HomeMy WebLinkAboutPlanning 2021-06-24 Item 4 - Staff Report - Transit-Oriented Development Housing Action PlanCity of Tukwila
Allan Ekberg, Mayor
Department of Community Development - Nora Gierloff,, AICP, Director
STAFF REPORT TO THE PLANNING COMMISSION
FOR JUNE 24, 2021
FILE NUMBER: L20-0108 Housing Action Plan
REQUEST:
Conduct a Public Hearing with the Planning Commission on the Draft
Transit Oriented Development Housing Action Plan. Forward a
recommendation to the City Council.
LOCATION: Transit Oriented Development (TOD) area around the Tukwila
International Boulevard Station
STAFF: Meredith Sampson, AICP Candidate, Associate Planner
ATTACHMENTS: Attachment A: Draft Transit Oriented Development Housing Action Plan
BACKGROUND
In September 2019, the City of Tukwila received a $100,000 grant from the Washington
Department of Commerce to create a Housing Action Plan. The work funded by the grant was
divided into two distinct products.
Grant Purpose
The first product was the development of a Sub -Regional Housing Action Framework, intended
to be a collaborative effort with the cities of Auburn, Burien, Federal Way, Kent, Renton, and
Tukwila. The cities that make up South King County are impacted by many common market
trends and demands. Assessing housing needs through a common framework can help to set
the stage for sub -regional coordination in addressing housing issues. The Sub -Regional
Housing Action Framework gathered data around population, employment, housing
characteristics, and income at the sub -regional level to determine regional housing needs. This
work provides a snapshot of existing housing conditions in South King County and in Tukwila
and does not require Planning Commission approval or adoption.
The second product was the development of a Tukwila -specific Transit Oriented Development
(TOD) Housing Action Plan, which would build upon the results of the sub -regional framework.
ECONorthwest was the consultant selected to prepare both the joint and the Tukwila -specific
portions of the plan. This portion of the plan is subject to Planning Commission's review at a
public hearing.
The primary focus of the TOD Housing Action Plan is to identify pathways to increase
residential building capacity, while minimizing displacement of existing residents in the TIB
Station Area. For the purposes of the Plan, the TIB Station area was defined as properties
Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov
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located within a half -mile walkshed of the Tukwila International Boulevard Link Light Rail
Station. The creation of this plan is consistent with the vision in the TIB District Element and
the goals in the Housing Element of Tukwila's Comprehensive Plan. The TIB District, which
extends from approximately South 138th Street on the north to South 160th Street on the south
and from Military Road and Tukwila International Boulevard on the west to 42nd Avenue South
on the east, is a local center where existing and future land use and infrastructure capacity will
be used to accommodate some of the City's designated future growth. This location for future
growth is consistent with the Puget Sound Regional Council Vision 2040 goals and policies,
and the King County Countywide Planning Policies.
Public Engagement
Public engagement has been a priority throughout this process and has been a joint effort
between the consultant and the City staff. The engagement process began with the creation of
a Public Engagement Plan that took Tukwila's Equity Policy into consideration as engagement
was conducted through stakeholder interviews, focus groups, and a virtual community open
house. Here is a summary of the issues raised during the outreach process:
• Concern throughout the stakeholder interviews and focus groups that there are not
enough affordable multi -bedroom units in Tukwila.
• Attendees of the open house commented that parking requirements can quickly make a
development project infeasible due to the high costs associated with providing surface
parking stalls and the space it takes up, as well as the high cost to build structured
parking. Participants also noted that adjusting parking requirements needs to be a
balancing act -- that parking supply is important to support the diverse mobility needs of
the population, and that localized parking analysis should factor into decisions about
how much parking is needed in an area.
• Many participants brought up the importance of open space in urban areas and that it
contributes to a higher quality of life and helps to build places that contribute to a sense
of community. There was support for more rooftop gardens and recreation space for
children.
• Concern that a lack of housing options and low availability levels seem to be an issue
across the region, and if nothing is done, housing needs could become more dire.
• Overall, most participants stated that they love the community of Tukwila. They have
seen displacement happen and want to be able to continue living in their community
without being priced out.
Plan Objectives
The Draft TOD Housing Action Plan outlines three objectives that meet the requirements of the
Department of Commerce grant. Those objectives express what was heard during the public
engagement process:
• Encourage Higher Density Development,
• Anti -Displacement and Community Stabilization, and
• Station Area Planning & Infrastructure.
