Final_Chapter_5CHAPTER FIVE
HOUSING
5.0 INTRODUCTION ___________________________________________ 1
5.1 POLICY BACKGROUND ____________________________________ 2
Growth Management Act (GMA) _________________________________ 3
VISION 2040 ___________________________________________________ 3
Countywide Planning Policies (CWPPs) ___________________________ 3
5.2 FEDERAL WAY AND ITS HOUSING __________________________ 4
Household and Population Trends _______________________________ 4
Household Size ________________________________________________ 6
Special Needs Populations _______________________________________ 7
Employment ___________________________________________________ 8
Housing Stock and its Condition _________________________________ 8
Subsidized Housing ____________________________________________ 9
Housing Condition ____________________________________________ 10
Housing Cost and Affordability _________________________________ 10
Ownership Housing ___________________________________________ 12
Affordability of Ownership Housing ____________________________ 12
Future Housing Growth ________________________________________ 13
Housing Targets _______________________________________________ 13
Housing Capacity ______________________________________________ 13
Meeting the Need for Housing __________________________________ 14
5.3 KEY HOUSING ISSUES ____________________________________ 15
Preserving Neighborhood Character _____________________________ 15
Zoning and Development Regulations ___________________________ 15
Affordable and Special Needs Housing Strategies _________________ 16
Development Review __________________________________________ 16
Citizen Participation ___________________________________________ 17
Policy Coordination and Regional Participation ___________________ 17
5.4 HOUSING CHAPTER GOALS AND POLICIES ________________ 17
Preserving Neighborhood Character _____________________________ 18
Community Involvement and Development Review _______________ 18
Good Design and Diversifying Housing Choice ___________________ 19
Housing Affordability _________________________________________ 20
Special Needs Housing _________________________________________ 22
Regional Participation _________________________________________ 22
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5.0 INTRODUCTION
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. The plan does this by preserving and enhancing 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 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.
Demographic trends indicate a shift in future market demand towards smaller housing
units, rental housing units, and mixed-use housing in a lively, amenity-rich environment.
The City must adapt to these market trends and preferences to be successful.
Currently, almost 60 percent of Federal Way households are one or two-person
households. That percentage is expected to increase due to factors such as declining birth
rates, later childbirth, lower marriage rates, increasing number of empty nesters, longer
lifespans, etc. Additionally, the percentage of the population represented by seniors has
increased dramatically over the last ten years and is expected to continue in that direction.
Senior households also tend to be one or two person households. This tells us that demand
will likely be increasing for smaller housing units as opposed to large, suburban style
single-family houses. The cost of housing is increasingly becoming a barrier to the
traditional model of single-family home ownership. This factor will also dictate smaller
home sizes as well as rental housing demand. In the next 30 years, the age cohort from 35
to 64 (the bracket traditionally seeking the most housing space) will be cut in half as a
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percentage of total household growth. One counter trend that may be occurring is an
increase in the immigrant population, which tends to have larger families. These families
may be seeking larger, single-family homes to accommodate multi-generational families.
Even if this trend continues, it is likely that we already have a large enough supply of
single-family homes (and potentially an over-supply if a significant portion of baby
boomers choose to relocate to senior housing, small houses, and apartments rather than
age in place).
In order to address these trends, the City of Federal Way should allow a wide variety of
housing types. The City should zone adequate land for senior housing and facilitate
development of accessory dwelling units. The City should consider allowing smaller lot
and home sizes to accommodate young first-time homebuyer families and seniors
interested in down-sizing, but staying in their own home. The City should be developing
dynamic, walkable, mixed-use neighborhoods with shopping, dining, entertainment
venues, and multi-story apartment and condominium housing. This type of product is
appealing to young people as well as a portion of the senior market. Demand for housing
in urban style, walkable communities has continued to increase along with housing prices
in such environments. One way to think of this is if the City desires our Y-generation
kids who grew up in great Federal Way suburban neighborhoods to stay in town, we need
to start building walkable urban neighborhoods that appeal to them. Providing desirable
housing and amenity rich environments also support development of well-paying jobs.
