Loading...
HomeMy WebLinkAboutPCD 2022-10-03 Item 1D - Grant Acceptance - WA State Department of Commerce Grant for Middle HousingCity of Tukwila Allan Ekberg, Mayor Department of Community Development - Nora Gierloff, AICP, Director INFORMATIONAL MEMORANDUM TO: Planning and Community Development Committee FROM: Nora Gierloff, AICP, Community Development Director BY: Nancy Eklund, AICP, Long Range Planning Manager CC: Mayor Ekberg DATE: September 15, 2022 SUBJECT: Middle Housing Grant Acceptance (Washington Department of Commerce) ISSUE Should the City accept a grant of $130,000 from the Washington Department of Commerce to support analysis for and development of the City's Comprehensive Plan along with an exploration of allowing additional housing types within single family zones? BACKGROUND The Washington Department of Commerce typically provides grant funding to jurisdictions to assist in the development of their periodic Comprehensive Plan Updates. The City has received a grant of $130,000 from Commerce to cover the following three items: 1. A required analysis of historic and existing racial equity in the City's housing and regulatory framework, and development of associated anti -displacement policies', 2. An analysis and consideration of whether the City might want to adopt policies and code language to allow "Middle Housing" on at least 30 percent of the lots (or the area) currently zoned as single family residential; and 3. Support for local community-based organizations to bring historically underrepresented voices into discussions about housing needs and supply. The grant will pay $100,000 for the first two items and $30,000 to facilitate the participation of community-based organizations. The City would secure consultant assistance to develop the Plan and associated zoning ordinances with these grant funds, as well as develop agreements with community- based organizations to encourage participation. The $130,000 grant is estimated to pay for about half of the Housing element updates required in this Plan update cycle. RCW 36.70A.070(2)(e) through (h) Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov 39 Planning and Community Development Committee 2022-2023 Washington Dept of Commerce — Middle Housing Grant Acceptance 9/15/22 Page 2 of 4 In addition to the grant described above a second non-competitive grant for $125,000 will be available to Tukwila for other aspects of the Comprehensive Plan update (the application is due 9/30/2022). This funding would allow for consultant assistance in completing other required updates to the Plan, as well as support development of associated zoning ordinances. The City was awarded the Middle Housing grant on July 18th and, due to delays in Commerce, received the agreement for signature in mid-September. This delay will push out the dates that grant deliverables are due, however all work to be paid under this agreement must be completed by June 30, 2023. For the Middle Housing portion of the grant, the minimum deliverables to be included are • the public engagement plan and results; • the racial equity analysis report and proposed Housing element policy amendments to address anti -displacement and other issues identified in the Racial Equity analysis; and • a staff report identifying possible amendments needed to support Middle Housing in Tukwila, including possible changes to policies, regulations, fee structures, incentives, permitting procedures to be considered in the Plan update; and • draft code language to: o increase density in proximity to transit nodes; and o authorize Middle Housing types and ADUs on lots currently zoned as single family. Commerce recognizes that elected officials will determine whether the proposed amendments regarding Middle Housing are implemented. The City's grant application and Commerce's Q & A regarding the grant are attached. DISCUSSION The Washington Department of Commerce Middle Housing grant was facilitated by the legislature's desire to expand housing supply and options in Washington. Last year the legislature considered, but did not pass, a mandatory requirement that all cities allow Middle Housing types in current single family zones. Middle Housing, also known as "infill housing," includes a range of modestly -sized buildings with multiple units — duplexes through six-plexes, townhouses, courtyard apartments, cottage housing, and stacked flats. These units are designed to be compatible in scale and form with detached single- family homes — typically two to three stories in height and located within walkable neighborhoods. Middle Housing units would provide greater diversity of options in terms of housing form and affordability, as well as provide new opportunities for home ownership. In addition to providing funds to complete some of the required portions of the Comprehensive Plan Housing elements, the grant is intended to provide communities with funds to study and evaluate if Middle Housing policies could be adopted locally. Several Washington cities have already adopted such programs, or are currently considering, modifications to Comprehensive Plan and code language to provide these infill housing development types, along with the design standards to ensure compatibility with existing single family zones (see this link for more information on the range of housing types being considered). Several out of state communities have also adopted such changes, including Minneapolis, Portland, and in California. 40 Planning and Community Development Committee 2022-2023 Washington Dept of Commerce — Middle Housing Grant Acceptance 9/15/22 Page 3 of 4 In Tukwila, the Low Density Residential zone (LDR) allows single family development only, except for lots that can add accessory dwelling units if they meet the site development requirements. The LDR zone (shown in light yellow on the adjacent map) represents 36% of the City's land and 90% of the exclusively residentially zoned land; the grant would require that at least a third of that area be considered for middle housing. In the past, Tukwila has experimented with a cottage housing ordinance to allow more density in single family zones, though unfortunately no projects were built while it was in effect. Another example would be the Southard development by the Homestead Community Land Trust at the Riverton Park United Methodist Church property which was approved through a development agreement.2 The grant does not require that the City adopt zoning to allow new housing types in single family zones, however, the Council should determine if that potential outcome is something that should be evaluated at this point. The advantage of exploring development of these regulations now is that Tukwila could get ahead of possible future mandates and craft them in a way that best meets local needs and character. If reacting to a state mandate down the road, the City may not have the time, funding, or flexibility to exercise the desired local control. There may also be benefits to engaging early with community-based organizations so that their input into the Plan is mobilized for input on other elements. Downsides to accepting the grant and taking on this work are the tight timeline for deliverables, the difficult consulting climate, and the already full DCD workplan. If we did not accept the grant the City would need to identify other funding and absorb the work required to perform the racial equity analysis and development of anti -displacement policies. FINANCIAL IMPACT This grant would have no impact on city funding and would support work that the City is required to complete as a part of its Comprehensive Plan 2024 Update (the racial equity analysis and development of anti -displacement policies, and the supportive outreach to community-based organizations who have been historically not encouraged or included in discussions about Tukwila's future and its housing needs). 2This development provided duplexes, arranged in a cottage style around a central open space. 41 Planning and Community Development Committee 2022-2023 Washington Dept of Commerce — Middle Housing Grant Acceptance 9/15/22 Page 4 of 4 RECOMMENDATION Forward this item to the Committee of the Whole on October 10, 2022, and the Regular Meeting on October 17, 2022. This action will authorize the Mayor to sign the grant agreement with the Washington Department of Commerce to accept grant funding in support of the City's Comprehensive Plan and to analyze housing and land use options the City could consider in addressing local housing issues. Attachments: • Grant Agreement between Washington Department of Commerce and the City of Tukwila for the Middle Housing Grant for a 7/1/22 to 6/30/23 grant cycle. • City of Tukwila grant application & Mayor's Letter • Washington Department of Commerce, Middle Housing Grant Q&A, May 26, 2022. • 2024-2044 Comprehensive Plan Update, Middle Housing Grant Acceptance - presentation 42 ®M. Washington State !ij Commerce Interagency Agreement with City of Tukwila through Growth Management Services For Start date: Middle Housing Grant Date of Execution 43 TABLE OF CONTENTS Special Terms and Conditions 1. Authority 1 2. Contract Management 1 3. Compensation 1 4. Billing Procedures and Payment 1 5. Insurance 2 6. Subcontractor Data Collection 2 7. Order of Precedence 2 General Terms and Conditions 1. Definitions 3 2. All Writings Contained Herein 3 3. Amendments 3 4. Assignment 3 5. Confidentiality and Safeguarding of Information 3 6. Copyright 4 7. Disputes 4 8. Governing Law and Venue 4 9. Indemnification 4 10. Licensing, Accreditation and Registration 5 11. Recapture 5 12. Records Maintenance 5 13. Savings 5 14. Severability 5 15. Subcontracting 5 16. Survival 6 17. Termination for Cause 6 18. Termination for Convenience 6 19. Termination Procedures 6 20. Treatment of Assets 7 21. Waiver 7 Attachment A, Scope of Work Attachment B, Budget 44 FACE SHEET Contract Number: 23-63326-027 Washington State Department of Commerce Local Government Division Growth Management Services Transit -Oriented Development Implementation (TODI) Grant 1. Contractor City of Tukwila 6300 Southcenter Blvd, Suite #100 Tukwila, WA 98188 2. Regional planner Catherine McCoy Senior Planner 360-280-3147 catherine.mccoy@commerce.wa.gov N/A 3. Contractor Representative Nancy Eklund, AICP Long Range Planning Manager 206-433-7141 Nancy.Eklund@TukwilaWA.gov 4. COMMERCE Representative Shane Hope PO Box 42525 Senior Planner 1011 Plum Street SE (360) 725-3127 Olympia Washington shane.hope@commerce.wa.gov 98504-2525 5. Contract Amount $130,000 6. Funding Source Federal: ❑ State: /1 Other: ❑ N/A: ❑ 7. Start Date Date of Execution 8. End Date June 30, 2023 9. Federal Funds (as applicable) Federal Agency: CFDA Number NA NA NA 10. Tax ID # NA 11. SWV # SWV0018023 12. UBI # 179-000-208 13. DUNS # NA 14. Contract Purpose Implementation of Middle Housing grant for the purpose of funding actions needed to evaluate the adoption of middle housing types on thirty percent (30%) or more of lots that, before this work, only allowed single family development. 15. Signing Statement COMMERCE, defined as the Department of Commerce, and the Contractor, as defined above, acknowledge and accept the terms of this Contract and Attachments and have executed this Contract on the date below and warrant they are authorized to bind their respective agencies. The rights and obligations of both parties to this Contract are governed by this Contract and the following documents hereby incorporated by reference: Attachment "A" — Scope of Work and Attachment "B" — Budget. FOR CONTRACTOR FOR COMMERCE Allen Ekberg, Mayor City of Tukwila Mark K. Barkley, Assistant Director Local Government Division Date APPROVED AS TO FORM ONLY BY ASSISTANT ATTORNEY GENERAL 08/22/2019. APPROVAL ON FILE. Date "' 45 46 SPECIAL TERMS AND CONDITIONS INTERAGENCY AGREEMENT STATE FUNDS 1. AUTHORITY COMMERCE and Contractor enter into this Contract pursuant to the authority granted by Chapter 39.34 RCW. 2. CONTRACT MANAGEMENT The Representative for each of the parties shall be responsible for and shall be the contact person for all communications and billings regarding the performance of this Contract. The Representative for COMMERCE and their contact information are identified on the Face Sheet of this Contract. The Representative for the Contractor and their contact information are identified on the Face Sheet of this Contract. 3. COMPENSATION COMMERCE shall pay an amount not to exceed one -hundred and thirty thousand dollars ($130,000) for the performance of all things necessary for or incidental to the performance of work under this Contract as set forth in the performance-based Scope of Work (Attachment A) and Budget (Attachment B). 