HomeMy WebLinkAbout04-19-19 Agenda with attachmentsCouncil Members Mdndez, Hill, Coffey and Cousens as alternate
2 Id Floor Conference Room
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1. Approval of minutes (3-1-19)
A. Review the Affordable Housing report and prioritize policy options for
the full Council as suggested under action steps on page nine, step 2 (as
approved by Council at the March 12, 2019 special council meeting)
4. Other business
Council Members Mdndez, Hill and Coffey
2nd Floor Conference R-zeTr
munivilutiviml;k1l
Meeting convened at 8:37 a.mw
Council present: Chair Carmen Mendez, Kathy Coffey, and Brad Hill via speakerphone
Staff present: City Manager Cliff Moore, Communications & Public Affairs Director
Randy Beehler, and Sonya Claar Tee, City Clerk
Guest: Dana Dwinell, City resident
1. Approval of minutes
A. Coffey moved and Hill seconded to approve the 12-21-18 minutes. The
motion carried by unanimous vote.
2. New business
A. Committee members reviewed applications for the Ad Hoc Homeless
Facility Review Committee, noting that Council has already approved the
committee position structure. The Committee made the following
recommendations by consensus:
Council representative: Kathy Coffey (as previously approved by
Council)
County representative: Mike Leita (as appointed by the County
Commissioners)
Arboretum representative: Leslie Wahl
Expert on programs: Lee Murdock
Expert on housing: Nathan Poel
Community members: Andy Ferguson, Nathan Krebs and either
Rhonda Hauff or Anita Monoian
B. Request for support of VFW sales tax exemption legislation
After discussion, it was Committee consensus to recommend
support for HB 1307
C. Review other applications for Boards & Commissions
Claar Tee reported there is one application for the Henry
Beauchamp Jr. Community Center Advisory Board (HBCC), which
the OIC Board recommends. It was Committee consensus to
recommend James Parks to the Henry Beauchamp Jr. Community
Center Advisory Board.
3. Old business — none
A. Dana Dwinell provided a video link and information for Healing Species,
an 11 -week violence intervention/character education outreach program
in public schools with rescue animals teaching children about
compassion, empathy and overcoming obstacles. She asked for the
Committee's support in gaining traction for this program with the school
district. Moore reported there may be limited funding available through
GRIT or the SAMHSA grant. After discussion, it was Committee
consensus to update Council on this topic and have the GRIT Committ&.,
review the curriculum and feasibility of this project.
1. Committee members noted the March 15 meeting would need to bz
canceled due to conflicts.
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MINOT. "n
Carmen Wndu, -Chair
To: Yakima City Council Partnership Committee
From: Joan Davenport, Community Development Director
Sara Watkins, Senior Assistant City Attorney
Cliff Moore, City Manager
Date: April 19, 2019 Partnership Meeting
Subject: Affordable Housing Report Committee Assignments and Summary Recommendation
Background of Partnership Committee Assignment
At the March 12, 2019 Study Session on Affordable Housing, the full City Council referred
several specific topics to the City Council Partnership Committee. These topics were intended to
be a starting point for more detailed discussions. The items included in the Study Session
report were not considered "exhaustive" and it is very probable that other strategies will be
identified that had not yet been described.
In addition, the Planning Commission was given a list of potential changes to the R-1 zoning
district; options for designating additional land for multi- family construction; and various other
regulatory strategies. The Planning Commission has started review and general discussion
about the items that were referred for their review.
A third set of topics were referred back to the full City Council for more policy level discussion. A
follow up report to the full Council is scheduled for May 7, 2019.
Specific,.Committee Assignmentfor Review
The Partnership Committee was asked to review the Affordable Housing report and help
prioritize policy options for the full Council, including:
1. Review methods to encourage below market rate construction of multi -family housing.
2. Work with Yakima Housing Authority to bring more rent vouchers to Yakima from HUD.
3. Explore potential rehabilitation incentives the City could offer existing building owners to
develop mixed use projects with commercial/office on ground floors and housing units on
upper floors.
As noted above, these three items were intended to be a general starting point for discussion,
not a complete list of tasks for review. A "Partnership Approach" is necessary for all three of
these topics.
1. Item "1" will involve participation by the building community. Development of below
market rate housing most often includes funding or incentives to support construction of
housing units that will rent or be owned by families that are not able to pay housing costs
of a market rate project. To be affordable, housing costs are 30% or less of a median
family income. In Yakima 32% of renters and 49% of home owners are cost burdened.