Companies make location decisions, in part, based on ease of employee recruitment and
retention. The quality and desirability of housing options is a big factor in attracting and
retaining good employees.
While the City does not control private sector investment, which is necessary for the
development of quality housing and neighborhoods, the City should take the steps within
its power to facilitate development of the types of housing that will create the best
opportunity for success. Steps that can be taken (and in most cases already have) include
creation of development regulations that allow these types of products, establishment of
incentives for certain development types, evaluation of current codes for barriers to
certain housing types, and creation of public-private partnerships.
No one can predict the future. If the City fails to adapt to these trends, the City may see
the following consequences: loss of key demographic groups to cities that do adapt;
potential declining home values due to an over-supply of large-lot single-family homes;
decrease in median income as lower income families relocate to suburban environments
and higher income families re-locate to desired mixed-use environments; loss of existing
quality employers; and lack of ability to attract quality employers. If the City does adapt,
it will be in a position to achieve the opposite result. The goals and policies of the
Housing chapter are intended to, among other things; guide us to success in adapting our
housing options to meet future demand.
5.1 POLICY BACKGROUND
The Growth Management Act (GMA), VISION 2040, and the King County Countywide
Planning Policies (CWPPs) provide a framework for all jurisdictions to plan for and
promote a range of affordable, accessible, and healthy housing choices for current and
future residents.
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Growth Management Act (GMA)
RCW 36.70A.020, Planning Goals of the GMA requires cities to ”Encourage the availability
of affordable housing to all economic segments of the population, promote a variety of
residential densities and housing types, and encourage preservation of existing housing
stock.” The GMA discourages “…conversion of undeveloped land into sprawling, low-
density development”. The GMA requires that the Housing chapter include:
An inventory and analysis of existing and projected housing needs that identifies
the number of housing units necessary to manage projected growth.
A statement of goals and policies for housing preservation, improvement, and
development of housing.
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.
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.
VISION 2040
VISION 2040 contains multi-county planning policies (MPPs) that provide a policy
framework and numeric guidance for local growth management planning and target
setting. Countywide Planning Policies (CWPPS) and local comprehensive plans must be
consistent with the MPPs. The Regional Growth Policy in VISION 2040 calls for growth
focused in Metropolitan and Core Cities, such as Federal Way, particularly within
designated Centers, and aims to improve the jobs-housing balance throughout the region.
The overarching goal of VISION 2040 is for the region to preserve, improve, and expand
its housing stock to provide a range of affordable, healthy, and safe housing choices to
every resident, with fair and equal access to housing for all people.
Countywide Planning Policies (CWPPs)
The CWPPs must be consistent with both GMA and VISION 2040. The overarching goal
of the CWPPs is that the housing needs of all economic and demographic groups are met
within all jurisdictions. In order to do so, they require that jurisdictions do the following
regarding housing:
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Address the need for housing affordable to households with moderate, low, and
very-low incomes, including those with special needs. The countywide need for
housing by percentage of Area Median Income (AMI) is:
50-80% of AMI (moderate) 16%of total housing supply
30-50% of AMI (low) 12%of total housing supply
30% and below AMI (very-low) 12% of total housing supply
Address the need for housing affordable to households at less than 30% AMI
(very-low income), recognizing that this is where the greatest need exists, and
addressing this need will require funding, policies, and collaborative actions by
all jurisdictions working individually and collectively.
Work with other jurisdictions to meet countywide housing targets and affordable
housing needs.
Conduct an inventory and analysis of existing and projected housing needs of all
economic and demographic segments of the population.
Provide zoning capacity for a range of housing types and densities, sufficient to
accommodate adopted housing targets.
Plan for affordable housing that is accessible to major employment centers.
The CWPPs 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 CWPPs 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.
Household and Population Trends
Federal Way’s population growth has slowed down since the 1980s, when its population
doubled. According to the U.S. Census, from 1990 to 2000, Federal Way grew
approximately 23 percent. This was greater than King County’s growth rate of 15 percent,
but less than some of its neighboring cities. Between 2000 and 2010, Federal Way’s
growth slowed dramatically to 7.3 percent, as opposed to King County at 11.2 percent.
