLANNING COMMISSION ACTION FWRC Title 19, “Zoning and Development Code,” Chapter 19.80, “Process VI Review,” establishes a process and criteria for development regulation amendments. Consistent with Process VI review, the role of the Planning Commission is as follows: 1. To review and evaluate the proposed development regulation amendments. 2. To determine whether the proposed development regulation amendment meets the criteria provided by FWRC 19.80.130 (item VII below). 3. To forward a recommendation to City Council regarding adoption of the proposed development regulation amendment. VII. DECISIONAL CRITERIA FWRC 19.80.130 provides criteria for development regulation amendments. The following section analyzes the compliance of the proposed amendments with the criteria provided by FWRC 19.80.130. 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 code amendment is consistent with the following goals and policies: Housing Element 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. HP20 – Periodically review and update development regulations to incorporate opportunities for new housing types. Land Use Element LUG3.1 – Provide a wide range of housing densities and types in the single-family designated areas. Public Hearing Planning Commission Staff Report September 16, 2020 Cottage and Compact Single-Family Housing Amendments Page 4 of 8 2. The proposed amendment bears a substantial relationship to public health, safety, or welfare. Staff Response – The proposed code amendment bears a substantial relationship to public welfare as it will promote housing choice in Federal Way. Increasing the maximum base density will encourage cottage housing developments and amplify the impact of such developments. Findings from ECONorthwest’s subregional housing analysis completed in July 2020, indicate that Federal Way needs about 6,786 new housing units by 2040. This includes an existing underproduction of 1,154 units in demand. Federal Way is experiencing a shortage of housing at all income levels. Permitting cottage housing developments at higher densities through removing the affordability requirement will lead to an increase in the supply of middle income housing options in Federal Way that otherwise may not be possible. 3. The proposed amendment is in the best interest of the residents of the city. Staff Response – The proposed code amendments are in the best interest of the city as a whole because they remove barriers to a new, innovative, land efficient form of housing. Permitting a higher maximum base density for this type of development will lead to greater production, further meeting a variety of demographic demands for this style of housing. The spectrum of housing needs varies by income level; for Federal Way, a bulk of its new units are needed at the 50%-80% AMI and the over 100% AMI affordability range (ECONorthwest Report). When desired housing options go unmet, households are forced to accept housing that sometime may be taking housing stock from lower-incomes. Allowing larger cottage style and compact single-family developments will address needs of some income ranges. PLANNING COMMISSION ACTION The Mayor recommends adopting the proposed ordinance Title 19 of the Federal Way Revised Code (FWRC) as shown in Exhibit A. Consistent with the provisions of FWRC 19.80.240, the Planning Commission may take the following actions regarding the proposed regulation amendments: 1. Recommend to City Council adoption of the FWRC text amendments as proposed; 2. Modify the proposed FWRC text amendments and recommend to City Council adoption of the FWRC text amendments as modified; 3. Recommend to City Council that the proposed FWRC text amendments not be adopted; or 4. Forward the proposed FWRC text amendments to City Council without a recommendation. Exhibit A: Proposed Code Amendments to FWRC Chapter 19.250 Exhibit B: Language of Ordinance 08-580 to be Nullified Public Hearing Planning Commission Staff Report September 16, 2020 Cottage and Compact Single-Family Housing Amendments Page 5 of 8 EXHIBIT A Proposed Amendment Chapter 19.250 COTTAGE AND COMPACT SINGLE-FAMILY HOUSING Sections: 19.250.010 Purpose. 19.250.020 Applicability. 19.250.030 Development standards – Cottage housing development size. 19.250.040 Locational criteria. 19.250.050 Calculation of cottage and compact single-family units. 19.250.060 Cottage and compact single-family unit size. 19.250.070 Common open space. 19.250.080 Private open space. 19.250.090 Site design. 19.250.100 Design standards. 19.250.110 Parking. 19.250.120 Height. 19.250.130 Setbacks and building separation. 19.250.140 Lot coverage. 19.250.150 Affordable housing bonus in RS zoning classifications. 19.250.160 Common area maintenance. 19.250.170 General provisions. 19.250.180 Modifications. 