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Home My WebLink AboutSpecial 2017-03-30 Housing Policy: Item 2 - Housing Background11. HOUSING BACKGROUND This is a brief summary of Tukwila's current housing conditions. For a more detailed analysis and breakdown by neighborhood see the Housing Background Report at Attachment 2. A. HOUSING STOCK AND CONDITION The majority of residents live in either single- family homes or apartments in large multi- family developments. There is a need for more "family sized" housing with three or more bedrooms because Tukwila has the highest percentage of overcrowded homes in south King County. 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 Most existing single- family homes were built before 1970 and the majority of multi - family homes were constructed from the 1960s to 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. Tukwila does support the Minor Home Repair Program but it is limited in the type of repairs covered and the number of homeowners it can serve annually. The majority of Tukwila's affordable housing is naturally occurring, meaning that factors such as location and age result in below market rate prices. However as those units continue to age and deteriorate they may not provide acceptable housing conditions. The rental housing inspection program has prompted many landlords to reinvest and upgrade their properties. For example the Colonial Garden complex was renovated when rental inspections revealed unacceptable conditions. Page 3 Over the past 25 years Tukwila has supported the creation of new, quality affordable housing for renters and home owners by reducing the minimum lot size in the single family zone from 7,200 to 6,500 sf, creating new townhouse standards, allowing accessory dwelling units, and increasing allowed density for senior housing developments. In that time 112 new multi- family units have been built compared to 660 new single family houses. Between Washington Place, Tukwila Village and the Quail Park assisted living project there are now 919 new multi - family rental units planned or under construction, 549 of them senior housing. Based on past trends we expect approximately 25 new single family houses to be developed per year in Tukwila. This shift to multi - family construction is a regional trend with most areas close to jobs and transit already too built out to accommodate significant numbers of new single family houses. Housing construction from Tacoma to Snohomish County is now mostly multifamily units (apartments and condos), not single- family homes — the opposite of decades past. 20,000 Single- family homes 15,432 15,000 10,000 6,436 5,000 16,120 9,396 Multi-family units 0 1995'96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 Source: U.S. Census Bureau MARK NOWLIN / THE SEATTLE TIMES B. HOUSING TENURE AND VACANCY The majority of Tukwila residents rent rather than own their dwellings. Type # of Units % of Total Housing Stock Owner - Occupied 3,335 43 Rental 4,420 57 Total 7,755 Source: King County Assessor, 2014 Page 4 Vacancy rates in Tukwila and King County were very similar until 2012 when Tukwila's began to drop. Tukwila's rate is now at 3.7 %, 1.5% lower than in the County, reflecting greater competition for lower priced rental units. 8 7 6 5 4 3 2 1 0 Apartment Vacancy Rates 0 0 0 0 o° o° 0 0 0 o'er o'er 0 0 0 0 0 0 o'er 0 0 ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti Tukwila Vacancy % —KC Vacancy Source: CoStar, 2017 C. HOUSING AFFORDABILITY Community poverty has tripled in Tukwila over the past ten years. Nearly 40% of residents are cost burdened, paying more than one -half of their income for housing costs including rent or mortgage payments and utilities. In particular, households who make 30% or less than the Area Median Income (AMI) face the greatest struggle to find affordable housing. There are 264 units of subsidized housing in the City in the Riverton Terrace I and II, Villages at South Station, Mountain View, and Pacific Court complexes which help address this issue but do not fully meet this need. City partnerships with affordable housing developers can result in the creation of additional affordable units such as in the Tukwila Village