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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. Based on the 2010 Census,
Federal Way’s citizens are relatively young. Over half of its population is under 34 years
of age; almost 30 percent of this group is under 19 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. Residents between the ages of 25 and 35
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 owned and rented, 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 households, regardless of age.
Seniors (55 and over) make up 22 percent of Federal Way residents, up from 15 percent
in 2000. Likewise, in King County, the senior population grew from 19 percent in 2000
to 23 percent in 2010. Countywide, both the number of elderly and its proportion of the
senior population is expected to increase even more dramatically by 2025 as the baby
boomer generation ages.
Figure V-I
Source: 2010 U. S. Census
0
5000
10000
15000
20000
25000
30000
< 5 5-19 20-24 25-34 35-54 55-64 65-74 75-84 > 85
Federal Way's Population by Age
Age
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Household Income
Understanding the distribution of Federal Way’s household income is 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 2011-2013 American Community Survey (ACS) 3-Year Estimates,
Federal Way’s median household income was $53,131, which is less than King County’s
median of $70,998. It ranks fourth of the seven South King County cities surveyed.1
Federal Way’s income groups are distributed in approximately a 50:50 split, with
approximately 50 percent of residents with middle and greater incomes and 50 percent
with moderate and lesser incomes.
Source: 2011-2013 American Community Survey (ACS) 3-Year Estimates
Household Size
The 2011-2013 ACS shows that at 2.7 persons per household, Federal Way has a larger
average household size than King County, whose average household size is 2.4. Federal
Way has a greater household size than Auburn, Des Moines, and Renton, but a smaller
household size than Kent and SeaTac and the same average size as Burien. 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
1 The South King County cities used in this comparison are Auburn, Burien, Des Moines, Kent, Federal Way,
Renton, and SeaTac.
Middle and
Upper
50% Moderate
18%
Low
12%
Very Low
20%
Figure V-2
Households By Income Level
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household size is its large percentage (68 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
Source: 2011-2013 American Community Survey (ACS) 3-Year Estimates
Overcrowding
According to the 2011-2013 ACS 3-Year Estimates, five percent of Federal Way’s
housing is overcrowded. Overcrowding, defined by the U.S. Department of Housing and
Development (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, although the South King County cities
of Kent and SeaTac 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
Special needs populations are composed of individuals with physical and mental
disabilities, seniors, veterans, individuals with mental illness, individuals with chronic and
acute medical conditions, individuals with chemical dependency, survivors of domestic
violence, and adult, youth, and families who are homeless. The private market, for the most
part, does not meet the housing and service needs of these groups, especially if they are
low-income. The need for housing and services is independent of a person’s income; it is
experienced due to a crisis or disabling condition. However, 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 for developmentally disabled adults and
1 Person
24%
2 People
34%
3 People
17%
4 People
13%
5+ People
12%
Distribution of Households by Size in Federal
Way, 2010
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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.
Employment
Federal Way is more a source for workers than a place to work. Based on the Puget Sound
Regional Council (PSE) Covered Employment Estimates, there were 29,586 jobs in
Federal Way in 2013. This is not enough to employ Federal Way’s approximately 72,443
potential workers aged 16 or older. However, based on the 2011-2013 ACS 3-Year
Estimates, only 47,586 of the 72,443 potential workers are actually in the labor force.
A jobs/housing balance is another way to measure if a city is considered a bedroom
community or an employment center. A low jobs/housing ratio indicates a housing-rich
“bedroom community,” while a high jobs/housing ratio indicates an employment center.
In 2013, Federal Way had a jobs/housing ratio of 0.83, compared to 1.51 for King
County and 1.15 for the four-county Central Puget Sound region. This low ratio of jobs
to housing is why Federal Way is considered a bedroom community. Approximately 70
percent of those 29,586 jobs were in the retail and service sector. Jobs in government and
education accounted for the next highest percentage, at almost 13 percent.
At 15 percent, Federal Way’s proportion of retail jobs is equivalent to Tukwila’s and is
higher than King County’s proportion of 10 percent. 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 (Refer to Tables IV-
1 and IV-2 in Chapter 4, Economic Development).