Non-profit builders, such as the Yakima Housing Authority, Catholic Charities,
Farmworker Housing, Habitat for Humanity, OIC and others most often rely on financing
from Washington State programs such as the Housing Trust Fund or the Low Income
Housing Tax Credit program. As an Entitlement Community, the Community
Development Block Grant (CDBG) and the HOME Investment funding from HUD
provides Yakima with some additional resources to support new construction of much
needed housing. In addition, the city should work with the Central Washington
Homebuilders Association, to discuss how to help foster new construction of housing
units in a more diverse and at greater density.
2. Item "2" is a specific strategy to determine if the City of Yakima can assist or support
securing more rental vouchers. The Yakima Housing Authority (YHA) provides rental
assistance to low-income families in the private rental market through the Housing
Choice Voucher Program, which is funded by the U.S. Department of Housing and
Urban Development (HUD). The number of rental vouchers in Yakima is limited. Also
limited is the supply of rental units available for families to use their vouchers. In
addition, the YHA also administers voucher programs for Veterans and non -elderly
disabled persons. The YHA will be invited to attend a Partnership Committee to discuss
the need for more and the role of Housing Vouchers.
3. Item "3" will require examination of building codes, fire codes and city regulations to
determine appropriate strategies that would encourage redevelopment of existing
structures for housing. We most often think about the supply of 2 and 3 story buildings in
the downtown core when evaluating mixed use buildings. The City may also wish to
review strategies that would encourage the redevelopment of vacant or under used
single story buildings, such as former grocery, retail or industrial uses. Advantages of
redevelopment construction includes public utilities are often in place and investment in
vacant buildings can revitalize a larger area. Partnerships in this strategy should include
downtown interests (DAY, Front Street, YCDA, business associations), Historic
preservation interests,
A StrategicApproach to Affordable, H ousi ng
To create a successful program that encourages more housing units and a diversity of housing
types in the community, we will need many partners. As demonstrated by the wide variety of
topics discussed at the March 12, 2019 Study Session on Affordable Housing, this is a complex
issue. To encourage more housing development, there must be:
• Land available at feasible price
• A funding plan to support construction and maintenance of the project
• Zoning in place to allow density
• Neighborhood acceptance of new development
• Certainty of process and permitting timelines
• Infrastructure in place
• School capacity to serve new families, as necessary
• Connections to public transit, parks, retail with sidewalks create neighborhood appeal
The City Council Strategic Plan includes goals focusing on Neighborhood Building and fostering
Public Trust. Strategies include Equity Reports as reference tools, use of the Community
Integration Committee for outreach, partnering with the Hispanic and Latino community to
address needs and expectations. In relationship to the Council Strategic Plan, the entire Yakima
community must be committed and understand the benefits of expanding housing opportunities.
A Community Engagement Program should be the foundation to support changes in policies
that encourage new housing. The entire community must be assured that Neighborhood
preservation is a priority of the City, as well as providing more opportunity for new residential
development. This is particularly important if changes are proposed in the R-11, Single Family
Zoning District. Approximately 62% of city residents live in a single family home. The R-1 Zone
is by far, the most dominant land use category in the City of Yakima, covering 6,813 acres of the
land in the City limits.
In order to develop an effective Community Engagement Program, as well as assist in
prioritizing policy or regulatory tasks and strategies, staff recommends the City initiate a
"Housing Action Plan". The Housing Action Plan (HAP) with a focus on Community Engagement
would guide a participatory education and listening process, as well as coordinate and focus the
efforts of partners and the City toward the common goals of:
1. Developing more housing options,
2. Increase density, diversity and distribution of housing choices.
Implementation of Eguity Stud
In 2017, the Yakima City Council conducted an Equity Study to illustrate and understand the
geographic areas in Yakima where disparities may exist in a variety of infrastructure and
demographic measures. City staff published and provided visualizations of a wide variety of
existing geographic data. In addition, the City of Yakima utilized the technical expertise of the
WSU Metro Center for Applied Research and Extension to analyze the data. A Housing Action
Plan could be a significant community step in implementing an Equity Lens project for Yakima
that would foster community engagement around a common set of goals.
Why and How to Start a Housing Action Plan (HAP)
At the March 12, 2019 Study Session, City Council gave broad support for additional work to
commence on multiple tasks to research options that would encourage more housing. Without
the benefit of a prioritized plan and community input, the efforts may become fragmented, not
effective and not supported by Council or the public. Other communities with a wide variety of
housing challenges have implemented focused housing action type plans.
