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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEM ENT
Item No. 9.
For Meeting of: May 7, 2019
ITEM TITLE: Affordable Housing Project Policy Discussion
SUBMITTED BY: Joan Davenport, Community Development Director
Sara Watkins, Senior Assistant City Attorney
SUMMARY EXPLANATION:
On March 12, 2019, City Council held a Study Session on Affordable Housing. The report was a
broad overview of many topics. Council endorsed the need to take actions that will encourage
more construction of new housing and retention of existing housing. While some items were
referred directly to the Yakima Planning Commission and the Council Partnership Committee, a
number of items were directed back to the full City Council for more policy discussion.
Staff has prepared a status report for the City Council which includes more detailed information
about the items identified in the March 12th Study Session, as well as the recommendation that
we initiate a"Housing Action Plan" that includes a citizen engagement component and could
guide and coordinate policy and implementation.
ITEM BUDGETED:
STRATEGIC PRIORITY: Neighborhood and Community Building
ft' if
APPROVED FOR
SUBMITTAL: City Manager
STAFF RECOMMENDATION:
Review the report on Affordable Housing project status and provide direction.
BOARD/COMMITTEE RECOMMENDATION:
ATTACHMENTS:
Description Upload Date Type
anal 1Jpdate on Affordable Nousel suet i 4/25/201 weep Material
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MEMORANDUM
To: Honorable Mayor and Yakima City Council Members
From: Joan Davenport, Community Development Director
Sara Watkins, Senior Assistant City Attorney
Joseph Calhoun, Planning Manager
Cliff Moore, City Manager
Date: May 7, 2019
Subject: Council Update on Affordable Housing Strategies and Recommendation for Housing Action
Plan (HAP)
Outcome of the Study Session
At the March 12, 2019 Study Session, the full City Council noted that promoting Affordable Housing is a
complex but significant issue in the community and requested staff begin more in-depth review of the
tasks and topics covered in the Study Session. Responsibilities were divided between the Yakima
Planning Commission and the Partnership Committee. Other topics were directed to come back to City
Council for policy discussion and direction. This report includes a summary report on these topics.
Housing Action Plan and Community Engagement Program
Staff recommends the City Council consider initiating a community engagement process to facilitate
public participation and education related to potential ordinance changes, neighborhood
preservation/protection, housing density and housing choice diversity. This early community
engagement process would be part of a coordinated Housing Action Plan (HAP). After the initial work of
review and analysis for the various tasks presented in the March 12'h Study Session, staff recognizes
the complexity of the project and the potential for community concerns. The experience of many other
cities reveals that community engagement can be a powerful tool to gaining acceptance of some of the
changes necessary to promote affordable housing, especially if changes proposed impact the R-1,
Single Family Residential Zoning District.
With multiple, complex strategies under review at the same time, there is strong potential that efforts
will become fragmented and may not produce a cohesive, effective strategy to encourage more
housing. It would be beneficial to have a housing and demographic expert help prioritize tasks and
guide community engagement. Many cities have developed a similar strategic approach to address
housing issues and demographics. A Housing Action Plan (HAP) and Community Engagement
program could be an effective method of promoting understanding for ways to influence diversity and
density in neighborhoods. The Community Engagement program could help coordinate input from
individuals as well as organizations and stakeholders.
The cost of preparing a Housing Action Plan and Community Engagement program for the City of
Yakima is estimated between $45,000 and $55,000. City staff has submitted a grant application to the
Yakima Community Foundation for $25,000 to help support this project. Additional funding would be
necessary, and the project could be divided into two phases. The Washington State Department of
Commerce has been approached for funding help.
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A Strategic Approach to Affordable Housing
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, multiple factors must be considered, as well as how they relate to each other:
• Land available at feasible price
• Zoning in place to allow increased density or infill
• Neighborhood acceptance of new development
• Certainty of process and permitting timelines
• Infrastructure (public water, sewer and street) improvements in place
• School capacity to serve new families, as necessary
• Connections to public transit, parks, retail with sidewalks create neighborhood appeal
• A funding plan to support construction and maintenance of the project
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
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 at all levels,
2. Increase density, diversity and distribution of housing choices.
Housing Action Plan Follows on Equity Study
In 2017, the Yakima City Council conducted an Equity Study to illustrate and understand the
geographic areas in Yakima where disparities may exist using a variety of infrastructure and
demographic measures. City staff published data and provided visualizations of a wide variety of
existing geographic information. In addition, the City of Yakima utilized the technical expertise of the
WSU Metro Center for Applied Research and Extension to analyze the data.
The City of Yakima 2017 Equity Study illustrates many demographic characteristics that exist today in
our community. An Equity Lens approach, as recommended in the Equity Study report by WSU would
provide a tool to evaluate the impacts across the community from policy or program changes. The
Equity Lens approach would help evaluate racial, social, and economic impacts of policy changes in the
community. 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. The
Council Community Integration Committee could assist in education and outreach efforts.
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Summary of Affordable Housing Topics Identified to Date:
This report includes a preliminary draft summary of each item presented in the March 12, 2019
Affordable Housing Report Study Session Whitepaper. We fully expect as the discussion about these
strategies develops, additional techniques or programs will be added for consideration, and some will
be removed. The topics and assignments listed in the March 12, 2019 report include the following.
1. The Yakima Planning Commission received a variety of assignments which are largely
regulatory and related to the Zoning Ordinance, Subdivision Ordinance or SEPA. Work sessions
and general discussion on these topics has commenced. The Planning Commission is
interested in meeting with the Central Washington Homebuilders and other organizations in
order to get feedback on these items.
Item 1.a: Review options for zoning of additional land for multi-family construction
Item 1.b: Analyze the Zoning Ordinance and Subdivision Ordinance for regulatory strategies to
encourage multi-family construction
Item 1.c: Analyze the R-1 Zoning District to determine if more density should be allowed
Item 1.d: Review SEPA techniques used in other cities, especially in the state of Washington, to
encourage new housing of all types
Item 1.e: Review Inclusionary Zoning concepts to see if they fit Yakima
Item 1.f: Review of Short Term Rental (ABNB or VRBO)
Item 1.g: Review Accessory Dwelling Unit Regulations
2. The Partnership Committee was assigned several general topics that will involve coordination
with community organizations. A preliminary meeting was held on April 19, 2019. The
Partnership Committee was interested in hosting some workshops with various organizations
and non-profits that are active in the building industry.