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Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov
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Each of these objectives has associated recommended actions for the City to implement at a
later date as it reaches toward attaining these goals. The plan focuses on developing
permanent housing, not shelters or temporary housing.
Supporting documents produced as part of the South King County Housing Action Framework
include: a Housing Strategies Framework; a Housing Context Assessment Methods Memo; a
Housing Policy Assessment; and Fact Packets for each individual City and the sub -region as a
whole. These resources can provide further understanding of the context for the development
of the plan. Links to these documents can be found at the project website:
www.TukwilaWA.gov/housingaction.
On May 27th, 2021, the Planning Commission hosted a work session to discuss the 18 actions
recommended to meet the Plan's objectives of higher density development, anti -displacement
and community stabilization, and station area planning and infrastructure needs. All of these
recommended actions are for the TIB Station Area, with several recommended actions
extending Citywide. The "TIB Station Area" referenced in the Plan refers to parcels within the
City of Tukwila that are zoned Medium Density Residential, High Density Residential, and
Regional Commercial that are within a half -mile walkshed of the Tukwila International
Boulevard Link Light Rail Station.
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Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov
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DISCUSSION
Below are the recommended actions contained in the Draft TOD Housing Action Plan followed
by the Planning Commission's proposed edits developed at the Work Session hosted on May
27th. Plan adoption does not implement any code changes. After adoption of the Plan by the
City Council, staff will look for opportunities to incorporate recommendations into zoning code
and city policy updates.
Objective A: Encourage Higher Density Development
Al. Modify Unit Mix Requirements: Modify Unit Mix Requirements Focusing on Share
of 2 -Bedroom Units.
Next Steps:
▪ Consider modifying unit mix standards in the zoning code to target and regulate
minimum thresholds of two-bedroom units, as opposed to limiting the share of studio
units, to support more family -sized multifamily units in the TIB Station Area.
▪ The City could consider a requirement that at least 25% of new units in a project in the
TIB Station Area are 2- or 3 -bedrooms instead of regulating unit mix by a limitation on
studio units in the current code.
Planning Commission Recommendation: Keep as written.
A2. Reduce Parking Ratios to 1.0 Stall Per Unit in HDR and NCC Zones and in URO
District.
Next Steps:
• The City should consider reducing parking requirements to 1.0 stall per unit for all zones
and unit types in the TIB Station Area. Reducing the parking requirements in mixed-use
developments in the NCC zone or URO district will help support the development of
larger units, make more development feasible, and increase the amount of housing
available in the TIB area.
Planning Commission Recommendation: Adjust recommendation to reduce parking ratios to
1.0 stall per unit in the HDR and NCC Zones and URO District for studios and 1 -bedroom
apartments, and either 1.5 or 2.0 stalls per unit for 2+ bedroom apartments.
Proposed New Language:
A2. Reduce Parking Ratios to 1.0 Stalls Per Unit in HDR and NCC Zones and in URO District
for studio and 1 -bedroom units and either 1.5 or 2.0 stalls per unit for 2+ bedroom apartments.
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Next Steps
▪ The City should consider reducing parking requirements to 1.0 stall per unit for all zoncs
and unit typos in the TIB studio and one -bedroom units within the TIB Station Area.
Reducing the parking requirements in mixed-use developments in the NCC zone or
URO District will help support the development of larger units, make more development
feasible, and increase the amount of housing available.
A3. Modify Parking Standards for 4 -over -1 Development
Next Steps:
▪ The City should eliminate the structured parking requirement as an option in the Urban
Renewal Overlay so that 4 -over -1 podium prototypes can be developed in the TIB
Corridor. This change would encourage higher density development and mixed-use
development with commercial space and make development of new housing in the TIB
much more feasible.
▪ The City should consider regulating 4 -over -1 development in the zoning code without
that additional restrictions that come along with accessing additional density through the
Urban Renewal Overlay.
Planning Commission Recommendation: leave language as is and discuss at Public Hearing.
A4. Adjust Recreational Space Requirements
Next Steps:
▪ The City should consider revising the approach to regulating recreational space
requirements to regulate by lot area, rather than per residential unit.
The City could consider requiring that 10% of the lot area be dedicated to recreational
space.
The City could also create minimum and maximum recreational space requirements to
ensure that households in developments have access to a minimum amount of
recreational space but also to ensure the requirements do not disproportionately impact
higher density development in the station area through a maximum.
