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7.12.21 LUTC PresentationDraft Housing Action Plan Land Use & Transportation Committee July 12, 2021 By Chaney Skadsen, Associate Planner Draft Housing Action Plan LUTC 7/12/2021 Good evening, Planning Commission, I’m Chaney Skadsen, Associate Planner and Housing Action Plan project manager for the city. 1 Policy Question Does the LUTC recommend adoption of the Draft Housing Action Plan? Draft Housing Action Plan LUTC 7/12/2021 Financial Impact There is no financial obligation to the City in presenting this information. In 2019 The City of Federal Way received a $100,000 grant from the Washington State Department of Commerce to prepare a Housing Action Plan (HAP). 2 Housing Action Plan (HAP) Background Draft Housing Action Plan LUTC 7/12/2021 The objective of the City of Federal Way’s HAP document is to lay out the housing policy direction for the city towards the goal of increasing residential capacity to meet existing need and plan for the future. The adoption of the HAP will not result in code changes, instead it sets up a priority schedule for future efforts that will require more community input. Over a year into the process: The HNA findings Key Findings Nearly 40% of all households in Federal Way are cost-burdened (over 13,000 households in total) spending more than 30% of their income on housing. The cost burden is most common among both owner and renter households with incomes below 50% AMI and disproportionately impact Black, indigenous, and persons of color (BIPOC) households. Housing production has not kept up with demand. In the last 10 years, 5.3 units for every 10 households formed – lower than Subregion cities The existing housing stock doesn’t align with community profile, by size, type, preference and cost. Housing options are limited and becoming more expensive pushing homeownership out of reach Stakeholder Engagement On going efforts to ensure that the plan reflects community needs and concerns Industry specific interviews, Communitywide survey, public frequently updated website, E-Newsletter for Interested Parties list, Advisory Group, public meetings etc Diversity, walkability, duplexes, triplexes, and townhouses were preferred Housing Policy Code, and Permitting Review Identified opportunities for code specific implementation Toolbox for future code amendments Objectives & Strategies Guiding the processes Based on qualitative and quantitative information from earlier mentioned efforts Presented at special session, PC twice Implementation Matrix & Priority Schedule The how to guide for using the HAP Iterative process identifying opportunities for collaboration within department and outside the city 3 HAP Objectives Promote new housing development that expands housing choices and is inclusive to community needs. Encourage homeownership opportunities and support equitable housing outcomes. Plan for continued growth and ensure that the built environment promotes community development and increases the quality of life for Federal Way’s existing and future residents. Preserve existing affordable housing stock to reduce displacement pressure. Draft Housing Action Plan LUTC 7/12/2021 This plan intends that regulatory changes occurring after adoption be towards the goal of expanding housing choices, encourage homeownership opportunities, plan for increased quality of life as the city grows, and keep people in their homes. * read objectives * Housing strategies are rarely effective in isolation. When the market is not producing the kinds of new housing that are needed, it is usually due to a combination of different factors. That is why the Federal Way HAP includes 8 different strategies, each associated with several actions the city will need to take to fully implement. These strategies and actions all address different barriers to new development in federal Way. So, to be most effective, the city will need to fully implement several strategies before seeing a real impact on new housing development. 4 HAP Strategies #1: Promote a dense, walkable mixed-use City Center #2: Promote mixed use, walkable, neighborhood centers #3: Expand “missing middle” development opportunities #4: Encourage ADU production #5: Ensure that incentives for mixed-income housing are effective #6: Review school impact fees on MF housing #7: Coordinate to support affordable housing development and preservation #8. Tenant protections and pathways to homeownership Each of the actions includes a prioritization of short-term (ST) 0-3 years (2021-2024) medium-term (MT) 3-7 years (2024-2028), and long-term (LT) 7 or more years (after 2028) These timeframes assume full and timely resource allocation of staff and necessary funds. Level of effort 5 HAP Housing Categories Draft Housing Action Plan LUTC 7/12/2021 Strategies and action are connected to any of these three categories FW HAP goal is guide housing policy to facilitate market-rate, income restricted housing production, and preserving the vital NOAH stock. 