Staff is writing a grant for $25,000 to the Yakima Community Foundation to support the Housing
Action Plan. It is likely that a HAP which is focused on Community Engagement will exceed the
$25,000 limit of the Yakima Community Foundation grant maximum. Therefore, staff is
searching for additional funding options, including the Washington State Department of
Commerce.
An update of the Affordable Housing Report is scheduled for the May 7, 2019 City Council
meeting. If the Partnership Committee endorses the HAP approach, that recommendation will
be presented to the full City Council.
% of
City of Yakima ...............
Acres
Total
All Residential zones
11,755.09
65.50%
All Commercial zones
4,106.96
22.90%
All Industrial zones
2,072.06
11.60%
Parcel Total Area
17,934.12
In order to develop an effective Community Engagement Program, as well as assist in
prioritizing policy or regulatory tasks and strategies, staff recommends the City initiate a
"Housing Action Plan". The Housing Action Plan (HAP) with a focus on Community Engagement
would guide a participatory education and listening process, as well as coordinate and focus the
efforts of partners and the City toward the common goals of:
1. Developing more housing options,
2. Increase density, diversity and distribution of housing choices.
Implementation of Eguity Stud
In 2017, the Yakima City Council conducted an Equity Study to illustrate and understand the
geographic areas in Yakima where disparities may exist in a variety of infrastructure and
demographic measures. City staff published and provided visualizations of a wide variety of
existing geographic data. In addition, the City of Yakima utilized the technical expertise of the
WSU Metro Center for Applied Research and Extension to analyze the data. A Housing Action
Plan could be a significant community step in implementing an Equity Lens project for Yakima
that would foster community engagement around a common set of goals.
Why and How to Start a Housing Action Plan (HAP)
At the March 12, 2019 Study Session, City Council gave broad support for additional work to
commence on multiple tasks to research options that would encourage more housing. Without
the benefit of a prioritized plan and community input, the efforts may become fragmented, not
effective and not supported by Council or the public. Other communities with a wide variety of
housing challenges have implemented focused housing action type plans.
Staff is writing a grant for $25,000 to the Yakima Community Foundation to support the Housing
Action Plan. It is likely that a HAP which is focused on Community Engagement will exceed the
$25,000 limit of the Yakima Community Foundation grant maximum. Therefore, staff is
searching for additional funding options, including the Washington State Department of
Commerce.
An update of the Affordable Housing Report is scheduled for the May 7, 2019 City Council
meeting. If the Partnership Committee endorses the HAP approach, that recommendation will
be presented to the full City Council.
City of Yakima Department of tDevelopment
Affordable • • White Paper
CouncilCity •y Session March 12, 2019
Summary
Like most communities in Washington State, and indeed throughout the nation, the City of Yakima does
not have an adequate supply of affordable housing to meet the needs of our community. Housing is
defined as "affordable" if the costs do not exceed 30 percent of a family income. Families who spend
more than 30 percent of their income are considered cost burdened and may have difficulty affording
necessities such as food, clothing, transportation and medical care.
Families that spend 50 percent of their annual income on housing are considered severely cost
burdened. Statewide, over 51% of renters are cost -burdened and nearly 234,000 households are
severely cost -burdened today. A family with one full-time worker earning the minimum wage cannot
afford the local fair -market rent for a two-bedroom apartment anywhere in the United States (2015
Washington State Housing Needs Assessment)., ,In order to reduce the cost burden to families there is
a gap (need)of 3,300 housipp units affordable to those earning lower incomes in the Cit , according to
the 2015 Washington State Housing Needs Assessment. This is the estimated measure of families
(10% of families) that are currently struggling to cover housing related costs in our community.
Yakima Housing Facts
The City of Yakima currently has approximately 35,980 housing units for 94,190 persons. Average
persons per housing unit is 2.66 persons. In 2014, 54 % of all housing units were owner -occupied and
46% rentals. Vacancy rates for existing housing units is very tight. Less than 2% of the rental units are
vacant at any particular time. Single family homes on individual lots are the dominant housing type in
Yakima.
Findings
Vacancy Rates, especially for rentals, is very low. Available rentals in Yakima have been
reported to drop from 7.8% to 1.7% vacancy rate between 2014 and 2016 (Runstad Center for
Real Estate Research). Today's vacancy rate for rentals in Yakima is estimates at about 1 %.
Home Ownership remains out of reach for many. Approximately 44% of our City families
cannot afford to purchase home at the area Median Home price. Median single family home
values (June 2016) in Yakima was $156,500 (compared to $275,600 in Wenatchee, $183,300 in
Spokane and $216,300 in Tri -Cities). To afford the purchase of a median value home in Yakima,
a family would need to make at least $38,500 annually ($3,200 monthly).