4. BILLING PROCEDURES AND PAYMENT COMMERCE will pay Contractor upon acceptance of services provided and receipt of properly completed invoices, which shall be submitted to the Representative for COMMERCE not more often than quarterly. The parties agree this is a performance-based contract intended to produce the deliverables identified in Scope of Work (Attachment A). Payment of any invoice shall be dependent upon COMMERCE'S acceptance of Contractor's performance and/or deliverable. The invoices shall describe and document, to COMMERCE's satisfaction, a description of the work performed, the progress of the project, and fees. The invoice shall include the Contract Number 23-63326-027. Payment shall be considered timely if made by COMMERCE within thirty (30) calendar days after receipt of properly completed invoices. Payment shall be sent to the address designated by the Contractor. COMMERCE may, in its sole discretion, terminate the Contract or withhold payments claimed by the Contractor for services rendered if the Contractor fails to satisfactorily comply with any term or condition of this Contract. No payments in advance or in anticipation of services or supplies to be provided under this Agreement shall be made by COMMERCE. The grantees must invoice for all expenses by June 17, 2023. All contracts with community based organizations must be submitted by June 17, 2023. COMMERCE will pay Contractor for costs incurred prior to the start date of this Agreement, if such costs would have been allowable on or after July 1, 2022. To be allowable, such costs must be limited to the completion of tasks and deliverables outlined in the Scope of Work (Attachment A). Duplication of Billed Costs The Contractor shall not bill COMMERCE for services performed under this Agreement, and COMMERCE shall not pay the Contractor, if the Contractor is entitled to payment or has been or will be paid by any other source, including grants, for that service. Disallowed Costs The Contractor is responsible for any audit exceptions or disallowed costs incurred by its own organization or that of its subcontractors. State of Washington Interagency Agreement Updated August 2019 Department of Commerce Page 1 47 48 SPECIAL TERMS AND CONDITIONS INTERAGENCY AGREEMENT STATE FUNDS 5. INSURANCE Each party certifies that it is self-insured under the State's or local government self-insurance liability program, and shall be responsible for losses for which it is found liable. 6. SUBCONTRACTOR DATA COLLECTION Contractor will submit reports, in a form and format to be provided by Commerce and at intervals as agreed by the parties, regarding work under this Agreement performed by subcontractors and the portion of funds expended for work performed by subcontractors, including but not necessarily limited to minority-owned, woman -owned, and veteran -owned business subcontractors. "Subcontractors" shall mean subcontractors of any tier. 7. ORDER OF PRECEDENCE In the event of an inconsistency in this Contract, the inconsistency shall be resolved by giving precedence in the following order: • Applicable federal and state of Washington statutes and regulations • Special Terms and Conditions • General Terms and Conditions • Attachment A — Scope of Work • Attachment B — Budget State of Washington Interagency Agreement Updated August 2019 Department of Commerce Page 2 GENERAL TERMS AND CONDITIONS INTERAGENCY AGREEMENT STATE FUNDS 1. DEFINITIONS As used throughout this Contract, the following terms shall have the meaning set forth below: A. "Authorized Representative" shall mean the Director and/or the designee authorized in writing to act on the Director's behalf. B. "COMMERCE" shall mean the Department of Commerce. C. "Contract" or "Agreement" means the entire written agreement between COMMERCE and the Contractor, including any attachments, documents, or materials incorporated by reference. E-mail or facsimile transmission of a signed copy of this contract shall be the same as delivery of an original. D. "Contractor" shall mean the entity identified on the face sheet performing service(s) under this Contract, and shall include all employees and agents of the Contractor. E. "Personal Information" shall mean information identifiable to any person, including, but not limited to, information that relates to a person's name, health, finances, education, business, use or receipt of governmental services or other activities, addresses, telephone numbers, social security numbers, driver license numbers, other identifying numbers, and any financial identifiers. F. "State" shall mean the state of Washington. G. "Subcontractor" shall mean one not in the employment of the Contractor, who is performing all or part of those services under this Contract under a separate contract with the Contractor. The terms "subcontractor" and "subcontractors" mean subcontractor(s) in any tier. 2. ALL WRITINGS CONTAINED HEREIN This Contract contains all the terms and conditions agreed upon by the parties. No other understandings, oral or otherwise, regarding the subject matter of this Contract shall be deemed to exist or to bind any of the parties hereto. 3. AMENDMENTS This Contract may be amended by mutual agreement of the parties. Such amendments shall not be binding unless they are in writing and signed by personnel authorized to bind each of the parties. 4. ASSIGNMENT Neither this Contract, work thereunder, nor any claim arising under this Contract, shall be transferred or assigned by the Contractor without prior written consent of COMMERCE. 5. CONFIDENTIALITY AND SAFEGUARDING OF INFORMATION A. "Confidential Information" as used in this section includes: i. All material provided to the Contractor by COMMERCE that is designated as "confidential" by COMMERCE; ii. All material produced by the Contractor that is designated as "confidential" by COMMERCE; and iii. All personal information in the possession of the Contractor that may not be disclosed under state or federal law. B. The Contractor shall comply with all state and federal laws related to the use, sharing, transfer, sale, or disclosure of Confidential Information. The Contractor shall use Confidential Information solely for the purposes of this Contract and shall not use, share, transfer, sell or disclose any Confidential Information to any third party except with the prior written consent of COMMERCE or as may be required by law. The Contractor shall take all necessary steps to assure that Confidential Information is safeguarded to prevent unauthorized use, sharing, transfer, sale or disclosure of Confidential Information or violation of any state or federal laws related thereto. Upon request, the Contractor shall provide COMMERCE with its policies and procedures on confidentiality. State of Washington Interagency Agreement Updated August 2019 Department of Commerce Page 3 49 GENERAL TERMS AND CONDITIONS INTERAGENCY AGREEMENT STATE FUNDS COMMERCE may require changes to such policies and procedures as they apply to this Contract whenever COMMERCE reasonably determines that changes are necessary to prevent unauthorized disclosures. The Contractor shall make the changes within the time period specified by COMMERCE. Upon request, the Contractor shall immediately return to COMMERCE any Confidential Information that COMMERCE reasonably determines has not been adequately protected by the Contractor against unauthorized disclosure. C. Unauthorized Use or Disclosure. The Contractor shall notify COMMERCE within five (5) working days of any unauthorized use or disclosure of any confidential information, and shall take necessary steps to mitigate the harmful effects of such use or disclosure. 6. COPYRIGHT Unless otherwise provided, all Materials produced under this Contract shall be considered "works for hire" as defined by the U.S. Copyright Act and shall be owned by COMMERCE. COMMERCE shall be considered the author of such Materials. In the event the Materials are not considered "works for hire" under the U.S. Copyright laws, the Contractor hereby irrevocably assigns all right, title, and interest in all Materials, including all intellectual property rights, moral rights, and rights of publicity to COMMERCE effective from the moment of creation of such Materials. "Materials" means all items in any format and includes, but is not limited to, data, reports, documents, pamphlets, advertisements, books, magazines, surveys, studies, computer programs, films, tapes, and/or sound reproductions. "Ownership" includes the right to copyright, patent, register and the ability to transfer these rights. For Materials that are delivered under the Contract, but that incorporate pre-existing materials not produced under the Contract, the Contractor hereby grants to COMMERCE a nonexclusive, royalty - free, irrevocable license (with rights to sublicense to others) in such Materials to translate, reproduce, distribute, prepare derivative works, publicly perform, and publicly display. The Contractor warrants and represents that the Contractor has all rights and permissions, including intellectual property rights, moral rights and rights of publicity, necessary to grant such a license to COMMERCE. The Contractor shall exert all reasonable effort to advise COMMERCE, at the time of delivery of Materials furnished under this Contract, of all known or potential invasions of privacy contained therein and of any portion of such document which was not produced in the performance of this Contract. The Contractor shall provide COMMERCE with prompt written notice of each notice or claim of infringement received by the Contractor with respect to any Materials delivered under this Contract. COMMERCE shall have the right to modify or remove any restrictive markings placed upon the Materials by the Contractor. 7. DISPUTES In the event that a dispute arises under this Agreement, it shall be determined by a Dispute Board in the following manner: Each party to this Agreement shall appoint one member to the Dispute Board. The members so appointed shall jointly appoint an additional member to the Dispute Board. The Dispute Board shall review the facts, Agreement terms and applicable statutes and rules and make a determination of the dispute. The Dispute Board shall thereafter decide the dispute with the majority prevailing. The determination of the Dispute Board shall be final and binding on the parties hereto. As an alternative to this process, either of the parties may request intervention by the Governor, as provided by RCW 43.17.330, in which event the Governor's process will control. 8. GOVERNING LAW AND VENUE This Contract shall be construed and interpreted in accordance with the laws of the state of Washington, and any applicable federal laws, and the venue of any action brought hereunder shall be in the Superior Court for Thurston County. 9. INDEMNIFICATION Each party shall be solely responsible for the acts of its employees, officers, and agents. State of Washington Interagency Agreement Updated August 2019 Department of Commerce Page 4 50 GENERAL TERMS AND CONDITIONS INTERAGENCY AGREEMENT STATE FUNDS 10. LICENSING, ACCREDITATION AND REGISTRATION The Contractor shall comply with all applicable local, state, and federal licensing, accreditation and registration requirements or standards necessary for the performance of this Contract. 11. RECAPTURE In the event that the Contractor fails to perform this Contract in accordance with state laws, federal laws, and/or the provisions of this Contract, COMMERCE reserves the right to recapture funds in an amount to compensate COMMERCE for the noncompliance in addition to any other remedies available at law or in equity. Repayment by the Contractor of funds under this recapture provision shall occur within the time period specified by COMMERCE. In the alternative, COMMERCE may recapture such funds from payments due under this Contract. 12. RECORDS MAINTENANCE The Contractor shall maintain books, records, documents, data and other evidence relating to this contract and performance of the services described herein, including but not limited to accounting procedures and practices that sufficiently and properly reflect all direct and indirect costs of any nature expended in the performance of this contract. The Contractor shall retain such records for a period of six (6) years following the date of final payment. At no additional cost, these records, including materials generated under the contract, shall be subject at all reasonable times to inspection, review or audit by COMMERCE, personnel duly authorized by COMMERCE, the Office of the State Auditor, and federal and state officials so authorized by law, regulation or agreement. If any litigation, claim or audit is started before the expiration of the six (6) year period, the records shall be retained until all litigation, claims, or audit findings involving the records have been resolved. 13. SAVINGS In the event funding from state, federal, or other sources is withdrawn, reduced, or limited in any way after the effective date of this Contract and prior to normal completion, COMMERCE may suspend or terminate the Contract under the "Termination for Convenience" clause, without the ten calendar day notice requirement. In lieu of termination, the Contract may be amended to reflect the new funding limitations and conditions. 14. SEVERABILITY The provisions of this contract are intended to be severable. If any term or provision is illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the validity of the remainder of the contract. 