Item 2.a: Review methods to encourage below market rate construction of multi-family housing
Item 2.b: Work with Yakima Housing Authority to bring more rent vouchers to Yakima from HUD
Item 2.c: Explore Flexibility in the Building Code and Affordable Housing
3. A series of items were referred back to the full City Council for discussion, as they are largely
policy items. Washington State Legislature has recognized the need for Affordable Housing is a
statewide concern. Our Planning Manager commented on a variety of legislation options as they
were in committee. Now that the legislative session has ended, we will evaluate the new
legislation and report back to the full Council on possible new programs.
Item 3.a: Multi-Family Housing Tax Credit Program
Item 3.b: Review of Development Standards to determine if they present challenges for new
affordable housing developments
Item 3.c: Strategies to Address Vacant and Abandoned Buildings & Community Renewal District
Item 3.d: Opportunity Zones Funding for Affordable Housing
Item 3.e: Review CDBG and HOME program funds for ability to support additional housing units
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Affordable Housing Project Status Report Item 1.a:
Review options for zoning of additional land for multi-family construction
1 . How does this promote affordable housing?
The availability to construct multi-family housing in a variety of areas is an important component of
affordable housing.
2 Statutory Authority
RCW 3670A—Growth Management Act As a city planning under the GMA, Yakima is responsible for
designating land within the city limits as being appropriate for housing, including multifamily housing.
3. What the City of Yakima is doing now
The Zoning Ordinance (YMC Title 15) currently allows multifamily housing, at various levels of review,
in all zoning districts except the Suburban Residential (SR), Single-Family Residential (R-1), Historic
Business (HB), Airport Support (AS), Light Industrial (N1-1), and Heavy Industrial (M-2)zoning districts.
SR Rt R2 R3 81 82 HO SCC LCC AS GC CBD RD MI M-2
ML;h mCi Dwaltng('F 0—' 2 2 2 2 2 2 2 2
DUMRA
L 12DUNRA 2 1 2 2 2 2 2 2 2
I:�OWMPA 3 5 2 2 2 2 2 2 2
Nixed-se Bulk , 1
4 Examples of other communities in Washington State
Most Cities in WA allow Multifamily Residential in similar zoning districts to Yakima.
5. Pro/Con
Con - Adding additional areas for multi-family dNellings, especially in areas with heavy concentrations
of single family homes (R-1), may prove challenging. The influx of multi-family in Yakima has
historically been met with neighborhood opposition. Projects like the Bicycle Apartments, while
ultimately approved after appeal, underwent a lengthy process due to neighborhood opposition.
Pro—Additional areas for multi-family housing provide greater density/efficient use of land, efficient use
of services (water, wastewater, power, transit, etc), and an increase in property values (vacant land vs.
built-out).
6. Process Next Steps
The Planning Commission is currently reviewing options for increasing the zones for multi-family
dNellings and decreasing the level of review in certain zones. Study session on this topic were held on
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March 27, 2019 and April 10, 2019. Any proposed changes to YMC Title 15 will come to the Council as
a recommendation after a YPC public hearing.
Affordable Housing Project Status Report Item 1 .b:
Analyze the Zoning Ordinance and Subdivision Ordinance for regulatory strategies to
encourage multi-family construction
1. How does this promote affordable housing?
The regulatory structure for how multi-family housing is defined, where it can locate, and how have
timing and financial impacts to making a project affordable.
2. Statutory Authority
RCW 36.70A—Growth Management Act. As a city planning under the GMA, Yakima is responsible for
designating land within the city limits as being appropriate for housing, including multifamily housing.
3. What the City of Yakima is doing now
Multi-family housing is currently defined in YMC 15.02, but is limiting in its application:
"Dwelling, multiple-family" means a structure or structures, or portion thereof, designed for occupancy by
three or more families living independently of each other and containing three or more attached dwelling
units on a lot. Multiple-family and detached single-family dwellings that are clustering around a common
amenity such as open space, recreation facilities or common community building, and have a common
driveway access on a single lot of record, are also considered multiple-family development.
Multi-family housing density is essentially a function of how many dwellings can be fit on a given
property while still maintaining compliance with parking, setback, and lot coverage standards.
4. Examples of other communities in Washington State
5. Pro/Con
Con —Opponents to multi-family development may see any regulatory incentive or reduction in
standards as contrary to the built-environment of Yakima (37% of all land use, 2016 Existing Conditions
Report)
Pro — Modifying the definition such that any development with three or more dwelling units, regardless
of type, as multi-family will encourage infill development and increase efficient use of utilities.
6. Process Next Steps
The Planning Commission is currently reviewing options to modify the definition of Multi-Family
Dwellings. Study session on this topic were held on March 27, 2019 and April 10, 2019. Any proposed
changes to YMC Title 15 will come to the Council as a recommendation after a YPC public hearing.
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Affordable Housing Project Status Report Item 1 .c:
Analyze the R-1 Zoning District to determine if more density should be allowed
1. How does this promote affordable housing?
Single-Family Housing is the most abundant land use in the City of Yakima. Allowing greater density in
the R-1 Zoning District will reduce the cost burden of utility and street extensions for new uses, and
promote the efficient use of existing facilities for infill development.
2. Statutory Authority
RCW 36.70A—Growth Management Act. As a city planning under the GMA, Yakima is responsible for
designating land within the city limits as being appropriate for housing, including multifamily housing.
3. What the City of Yakima is doing now
The R-1 zoning district allows development up to 7 dwelling units per acre. The primary use is single-
family homes with duplexes allowed as a Type (3) Review(Hearing Examiner public hearing). The YPC
is discussing a potential reduction in the level of review for duplexes and adding in multi-family
dwellings up to 7 units per acre. Also being discussed is outright permitted up to 10% duplexes in new
single-family subdivisions.
4. Examples of other communities in Washington State
Several communities in Washington allow duplexes in the R-1 zone at an elevated level of review.
5. Pro/Con
Con —The addition of more duplexes or new multi-family development could diminish the overall
aesthetic of a single-family neighborhood.
Pro — The additional development types would still be required to adhere to R-1 density standards. The
overall number of units wouldn't increase, only the layout.
6. Process Next Steps
The Planning Commission is currently reviewing. Study session on this topic were held on March 27,
2019 and April 10, 2019. Any proposed changes to YMC Title 15 will come to the Council as a
recommendation after a YPC public hearing.