• Many households are cost burdened. In the City of Yakima, 32% of renters are cost
burdened and 49% of home owners are cost burdened (2012 study).
New construction of multi -family units has not kept up with demand. Between 2009 and
September 2018 a total of 916 new single family homes were permitted for construction. In that
same time period, only 281 housing units in duplex structures were built and 596 units of
multifamily type buildings (more than 3 units per structure). Over this ten year period, a total of
1,793 housing units were issued building permits in the City of Yakima, or an average of 180
permits per year. In 2018, we had 265 new housing units created.
• Smaller Household size. Over half the Yakima households are one or two people with no
children. In 2015, 29 percent of Yakima's 33,074 households were single persons and 24
percent of the households were couples with no children. These population demographics may
be indicators of a market demand for smaller homes, with smaller lots in a walkable setting.
Townhouse type development and other moderate density to higher density settings may be
responsive to this market.
0 Housing choices for low to moderate income families in Yakima is severely limited. The
Median Family Income in the City of Yakima is $43,089 (2016 ACS data) which is 27% lower
than the Washington State Median Family Income. An estimated 22.5% of our residents live
below the Federal Poverty level. The illustration below shows the distribution of household
income by employees in the Yakima Urban Area. Yakima is shown in the orange color bar, the
Nation as a whole is shown in gray. Median family income is noted by the black bar.
Wage Distribution in Yakima County (Central) --Greater Yakima City Puma
I ,, B he ACI -y,,,a' -A q—up, by b 'd y11 i'
Type/Year
2010
2011
2012
2013 2014 2015 2016
2017
2018 1
Total
Single -Family
91
66
64
73 1
78 113 107
90
144
826
Duplex
18
18
30
18
40 24 40
32
70
290
Multi -Family (3+ units)
277
96
72
30
21 3 0
3
51
553
Total New Housing
386
180
166
121
139 140 147
125
265
1669
Units:
Population Growth to Housing Starts
..... .... ......
2010
2011
2012
2013
2014
2015 2016
2017
2018
New
wTotals
Census
City
Population
91,196
91,630
91,930
92,620
93,080
93,220 93,410
93,900
94,190
New Pop
925
434
300
690
460
140 190
490
290
3,919
Avg. new
families
355.8
166.9
115.4
265.4
176.9
53.8 73.1
188.5
111.5
1,507
(2.6
_pq2pjej
New
Housing
386
180
166
121
139
140 147
125
265
1,669
L Starts
2l Page
SF
22,303
61.98%
Duplex
3,078
8.55%
3 -4 units
2,383
6.62%
5+ units
6,216
17.27%
Mobile Homes in parks
2,003
7-7100
5.57%
Total housing units
35.983
=09'.
Strategies for the City of Yakima
There are a number of issues the City of Yakima may want to consider in order to promote the
construction of affordable housing. This report will summarize the following issues:
1 . Does the City have adequate supply of land zoned for housing, including alternatives to single
family homes? What zoning districts encourage rental housing development?
2. Are there local regulatory barriers that inhibit affordable housing development? Are there
regulatory incentives we can offer to encourage housing construction?
3. Are construction costs & permitting timelines in the Yakima Area consistent with other
communes? Can they be improved?
4. Frontage Improvements and Utility Costs associated with new or infill development.
5. What programs has the State of Washington enabled that the city might want to take advantage
of and what steps are necessary to implement the programs?
6. Should the city of Yakima consider tools to address blight, such as those properties idened in
the Vacant Housing list? One tool may be an Urban Renewal District which requires designation
of Blighted areas.
7. Should the city of Yakima consider a maintenance Code to assure that existing rental housing is
preserved as well as descent and safe? What are the disadvantages to this approach?
I. Supply of Land Zoned for Housing
Based on population projections and guidelines issued by the Growth Management Act, the Yakima
Comprehensive Plan 2040 identified the need to provide for 17,167 additional persons in the Yakima
Urban Area by 2040 and 8,556 new jobs. The 17,167 new residents would need 6,602 new housing
units over the 20+ year time or approximately 330 new housing starts eve ,ty,year. As stated in the
Housing Facts section of this report, there is a significant need for more affordable housing. To the
extent possible, a goal of the City of Yakima should be to promote approximately half of the new
housing starts (3,300 housing units) as affordable to our moderate and lower income residents. The
target of 330 new housing starts every year is significantly higher than the 180 average housing starts
we have experienced in the last 10 years.