Housing Stock and its Condition
According to the April 1, 2014, Washington State Office of Financial Management
(OFM) estimates, there were 35,626 housing units in Federal Way. Of this total, 20,044
were single family, 14,277 were multi-family, and 1,305 were mobile homes or trailers.
The majority of Federal Way’s housing is fairly homogenous. The housing primarily
consists of single-family detached units, constructed in the seventies and eighties. In
2014, there were eight mobile home parks with over 1,100 homes. There were also 332
duplexes, with the rest of the multi-family housing stock being two and three story
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apartment buildings. 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 and that
likely will be needed in the future.
Figure V-4
Source: Washington State Office of Financial Management, April 2014
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 desires, or they may not be able to afford the available housing.
Subsidized Housing
Included in Federal Way’s 35,626 housing units, is a limited amount of subsidized
housing. In 2014, there were 442 King County Housing Authority (KCHA) Public
Housing units and approximately 1,512 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
Federal Way using KCHA Section 8 vouchers. A household with a Section 8 voucher can
live anywhere in the county. The tenant pays 28 to 40 percent of their income toward the
rent and KCHA pays the remainder—up to a certain limit.
The demand for both subsidized housing and vouchers far out strips the supply. The
Section 8 waiting list is closed to new households and it is not expected to open for the
foreseeable future.
Mobile Homes
4%
Single Family
56%
Multifamily
40%
Federal Way's Housing Stock
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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. 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. With regard to
ownership, an affordable housing payment (principle and interest) is calculated at 23
percent of monthly income. Taxes, utilities, and/or condominium and homeowner
association fees are estimated at 7 to 10 percent. Affordable rent is calculated at 30
percent of monthly income, assuming that utilities are included. 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 HUD, any
household spending more than 30 percent of household income on housing income is cost
burdened. Extremely cost burdened households are defined as households that pay more
than 50 percent of income on housing. The concept of cost-burden applies both to renter
and owner households. Based on HUD’s Comprehensive Housing Affordability Strategy
(CHAS) data, which is based on 2007-2011 ACS 5-Year Estimates, approximately 22
percent of homeowners in Federal Way are cost burdened, and approximately 15 percent
of homeowners are extremely cost burdened. For renters, approximately 24 percent are
cost burdened and 29 percent are extremely cost burdened.
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Table V-I
2014 Income Levels and Affordable Housing Costs by Household Size
Percent of Median Income
One Person
Household
Two Person
Household
Average
Household*
Three Person
Household
Four Person
Household
Five Person
Household
Six Person
Household
30% $18,550 $21,200 $22,260 $23,850 $26,450 $28,600 $30,700
Affordable Housing Payment $433 $495 $519 $557 $617 $667 $716
Affordable Rent $464 $530 $557 $596 $661 $715 $768
Affordable Home Price $94,900 $108,500 $113,900 $122,000 $135,300 $146,300 $157,100
40% $24,720 $28,240 $29,648 $31,760 $35,280 $38,120 $40,960
Affordable Housing Payment $577 $659 $692 $741 $823 $889 $956
Affordable Rent $618 $706 $741 $794 $882 $953 $1,024
Affordable Home Price $126,500 $144,500 $151,700 $162,500 $180,500 $195,100 $209,600
50% $30,900 $35,300 $37,060 $39,700 $44,100 $47,650 $51,200
Affordable Housing Payment $721 $824 $865 $926 $1,029 $1,112 $1,195
Affordable Rent $773 $883 $927 $993 $1,103 $1,191 $1,280
Affordable Home Price $158,100 $180,600 $189,600 $203,100 $225,600 $243,800 $262,000
60% $37,080 $42,360 $44,472 $47,640 $52,920 $57,180 $61,440
Affordable Housing Payment $865 $988 $1,038 $1,112 $1,235 $1,334 $1,434
Affordable Rent $927 $1,059 $1,112 $1,191 $1,323 $1,430 $1,536
Affordable Home Price $189,700 $216,700 $227,600 $243,800 $270,800 $292,600 $314,400