15. SUBCONTRACTING The Contractor may only subcontract work contemplated under this Contract if it obtains the prior written approval of COMMERCE. Subcontracting with multiple community based organizations is encouraged for this granting program. COMMERCE shall approve each community based organization, such approval to be provided in writing. If COMMERCE approves subcontracting, the Contractor shall maintain written procedures related to subcontracting, as well as copies of all subcontracts and records related to subcontracts. For cause, COMMERCE in writing may: (a) require the Contractor to amend its subcontracting procedures as they relate to this Contract; (b) prohibit the Contractor from subcontracting with a particular person or entity; or (c) require the Contractor to rescind or amend a subcontract. Every subcontract shall bind the Subcontractor to follow all applicable terms of this Contract. The Contractor is responsible to COMMERCE if the Subcontractor fails to comply with any applicable term or condition of this Contract. The Contractor shall appropriately monitor the activities of the Subcontractor to assure fiscal conditions of this Contract. In no event shall the existence of a State of Washington Interagency Agreement Updated August 2019 Department of Commerce Page 5 51 GENERAL TERMS AND CONDITIONS INTERAGENCY AGREEMENT STATE FUNDS subcontract operate to release or reduce the liability of the Contractor to COMMERCE for any breach in the performance of the Contractor's duties. Every subcontract shall include a term that COMMERCE and the State of Washington are not liable for claims or damages arising from a Subcontractor's performance of the subcontract. 16. SURVIVAL The terms, conditions, and warranties contained in this Contract that by their sense and context are intended to survive the completion of the performance, cancellation or termination of this Contract shall so survive. 17. TERMINATION FOR CAUSE In the event COMMERCE determines the Contractor has failed to comply with the conditions of this contract in a timely manner, COMMERCE has the right to suspend or terminate this contract. Before suspending or terminating the contract, COMMERCE shall notify the Contractor in writing of the need to take corrective action. If corrective action is not taken within 30 calendar days, the contract may be terminated or suspended. In the event of termination or suspension, the Contractor shall be liable for damages as authorized by law including, but not limited to, any cost difference between the original contract and the replacement or cover contract and all administrative costs directly related to the replacement contract, e.g., cost of the competitive bidding, mailing, advertising and staff time. COMMERCE reserves the right to suspend all or part of the contract, withhold further payments, or prohibit the Contractor from incurring additional obligations of funds during investigation of the alleged compliance breach and pending corrective action by the Contractor or a decision by COMMERCE to terminate the contract. A termination shall be deemed a "Termination for Convenience" if it is determined that the Contractor: (1) was not in default; or (2) failure to perform was outside of his or her control, fault or negligence. The rights and remedies of COMMERCE provided in this contract are not exclusive and are in addition to any other rights and remedies provided by law. 18. TERMINATION FOR CONVENIENCE Except as otherwise provided in this Contract, COMMERCE may, by ten (10) business days written notice, beginning on the second day after the mailing, terminate this Contract, in whole or in part. If this Contract is so terminated, COMMERCE shall be liable only for payment required under the terms of this Contract for services rendered or goods delivered prior to the effective date of termination. 19. TERMINATION PROCEDURES Upon termination of this contract, COMMERCE, in addition to any other rights provided in this contract, may require the Contractor to deliver to COMMERCE any property specifically produced or acquired for the performance of such part of this contract as has been terminated. The provisions of the "Treatment of Assets" clause shall apply in such property transfer. COMMERCE shall pay to the Contractor the agreed upon price, if separately stated, for completed work and services accepted by COMMERCE, and the amount agreed upon by the Contractor and COMMERCE for (i) completed work and services for which no separate price is stated, (ii) partially completed work and services, (iii) other property or services that are accepted by COMMERCE, and (iv) the protection and preservation of property, unless the termination is for default, in which case the Authorized Representative shall determine the extent of the liability of COMMERCE. Failure to agree with such determination shall be a dispute within the meaning of the "Disputes" clause of this contract. COMMERCE may withhold from any amounts due the Contractor such sum as the Authorized Representative determines to be necessary to protect COMMERCE against potential loss or liability. The rights and remedies of COMMERCE provided in this section shall not be exclusive and are in addition to any other rights and remedies provided by law or under this contract. State of Washington Interagency Agreement Updated August 2019 Department of Commerce Page 6 52 GENERAL TERMS AND CONDITIONS INTERAGENCY AGREEMENT STATE FUNDS After receipt of a notice of termination, and except as otherwise directed by the Authorized Representative, the Contractor shall: A. Stop work under the contract on the date, and to the extent specified, in the notice; B. Place no further orders or subcontracts for materials, services, or facilities except as may be necessary for completion of such portion of the work under the contract that is not terminated; C. Assign to COMMERCE, in the manner, at the times, and to the extent directed by the Authorized Representative, all of the rights, title, and interest of the Contractor under the orders and subcontracts so terminated, in which case COMMERCE has the right, at its discretion, to settle or pay any or all claims arising out of the termination of such orders and subcontracts; D. Settle all outstanding liabilities and all claims arising out of such termination of orders and subcontracts, with the approval or ratification of the Authorized Representative to the extent the Authorized Representative may require, which approval or ratification shall be final for all the purposes of this clause; E. Transfer title to COMMERCE and deliver in the manner, at the times, and to the extent directed by the Authorized Representative any property which, if the contract had been completed, would have been required to be furnished to COMMERCE; F. Complete performance of such part of the work as shall not have been terminated by the Authorized Representative; and G. Take such action as may be necessary, or as the Authorized Representative may direct, for the protection and preservation of the property related to this contract, which is in the possession of the Contractor and in which the Authorized Representative has or may acquire an interest. 20. TREATMENT OF ASSETS Title to all property furnished by COMMERCE shall remain in COMMERCE. Title to all property furnished by the Contractor, for the cost of which the Contractor is entitled to be reimbursed as a direct item of cost under this contract, shall pass to and vest in COMMERCE upon delivery of such property by the Contractor. Title to other property, the cost of which is reimbursable to the Contractor under this contract, shall pass to and vest in COMMERCE upon (i) issuance for use of such property in the performance of this contract, or (ii) commencement of use of such property in the performance of this contract, or (iii) reimbursement of the cost thereof by COMMERCE in whole or in part, whichever first occurs. A. Any property of COMMERCE furnished to the Contractor shall, unless otherwise provided herein or approved by COMMERCE, be used only for the performance of this contract. B. The Contractor shall be responsible for any loss or damage to property of COMMERCE that results from the negligence of the Contractor or which results from the failure on the part of the Contractor to maintain and administer that property in accordance with sound management practices. C. If any COMMERCE property is lost, destroyed or damaged, the Contractor shall immediately notify COMMERCE and shall take all reasonable steps to protect the property from further damage. D. The Contractor shall surrender to COMMERCE all property of COMMERCE prior to settlement upon completion, termination or cancellation of this contract All reference to the Contractor under this clause shall also include Contractor's employees, agents or Subcontractors. 21. WAIVER Waiver of any default or breach shall not be deemed to be a waiver of any subsequent default or breach. Any waiver shall not be construed to be a modification of the terms of this Contract unless stated to be such in writing and signed by Authorized Representative of COMMERCE. State of Washington Interagency Agreement Updated August 2019 Department of Commerce Page 7 53 GENERAL TERMS AND CONDITIONS INTERAGENCY AGREEMENT STATE FUNDS SOURCE: Section 189 of Engrossed Substitute Senate Bill 5693, of the supplemental operating budget for fiscal year 2023 is provided solely for Commerce to administer grants to eligible cities for actions relating to adopting ordinances that would authorize middle housing types on at least 30 percent of lots currently zoned as single family residential. For the purposes of this grant program, "middle housing types" include duplexes, triplexes, fourplexes, fiveplexes, sixplexes, townhouses, courtyard apartments, cottage housing, and stacked flats. (a) A city is eligible to receive a grant if: i. The city is required to plan under RCW 36.70A.040; and ii. The city is required to take action on or before June 30, 2024, to review and, if needed, revise its comprehensive plan and development regulations pursuant to RCW 36.70A.130(5)(a). (b) Grant recipients must use grant funding for costs to conduct at least three of the following activities: i. Analyzing comprehensive plan policies and municipal code to determine the extent of amendments required to meet the goal of authorizing middle housing types on at least 30 percent of lots currently zoned as single family residential; ii. Preparing informational material for the public; iii. Conducting outreach, including with the assistance of community-based organizations, to inform and solicit feedback from a representative group of renters and owner -occupied households in residential neighborhoods, and from for-profit and nonprofit residential developers; iv. Drafting proposed amendments to zoning ordinances for consideration by the city planning commission and city council; v. Holding city planning commission public hearings; vi. Publicizing and presenting the city planning commission's recommendations to the city council; and vii. Holding city council public hearings on the planning commission's recommendations. (c) Before updating their zoning ordinances, a city must use a racial equity analysis and establish antidisplacement policies as required under RCW 36.70A.070(2)(e) through (h) to ensure there will be no net displacement of very low, low, or moderate -income households, as defined in RCW 43.63A.510, or individuals from racial, ethnic, and religious communities which have been subject to discriminatory housing policies in the past. (d) Commerce will prioritize applicants who: i. Aim to authorize middle housing types in the greatest proportion of zones; and ii. Subcontract with multiple community-based organizations that represent different vulnerable populations in overburdened communities, as defined in RCW 70A.02.010, that have traditionally been disparately impacted by planning and zoning policies and practices, to engage in eligible activities as described in (b) of this subsection. Commerce will be monitoring the contracts biannually to review progress in meeting milestones, deliverables and invoicing. State of Washington Interagency Agreement Updated August 2019 Department of Commerce Page 8 54 Attachment A Scope of Work Steps/ Deliverables Description Start Date End Date ACTION 1 PUBLIC ENGAGEMENT ACTIVITIES July 2022 June 2023 Step 1.1 Develop community engagement plan July 2022 November 2022 Step 1.2 Subcontract with community-based organizations July 2022 November 2022 Step 1.3 Develop outreach communications, surveys, mapping, and public presentations July 2022 February 2023 Step 1.4 Conduct public engagement activities January 2023 April 2023 Deliverable la Public Engagement Plan July 2022 Nov. 30, 2022 Deliverable lb Public Engagement Results July 2022 May 31, 2023 ACTION 2 RACIAL EQUITY REPORT & HOUSING POLICY REVIEW July 2022 June 2023 Step 2.1 Access supports from Commerce technical assistance staff. Sept 2022 May 2023 Step 2.2 Identify local policies and regulations that result in racially disparate impacts, displacement, and exclusion in housing, including: zoning that may have a discriminatory effect; disinvestment; and infrastructure availability. July 2022 Sept 2022 Step 2.3 Identify areas that may be at higher risk of displacement from market forces that occur with changes to zoning development regulations. July 2022 Sept 2022 Step 2.4 Evaluate displacement risk of very low, low, and moderate income households. Sept 2022 January 2023 Step 2.5 Evaluate displacement risk of individuals from racial, ethnic, and religious communities which have been subject to discriminatory housing policies in the past. Sept 2022 January 2023 Step 2.6 Develop policies and regulations to address and begin to undo the impacts of local policies and regulations that result in racially disparate impacts, displacement, and exclusion in housing. July 2022 March 2023 55 Attachment A Steps/ Deliverables Description Start Date End Date