CITY OF YAKIMA - 2015
inventory
Total Acres
Vacant Acres
AS, Airport Support
815.91
1.0
_13-1, Professional Business
382.00
48.0
B-2, Local Business
225.20
20.2
Central Business District
282.40
20.1
_CBD,
GC, General Commercial
1,349.71
442.4
LCC, Large Convenience Center
195.69
12.4
. ....... ........... . .... . . .. . ... ...
-RD, Regional Development.
548.31
232.2
_SCC, Small Convenience Center
304.79
44.3
M-1, Light Industrial
1,953.14
851.1
M-2, Heavy Industrial
118.92
17.3
Single Family Residential
6,813.31
895.8
-R-1,
R-2, Two Family Residential
2,230.29
575.1
-R-3, Multi -Family Residential
1,146.23
245.8
Suburban Residential
1,565.26
194.6
_SR,
Grand Total
17,934.12
3,331
Sq. Miles
28.02
4.84
While it is true we will need housing for
all income groups, the most significant
need is to encourage the construction of
housing that is affordable to low and
moderate income family rental housing,
which has a very low vacancy rate (less
than 2%).The 2015 Vacant Land Study,
a background document for the
Comprehensive Plan found the City had
an adequate supply of vacant land
which could accommodate 44,817 new
housing units. However, a suitable
tract of land for new housing has been
identified as one of the main obstacles
in getting new projects started. Housing
can be built in most zoning districts, but
land zoned R-3, Multi -family is limited.
The City could benefit from more R-3
zoned land. A new process for minor
rezones was adopted with the 2040
Comprehensive Ran which generalized
the Future Land Use category for Mixed Residential to include R-2 and R-3 zones. The Yakima
Planning Commission could be tasked with identification of specific areas or zoning district uses to
encourage housing.
To assist the public in finding property for potential development, the City IT staff created a Dashboard
for searching and information. This dashboard can be utilized at:
httos:ltvakima.maos,,arectis.comlar)t)slot)sdashboardlindex.html#ldOdOf868918e4684b7ae977386bOb991
11. Regulatory Barriers or Incentives for Affordable Housing
The City needs to encourage construction of all housing types but particularly affordable housing. Some
steps to implement this goal have been taken while other options should be reviewed for future action.
Already Implemented:
✓ The City Council modified the zoning code in 2018 to streamline construction of "Accessory
Dwelling Units" (or ADU's). These are housing units which are built on lots that already have a
house or other structure.
✓ The City amended the zoning code in 2017 to allow clustering of housing units around a
common amenity in order to promote tiny home villages.
✓ With the exception of the Industrial zoning districts, new construction of housing is permitted in
nearly all other zoning districts and locations. The process for multi -family construction requires
notice to neighborhood residents within 300 feet in all districts except R-3 and projects with
more than 20 units require review under State Environmental Policy Act (SEPA) in most
situations. Neighborhood concerns ("Not in my Backyard — NIMBY") continues to be a challenge
for some affordable housing projects.
✓ The City of Yakima has not imposed any Impact Fees (as allowed under RC W 82.02) on any
construction projects.
✓ The City of Yakima offers a free Development Service Team project review. A follow up review
is available for $100. If a developer takes advantage of these programs, the actual project
review can be shortened because they have a better understanding of the Codes and
requirements.
✓ Multi -family Tax Exemption program (MFTE). This tax exemption provides an incentive to
construct multi -family housing in a targeted area of Yakima. This area has been defined as the
Central Business district and several properties have been constructed using the exemption
including the Lofts, the One Chestnut and the Nordstrom/Mills building. The program provides
an exemption of property tax increases for up to 12 years based upon qualified improvements of
the project and is governed by YMC 11.63.040. Should this area be expanded?
✓ The City of Yakima is an Entitlement Community for the HUD HOME program. Funds received
under this program must be utilized to create new housing units. HOME funds have been used
by the City of Yakima to support many partnerships and resulted in the construction of over 250
new housing units in the last ten years. Partners include Habitat for Humanity, Yakima Housing
Authority, Next Step Housing, Catholic Charities and others. The City Council recently approved
investing HOME funds to the 80 unit Bicycle Apartment project on North 50th Avenue and will be
working with the Yakima Housing Authority later this year for approximately 36 housing units at
the Armory development.
