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10-20-2020 Cottage & Compact Single Family AmendCottage and Compact Single-Family Amendments Presentation to City Council October 20, 2020 1 •22 Intent Planning division received application for code amendment 2019 from cottage housing demonstration project developer. Staff further investigated and identified barriers to Cottage and Compact Single-Family housing in Title 19 of the Federal Way Revised Code (FWRC). Improve regulations to promote Cottage Style and Compact Single Family housing development. Enable Remove Barriers Incentivize –Housing Action Plan Approach to Missing Middle Increase maximum project size in SF zones from 12 units to 16 units. Remove affordability requirement. Remove of the limitation from demonstration project requirements in the City of Federal Way. Proposed Amendment Visualizing 16 units Marysville –no affordability requirement Port Townsend –no affordability requirement Mukilteo -no affordability requirement Kirkland -Projects over 10 units, 1 affordable units 100% King County Median Income Projects over 20 units, 2 affordable units 100% King County Median Income Affordability for Cottage Housing Mirror Lake Example Considering Zones Financial Feasibility Chapter 19.250 Overview Type Allowed Square Footage AMI requirement Cottage Style 800 -1,100 80% for family of 2 Compact Single Family 1,100 –1,300 80%for family of 3 HUD income levels –dependent on family size Calculating Affordability 1 Person Household 2 Person Household 3 Person Household 80% AMI $66,700 $76,200 $85,750 Affordable Hsg Payment $1,112 $1,270 $1,429 Affordable Rent $1,668 $1,905 $2,144 Affordable House Price $295,305 $337,365 $379,647 Interest rate (9/10/20)0.0286 down payment (%)0.1 Will the developers consider building four more units when two must be sold at maximum 80% AMI? $379,647 for a family of 3 $337,365 for a family of 2 Affordability Prices Median list price per square foot in Federal Way is $216 (Zillow), regional estimates point closer to $285 Minimum Compact Single Family size 1,100sqft and Cottage house size 800sqft Cost of $275,000 or $200,000 respective of size to build excluding land, infrastructure, utilities, impact fees and permitting, Cost of Cottage Housing Developments $0 $100,000 $200,000 $300,000 $400,000 Cottage Cost Cottage Sale CSF Cost CSF Sale Uneconomical ECONorthwest’s Subregional Housing Analysis Increased Production Remove the affordability condition for achieving 16 units developments in Single Family Residential zone. The proposed amendment will promote needed missing middle housing development The Housing Action Plan will recommend effective affordable housing incentives and/or enhance those already working Cottage Housing and the Housing Action Plan Enable Remove Barriers Incentivize –Housing Action Plan Missing Middle Questions? 24