70% $43,260 $49,420 $51,884 $55,580 $61,740 $66,710 $71,680
Affordable Housing Payment $1,009 $1,153 $1,211 $1,297 $1,441 $1,557 $1,673
Affordable Rent $1,082 $1,236 $1,297 $1,390 $1,544 $1,668 $1,792
Affordable Home Price $221,400 $252,900 $265,500 $284,400 $315,900 $341,300 $366,800
80% $49,440 $56,480 $59,296 $63,520 $70,550 $76,200 $81,850
Affordable Housing Payment $1,154 $1,318 $1,384 $1,482 $1,646 $1,778 $1,910
Affordable Rent $1,236 $1,412 $1,482 $1,588 $1,764 $1,905 $2,046
Affordable Home Price $253,000 $289,000 $303,400 $325,000 $361,000 $389,900 $418,800
90% $55,620 $63,540 $66,708 $71,460 $79,380 $85,770 $92,160
Affordable Housing Payment $1,298 $1,483 $1,557 $1,667 $1,852 $2,001 $2,150
Affordable Rent $1,391 $1,589 $1,668 $1,787 $1,985 $2,144 $2,304
Affordable Home Price $284,600 $325,100 $341,300 $365,600 $406,200 $438,900 $471,600
100% $61,800 $70,600 $74,120 $79,400 $88,200 $95,300 $102,400
Affordable Housing Payment $1,442 $1,647 $1,729 $1,853 $2,058 $2,224 $2,389
Affordable Rent $1,545 $1,765 $1,853 $1,985 $2,205 $2,383 $2,560
Affordable Home Price $316,200 $361,200 $379,300 $406,300 $451,300 $487,600 $524,000
*The average King County household is about 2.4 persons Costs are based on 35% of monthly income. An affordable housing payment (principle and interest only) is calculated at 23% of monthly income. Taxes, utilities, and/or condo or homeowner fees are estimated to account for an additional 7%, but could be as much as 10%. Affordable rent is calculated at 30% of monthly income assuming the inclusion of utilities in this amount.
This chart calculates affordable mortgage payment based on 10% down payment and fixed interest of 4.5%
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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 2014 was
$250,000, an increase of 6.8 percent since 2003. However, the average price of a new
single family house increased by 33.5 percent between 2003 and 2014 and the average
price of a condominium decreased by 20.6 percent from $120,958 in 2003 to $96,000 in
2014.
Table V-2
2014 Housing Sales Prices in Federal Way
Price 2003 2014 % Change 2003-2014
Average Single Family Price $233,980 $250,000 6.8%
Average New Single Family Price $286,247 $382,000 33.5%
Average Condominium Price $120,958 $96,000 -20.6%
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 2014, the average price of a home in King County
was $423,000, approximately $189,020 more than in Federal Way. As the table below
shows, in 2014, the average priced single-family house was affordable to households at
or over 60 percent of median income, while a three or four person household at 30
percent of median or above could afford an average priced condominium in Federal Way.
Table V-3
Affordability of Home Purchase in Federal Way, 2014
Income Required for
Average-Priced Single
Family Home
Income Required for
Average-Priced New
Single Family Home
Income Required for
Average-Priced
Condominium
1 Person
Household
80% of Median 80% of Median 40% of Median
2 Person
Household
70% of Median 70% of Median 30% of Median
3 Person
Household
60% of Median 70% of Median 30% of Median
4 Person
Household 60% of Median 60% of Median 30% of Median
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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. Additionally, as seen in the mid-2000s housing crash, the private
market tends to overbuild at times, resulting in a cyclic boom/bust pattern.
Housing Targets
In 2012, the Growth Management Planning Council (GMPC) adopted targets for new
households and jobs for the period of 2006-2031. These targets were based on a
methodology developed by the King County Planning Directors. The adopted 2006-2031
housing target for Federal Way is 8,100 new residential units.
The CWPPs adopted countywide targets for affordable housing as follows:
16% of total housing supply should be available for moderate income
households (50-80% of Area Median Income [AMI])
12% of total housing supply should be available for low income
households (30-50% of AMI)
12% of total housing supply should be available for very low income
households (30% and below AMI)
The intent of the affordable housing targets is that affordable housing be equitably
distributed across jurisdictions and applies to both existing and new housing.