Future Options:
o The City of Yakima could review smaller lot sizes as a tool to encourage more diversity and
density of new homes.
o The Central Washington State Homebuilders indicated the preference of many clients for more
townhouse type homes. The Zoning Code could be reviewed specifically for techniques to
encourage this type of development in Yakima, especially located on individual lots.
o The City of Yakima could analyze the Municipal Code to determine if there are other options to
encourage infill of vacant land and buildings with residential uses that have been successful in
other communities.
o Many of the existing buildings in the Central Business District were constructed with boarding
house, hotels or other residential uses on the upper floors. These buildings often do not have
fire suppression sprinkler systems or elevators. The City could examine code options related to
these public safety measures to encourage redevelopment of these buildings with new
residential units.
o The State legislature adopted amendments to RCW 19.27.060(2) which allows for local
government to reduce the minimum dimensions of habitable spaces in single family housing
units in an effort to promote smaller homes.
o Promote accessory dwelling units in a wider range throughout the City.
o Examine "Inclusionary" zoning that requires a percent of new units to be below market rate.
III. Construction Costs and Permitting in the City of Yakima
The City of Yakima was invited to participate in a 2017 survey of five markets in Eastern Washington to
study housing costs. The five markets included Wenatchee/East Wenatchee, Yakima, Spokane,
Ellensburg and Tri-Cities/Benton County. The 8 -page report was issued in March 2018 and indicates
that construction of single family housing in the City of Yakima is competitive with the other four
markets. In some measures, Yakima is one of the two least expensive markets for development costs.
Areas where Yakima was most competitive was Median Value per square foot, total Sales Prices, total
Cost of Framing materials and total permitting fees. One area in which the Yakima market was high
was the Land Cost.
One area where Yakima fell in the middle of the group was the length of time for development
approvals. If the length of review time is perceived as excessive, this can be viewed as a potential
disincentive for development. Some options to reduce processing time include:
1. The zoning code could be examined for land use types where the review level is changed to
make more affordable housing type "permitted" Class 1 review projects, rather than requiring a
class 2 or Class 3 review. Under Washington State Environmental Policy Act (SEPA), review is
necessary for any project that has more than 20 housing units. One option the City might
consider is to make any SEPA exempt housing project a permitted land use.
2. In some Washington State communities, there is an option to pay an additional fee for expedited
reviews. In other communities certain types of land uses are given an expedited review if the
use is something the community wants to encourage.
3. As noted earlier in this paper some recent affordable housing developments in Yakima have
experienced active neighborhood opposition, which has added up to a year to the review
process. The NIMBY problem is a natural reaction to a project that might introduce diversity or
increased housing density into an area. The City could review options to reduce the NIMBY
effect, including community education and engagement. One solution may involve multiple
smaller projects spread broadly in the City, rather than a project of 30 or more housing units.
This could reduce the NIMBY opposition and streamline development of small scale projects.
There are some grant opportunities for assistance in financing the construction of housing for low to
moderate income families. One of the most significant challenges is to fund operational costs for
these developments.
IV. Frontage Improvements and Necessary Public Utility Costs
The cost of providing public utilities to new development has been noted as a concern for new projects
in Yakima. Public water and sewer are enterprise funds, primarily operating on the rates paid by
existing customers. Therefore, an adequate reserve fund for public financing of area wide
improvements or line extensions does not exist in either of these programs. Some grant funds have
been used in the past to assist in the extension of utilities into some areas. This funding is significantly
constrained. Yakima Municipal Code Title 12 directs many of the policy issues related to these
elements. To reduce frontage and utility costs, locations that already are served by public
utilities and complete streets should be prioritized for affordable housing projects.
Public water and fire flow — Public water is available from either the City of Yakima or Nob Hill Water
systems, depending on location. No new wells in City Limits for drinking water are permitted, although
there are still neighborhoods where public water is not currently available. The City recently extended
public water to a mobile home park on Fruitvale Boulevard due to a failed water system.
Public sewer — One of the most expensive items for new development is the common need to extend a
public sewer line to the site. Currently, the City has approximately 20% of the neighborhoods and areas
where no public sewer is available. The Yakima Health District does not recommend allowing any new
septic systems inside the City of Yakima if public sewer can be made available. The City of Yakima
does not have a robust Capital fund to finance the extensions of public sewer to all the regions of the
City where no sewer lines exist or the capacity of the lines are not adequate.
Developers cite the "to and through" policy requirement as adding expense burdens to projects, yet this
remains one of the principle methods of equitably extending sewer lines to adjacent properties. Late
comer agreements for sewer reimbursement are not popular, because the payback time is uncertain. In
some of our older neighborhoods, the cost of sewer connections is a financial burden to families in
existing homes that have old or failing septic systems. An alternative financing tool is the Local
Improvement District (LID). In some neighborhoods, property owners may not be able to afford to
participate in the LID or even afford the connection charges.