▪ The City could also consider developing a fee -in -lieu structure to satisfy open space
requirements. This fee -in -lieu structure would require a future study and analysis to
calibrate the fee rate to not be cost prohibitive to development. The fee rate should be
calibrated along with any modification to on-site open space requirements.
Planning Commission Recommendation: Keep as written.
Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov
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A5. Reduce Step Back Requirements
Next Steps
▪ The City should consider removing or modifying step back requirements for
development sites adjacent to LDR zones.
If the City chooses to include some form of step back requirements, it should consider
requiring the step backs beginning on the fourth or fifth floor to reduce the negative
impact to development feasibility while also mitigating the impact of higher density
podium development on adjacent LDR zones.
Planning Commission Recommendation: Adjust recommendation to focus on modifying the
requirements, not removing them.
Proposed New Language:
Next Steps
• The City should consider removing or modifying step back requirements for
development sites adjacent to LDR zones.
▪ If the City chooses to include some form of step back requirements, it should consider
requiring the step backs beginning on the fourth or fifth floor to reduce the negative
impact to development feasibility while also mitigating the impact of higher density
podium development on adjacent LDR zones.
A6. Promote Site Assembly for Smaller Parcels
Next Steps:
▪ The City could explore opportunities to support and negotiate land sales between
different property owners and a developer.
▪ The City could work with a real estate broker to track data on properties that are
available for sale in the TIB Station Area to help inform land assembly strategies. The
City could then use this information to work with developers and help facilitate land
transactions that support assembly.
Planning Commission Recommendation: Keep as written.
Objective B: Anti -Displacement and Community Stabilization
B1. Consider a 12 -year MFTE Program
Next Steps:
▪ The City should consider developing and adopting a 12 -year MFTE program that
requires the provision of affordable units for the duration of the tax exemption.
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Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov
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The City could consider at least 20% set-aside requirement for units to be available at
80% or below AMI for the MFTE program.
The City should pursue further analysis and look to policies of neighboring cities to
determine the appropriate targets for the income requirement and affordable units,
before passing an ordinance to authorize 12 -year MFTE in the TIB Station Area. The
City will want to ensure that set-aside targets and affordable levels are comparable to
other cities within the South King County market to make enrollment in the MFTE
program attractive to developers.
▪ The City should conduct a financial analysis of the impacts of potential tax exemptions
through an MFTE program on the City's budget and service and infrastructure delivery.
Planning Commission Recommendation: Adjust the recommendation to spell out Multi -Family
Tax Exemption, and keep Next Steps as written.
Proposed New Language: 81. Consider a 12 -year Multi -Family Tax Exemption (MFTE)
Program.
B2. Identify Opportunities to Increase Home Ownership
Next Steps:
• The City should work with South King Housing and Homelessness Partners (SKHHP)
and regional partners to collaborate with the Washington State Housing Finance
Commission to develop area -specific down payment assistance funding and programs
for South King County in the same way that is done with A Regional Coalition for
Housing (ARCH) in East King County, in Pierce County, and in Tacoma.
City staff could also work with community organizations, landlords, and housing
providers to encourage referrals to homebuyer education programs sponsored by the
Washington State Housing Finance Commission and the Washington Homeownership
Resource Center.
Planning Commission Recommendation: Add a new bullet under Next Steps to include
identifying opportunities to promote development of townhomes.
Proposed New Language: 82. Identify Opportunities to Increase Home Ownership
Next Steps:
▪ Identify opportunities to promote townhouse development.
Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • website: TukwilaWA.gov
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B3. Support Community and Faith -Based Institutions' Efforts to Develop Affordable
Housing
Next Steps:
▪ The City should offer an expedited or simplified development review processes, so that
community and faith -based institutions.
• The City could establish an ombudsman to act as a development point of contact for
non -experts or create a development guide that outlines the necessary steps and
actions for non -experts to walk through. The City of Portland recently created a two-part
development guide specifically for faith -based institutions who want to turn their
underutilized property into mission -serving affordable housing.
The City should offer reduced permitting costs, including fee waivers to lessen the need
for development expertise and financial resources necessary to fund predevelopment.
Planning Commission Recommendation: Adjust language of recommendation to remove the
option of an expedited review process, or remove the recommendation from the plan.
Proposed New Language: 83. Support Community and Faith -Based Institutions' Efforts to
Develop Affordable Housing
Next Steps:
• The City should could offer an cxpcdited or a simplified development review processes
for so that community and faith -based institutions.