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Affordable Housing Project Status Report Item 1 .d:
Review SEPA techniques used in other cities, especially in the state of Washington, to
encourage new housing of all types
1. How does this promote affordable housing?
Increasing the threshold for environmental review in different areas/neighborhoods/zoning districts will
reduce regulatory barriers for larger multi-family and mixed-use developments than what is currently
allowed.
2. Statutory Authority
RCW 36.70A—Growth Management Act. As a city planning under the GMA, Yakima is responsible for
designating land within the city limits as being appropriate for housing, including multifamily housing.
WAC 197-11-800(1)(b)(i) —Categorical Exemptions. Fully planning under the GMA, Yakima must set
flexible thresholds that determine whether a project must go through environmental review.
RCW 43.21 C.229— Infill Development— Categorical Exemptions from Chapter. Cities may set flexible
thresholds above the limits of WAC 197-11-800 in order to fulfill density benchmarks outlined in their
comprehensive plans.
3. What the City of Yakima is doing now
The Zoning Ordinance currently exempts residential developments from SEPA review if no more than
nine dwelling units in the SR and R-1 zoning districts, and not more than 20 dwelling units in the R-2,
R-3, B-1, B-2, SCC, LCC, CBD, GC, and RD zoning districts.
4. Examples of other communities in Washington State
Within the City of Everett's E-1 MUO (Mixed Use Overlay) zone, a residential use and its required off-
street parking are exempt up to 100 dwelling units, along with up to 30,000 square feet of commercial
space inside a mixed-use building with 8 or more residential dwelling units and its required off-street
parking. Kent also uses this method for its Downtown Subarea Action Plan, exempting all residential,
mixed-use, and non-retail commercial space less than 65,000 square feet.
5. Pro/Con
Yakima has thresholds for categorical exemptions that are typical of other cities in Washington, which
the City last updated in 2011. State law limits categorical exemptions to 30 units for single family
developments and 60 units for multifamily developments; both of these current exemptions could be
increased in order to promote more housing units without the need to go through environmental review.
Thresholds can be increased in areas that qualify for the provisions under RCW 43.21 C.229.
6. Process Next Steps
The Planning Commission is currently reviewing. The initial study session on this topic was held on
March 27, 2019. Any proposed changes to YMC Title 15 will come to the Council as a recommendation
after a YPC public hearing.
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Affordable Housing Project Status Report Item 1 .e:
Review Inclusionary Zoning concepts to see if they fit Yakima
1. What is Inclusionary Zoning?
The goal of inclusionary zoning is to have the developer make a certain number of units fall into the
affordable range of the defined cost burden on the subject community.
2. Statutory Authority
State law RCW 36.70A.540 provides authority for GMA Cities and Counties to establish mandatory
requirements under certain circumstances. WAC 365-196-870(2) Allows for cities to require a minimum
number of affordable housing units in areas deemed appropriate.
3. What the City of Yakima is doing now
The City of Yakima is missing many of the typical elements composing inclusionary zoning standards,
but Yakima does not have some of the limitations on regulations many other cities may have. Within
Title 15 of the Yakima Municipal Code the City has standards for density in the R-1 and R-2 zoning
districts, but the R-3 zoning district does not have a minimum or maximum density standard, density is
currently limited by the number of parking spaces, which can be changed though the Administrative
Adjustment process. On the other hand, because Yakima has no minimum unit standard, developers
are allowed to create developments that are below the rates of specified by the 2040 Comprehensive
Plan. Additionally, single family homes are allowed to be placed within the R-2 and R-3 zoning district,
effectively removing the intent of the higher density zoning designations.
4. Examples of other communities in Washington State
Under the voluntary model developers often times have a variety of development incentives at their
disposal to encourage a certain number of appropriate units to be included in the construction of their
projects. Those incentives can include density bonuses, waiver of fees, and flexibility of design
standards such and landscaping and parking. Cities implementing voluntary options have very mixed
results. Many developers continue to build market rate housing, due to the simplicity of the action.
Mandatory programs, are codified as such, and require developers to construct a certain number of
appropriate units. Many cities within the U.S. will provide density bonuses if the number of appropriate
dwelling exceeds the minimum number required.
Elements of inclusionary zoning — If the City chooses to pursue the idea of making inclusionary zoning
a mandatory practice within Yakima, there are several elements to consider in this process:
a) Minimum quantity of appropriate units— This can be done on either a fixed scale or sliding scale
based upon the size of the proposed development. The City of Redmond has fixed scale
requiring that 10% of all new units created be affordable, while the City of Sammamish has a
sliding scale based upon the number of units created.
b) Target income range —There are a variety of ways to approach this using the data that has
been provided by the 2040 Comprehensive Plan and the 2017 Equity Study. Many cities,
including Federal Way and Redmond, use their community's median household income as a
benchmarks and define what target population has the ability to apply for these units. For
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example, Federal Way defines affordable as those with incomes at or below 50% of King
County's median household income.
c) Time period —the amount of time in which units shall remain affordable, and whether or not
affordability shifts with the changing demographics, or remains fixed and only applies to the
affordability rates during the time when a development is completed.
d) Geographic area —Which areas in the city are subject to inclusionary zoning? Citywide or
isolated areas the city deems necessary?
5. Pro/Con
Pro — In an active housing markets, such as Yakima, inclusionary zoning results in the production of
more affordable housing for low and moderate income residents. Inclusionary zoning also relies on
private development to provide a variety of mixed income developments, creating a more diversified
community, without relying on the tax payer.
Con — it may be difficult to administer an inclusionary zoning program and monitor the actual number of
affordable units. Additionally, there may be questions and push back on residents who are concerned
about the composition of the community's character. Additionally, if the housing market is not strong,
developers many opt not to building housing, which would defeat the purpose. Another argument
brought up, but hard to measure, is if the developer passes the additional costs of having affordable
units onto the market level units, effectively raising the cost of market rate housing.
6. Process Next Steps
Hold a study session with a Council Committee or Planning Commission to determine which
inclusionary zoning elements would be appropriate in the YMC. If the desire is to move forward with
Inclusionary Zoning, staff can deliver a report on the economic impacts of IZ during future study
sessions.