Street frontage improvements - Construction of new streets, or improvement to existing streets to
support a new development is a basic element of a project. There are many factors that impact the
nature of the street improvement necessary to support a new development. The City has adopted the
policy of "complete streets" that considers all users, including walking, biking and transit. This is most
important in walk to school neighborhoods and safe routes locations. On street parking is often desired
in a new development, but not required. Traffic calming is allowed on neighborhood streets, but not on
busy arterial streets. The City policy is for sidewalks on both sides of the street. Infill lots may be
exempt from some of the requirements to upgrade streets. Requirements for street frontage
improvements must have a "nexus" to support the need for physical improvements. A traffic study is
required for large projects to determine if "off-site" street improvements are necessary. The authority for
the traffic study is most often the State Environmental Policy Act (SEPA).
V. Washington State Legislative Affordable Housing Optional Programs
Several programs have been enacted by the State to encourage affordable housing.
Affordable Housing Fund Sales and Use Tax; increase. The State of Washington enacted an optional
sales and use tax increase of one-tenth of 1 percent for Counties and Cities in 2015 (RCW 82.14.530)
to be used exclusively for affordable housing projects and mental health programs. The cities of
Ellensburg and Olympia have adopted programs to impose this sales tax increase. The city of
Ellensburg anticipates it will raise approximately $450,000 to $500,000 per year from this program. The
City of Olympia anticipates close to $2 million a year in revenue. The program requires a ballot
measure for adoption. Both Ellensburg and Olympia conducted community workshops and studies to
get support to pass these ballot measures. If the city council is interested in this program, a study
session on implementation steps should be scheduled.
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Effective June 7, 2018, RCW 39.33.015(8)(a) enables state agencies and local governments to dispose
of its surplus property at no or low cost to developers to construct affordable housing. There are
requirements as to the affordability period and other restrictions as to the use of the property associated
with the disposal. Municipalities must typically receive fair market value for surplus properties. Allowing
the sale of surplus property at a discounted rate will open up more land for development of affordable
housing. This program could streamline transactions of idle city owned land to housing agencies and
developers who will build qualified affordable housing units.
• Allowing for Smaller Residences::
In HB 1085, the legislature amended the state building code and related planning statutes to allow local
governments to reduce the minimum dimensions of habitable spaces in single-family residential units
below the standards set forth in the state building code. This bill is intended to enable the development
of smaller, more affordable homes, sometimes called tiny homes. RCW 19.27.060(2) now reads, in
relevant part:
The legislative body of a county or city... may adopt amendments [to its local regulations
implementing the state building code] that eliminate any minimum gross floor area requirement
for single-family detached dwellings or that provide a minimum gross floor area requirement
below the minimum performance standards and objectives contained in the state building code.
The City of Yakima has not adopted an amendment to the building code that allows this reduction in
gross floor area requirements.
•
Exempting Certain Pro ert Intended for Low-income Housingfrom Property Taxes: ESSB
5143 exempts real property owned by a nonprofit entity from state and local property taxes when that
land is being used for developing or redeveloping low-income residential housing. In particular, this law
extends the exemption to community land trusts where the land remains in the ownership of the
nonprofit but is leased to low-income households. There is no community land trust in Yakima.
• Increased Funding Available for Affordable Housing and Homelessness:
The legislature made permanent the $40 recording fee surcharge intended to raise funds for
homelessness and affordable housing. It also increased the surcharge amount to $62. A portion of the
surcharge is provided to counties to put toward their homeless housing program and a portion goes to
the state to be deposited in the Home Security Fund Account. The funds must be used for specific
purposes, and data collection requirements and metrics are incorporated to determine whether the
funds are addressing the homelessness problem. The City of Yakima is considering a request to
Yakima County that would reserve this increase in the filing fee for the capital project financing and
operations of a permanent low -barrier homeless housing project and /or homeless shelter.
VI. Maintaining Housing Stock
Preservation of the existing housing stock in the City of Yakima is critical to meeting the demand for
affordable housing. The condition of housing (both rental and home ownership) is essential to quality
life in the community. The City of Yakima, as an Entitlement Community, expends approximately 60%
of the Community Development Block GrantC( DBG) resources in the repairs for safety and health
items in the homes of senior citizens and disabled persons each year. This program has enabled
hundreds of elderly families to "age in place", delay entry into an assisted living situation, or simply
experience safety repairs that otherwise were not affordable. The City Council has strongly supported
this program but it is limited by available funding.