6 Draft Housing Action Plan LUTC 7/12/2021 In the Short Term #1: Promote a dense, walkable mixed-use City Center Ensure Dev Reg are conducive to TOD Evaluate assets and capital improvements to leverage in collaboration with developers to achieve desire downtown #2: Promote mixed use, walkable, neighborhood centers Parking MU and RM zones high…TDM offer deviations when allowed, BUT currently not tracked, continue it Collaboration for MU areas to foster local economic development #4: Encourage ADU production Size, height regs, update monitor #6: Review school impact fees on MF housing In the past, school impact fees and how they were calculated benefitted either the City or FWPS, but not both. Impacts fees used to be low, benefitting city development. Now they are very high, benefitting FWPS. The City and FWPS recently adjusted the fees with a goal to benefit both parties. Development subject to the higher fees still has not occurred since the fees were raised in 2017, so more adjustments are likely needed to achieve the balance sought by both parties. #7: Coordinate to support affordable housing development and preservation DEI manager Disparities across races, coordinated effort for equitable outcome Continue to support SKHHP #8. Tenant protections and pathways to homeownership This strategy calls for the City to expand tenant protections to ensure housing safety and collect data on rental properties in the city. Monitoring and maintaining existing affordable housing units can often be cheaper than constructing new units (although both are needed). Adopt Rental Inspection Program 7 Monitoring Progress Draft Housing Action Plan LUTC 7/12/2021 Implementation Milestones Periodic Updates & Review In addition to the actions listed above for implementing the eight strategies, Federal Way should also establish a monitoring program to measure progress towards achieving each of the four HAP objectives. Below is a discussion of monitoring for each objective. 8 June 7th, LUTC Follow Up Involvement with development community Addressing HOA concerns over ADUs Forecasting future housing units Accessibility and inclusion Draft Housing Action Plan LUTC 7/12/2021 1. Advisory Group, stakeholder interviews and community engagement. Objective 1, Strategy 1 implementation measure (public private partnerships), 5 effective incentives, E-Newsletter list,. Planning participation in the South King County Joint Planner and Developer meeting 2. As part of an ADU permit application, the City will require the applicant to submit proof of written notification to the HOA. This notification requirement intends to reduce unnecessary conflict with property owners and HOAs. Notwithstanding any conflicts, the City cannot legally withhold a permit because of HOA rules. 3. Request to compile a map Planning Project GIS, Buildable Lands 4. Housing planning and policymaking are integral functions of cities, and essential for supporting inclusive, diverse, and economically vibrant communities. ADA, ADU and wayfinding addition 9 6,800 New Housing Units by 2040 Draft Housing Action Plan LUTC 7/12/2021 250 350 200 250 300 120 50 100 200 130 175 150 960 2600 1300 Where do we expect the needed 6800 housing units by 2040 to go in the city? Map methodology – Beginning with the current zoning maps (current comp plan docket), identifying developments in the pipeline, and comparing parcel specific data from the buildable lands report of vacant and redevelopable area. We expect that of the future developed housing units in the striped areas that a majority of the forecasted units are MF/MU Yellow = single family 10 New Action to the HAP                 Draft Housing Action Plan LUTC 7/12/2021 #1 Promote a dense, walkable, mixed-use City Center. 11 Next Step Draft Housing Action Plan LUTC 7/12/2021 July 20, 2021 Housing Action Plan potential adoption 12 Land Use & Transportation Committee Options Recommend adoption of the Draft Housing Action Plan; Recommend adoption of Draft Housing Action Plan with amendments; Remand Draft Housing Action Plan to the Planning Commission for further discussion; Recommend forwarding the Draft Housing Action Plan to City Council without recommendation. Draft Housing Action Plan LUTC 7/12/2021 13 Mayor’s Recommendation 1. Recommend adoption of the Draft Housing Action Plan Draft Housing Action Plan LUTC 7/12/2021 14 Questions and Comments Draft Housing Action Plan LUTC 7/12/2021 15