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HomeMy WebLinkAbout06/18/2025 - Agenda Packet AGENDA Planning Commission Meeting 6:00 PM - Wednesday, June 18, 2025 Council Chambers, 7th Floor, City Hall – 1055 S. Grady Way 1. CALL TO ORDER 2. ROLL CALL 3. CORRESPONDENCE RECEIVED 4. AUDIENCE COMMENT 1. Virtual Attendees 2. In-person Attendees Those attending virtually (Call 253-215-8782, Zoom meeting ID: 880 3465 9736, password: Weplan2024 or https://us06web.zoom.us/j/88034659736?pwd=z1TyxJNsMEloal0MglAamlJkjbnLaR.1) will be offered an opportunity to speak before the in-person (physical meeting at the City Hall, 7F Council Chambers) comments are completed. Please use your device to raise your (electronic) hand in order to be recognized by the Recording Secretary.Each speaker will be provided three (3) minutes to address an item. Groups or organizations may select a spokesperson to speak on a group’s behalf. Alternatively, interested parties are encouraged to provide written comments to planningcommission@rentonwa.gov. Attendees will be muted and not audible to the Commission except during times they are designated to speak.Public can use the “Raise Hand” option if attending through video.If there are others calling in, you can be called upon by the last 4 digits of your telephone number. Phone instructions: *6 to mute/unmute, *9 to raise hand. 5. COMMISSIONER COMMENTS 6. ADMINISTRATOR'S REPORT 7. BRIEFING - DOCKET GROUP 20A a) D-239: CO-LIVING b) D-240: INCENTIVIZING SMALL BUSINESSES Page 1 of 14 8. COMMISSIONER COMMENTS 9. ADJOURNMENT Hearing assistance devices for use in the Council Chambers are available upon request. For more information please visit rentonwa.gov/planningcommission Page 2 of 14 CITY OF RENTON Community and Economic Development Department #D-239: Co-Living Staff: Angelea Weihs, Associate Planner Date: June 13, 2025 Applicant or Requestor: Staff _____________________________________________________________________________________ GENERAL DESCRIPTION In 2024, the Washington State Legislature passed House Bill (HB) 1998, which aims to expand flexible housing options and streamline co-living development in urban areas. The bill requires jurisdictions to allow co-living housing on any lot within an urban growth area where at least six (6) multi-family units are allowed, including lots zoned for mixed-use development. The City of Renton is required to implement the new housing requirements by December 31, 2025. BACKGROUND – HB 1998 CO-LIVING In 2024, the Washington State Legislature enacted Engrossed 2nd Substitute House Bill 1998 (HB 1998), now codified in the Revised Code of Washington (RCW) 36.70A.535. This bill mandates that cities and counties subject to the Growth Management Act must adopt development regulations allowing co-living as a permitted use on any lot within an urban growth area that permits at least six (6) multi-family residential units, including those zoned for mixed-use development. The legislation also establishes standards related to unit size, parking, density, fees, and other development criteria. In response to these mandates, the City of Renton is required to amend Renton Municipal Code to implement the new housing regulation by December 31, 2025. HB 1998 also has specific regulatory requirements for the following categories: • Zoning • Development Standards • Unit Standards • Mixed-Use Requirements • Parking • Affordable Housing Incentive Programs • Density • Sewer Connection Fees WHAT IS CO-LIVING? State law defines “co-living housing” as: “A residential development with sleeping units that are independently rented and lockable and provide living and sleeping space, and residents share kitchen facilities with other AGENDA ITEM #7. a) Page 3 of 14 #D-239 Page 2 of 8 June 13, 2025 sleeping units in the building. Local governments may use other names to refer to co-living housing including, but not limited to, congregate living facilities, single room occupancy, rooming house, boarding house, lodging house, and residential suites.” As indicated in the definition above, many terms are used to refer to co-living housing. Currently, Renton Municipal Code utilizes the term “congregate residence” to regulate this housing typology. Renton Municipal Code defines congregate residences as: “Any building or portion thereof that contains facilities for living, sleeping and sanitation and may include facilities for eating and cooking for occupancy for other than a family. A “congregate residence” may include a boarding house, but does not include a group home I or II, convalescent center, jail, hotel, motel or secure community transition facility.” Proposed Recommendation: Amend Renton Municipal Code to utilize the same terminology, “co- living housing,” for consistency with HB 1998. Additionally, incorporate co-living