The URL can be used to link to this page

Home My WebLink About09/21/2021 12.B. Affordable housing information 1 c41 • /-4riiLl-,\ rr 11 i "i enc u nrry 1 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 12.B. For Meeting of: September 21, 2021 ITEM TITLE: Affordable housing information SUBMITTED BY: Robert Harrison, City Manager SUMMARY EXPLANATION: Councilmember Funk met with housing advocates on September 7, 2021 and received the attached information. Additionally, attached is information presented at the March 9, 2021 Council study session from Byron Borton. ITEM BUDGETED: STRATEGIC PRIORITY: APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: ATTACHMENTS: Description Upload Date Type d Yakima fact sheet 9/8/2021 Corer Memo ❑ homeless network 9/8/2021 Corer Memo ID county health care coalition 9/8/2021 Cower Memo ❑ Borton 9/8/2021 Corer Memo 2 /.(11t1 T‘\ Local Housing Revenue A NEW OPTION FOR YAKIMA COUNTY No matter where we are from,what we look like or how much money we have, we all need a safe, affordable place to live. Homeless Network of Yakima County We have a housing crisis in Yakima County • Per the US Census, 24,128 households(27%)are paying more than a third of their income towards housing. "I lost my job and our • Lack of housing requiring support services is especially acute. Many low- family ended up income housing providers have waitlists with people waiting years to gain homeless, living in the access. • State and federal funds typically require local match funds to gain access woods and then in a and local governments have limited finance tools. shelter until a great • Housing is healthcare.The average cost nationally to public systems of an unsheltered person is over $40,000 annually. Housing with supportive nonprofit helped find services is less than half the cost and results in better health for the us a home, getting our individual. lives back on track. • COVID-19 has only increased housing instability and lack of affordable housing is a public health emergency that will be with us beyond this pandemic. We need consistent and locally controlled funds • Cities and Counties can pass a local housing sales tax, as authorized by HB 1070 in 2020. • This sales tax will help acquire land or existing buildings and/or construct affordable housing to address the housing crisis. 401400011111111111 • This sales tax would complement funds currently managed by the County _ = as well as leverage HOME and 2060 for an impact five or more times larger _ • This 1/10th of 1% sales tax will cost the average resident one penny for - every $10 taxable sales a year (we do not tax food) and will provide a responsible stream of revenue in Yakima County, about $4 million annually. • The timing of this initiative is ideal due to the bi-partisan Working Families Tax Credit which passed this year giving a significant cash boost to households with children. This will greatly offset this small sales tax increase. For more information We support the authority of the Board of County contact Lee Murdock at: Commissioners to serve the entire county including our • lee@homelessnetworkyc.org second largest area — unincorporated Yakima County • 509-834-8173 with these funds. 1!Homeless Network of Yakima County . 503 S 43rd Street Yakima, WA 98901 509-834-8173 September 6, 2021 To: Public Policy Makers The Homeless Network of Yakima County (Network) is a member organization representing 116 partners which includes 84 organizations and 32 concerned community members. The Mission of the Network is to advocate for the people experiencing homelessness in Yakima County to improve their quality of life, increase public awareness of the issues of homelessness, impact public policy and prevent and end homelessness. We are writing you to urge you to meet the extraordinary housing needs of our county by passing the 1/10th of 1% sales tax increase enabled by Legislative action last year and improved upon by HB 1070 this year. We have a housing crisis in Yakima County; per the US Census, 24,128 households (27%) are paying more than a third of their income towards housing.To address this,our county needs more consistent and locally controlled funds to address this crisis.This sales tax will help acquire land or existing buildings and/or construct affordable housing to address the housing crisis as well as complement and leverage HOME and 2060 dollars currently managed by the County. Additionally, up to 40%of the revenues can support mental and behavioral health services which would complement the existing 1/10 of 1% mental health tax currently administered by Yakima County and potentially support the Yakima County Care Campus. Housing is health care. The average cost nationally to public systems of an unsheltered person (police, EMS, court systems, etc.) is over $40,000 annually. Housing with supportive services is more cost effective (less than half the cost), and results in better health for the individual and community. We know that raising taxes is never an easy action. However, we believe that our affordable housing and homeless challenges provide reason for this action. This sales tax will cost the average resident one penny for every$10 