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Home My WebLink AboutPlanning 2023-01-26 Item 7 - New Requirements for Local Housing Planning with WA State Department of CommerceNew Requirements for Local Housing Planning Updating your housing element Shane Hope, AICP POLICY SPECIALIST CITY OF LAKEWOOD PLANNING COMMISSION MEETING - 10/5/2022 1% We strengthen communities HOUSING INFRASTRUCTURE AND HOMELESSNESS ''" BROADBAND SMALL BUSINESS ASSISTANCE PLANNING AND TECH ASSISTANCE SERVICES AND FACILITIES CRIME VICTIMS AND PUBLIC SAFETY ri ECONOMIC DEVELOPMENT WASHINGTON STATE DEPARTMENT OF COMMERCE 2 Why does the Growth Management Act exist? The GMA was adopted in 1990 as a statewide planning framework to: • Address uncoordinated development and urban sprawl • Manage threats to the quality of life in Washington • Require local planning, guided by state law, and regionally coordinated State law: RCW 36.70A Guidance statutes: WAC 365-196 WASHINGTON STATE DEPARTMENT OF COMMERCE 1 • 3 Growth Management Act (GMA) framework for planning GMA goals Multicounty & countywide planning policies Local comprehensive plans Development regulations WASHINGTON STATE DEPARTMENT OF COMMERCE (-Capital facility investments Private Developments Local Programs Mir 4 JOE'S ADDITIONAL SLIDES Growth Management Act (GMA) requires that comprehensive plans and development regulations be updated every 10 years CIailam Jeffefson Whatcom Skagit Snohomish WASHINGTON STATE DEPARTMENT OF COMMERCE •u 2024 Due December 31 §i 2025 Due June HD' 2026 Due June 30th 'I 2027 Due June 301" Starred counties are partially planning 5 Required elements of a GMA comprehensive plan Land Use: Land uses, stormwater planning, ground water, physical activity Transportation: Inventory, assessment of current and future needs, bicycle and pedestrian component Housing: Inventory of existing housing and projected needs; identifies sufficient land for all income levels and a variety of housing types Utilities: Inventory, assessment of current and future needs, coordination between providers and land development Capital Facilities: Inventory, assessment of current and future needs, coordination of planning affordability analysis of serving the land use plan Rural (counties only): Define and protect rural character RCW 36.70A.070 and WAC 365-196 WASHINGTON STATE DEPARTMENT OF COMMERCE IA 6 Need for more robust housing planning • From 2000-2015, Washington state fell over 225,000 homes short of meeting its housing needs* • Shortage of housing is not unique; Oregon and California have taken recent steps to better plan for housing needs • Disparities in housing in Washington: • Rates of cost -burden highest in communities of color (BIPOC) • The homeownership rate for households with people of color in Washington is 19 percentage points below that of non -Hispanic white households** • In 2021, Washington adopted HB 1220 to direct communities to strengthen how they accommodate housing *Source: UpForGrowth, 2020 **Source: Washington State Homeownership Disparities Work Group Report, 2022 WASHINGTON STATE DEPARTMENT OF COMMERCE 7 HB 1220 (laws of 2021): Changed RCW 36.70A.070 (2) The Housing Element Changed GMA housing goal: • "Plan for and accommodate encourage the availability of affordable housing affordable to all economic segments." Requires Commerce to provide projected housing need to local governments: • For moderate, low, very low, and extremely low-income households • For permanent supportive housing, emergency housing and emergency shelters (referred to as special housing needs) WASHINGTON STATE DEPARTMENT OF COMMERCE 8 HB 1220: Changed RCW 36.70A.070 (2): The Housing Element Local housing element to: • Identify sufficient capacity of land for identified housing needs, including the number of units and types provided by Commerce • Within urban growth areas (UGAs), provide moderate density housing options (such as townhomes, duplexes, and triplexes) • Document barriers to housing availability, such as gaps in local funding, development regulations, etc. • Make adequate provisions for housing needs for all economic segments, with consideration for: • Low, very low, extremely low, and moderate -income households • Housing locations