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2021-08-18 Planning Commission MinutesPlanning Commission Minutes Page 1 August 18, 2021 CITY OF FEDERAL WAY PLANNING COMMISSION August 18, 2021 City Hall 6:30 p.m. Council Chambers & Zoom MEETING MINUTES Commissioners present: Tim O’Neil, Wayne Carlson, Diana Noble-Gulliford, Tom Medhurst, Hope Elder, Dale Couture, Anna Patrick, Jae So, and Eric Olsen. Commissioners absent: Lawson Bronson (excused). City Staff present: Planning Manager Keith Niven, Assistant City Attorney Kent van Alstyne, and Administrative Assistant II Tina Piety. CALL TO ORDER Vice-Chair O’Neil called the meeting to order at 6:30 P.M. MINUTES The July 21, 2021, minutes were approved as presented. PUBLIC COMMENT None COMMISSION BUSINESS Public Hearing, Permanent Supportive Housing & Emergency Shelter Code Revisions – Manager Niven delivered the staff report. The proposed amendments are in response to house bill, ESHB 1220. Why do we need to do anything with the code? Because of newly-adopted state legislation that has a deadline of July and September to become effective. The city is better served by having standards in place than being out of compliance with state law. If we don’t adopt our regulations, we won’t have them in our toolbox and will have to follow state law. ESHB 1220 has six sections (a proposed seventh was rejected by the governor). According to the bill, cities have to accommodate housing affordable at all levels. This means we will have to comply with this mandate when we update our housing chapter in the comprehensive plan. Policies must be consistent between our code (FWRC) and the comprehensive plan. Section three is the biggest concern for the city. It states “A code city shall not prohibit transitional housing or permanent supportive housing in any zones in which residential dwelling units or hotels are allowed. And, effective September 30, 2021, a code city shall not prohibit indoor emergency shelters and indoor emergency housing in any zones in which hotels are allowed, except in such cities that have adopted an ordinance authorizing indoor emergency shelters and indoor emergency housing in a majority of zones within a one- mile proximity to transit.” Permanent supportive housing combines affordable housing assistance with voluntary support services to address the needs of chronically homeless people. Permanent supportive housing has helped decrease the number of chronically homeless individuals. Investments in permanent supportive housing have helped decrease the number of chronically homeless individuals by 8% since 2007. Research has shown it can increase housing stability and improve health. Emergency housing is often the first place people turn to during or after experiencing an economic or domestic crisis and provides a temporary residence. Emergency housing and shelters provide support services and short-term stabilization for individuals and families before finding appropriate long-term housing. Manager Niven noted that while the state has banned jurisdictions from adopting a moratorium on the siting of permanent supportive housing, the City of Puyallup has done so. Planning Commission Minutes Page 2 August 18, 2021 Zones that currently allow hotels and motels are Community Business (BC), Commercial Enterprise (CE), City Center Frame (CC-F), and City Center Core (CC-C). Currently, Office Park (OP) and Professional Office (PO) zones don’t allow dwellings. Most of the city consists of single-family and multifamily zones. The city must use our “projected need” as a basis for any proposed code amendments. The projected need is an “…inventory and analysis of existing and projected housing needs that identifies the number of housing units necessary to manage projected growth, as provided by the department of commerce, including: (i) Units for moderate, low, very low, and extremely low income households; and (ii) Emergency housing, emergency shelters, and permanent supportive housing….” Our projected need number will be developed for us by King County, using a number from the state’s Department of Commerce (DOC). However, DOC will not have a projected need number for King County until December 2021. King County will likely take most, if not all of 2022, to determine the projected need number for the jurisdictions in the county. Therefore, Federal Way likely will not have an “official” projected need number until 2023. In the meantime, DOC still expects cities to determine and use their projected need number starting this year. Manager Niven used the following methodology to determine a tentative projected need number for Federal Way: 1. Utilize the 2020 Seattle/ King County Point In Time Count of the homeless done in January. 2. Since the count is not segregated by city, he utilized data for SW King County. (SW King County includes Renton, Tukwila, Burien, SeaTac, Des Moines, Vashon, Federal Way, a portion of Milton, a portion of Auburn, and Kent.) 3. He used the population of the region to determine the city’s portion (329). 4. He extended the Point In Time Count trend from the last four years out to 20 years (449) and applied a multiplier of 2.5% to that. Manager Niven arrived at a 20-year forecast for Federal Way’s projected need number of 1,123 dwelling units. He noted that some people feel the Point In Time Count undercounts the actual amount of homelessness by 2½ to 10 times fewer people. Staff suggests the city revisit the projected need number in 2023 after we receive our “official” number from King County. Commissioner Noble-Gulliford asked if Manager Niven knows the DOCs formula for calculating the projected need number? Manager Niven replied that he does not know and DOC may not know yet. He noted that Federal Way and SeaTac are the most proactive cities concerning this issue. Commissioner Noble-Gulliford asked in regards to the calculations, is there anything other than an 8% reduction rate in homelessness due to permanent supportive housing? Isn’t there a factor to indicate some people have been helped and are no longer in this number? Manager Niven replied he will have to look into this issue. He doesn’t know if there is an expectation of the amount of homeless that will be helped (and can be moved out of the facilities). Commissioner Patrick asked regarding Puyallup’s moratorium, Pierce