housing as a distinct dwelling unit type. ZONING HB 1998 requires that cities allow co-living housing as a permitted use on any lot that allows at least six (6) multi-family residential units, including on a lot zoned for mixed use development. Currently, the Renton Municipal Code only permits Congregate Residences in the following three (3) zones: • Residential-14 (R-14) Zone: Allowed with an Administrative Conditional Use Permit. • Center Village (CV) Zone: Permitted outright. • Center Downtown (CD) Zone: Allowed, provided the use is not located on the ground floor of buildings within the Downtown Business District (as depicted in RMC 4-2-080D). Congregate Residences are currently prohibited in all other zones within Renton. As a result, the existing regulations do not align with HB 1998, which requires broader approval of co-living housing in applicable multi-family zones. To ensure compliance with the state legislation, Renton Municipal Code will need to be amended to allow co-living housing in all zones that allow at least six (6) multi- family residential units. Proposed Recommendation: Amend Renton Municipal Code to allow co-living housing, in all the following zones, where at least six (6) multi-family residential units are permitted: RESIDENTIAL ZONES COMMERCIAL ZONES Resource Conservation Zone (RC) Residential-1 Zone (R-1) Residential-4 Zone (R-4) Residential-6 Zone (R-6) Residential-8 Zone (R-8) Residential-10 Zone (R-10) Commercial Neighborhood Zone (CN) Center Village Zone (CV) Commercial Arterial Zone (CA) Center Downtown Zone (CD) Commercial Office Zone (CO) Commercial Office Residential Zone (COR) AGENDA ITEM #7. a) Page 4 of 14 #D-239 Page 3 of 8 June 13, 2025 Residential-14 Zone (R-14) Residential Multi-Family Zone (RMF) Residential Multi-Family 2 Zone (RMF-2) Urban Center-1 Zone (UC-1) Urban Center-2 Zone (UC-2) DEVELOPMENT STANDARDS HB 1998 prohibits cities from including any development regulations or standards for co-living housing that are more restrictive than those that are required for other types of multi-family residential uses in the same zone. In accordance with this requirement, staff proposes to review and amend Renton Municipal Code, where necessary, to ensure compliance with HB 1998. Any applicable design standards and other development standards that govern multi-family residential developments in the same zone will also apply to co-living housing, provided they remain consistent with the provisions of HB 1998. Proposed Recommendation: Amend Renton Municipal Code, where necessary, to confirm that all standards and requirements for co-living housing are equivalent to, and not more restrictive than, those required for other multi-family housing types in the same zone, ensuring full compliance with HB 1998. UNIT STANDARDS HB 1998 prohibits a city from including any requirements for co-living housing, such as: • Room dimensional standards larger than that required by the state building code, including dwelling unit size, sleeping unit size, room area, and habitable space, or • Requirements to provide a mix of unit sizes or number of bedrooms. Currently, RMC 4-4-155, Attached Dwelling Units - Minimum Standards, establishes minimum standards for attached dwelling units to ensure safety, functionality, and livability. Key requirements include: • Habitable Space: Developments must meet minimum space requirements based on bedroom count. • Bedroom Requirements: Developments with four (4) or more dwelling units must comply with distribution guidelines for bedroom counts. • Bathrooms: Developments must meet bathroom specifications to provide adequate facilities for each dwelling unit. • Kitchen Standards: Developments must meet minimum kitchen standards for each dwelling unit to ensure adequate cooking and food storage capabilities. • Storage Requirements: Developments must meet storage allocation standards to meet basic residential needs. AGENDA ITEM #7. a) Page 5 of 14 #D-239 Page 4 of 8 June 13, 2025 However, these standards do not align with the provisions of HB 1998, which prohibit cities from imposing dimensional requirements, bedroom mix mandates, or additional restrictions on co-living housing beyond state building code regulations. Therefore, staff proposes to amend the Renton Municipal Code to explicitly exclude co-living housing from applicability of RMC 4-4-155, ensuring compliance with HB 1998. Proposed Recommendation: Amend Renton Municipal Code to exclude co-living housing from applicability of RMC 4-4-155, Attached Dwelling Units – Minimum Standards, ensuring compliance with HB 1998. MIXED-USE REQUIREMENTS HB 1998 prohibits cities from requiring mandatory inclusion of commercial uses for co-living housing, unless those uses are also required for other multi-family dwelling types. However, location-specific