Based on the 2006-2010 ACS 5-year estimates, as shown in Table V-4, Federal Way
exceeded the affordable housing targets for moderate and low income rentals, but had a
shortage of about six percent for very low-income rentals. For owner-occupied units,
there were more units affordable for moderate income households, but not enough for
low-income and very low-income households, as you would expect. The number of units
affordable for very low-income households was negligible, and therefore, was not broken
out in the table.
Housing Capacity
Federal Way currently has a capacity for 8,443 new residential units, including 2,412
detached single-family homes and 6,030 multiple-family units. The capacity for 4,880 of
those multifamily units is located in mixed-use development zones. Given the 8,100
housing unit targets above, Federal Way, has an excess capacity of 343 housing units.
FWCC – Chapter Five, Housing
Revised 2015 V-14
Meeting the Need for Housing
In addition to ensuring that there is 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, and
senior apartments.
The City should plan to accommodate housing based on demographic trends, specifically
smaller housing sizes, and mixed-use housing with entertainment venues in close
proximity.
Table V-4
Affordable Housing and Targets
Income Levels Need Have
Rental Number % of 14,121 Renter
Occupied Units
51-80% of AMI (Moderate) 16% of Total Housing Supply 6,275 44.4
31-50% of AMI (Low) 12% of Total Housing Supply 4,430 31.4
30% and below AMI (Very Low) 12% of Total Housing Supply 846 6
Total Renter Occupied Housing Units 14,121
Owner-Occupied Need Have
Number % of 20,111 Owner
Occupied Units
51-80% of AMI (Moderate) 16% of Total Housing Supply 5,721 28.4
50% and below AMI (Low & Very
Low) 24% of Total Housing Supply2 2,796 13.9
Total Owner Occupied Housing Units 20,111 Total Occupied Housing Units 34,232 Total Housing Units 35,927 Renter- & Owner-Occupied Units Need Have
Number % of 34,232
Occupied Units
51-80% of AMI (Moderate) 16% of Total Housing Supply 11,996 35
50% and below of AMI (Low and Very
Low) 24% of Total Housing Supply 8,072 23.6
Source: 2006-2010 American Community Survey (ACS) 5-Year Estimates
2 The City recognizes that homeownership may not be possible for many households in this income category.
Most affordable housing for households within this income category will be provided through rental housing.
FWCC – Chapter Five, Housing
Revised 2015 V-15
5.3 KEY HOUSING ISSUES
Preserving Neighborhood Character
Preserving existing neighborhoods 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.
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.
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, mid-rise residential
buildings, and high-rise buildings in the City Center, 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.
FWCC – Chapter Five, Housing
Revised 2015 V-16
Affordable and Special Needs Housing Strategies
One way that Federal Way can encourage special needs and affordable housing is by
ensuring an adequate amount of land zoned to facilitate affordable housing, allowing
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.
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.
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.
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. 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.
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.
FWCC – Chapter Five, Housing
Revised 2015 V-17
The City offers a preapplication conference 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.
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
in developing policies, such as those in the FWCP. 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.
Policy Coordination and Regional Participation
The City 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.
5.4 HOUSING CHAPTER GOALS AND POLICIES
The following section establishes goals and policies for providing, preserving, and
enhancing 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: provide housing options that improve quality of life; attract new residents;
provide new options for existing residents; and improve the desirability of Federal Way
as a place to live. 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, protect, and enhance 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.
FWCC – Chapter Five, Housing
Revised 2015 V-18
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 are permitted.
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.
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.
FWCC – Chapter Five, Housing
Revised 2015 V-19
HP8 Consider the economic impact of all development regulations on the cost of
housing.
HP9 Continue to provide streamlined permitting processes for development that is
consistent with the FWCP and FWRC, and that has minimum 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
Goals
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.
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 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 minimize impacts on surrounding development.
HP14 Review zoning, subdivision, and development regulations to ensure that they
further housing policies, facilitate infill development and don’t create
unintended barriers.
HP15 As appropriate, reduce minimum lot sizes to allow construction of smaller,
detached single-family houses on smaller lots.