Step 2.7minimize Develop anti -displacement strategies, including strategies to displacement of low-income residents resulting from redevelopment. July 2022 March 2023 Step 2.8 Develop anti -displacement policy documents that include a schedule of programs and actions to implement the anti- displacement strategies including a timeline. Nov 2022 March 2023 Deliverable 2a Racial equity analysis report April 15, 2023 Deliverable 2b Proposed Housing Element policy updates, including May 31, 2023 ACTION 3 ZONING AMENDMENTS Nov 2022 June 2023 Step 3.1 Review and evaluate the current housing element and other policies to support middle housing. September 2022 January 2023 Step 3.2 Review buildable lands report and current residential land uses for potential to allow middle housing, or where station areas or higher intensity uses might be defined, or where commercial areas might be converted for residential or mixed use development. October 2022 February 2023 Step 3.3 Review current programs, development regulations, impact fees, system development charges, and permitting processes as to how they might encourage or discourage the development of multiunit housing. Consider also how building code requirements impact development of multi -unit housing structures. October 2022 Jan 2023 Step 3.4 Identify conditions and incentives that encourage or deter development community from building missing middle housing in Tukwila. October 2022 January 2023 Step 3.5 Identify bonus densities and incentives for affordable housing to accompany changes in zoning that can increase density. Jan 2023 Feb 2023 Step 3.6 Identify various homeownership options that can be readily utilized and promoted to incorporate into the development of missing middle housing types. October 2022 January 2023 Step 3.7 Gather data, analyze and review to understand the realistic potential of the various changes. Examine existing financial feasibility analysis addressing development of various housing typologies in various zones to identify opportunities and potential gaps of understanding. Jan 2023 Feb 2023 56 Attachment A Steps/ Deliverables Description Start Date End Date Deliverable 3a Middle housing staff report identifying changes needed to support middle housing in Tukwila, including recommended changes to policies, regulations, fee structures, incentives, and permitting procedures to be considered with periodic update. December 2022 June 15, 2023 Deliverable 3b Draft ordinance to increase density in proximity to transit nodes and authorizes middle housing types and ADUs on lots currently zoned as single family. June 15, 2023 57 58 Budget Budget Grant Objective: Attachment B Commerce Funds Deliverable la. Public Engagement Plan Deliverable lb. Public Engagement Results $ 7,000 $ 25,000 Deliverable 2a. Racial Equity Analysis $ 21,000 Deliverable 2b. Housing Element policy updates $ 20,000 Deliverable 3a. Middle housing staff report $ 20,000 Deliverable 3b. Draft ordinance $ 7,000 Total: $100,000 Contracting with Community Based Organizations $30,000 59 60 .4►' Washington State '40 Com rmerce GROWTH MANAGEMENT SERVICES Middle Housing Grant Application Form Summary Page Jurisdiction City of Tukwila Total funding request $100,000 + funding ($30,000) for outreach to Community Based Organizations responsive to the City's large diverse population Population of jurisdiction as of 2022 22,000 (OFM 2021 estimates) Are you also requesting tech team assistance? Yes Approximate time frame for assistance Fall 2022 — early summer 2023 Provide the proposed change in lots that only allow single family residential development and the change of lots zoned for middle housing. Please note, this question requires the submittal of a current zoning map with additional details, see grant guidelines for more information: Current percentage of lots that only allow single family development: 74% of lots (lot sizes range from 3,000 SF to over 35,000 S.F.) Current percentage of lots that allow middle housing development: X1 Proposed percentage of lots that will only allow single family development 52% Proposed percentage of lots that will allow middle housing development at 52% plus the above at the conclusion of this grant2: the conclusion of this grant: number The Planning Division does not currently have GIS expertise and has not prepared a traditional land use element in the past, so it is difficult to address this question without guessing. Currently, the area that is the Medium Density Residential and High Density Residential zones allow middle housing development, as do Low Density Residential zoned properties located in the Tukwila South area (and subject to the Tukwila South Overlay). 2 A draft will be proposed to the City Council as a part of this grant and during the Comprehensive Plan Update process, however the Council will likely not complete its deliberations until late 2024. MISSING MIDDLE GRANT APPLICATION 1 61 Current percentage of lots that only allow single family development: 74% of lots (lot sizes range from 3,000 SF to over 35,000 S.F.) Current percentage of lots that allow middle housing development: Percent change: 22% Percent change: Global to local Community-based organizations you will subcontract with: Vulnerable population served: 1. 2. 3. 4. Global to local Underserved communities, such as women, people of color, people experiencing poverty, immigrants and refugees African Community Housing & Development African diaspora in South King County Somali Health Board Somali immigrants and refugees Possible other groups: • Partners in Employment • E. Africa refugees/immigrants • East African Community Services • E. African immigrant community • Tukwila Children's Foundation • Tukwila refugees & immigrants WA Zip Code Note: We plan to publish a competitive RFP for this work to attract additional CBOs that reflect the diversity of Tukwila. 1. Jurisdiction Information Applying Jurisdiction City of Tukwila Project Manager This is the designated lead person who is responsible for grant communications between Commerce and the city. For joint applicants this is project manager from the designated lead city. Name (Lead Contact) Nancy Eklund, AICP Title Long Range Planning Manager Department Dept. of Community Development Mailing Address 6300 Southcenter Blvd, Suite #100 City Tukwila State WA Zip Code 98188 Telephone Number 206/433-7141 MISSING MIDDLE GRANT APPLICATION 62 2 Email Nancy.Eklund@TukwilaWA.gov Description Financial Contact Please provide name and contact information for the person who will be responsible for receiving and accounting for the grant funds. Name Tony Cullerton Title Deputy Finance Director Department Finance Department Telephone Number 206/433-1838 E-mail Tony.Cullerton@TuwkilaWA.gov Unified Business Identifier (UBI) Number 179-000-208 Statewide Vendor (SWV) Number SWV0018023 Authorized Official The name and title of the office authorized to sign the grant agreement on behalf of the city. Name Allen Ekberg Title Mayor Email Mayor@tukwilawa.gov / 206-433-1850 2. Scope of Work and Project Schedule Provide a proposed scope of work, detailing the grant objective (project), actions, steps and deliverables. Instructions are in the Grant Application Instructions. All grant deliverables must be submitted by June 15, 2023. If you propose multiple grant objectives, actions, steps or deliverables, please copy and paste the appropriate rows below. The example scopes of work from the grant instructions are included at the end of this document if a community wishes to copy portions or all of that material into this table. Grant Objective: With the goal of providing background information and analysis necessary for City leadership to consider amendments to Tukwila's Comprehensive Plan and associated regulatory documents to expand housing options that include authorizing middle housing types on 30% of the area or lots currently zoned as Low Density Residential. Steps/ Deliverables Description Start Date End Date ACTION 1 PUBLIC ENGAGEMENT ACTIVITIES July 2022 June 2023 Step 1.1 Develop community engagement plan July 2022 November 2022 MISSING MIDDLE GRANT APPLICATION 3 63 Steps/ Deliverables Description Start Date End Date Step 1.2 Subcontract with community-based organizations Community Based Organizations July 2022 November 2022 Step 1.3 Develop outreach communications, surveys, mapping, and public presentations July 2022 February 2023 Step 1.4 Conduct public engagement activities January 2023 April 2023 Deliverable la Public Engagement Plan July 2022 Nov. 30, 2022 Deliverable lb Public Engagement Results July 2022 May 31, 2023 ACTION 2 RACIAL EQUITY REPORT & HOUSING POLICY July 2022 June 2023 Step 2.1 Access supports from Commerce technical assistance staff. Sept 2022 May 2023 Step 2.2 Identify local policies and regulations that result in racially disparate impacts, displacement, and exclusion in housing, including: zoning that may have a discriminatory effect; disinvestment; and infrastructure availability. July 2022 Sept 2022 Step 2.3 Identify areas that may be at higher risk of displacement from market forces that occur with changes to zoning development regulations. July 2022 Sept 2022 Step 2.4 Evaluate displacement risk of very low, low, and moderate income households. Sept 2022 January 2023 Step 2.5 Evaluate displacement risk of individuals from racial, ethnic, and religious communities which have been subject to discriminatory housing policies in the past. Sept 2022 January 2023 Step 2.6 Develop policies and regulations to address and begin to undo the impacts of local policies and regulations that result in racially disparate impacts, displacement, and exclusion in housing. July 2022 March 2023 Step 2.7 Develop anti -displacement strategies, including strategies to minimize displacement of low-income residents resulting from redevelopment. July 2022 March 2023 Step 2.8 Develop anti -displacement policy documents that include a schedule of programs and actions to implement the anti- displacement strategies including a timeline. Nov 2022 March 2023 Deliverable 2a Racial equity analysis report April 15, 2023 Deliverable 2b Proposed Housing Element policy updates, May 31, 2023 ACTION 3 ZONING AMENDMENTS Nov 2022 June 2023 Step 3.1 Review and evaluate the current housing element and other policies to support middle housing. September 2022 January 2023 MISSING MIDDLE GRANT APPLICATION 64 4 Steps/ Deliverables Description Start Date End Date Step 3.2 Review buildable lands report and current residential land uses for potential to allow middle housing, or where station areas or higher intensity uses might be defined, or where commercial areas might be converted for residential or mixed use development. October 2022 February 2023 Step 3.3 Review current programs, development regulations, impact fees, system development charges, and permitting processes as to how they might encourage or discourage the development of multiunit housing. Consider also how building code requirements impact development of multi- unit housing structures. October 2022 Jan 2023 Step 3.4 Identify conditions and incentives that encourage or deter development community from building missing middle housing in Tukwila. October 2022 January 2023 Step 3.5 Identify bonus densities and incentives for affordable housing to accompany changes in zoning that can increase density. Jan 2023 Feb 2023 Step 3.6 Identify various homeownership options that can be readily utilized and promoted to incorporate into the development of missing middle housing types. October 2022 January 2023 Step 3.7 Gather data, analyze and review to understand the realistic potential of the various changes. Examine existing financial feasibility analysis addressing development of various housing typologies in various zones to identify opportunities and potential gaps of understanding. Jan 2023 Feb 2023 Deliverable 3a Middle housing staff report identifying changes needed to support middle housing in Tukwila, including recommended changes to policies, regulations, fee structures, incentives, and permitting procedures to be considered with periodic update. December 2022 June 15, 2023 Deliverable 3b Draft ordinance to increase density in proximity to transit nodes and authorizes middle housing types and ADUs on lots currently zoned as single family. June 15, 2023 MISSING MIDDLE GRANT APPLICATION 5 65 3. Proposed Budget / Financial Information Propose a project budget to reflect your expected level of effort for each of the deliverables provided above. This is a performance- based contract, therefore cities will be paid upon satisfactory completion of deliverables rather than hours spent working on the project. The final deliverable of each grant objective must be at least 20% of the total grant amount for that grant objective. Grant Objective: Commerce Funds Deliverable la. Public Engagement Plan Deliverable lb. Public Engagement Results $ 7,000 $ 25,000 (+30,000 CBO) Deliverable 2a. Racial Equity Analysis $ 21,000 Deliverable 2b. Housing Element policy updates $ 18,000 Deliverable 3a. Middle housing staff report $ 20,000 Deliverable 3b. Draft ordinance $ 7,000 Expenses $2,000 Total: $100,000 (+30,000 CBO) Budget Narrative: For each grant objective, please support the funding request with estimates of staff hours (may be per action, step, or deliverable), staff hourly rates, and other expenses. la) Public engagement plan — estimated approximately 40 