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Home My WebLink About06/14/2022 05. Housing Opportunities and FundingB US INE S S O F T HE C I T Y C O UNC I L YAK I M A, WAS HING T O N AG E ND A S TAT E M E NT I tem No. 5. F or Meeting of: J une 14, 2022 I T E M T IT L E :Housing Opportunities and Funding S UB M IT T E D B Y:J oan Davenport, A I C P, Community Development Director J oseph Calhoun, Planning Manager S ara Watkins, City Attorney S UM M ARY E X P L ANAT I O N: This portion of the Council Study Session will provide information about several key housing programs: 1. Summary of the status of Community Development B lock Grant and HO ME program funds, 2. Review status and progress of the Priority Projects from the the Housing Action P lan, 3. City Owned Property Surplus Project and current R F P I T E M B UD G E T E D: S T RAT E G I C P RI O RI T Y: AP P RO V E D F O R S UB M IT TAL B Y T HE C IT Y M ANAG E R RE C O M M E ND AT I O N: Review material and provide direction, as necessary. AT TAC HM E NT S : Description Upload Date Type Affordable Housing CDBG & HOME program summary 6/6/2022 Backup Material Housing Action Plan Status Update 6/6/2022 Backup Material City Owned Property RFP Status 6/6/2022 Backup Material 1 2 3 4 5 6 7 8 Priority 1.1 Update city regulations to remove barriers to innovative housing types 1.2 Make strategic investments in infrastructure 9 Office of the City Attorney City of Yakima 200 South Third Street, 2nd Fl. | Yakima, WA 98901 P: 509.575.6030 | F: 509.575.6160 MEMORANDUM June 3, 2022 TO: Mayor Janice Deccio and Honorable City Councilmembers Robert Harrison, City Manager FROM: Sara Watkins, City Attorney SUBJECT: Update on Request for Proposals associated with property located on South 3rd Street between East Walnut Street and East Spruce Street—RFP 12226P This memo serves as an update to the RFP process and status for the property on South 3rd Street across the street from the Law and Justice Building. Last year the City Council instructed staff to compile a list of City-owned properties and evaluate the feasibility of sale or transfer of some or all of the properties for housing. Staff com piled a list of properties and began the evaluation. One of those properties was sold to Habitat for Humanity. The RFP is pending and is included in your packet for your reference and information. It is currently posted on the City of Yakima’s website. Here is the timeline for the RFP: Project Milestone Anticipated Date RFP Issued May 12, 2022 Deadline for Submittal of Proposals July 15 2022 Evaluation of Submittals by City July 16 through August 12, 2022 Interviews Begin (if requested) August 22, 2022 Preliminary Presentations to City Council September 27, 2022 City Council Considers Letter of Award October 11, 2022 Project Awarded & Contract Signed On or before October 31, 2022 Project Kick-Off December 1, 2022 10 Honorable Mayor and City Councilmembers June 3, 2022 Page 2 Once the proposals are received, the Purchasing Division will create a review panel made up of a diverse group of community member stakeholders to review the applications and, if necessary, conduct interviews. The panel will then forward a recommendation on to the City Council for final review and approval. 11 Distributed at the Meeting r City of Yakima Planning Division June 14, 2022 - City Council Study Session Quarterly Housing Action Plan Update 1. Background In July 2017, the City adopted its 2040 Comprehensive Plan. Based up on population projections developed by Yakima County, the plan anticipates 17,167 additional people by the year 2040. Using Yakima's average household size of 2.68 people, this equates to about 295 dwelling units per year and a total of 6,406 dwellings during the planning period. 