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Affordable Housing Project Status Report Item 11:
Review of Short Term Rental (ABNB or VRBO)
1. What is a Short Term Rental?
A short tens rental, or vacation rental, is the renting out of a furnished home, apartment or room for a
short tens stay. The owner of the property will usually rent out on a nightly or weekly basis. The aty of
Yakima currently does not have a definition for short term rentals and review falls under the category of
Bed and breakfast" which has the following definition; "a residential structure providing individuals with
lodging and meals for not more than thirty days. For home occupations, such uses are limited to
having not more than live lodging units or guest rooms"
2. Statutory Authority
A General Business License and Land Use Review is required
3. What the City of Yakima is doing now
The Zoning Ordinance (YMC Title 15) currently allows homes to be used as a Bed &Breakfast as both
a commercial use or through a home occupation business license process.
The following is the commercial review process:
SR Rd)R2�R. IBt B . HB SCe LCCLAS 8T! c o Rt )M M-zl
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The following is the home occupation review process:
Zoning iyk(
SR R-1 RT R-J Qi
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4. Examples of other communities in Washington State
For communities in Washington State without an active tourist market, short-term rentals are not a
major issue and those local governments don't usually have regulations addressing them. For those
local governments with a significant number of tourists or transient visitors, however, these jurisdictions
either already have regulations in place or are contemplating adopting them.
5. Pro/Con
Pro — Additional income through tax revenues increased tourism activity; and provides an additional
source of income for families or individuals.
Con —Creating a mechanism for collecting lodging and sales tax on these short term rental stays;
difficult to regulate; mitigation of traffic, parking noise and other impacts on the surrounding
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neighborhood; compliance with life/safety standards that are commonly applied to other types of
lodging establishments; impact of short-term rentals on a community's affordable housing supply. In
this case, the concern isn't necessarily about a homeowner renting out a room or backyard cottage, but
that property owners will purchase residential units and rent them out on a short-term basis to out-of-
town visitors, thereby taking them out of the year-round rental housing supply.
6. Process Next Steps
Hold a study session with a Council Committee or Planning Commission to determine if Short Term
Rentals need to be addressed. If the desire is to move forward with a Short Term Rental regulations,
staff can work with the Planning Commission to outline specific regulations.
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Env
Affordable Housing Project Status Report Item 1 .g:
Review Accessory Dwelling Unit Regulations
YMC 15.09.045—Accessory Dwelling Units (ADUs). The City regulates accessory dwelling units as
part of the zoning code. Accessory Dwelling Units are defined as structures "separate from the primary
single-family" on the same lot. The purpose requirements are as follows: (1) "Provide homeowners with
an opportunity for extra income, companionship, and security; (2) Better utilize existing infrastructure
and community resources (sewer, water, roads, etc.); (3) Provide a housing type that allows flexibility to
respond to changing needs and lifestyles; (4) Add to the supply of affordable dwelling units; and (5)
Protect neighborhood character and stability by ensuring that ADUs are compatible with surrounding
land uses." YMC 15.09.045(A). See also RCW 43.63A.215; RCW 36.70A.400.
The City has regulations outlined allowing property owners to construct ADUs on their property.
However, the ADU regulations are very specific as to the reasons for ADU construction. ADU
construction is limited in the ordinance by its definition. Since the ADU ordinance was passed there
have been very few permits for new construction ADUs within the City. There have been more permits
for altering garages into dwellings, for example, rather than new buildings being placed on properties.
The City of Seattle recently attempted to make significant changes to its ADU requirements. The
proposal includes the following: allow two ADUs per lot, have no parking requirements associated with
the ADUs, elimination of the requirement that the owner live on site if the property has an ADU,
increased maximum floor area to 1,000 square feet (from 800 square feet), reduction of the minimum
lot size to accommodate and ADU and increase the maximum lot coverage. See
https:((www.theurbanist.org(2018(10(08jseattles-backyard-cottage-plan-falls-short] The EIS related to the
ADU section of the land use code was appealed to the Hearing Examiner and a decision has not yet
been issued. There is also a statewide bill in House Committee addressing ADUs. Although outside of
Washington state, Portland, Oregon, created a Residential Infill Project. Information about that project
can be found here: https://www.portlandoregon.govjbps/76592
A. Evaluating the ADU regulations
Pros of creating more opportunities for people to build ADUs on their property include that there would
be more housing available for Yakima residents. Because ADUs are generally smaller than regular
single-family homes, they may also be less expensive to rent. They also provide smaller housing for
singles or couples with no children, who may not want the typical 3 bedroom 2 bath home (either for
purchase or rental). It also provides opportunities for property owners to have rental income. Cons
include possible changes in neighborhood characteristics, possible parking issues (depending on if the
Council changes parking regulations), or increased density in single-family residential neighborhoods
(could be a pro or a con). Many of the pros and cons depend on how the regulations would be
changed to encourage ADU construction.
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Env yn.
Affordable Housing Project Status Report Item 2.a:
Review methods to encourage below market rate construction of multi-family housing.
1. How does this promote affordable housing?
Encouraging below market rate construction will increase the number of low-income units available in
Yakima. Although there is a shortage of all levels of affordable housing, new construction of below rate
multi-family housing is difficult for the average developer because of the building expenses vs. rents
received.
2. Statutory Authority
RCW 84.14 — Multi-Family Tax Exemption. The Legislature provides for cities to enact a multi-family tax
exemption to stimulate the construction of new, rehabilitated or converted multi-family housing within
designated areas. When approved, the value of the housing construction or improvements is exempted
from property tax for a specific period of time. A 12 year exemption is allowed for those developers
who commit to renting or selling at least 20% of the units to "low and moderate income households."
Innovative Housing Demonstration Programs or Innovative Housing Design. These concepts are
enacted through local legislation under the city's zoning/police powers.
Low Income Housing Tax Credit Program:
3. What the City of Yakima is doing now
The City has enacted the multi-family tax exemption in the downtown area, encouraging housing starts
such as the Valentina, One Chestnut and the Lofts. A separate summary is provided on this specific
topic later in the packet.
The City allows for some innovative housing design in its zoning code—specifically it has passed an
ordinance allowing multi-family to include cottage style dwellings which are smaller and built around
common amenities. The City does not have an innovative design demonstration ordinance.