Much of the City of Yakima housing stock is old, with over 50% of the housing units constructed more
than 40 years ago. There is a strong correlation between housing age and housing condition. The
percentage of housing units that lack either a kitchen or plumbing varies by Census Tract between zero
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and 11.26 percent, with the high rate of no plumbing is found east of 16t' Avenue. Other condition
issues have not been recently documented. The City of Yakima has adopted Municipal; Codes for
Chronic Nuisance properties (YMC 11.45), Dangerous Buildings (YMC 11.46) and Apartment
House/Hotel Safety Codes (YMC 11.13) but we have not adopted the optional Minimum Property
Standards (MPS).
Some community conversation has occurred related to whether the City should promote short term
rental housing such as those utilized as "Air Bed and Breakfasts (ABNB) or Vacation Rental
Businesses (VRBO). The Yakima Planning Commission will be holding Zoning Text Amendment
hearings in 2019 and will consider this topic along with other related short term rental issues. Some
communities in Washington State have experienced a negative effect of short term rentals on the
available housing market, as the vacation business removes units from the rental market.
The City of Yakima does not have a rental registry program, like Seattle does that requires inspection of
rental units on a routine basis. At this time, the City cannot demand an inspection of a rental unit, which
impairs the ability to write citations for unsanitary or potentially dangerous conditions. While there are
many positive reasons to support a Minimum Maintenance Code or program, one significant negative
affect would be the potential to displace low income persons from housing without any other housing
resources to provide shelter. The City does not maintain a vacant residential building program at this
time. The City Council has started a discussion of the goals and intended outcomes that may result
from a vacant building program. If the City of Yakima adopts and enforces minimum maintenance
standards, some housing units will be upgraded especially with public safety improvements. However,
some housing units will likely be abandoned and some tenants may be displaced.
City Council Action Steps
This Study Session was intended to summarize the role of the City in Affordable Housing, and identify
action steps to encourage housing starts, especially those that may be below market rates. The City of
Yakima has many partners in this community that have broad expertise in housing issues who could
assist in providing recommendations or insight to the Council.
Action Steps for the City of Yakima:
Refer items to the Yakima Planning Commission related to zoning and regulatory innovation for
broad community discussion about potential amendments. The City Council reviews all
recommendations of the Planning Commission.
a. Review options for zoning of additional land for multi -family construction.
b. Analyze the Zoning Ordinance (YMC 15) & Subdivision Ordinance (YMC 14) for
regulatory strategies to encourage multi -family construction.
c. Analyze the R-1 Zoning District to determine if more density should be allowed in the R1
Zone?
d. Review techniques used in other cities, especially in the state of Washington to
encourage new housing of all types.
e. Review the concept of Inclusionary Housing Ordinances that require set -asides for
affordable housing or payments into a fund for affordable housing. Seattle and Portland
have similar ordinances with mixed results.
f. Review short term rental zoning and licensing regulations (ABNB orVRBO).
2. Direct the Healthy Community and Neighborhood Building Committee (HCNB) to review this
report and prioritize policy options for the full Council, including:
a. Review methods to encourage below market rate construction of multi -family housing.
b. Work with Yakima Housing Authority to bring more rent vouchers to Yakima from HUD.
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c. Explore potential rehabilitation incentives the City could otyer existing building owners to
develop mixed use projects with commercial/office on ground floors and housing units on
upper floors.
3. The full City Council should evaluate some of the crucial policy issues related to encouraging
new housing starts.
a. The City has adopted the Multi -Family Housing Tax Credit Program, authorized in YC
11.63.040. The program is limited to CBD zones. Should it be expanded?
b. If the council decides to review development standards, such as changes to utility
policies or street frontage improvements, a broad community discussion should be
convened and include organizations like the City of Yakima Bicycle and Pedestrian
Committee. The ability to offer any incentives or discounts from the City Water Division
or Sewer Division is ultimately a rate payer and City Council policy decision.
c. Consideration of the adoption of the minimum maintenance code and a rental registry
could involve review by a variety of stakeholders, including but not limited to, tenant
rights organizations, health industry professionals and landlord organizations.
d. The Council may want to discuss strategies to address vacant and abandoned buildings,
like the Community Renewal District.
e. CDBG and HOME Entitlement funds from HUD have been spent cautiously and
strategically invested. However, there is broad authority to modify program investment. If
the City would like to be briefed on these program options, a Study Session may be
appropriate.
Submitted by Joan Davenport, Director