regulations that require ground-floor, non-residential uses for multi-family housing may also be applied to co-living housing. Several commercial zones within the city currently have commercial space requirements for multi- family development, including the following zones: • Commercial Neighborhood Zone (CN) • Center Village Zone (CV) • Commercial Arterial Zone (CA) • Center Downtown Zone (CD) • Commercial Office Zone (CO) • Commercial Office Residential Zone (COR) • Urban Center-1 Zone (UC-1) • Urban Center-2 Zone (UC-2) Furthermore, multi-family uses are not permitted within the CA or CN Zones in the Benson, Cedar River, Talbot, or Valley Community Planning Areas. To maintain consistency, staff proposes applying the same location and mixed-use requirements for co-living housing as are currently applied to other multi-family housing types in the same zones. This approach ensures alignment with HB 1998, while preserving existing zoning standards for mixed-use areas. Proposed Recommendation: Amend the Renton Municipal Code to ensure that co-living housing is subject to the same location and mixed-use zoning requirements as other multi-family housing types within the same zones, and to ensure that development standards do not impose additional conditions unique to co-living housing, consistent with HB 1998. PARKING HB 1998 prohibits cities from requiring off-street parking for co-living housing when located within a one-half (½) mile walking distance (“walkshed”) of a major transit stop (See Attachment A). A major transit stop is defined as: AGENDA ITEM #7. a) Page 6 of 14 #D-239 Page 5 of 8 June 13, 2025 • A stop on a high-capacity transportation system funded or expanded under the provisions of chapter 81.104 RCW; • Commuter rail stops; • Stops on rail or fixed guideway systems, including transitways; • Stops on bus rapid transit routes or routes that run on high occupancy vehicle lanes; or • Stops for a bus or other transit mode providing actual fixed route service at intervals of at least 15 minutes for at least five (5) hours during the peak hours of operation on weekdays. Within the City of Renton, key qualifying routes include the King County RapidRide F line, future Sound Transit Stride, and Future King County RapidRide I line. For areas outside of the one-half (½) mile walkshed, HB 1998 also contains prescriptive language that restricts the amount of parking a city can impose to no more than 0.25 off-street parking spaces per sleeping unit. Proposed Recommendation: Amend the Renton Municipal Code to align with HB 1998, ensuring that parking requirements for co-living housing comply with state-imposed limitations. AFFORDABLE HOUSING INCENTIVE PROGRAMS HB 1998 indicates that a city may not exclude co-living housing from participating in affordable housing incentive programs under RCW 21 36.70A.540. Per RCW 21 36.70A.540, affordable housing incentive programs include, but are not limited to, the following: • Density bonuses within the urban growth area; • Height and bulk bonuses; • Fee waivers or exemptions; • Parking reductions; or • Expedited permitting. The City of Renton currently offers several affordable housing incentive programs, including the Multi-Family Housing Property Tax Exemption program, Waived Fees program, and affordable housing density bonus. Proposed Recommendation: Amend Renton Municipal Code to ensure co-living housing is eligible for all applicable affordable housing incentive programs provided by the city, including the Multi- AGENDA ITEM #7. a) Page 7 of 14 #D-239 Page 6 of 8 June 13, 2025 Family Housing Property Tax Exemption program, Waived Fees program, and affordable housing density bonus. DENSITY HB 1998 mandates that a city may not treat a sleeping unit in co-living housing as more than one- quarter (1/4) of a dwelling unit for purposes of calculating dwelling unit density. However, for most development types in the city, Renton Municipal Code regulates density based on the number of dwelling units per net acre, without specific provisions for co-living sleeping units. Furthermore, Renton Municipal Code does not classify congregate residences as a dwelling unit type for the purposes of density calculations. Therefore, amendments are needed to ensure the City’s regulations are consistent with state requirements and to clearly address how co-living housing is treated under local density standards. Proposed Recommendation: Amend the Renton Municipal Code to align with the provisions of HB 1998 by explicitly defining sleeping units in co-living housing and clarifying that no more than four (4) sleeping units shall be counted as a single dwelling unit for the purpose of density calculations. This amendment would apply to all zoning districts where multi-family housing is permitted, consistent with the state legislation. SEWER