project. Page 5 Tukwila 2008 Tukwila 2016 Income Bracket Annual Income Affordable Monthly Rent /Home Purchase Cost` %of Residents %of Affordable Housing Units %of Residents %of Affordable Housing Units KC Affordable Housing Target ( %) Less than $21,910 or $547 rent/ $95,983 20 3.5 26 2.8 12 30% AM I less to own 31 -50% $21,911- $730 rent /$129,084 17 26 13 22.1 12 AM I $36,517 to own 51 -80% $36,518- $1186 22 38 16 44.5 16 AM I $58,428 rent /$228,318 to own 81 -100% $58,429- $1643 19 22.5 23 16.2 NA AM I $73,035 rent /$330,979 to own 101% $73,036 $1644 rent/ 22 10 22 14.4 NA AM I $359,687 to own Source: American Community Survey- King County. The average size apartment in Tukwila is 800 square feet and that has not changed over the last 10 years as very few new apartments have been constructed. The average monthly rent in Tukwila has increased $335 over that time, a 40% increase, to $1,142. Average Rent per Apartment $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 aa a a a a a a a a a a a o a a ,\ ,\ ��0) 0o �'ti 3' 3'�' t �'�aa °o°°o °o °o°o'o' ,:"o'o>o"o"o o"o otio"o"Q ti ti ti '1, ti ti ti ti ti ti ti ti ti '1, ti ti ti ti —Tukwila Asking Rent Per Unit —KC Asking Rent Per Unit Source: CoStar, 2017 Page 6 D.TABLE OF EXISTING HOUSING ACTIONS Below is a table of housing related actions the City has completed, are ongoing or are underway. These either preserve existing housing, assist in creating new housing, or address homelessness. Category City Costs Action Type Location Market Segment City Effort Suggested Priority Housing Preservation 1) Rental Housing Inspection Program Staff Time, Ongoing Regulation Citywide All except Section 8 High Continue 2) Integrated Pest Management documentation for duplex and larger rentals Staff Time, Ongoing Regulation Citywide All High Continue 3) Minor Home Repair program Staff Time Fully subsidized housing repair Single Family Below 80 %of AMI Medium Continue 4) Adoption of National Healthy Housing Standards Staff Time Regulation Citywide All Done Complete 5) She Builds Home Repair Workshop, Rebuilding together Seattle rehab Staff Time Fully subsidized housing repair Single Family Low income Medium Complete 6) King County Housing Repair /King County Housing Authority - Weatherization Staff Time No interest loans and emergency grants Weatheriza tion for rental properties Low income Medium Continue New Housing Creation 7) Raisbeck Rezone for Senior Housing Staff Time Zoning Standard Site Specific Market Rate Seniors Low To CC 2017 8) Quail Park Senior Housing PRD /Design Review Staff Time Zoning Standard Site Specific Market Rate Seniors Low To CC 2017 9) MFTE for Washington Place Staff Time, Ongoing Financial Incentive Site Specific Market Rate Medium Continue 10) Washington Place Development Agreement Staff Time, Outreach Zoning Incentive/ Standard Site Specific Market Rate Medium Complete 11) Renew MFTE for TUC -TOD Revenue, Staff Time, Outreach, Ongoing Financial Incentive Defined Districts Market Rate, 80% AMI Medium To CC 2017 Page 7 12) Tukwila Village Development Agreement Staff Time, Outreach Zoning Incentive/ Standard Site Specific Market Rate, 60% AMI Seniors Very High Complete 13) Affordable housing permit and impact fee reductions Revenue, Staff Time Financial Incentive Citywide 30 -80% AMI Low Complete 14) Tukwila Urban Center heights for housing and affordable housing No further costs Zoning Incentive TUC Zone All Done Complete 15) Townhouse zoning and development standards No further costs Zoning Standard MF Zones Market Rate Done Complete 16) Senior housing density and parking standards No further costs Zoning Standard MF Zones All Done Complete Homelessness Prevention 17) Source of Income Discrimination Ordinance Staff Time, Outreach Regulation Citywide All Low To CC in 2017 18) Houses leased to Way Back Inn Maintenance, Improvement Utility costs Facility Specific Sites Homeless Low Continue 19) Utility Shutoff Prevention /Utility Reenablement Program Cost, Staff Time, Ongoing Financial Assistance Citywide Low income Medium Continue 20) Eviction Prevention Assistance through Rent and Utility Assistance Program Cost, Staff Time, Ongoing Financial Assistance Citywide Low income Medium Continue Page 8