The City could establish an ombudsman to act as a development point of contact for
non -experts or create a development guide that outlines the necessary steps and
actions for non -experts to walk through. The City of Portland recently created a two-part
development guide specifically for faith -based institutions who want to turn their
underutilized property into mission -serving affordable housing.
The City should offer reduced permitting costs, including fee waivers to lessen the need
for development expertise and financial resources necessary to fund predevelopment.
B4. Expand Tenant Supports
Next Steps:
• The City should strengthen enforcement of fair -housing and anti -discrimination policies.
The City could explore additional requirements beyond source of income regulations to
support low -barrier application screening (e.g., Fair Choice Housing or Ban the Box
efforts).
▪ The City could consider a good -landlord incentive program to benefit landlords (and
tenants) when properties routinely pass inspections. These types of incentives do not
need to have costs: inspecting less often or inspecting fewer units can actually save the
City's code enforcement time and resources.
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The City could create tenant's rights and education resources (e.g., funding for
RentWell programs).
The City should ensure language translation of tenant information for increased
education is available for immigrant and refugee communities.
Planning Commission Recommendation: Add a new bullet under next Steps to include
language that supports landlords in improving the quality of their properties.
Proposed New Language: 84. Expand Tenant Supports
Next Steps:
Seek out funding or technical assistance to encourage landlords to improve their rental
properties.
B5. Monitor and Track Regulated Affordable Housing
Next Steps
• The City should ensure that it has strong, ongoing relationships with, and proper contact
information for, all the mission -driven developers and affordable housing property
owner -operators in the City.
• The City should work with these housing providers to ensure data sharing is possible. It
could consider setting up a reporting agreement with these organizations where they
provide affordability restriction information and expiration deadlines. Along with strong
partnerships with these agencies, tracking this information would allow the City to create
a database that monitors upcoming expirations so it can prepare in advance of
affordability expirations.
• The City should ensure it is familiar with the various funding sources that are available
to support recapitalization and rehabilitation of its existing multifamily housing stock,
including the Low -Income Housing Tax Credit, HUD Funding (such as CDBG or HOME
funds), funding opportunities through the Washington State Housing Finance
Commission, and funding programs through the Washington State Department of
Commerce.
Planning Commission Recommendation: Keep language as written.
B6. Monitor and Track Unregulated Affordable Housing
Next Steps:
• The City should continue to support SKHHP in developing a sub -regional approach to
monitoring and tracking unregulated affordable housing.
The City could consider dedicating staff resources to create a database of information to
track potential low-cost market rentals and track information overtime.
Planning Commission Recommendation: Keep language as written.
Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov
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B7. Offer Tools and Strategies for Housing Preservation
Next Steps:
• The City should explore a policy or ordinance that requires landlords to provide
advanced notice when they intend to sell a property containing units that rent below a
certain income level. If the City has a robust database that allows it to monitor and track
redevelopment risk, it can be ready to contact landlords and work with them when they
are looking to sell. Strong relationships — not only with these landlords but also with
nonprofit affordable housing developers who can be ready to act — will be critical.
Advanced notice to sell can be helpful in a fast-moving market when cash buyers and
investors are present. The City of Auburn's "Notice of Intent to Sell" is a great example
of such a policy.
If funding sources and restrictions allow, the City should consider expanding the Human
Services Department's Minor Home Repair Grant program to qualified multifamily
property owners. The Department of Community Development should collaborate with
the Human Services Department to gauge this program's effectiveness and see if there
are opportunities to tweak, expand, or pilot changes in the TIB Station area.
Planning Commission Recommendation: Adjust language of recommendation by removing the
first bullet under Next Steps that concerns exploring a policy or ordinance that requires notice
from property owners of intent to sell.
Proposed New Language: 87. Offer Tools and Strategies for Housing Preservation
Next Steps:
• The City should explore a policy or ordinance that requires landlords to provide
advanced noticc whcn thcy intend to sell a property containing units that rent below a
nonprofit affordable housing developers who can be ready to act will be critical.
Advanced notice to sell can be helpful in a fast moving market when cash buyers and
of such a policy.
If funding sources and restrictions allow, the City should consider expanding the Human
Services Department's Minor Home Repair Grant program to qualified multifamily
property owners. The Department of Community Development should collaborate with
the Human Services Department to gauge this program's effectiveness and see if there
are opportunities to tweak, expand, or pilot changes in the TIB Station area.