4. Examples of other communities in Washington State
Innovative Housing Demonstration Programs and Innovative Housing Design are based mostly on the
needs, wants and characteristics of the cities creating or providing for the programs. Redmond,
Washington has an ordinance (RZC 21.08) that allows for Residential Innovative Zones. The purpose
is to provide for diverse housing needs, and increase the number of small dwelling units being
constructed in new subdivisions. Specifically it requires that subdivision applications (short plats,
binding site plans and long plats) with sites 30,500 square feet and greater shall include smaller
dwelling units as part of the project. The smaller dwelling units are size limited, duplexes, or cottage
dwelling units (as defined by Redmond). This regulation requires the developer to build units with
smaller square footage mixed with other single-family households (the regulation only applies to single
family housing zoning districts). It intersperses dwellings of various sizes within residential
developments as well. A good website about housing innovation programs can be found here:
https://www.psrc.are/housing-innovations-program-hip
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5. Pro/Con
Pros of requiring developers to be innovative with their housing design include diversified housing
types, sizes and costs in one neighborhood (using the Redmond example). Cons include that
developers will have requirements in Yakima not found elsewhere. To counter that con, the Council
may want to evaluate this idea in conjunction with development incentives. Without development
incentives, having innovative design requirements (or other similar requirements) may create a situation
where developers are choosing to locate their multi-family or subdivision projects outside of the city
limits to avoid the ordinance requirements.
6. Process Next Steps
Making decisions on how to incentivize below market rate building requires an evaluation of not only
ways to create more density or make the building process easier, but also how to make the
development of such units realistic for developers. A holistic approach to evaluating incentives,
requirements and development regulations might be a good approach to evaluate these issues.
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Affordable Housing Project Status Report Item 2.b:
Work with Yakima Housing Authority to bring more rent vouchers to Yakima from HUD
1. How does this promote affordable housing?
Increasing the number of rent vouchers available to low-income individuals and families allows them to
rent housing at an affordable rate. The voucher can cover the difference between what the recipient
can pay and the market rate of the unit.
2. Statutory Authority
The vouchers are federally funded through HUD. Here are some websites about the voucher
programs:
General voucher information: https:l/www.hud.govltopics/housinq choice voucher program section 8
Veterans' Housing voucher information:
https:llwww.hud.govlprogram offices/public Indian housing/programslhcvlvash
Family unification voucher information:
https://www.hud.qov/procirarn offices public Indian housing/programs hcv family
Non-elderly disabled voucher information:
https:llwww.hud.govlprogram offices/public Indian housing/programslhcvined
Mainstream non-elderly disabled voucher information:
https:h'www.hud.gov!program offices/public Indian housing/programs!hcv!mainstream
Currently Congress is not allocating funds for new general Section 8 vouchers. So to obtain a general
Section 8 voucher (i.e. you are low-income and qualify but do not fall into one of the four categories
above) a person would have to wait until a current Section 8 voucher became available. Congress has
allocated additional vouchers in the four voucher areas listed above (specialized vouchers). Currently,
Yakima Housing Authority administers the following numbers of specialized vouchers:
VASH: 93 NED: 15 Mainstream: 5 Family Unification: 0 (denied application)
To obtain additional VASH vouchers, the VA(Walla Walla) is required to approve the request. Yakima
qualifies for them, but the VA has not been convinced of the need based on prior Point-in-Time
homeless counts so it has not supported additional vouchers to Yakima.
The NED and Mainstream vouchers being administered by the Yakima Housing Authority are obtained
in partnership with the Spokane Housing Authority for various reasons. People who are currently
working through DSHS services are generally provided those vouchers.
The Family Unification vouchers are for families who have lost their children and the lack of housing is
holding them back from reunification with the children from foster care. The Yakima Housing Authority
applied for these vouchers, but was denied due to lack of statistical data from DSHS to support the
request. The Yakima Housing Authority is following up on this and would like to apply for these
vouchers again in the future.
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3. What the City of Yakima is doing now
The City of Yakima does not participate in any activities advocating for additional housing vouchers to
be issued to agencies in Yakima County. Affordable housing is a strategic priority. The City contracts
with lobbyists who work in Olympia and Washington, DC to promote legislation that is within the City's
priorities, so lobbying could occur on these issues.
4. Examples of other communities in Washington State
N/A
5. Pros and Cons
Helping the Yakima Housing Authority through lobbying efforts in Washington, DC (and Washington
State if appropriate) could help get additional vouchers to Yakima. One con is that if this effort is added
to the lobbying contract it could increase the cost of the City's lobbyists.
6. Process Next Steps
Evaluate the lobbying contract and determine if there is room to add the objective of helping the Yakima
Housing Authority obtain more vouchers. This could include lobbying to ask Congress to appropriate
more vouchers as a whole across the country, lobbying to no longer require the VA to approve voucher
requests for VASH vouchers, or issuing new non-specialized Section 8 vouchers. It will be necessary
to work closely with the Yakima Housing Authority. Before any decisions are made, it may be helpful to
have some of the councilmembers sit down with the Yakima Housing Authority to get a better
understanding of the vouchers, the challenges, and what a lobbying effort might look like.
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Env
Affordable Housing Project Status Report Item 2.c:
Explore Flexibility in the Building Code and Affordable Housing
1. How does this promote affordable housing?
Codes such as the International Building Code and Residential Code apply to the construction of new
structures. Once a Certificate of Occupancy (C of 0) has been issued, those codes are no longer
applicable for the ongoing maintenance of buildings. Chapter 11 of the International Fire Code applies to
the ongoing maintenance of commercial buildings including multifamily structures, their fire protection,
and other systems. Those maintenance requirements are monitored through our annual fire inspection
program.
The International Property Maintenance Code (IPMC) is a maintenance document that is intended to
establish ongoing minimum standards for basic equipment, lighting, ventilation, heating, sanitation,
unsafe conditions, and fire safety in addition to and beyond the scope of the fire code for all structures
and property including:
• One and two family dwellings
• Multifamily structures
• Commercial buildings
• Vacant land
Responsibility is fixed among owners, operators and occupants for code compliance. The IPMC provides
for the regulation and safe use of existing structures in the interest of the social and economic welfare of
the community. This code promotes affordable housing through fire prevention and maintenance creating
sustainable housing that reduces costs associated with the replacement of dilapidated structures, major
repairs due to neglect, and enables long term tenancy with less turnover.