County has a lot of foreclosure homes; can we look at the forecast of that? Attorney van Alstyne stated that the city can’t legally adopt a moratorium like what Puyallup did. Manager Niven commented that staff is concerned that the model of permanent supportive housing will move away from hotels and into neighborhood homes. This is something we can possibly address in our regulations. The proposed amendment will increase the separation between permanent supportive housing. Manager Niven went over a summary of the proposed amendment (attached). The summary table shows where permanent supportive housing and emergency housing are allowed now and where they will be allowed under new regulations. Since emergency housing is basically the same as the city’s social services transitional housing the proposed amendment changes social services transitional housing to emergency housing. Planning Commission Minutes Page 3 August 18, 2021 Vice-Chair O’Neil opened the hearing to public comment. Ken Blevens – He is frustrated with city officials. Do they even live in Federal Way? He is a 49- year resident. You can put a moratorium on this. We only have drug addict homelessness in Federal Way. All the numbers are wrong. Our homeless are drug addicts, not people down on their luck. We would happily help out and agree to this amendment if our homeless were people down on their luck, but they’re not. You don’t care for drug addicts the same way as other homeless. They are a problem for businesses. I often go out on my sidewalk and see a person with a needle in their arm. This amendment is going to put more drug addicts on our streets. Jacquelyn Copley – She lives in Federal Way. Her children are growing up here and her elderly parents live here as well. How safe would it be if the drug-addicted homeless were close to their house? The Police are concerned; there are hot spots of dangerous areas in the city. Crime is rising. What habit are they funding/supporting with this amendment? Who is protecting us? What you are doing has a long-term impact. Some of the people working on this don’t live in Federal Way. Commissioner Carlson commented that the Planning Commission is made up of residents of Federal Way. This is coming from the state, not the city. Staff is following the lead of the city council. He is not comfortable being a trailblazer on this issue. He also disagrees with some of the amendments and the numeric standards but doesn’t blame the staff. Kerry Callison – This will spread the crime out to all the different homes. We pleaded with King County not to purchase Extended Stay, but for naught. Will this get rid of the tents and remove people from the streets? We are looking at you to do this and protect us Having services may help. It is a crazy idea to house senior citizens with drug addicts. With this amendment, property values will go down and people will leave Federal Way. Jack Walsh – He feels sorry for the position staff is in. The state legislature put us here. We should delay this amendment because there will be a different legislature in a few years and some of these laws may be undone. There is a need for emergency shelter and most of that part of the amendment is fine. He has been a volunteer for the Point In Time Count and the homeless numbers from before 2021 were very accurate and don’t need to be inflated. Isn’t this supposed to reduce the need number by 8%, so increasing the projected need number doesn’t make sense. He also noted the number of homeless who need a unit is lower than the count because some are couples and can share a unit; thereby, lowering the number needed. Jim Ross – He has lived in Federal Way for 60 years and owns a restaurant. He sees drug-addicted homeless in his parking lot every day. If it was just homeless he would support the amendment, but they are drug addicts who don’t want help. Such people don’t want to follow the rules (such as no alcohol use) from supportive agencies that want to help. Please don’t put drug addicts in our city center You can limit the size of hotels that can be used or the number of units. If only 25 rooms are available they will have to figure out something else. We need your help to solve this. Erica Norton – She has worked in construction on a lot of the jobs for this kind of housing in Seattle (where they belong) and has noted the developer uses sturdier components because they know they will be destroyed. There will soon have drugs, rats, and roaches in the units. The zoning rules should place families first. She would like drug-free zones and mandatory drug testing. David VanVleet(?) – Staff is using only one source for information. Another study indicates housing first is not the key to solving the homeless problem. There is a requirement they are separated from schools, but private schools are omitted from the law. In earlier years, funding of grants from HUD was higher for transitional (emergency) housing and now it is higher for Planning Commission Minutes Page 4 August 18, 2021 supportive housing. He noted permanent supportive housing can go into neighborhoods but transitional cannot. The government isn’t being accountable to the citizens. There is a disconnect between what the state wants and what citizens want. Dara Mandeville– She is a small business owner. She is not getting patients because once they hear she is in Federal Way they cancel. What exactly is a unit? How many people can be in a unit? Can HOA Covenant and Restrictions forbid permanent supportive housing? Are no children allowed in all these homes? Why don’t we centralize permanent supportive housing? To her, it makes more logistical sense. What is the penalty of saying no? Vice-Chair O'Neil commented the Planning Commission is a voluntary citizen board and part of our job is to consider public comment. He thanked everyone for their comments. Commissioner Elder asked what if we said no? What would the penalty be? Manager Niven replied if we do nothing and someone comes in and wants 50 units of supportive housing and we don’t accept the application; the developer is likely to sue. Attorney van Alstyne commented the developer will likely have a valid argument. Commissioner Elder asked can we enforce a requirement that people are drug tested? Attorney van Alstyne replied he wants to discuss the issue with