HomeMy WebLinkAboutHandouts TO: Renton City Council Committee of the Whole (COW)
FROM: Doug Levy, Regional/State/Federal Affairs&Special Projects Consultant—3/4/19
RE: Key Legislative Items in play with respect to Affordable Housing
To Chair Persson&COW Members:
In connection with your Affordable Housing Policy Discussion on Monday night, I wanted you to be
aware of several key affordable housing-related bills that are in play in Olympia. While there are several
dozen bills pertaining to affordable housing, homelessness, and mental/behavioral health, the following
three bills are particularly germane:
• SHB 1406,State Sales Tax Credits for Affordable Housing: This bill prime-sponsored by Rep.
June Robinson (D-Everett/38th Dist.) is one we are advocating strongly for as a priority item on
our 2019 State Legislative Agenda. 1406 provides a state sales tax credit of up to 0.2 percent for
construction of affordable housing units—of which 0.1 percent may be accessed by cities.
Under the bill, cities like ours may also utilize Inter-Local Agreements to pool these funds with
housing authorities. On a statewide basis,the 1406 legislation is forecasted to generate over
$60 million a biennium for cities and counties and can be bonded against for an additional $300
million in buying power. On a Renton-specific basis,our Finance Department previously
estimated a .015 percent state sales tax credit could yield between$400,000 to$430,000 per
year for our City—so for 0.1 percent the figure is likely closer to$260,000 to$280,000/year.
Here are links to the bill and bill report for this legislation:
http://lawfilesext.leg.wa.gov/biennium/2019-20/Pdf/Bills/House%20Bills/1406-S.pdf
http://lawfilesext.leg.wa.gov/biennium/2019-
20/Pdf/Bill%20Reports/House/1406%20HBR%20FIN%2019.pdf
• SSB 5812, SHB 1797, bills to encourage(or require)allowance of Accessory Dwelling Units
(ADUs)in single-family zones: We have been actively participating in legislative discussions on
these bills by Sen. Guy Palumbo (D-Maltby/15t Dist.) and Rep. Mia Gregerson (D-SeaTac/33rd
Dist.). While initial versions of the legislation were very prescriptive, more recent versions are
either completely(1797)or mostly(5812) discretionary in nature. Renton already allows and
encourages ADUs and with the exception of an "owner-occupancy" prohibition in the Senate
bill,these pieces of legislation are largely workable for us. I've attached with this memo a copy
of the most recent 5812 legislative draft we have.
• 2SHB 1923, Encouraging cities to increase residential density and to take steps to increase
affordability of housing stock: Specific to your affordable housing discussion, and if you look at
the bottom of Page 2/top of Page 3 of the linked bill,you will see that by Dec. 31, 2022, if this
bill passes, cities would have to take at least one of the following three 'affordability' actions: a)
adopt 10 percent"inclusionary zoning"; b) provide surplus property to be used for affordable
housing; or c) enact a housing levy. The bill that passed House Appropriations is here:
https://app.leg.wa.gov/committeeschedules/Home/Document/198959#toolbar=0&navpa nes=0
EFFECT:
• Clarifies that any action taken by counties and cities to
comply with this act within UGA boundaries are not subject to
legal challenge under the GMA or SEPA.
• Modifies the requirement that local ordinances and development
regulations must allow for ADUs on all lots that contain a
single-family housing unit, duplex, or triplex to single-family
housing lots only with the allowance restricted to the first of
either an attached ADU or detached ADU.
• Subjects this requirement to any local regulations and
limitations as determined by the local legislative authority.
• Clarifies that ADUs may not be considered as contributing to
the underlying density with the UGA boundary of a county for
GMA compliance purposes .
• Removes the consideration of ADU size and the number of
plumbing fixtures when calculating the amount of an appropriate
connection fee or capacity charge if new or separate utility
connections are required.
• Removes the prohibition on the sale or conveyance of a condo
unit based on the grounds it was originally an ADU.
• Requires ADUs to be accessible to fire department apparatus by
way of public street or approved fire apparatus access .
• Modifies the off-street parking prohibition to ADUs within . 5
miles of a transit stop for fixed rail or for regular bus
service .
• Encourages local regulations to minimize their impact on ADU
construction costs .
• Encourages, instead of mandates, local regulations not to
establish setback regulations for ADUs more restrictive than
single-family housing unit regulations .