in relation to employment locations • Role of accessory dwelling units (ADUs) WASHINGTON STATE DEPARTMENT OF COMMERCE 9 HB 1220: More changes... Disparate impacts, displacement and exclusion • Identify local policies and regulations (including zoning, disinvestment, and infrastructure availability) that result in racially disparate impacts, displacement, and exclusion in housing • Begin to undo these impacts through policies and regulations • Identify areas at higher risk of displacement and establish anti -displacement policies WASHINGTON STATE DEPARTMENT OF COMMERCE Figure 5; Overall WI Value, Combined Value for Ail Categories by Tract Spokane Other Jurisdictions Not Depict Only Parings for rrm coy of Spokane r1,11 icol;io,ated Spa,. Cuidrrry ae Depict -1,f SVI 2018 Rating (Percentile) All Categories Combined Higher Risk . 0.80 To 1.90 ■ O.60 tv 0.79 Lower RIA 111 0.40 tQ 0.59 0.20 to 4.39 ® 0.0000.0.19 Drawn: 7111L/11.)20 klannmg Department S,_.,1,.. 1.1411.000 10 Commerce has projected housing needs 1 million more homes needed statewide over next 20 years King County Population Target = 2,872,263 Affordability Level (% of Area Median Income) Total 0-30% Non - PSH 100 - PSH 30-503 50-8O% 80-100% 120% 120%+ Total Future Housing Needed (2044 (PSRC)) Baseline Housing Supply (2020) Net New Housing Needed (2020-2044 {PSRC)) 1,290,335 148,049 54,994 141,771 179,082 197,191 137,488 464,364 960,951 32,115 6,266 91,505 155,214 181,009 119,133 375,709 329,384 83,330 48,728 50266 23,867 16,182 18,355 88,656 Emergency HausingShelter Beds 6.5,.657 8,330 57,327 WASHINGTON STATE DEPARTMENT OF COMMERCE *PSH = permanent supportive housing King County Area in 2021 • Area Median Household Income: $110,556 • 30% =approximate $33,167 • 50% = approximate $55,225 • 80% = approximate $88,445 WASHINGTON STATE DEPARTMENT OF COMMERCE • More and different types of housing will be needed. • Housing for people with incomes below 50% AMI may only be possible with subsidies (from governments or non -pro its). • City's role is to allow or encourage it, not necessarily to build it. • Some types of market -rate housing maybe able to serve households with incomes at moderate and higher incomes. 12 What housing options to consider? • Mixed use areas with mix of multi -unit housing & commercial • Opportunities for people with special needs (disabled, seniors, veterans, etc.) • Opportunities for people with lower incomes WASHINGTON STATE DEPARTMENT OF COMMERCE • ADUs (attached & detached) • Small-scale "middle housing" mixed in with detached houses • Other traditional & innovative ideas 13 So what is middle housing? Detached Single -Family Houses ! Duplex: Side -By -Side + Stacked r Fourplex: Stacked r r .� Multiplex: Courtyard Cottage Townhouse Medium Building Court — 'Missing Middle Housing . . and why is it sometimes called "missing"? WASHINGTON STATE DEPARTMENT OF COMMERCE Triplex: Stacked N. Live- Work Mud -Rise l_ 1i11 1 11�if�l, 1 �fff� OPTIC05 14 Local governments will allocate & plan for housing Allocate countywide housing needs by income bracket • Commerce will provide allocation tool and countywide housing needs • Counties & cities should agree on housing needs allocation that sums to total countywide need Plan for housing needs • Review and update policies • Review zoning assumptions and identify land capacity • Make adjustments to zoning & any other regulations to have sufficient capacity for housing needs • Review other regulations, fee structures, incentives, etc. which influence housing & identify actions to address barriers • Authorize and use available local funding tools WASHINGTON STATE DEPARTMENT OF COMMERCE 15 2022 Joint Housing Opinion Survey eir Puget Sound Regional Council Housing costs and homelessness are the top two issues throughout Washington state 4,329 people surveyed across 12 counties in English, Chinese, Spanish, and Vietnamese Link to full survey report WASHINGTON STATE DEPARTMENT OF COMMERCE 77% say rents are too high 75% say it costs too much to buy a home 83% say more reasonably priced housing is needed in their communities Respondents Want More Housing Options 78% say they want more housing options for seniors, teachers, firefighters, childcare workers, and health care workers 74% prefer most new housing to be in walkable neighborhoods 64% agree that their community needs more diverse and affordable types of housing 1,000,000 500,000 Commerce projects we need 1 million more homes needed by 2044 380,000 units 196,000 units 490,000 units Permanent Supportive Housing • Below 50% AMI 50-100% AMI • Over 100% AMI -►4 WASHINGTON STATE DEPARTMENT OF COMMERCE 18 Strong Statewide Support for More Diverse Housing Communities need more diverse & affordable housing types, such as duplexes, cottages, courtyard apartments, townhomes and mixed developments. 