taxable sales a year, the tax is not applied to food sales, and will provide a responsible stream of revenue in Yakima County, about $4 million annually. Additionally, in passing the Working Families Tax Credit, the Legislature has given a significant cash boost to households with children offsetting this small sales tax increase. We,the undersigned, strongly urge the adoption of the 1/10th of 1%sales tax to promote Affordable Housing in Yakima County. Sincerely the undersigned individuals and organizations, Beth Dannhardt, Community Member 4 Bryan Ketcham, Director—Catholic Charities Housing Services David Hanson, Executive Director—Sunrise Outreach Center of Yakima David Helseth, Board President—Justice Housing Yakima Mark James, Executive Director—Rod's House Marty Mill, Director—Office of Rural and Farmworker Housing Nathan Poel, Managing Director—Inversion Design Build Quinn Dalan, Executive Director—Yakima County Volunteer Attorney Services Ranae York, Director—Women for Women of Yakima Rhonda Hauff, CEO—Yakima Neighborhood Health Services Tom Gaulke,CEO—Entrust Community Services 5 , yaxvma COu°t ‘re C°a\° Yakima County Health Care Coalition August 4, 2021 To our Public Policy Makers: The Yakima County Health Care Coalition's mission is to advocate for the health care needs of the people of Yakima County. Our priority is to assure services are available to the disproportionate share of the state's Medicaid population living in Yakima County. Our members represent a broad sector including primary care, hospitals, social services, transportation, education, health workforce, philanthropy, and housing—providers and consumers . The members signed below are excited about the opportunity created by House Bill 1590, to increase affordable housing in Yakima County. HB 1590 allows County and City officials the authority to apply a 1/10t" of 1%sales tax(no tax on food) for affordable housing and behavioral health treatment. This would be a cost to residents of Yakima of one penny for every$10.00 spent(again, not on food). Both our County Commissioners and the Yakima City Council have recently reviewed analysis of the housing markets in our communities. It is well recognized we have a lack of affordable housing in our communities, particularly for low income, and very low income individuals and families. Safe and affordable housing is important for all residents of Yakima County, and no more critical for people experiencing homelessness. While health care providers do all we can to mitigate the effects of living without a home, no amount of health care can substitute for stable housing. According to the National Health Care for the Homeless' Health Center Patient Survey, the disparities are remarkable: Health Conditions Among the Homeless Population in Comparison to the General US Population 'r HOMELESS HOUSED • lee li _I: 18% Diabetes 9% 50% Hypertension 9% 35% Heart Attack 17% 20% HIV 1% 36% Hepatitis C 1% 49% Depression 8% 58% Substance Use Disorders 16% Our coalition members who serve People Experiencing Homelessness can attest to the health care improvements when a person has stable housing. Housing IS Health Care. 6 1aKma Coon P�� o a� Care C Yakima County Health Care Coalition Additionally,the average cost nationally to public systems (Emergency Rooms, EMS System, fire, law and justice) of an unsheltered person is over$40,000 annually. Housing with supportive services is less than half the cost, and results in better health for the individual, and ultimately better quality of life for our communities. If the Affordable Housing Tax is passed in Yakima County, this could generate approximately$4 million annually for our county. If passed by the City of Yakima, $2 million annually. If matched with other state or federal resources, Yakima would be well on our way to meeting the housing crisis in our communities. We have talented developers and service providers excited to partner in these efforts. We strongly urge the adoption of the 1/10t" of 1% sales tax to promote Affordable Housing in Yakima. Sincerely, Yakima County Health Care Coalition organizations and members: Rhonda Hauff,CEO,Yakima Neighborhood Health Services Dan Ferguson, MS, Director,Washington State Allied Health Center of Excellence Angela Gonzalez,CEO,Community Health of Central Washington Brian P. Gibbons,Jr., President and CEO, Astria Health Juan Carlos Olivares,CEO,Yakima Valley Farm Workers Clinic Community Health Plan of Washington Tom Gaulke,CEO, Entrust Community Services Darlene Darnell, President and CEO,Catholic Charities Sharon F. Miracle, President and CEO,Yakima Valley Community Foundation Carol Moser, Executive Director,Greater Columbia Accountable Community of Health Triumph Treatment Services 7 1aK�ma Coin P�� o a/'h a Care Go Yakima County Health Care Coalition 8 411111111811111111111111 ORTON FR BORTON &SONS, INC. - FRUIT&COLD STORAGE March 8th, 2021 To: Honorable Mayor and City Council From: Byron Borton, Eastern Washington Residential Developer(The Lodges, Castle Creek, University Parkway Apartments, Powerhouse Flats) Subject: Affordable Housing Discussion for Yakima Facts: -Vacancy Rates remain below 2% in most housing Rental offerings, across