hours, including a project kickoff. Average hourly staff rate of $175/hr 1b) Public engagement results — includes all materials development, coordinating with CBOs, hosting engagement activities, and summarizing findings. Estimated at 150 hours with average hourly staff rate of $167/hr 2a) Racial equity analysis — includes an existing conditions report, establishing a framework for analysis, displacement risk assessment, and racial equity analysis report. Estimated at 120 hours with average hourly staff rate of $175/hr 2b) Housing Element policy updates — includes an existing conditions report, audit of existing policies, and a summary of housing element policy updates. Estimated at 110 hours with average hourly staff rate of $164/hr 3a) Middle housing staff report — includes community profile, zoning review, and concepts for consideration. Estimated at 125 hours with average hourly staff rate of $160/hr 3b) Draft ordinance — preliminary draft and final draft proposal as an ordinance estimated at 40 hours at an average hourly staff rate of $175/hr. Estimated $2,000 in project expenses (2% of budget) 4. Grant Application Questions and Scoring Method Please answer each of the below questions. Final grant funds will be proportionate to the level of effort proposed by a city, the percent change of lots authorized for middle housing through zoning changes, and factor in the number of community-based organizations the city plans to subcontract with. Please refer to the Grant Application Instructions for more detail regarding scoring and ranking. MISSING MIDDLE GRANT APPLICATION 6 66 4a. Readiness to Proceed: (0-20 points) Please describe your plan to initiate and complete this project by June 15, 2023. See grant instructions for additional detail on what to include in this section. The City of Tukwila planning staff require state support to meet this grant deadline. We are currently seeking two senior planner staff to hire to augment the long range planning effort and will need to hire a consultant to assist City staff in meeting the work and the timeline. We are currently seeking to identify best options for using our limited staff and resources for plan development and community outreach. Because we have, so far, had difficulty hiring new City staff, and much of the consultant community is already booked, we are projecting that we begin with community outreach and be more available to begin analysis and deliverable drafting in later 2022. As the City is needing to plan for a $5.6 million dollar deficit, we most definitely could use the Department of Commerce's technical support, as well as the funding available to support community based organizations that can help with outreach to the large immigrant community within Tukwila. As of 2019, more than 40% of Tukwila residents were born outside of the U.S., and the City is approximately 34% white. The City has identified numerous potential community based organizations reflective of the City's diverse community and is working on formalizing outreach approaches to those groups. The City will consult its recently completed Housing Action Plan, as well as several other local plans that have engaged the Tukwila community. The HAP supported a range of approaches to increase housing density within a 1/2 mile walkshed to the Link Light rail transit hub. The Planning Department does not currently have staff who are either knowledgeable in using the City's GIS system or available to prepare maps or do other analysis. We hope to rectify this with the addition of new staff, however, at this time, we are unable to use such tools to provide data on the amount of area zoned for single family, or that would currently accept the housing typologies considered missing middle. These housing types would be accepted in the City's Medium Density and High Density Residential zones. The City's 2015 Comprehensive Plan and Zoning Map is shown on page 12. 4b. Local Commitment to the project: (0-20 points) See grant instructions for additional detail on what to include in this section. The City is committed to adopting a plan and regulations that support providing more affordable housing options to address the City's and region's housing shortages. The City also supports fostering greater development in areas adjacent, or in proximity, to transit hubs. The City's Comprehensive Plan and zoning code provide the same residential use/zone options: Low Density Residential (SF only + ADUs); Medium Density Residential (up to 14.5 dwelling units per net acre); and High Density Residential (up to 22.0 dwelling units per net acre, or 60, if seniors and meeting specific criteria or if in a limited Overlay district, up to 65 feet or possibly 100 feet if consistent with specific criteria). The outcome of this effort will be to identify how the City can adopt new standards for its Single Family Residential zone, as well as other zones to enhance density, provide greater diversity of properties, and ideally, enhance opportunities for home ownership. This increase in density is particularly important to those areas of the City that are in proximity to transit hubs. MISSING MIDDLE GRANT APPLICATION 7 67 Figure 2: Comparison of Housing Units by Type, Nearby Cities 70% 60% 50% 40% 30% 20% King Auburn Burien County Des Federal Kent Renton Searac Moines Way Tukwila • 1, detached ❑ 1, attached A 2 O 9or ▪ 5tn9 ® 10 to 19 P,� 20 to 49 M 50ormore 133 Mobile home ■ Boat, RV, van, etc, Tukwila has two regional centers — the Tukwila Urban Center located in the Tukwila Southcenter Mall area, and the Manufacturing Industrial Center located in the Duwamish River/East Marginal Way area of north Tukwila. The City's zoning has prioritized these areas for increase development through the use of higher density zones and incentives. Tukwila is also home to (or adjacent to) several major light rail, bus rapid transit stations, and heavy rail transit hubs. Employment areas projected to experience significant growth in the coming years are located in the Tukwila South Area, and the two urban centers, which include or are adjacent to City's transit hubs. Tukwila welcomes the opportunity to integrate more affordable, and varied, housing options into the City's housing stock, including providing missing middle housing in its single family housing areas well as other areas of the City. It is relevant to point out that Tukwila's housing profile is different from other cities in King County. Based on 2008-2012 American Community Survey 5 -year estimates data, Tukwila has a lower percentage of single family housing units compared to the other cities and the County. Tukwila also has the Table 6: Comparison of Home Ownership Rates Source: US Census, 2010 highest percentage of units in all structures ten units or larger. In Tukwila, approximately 54% of the housing units are multifamily, 42% are detached single family dwelling units, and approximately 2.8% are manufactured or mobile homes. Countywide, 40% of households live in multifamily structures, approximately 58 percent live in single-family homes, and just over 2% live in manufactured or mobile homes. In addition, Tukwila historically has had a larger percentage of renter -occupied households than owner - occupied households. This continues to be true despite a gradual increase in the percentage of owner - occupied households in recent years. The home ownership rates in Tukwila are closer to those found in renter - rich Seattle than the other communities within King County, apart from outside of Seattle. The City's elected officials have long encouraged greater home ownership in an effort to provide a better foundation for the City to become less of a transitional destination for newcomers (especially the immigrant community) and more of a stable, permanent "home" for its residents. It is hoped that the addition of missing middle housing typologies into the City's single family zones will encourage investment in these areas and support the desired stability of the community. The Tukwila Planning staff experienced a reduction in size during the pandemic, and with the planned addition of two new Senior Planners (whose focus will also include current planning) we will still have several fewer staff members that when the Comprehensive Plan was updated in Source- U S. Census Bureau, 2008-PC12 American Community Survey MISSING MIDDLE GRANT APPLICATION 8 68 Tukwila Seattle KC KC Outside Seattle Owner 43% 48% 59% 65% Renter 57% 52% 41% 35% Source: US Census, 2010 highest percentage of units in all structures ten units or larger. In Tukwila, approximately 54% of the housing units are multifamily, 42% are detached single family dwelling units, and approximately 2.8% are manufactured or mobile homes. Countywide, 40% of households live in multifamily structures, approximately 58 percent live in single-family homes, and just over 2% live in manufactured or mobile homes. In addition, Tukwila historically has had a larger percentage of renter -occupied households than owner - occupied households. This continues to be true despite a gradual increase in the percentage of owner - occupied households in recent years. The home ownership rates in Tukwila are closer to those found in renter - rich Seattle than the other communities within King County, apart from outside of Seattle. The City's elected officials have long encouraged greater home ownership in an effort to provide a better foundation for the City to become less of a transitional destination for newcomers (especially the immigrant community) and more of a stable, permanent "home" for its residents. It is hoped that the addition of missing middle housing typologies into the City's single family zones will encourage investment in these areas and support the desired stability of the community. The Tukwila Planning staff experienced a reduction in size during the pandemic, and with the planned addition of two new Senior Planners (whose focus will also include current planning) we will still have several fewer staff members that when the Comprehensive Plan was updated in Source- U S. Census Bureau, 2008-PC12 American Community Survey MISSING MIDDLE GRANT APPLICATION 8 68 2015. The two Associate planners who focus on current planning, are eager to provide assistance, however they will continue to be burdened by current planning project loads that have not diminished any during the pandemic. Tukwila Mayor Ekberg has expressed his support for pursuing this grant to provide the analysis that would potentially enable the City Council to approve transitioning the City's Low Density Residential zone into a zone that allowed the missing middle housing typologies. We hope to have a letter of support signed by the mayor sent back to Commerce by the end of the week. In addition, we are working with our community engagement office which has indicated an interest in being a conduit to CBOs, so we are hope to have formalized outreach relationships established with them in the near future. We welcome any support assistance Commerce can provide in ' understanding how to best form these alliances. 4c. Racial Equity Analysis: (0-30 points) See grant instructions for additional detail on what to include in this section. The requirement to provide a racial equity analysis and establish anti -displacement policies associated with Housing policy is critical to Tukwila, given our very significant immigrant and lower income population, and the likelihood that any community development will negatively impact this population. The Washington Health Department Environmental Disparities Map (at right) identifies the entire City as being at high risk for negative environmental and health indicators. The City has prioritized ensuring its work within the Tukwila community is equitable and fair and projects and plans are evaluated through an equity lens supported by out Equity and Social Justice committee and board. Long range staff will be working with the Community Engagement Office to develop the Comprehensive Plan, and gaining guidance from the Staff's Transportation Demand Management who have developed extensive outreach into the City's community groups. This outreach will help identify potential undesirable outcomes and enable us to strategize on responding to those potential impacts. Rank High 8 0 6 4 0 0 Low personnel 4d. Middle Housing Opportunities: (0-30 points) See grant instructions for additional detail on what to include in this section. There are numerous areas where single family zoned properties abut high density residential (in some cases, where there is no transition zone), and that are located in close proximity to areas of higher density with more frequent transit service that are excellent candidates for providing greater housing options. As previously noted, there are many areas zoned for single family or higher residential densities that could be modified to allow more residential density, and many of these are in areas that offer frequent transit service. One such area is along Tukwila International Blvd and to the south where the City's Link light rail station is located (as shown in the following map). The City's adopted Housing Action Plan identified these areas as optimal candidates for future housing growth. MISSING MIDDLE GRANT APPLICATION 9 69 With the assistance of the grant, and the addition of consultant staff, these opportunities will be explored more fully, with the intent of adopting missing middle changes that will expand densities and affordable housing options for the community. CHECKLIST Applications and supporting documentation must be emailed gmsgrants@commerce.wa.gov by 5:00 p.m. on Thursday, June 9, 2022. ❑ Letter of commitment from the mayor or authorized official. (coming, by 7/8/22) ❑ Letters of commitment from community-based organizations. (coming, by 7/15/22) ▪ Zoning, transit and other maps as needed to allow reviewers to understand the potential to meet the objectives of the grant program. (see page 11) ❑X Buildable lands report (attached) (beginning after page 11) El Submit application (12 pages or less), and zoning, transit and other maps to gmsgrants@commerce.wa.gov by Thursday, June 9, 5:00 p.m. Thank you for completing this application. You may delete from this paragraph to the end of the document before submitting. Lott d f. 5 laJidfl I,I.ry MUS 141ST ti F RC U LOIR Haf4 LEP snit _I 111 wcc o 1UR !474. '9 @--I SOUTHCE s,.,;I.atil u m —. LCR { EDF ▪ Ls,: -im�i S .x1C - HIIS'. MOM L MISSING MIDDLE GRANT APPLICATION 10 70 KAM City of Tukwila Comprehensive Plan & Zoning Map a E., O... 1.55,90.11111...... NE P.