• Removes the prohibition on establishing tree retention
requirements for ADUs in addition to those for single-family
units .
• Authorizes local regulations to exempt designated historical
districts .
• Requires cities and counties to review impact fees to ensure
that impact fees on ADUs are commensurate with actual impact of
the ADU and are less than impact fees on single-family housing
units .
• Removes the requirement that cities and counties adopt
ordinances and regulations regarding minimum gross floor area
consistent with the act .
1 SSB 5812
AN ACT Relating to local governments planning and zoning for
accessory dwelling units; amending RCW 19 . 27 . 060, 82 . 02 . 060,
35 . 63 . 210, 35A. 63 . 230, 36 . 70 . 677, and 36 . 70A.400; adding a new
section to chapter 19 . 27 RCW; adding a new chapter to Title 36 RCW;
and repealing RCW 43 . 63A. 215 .
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. FINDINGS AND INTENT. (1) The legislature
makes the following findings :
(a) Washington state is experiencing a housing affordability
crisis . Many communities across the state are in need of more
housing options for renters .
(b) Accessory dwelling units typically rent below market rate,
providing additional affordable housing options for renters .
(c) Accessory dwelling units also help to provide housing for
very low-income households . More than ten percent of accessory
dwelling units in some areas are occupied by tenants who pay no rent
at all; among these tenants are grandparents, adult children, family
members with disabilities, and friends going through life
transitions . Accessory dwelling units meet the needs of these people
who might otherwise require subsidized housing space and resources
needed by other households .
(d) Homeowners who add an accessory dwelling unit to her or his
property may benefit from added income and an increased sense of
security.
(e) Accessory dwelling units can also benefit neighborhoods by
expanding rental options near public amenities such as schools,
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J
parks, and transit without changing the look and feel of existing
neighborhoods .
(f) Accessory dwelling units may reduce economic displacement in
existing communities by expanding the range of available housing
options and prices .
(g) Accessory dwelling units are a housing choice that provides
environmental benefits . They promote energy conservation compared
with average size single-family homes . In addition, the siting of
additional accessory dwelling units near transit hubs can help to
reduce greenhouse gas emissions .
(h) Removing certain regulatory barriers to the construction of
accessory dwelling units, such as inflexible design standards and
siting restrictions, may substantially reduce construction costs,
thereby enabling more homeowners to add accessory dwelling units to
their properties . The increased availability of accessory dwelling
units will provide benefits to homeowners, renters, the community,
and the environment .
(2) The legislature intends to promote and encourage the
creation of accessory dwelling units as a means to address the need
for additional affordable housing options . The legislature
encourages local governments to increase the availability of
affordable housing by subsidizing accessory dwelling units with
local sales tax revenue, as authorized by House Bill No. 1406 .
NEW SECTION. Sec. 2 . DEFINITIONS . The definitions in this
section apply throughout this chapter unless the context clearly
requires otherwise .
(1) "Accessory dwelling unit" means a dwelling unit located on
the same lot as a single-family housing unit, duplcx, triplcx,
townhomc, or othcr housing unit .
(2) "Attached accessory dwelling unit" means an accessory
dwelling unit located within or attached to a single-family housing
unit, duplcx, triplcx, townhomc, or othcr housing unit .
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(3) "Detached accessory dwelling unit" means an accessory
dwelling unit that consists partly or entirely of a building that is
separate and detached from a single-family housing unit, duplcx,
triplcx, townhomc, or othcr housing unit .
(4) "Dwelling unit" means a residential living unit that
provides complete independent living facilities for one or more
persons and that includes permanent provisions for living, sleeping,
eating, cooking, and sanitation.
(5) "Cities" means, except as provided in section 4 (2) of this
act, (a) all cities, code cities, and towns with a population of ten
thousand or more, and (b) all cities, code cities, and towns with a
population of at least two thousand five hundred but less than ten
thousand in which any portion of the city, code city, or town lies
within a transit service district .
(6) "Counties" means all counties with a population of fifteen
thousand or more .
(7) "Gross floor area" means the interior habitable area of a
dwelling unit including basements and attics but not including a
garage or accessory structure .
NEW SECTION. Sec. 3 . ACCESSORY DWELLING UNIT REGULATIONS
REQUIRED. (1) Cities and counties must adopt or amend by ordinance
and incorporate into their development regulations, zoning
regulations, and other official controls, an authorization for the
creation of accessory dwelling units that is consistent with this
chapter.
