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HomeMy WebLinkAboutSpecial 2017-03-30 Housing Policy: Item 3 - Housing ActionsIII. HOUSING ACTIONS While the housing market is regional in nature, there are actions that Tukwila can take at the local level to incentivize and create conditions for the development of needed housing. These have been organized as actions that either preserve existing housing, assist in creating new housing, or address homelessness. Each potential action listed below has a summary sheet that identifies what segment of the housing market it could affect, description, restrictions, costs to the City, and any timing issues. A. TABLE OF POTENTIAL ACTIONS Actions listed in the Biennial Budget as 2017 -18 Budget Goals are highlighted in the table below. Category City Costs Action Type Location Market Segment City Effort Suggested Priority Housing Preservation 1) Habitat for Humanity Neighborhood Revitalization Program Cost, Staff Time Financial Incentive, Technical Assistance Defined District Below 80% AMI Low Start 2017 2) Accessory Dwelling Unit amnesty and life safety review Staff Time, Outreach Zoning Incentive Residential Market Rate Medium After ADU Code Update 3) Multi- Family Tax Exemption (MFTE) for Rehabilitation Revenue, Staff Time, Outreach, Ongoing Financial Incentive Defined District Market and Affordable High Not Scheduled 4) Multi- Family Rehabilitation Trust Fund Revenue, Staff Time, Outreach, Ongoing Financial Incentive Defined District All High Not Scheduled New Housing Creation 5) Tukwila International Boulevard Code Amendments Staff Time, Outreach Zoning Incentive/ Standard TIB District TBD Very High Start 2017 6) Multi - Family Tax Exemption - TIB Revenue, Staff Time, Outreach, Ongoing Financial Incentive Defined Districts Market Rate, 80% AMI Medium Start 2018 Page 9 7) Housing Options Ordinance for Cottage /Compact Homes Staff Time, Outreach Zoning Incentive Residential Market Rate High 2018 8) Update to Accessory Dwelling Unit zoning standards, including Detached Units Staff Time, Outreach Zoning Standard Residential Market Rate Medium 2018 9) Reducing Low Density Residential Lot Size by Neighborhood or Citywide Staff Time, Outreach Zoning Standard Single Family Market Rate Very High Not Scheduled 10) Allow Duplex /Townhomes in LDR by Neighborhood Staff Time, Outreach Zoning Standard Single Family Market Rate Very High Not Scheduled 11) Public Private Partnerships Staff Time Zoning Incentive/ Standard Site Specific All Varies As needed/ able Homelessness Prevention 12) Tenant Rights Education - General and Mobile Home Staff time, Outreach Education Citywide Renters Low Start 2017 13) Mobile Home Park change of use regulations Staff time, Outreach Education, Regulation Mobile Home Parks Mobile Home Residents Medium 2018 B. SUMMARY SHEETS FOR EACH POTENTIAL ACTION Each potential action listed in the table above has a summary sheet that identifies what segment of the housing market it could affect, description, restrictions, costs to the City, and any timing issues. Page 10 1. Habitat for Humanity Neighborhood Revitalization Market: Existing single family homeowners with incomes below 80% AMI. Description: Habitat for Humanity has a neighborhood revitalization program where they partner with local jurisdictions to repair homes within targeted areas. The City provides seed money and Habitat leverages that with volunteer labor and donated goods to repair houses for low income homeowners. Homeowners sign a loan agreement at 0% interest. The amount of principal to be paid is based on income and can be as low as $100. This would provide an additional option for improving the quality of owner occupied single family housing. The focus is on exterior building and yard work to preserve the home and improve safety and appearance. Restrictions: Habitat prefers to delineate a geographic area that is small enough for the repairs to make a visible impact. Tukwila may need to pick one or two neighborhoods to start. In addition to size, the neighborhood needs to have enough homeowners who meet the income qualifications and are committed to providing sweat equity . City Costs: The City would allocate funds which would determine the scale of the effort. Improvement costs average about $6,000 per house so a starting point would be about a $30,000 yearly commitment. Staff would help Habitat market the program to potential homeowners. In Federal Way Habitat completed 60 homes over ten years. Timing: Habitat is ready to work with Tukwila to evaluate if one or two neighborhoods are a good fit. If funds are not available in the current biennial budget it would need to wait for a new budget cycle. Lead Dept: DCD /Human Services Page 11 2. Accessory Dwelling Unit Amnesty and Life Safety Review Market: Market rate undocumented accessory dwelling units (ADUs). Description: Tukwila has permitted ADUs since 1995, however with the Zoning Code restrictions very few existing houses can qualify. There are numerous units attached and detached units in the City that were created prior to annexation or constructed without permits since then. Knowing that they do not meet code the owners usually do not apply for a rental housing license and therefore these units are not inspected for life safety violations. An amnesty program that allowed flexibility on the code requirements in exchange for obtaining a rental license, performing a building code inspection and