= wad 0.14ORM.......-AnteameS. =Ur' ,14.1. 0,0.1 MICI 101.1.teeobadlinum.,11.11.. 0.0111.[Lid. Nail.1..a1N416 lorwmze Imo, NOIR 1.1114 ormlin...5 1.169. mammas,. memo unae .51.h. L..1? ..W.N.ReiplitliM NAM Estrap..20......Empelenrten. r I rna Nilt. 91 vop RC N. - , SLL NOR Tukwila Urban Center Corridor Types INNorn Coale, Zoning Districts, Overlays, and Sub -Areas • 11.411Ccarnra 1.41 ncac Hor,, tiyeanol ra 1.1 nmr. utx, MISSING MIDDLE GRANT APPLICATION Shoreline Overlay 'Approximately 20C each side of ISO river) 11 71 72 Remaining 2035 Target 5,496 Profiles of Cities and Unincorporated Areas Cit of Tukwila Housing Growth and Residential Development Trends Housing Units 6,000 5,000 4,000 3,000 2,000 1,000 0Q. • Actual vs TargetHousing Growth (From 2006 Baseline) 0 2006 2010 2014 2018 2022 2026 2030 2034 • • • • Target • Actual 2035 Target Tukwila Housing Growth Target: 2006-2035 5,626 2006 Estimated Housing Units 2018 Estimated Housing Units Estimated Housing Growth 7,739 7,869 130 0/0 of Pace Needed to Average Annual 2018-2035 Avg. Annual Achieve 2035 Housing 2006-2018 Growth Growth Needed to Meet Growth Tar et Rate 2035 Tar et 5.6% 0.14% 3.17% Since 2006, Tukwila has grown at 6% of the pace needed to achieve its 2035 housing growth target of 5,626 units. During this period, the total number of housing units in Tukwila grew by roughly 2%. At this current rate, Tukwila is under the production pace needed to meet its 2035 growth target, and needs to grow at an annual rate of 3.2% to reach its remaining target by 2035. Residential Achieved Densities Zoned Density (du/acre) Gross Critical Areas Public Purpose ROWs Net Total Area (acres) (acres) (acres) (acres) Area (acres) Units Achieved Density (DU/acre) Very Low Low Medium Low 100 90 80 70 60 50 40 30 20 10 0 0 - 4 du/acre 4 - 10 du/acre 10 - 24 du/acre 24 - 48 du/acre 48 & up du/acre 0.0 35.6 4.2 0.0 5.3 Total 45.1 0.0 1.7 0.0 0.0 0.0 1.7 0.0 2.3 0.2 0.0 0.0 2.5 Achieved Density by Zoned Density Level, 2012-2018 Very Low 0 0 Low Medium Low Medium High Zoned Density Level (aj ■ ■ ■ King County Urban Growth Capacity Report I June 2021 0.0 0.0 0.0` 0.0` 0.0' 0.0 0 High 0.0 31.6 4.0 0.0 5.3 40.9 0 163 155 0 440 758 Zoned Density Range of Zones with Produced Units °Average Achieved Density 5.2 38.9 82.4 18.5 100% 90% 3 80% O w 70% 60% u 50% 40% 30% 20% 10% 0% Achieved Density Level Total Net Area (acres) Units Total 0.0 31.6 0.6 5.3 3.4 40.9 0 163 9 215 371 758 Permitted Units by Achieved Density Level, 2012-2018 22% 1% Very Low Low Medium Low Medium High Achieved Density Level 49% High 1,632 3,945 5,577 Profiles of Cities and Unincorporated Areas Tukwila - Residential Land Supply and Capacity Assumed Vacant/ Density Level Redevelopable Critical Gross Acres Areas Infrastructure ROW &Public Constrained Area Purpose Discount Market Factor (low/high) Net Available Acres Assumed Densities (low/high - Net Capacity units/acre) (units) Very Low Density Medium Low Density Vacant Subtotal Redev Subtotal Subtotal 0.00 0.00 0.0% - 0.0% 0.0% - 0.0% Vacant Subtotal Redev Subtotal Subtotal Vacant Subtotal Redev Subtotal Subtotal 0.00 645.65 0.00 225.11 0.00 14.741 0.00 9.06 31.52 40.58; 388.64 95.68 0.00 7.65 6.01 13.65 20.0% - 20.0% 20.0% - 20.0% 10.0%-20.0% 10.0% - 20.0% 0.00 0.00 0.00 63.41 220.65 284.06 44.69 39.04 83.72 0.0 0.0 5.1 5.1 14.5 / 22.0 14.5 / 22.0 35.8 35.8 Medium High Density High Density Vacant Subtotal Redev Subtotal Subtotal 13.56 Vacant Subtotal Redev Subtotal Subtotal 0.43 10.0% - 10.0% 1.18 10.0% - 10.0% 2.79 7.69 0 0 0 323 533 857 938 710 1,648 100 259 0.12 0.00 1.61 10.48 359 155.60 28.98 0.00 1.37E 0.0% - 10.0% 13.82E 0.0% - 10.0% 15.191 8.92 89.84 98.76 61.7 / 61.7 61.7 / 61.7 271 2,443 2,714 All Zones Vacant Total Redev Total Total 1,203.45 349.89 14.74 18.51 52.53: 71.04 ° 119.81 357.22 477.03 Capacity (units) Very Low Density Zones Low Density Zones Medium Low Density Zones Medium High Density Zones High Density Zones Capacity in Pipeline 0 857 1,648 359 2,714 2,642 Total Capacity (Units) Remaining Target (2018-2035) Surplus/Deficit Capacity (Units) 8,219 5,496 2,723 Housing Capacity by Density Level (units) • Low Density Medium Low ■ Medium High Density • High Density ■ ■ ■ King County Urban Growth Capacity Report I June 2021 Remaining 2035 Target 19,737 Tukwila - Employment Growth and Commercial/Industrial Development Trends Actual vs Targetjobs Growth (From 2006 Baseline) 25,000 20,000 15,000 10,000 5,000 2035 Target o O• 0 2006 2010 2014 2018 2022 2026 2030 2034 • • • • Target —O—Actual Profiles of Cities and Unincorporated Areas Tukwila Jobs Growth Target: 2006-2035 20,358 2006 Jobs (PSRC) 2018 Jobs (PSRC) Total Jobs Growth 44,345 44,966 621 % of Pace Needed to Achieve 2035 Jobs Target Average Annual 2006- 2018 Growth Rate 2018-2035 Avg. Annual Growth Rate Needed to Meet 2035 Target 7,4% 0.12% 2.16% Since 2006, Tukwila has grown at 7% of the pace needed to achieve its 2035 jobs growth target of 20,358 units. During this period, the total number of jobs in Tukwila grew by roughly 1%. At this current rate, Tukwila is under the pace needed to meet its 2035 jobs growth target, and needs to grow at an annual rate of 2.2% to reach its remaining target by 2035. Non -Residential Achieved Densities Zoned Density (FAR) Net Area (sq. feet) Total Floor Area Average Achieved (sq. feet) Density (FAR) Very Low Low Medium Low 0-0.35 FAR 0.35-0.5FAR 0.5 - 1.0 FAR 1.0-3.0FAR 3.0 & up FAR 328,799 0 0 0 1,422,281 96,529 0 0 0 533,029 0.3 0.4 Floor Area Ratio 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Total 1,751,080 629,558 0.4 Achieved Density vs Zoned Density Level, 2012-2018 0 Very Low 0 Low Medium Low Medium High High Zoned Density Level (�j1 ■ ■ ■ King County Urban Growth Capacity Report I June 2021 Zoned Density Range of Zones with Non - Residential Development °Average Achieved Density Percent of Total Floor Area Achieved Density Total Floor Area Average Achieved Level Net Area (sq. feet) (sq. feet) Density (FAR) Very Low Low Medium Low 1,141,085 219,547 348,948 41,500 0 158,640 90,252 307,035 73,631 0 0.1 0.4 0.9 1.8 0.0 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Total 1,751,080 629,558 0.4 Non -Residential Development by Achieved Density Level, 2012-2018 25% Very Low 14% 49% 12% Low Medium Low Medium High High Achieved Density Level Tukwila - Commercial/Industrial Land Supply and Job Capacity Land Supply Gross Public Initial Buildable Area Critical Areas ROWs Purpose Land Area (acres) (acres) (acres) (acres) Supply Market Factor (acres) Vacant / Redev. Commercial Mixed Use Industrial 234.4 399.4 282.1 Non -Res Land Total 137.9 48.8 122.6 1.9 7.0 3.2 915.8 309.3 9.7 35.1 16.0 84.9 308.5 140.4 12.1 60.7 533.8 20% 10% - 20% 35% 65.6 256.3 84.5 406.5 Job Capacity by Land Use Net Buildable Assumed Existing Floor Area Density Range Area (million Floor Area Capac. Job (mil.sq.ft.) (FAR) sq.ft.) (million sq.ft.) Sq. ft. per Job Capacity IVacant Redevelopable 0.45 3.97 0.07 / 0.75 0.07 / 0.75 0.00 0.95 0.19 1.09 400 / 800 400 / 800 275 2332 Commercial Total 4.42 0.07/0.75 0.95 1.28 400 / 800 2,607 Mixed -Use Vacant Redevelopable 5.48 5.69 0.06 / 1.75 0.06 / 1.75 0.00 1.53 8.67 1.91 400 400 21,679 4,784 Mixed Use Total 11.16 0.06/1.75 1.53 10.59 400 26,463 Industrial Vacant Redevelopable 1.02 2.67 0.42 0.42 0.00 0.26 0.43 0.86 800 800 534 1070 Industrial Total 3.68 0.42 0.26 1.28 800 1,604 City Total Commercial 4.42 Mixed Use 11.16 Industrial 3.68 Job Capacity in Pipeline 0.07 / 0.75 0.06 / 1.75 0.42 0.69 0.91 0.26 1.28 10.59 1.28 400 / 800 400 800 2,607 26,463 1,604 3,074 City Total 19.26 0.06 / 1.75 1.86 *Certain zones grouped as commercial allow for industrial use. 13.15 400 / 800 33,749 ■ ■ ■ King County Urban Growth Capacity Report I June 2021 Profiles of Cities and Unincorporated Areas Job Capacity by Assumed Density Level # Very Low Density Low Density Medium Low Density Medium High Density High Density Capacity in Pipeline 309 1%` 2,195 7%11 5,954 19%1 22,216 72%I® 0 0%1 3,074 Total Capacity (jobs) Remaining Target (2018-2035) Surplus/Deficit Capacity (jobs) 33,749 19,737 14,012 July 7, 2022 City of Tukwila Growth Management Services Washington Department of Commerce gmsgrants@commerce.wa.gov. RE: City of Tukwila - Middle Housing Grant Application Dear Sir or Madam: Allan Ekberg, Mayor I, Allan Ekberg, Mayor of Tukwila, authorize the City to propose the scope of work and budget request submitted on July 5, 2022, for Middle Housing Grant funding to consider policy, zoning, and development regulation code strategies to allow middle housing in our community. We acknowledge the grant threshold is to consider middle housing types on at least 30% of the lots which only allow single family development at this time. We understand that the periodic update, due December 2024, requires us to adopt policies related to moderate density housing options, including, but not limited to duplexes, triplexes, and townhomes, and this funding will help us meet this requirement. We also acknowledging this work is required to address new components of the housing element to address past racial discrimination, exclusion, and displacement in housing. The City's grant application states the following objective for the grant: "... providing background information and analysis necessary for City leadership to consider amendments to Tukwila's Comprehensive Plan and associated regulatory documents to expand housing options that include authorizing middle housing types on 30% of the area or lots currently zoned as Low Density Residential." The grant scope includes both a Public Engagement component, and development of a Racial Equity Report & Housing Policy document analyzing current conditions and summarizing how the City can address displacement risk for racial, ethnic, and religious communities, as well as for persons in lower income communities. The Report will include a schedule of programs and actions the City can take to implement anti -displacement policies, and the associated timeline for action. The City recognizes that solving the problem of affordable housing is difficult, and that some of the community must be "brought along" in the discussion of existing conditions, the need for Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov 77 78 Tukwila Middle Housing Grant Application Mayor's Letter July 7, 2022 Page 2 of 2 diverse and affordable options, and the benefits of change. Tukwila has conditions that are unlike our peer cities in King County. The proportion of renters in Tukwila (57%) is closer to that of renter -rich Seattle (52%), than the average of other cities within King County, excluding Seattle (31%). This is relevant to Tukwila because the City continually seeks to increase the owner -occupied share of the City's housing to transition the City toward being less of a transitional destination for newcomers (especially, the refugee and immigrant community), and more of a permanent, stable home for its residents. The application also notes that, compared with other King County Cities, Tukwila's has a lower percentage of single family housing units compared to the other cities and the County, and the highest percentage of units in structures having ten units or more. These characteristics will require creativity in identifying how the City can achieve more of its home ownership ambitions than just adding more multi -family housing. The City offers several high capacity transit options and active bus routes. This comprehensive plan, like previous plans, will address how these investments can be best supported by the land use, housing, and transportation priorities endorsed. The City received great community support for the continued development of the Tukwila International Blvd area and will build on that focus for the next Comprehensive Plan, including through the housing policy that shapes the greater TIB Neighborhood. Tukwila is looking forward to receiving this funding so we can continue to explore how we can provide the affordable housing and housing types needed by the community. Thank you. Sincerely, '�LIaK 646,e/&g Key': ID,J041,2e,,,leacicObe2Of=acl,143 Allan Ekberg, Mayor City of Tukwila https://tukwilawa.sharepoint.com/sites/departmentofcommunitydevelopment/DCDPIanning/Long Range Planning/2024 Comprehensive Plan/COMMERCE/Grants/TUKWILA - Missing Middle Application - Mayor's letter.docx .I►' Washington State V40 Com rmerce GROWTH MANAGEMENT SERVICES Middle Housing Grant QtA Summary: In the 2022 legislative session, Growth Management Services (GMS) received $7.5 million to create a grant program for middle housing. In May, GMS formalized the grant program application process, grant requirements, and provided an informational workshop on May 23, 2022 to discuss the program with potential applicants. Approximately 30 city representatives attended the workshop, and asked questions. This Q&A captures those questions and answers, and others sent by email, providing an update to the grant program. Contents MIDDLE HOUSING GRANT PROGRAM PROVISO EXCERPT 2 WHAT DO YOU MEAN BY MIDDLE HOUSING AND 30%? 