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Home My WebLink AboutCAP 2016-04-25 Item 2C - Review - Draft Housing Options MatrixWILA City of Tukwila INFORMATIONAL MEMORANDUM TO: Community Affairs and Parks CC: Mayor Ekberg FROM: Jack Pace, DCD Director BY: Laura Benjamin, Assistant Planner DATE: April 25, 2016 SUBJECT: Summary of Current and Potential Housing Efforts Allan Ekberg, Mayor ISSUE What efforts are the City involved in to improve housing condition and create new quality affordable housing? BACKGROUND Tukwila's Comprehensive Plan includes a Housing Element which provides policy direction for housing efforts over the next 20 years. This element was updated in 2015 as part of the larger Comprehensive Plan update. The Housing Element includes policies ranging from affordability to housing condition. The information provided is a first step in the implementation process. DISCUSSION Housing is a multi- faceted topic. There is a wide range of programmatic and policy options to improve housing condition and create new quality affordable housing. Attachment A provides a summary of current and potential housing efforts, including governmental programs and funding at the city, county, state, and federal level, as well as community development and non - profit initiatives. This is by no means an exhaustive list, but rather a high level overview of the work currently underway by the City and potential avenues for further involvement. These efforts are divided into the following four focus areas: • Housing Type /Options —The majority of housing in Tukwila is older two - bedroom single - family homes and apartments in large multi - family developments. This limited range of housing options does not accommodate residents in all stages of life, including young adults, multigenerational families, older adults hoping to "age in place," and older adults looking to downsize. There is a need for more "family sized" housing with three or more bedrooms. Tukwila has the highest percentage of overcrowded homes in south King County. • Housing Condition —Most existing single - family homes were built before 1970 and the majority of multi - family homes were constructed between the 1960s- 1980s. Aging housing stock typically requires more money for maintenance, which can be difficult for residents who are already burdened by other economic stressors and /or are unable to maintain their homes because of age or other limitations. • Affordability— Housing costs, such as rent or mortgage payments and utilities, in excess of 30% of total income are considered unaffordable. Nearly 40% of residents are cost burdened, paying more than one -half of their income on housing. In particular, households who make 30% or less of the AMI face the greatest struggle to find affordable housing and are often on the brink of homelessness. 131 INFORMATIONAL MEMO Page 2 • Homelessness — The number of people experiencing homelessness in Tukwila has risen drastically since 2009. Close to 10% of Tukwila School District students are considered homeless. Attachment B provides an overview of the current state of housing in Tukwila. A summary of the Comprehensive Plan Housing Element is included as Attachment C. FINANCIAL IMPACT N/A RECOMMENDATION Information only. ATTACHMENTS A. Housing in Tukwila — Current & Potential Efforts Matrix B. Housing in Tukwila Fact Sheet C. Comprehensive Plan Housing Element Overview 132 Attachment A Housing in Tukwila — Current & Potential Efforts 1. HOUSING TYPE /OPTION Row Focus Area Program Description /Comment Sponsor /Organizer Eligibility /Qualifications Status in City Requires Policy /Code /Budget Change la Housing Type /Options Riverton Compact Homes Proposed development of 34 owner occupied compact single - family homes (900 -1800 sf) with community gardening and recreation space on the Riverton United Methodist Church property City of Tukwila in concert with Homestead Community Land Trust Home price and income restrictions determined by the Homestead Community Land Trust Code updates in 2016, entitlement in 2017, construction in 2018 Code update lb Housing Type /Options Senior Housing Incentivize development of senior housing. Current projects: Tukwila Village, Quail Ridge City of Tukwila Age and income restrictions Ongoing Current code allows higher density for senior housing lc Housing Type /Options Residential Lot Sizes Target specific areas for lot size reductions, like in Allentown from 6500 sf to 6000 sf with increased development standards City of Tukwila Further Research Required, 2016 DCD Work Plan Code change 1d Housing Type /Option Recreation Space Outdoor recreation spaces at multifamily properties City of Tukwila Researching Issue and Options Code requires recreation space for new developments, does not apply to existing developments including those constructed prior to annexation le Housing Type /Options Residential Infill Standards Infill in single - family residential areas to increase the supply and type of housing City of Tukwila Further Research Required Code change, supported by Comp Plan 1f Housing Type /Options Incentivize Redevelopment Allow redevelopment at higher density; Enable tear down of older non - conforming multifamily properties in target areas such as TIB District City of Tukwila Further Research Required Code change, supported by Comp Plan 1g Housing Type /Options Modular Homes PODs — Prefabricated assessor dwelling units pre- approved by Tukwila DCD for placement on residential property City of Tukwila Further Research Required Code change to allow in residential areas 1h Housing Type /Options Demolition Tax - Exception No tax charge for demolition of low -grade properties City of Tukwila Further Research Required Page 1 of 4 0.