obtaining permits to correct any life safety violations would improve the quality and safety of this housing. Restrictions: The current ADU requirements are: • the units must be part of the main house, • located on at least a 7,200 sf lot, • provide 1 parking space for units up to 600 sf or2 spaces for larger units, • ADUs can make up no more than 1/3 of the square footage of the house up to a maximum of 1,000 sf, and • an owner must live onsite City Costs: The City would incur the cost of staff time to develop an ordinance, take it through the public approval process and inform the public about the program. There would be ongoing administrative time to review applications. Permit review and inspections would be covered by permit fees. Timing: Due to the impact on Code Enforcement and Rental Housing staff this should not go into effect the same year (2017) as an expansion of the Integrated Pest Management requirements or other new Code Enforcement initiatives. This is a 2017 -18 budget outcome goal, best managed in 2018. Lead Dept: DCD - Code Enforcement and Building Page 12 3. Multi - Family Tax Exemption (MFTE) for Rehabilitation Market: Existing rental multi - family buildings, market and /or affordable. Description: Allows the City to designate targeted urban areas where existing residential structures that are out of compliance with building codes can be rehabilitated in exchange for a tax exemption for 8 years for a market rate project or 12 years for a project with at least 20% affordable units. Restrictions: Must be located within the City's targeted residential area and have been vacant for 12 months or if occupied add at least 4 new units. City Costs: The City and other taxing districts would forego a portion of their share of the property tax increase related to the residential improvements (but not the land value) for 8 or 12 years. The City would also incur the cost of staff time to develop an ordinance and take it through the public approval process. There would be ongoing administrative time to review applications, develop a contract with any approved applicants, issue the certificate of acceptance and monitor conditions of approval. Timing: Tukwila currently does not have any vacant multi - family buildings or multi- family developments that could accommodate an additional 4 units under existing zoning. Until there is a qualifying building this would be a low priority. Lead Dept: Economic Development Page 13 4. Multi - Family Rehabilitation Trust Fund (MFRTF) Market: Existing rental multi - family buildings, market and /or affordable. Description: Allows the City to designate targeted urban areas where existing residential structures that are out of compliance with building codes can be rehabilitated in exchange for a favorable financial incentive loan from the city. Some of the approximately $600,000 per year in property tax which is collected by the City from multi - family complexes would be set aside into a new Multi - Family Rehabilitation Trust Fund administered by the City. Low interest loans from the trust fund would be made to multi - family residential owners to improve their properties. Multi - family properties would not be exempted from paying property tax, thus the City and other taxing districts would not forego their share of the property tax increase related to the residential improvements. Restrictions: Must be located within the City's targeted residential area. City Costs: The City would set aside money from multi - family property tax collection, reducing in kind, the equivalent money that would go into the General Fund. The City would also incur the cost of staff time to develop an ordinance and take it through the public approval process. There would be ongoing administrative time to review applications, develop a contract with any approved applicants, issue the necessary permits and track loan repayments. Timing: Not scheduled. Lead Dept: Economic Development Page 14 5. Tukwila International Boulevard Code Amendments Market: New multi - family construction, owned or rented, market and /or affordable. Description: Tukwila plans to revise the Zoning Code regulations in the TIB neighborhood to continue moving toward the vision first articulated in the 1995 Comprehensive Plan. These changes will be guided by the information gathered and recommendations made at the TIB Worksession February 23 -25 as well as the existing policies in the Comprehensive Plan. Some suggestions from the consultant team include allowing completely residential buildings without a ground floor retail requirement, reducing parking requirements, modifying frontage designs and incentivizing mid -block pedestrian paths. Restrictions: Extensive changes may require additional SEPA review or amendments to the Comprehensive Plan. City Costs: The City would incur the cost of staff time to develop one or more ordinances and take them through the public approval process. We would need to continue the dialog with the community, possibly involving the Community Connectors. Timing: This is a 2017 -18 Planning budget outcome goal. Lead Dept: DCD Page 15 6. Multi - Family Tax Exemption (MFTE) for New Construction Market: New multi - family construction, owned or rented, market and /or affordable. Description: Allows the City to designate targeted urban areas where new residential construction would receive a tax exemption for 8 years for a market rate project or 12 years for a project