2. Statutory Authority
Unlike our building and fire codes, the State has not mandated the adoption of the IPMC, allowing local
jurisdictions to amend the code to whatever level the adopting authority sees fit to meet the particular
needs of the community.
3. What the City of Yakima is doing now
The City has adopted the 1991 Uniform Housing Code (UHC), and the 1991 Code for the Abatement of
Dangerous Buildings (DBC). These two codes contain many of the items that are covered by the IPMC.
The UMC provides minimum standards that regulate the maintenance of all residential buildings and
structures, while the DBC is more for defining dangerous building conditions.
Enforcement provisions in these codes have been modified by the adoption of Title 11.10 which provides
additional maintenance standards and enforcement mechanisms, as well as providing updated penalty
procedures.
4. Examples of other communities in Washington State
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The IPMC has become the standard for a majority of cities and counties across the state. Most, if not all
have amended the code to fit their individual community needs.
5. Pro/Con
While the IPMC has proved to be a well thought out code, adopting it could have negative consequences
such as:
• Imposing costs on homeowners that find that they cannot afford to do many of the things that
would be required of them
• Imposing maintenance costs on landlords that would typically be transferred to tenants
Adopting the IPMC may be beneficial for the City of Yakima by:
• Consolidating older, outdated codes. The code contains many of the same provisions that are
found in the UHC and DBC.
• Utilizing a code that was established in conjunction with the International family of building and
mechanical codes that are adopted by the State of Washington
6. Process Next Steps
Since the IPMC can be amended to fit the needs of the community, staff could research what other
jurisdictions have amended, compare our other codes, and present those findings to the Public Safety
Committee. If the committee desires to move forward, staff would create an ordinance and present that
to the committee again for review. The committee could either provide further recommendation, or decide
to move the ordinance to the full council for adoption.
In order to encourage the construction of affordable one and two family dwellings,townhouses, and multi-
family apartment buildings, building codes contain minimally required features that provide a reasonable
level of safety while making housing affordable.
The 2015 International Residential Code (IRC) allows one and two family dwellings and town houses to
be constructed:
• With at least one habitable, 70 square foot space (bedrooms, living rooms, dining rooms and
kitchens are considered habitable spaces), exclusive of spaces such as restrooms, storage
closets and hallways.
o These "spaces" may be combined into one, enabling a dwelling to be quite small. Previous
codes required at least one minimum space of 120 square feet exclusive of other spaces
• 7 foot ceilings, and room width of 7 feet. Other parts of a room may have lower ceilings, but some
of those areas cannot contribute to the required room size
• Without the need for a fire sprinkler system
• With only one exterior exit door
• As two family (duplexes) either next to each other or stacked on top of each other
o Stacked duplexes allows more units on a lot, provided that there is at least 10 feet between
them
• With an unlimited number of townhouses (single units in groups of three or more) constructed
under one roof
o Individual units may contain from one up to three stories
o Units may be constructed with a common 2 hour fire rated wall between them, rather than
(2) one hour walls, reducing construction costs
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The 2015 International Building Code which regulates apartment style multi-family structures allows
minimum habitable room sizes of:
• 120 square feet, with additional habitable spaces of 70 square feet each, exclusive of restrooms
• 7 1/2 foot ceilings, and room width of 7 feet. Other portions of a room can have lower ceilings,
but some of those areas cannot be counted toward the required room size
• Efficiency living units with a floor area of 220 square feet for up to 2 people. These units would
typically contain combination kitchen/living/sleeping rooms
• Some existing buildings that undergo renovations and new multilevel buildings intended for
residential use may be constructed without elevators
o This depends on the nature of other occupancies in the building, but it can be a great help
in making a project affordable
7. Statutory Authority
The IBC and IRC is a state mandated code that is used by all cities and counties in Washington State.
8. What the City of Yakima is doing now
Besides utilizing the IBC and IRC, the City of Yakima has an ordinance that allows building plans for
one and two family dwellings, townhouses, and up to 6 unit multifamily structures to be "mastered". This
enables developers to pay for one plan review for all the variations of building features of their choice,
and to construct multiple buildings from those reviewed plans. They save 55% of their permitting costs
for buildings constructed after the first one.
9. Pro/Con
RCW 19.27.060 allows local jurisdictions to reduce the building code's minimum room size (height and
width) in one and two family dwellings by ordinance. With the currently allowed minimum room sizes, a
dwelling could be as small as about 90 square feet with a combined kitchen and living space, and a
restroom. It would not be recommended to reduce room sizes any further without a specific study to look
at building safety and practicality.
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Env
Affordable Housing Project Status Report Item 3.a:
The City has adopted the Multi-Family Housing Tax Credit Program, authorized in YMC
11.63.040. The program is limited to CBD zones. Should it be expanded?
10. How does this promote affordable housing?
The purpose of the Multi-Family Housing Tax Credit Incentive, is to provide for increased residential
opportunities in the city of Yakima within urban centers where the Yakima city council determines there
are insufficient housing opportunities. It is further the purpose of this program to stimulate the
construction of new multiple-unit housing and the rehabilitation of existing vacant and underutilized
buildings for multiple-unit housing in urban centers having insufficient housing opportunities that will
increase and improve residential opportunities within these urban centers.
11. Statutory Authority
RCW 84.14 & YMC 11.63
12. What the City of Yakima is doing now
The city currently has three resolutions in place and three certificates of tax exemption filed with the
Yakima County Assessor for:
a. Jem Development
b. Mills Yakima Properties
c. One Chestnut LLC
13. Examples of other communities in Washington State
The city of Spokane used the Multi-Family Housing Tax Credit Incentive to encourage development of
vacant land, Kendall Yards. The 77 acre property in the heart of Spokane sat idle for more than 50
years. Today, Kendall Yards has retail stores, restaurants, coffee shops, commercial office buildings
and several housing choices from apartments to new homes.
14. Pro/Con
Since the adoption of ordinance No 2006-37 and enacting Chapter 11.63 of the Yakima Municipal
Code, three projects have taken advantage of the tax deferral program for a total rehabilitation or
construction of 61 units. The designated area currently spans a section of downtown from N 6'h St to S
7'h Ave between MLK and E Walnut Street, narrowing around Front St from Chestnut to Staff Sgt.
Pendleton and encompasses approximately .3 sq miles. Expanding the territory to cover the entire
CBD Parking Exempt Area could spur on additional development and rehabilitation outside the current
scope.