CONNECTION FEES HB 1998 establishes a clear restriction on how cities may calculate sewer connection fees for co- living housing. Specifically, HB 1998 mandates that a city may not treat a sleeping unit in co-living housing as more than one-half (1/2) of a dwelling unit for purposes of calculating fees for sewer connections, unless the city makes a finding, based on facts, that the connection fees should exceed the one-half (1/2) threshold. In Renton, sewer fees are currently assessed based on water meters and sizes rather than the total number of dwelling units. As co-living housing consists of multiple individually leased sleeping units with shared kitchen facilities, the existing method of assessing sewer fees by meter size and number may not directly align with (or conflict with) HB 1998’s limitations on fee calculations. Proposed Recommendation: Review the sewer connection fee structure to ensure that existing assessment methods do not conflict with HB 1998 requirements and amend if necessary to ensure compliance. UPDATE SUMMARY The following summarized key revisions to Renton Municipal Code are proposed for compliance with HB 1998: • Zoning: Allow co-living housing as a permitted use on any lot that permits at least six (6) multi-family units, without any additional restrictions compared to other multi-family uses in the same zone. AGENDA ITEM #7. a) Page 8 of 14 #D-239 Page 7 of 8 June 13, 2025 • Development Standards: Amend code, where necessary, to confirm that all standards and requirements for co-living housing are equivalent to, and not more restrictive than, those required for other multi-family housing types in the same zone. • Unit Standards: Amend code to exclude co-living housing from applicability of RMC 4-4-155, Attached Dwelling Units – Minimum Standards. • Mixed-Use: Amend code to ensure that co-living housing is subject to the same location and mixed-use zoning requirements as other multi-family housing types within the same zones, and to ensure that development standards do not impose additional conditions unique to co-living housing. • Parking: Revise parking requirements for co-living housing as follows: o No off-street parking is required within a 0.5-mile walking distance (walkshed) of a major transit stop. o Outside of the walkshed, require up to 0.25 parking spaces per sleeping unit. • Affordable Housing Incentive Programs: Amend code to ensure co-living housing is eligible for all applicable affordable housing incentive programs provided by the city, including the Multi-Family Housing Property Tax Exemption program, Waived Fees program, and affordable housing density bonus. • Density: For density calculations, amend code to indicate that a co-living sleeping unit is equal to 0.25 of a dwelling unit. • Sewer Connection Fees: Review the sewer connection fee structure to verify that existing assessment methods do not conflict with HB 1998 requirements. STAFF RECOMMENDATION Amend Renton Municipal Code, as described above, to comply with the requirements of HB 1998. IMPACT ANALYSIS Effect on rate of growth, development, and conversion of land as envisioned in the Plan There are no anticipated effects on the rate of growth, development, and conversion of land envisioned in the Plan. Effect on the City’s capacity to provide adequate public facilities There are no anticipated effects on the City’s capacity to provide adequate public facilities. Effect on the rate of population and employment growth There are no anticipated effects on the rate of population and employment growth created by the proposed changes. Whether Plan objectives are being met as specified or remain valid and desirable AGENDA ITEM #7. a) Page 9 of 14 #D-239 Page 8 of 8 June 13, 2025 Objectives of the Plan would remain valid and desirable. Effect on general land values or housing costs There are no anticipated effects on general land values or housing costs. Whether capital improvements or expenditures are being made or completed as expected There are no anticipated effects on capital improvements or expenditures created by the proposed changes. Consistency with GMA and Countywide Planning Policies The proposed amendments are consistent with the GMA and Countywide Policies. Effect on critical areas and natural resource lands There are no anticipated effects on critical areas and natural resource lands. AGENDA ITEM #7. a) Page 10 of 14 Attachment A Map A. Co-Living Half (1/2) Mile Walksheds from Major Transit Stops AGENDA ITEM #7. a) Page 11 of 14 Page 12 of 14 D-240: Incentivizing Small Businesses June 13, 2025 CITY OF RENTON Community and Economic Development Department STAFF REPORT #D-240: Incentivizing Small Businesses Staff: Paul Hintz, Redevelopment Manager Date: June 13, 2025 _____________________________________________________________________________________ SUMMARY: Staff propose an exemption from the collection of impact fees for existing commercial buildings that are 4,000 gross square feet or less in area. The exemption would also apply to leasable spaces, 4,000 gross square feet or less in area, within existing commercial buildings. The exemption would align with an existing exemption for such buildings/spaces from environmental review procedures. The exemption would be intended to incentivize the use of such commercial buildings/spaces and bolster support for small businesses. General Description The purpose of impact fees is to have new growth pay a proportional amount of the impact it has on the City related to transportation, parks, fire, and schools. New growth and development create additional demand and need for public facilities. State law authorizes cities to charge impact fees so that the new growth and development contribute a proportionate share toward the costs of new infrastructure (fire stations and associated equipment, parks, roads, and schools). Impact fees are an important financial tool that helps the City keep its infrastructure in pace with new development, while not compounding deficiencies and reducing the City’s overall levels of service. For example, the Parks impact fees can be used to help the City purchase property that will be used as a park. Renton Municipal Code (RMC) allows the impact fees collected for the most recent use of a building or a leasable space to be deducted from the impact fees owed by a new use. To incentivize property owners to sell or lease their vacant buildings or spaces within a reasonable timeframe, RMC provides a time limit of three (3) years for which the credit toward impact fees from the previous use of a vacant building can be utilized. The current impact fee credit applies as follows: • An existing structure or portion of a structure is deemed vacant only after it has first been occupied. • When an existing building has been vacant for less than three (3) years, the impact fee is the applicable impact fee for the land use category of the new use, less any impact fee previously paid for the land use category of the prior use. • If no impact fee was paid for the prior use, the impact fee for the new use is be reduced by an amount equal to the current impact fee rate for the prior use. • When an existing building has been vacant for a period of three (3) years or more, the impact fee is the applicable impact fee for the new proposed use, without a deduction of the impact fee paid for the prior use. AGENDA ITEM #7. b) Page 13 of 14 D-240: Incentivizing Small Businesses June 13, 2025 While the intent of providing a three-year window during which a vacant building or leasable space may still deduct the impact fees paid for the prior use serves as an incentive to occupy those spaces, once the building or leasable space is vacant past three (3) years the impact fees due can be considerable and a real hindrance to a small business. Staff anticipated that landlords would be incentivized to find tenants but many landlords or building owners appear to be unbothered that their buildings are vacant and that new users will have to pay the full amount of impact fees. Staff believe that relieving existing small buildings and leasable spaces from the collection of impact fees will have a nominal effect on the City’s ability to pay for new infrastructure or facilities needed in response to new growth. Small businesses tend to have slight impacts to public infrastructure and services while having a large positive impact on the local economy and quality of life for residents. On the other hand, small vacant commercial buildings tend to have a disproportionately negative impact on their neighborhoods by contributing to blight and encouraging anti-social or criminal behavior from a small segment of the population. Furthermore, staff believe the exemption aligns with the intent and logic of an existing exemption from environmental review procedures. Existing commercial buildings/spaces with less than 4,000 gross square feet are exempt from environmental review because their limited scale rarely warrants a review of external impacts. Because of this exemption, business owners tend to have little to no interaction with City staff prior to buying or leasing a space; often prospective businesses tend to be unaware of impact fees for these small buildings/spaces until they apply for business license or a building permit, which is typically for “tenant improvements” to make the space functional for a specific business. Staff Recommendation Provide an exemption from the collection of impact fees for existing commercial buildings and distinct leasable spaces within such buildings that are 4,000 gross square feet or less in area. AGENDA ITEM #7. b) Page 14 of 14