2. Permits Issued A total of 1,940 dwelling units have been permitted since 2018 (Data available through May 2022). This accounts for 30% of our 2040 goal in a 5-year period. Dwellings Permitted 2018- May 2022 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 111111 ■ ono 2018 2019 2020 2021 2022 Total To-Go 3. Completed Development The Codes division began tracking completed permits by number of bedrooms in August 2021. A new report is generated monthly that tracks completed permits which have received a Certificate of Occupancy. The data includes remodels that add additional bedrooms, studio and 1-bedroom units, 2-bedroom units, and 3+-bedroom units. In total, 226 units were completed between August 2021 and May 2022. Completed Units Aug 21-May 22 = 226 70 60 50 40 30 20 to Iii o ®1' I t . {. . _' I J�J�� oe� �opec ��c` �oe� ��acy `�a� air 'c4c P Se' O� woe Oe`e �a 4e� NM Remodel 1 Bedrom/Studio mow 2 Bedroom BIM 3+Bedroom Total 4. HAP Strategy Progress On June 5, 2022, the first round of HAP implementation code changes became effective. These updates implement the following HAP Strategies: 1 . Update city regulations to remove uarriers to innovative housing types. LEAD r InwvFCTMENT EFFORT OBJECTIVES City Affordability Housing Supply Older Adult Options Stability Anti-Displacement • Added Tiny Homes, Tiny Home Communities • Modified ADU requirements • Updated land use table uses and levels of review • Allow certain residential uses to apply for a Binding Site Plan • Clarified and reduced some development standards 14. Revise parking stanaaras in key areas. LEAD ,'".,c,s^« INVESTMENT EFFORT OBJECTIVES City Affordability Housing Supply ,JIder Adult Options • Reduced parking requirement for development that qualifies as affordable • Reduced residential parking requirement in CBD 32. Incentivize backyard cottages and cottage housing. LEAD TJ'N, ECiNE INVESTMENT EFFORT OBJECTIVES Affordability Housing Supply Homeownership City $ • Older Adult Options Stability Anti-Displacement • Added Cottage Housing land use o Includes new standards for location, parking, clustering, open space, common area, etc. Several City-Led strategies are under the purview of other departments/divisions which are in- progress as follows: 2. Make strategic investments in infrastructure. LEAD INVESTMENT EFFORT OBJECTIVES City :$$$ Affordability Housing Supply Stability Anti-Displacement • Wastewater master plan update will include additional goals and strategies to extend sewer to existing areas in the city that are currently on septic • Engineering 6-year TIP includes several projects that will add to the city's multi-modal infrastructure 5. Develop, acquire, or sell surplus or under-utilized city property. LEAD INVESTMENT EFFORT OBJECTIVES City $ Affordability Housing Supply •• Stability Anti-Displacement • The city has identified 14 sites to surplus and sell. One parcel has been sold to Habitat for Humanity, several others are in an RFP process to find a suitable residential or mixed-use developer. • SEPA Environmental Review has been completed for three city properties which previously were used for public purposes. 12. Ensure code enforcement does not displace residents. LEAD INVESTMENT EFFORT OBJECTIVES City S Affordability Stability Anti-Displacement • The Codes division adopted the International Property Maintenance Code (IPMC) which includes a standardized process for code compliance cases. 16. Consider fee waivers or deferrals for affordable housing. LEAD At i_IN INVESTMENT EFFORT OBJECTIVES City SS Affordability Housing Supply • The city adopted an affordable housing incentive program (YMC Ch. 7.92). This is a grant program that will allow qualified multi-family development to apply for a portion or all of its water and wastewater connection fees. o In conjunction with this program, the city applied for three grants from the Department of Commerce for the "Connecting Housing to Infrastructure Program" (CHIP). All three projects were funded from the state which will account for approximately $1.37 million and generate around 90 dwelling units. • Codes, Planning and Purchasing staff are developing an RFP for Pre-Approved ADU plans. Once approved through Codes, these building plans would be available for use by the general public. A homeowner could select the plan they like and then work with the architect to finalize an agreement. This process will remove the plan review fee portion of the building permit charge. Finally, the Planning Commission has begun study sessions on round two HAP implementation which includes the following strategies: 7. Create design standards for multifamily and mixed-use development. LEAD E,IN L. INVESTMENT EFFORT OBJECTIVES City $$ Affordability Older Adult Options 8. Improve permitting and environmental review process. LEAD =_ INVESTMENT EFFORT OBJECTIVES City $ •• Affordability Housing Supply 23. Encourage micro-retail and flexible cultural space design. LEAD r ;^s INVESTMENT EFFORT OBJECTIVES City $ •• Stability Anti-Displacement