15. Process Next Steps
City Council should review whether or not to expand the existing boundaries.
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Env
Affordable Housing Project Status Report Item 3.b:
Review of Development Standards to determine if they present challenges for new affordable
housing developments
1. What are Development Standards?
The goal of development standards are to set a minimum standard on the appearance and
performance of new commercial and residential construction.
2. Statutory Authority
State law RCW 36.70 provides authority for GMA Cities and Counties to establish mandatory
requirements.
3. What the City of Yakima is doing now
Yakima has a set of site design and improvement standards that cover items such as density allowed in
the R-1 zone; lot size; building height; types of structures permitted; vision clearance; parking; and
sitescreening. At this point, Yakima does not have any standards guiding how new construction and
landscaping should look throughout the City.
4. Examples of other communities in Washington State
Kennewick, Issaquah, Snoqualmie, Seattle, Tacoma, Olympia, and Ellensburg are examples of cities
that all have design standards specifying the types of materials that should be used in the construction
of a new building, and the types of building elements that should be included in a buildings design to
help improve cohesiveness. Not only do these design standards include building design, but landscape
design as well.
5. Pro/Con
Pro — Implementing a set of design standards can help retain the character of Yakima neighborhoods
and help insure that new homes are, at least, held to a certain standards of development, which may
increase property values.
Con — Builders and developers will argue that doing this will increase their construction costs and that
they will have to pass those costs on to the purchaser of the home.
One item that can be discussed to help ease the Yakima into implementing design standards is to offer
utility incentives. Yakima should begin looking at the different types of serves that are required of
development and determine if there areas where they City can help, such as infill lots. The City has
many infill lots, particularly on the east side of 16th Ave., where utility services are not available. Is there
a program the City can implement to help extend services to these lots, easing the cost of utility
extension on the developer? Many cities have implemented programs like this with the expectation new
lots will be available, thus increasing the number of users on the service.
6. Process Next Steps
Hold a study session with a Council Planning Commission to determine which design standards would
be appropriate for the City.
Work with the Water and Sewer Divisions and examine if there are any long term programs that can be
implemented to extend utility services to infill lots.
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Env
Affordable Housing Project Status Report Item 3.c:
Strategies to Address Vacant and Abandoned Buildings:
Community Renewal District
1. How does this promote affordable housing?
Turning vacant and abandoned homes and buildings into habitable housing units will increase the
number of housing units in the City and remove blight that is affecting the neighborhood surrounding a
vacant or abandoned building.
2. Statutory Authority
RCW 35.81 —Community Renewal Law. The Legislature provides, through the Community Renewal
Law, a tool to acquire and redevelop/rehabilitate blighted areas through a city's community renewal
plan and designated community renewal projects.
For a city to utilize this statute, it must first designated an area, or areas, as "blight," as defined in the
statute. A finding of blight requires a council determination that there are public health and safety
concerns, general welfare concerns, or economic factors that are creating the blight (mainly in
commercial or mixed use areas). Then, the City must create a Community Renewal Plan that provides
for proposed actions to be carried out in the designated blighted/community renewal area. The Plan
may include a plan to address persistent high levels of unemployment or poverty. The Plan includes
the projects that are going to be undertaken to eliminate or prevent the spread of blight and redevelop
or rehabilitate the area.
The statute outlines an extensive procedure to create a Community Renewal Plan and its projects.
Public hearings are necessary, and public input at many levels of the process would be a best practice.
Further, even if projects are identified in an approved plan, the rebuilding or rehabilitation would require
funding, or some other public-private partnership to advance.
3. What the City of Yakima is doing now
The City of Yakima does not have a community renewal plan. The City addresses vacant and
abandoned buildings through the Codes Division. Vacant and abandoned buildings are secured by the
property owner in most cases. In cases where the building is in such a condition that it creates an
imminent danger, the City may require the property owner to demolish the building. These decisions
are made on a case-by-case basis.
4. Examples of other communities in Washington State
Vancouver, Washington, used the community renewal statute in 2005 to create residential and
commercial properties in an underutilized commercial corridor. Vancouver's community renewal plan is
an example of the extensive work that goes into creating the plan and projects. Vancouver's plan can
be read here:
http:// cityofvancouver.us/sites/default/files/fileattachments/community and economic developme
nt/page/1415/fourthplainsubareaplan.pdf
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MRSC has also catalogued other community actions here: http://mrsc.orc7/Nome/Explore-
Topics/Economic-Development/Financinq-Economic-Development/Community-Renewal-Law.aspx
5. Pro/Con
There are many pros and cons of using the community renewal law, which differ based on whether the
City intends to use it for commercial, residential, or both, and how the City intends to acquire the
property. One pro of the community renewal law is that it gives the City an opportunity to enter into
public-private partnerships to rehabilitate blighted areas of the City—both residential and commercial.
The cons include the extensive procedures that need to be met to create a community renewal area,
the necessity to find funders and/or partners to rehabilitate the renewal area, and the fact that to create
the community renewal area a portion of Yakima will be declared a "blight" which could stigmatize that
area of the City.
6. Process Next Steps
Due to the extensive requirements, and the amount of time it will take to undertake the process, if the
City Council is interested in the Community Renewal Law, it is suggested that there be a presentation
of the full process, as well as detailed examples of successful projects, be given to the Council in the
future. After more comprehensive information is given the Council may have additional questions about
moving forward.
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Env
Affordable Housing Project Status Report Item 3.d:
Strategies to Address Vacant and Abandoned Buildings:
Community Renewal District
1. How does this promote affordable housing?
Turning vacant and abandoned homes and buildings into habitable housing units will increase the
number of housing units in the City and remove blight that is affecting the neighborhood surrounding a
vacant or abandoned building.
2. Statutory Authority
RCW 35.81 —Community Renewal Law. The Legislature provides, through the Community Renewal
Law, a tool to acquire and redevelop/rehabilitate blighted areas through a city's community renewal
plan and designated community renewal projects.
For a city to utilize this statute, it must first designated an area, or areas, as "blight," as defined in the
statute. A finding of blight requires a council determination that there are public health and safety
concerns, general welfare concerns, or economic factors that are creating the blight (mainly in
commercial or mixed use areas). Then, the City must create a Community Renewal Plan that provides
for proposed actions to be carried out in the designated blighted/community renewal area. The Plan
may include a plan to address persistent high levels of unemployment or poverty. The Plan includes
the projects that are going to be undertaken to eliminate or prevent the spread of blight and redevelop
or rehabilitate the area.