HP16 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, and transfer of development rights, cluster housing,
cottage housing, garden housing, duplexes, and low to moderate density
housing types.
FWCC – Chapter Five, Housing
Revised 2015 V-20
HP17 Continue to permit commercial/residential mixed-use development in
designated commercial areas throughout the City. Develop incentive programs
to ensure an adequate amount of housing is developed in these areas.
HP18 Continue to pursue public-private partnerships to develop mixed-use, walkable
neighborhoods in close proximity to transit.
HP19 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.
HP20 Periodically review and update development regulations to incorporate
opportunities for new housing types.
Housing Affordability
Goals
HG5 Develop a range of affordable housing opportunities for low-income
households consistent with the CWPPs and the needs of the community.
HG6 Encourage development of mixed-income projects and communities.
Policies
HP21 Promote fair housing access to all persons without discrimination.
HP22 As required by the CWPPs, maintain sufficient land supply and adequate
zoning within the City to accommodate those types of housing consistent with
the City’s affordable housing targets.
HP23 Continue to 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.
HP24 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.
HP25 To the extent possible, 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.
HP26 Continue to allow 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.
FWCC – Chapter Five, Housing
Revised 2015 V-21
HP27 In order to maintain existing affordable housing, the City should continue to
allow manufactured home parks in existing locations.
HP28 In order to maintain existing affordable housing, continue to enhance programs
that support and finance rehabilitation, energy efficiency, and weatherization of
existing housing stock. Advocate for state and federal funding to support these
programs.
HP29 Encourage development of mixed income projects in appropriately zoned areas.
HP30 Explore federal, state, and local resources to assist in financing affordable
rental and ownership housing. Advocate for increased resources for the State
Housing Trust Fund. Encourage expansion of home ownership options through
such means as first time home buyer programs, housing cooperatives, lease-
purchase ownership, and other housing models.
HP31 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.
HP32 Consider options for locally financing affordable housing such as creating a
rehabilitation or land acquisition loan fund to support creation of healthy
affordable housing.
HP33 Support nonprofit affordable housing organizations during all stages of siting,
project planning and permitting.
HP34 Support tax law amendments that provide relief to owners of affordable and
special needs housing.
HP35 Advocate for tax law reform that encourages even and proportionate
distribution of affordable housing on a countywide basis.
HP36 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.
HP37 Periodically 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.
HP38 Integrate and coordinate construction of public infrastructure with private
development to minimize housing costs wherever possible or practicable.
FWCC – Chapter Five, Housing
Revised 2015 V-22
Special Needs Housing
Goal
HG7 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 physical and/or developmental disabilities.
Policies
HP39 Periodically review the FWRC and remove any regulatory barriers to locating
special needs housing and emergency and transitional housing within 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.
HP40 Review permit applications for special needs housing in close coordination
with service providers and the City’s Community Services Division.
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
HG8 Develop emergency shelter and transitional housing facilities for the homeless.
Policies
HP43 Coordinate City actions related to homelessness with the City’s Community
Services Division and non-profit housing and human services providers.
HP44 Emergency shelters should be permitted and regulated to ensure there are
adequate opportunities to locate them within the City, to avoid over-
concentration of facilities, to ensure that such facilities and housing are
properly managed, and to avoid or mitigate significant impacts on existing
residential neighborhoods or other surrounding uses.
Regional Participation
Goals
HG9 Coordinate and integrate the City’s housing programs with regional housing
efforts and with local housing and service providers.
HG10 Work with other King County jurisdictions to ensure that affordable housing is
equitably distributed across jurisdictions and not concentrated in less affluent
cities and communities.
FWCC – Chapter Five, Housing
Revised 2015 V-23
Policies
HP45 Policies and regulations related to affordable housing should be consistent with
the CWPPs and multi-county policies.
HP46 Establish effective links with King County and other area cities to assess need
and create housing opportunities for low-income and special needs households,
and develop housing programs that address issues common throughout the
region.
HP47 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.
HP48 Ensure equitable and rational distribution of affordable housing throughout the
region that is compatible with land use, transportation, and employment
locations.