66% Agree Multi -family housing, like triplexes, should be allowed in single-family zones all standards the zone are met, such as heights, setbacks, and parking. OO/ w Statewide (n=4, 509) Western WA (n=883) Central Puget Sound (n=2748) Eastern WA (n=1,154) J/ 18% 36% 8°i 0 18% 39% 28% 9 18% 34% 32% 11% 19% 38 26% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Strongly disagree • • Strongly agree Ii -"4 WASHINGTON STATE DEPARTMENT OF COMMERCE 19 Government Should Address Urgent Need to Tackle Housing Supply Residents want government to do more 83% say government agencies should work together to address the need for housing 64% say government agencies should do more to provide housing not being delivered by the market WASHINGTON STATE DEPARTMENT OF COMMERCE Statewide Interest in Investments to Support Quality Communities • Infrastructure • Transit -oriented development • Access to schools, work, and resources • Affordable housing near jobs and transportation • Walkability • Open spaces Central Puget Sound • Walkability • Understand traffic and transportation needs • Quality of life Eastern WA • Infrastructure • More mass transit options • Focus on sustainability • Zoning includes rec spaces children • Walkability • Green spaces WASHINGTON STATE DEPARTMENT OF COMMERCE What is City's responsibility? • Consider what is needed for comprehensive plan & development regulations to provide enough housing • Consider whether incentives or other programs & partnerships can help • Coordinate at regional level with King County & PSRC WASHINGTON STATE DEPARTMENT OF COMMERCE • Get broad public input on needs & opportunities • Consider what can be done to reduce past racial impacts • Propose changes, as needed to comp plan & development regulations by December 2024 23 Commerce Assistance Specific to City of Tukwila Grants: • Periodic Update grant • HAPI grant • Middle Housing grant (including outreach to community based organizations) Technical: Peer meetings Data for assessing racially disparate impacts WASHINGTON STATE DEPARTMENT OF COMMERCE SII! I11I1i!Ii1»iIi ■ Commerce assistance Grants: https: www.commerce.wa.gov/serving-communities/growth- management/growth-management-grants/ Main Housing Web Page (picture at right) https://www.commerce.wa.gov/serving-communities/growth- management/growth-management-topics/planning-for-housing/ Growth Management: HB 1220 Guidance www.commerce.wa.gov/serving-communities/growth- management/growth-management-topics/planning-for- housing/updating-gma-housing-elements/ Middle Housing Technical Team New 3 -person team (experienced directors) hired in 2022 Growth Management: Periodic Updates web page www.commerce.wa.gov/serving-communities/growth- management/period ic-update/ Short Course on Local Planning https://www.commerce.wa.gov/serving-communities/growth- management/short-course/ WASHINGTON STATE DEPARTMENT OF COMMERCE Manning for Housing Jump to Updating BMA Housing Elements (HB 1220) Multi -Family Housing Property Tax Exemption program Housing EZView website 25 Upcoming assistance from Commerce Including: • Accessory dwellings guidance • Land capacity guidance • Guidance to reduce disparate impacts • Photo Library (middle housing images) • Middle housing toolkit of housing types & menu of standards that can be adjusted/ adopted to update local development regulations WASHINGTON STATE DEPARTMENT OF COMMERCE 26 Questions? https://www.commerce.wa.gov/serving- communities/growth-management/growth- management-topics/planning-for-housing/ Dave Osaki GROWTH MANAGEMENT SERVICES -MIDDLE HOUSING TEAM A.A Washington State Department of ,i0 Commerce www.commerce.wa.gov