with at least 20% units affordable to 80% AMI. The ordinance that permitted MFTE in the TUC -TOD district ended in 2016 but in November 2016 CAP indicated an interest in extending it for an additional year. We may want to use another MFTE ordinance as a tool in the TIB district. Restrictions: Must be located within the City's targeted residential area, contain at least4 units and meet any size /unit type restrictions placed by the City. The City can add additional restrictions such as unit mix, unit size or affordable housing levels. City Costs: The City and other taxing districts would forego a portion of their share of the property tax increase related to the new residential construction (but not the land value) for 8 or 12 years. The increase in land value due to redevelopment may partially offset the foregone revenue from the new building. The City would also incur the cost of staff time to develop an ordinance and take it through the public approval process. There would be ongoing administrative time to review applications, develop a contract with any approved applicants, issue the certificate of acceptance and monitor conditions of approval. Timing: An MFTE ordinance for the TIB district could help to incentivize residential development following the Zoning Code updates. Auburn, Burien, Covington, Kent, Newcastle, Renton and SeaTac all have existing MFTE programs. Lead Dept: Economic Development Page 16 7. Housing Options Ordinance - Cottage and Compact Homes Market: New single- family and duplex construction, owned or rented, market and /or affordable. Description: Allows the development of size restricted homes at a greater density than permitted by the underlying zoning. Additional design standards must be met including items like porches and common open space. This would create a lower maintenance, possibly more affordable single family housing product that could appeal to smaller households. Restrictions: The additional density is based on the size of the houses. Design review and an overall project approval would be required. City Costs: The City would incur the cost of staff time to develop an ordinance and take it through the public approval process. Application review would be covered by permit fees. Timing: Homestead Land Trust is no longer pursuing the Riverton United Methodist Church site so we do not have an active applicant for this housing type. Todd Smith, a prior applicant under the Housing Options Program, has indicated his continuing interest in developing under a renewed Housing Options Program. This is a 2017 -18 budget outcome goal. Lead Dept: DCD Page 17 8. Update to Accessory Dwelling Unit Zoning Standards Market: Market rate newly constructed accessory dwelling units (ADUs), attached and detached. Description: Tukwila has permitted ADUs since 1995, however the Zoning Code restrictions limit the number of existing houses and lots that can qualify to construct them. Allowing detached ADUs (backyard cottages) and more flexible standards including a lower minimum lot size could increase development of this housing type. In areas with on- street parking the parking requirement could be reduced. In practice the owner occupancy requirement is very difficult to enforce. Developing design guidelines or prototype designs for detached ADUs could increase their compatibility with the surrounding development. Restrictions: The current ADU requirements are: • the units must be part of the main house, • located on at least a 7,200 sf lot, • provide 1 parking space for units up to 600 sf or2 spaces for larger units, • ADUs can make up no more than 1/3 of the square footage of the house up to a maximum of 1,000 sf, and • an owner must live onsite City Costs: The City would incur the cost of staff time to develop an ordinance, take it through the public approval process and inform the public about the program. Developing design guidelines or prototype designs would require additional staff time. Permit review and inspections would be covered by permit fees. Timing: This should be completed prior to an amnesty on existing ADUs so that they can be evaluated against the updated standards. Lead Dept: DCD - Building Page 18 9. Reducing Low Density Residential Lot Size by Neighborhood or Citywide Market: New market rate single- family construction. Description: During the update of the Housing and Residential Neighborhoods Elements of the Comprehensive Plan in 2015 there was extensive public discussion about possible changes to the one zone, Low Density Residential (LDR), that covers all of Tukwila's single family areas. The Comprehensive Plan calls for an outreach process to involve neighborhood residents in determining which, if any, changes are appropriate for their area with the goals of creating additional quality housing affordable to a broad range of our community. Reducing the minimum lot size to match the platting pattern in a neighborhood would make the existing lots conforming without creating opportunities for new lots. Reducing the minimum lot size below the existing lot sizes makes creation of additional lots possible. Reducing the lot size in LDR to 6,000 sf throughout the City would create development opportunities in some areas while maintaining the simplicity of the Zoning Code. Restrictions: An alternative would be to allow construction on smaller lots only if additional design standards were met. This could help the new houses be more compatible