3 HOW MUCH COMMITMENT DOES A CITY HAVE TO MAKE TO GET THE GRANT? 4 WHAT ARE ELIGIBLE ACTIVITIES? 6 TIMING OF APPLICATIONS AND POTENTIAL LEGISLATION 6 MORE DETAIL ON COMMERCE TECHNICAL ASSISTANCE OPPORTUNITIES 7 MORE DETAIL ON WORKING WITH COMMUNITY-BASED ORGANIZATIONS (CBOs) 7 79 Proviso excerpt: MIDDLE HOUSING GRANT PROGRAM PROVISO EXCERPT (189) $7,500,000 of the general fund—state appropriation for fiscal year 2023 is provided solely for the department to administer grants to eligible cities for actions relating to adopting ordinances that would authorize middle housing types on at least 30 percent of lots currently zoned as single family residential. For the purposes of this subsection, "middle housing types" include duplexes, triplexes, fourplexes, fiveplexes, sixplexes, townhouses, courtyard apartments, cottage housing, and stacked flats. (a) For the purposes of this subsection, a city is eligible to receive a grant if: i. The city is required to plan under RCW 36.70A.040; and ii. The city is required to take action on or before June 30, 2024, to review and, if needed, revise its comprehensive plan and development regulations pursuant to RCW 36.70A.130(5)(a). (b) Grant recipients must use grant funding for costs to conduct at least three of the following activities: i. Analyzing comprehensive plan policies and municipal code to determine the extent of amendments required to meet the goal of authorizing middle housing types on at least 30 percent of lots currently zoned as single family residential; ii. Preparing informational material for the public; iii. Conducting outreach, including with the assistance of community-based organizations, to inform and solicit feedback from a representative group of renters and owner -occupied households in residential neighborhoods, and from for-profit and nonprofit residential developers; iv. Drafting proposed amendments to zoning ordinances for consideration by the city planning commission and city council; v. Holding city planning commission public hearings; vi. Publicizing and presenting the city planning commission's recommendations to the city council; and vii. Holding city council public hearings on the planning commission's recommendations. (c) Before updating their zoning ordinances, a city must use a racial equity analysis and establish antidisplacement policies as required under RCW 36.70A.070(2)(e) through (h) to ensure there will be no net displacement of very low, low, or moderate -income households, as defined in RCW 43.63A.510, or individuals from racial, ethnic, and religious communities which have been subject to discriminatory housing policies in the past. (d) The department shall prioritize applicants who: i. Aim to authorize middle housing types in the greatest proportion of zones; and ii. Subcontract with multiple community-based organizations that represent different vulnerable populations in overburdened communities, as defined in RCW 70A.02.010, that have traditionally been disparately impacted by planning and zoning policies and practices, to engage in eligible activities as described in (b) of this subsection. SOURCE: Section 189 of Engrossed Substitute Senate Bill 5693, the 2022 supplemental operating budget 80 Questions & Answers WHAT DO YOU MEAN BY "MIDDLE HOUSING" AND 30%? Q: The proviso seems to say that the 30% condition is only one of a list of seven activities a community must conduct with the grant funding, while the instructions reads as if the activities chosen must enable middle housing on at least 30% of lots. Is there a discrepancy here, or am I misreading the proviso? A: It is only one of the seven activities, but if you take it off the list, there is no direction about what you are supposed to be doing. (ii) through (vii) follow (i). (i) is very broad in the types of activities that you can do to meet the goal, so there is room for a lot of activities, but the goal is clearly stated. Q: Does a city have to authorize all middle housing types or is a subset of them ok? A: The grant proviso includes a definition for "middle housing types", which includes duplexes, triplexes, fourplexes, fiveplexes, sixplexes, townhouses, courtyard apartments, cottage housing, and stacked flats. We suggest considering the whole suite of middle housing types, and think about where they might fit in your community. It may not be appropriate that all types are allowed in all parts of your community. For example, higher intensity types might be more appropriate in corridors or commercial nodes, where 2-3,4 plexes might be more appropriate for low density residential zones. None of the middle housing types may be appropriate in high density centers and transit station areas. The recommendations should take into account your public engagement findings, and document how the suite of middle housing types were considered. Q: How are you calculating the 30%? Does it have to be considered in existing zones, or do we need to develop new zones? And are we calculating based on area or number of parcels? And when do you calculate that? A: We see the complications. The proviso said "lots" but there is definitely room for interpretation. If you are fully platted, you can count all lots. If you have a lot of unplatted land, look at area. There is no requirement to create a new zone. Also, Commerce realizes that many communities already changed their zoning with or without state funds. So any changes to your zoning code since January 1, 2019 (when housing action plan grants first were provided), may be considered in the calculation of 30%. Q: We are struggling with this 30%. Does this refer to platted lots or land area? Could it be 30% of buildable or developable lots? We have issues with changing zoning on newly developed subdivisions. There is a lot of concern and fear from new homeowners if they hear of zoning changes. People are worried. A: The proviso appears to look at the net number of lots, and since middle housing is generally applied by zone, it would make sense to apply by zoning district. However, 30% can be however you work it out, but it appears to be total lots or area in the community. The Buildable Lands Report can help to see what is possible. Q: 30% seems premature with the intentions of the grant to have middle housing conversations, and seems prescriptive. A: The grant program must reflect the language in the proviso. We are requiring that the application show a minimum of 30% of area or lots as a place where middle housing types are considered. Q: How do you authorize the most middle housing types? Would you split some zones to allow more in other areas? How you achieve it is flexible. There is no specific requirement to change existing zones or create new ones. Q: What would the deliverable be when final products are not required? A. The example scope of work shows deliverables as reports on the racial equity analysis, and on the middle housing work. Middle housing grant 81 deliverables could be draft policies to include in the comprehensive plan update, related to middle housing. Such policies are already required for areas inside the UGA as part of the periodic update. Another deliverable could be recommendations on which zones could accommodate which types of middle housing, or draft changes to zoning codes, permit structures, fees, etc., that could feed into the update. Q: Even to just have those conversations by June of 2023 is a tight timeline. But if conversations are still going on in June 2023 — what would be the deliverables that are being submitted to Commerce? A: The way we think it might work is to include a review of the policies and regulations and structures. The range of things a city could do to address middle housing could include a report that provides the data, analysis, draft policies and recommendations for amendments to the development regulations. Much of this is already required for your housing element update. Q: What if you already meet the 30% threshold? A: That's great! What types of other middle housing work you can do? Can you evaluate fees, permitting processes, and incentives? Could you refine the zoning, design, etc.? What else can you do to incentive or remove barrier to these housing types? HOW MUCH COMMITMENT DOES A CITY HAVE TO MAKE TO GET THE GRANT? Q: We don't have a commitment from the council to do this amount of work. Does this exclude us from working on this? What is your guidance for us if we don't have the ability to predict it's not going to go sideways when it goes to council? Council members in Washington and Minneapolis lost their seats over middle housing. A: There is no requirement to adopt the policy changes or zoning code amendments because the timeline is so short. We assume the legislature wanted cities to have these discussions and understand where these middle housing types are most appropriate in their community, and propose updates to their policies and regulations. There is enough money that the legislature envisioned every community would have these conversations. Regarding the City of Minneapolis, recent information is that the city has authorized about 9,000 housing units since they authorized middle housing on all lots in the city, and only 50 units are middle housing. Q: It appears that the grant does not require us to adopt anything. Is that correct? A: Yes, due to the tight time frame, the grant requires certain activities, but should end with recommendations that would be eventually adopted or incorporated into the periodic update of the comprehensive plan and regulations. Q: Is the letter of commitment from the mayor (or authorized official) required to even be eligible for the grant, or does it only factor into scoring for the "Local Commitment" points? A. A letter of commitment to authorize staff to do the work is required. Unlike the HAP grants, which required adoption of a final result, this grant, like the majority of growth management grants requires consideration of the proposals, but does not presuppose a final result. We do require agreement from city leadership to work on the issues.. Q: Do you think it's essentially a non-starter for a city being awarded a middle housing grant if they can't state a commitment to that 30% threshold through their proposed eligible activities under the grant? A: The grant application requires you to submit a zoning map, buildable lands report, and a summary of how you might be considering getting to the 30% threshold. If that shows that it is possible, and that you are considering a minimum of 30% of lots, you would be able to receive the grant. If the map and analysis shows that you are only considering 10 or 20% of lots or area, you are not meeting the minimum threshold for receiving the funds. 82 Q: We thought we would not qualify because we don't have direction from council yet. We are still looking at our strategy for growth. One of their goals is to have more middle housing - but it would put the cart before the horse if we say we have this grant to do 30% of SF lots as middle housing - they will say they have not done the pre -work. A: This grant could be very good for your community to explore your middle housing goal and capacity. The intent is to queue up work in your periodic update. This will help define the goal for middle housing and see where it might work in your community. Q: Our city has a Housing Action Plan (HAP) grant, but we are nervous about changing goal posts. With Vision 2050, we have a certain amount of growth they have to accommodate. The director is nervous about the perception that the two grants are similar but different perspective work products. A: The requirements for a housing action plan and a housing element are similar, and the work required by the middle housing grant is also similar to that needed for a housing element. Here is a chart with the major components Housing Element RCW 36.70A.