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Home My WebLink AboutPlanning 2023-10-05 ITEM 7 - LAND USE, HOUSING (REASONABLE MEASURES) AND CENTERS - STAFF REPORTCity of Tukwila Allan Ekberg, Mayor Department of Community Development - Nora Gierloff, AICF, Director TO: Tukwila Planning Commission FROM: Nora Gierloff, AICP, DCD Director BY: Nancy Eklund, AICP & Neil Tabor, AICP DATE: October 5, 2023 SUBJECT: Land Use, Housing, and Centers - Briefing ISSUE This agenda item is to brief the Planning Commission at their October 5, 2023, meeting, on background information on reorganization of comprehensive plan update element titles, regional centers and reasonable measures related to housing production in the City of Tukwila. BACKGROUND Reorganization of Elements In an effort to streamline, and more logically distribute content for all users of the comprehensive plan, staff proposes establishing a "Land Use" element, a required element under the Growth Management Act. In previous plans, Tukwila distributed Land Use information throughout the plan rather than consolidating it. In addition, the 2024 update will see the creation of a "Centers" element, which will combine the two short elements addressing the "Southcenter — Tukwila Urban Center and "Manufacturing/Industrial Center". Staff also proposes removing the "Residential Neighborhoods", "Tukwila International Boulevard", and "Tukwila South" as standalone elements. Policies from these elements will be reviewed to eliminate redundancy, improve clarity, and ensure relevance and legality, and those retained will be generally redistributed as seen as the second image below. Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov 5 INFORMATIONAL MEMO Land Use, Housing, and Centers - Briefing October 5, 2023 Page 2 of 10 Element Consolidation: • Element List (2015 Update) 1. Community Image and Identity 2. Economic Development 3. Housing 4. Natural Environment 5. Shorelines 6. Parks, Recreation and Open Space 7. Residential Neighborhoods 8. Tukwila International Boulevard District 9. Tukwila South 10. Southcenter — Tukwila's Urban Center 11. Manufacturing/Industrial Center 12. Utilities 13. Transportation 14. Capital Facilities 15. Roles and Responsibilities Element Reorganization: • Element List (2024 Update) — Land Use — Community Image and Identity — Economic Development — Regional Centers — Housing — Natural Environment — Shorelines — Parks, Recreation and Open Space Residential Neighborhoods Tukwila Intcrnational Boulevard District Tukwila South Southccntcr Tukwila's Urban Ccntcr Manufacturing/Industrial Ccntcr — Utilities — Transportation — Capital Facilities Roles and Rcsponsibilitic3 • Residential Neighborhoods — • Tukwila International Boulevard District • Tukwila South • Southcenter— Tukwila's Urban Center • Manufacturing/Industrial Center • Roles and Responsibilities • Land Use & Housing (primari// • Land Use Land Use Regional Centers Regional Centers Community Image & Identity Regional Centers As noted, the 2024-2044 Comprehensive Plan update will consolidate the Southcenter Urban Center Element and the Manufacturing Industrial Center Element into a Regional Growth Centers Element. As a refresher, regionally -designated Centers are a focal point for the growth management and transportation strategies for the central Puget Sound region articulated in VISION 2050 and the associated regional transportation plan. The intent of this emphasis is to concentrate more of 6 INFORMATIONAL MEMO Land Use, Housing, and Centers - Briefing October 5, 2023 Page 3 of 10 the approximately 5.8 million people and 3+ million jobs expected to live in the Puget Sound area by 2050, and to encourage the efficient use of land and infrastructure. In 2025, the Puget Sound Regional Council will begin to monitor how well Centers are doing at achieving the activity unit thresholds that were established as criteria for designation, and for planning achievement. The City will need to demonstrate that it has planned sufficiently to accommodate and encourage increased development in these areas. Housing Growth Targets & Reasonable Measures Under the Washington Growth Management Act (GMA) fully planning counties, such as King County, are required to assign housing targets to each jurisdiction in order meet current and projected housing demands. For the period between 2019 to 2044, the housing target for production of new net housing units in Tukwila is 6,500 units. Based on the rate of housing development in Tukwila from 2019 to present, it will be necessary to build approximately 250 net units to each year until 2044 to meet this target. For the first comprehensive planning cycle, jurisdictions will be required to "plan for and accommodate" not only a specific number of housing units, but also show how they plan to accommodate housing units affordable to households within certain area median income (AMI) bands, as well as how to accommodate permanent supportive housing and emergency housing. As seen in the charts below, the largest need for units within King County is at the lowest and highest AMI band, or the least wealthy and the most wealthy households. At this time, allocations shown for the City of Tukwila are draft number and not yet finalized. The methodology used to determine allocations to individual jurisdictions