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B8. Evaluate a Preservation Funding Program in Exchange for Affordability
Restrictions
Next Steps:
• The City could engage with regional affordable housing partners to explore the efficacy
and funding sources of a preservation and rehabilitation incentive program for existing
housing.
• The City could continue partnerships in South King County and work with other cities
and community-based organizations to establish a regional rehabilitation fund through
the SKHHP.
▪ The City should partner with mission -oriented acquisition funds like the REDI Fund or
Sound Transit's Transit -Oriented Development Revolving Loan Fund. These funds
stand ready to deploy capital aimed at acquiring and rehabilitating low-cost market
rentals and create new, affordable units.
Planning Commission Recommendation: Adjust language of recommendation to include that
there should be a contract in place if partnerships are formed.
Proposed New Language: 88. Evaluate a Preservation Funding Program in Exchange for
Affordability Restrictions
Next Steps:
▪ The City could engage with regional affordable housing partners through contractual
agreements to explore the efficacy and funding sources of a preservation and
rehabilitation incentive program for existing housing.
▪ The City could continue partnerships in South King County and work with other cities
and community-based organizations to establish a regional rehabilitation fund through
the SKHHP.
The City should partner with mission -oriented acquisition funds like the REDI Fund or
Sound Transit's Transit -Oriented Development Revolving Loan Fund. These funds
stand ready to deploy capital aimed at acquiring and rehabilitating low-cost market
rentals and create new, affordable units.
B9. Develop TIB Community Economic Development Strategies
Next Steps:
■ The City should include developing TIB community economic development strategies as
part of the upcoming Citywide Economic Development Strategy.
• The City should explore grant opportunities to fund the implementation of community
economic development strategies that will be developed as part of the forthcoming
Citywide Economic Development Strategy.
Planning Commission Recommendation: Keep as written.
Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov
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Objective C: Station Area Planning and Infrastructure
C1. Create a Development Framework and Planned Street Network for Parcels South of
SR 518
Next Steps:
® The City should define staff and financial resources as part of the Department of
Community Development's work planning over the next two fiscal years to create a
development framework and street plan for the future development area South of SR
518
▪ The City could consider allocating local fiscal recovery funds from the American Rescue
Plan to fund and support the creation of a development framework and street plan.
Having a development framework and street plan in place would make Tukwila more
competitive for additional federal resources that might come from a future infrastructure
funding bill that could help support funding of pedestrian bridge that better connects
transit stations with current and future development opportunities.
Planning Commission Recommendation: Adjust language of recommendation to incorporate
flexibility within a future planned street network.
Proposed New Language: C1. Create a Development Framework and Planned Street Network
for Parcels South of SR 518
Next Steps:
▪ The City should define staff and financial resources as part of the Department of
Community Development's work planning over the next two fiscal years to create a
development framework and street plan for the future development area South of SR
518 that remains flexible to future development needs in the area.
▪ The City could consider allocating local fiscal recovery funds from the American Rescue
Plan to fund and support the creation of a development framework and street plan.
Having a development framework and street plan in place would make Tukwila more
competitive for additional federal resources that might come from a future infrastructure
funding bill that could help support funding of pedestrian bridge that better connects
transit stations with current and future development opportunities.
C2. Create a TIB Station Area Parking Strategy
Next Steps:
▪ The City should explore a district parking strategy as part of a development framework
for the area south of SR 518.
▪ The City should explore allowances in the zoning code to support shared parking
between development projects as part of a development framework.
Planning Commission Recommendation: Keep as written.
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Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov
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C3. Connect the Station Area to Parcels South of SR 518
Next Steps:
■ The City should continue to collaborate with the Washington State Department of
Transportation (WSDOT) and Sound Transit to improve pedestrian connectivity
between current and future transit stations to support transit -oriented development in
the area south of SR 518.
■ The City should collaborate with WSDOT and Sound Transit to explore opportunities for
funding through infrastructure funding identified in the American Rescue Plan and a
potential forthcoming infrastructure spending bill.
Planning Commission Recommendation: Keep as written.
RECOMMENDATION
After considering input received at the Public Hearing, the Planning Commission should
forward their recommended draft of the Transit Oriented Development Housing Action Plan to
City Council. This item is scheduled to move to Council Committee on July 19th, the Committee
of the Whole on July 26th, and the Regular Council Meeting on August 2nd. Per the grant
deadlines from the Department of Commerce, this item cannot be rescheduled to a later date.
Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov
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