-) 4/20/2016 W: \Long Range Projects \Neighborhood &Housing Zoning Updates \Housing Efforts Matrix.docx Housing in Tukwila — Current & Potential Efforts 2. HOUSING CONDITION Row Focus Area Program Description /Comment Sponsor /Organizer Eligibility /Qualifications Status in City Requires Policy /Code /Budget Change 2a Housing Condition Rental Housing Licensing and Inspection Program All rental units — multi - family and single - family — annual license and inspection every four years; Focus on life safety City of Tukwila Ongoing 2b Housing Condition National Healthy Housing Standard Code to ensure homes are healthy and safe for residents; First city to adopt the NHHS City of Tukwila Ongoing 2c Housing Condition Minor Home Repair Financial assistance for low- income home owners to make life safety improvements City of Tukwila, King County HUD CDBG funds passed through King County, Tukwila is not an entitlement city Ongoing 2d Housing Condition Vacant Home Registry Require registration of vacant homes in Tukwila City of Tukwila Researching Issue and Options If move forward, code and budget 2e Housing Condition Pest Inspection Annual pest inspection and certification for multi - family properties Required for multifamily properties with 4+ units Researching Issue and Options If move forward, code and budget 2f Housing Condition Neighbor To Neighbor Program Citizens helping others clean up their housing via partner with Habitat for low housing materials Habitat for Humanity in concert with City of Tukwila Low- income home owners and renters — to be determined if program moves forward Further Research Required Policy and budget, supported by Comp Plan 2g Housing Condition Habitat for Humanity Provided land for one low- income owner occupied home in Allentown/ Owner occupied home repairs and assistance Habitat for Humanity in concert with City of Tukwila Low- income home owners Completed/ Preliminary Discussion 2h Housing Condition Home Repair Assistance Nonprofit provides assistance for minor home repair in a specific neighborhood Rebuilding Together Seattle in concert with City of Tukwila Low - income home owners Scheduled for Summer 2016 in the Allentown neighborhood 2i Housing Condition Community Development Funding May be used for City projects, e.g., sidewalks; HUD CDBG funds passed through King County King County Competitive application annually Available 2� Housing Condition 501(C)3 — Federal Tax Credit Used to renovate older multi - family dwelling units by non - profits; 4% Tax Credit Program, 9% Tax Credit Program Federal Government, allocated to State of Washington Available Page 2 of 4 4/20/2016 W: \Long Range Projects \Neighborhood &Housing Zoning Updates \Housing Efforts Matrix.docx Housing in Tukwila — Current & Potential Efforts 3. AFFORDABILTY Row Focus Area Program Description /Comment Sponsor /Organizer Eligibility /Qualifications Status in City Requires Policy /Code /Budget Change 3a Affordability Utility Tax Relief Annual rebate program for Tukwila Surface Water, Tukwila Sewer, Tukwila Water City of Tukwila Low Income, Seniors, Disabled Ongoing, Administration Reviewing Current Policy 3b Affordability Utility Shutoff Prevention Utility Re- Enablement Prevent utility shut off for low income City of Tukwila Low Income, Screened by Human Services. Current budget at $3,000 Ongoing 3c Affordability Multi - Family Property Tax Exemption Pilot program in TUC -TOD area, Washington Place is utilizing the program City of Tukwila Property tax exemption for specified time period for multi - family developments meeting affordability thresholds Ongoing Code change to expand geographic area or income thresholds 3d Affordability Inclusionary Zoning Require a specified percentage of units in a development are affordable to low- income residents. Potential options for redevelopment of mobile home parks City of Tukwila RCW 36.70A.540 Available Policy and code change, supported by Comp Plan 3e Affordability TIB Multifamily Redevelopment Small scale redevelopment and density increase for 3 -4 multifamily properties in the TIB District DASH — Downtown Action to Save Housing DASH's current properties rent to tenants at 40 -50% AMI Preliminary Discussion May require code change, supported by Comp Plan 3f Affordability Tax Payer Assistance Reduction /deferral of property taxes King County Assessor Low Income, Seniors, Disabled, Veterans Available 3 g Affordability Acquisition of property for long- term affordability Boulevard at South Station King County Housing Authority Market rate and Section 8 eligible units Ongoing 3h Affordability Section 8 Vouchers 258 units serving 1222 individuals King County Housing Authority Low income, by lottery, waiting list of 2500 Ongoing 3i Affordability Low Income Housing Tax Credit (LIHTC) Offers a financing option for developers State of Washington Competitive application based on point system Available 3j Affordability King County Housing Finance Funding for affordable housing from a variety of sources. New focus on affordable housing in TOD areas, New option to bond against King County lodging tax, does not affect City lodging taxes King County Competitive application Available 3k Affordability Regional Equitable TOD Fund (REDI) Revolving loan fund for affordable housing, focused on transit - oriented development (TOD) King County Competitive application Funding not yet available Page 3 of 4 4/20/2016 W: \Long Range Projects \Neighborhood &Housing Zoning Updates \Housing Efforts Matrix.docx co Housing in Tukwila — Current & Potential Efforts 4. HOMELESSNESS Row Focus Area Program Description /Comment Sponsor /Organizer Eligibility /Qualifications Status in City Requires Policy /Code /Budget Change 4a Homelessness South King County Housing and Homelessness Partnership (SKHHP) Works on regional solutions to housing and homelessness; 3 year funded position SKC cities, other funders Ongoing 4b Homelessness Tent City Minimal permitting to allow Tent City on private property in Tukwila if basic health and safety standards met Tent City in concert with City of Tukwila Annually, last at Riverton United Methodist Church in 01 2016 4c Homelessness Way Back Inn Provides short term (90 day) transitional housing Non - Profit via three City owned houses Human Services provides operating support via competitive application Ongoing 4d Homelessness Human Services Advisory Board Provides funding to non - profits City of Tukwila Nonprofits are funded for 2 years Ongoing 4e Homelessness Enterprise Community Partners Develop greater understanding of Tukwila students' needs via data collection. Jonathan Houston (TSD), Keri Williams (Enterprise), Mary Fertakis (consultant). Focus on McKinney Vento — students experiencing homelessness Tukwila School District NI, Report expected in Summer 2016 Page 4 of 4 4/20/2016 W: \Long Range Projects \Neighborhood &Housing Zoning Updates \Housing Efforts Matrix.docx 10 Attachment B HOUSING IN TUKWILA Housing Stock The majority of residents live in two bedroom single- family homes or apartments in large multi - family developments. Type # of Units % of Total Housing Stock Single - Family 3,254 42 Multi - Family (including condos) 4,207 55 Mobile Home 233 3 Source, King County Assessor, 2013 The majority of Tukwila residents rent. Type # of Units % of Total Housing Stock Owner - Occupied 3,335 43 Rental 4,420 57 Total 7,755 12 Source: King County Assessor, 2014 Housing Affordability at Various Incomes Income Bracket Annual Income Affordable Monthly Rent /Home Purchase Cost* 0/0 of Residents % of Affordable Housing Units King County Affordable Housing Target ( %) Less than 30% AMI $19,990 or less $500 rent/ $94,400 to own 20 3.5 12 31 -50% AMI $19,991 - $33,100 $670 rent /$157,300 to own 17 26 12 51-80% AMI $33,101 - $52,939 $1,070 rent /$232,700 to own 22 38 16 81 -100% AMI $52,940 - $66,174 $1,500 rent/ $314,700 to own 19 22.5 NA 101% +AMI $66,175+ $1,800+ rent /$361,900 +to own 22 10 NA Source: American Community Survey, 2008 -2012; King County, 2008 Housing is considered affordable when residents pay no more than 30% of their total income on housing costs such as rent or mortgage payments, and utilities. Housing Condition • Most existing single- family homes were built before 1970 and the majority of multi - family homes were constructed between the 1960s- 1980s. • Aging housing stock typically requires more money for maintenance, which can be difficult for residents who are already burdened by other economic stressors. Affordable Housing • While Tukwila continues to have affordable units for those at 50 -80% area median income (AMI), more and more households are struggling to meet their housing costs. • Nearly 40% of residents are cost burdened, paying more than one -half of their income on housing. • In particular, households who make 30% or less of the AMI face the greatest struggle to find affordable housing and are often on the brink of homelessness. Housing Options • Over 9% of homes are overcrowded, indicating a need for more "family sized" housing, with three or more bedrooms. • This range of housing options does not accommodate residents in all stages of life, including young adults, multigenerational families, older adults hoping to "age in place," and older adults looking to downsize. 4/20/2016 W: \Long Range Projects \Neighborhood &Housing Zoning Updates \Housing Brownbag One Pager4.20.16.docx 141 142 Attachment C SUMMARY The Housing Element establishes Tukwila's housing goals and policies for the next twenty years. It provides a vision and direction for the City's housing efforts and explores opportunities to preserve existing and develop new housing for all residents. REQUIREMENTS The Washington State Growth Management Act (GMA) requires the City to include a Housing Element in its Comprehensive Plan. It must be consistent with the other elements and include goals, policies, and objectives for the preservation, improvement, and development of housing. The Housing Element must also plan for additional housing to accommodate growth. KEY ISSUES Housing Condition: Most housing is Tukwila is over forty years old. Aging housing typically requires more money for maintenance, which can be difficult for residents who are burdened by other economic stressors. Affordability: While Tukwila continues to have affordable units for middle- income residents, more and more households are struggling to meet their housing costs. Almost half of residents are burdened by housing costs, paying more than 30% of their income for housing. PROPOSED CHANGES The proposed policy changes to the Housing Element include: • Provide additional resources to assist residents with home repair and maintenance. • Encourage the availability and preservation of housing for residents of all income levels. • Provide alternative affordable housing options for City residents living in substandard housing. • Encourage a diverse range of housing choices, including cottages, small lot development, duplexes, and detached accessory dwelling units. • Support first -time homebuyers to encourage greater rates of home ownership. Tukwila —The city of opportunity, the community of choice 143