19.250.030 Development standards – Cottage housing development size. CHDs shall be subject to the following development standards in FWRC 19.250.030 through 19.250.170. (1) Cottage housing development size. (a) CHDs are not permitted on sites less than .75 acres in size (a site may be composed of more than one contiguous lot). (b) CHDs shall contain clusters consisting of a minimum of four dwelling units and a maximum of 16 units. In RS 5.0 and 7.2 zones, no more than 12 dwelling units are permitted in a CHD, unless additional dwelling units are permitted subject to FWRC 19.250.150. A CHD may be integrated into a larger conventional subdivision. Maximum number of dwelling units is not limited in the RM zoning classifications. (Ord. No. 06-533, § 5(Exh. A), 9-19-06. Code 2001 § 22-923(1).) Public Hearing Planning Commission Staff Report September 16, 2020 Cottage and Compact Single-Family Housing Amendments Page 6 of 8 19.250.150 Affordable housing bonus in RS zoning classifications. In the RS zones, CHDs that include affordable units may exceed the base level of 12 dwelling units up to a total of 16 dwelling units (assuming adequate overall lot size). One-half of all dwelling units over the base level of 12 must be affordable (for example, a total of four additional dwelling units may be permitted if two of these are affordable). (1) Affordable cottages shall be sold at a price which is affordable for a two-person household with an annual income equal to or less than 80 percent of median income. Affordable CSF units shall be sold at a price which is affordable to a three-person household with an annual income equal to or less than 80 percent of median income. The director of community development shall prepare administrative guidelines for calculation of sale price and determination of income eligibility. (2) Affordable dwelling units shall have the same appearance and utilize the same exterior materials as market rate dwelling units and shall be dispersed throughout the CHD. (3) A deed, covenant or title restriction shall be recorded on the deed/title of affordable dwelling units. The restriction shall effectively maintain the units as affordable for a period of not less than 15 years from initial occupancy. The restriction shall be in a form acceptable to the director of community development. (Ord. No. 06-533, § 5(Exh. A), 9-19-06. Code 2001 § 22-923(13).) Public Hearing Planning Commission Staff Report September 16, 2020 Cottage and Compact Single-Family Housing Amendments Page 7 of 8 EXHIBIT B Language of Ordinance 08-580 to be Nullified This amendment will nullify the following language in sections 1 and 2 from Ordinance 08-580. Section 1. Section 3 of Ordinance No. 06-533 shall be amended to read as follows: Demonstration Proj ects. The City Council has determined that it is in the public’s interest to allow only a limited number of cottage housing developments as demonstration projects. The city shall limit the number of cottage housing demonstration projects to a maximum of two-three. Demonstration projects will be selected, at the Director of Community Development’s discretion, using the selection guidelines detailed below in section 4. After the second third demonstration project has been approved and at least 50 percent of the dwelling units constructed and approved for occupancy by the city building division, the code amendments adopted in Section 5 below may remain in place with no demonstration project requirement. If, however, Council determines, based on evaluation of the demonstration projects, that the code amendments are not in the public’s best interest, Council may amend or repeal the cottage housing code provisions. Section 2. Section 4 of Ordinance 06-533 shall be amended to read as follows: Selection Criteria. The City shall use a competitive selection process to determine which cottage housing developments shall move forward through the permitting process. The City may approve up to two three cottage housing developments pursuant to this ordinance. Applications for cottage housing developments shall be submitted and docketed on a schedule determined by the Director of Community Development. Applicants shall hold a community meeting to gather input and suggestions from the neighborhood. Mailed notice shall be provided to property owners within 300 feet of the subject property. City staff shall attend the meeting. Applicants shall then have an opportunity to consider comments received and, if appropriate, modify their proposal in response to Public Hearing Planning Commission Staff Report September 16, 2020 Cottage and Compact Single-Family Housing Amendments Page 8 of 8 neighborhood concerns. The Director of Community Development shall have the discretion to determine which applications, if any, will be selected to be submitted as formal applications based on the code, input from the community meeting and the following criteria: a) Consistency with the purpose of the article as specified in the purpose section of the code. b) Demonstration that the project has been designed with sensitivity to adjacent properties and that impacts with regard to parking, building height, building bulk, lot coverage, setbacks, screening, open space and aesthetics associated with the proposed project are substantially equivalent to impacts expected to be associated with development of conventional housing on the subject property. c) Demonstration that the project will result in a highly attractive environment, which incorporates a high level of quality throughout the development, including but not limited to the following areas: 1. Architectural design 2. Building materials 3. Open space 4. Parking The Director may limit the project’ s density to less than twice the number of conventional single- family dwelling units that would otherwise be permitted, but not less than 1.75 the number of conventional single-family dwelling units, if necessary to ensure compatibility with surrounding development. The Director may select, select with modifications or deny an application. The decision by the Director of Community Development selecting cottage housing developments to advance to the formal submittal phase shall be in writing and shall be the final decision of the city.