included factors such as ratio of lower wage jobs to affordable housing units, and how many existing affordable housing units exist. Tukwila's highest growth targets will be in the highest income range, for units affordable to households earning 120 percent of AMI and above; this is similar to much of South King County. Targets also note the number of Permanent Supportive Housing (PSH) units required. Draft numbers will be reviewed at the King County Growth Management Planning Council and passed onto the King County Council later this year. 7 INFORMATIONAL MEMO Land Use, Housing, and Centers - Briefing October 5, 2023 Page 4 of 10 Tukwila 2019-2044 Housing Targets by AMI 3500 3000 2500 4' c 2000 D on c N 0 1500 1000 500 0 . ■ 0 to 30 30 to 50 50 to 80 80 to 100 100 to 120 120 + PSH Percentage AMI Ranges 90000 80000 70000 60000 c D 50000 on c '7) 40000 c 0 = 30000 20000 10000 0 King County 2019-2044 Housing Targets by AMI 0 to 30 30 to 50 50 to 80 80 to 100 100 to 120 120 + PSH Percentage AMI Ranges 8 INFORMATIONAL MEMO Land Use, Housing, and Centers - Briefing October 5, 2023 Page 5 of 10 As shown in the table below, between 2006 and 2018, only a net of 130 units of new housing units were built in Tukwila. Due to the limited housing growth that occurred in Tukwila between 2006 and 2018, the City has been tasked to provide "reasonable measures" to "encourage and/or incentivize residential development" within the City. These reasonable measures could take a variety of forms, but will need to be addressed and incorporated into the comprehensive plan update and development standards. The image below from the King County Urban Growth Capacity Report illustrates the relatively slow housing growth within Tukwila over the aforementioned period. Exhibit 13. Residential Growth Compared to Targets, 2006-2018 Uty f Turlsdlctlon 2006 Total 2006-2035 2006-2018 2018 Total % of 2035 Remaining Annual Growth Housing Housing Housing Housing HU target 2035 Needed to Units Target Production Units pace Target Achieve Target Metropolitan Cities Bellevue Seattle Subtotal Core Cities Auburn Bothell Burien Federal Way Kent Kirkland Redrnnnd Renton SeaTar Tukwila Subtotal 55,107 20,056 29 2, 881 99.7G0 347,988 119,816 23,602 9,522 19,584 34,560 43,552 3 5, 556 2 2, 790 36,168 10,301 7,739 243,374 11,159 4,420 5,150 9,396 10,753 9,941 11,896 17,231 6,728 5,626 92,300 6,591 61,698 79% 13,465 63,675 356,556 154% 36,085 70,266 418,254 1429'0 49,550 3,138 2,204 1,225 2, 525 4,259 3,100 4,946 6,607 548 130 28,683 26,740 68% 8,021 11,726 a_ 1219511 2,216 20,809 57% 3,926 37,085 65% 6,871 47,811 - 96% 6,495 38,656 75% 6,841 27,736 • 100% 6,950 42,775 L 93% 10,623 10,049 • 20% 6,180 7,869 6% 5,496 272,057 759'0 63,617 1.3% 0. 6% 0.7% 1.8% 1.1% 1.1% 1.1% 0.8% 1.0% 1.594 1.5% 3.4% 4.1% 1.4% Summary of Neighborhood Workshop Middle Housing Work As a subconsultant within the 2022-2023 Middle Housing Grant, Neighborhood Workshop analyzed the City's development standards and local market conditions related to development. Using this information potential amendments to development regulations were tested to identify potential financial impacts. Some potential impacts to the cost of a new housing product can be seen on the image below. INFORMATIONAL MEMO Land Use, Housing, and Centers - Briefing October 5, 2023 Page 6 of 10 Current Standards Modified Standards Tukwila, Washington Policy Choice Fiscal Sensitivity Testing New Construction Neighborhood Workshop 3,Person 3-Person Sales Price HH AMI Monthky Rent HH AMI Modified Lot Area Requirements $393,460 167% $3,183 197% Right -Sized Parking $386,339 164% $3,132 194% Increase Buildable Area (Setbacks/Lot Coverage) $345,251 147% $2,803 17495 Allow Fee Simple Land Division (up to Four) $342,006 145% $2,803 174 Percent of Change Before Market Decisions -66% -60% There is an additional opportunity to reduce costs by improving the construction approval process, Every three months in delay adds $8,000 to the cost of constructing these homes. Les Affordable More Affordable Less Likely More Likely Summary of Transit -Oriented Development Housing Strategies Plan The Tukwila TOD Housing Strategies Plan was completed in September 2021, and focused on an area within a 1/2 mile walkshed of the Tukwila International Boulevard Light Rail Station. Although the area of analysis only represented a portion of the City, many valuable findings, including market analyses of encumbrances to market rate development based on current standards were identified. In this process, community outreach included the public, community groups, and developers. That outreach process summarized the challenges, public sentiments and opportunities well: • "Tukwila has several land use and infrastructure code requirements that are outdated, reflecting the City's suburban past rather than the urban center it is today. This impacts all development potential, but particularly affordable housing. • Tukwila should provide a diverse range of housing options for people in all stages of life; from new families to single renters, seniors, and intergenerational families, everybody has healthy and safe options for a home in Tukwila. 