-070(2) (required for all GMA cities and counties) Housing Action Plan (Optional grant to fund many required activities) Middle Housing Grant Optional grant to fund mostly required activities Other Comments a. Housing needs assessment Required Housing projections by income band and for shelters will be provided by Commerce b. Goals and policies..., for preservation, improvement, and development of housing, including single-family residences, and within an urban growth area boundary, moderate density housing options including, but not limited to, duplexes, triplexes, and townhomes; Must review housing element. Must develop strategies for meeting housing needs Middle housing is one strategy, consider policies and zoning, ano other programs to support middle housing Local policies must be consistent with countywide planning policies and Vision 2050 c.. Land capacity analysis for housing Required, and must analyze employment trends May consider capacity for middle housing Jurisdictions inside the Puget Sound region should have already completed a buildable lands report d. adequate provisions for all economic segments, consider housing location relative to employment, ADUs Suggested e.. to h. Address racial discrimination, exclusion and displacement in housing Must address displacement Must address racial discrimination, exclusion and displacement in housing Guidance and technical assistance on this topic will come this summer Community Engagement Required Required Implementation Plan Required 83 Q: This should be a tool to help with other work. So this will not create new goal posts? A: Correct. This can fund about half of the update requirements for the housing element. A HAP is optional ,and helps support overall housing planning work. WHAT ARE ELIGIBLE ACTIVITIES? Q: If we already have a grant to develop code amendments (to do missing middle). Could we use this grant to supplement that grant to do more with addressing equity and displacement and other impediments to middle housing? A: Yes, but Commerce can't pay twice for the same thing — so we just need to clearly document what is covered under one grant and what is covered in another grant. But your other work to address middle housing should be consistent with this grant, considering all middle housing types, and considering on at least 30% of lots. Q: So we do not have to use this funding to create a new zone. Could we create new zone? A: Yes. Q: Could we conduct financial analysis of proposed policies to evaluate affordable housing requirements? A. The grant funds can be used to outreach to, communicate with, and educate the community on issued related to middle housing as long as the jurisdiction is using that outreach to evaluate the implementation of middle housing types on at least 30% of the lots currently zoned as single family. If some of that communication includes clear analysis and information on middle housing types, affordable housing, and implementation this could be included in the grant. Q: Can the grant be used to assess displacement, equity, and other impediments to middle housing like fees, financing, etc.? A: Yes. Absolutely! Q: Can the final deliverable be only draft comp plan policies, or would it also have to include draft zoning code amendments? A: In looking at the proviso, the language is "$7,500,000 of the general fund—state appropriation for fiscal year 2023 is provided solely for the department to administer grants to eligible cities for actions relating to adopting ordinances that would authorize middle housing types on at least 30 percent of lots currently zoned as single family residential. " The list of eligible activities leads with "(i) Analyzing comprehensive plan policies and municipal code to determine the extent of amendments required to meet the goal of authorizing middle housing types on at least 30 percent of lots currently zoned as single family residential;" Policy changes are certainly part of the support for code changes, and it is great time to review policies, but the intent of the proviso is beyond changing policies, it needs to be on the path to adopting ordinances, or changes in code. You will only have 12 months, so the analysis and shaping potential middle housing will take a while. A first draft of code amendments would likely be sufficient, or even a list of which specific code sections would be need to be revised. TIMING OF APPLICATIONS AND POTENTIAL LEGISLATION Q: Could we have more time? A: No. We may ask for re -appropriation of unspent funds, but it is uncertain as this is operating funds, not capital funds (capital funds are what is typically re -appropriated). The current state biennium is July 1, 2021 through June 30, 2023. Typically operating funds are to be spent within the biennium. 84 Q: If we choose to submit for the July 5 deadline — will we receive lower priority like the climate grants? A: No, we should be able to fund everyone in this program. Q: Can you speak to missing middle housing bills that didn't pass? A. The middle housing bill (HB 1782) and others did not pass last year. It would have required significant densities around transit services. I have heard the bill may come back next session. We believe this grant program was intended as a voluntary approach at this time. MORE DETAIL ON COMMERCE TECHNICAL ASSISTANCE OPPORTUNITIES Comment: Cities like the sound of technical assistance. We have already come across the lack of capacity in the consultant world. So prepping a clear explanation of what those technical assistance people can do to help cities do the work would be really helpful. Q: Is the interdisciplinary team to help reduce jurisdiction reliance on consultants? A: Yes, we recognize that it is very difficult to hire consultants, or staff, at this time. The interdisciplinary team is Commerce in-house assistance to support in-house city staff or hired consultants. The team will be able to help in several ways: • Review existing comprehensive plans and other housing policies and suggest changes • Review your local code and recommend approaches to allowing middle housing • Assisting with community outreach • Completing the racial equity analysis, • Communications and messaging and a series of videos, presentations and handouts on various housing topics. Q: What are you looking for in terms of the pilot studies for middle housing? A: We are looking for communities that have done the policy work for middle housing. We can then hire a national level firm that develops model missing middle housing codes and design guidelines for cities of different sizes. Q: Our council isn't even aware of this need. Can we use the Commerce tech team to present on the need? A: yes! And we have provided slides on the grant program that local planners can use. MORE DETAIL ON WORKING WITH COMMUNITY-BASED ORGANIZATIONS (CBOs) Q: What are the parameters for subcontracting with CBOs? Are there certain eligibility requirements? Do they have to be based in the city? A: There are some guidelines for paying people to attend your meetings. We can find if there are state guidelines for working with CBOs. We will have to get back to you. Q: When we hear "CBO" — we hears a cultural identity group, NGO, etc. Is there something more specific or broad this is referring to? A: We will have to do more research to find out that answer. Q: Is it correct that we are not required to subcontract with community-based organizations, but applications that do include that aspect are prioritized? A: That is correct, subcontracting is not required, but consultation is certainly recommended. The proviso says that Commerce shall prioritize applicants who subcontract with multiple 85 community-based organizations that represent different vulnerable populations in overburdened communities, as defined in RCW 70A.02.010, that have traditionally been disparately impacted by planning and zoning policies and practices, to engage in eligible activities as described in (b) of this subsection. Q: Regarding CBO subcontracting funds, application instructions state, "Additional funding requests will be reviewed after the first round of applications are received." Is this above and beyond the base grant limits listed by city size (i.e. $100K for cities over 20K pop)? Yes. Q: Are there guidelines/limits for this additional CBO funding, and can you share that? There are no limits, but we put $20,000 in the example. We have heard that it can cost $2,000 to work with a community-based organization. So we thought about working with 10 groups. I think you would need to provide enough detail in your proposal to provide clear explanations about the improved engagement, and outcome based on how you would spend the extra money. Q: Should the additional funding for CBOs be explained and requested through the grant applications due June 9, or will there be a separate request period for that CBO funding? The request should be submitted as the same time. Q:Can you tell me more about Civic Spark Fellows to help with the work? CivicSpark is an AmeriCorps program operated by CivicWell (formerly the Local Government Commission) in California. Over the last seven years 500+ CivicSpark Fellows have contributed over 500,000 hours of support for hundreds of community resilience projects (e.g., climate action, affordable housing, mobility, and equitable community engagement) with over 250 public agencies. CivicSpark is coming to Washington in the Fall of 2022 and they are looking for local governments and organizations across the state who might be interested in hosting one or more AmeriCorps Fellows who will spend 11 months supporting local resilience projects including affordable housing. CivicSpark places highly motivated emerging leaders with local organizations for 11 -months to support research, planning, and implementation projects for community resilience. CivicSpark Fellows are AmeriCorps Members selected through a competitive national application process. Fellows have at minimum a college degree in a relevant field, as well as workplace and community service experience. Public agencies, state agencies, Tribes, and non-profit organizations can contract directly to host CivicSpark Fellows. To date, housing support projects have generally focused on priorities such as analysis of housing capacity and inventory, planning for increased housing supply, housing equity programs, and disaster recovery and rebuilding support. Applications are being accepted on a rolling basis, but they encourage interested applicants to apply in parallel with the Middle housing grant process (e.g. June 9). The local financial contribution is $29,000, which can be covered by the grant. For a bit more about the program, the background, and the process of getting involved, please see the attached flyer, visit the Washington Partner page, check out a recent MRSC Blog posting at Tapping the Power of Emerging Leaders for Climate Resilience or reach out directly to Kif Scheuer (kif@farallonstrategies.com). 86 2024-2044 Comprehensive Plan Update Middle Housing Grant Acceptance DETACHED SINGLE—FAMILY HOMES DUP LEX I. � rte " •-11-11 HT1 d. COURTYARD BUNGALOW TPFO1LEX P X APARTMENT COJR T `w 1 — - - _ - - - 1`15 SING' MIDDLE-IDU51" TOWNHOUSE MID—RISE MJL"e'LEx LIVE/WORK Planning and Community Development Committee October 3, 2022 Middle Housing Grant • $130, 000 from WA Dept. of Commerce • Grant Requirements: — Complete a GMA-required racial equity analysis + develop anti -displacement policies in response — Analyze and consider adoption of policies and code language to allow "Middle Housing" on at least 30 percent (lots or area) of currently zoned single family (LDR). — Contract with local Community-based Organizations to ensure historically underrepresented interests are considered (this involvement is required by GMA) — Provide deliverables of draft language by June 30, 2023. 2024-2044 Comprehensive Plan Update: Middle Housing Grant Acceptance Planning and Community Development Committee October 3, 2022 Why is this Grant Available? • 2022 Legislature — Wanted to address Housing Affordability, Supply, and Choice — Considered, but did not pass, a mandatory requirement that all cities allow Middle Housing in current Single Family zones — It's anticipated that the legislature will take up the issue again in 2023. 2024-2044 Comprehensive Plan Update: Middle Housing Grant Acceptance Planning and Community Development Committee October 3, 2022 What is "Middle Housing"? • A range of modestly -sized buildings with multiple units — Duplexes through six-plexes, townhouses, courtyard apartments, cottage housing, and stacked flats. • Designed to be compatible in scale/form with detached single-family homes • Intended to provide: — Diversity of housing choice: form, affordability, neighborhood character — Ownership opportunities 2024-2044 Comprehensive Plan Update: Middle Housing Grant Acceptance Planning and Community Development Committee October 3, 2022 Examples Duplex, Stacked Fourplex, Stacked Courtyard Building 1The term "Missing Middle" Housing was created by Daniel Parolek / Image 0 Opticos Design, Inc. I For more information visit www. missingmiddlehousinq.corn. 2024-2044 Comprehensive Plan Update: Middle Housing Grant Acceptance Planning and Community Development Committee October 3, 2022 Considerations • Pros — City is not mandated to adopt new zoning or standards for Middle Housing — Opportunity to evaluate Middle Housing question before possible legislative mandates — The grant funding will pay for some required Plan Update analysis and community coordination • Cons — Timeline is short (consultants tightly booked) — Community attitudes may be resistant to change 2024-2044 Comprehensive Plan Update: Middle Housing Grant Acceptance Planning and Community Development Committee October 3, 2022 Recommendation • Forward grant agreement to —the Committee of the Whole (10/10/22) for discussion, and —the Council Regular meeting (10/17/22) for approval. 2024-2044 Comprehensive Plan Update: Middle Housing Grant Acceptance Planning and Community Development Committee October 3, 2022 Questions? 2024-2044 Comprehensive Plan Update: Middle Housing Grant Acceptance Planning and Community Development Committee October 3, 2022