nearly all Unit types -Local Developers are trying to Satisfy that Demand in Yakima, by Building both rental and permanent housing units across all sectors. These projects typically take 24-30 months to get fully entitled, and then constructed. Several hundred Units are in the current Pipeline. -Building Costs have risen Substantially in just the past 6-months, and steadily over the past 3-5 years. Lumber is up over 3X, and OSB is nearly 5X over past pricing from just 12-months ago. (In 2015 my cost to Build Apartment Units was around$95,000. Today that Unit cost is approaching$140,000.) -Pacific Power is holding up the Construction of Several Housing Developments, along with the Jobs and Dwelling units those Projects will provide the Yakima Market. (ex. Stealth investments &J&C properties on Powerhouse Rd, and Aspen Tree on Washington & 64th) -The Housing Crisis and lack of available units in not unique to Yakima. Nearly all non-urban areas in Washington state, Oregon, and Idaho are experiencing the same Demand, and lack of Inventory. -The Lodges project began in 2017, and is now just finishing Completion(4-years). Providing substantial volumes of new dwelling units will not happen in just one or two seasons. -66% of the Units at The Lodges Qualify as Affordable Housing per the Federal Fannie Mae Guidelines. These units are priced below market rents, as my Strategy is to offer Quality, as affordably as possible. Market rents would be $100-$200 more monthly, per dwelling unit. 2550 BORTON ROAD • YAKIMA,WA 98903 • PHONE 509-966-3905 • FAX 509-966-3994 • SALES FAX 509-966-5131 9 4%lnlab ORTON FRUI BORTON &SONS, INC. - FRUIT&COLD STORAGE Solutions and Ideas: 1. New Housing of ALL types will ultimately help soften the Housing Crisis and open-up more places to live. For example, in our Complexes, many people are looking to move to Single Family Dwellings, but that inventory is extremely light,therefore they don't move. Any lack of product type creates vacancy compression. Yakima needs more of ALL Types of Homes and Dwellings. Developers will Build what they deem is in Demand,when allowed to do so. 2. Revisit the City UGA, and desired growth Annexation Area. Identify large area such as Terrace Heights where most of the Valley's Growth will occur in Coming Years. 3. If the city council were willing to Draft a letter to Pacific power on behalf of Developers in the Valley, it would speak volumes to understanding our Challenges, and show support for new projects and dwellings being constructed. This problem is nearly Universal in Yakima. This "Unforeseen"bottleneck is real, and slowing down several project by 8-16 months. In Cooperation with the County Commissioners, perhaps a formal plea for help to Pacific Power; focused on Jobs being delayed (or lost), and the unpredictably Delayed timelines on new development projects. This Letter or Communication would speak volumes to Developers trying to Satisfy demand in our valley. 4. Higher Building costs =Higher Housing Prices & Higher Renal rates. Any ideas to Mitigate these costs would be positive. a. Changing the sewer hookup fees to match with Square Footage, or other metrics would be positive. 500 Square foot Studio apartments should not be paying the same fee at 5,500 SF 4-bathroom Houses. b. Amortizing the Connection fees over the First 5-10 years of Billing would also save the developer the Up-front costs of Hook-up fees. Assign a reasonable Rate of return on top of the proposed hook-up fee, and then bill the user that cost over an extended period of time. c. A cohesive ADU plan will help create more Dwellings. ADU typically cost less than Stand-alone units, and provide income for the homeowner investing in the ADU. Also, ADU owners are commonly supplementing their incomes, and therefore do not always command the Highest Rental Rates that professional Rental companies expect. Omitting the Hookup fees and or additional permit fees for ADU's would also incentivize their Construction. 2550 BORTON ROAD • YAKIMA,WA 98903 • PHONE 509-966-3905 • FAX 509-966-3994 • SALES FAX 509-966-5131 � P 10 BORTON FRUI BORTON &SONS, INC. - FRUIT&COLD STORAGE d. Infrastructure Investment. East and West. Identify the areas will large amounts of Developable ground, but which are not adequately served by Utilities. Terrace Heights, Wide Hollow, and West Summitview, all come to mind. Builders will Fulfill this demand if there are feasible ways to Build new units. In many cases, without City Help on infrastructure, it is just not financially feasible. 5. Be partners and"Value-Add" for developers and those People trying to bring growth and NEW Dwellings to the Yakima Valley. The attitude of"We want this to Work" speaks volumes with the investors, builders, and leaders in Yakima. The City has been excellent in recent years, of Communicating and Advancing projects that Benefit the housing in the Yakima Valley. If we continue to Embrace that methodology, Yakima will Continue to flourish, and there will be a steady stream of wonderful new places built for Everyone to Enjoy and Live. Kind Regards Byron Borton 2550 BORTON ROAD • YAKIMA,WA 98903 • PHONE 509-966-3905 • FAX 509-966-3994 • SALES FAX 509-966-5131