10 INFORMATIONAL MEMO Land Use, Housing, and Centers - Briefing October 5, 2023 Page 7 of 10 • There are slightly different perspectives between residents and developers about the need for parking in the TIB area. While both perspectives agree that there is now, and will continue to be, a need for parking for new residential units, residents feel a much greater need for more parking while developers feel requirements are too onerous. • In addition to needing more housing (and diverse types), there should more opportunities for home ownership in the form of townhomes and condos. The City should sponsor financial/home-buying educational opportunities so people invest in a home and start to build intergenerational wealth. • People recognize change is coming, and City staff should immediately begin engaging with the diverse ethnic and cultural communities along the TIB. Engagement should be meaningful and authentic, involve community leaders, and be conducted by people who reflect Tukwila's diverse communities and that can communicate with people in their primary (non-English) languages." Specific recommendations made in the report can be seen in figures 53 and 54 below. Icon m M W Recommendation Type Recommendation calls for a zoning or Comprehensive Plan change. Recommendation can be implemented through the Zoning Code and/or through Comprehensive Plan update and code amendment processes. Reconunendation calls for a new program. Implementation will require staff and ��}}}}►►►► or resources to support new or expanded program operations. Recommendation calls for increased partnerships and collaboration. 41,411 IV Implementation will focus on enhancing relationships and securing partnerships. 11 INFORMATIONAL MEMO Land Use, Housing, and Centers - Briefing October 5, 2023 Page 8 of 10 Fissure 54_ Recommended Actions and Implementation Considerations 0 Encourage Higher Density Development z• # Al Recommended Action Modify llnit Mix Requirements Recommendation Type Ell pp�� WM TIB Station rea or Citywide? TIB Station Area Near -term or Long -Term? Near Term Impact to City Resources Moderate staff time A2 Reduce Parking Ratios �i TIB Station Area Near -Term Moderate staff time A3 Modify Parking Standards for 4- over-1 Development � p�p WVIN TIB Station Area Near -Term Moderate staff time A4 Adjust Recreational Space Requirements Eli P]A TIB A Station ian Near -Term Moderatetime staff A5 Reduce Step Back Requirements Wd TIB Station Area Near -Term Moderate staff time A6 Promote Site Assembly for Smaller Parcels MA TIB Station Area Near -Term Moderate staff time Anti -Displacement and Community 5ta bilization 61 Consider a 12 year MFTE Program giN TIB Station Area Near -Term Moderate staff time and lost tax revenue for the duration of the program B2 Identify Opportunities t° Increase Homeownershi p �� $ Citywide Long-term Moderate staff time and program funding B3 Support Community and Faith -Rased Institutions'*I* Efforts to Develop Affordable Housing $ Citywide Long-term Moderate staff time and program funding B4 Expand Tenant Supports 'h $ Citywide Long-term Moderate staff time and program funding 12 INFORMATIONAL MEMO Land Use, Housing, and Centers - Briefing October 5, 2023 Page 9 of 10 Objective # Recommended Action Recommendation Type TIB Station Area or Citywide? Near4erm or Long -Term? Impact to City Resources B5 Monitor and Track Regulated Affordable Housing '�r $ Citywide Long-term Some staff time and potential program funding = o w m w - E c.) a = 0 v i' 0 iv�� N c .1 B6 Monitor and Track Unregulated Affordable Housing [j' T �N Citywide Long-term Some staff time and potential program funding B7 Offer Tools and Strategies for Housing Preservation Citywide Long-term Moderate staff time and program funding BBo Evaluate a Preservation Funding Program in Exchange for Affordability Restrictions �' Citywide, TIB Station Area Focus Long-term Moderate staff time and program funding B9 Develop TIB Community Economic Development Strategies E $ TIB Station Area Focus Near -Term Moderate staff time and budget for consultant study C1 Create a TIB Station Area Parking Strategy Wd TIB Station Area Long -Term Significant staff time and program funding C2 Connect the Station Area to Parcels South of SR 518 11 (j' 4% �1 *1� TIB Station Area Near Term Significant staff time and program funding Leland Consulting Group Preliminary Findings and Recommendations The City is working with period update subconsultant Leland Consulting Group to identify impediments to potential housing development withing zoning allowances and development regulations, primarily within the "MDR" and "HDR" zones. Though work has not yet concluded, initial findings show potential impediments to develop in lower than expected density allowances, upper -floor stepback requirements, high parking requirements, low height allowances, and high recreation space requirements among other item. The study, also found there is market demand for multifamily development, as indicated in the low current and projected vacancy rates for apartments between 21 and 100 units. 13 INFORMATIONAL MEMO Land Use, Housing, and Centers - Briefing October 5, 2023 Page 10 of 10 Stabilized Vacancy Rates for Buildings with 21-100 Units, South King County (CoStar) 7.00% 6.00% 5.00% 5.78% 5.90% 4.51% 4.00% 3.79% .74% 3.45% 3.00% 2.00% 1.00% 0.00% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Tukwila —SeaTac —Burien ATTACHMENT A. Regional Centers - MIC & Southcenter Des Moines Kent — Renton 14