our Community Services Manager Sarah Bridgeford. Manager Niven commented the fair housing act says we can’t discriminate against disabilities, and drug addiction is considered a disability by many. Commissioner Patrick asked does 10 rooms/units mean 10 people in a house? Manager Niven replied there could be more than one person in a room/unit, there could be 20 people in the house. Commissioner Patrick asked how much parking would a 10 room/unit house require? Manager Niven replied it would be 10 to 20 spaces. The provider can ask to reduce the amount of parking (which will free up space). Commissioner Patrick would like to see a map of what the spacing of permanent supportive housing will look like. She also commented it is a concern that many of our neighborhoods don’t have sidewalks. She wants to see what the placement of permanent supportive housing in our neighborhoods will look like. Commissioner Patrick stated there are four in-care homes within a few blocks of where she lives and they cause a lot of problems in the neighborhood. She also stated that if we allow 10 people in a house that is being foreclosed, it could be turned into a cash cow; it would be less expensive than apartments. The City should work to preserve single-family homes, especially those lower priced and that this preservation should be considered when approving “specialty” type of housing (such as the number approved within one neighborhood). Manager Niven commented that one of the biggest costs is the operating expenses. If the housing is more congregated they likely will save money on the services to residents due to proximity. Commissioner Patrick commented the bill isn’t clear on what the regulations are in regards to services; there are no guidelines in the bill. Manager Niven commented the type of services needed will depend upon the operator and different operators will have different needs; programs will vary. He will research this issue. Commissioner Patrick asked if we can have regulations to deny those who are drug addicts. Attorney van Alstyne commented he needs to research this issue further. Commissioner Carlson has concerns related to the projected need number. He suggested the city use the smallest most conservative number as the base. He is concerned the city is using too large a base number He suggested the ½ mile separation apply only to units of three or greater. Manager Niven commented he doesn’t expect many will locate into small homes because of the need for the proximity of services (transit, doctors, etc.). He expects most will likely be in commercial zones. Commissioner Carlson commented he is uncomfortable being on the leading edge; he wants to know what other communities plan to do. He noted the supporting housing parking standards mirror what is in multifamily zones, but they will have employees and will need to add parking for them. Commissioner Carlson noted the city has several permits for behavioral health facilities; do we get credit in our projected need number for those? Manager Niven replied he doesn’t know and will research the issue. Planning Commission Minutes Page 5 August 18, 2021 Commissioner Noble-Gulliford asked if current facilities (such as FUSION) count as part of our projected need? The services are similar and the city should get credit for those. She is concerned about these uses in single-family zones and whether they fit within the Housing Action Plan. Commissioner Carlson suggested the spacing in single-family zones be closer to a mile and ½ mile in multifamily and commercial zones. He asked if the state regulation can be preempted by covenants. Attorney van Alstyne replied that the bill does not expressly preempt private covenants. Commissioner Carlson asked staff to please examine a zero-tolerance policy. He also suggested the city require two occupants per room. Commissioner Noble-Gulliford asked what happens to the taxes from Extended Stay & Red Lion (property & head tax). Manager Niven stated it depends on if they are purchased and operated by a public entity or not. If privately owned and operated they will pay taxes. If it is a public entity, they will not. Commissioner Patrick asked if the city can decide what population we will serve. Attorney van Alstyne said he needs to research this question, especially in regards to barriers to entry. Commissioner Olsen commented he has seen Federal Way change a lot; but how can we be sure the number of homeless will grow as expected? Manager Niven replied the Point In Time Count has shown the city grows by approximately 360 every four years. Commissioner Olsen asked in regards to spacing, does it take into account other types of housing (such as adult family homes, ADUs, etc.). Manager Niven will ask the Department of Commerce if what already exists will be considered or factored into the calculation. Commissioner Patrick asked what happens if say, an in-home care is in an area reclassified for emergency housing and no longer meets the code requirements. Manager Niven replied they become nonconforming and will not have to change to meet the new requirements. If they want to make changes to the property certain restrictions apply and if they don’t meet them, they will have to make changes to apply any new code regulations. Commissioner Patrick asked if we can get how many units we already have? Vice-Chair O’Neil asked if adult family homes fall under the category of permanent supportive housing. How much of our housing is already permanent supportive housing and how many are already being served? Maybe we already meet our projected need number and don’t have to change the code. Manager Niven replied that we need to allow them in zones they are not currently allowed and that meets our expected need. Vice-Chair O’Neil suggested the city adopt the lowest projected need number possible. He commented that homelessness is a very squishy number and definition. We can arrive at a projected need number that will allow for growth, but we need to know what we currently have. Commissioner Carlson moved (and it was seconded) to continue the hearing to September 1 st. The motion passed unanimously. STAFF BUSINESS Manager’s Report – None NEXT MEETING September 1, 2021, 6:30 pm ADJOURN The meeting adjourned at 8:50 P.M. K:\PLN Planning Commission\2016\Meeting Summary 08-18-21.doc