The statute outlines an extensive procedure to create a Community Renewal Plan and its projects.
Public hearings are necessary, and public input at many levels of the process would be a best practice.
Further, even if projects are identified in an approved plan, the rebuilding or rehabilitation would require
funding, or some other public-private partnership to advance.
3. What the City of Yakima is doing now
The City of Yakima does not have a community renewal plan. The City addresses vacant and
abandoned buildings through the Codes Division. Vacant and abandoned buildings are secured by the
property owner in most cases. In cases where the building is in such a condition that it creates an
imminent danger, the City may require the property owner to demolish the building. These decisions
are made on a case-by-case basis.
4. Examples of other communities in Washington State
Vancouver, Washington, used the community renewal statute in 2005 to create residential and
commercial properties in an underutilized commercial corridor. Vancouver's community renewal plan is
an example of the extensive work that goes into creating the plan and projects. Vancouver's plan can
be read here:
http:// cityofvancouver.us/sites/default/files/fileattachments/community and economic developme
nt/page/1415/fourthplainsubareaplan.pdf
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28
MRSC has also catalogued other community actions here: http://mrsc.orc7/Nome/Explore-
Topics/Economic-Development/Financinq-Economic-Development/Community-Renewal-Law.aspx
5. Pro/Con
There are many pros and cons of using the community renewal law, which differ based on whether the
City intends to use it for commercial, residential, or both, and how the City intends to acquire the
property. One pro of the community renewal law is that it gives the City an opportunity to enter into
public-private partnerships to rehabilitate blighted areas of the City—both residential and commercial.
The cons include the extensive procedures that need to be met to create a community renewal area,
the necessity to find funders and/or partners to rehabilitate the renewal area, and the fact that to create
the community renewal area a portion of Yakima will be declared a "blight" which could stigmatize that
area of the City.
6. Process Next Steps
Due to the extensive requirements, and the amount of time it will take to undertake the process, if the
City Council is interested in the Community Renewal Law, it is suggested that there be a presentation
of the full process, as well as detailed examples of successful projects, be given to the Council in the
future. After more comprehensive information is given the Council may have additional questions about
moving forward.
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Env
Affordable Housing Project Status Report Item 3.e:
Opportunity Zones Funding for Affordable Housing
1. What are Opportunity Zones?
Enacted as part of the tax reform package that was signed into law in December 2017, the Opportunity
Zones program is a new tool that allows individuals and corporations to take capital gain incurred from
the sale or exchange of property— appreciated stocks, buildings, family businesses, and more —and
roll the gain into businesses or projects located within Opportunity Zones.
The Department of Housing and Urban Development is now including 'substantial rehabilitation' of
multifamily projects that would speed up the application process for developers looking to use low-
income tax credit to redevelop old buildings in Opportunity Zones.
2. Statutory Authority
Opportunity Zones were added to the tax code by the Tax Cuts and Jobs Act in December 2017 in an
effort to steer long-term capital investments into economically distressed communities.
3. What is the City of Yakima doing now?
The city worked with the Department of Commerce and other stakeholder groups to identify specific
Opportunity Zones within the city. Three tracts were chosen; Downtown, the Mill Site, and the Yakima
Speedway.
City staff attended an Opportunity Zone summit hosted by the Washington Department of Commerce in
December of 2018.
City staff attended several sessions on Opportunity Zones at the National Main Street conference in
March of 2019.
4. Examples of other communities in Washington State
City of Tacoma has created an opportunity zone prospectus identifying areas within designated
Opportunity Zone tracts where specific investment could be utilized and how.
https lima keittacoma.comj
5. Pro/Con
Pro — Investors can defer their capital gains and thus not pay taxes on the gains until the year 2026.
Investors may reduce the amount of taxes they pay on the capital gains overall. Opportunity Fund can
relieve up to 15% of the original tax amount. If investments are untouched over 10 years, the interest
earned may be entirely tax-free. Opportunity for community revitalization in undeveloped areas.
Con- New program that isn't fully developed and oversight mechanisms aren't fully set up by those
overseeing the program, US Treasury and IRS. There's no guarantee that the projects will fit with the
opportunity zone guidelines or that the project will be successful. Very short window of opportunity.
Potential for displacement, gentrification, and loss of historic authenticity.
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6. Process Next Steps
Review whether or not the city should/could fast track the permitting process for "Opportunity Zone
projects". Other strategies may be available within Opportunity Zones, as they are modified in the
future.
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Env
Affordable Housing Project Status Report Item 3.f:
Review CDBG and HOME program funds for ability to support additional housing units
1. What are CDBG and HOME Funds?
The City of Yakima has been an "Entitlement" Community for Community Development Block
Grant (CDBG) and HOME funds since the programs were developed, due to the population of
the City and demographics. As long as the programs are funded by HUD, the City meets the
guidelines and participates in the programs, we are awarded HUD funds. Although similar in
purpose and source, the CDBG and HOME programs have different regulations.
2. Statutory Authority
The program is authorized under Title 1 of the Housing and Community Development Act of 1974,
Public Law 93-383, as amended; 42 U.S.C.-530.1 et seq.
3. What the City of Yakima is doing now? In 2019 we will receive $1,032,307 in CDBG and
$482,161 in HOME funds. Funding of these programs was discussed in the 2019 budget
workshops and the public was given opportunity comment in early 2019. The 2019 Annual
Action Plan is scheduled for City Council on May 7, 2019. While CDBG funds may be used for a
wide variety of programs, all must have direct benefit to Census Tracts where at least 50% of
the population is low to moderate income households. HOME funds must be used exclusively
for the repair or construction of housing units in income eligible areas.
Yakima also has the opportunity to issue Section 108 Loans, because we are an Entitlement
Community. This year we have the ability to offer loans up to $2.4 Million for qualified projects.
4. Examples of other Entitlement communities in Washington State include: There are 30 cities in
the State of Washington that receive CDBG Entitlement grants.
5. Pro/Con
Pro —
Con —
6. Process Next Steps - The city will be developing a 2019- 2024 plan for CDBG and HOME
funding programs. This 5-year plan could provide an opportunity to evaluate existing programs
and discuss modifications, as desired.
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