with the neighborhood but would likely increase the development costs reducing affordability. City Costs: The City would incur the cost of staff time to seek input from residents of each neighborhood, and if change is desired develop an ordinance and take it through the public approval process. If design controls are desired there would be additional staff time to develop residential design guidelines. Timing: Several residents of Allentown have submitted comment letters or signed a petition requesting action on this issue. This is a 2017 -18 budget outcome goal. Lead Dept: DCD Page 19 10. Allow Duplexes and Townhomes in Low Density Residential by Neighborhood Market: New duplex and townhome construction, owned or rented, market and /or affordable. Description: During the update of the Housing and Residential Neighborhoods Elements of the Comprehensive Plan in 2015 there was extensive public discussion about possible changes to the one zone, Low Density Residential (LDR), that covers all of Tukwila's single family areas. The Comprehensive Plan calls for an outreach process to involve neighborhood residents in determining which, if any, changes are appropriate for their area with the goals of creating additional quality housing affordable to a broad range of our community. A new hybrid zone would allow for medium density development including single family, duplex and townhouses in areas previously zoned LDR. This could create a more affordable family housing product appealing to smaller households. Upon approval by the neighborhood a rezone process would be initiated. Restrictions: Design standards must be met including items like porches and common open space. City Costs: The City would incur the cost of staff time to seek input from residents of each neighborhood, and if a change to density is desired develop a new Comprehensive Plan /Zoning category and take it through the public approval process. Each area would then need a Comprehensive Plan redesignation /rezone. Timing: Not scheduled. Lead Dept: DCD Page 20 11. Public Private Partnerships Market: New construction, ownership or rental, market and /or affordable. Description: Partnerships with developers allow the City to create flexibility in development regulations in order to achieve a public benefit. These are necessarily done on a case by case basis with the Council weighing the advantages of each development against the modifications requested. Past partnerships implemented through development agreements include Tukwila South, Tukwila Village, and Washington Place. One of Planning's budget outcome goals is to "partner with non - profit housing developers to increase affordable housing options." Restrictions: Development agreements cannot be used in lieu of a rezone or to permit prohibited uses. City Costs: The City would incur the cost of staff time to negotiate an agreement with the developer and take it through the public approval process. Timing: Driven by specific development proposals. Lead Dept: DCD Page 21 12. Tenant Rights Education Market: Tukwila renters in single and multi - family buildings as well as residents in mobile home parks living in owned or rented trailers. Description: Trainings on tenant rights in general and on mobile home tenant rights. Many tenants do not understand their rights to safe, healthy housing. If tenants do not follow correct procedures when asking for improvements or repairs they can risk eviction. Restrictions: We would need to schedule multiple events to reach renters available at different times and cater to different language groups. City Costs: The City would incur the cost of staff time to organize and advertise these trainings put on by the King County Bar Association. It would be most effective to provide language services and childcare during the trainings. We should consider the use of the Community Connectors to spread the word and encourage attendance. Timing: We could combine this with outreach around the Residential Rental Income Discrimination ordinance and the Integrated Pest Management best practices. Lead Dept: Human Services Page 22 13. Mobile Home Park Change of Use Regulations Market: Residents in mobile home parks living in owned or rented trailers where property owners may contemplate a change of use. Description: State law regulates mobile home parks and has few restrictions when it comes to mandatory assistance to park residents when facing a change of use /eviction. Park owners must give one year's notice and the Department of Commerce has grant money available to owners of manufactured homes to assist in moving the structures to another park. Some local jurisdictions have developed additional regulations, such as mandated relocation assistance in the form of information, education and other help such as filling out state housing forms, etc. Restrictions: Because mobile home parks are unlike other housing units in Washington State, local jurisdictions have less ability to regulate these parks than other types of housing. City Costs: The City would incur the cost of staff time to research and develop an ordinance. Should such a program be developed and a park initiate the process of shutting down, additional staff time would be involved in monitoring the property owners' efforts to comply with the ordinance. Timing: Dependent on Council priority; would need to be enacted prior to a park owner initiating closing. Lead Dept: DCD /Human Services Page 23