(2) Ordinances, development regulations, and other official
controls adopted or amended pursuant to this chapter may only apply
in the portions of towns, cities, and counties that are within
designated urban growth areas .
(3) Cities and counties must implement the requirements of this
chapter by June 1, 2021 . Any city or county that does not comply
with this subsection must consider any permit application it
receives under this chapter in accordance with this chapter unless
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it adopts its own ordinance, development regulation, or other
official control in accordance with this subsection within sixty
days after receipt of the application.
(4) Any county that takes action necessary to meet the
requirements of this chaptcr is held harmless from any appeals
brought Any action taken by a county or city to comply with the
requirements of this chapter within its urban growth area boundary
is not subject to legal challenge under chapter 36 . 70A or 43 . 21C
RCW.
NEW SECTION. Sec. 4 . GENERAL REGULATORY REQUIREMENTS. (1)
Ordinances, development regulations, and other official controls
adopted or amended as required by this chapter:
(a) (i) Except as provided in (a) (ii) of this subsection, Must
allow, on all lots located in single family residential zoning
districts and on all lots on which there is a single-family housing
unit, duplex, triplex, or townhomc, regardless of zoning district :
(A) the first of either one attached accessory dwelling unit and or
one detached accessory dwelling unit; or (B) two attached acccssory
dwc" �„� • nits . Cuch To allow local flexibility, the requirement
under this subsection (1) (a) is subject to such regulations,
conditions, procedures, and limitations as determined by the local
legislative authority except as provided in this section. Attached
or detached accessory dwelling units may not be considered as
contributing to the overall underlying density within the urban
growth area boundary of a county for purposes of compliance with
chapter 36 . 70A RCW;
(ii) Must allow one attached acccssory dwelling unit on ach lot
in a singlc family residcntial zoning district if : (A) The lot is
located in a jurisdiction whcrc cluster zoning or lot size averaging
has bccn adopted; and (B) the lot is undcr thrcc thousand square
fcct in size;
(b) May not impose a minimum lot size requirement for the siting
of accessory dwelling units;
5 SSB 5812
(c) May only require installation of a new or separate utility
connection between an attached accessory dwelling unit and a utility
after a finding that the site-specific technical, environmental, or
financial considerations warrant a separation of utility connections
for accessory dwelling units from preexisting structures;
(d) May not consider attached accessory dwelling units to be new
residential uses for the purpose of calculating connection fees or
capacity charges for utilities . Any connection fees or capacity
charges must (i) be proportionate to the burden of the proposed
accessory dwelling unit, baocd on ito size or number of plumbing
f;. co, upon the water or sewer system and (ii) not exceed the
reasonable cost of providing the service;
(e) May require a new or separate utility connection directly
between a detached accessory dwelling unit and a utility and may
subject the connection to a connection fee or capacity charge that
must : (i) Be proportionate to the burden of the proposed accessory
dwelling unit, baocd on ito oizc or numbcr of plumbing fixturco,
upon the water or sewer system; and (ii) not exceed the reasonable
cost of providing the service;
(f) May not prohibit thc oalc or other conveyance of a
condominium unit oolcly on thc groundo that thc unit wao originally
built aS an accc000ry dwelling unit; Must require an accessory
dwelling unit to be accessible to fire department apparatus by way
of a public street or approved fire apparatus access;
(g) May not count residents of accessory dwelling units against
any limits on the number of unrelated residents on a single-family
lot;
(h) May not establish a requirement for the provision of off-
street parking for accessory dwelling units within one-half mile of
a transit stop, park, School, hoopital, community ccntcr, or ar a
designated for commercial uoc, mixcd uoc, or multifamily houoing for
fixed rail or for bus service that is scheduled at least every
fifteen minutes for no less than ten hours per day. Except as
provided in this subsection (1) (h) , jurisdictions may require up to
6 SSB 5812
one additional off-street parking space per lot in which there is at
least one accessory dwelling unit; and
(i) May not count the gross floor area of an accessory dwelling
unit against any floor area ratio limitations that apply to single-
family housing units .
(2) Any city with a population of one hundred thousand or more
may not require the owner of a lot on which there is an accessory
dwelling unit to reside in or occupy the accessory dwelling unit or
another housing unit on the same lot .
NEW SECTION. Sec. 5 . DEVELOPMENT STANDARDS . (1) Ordinances,
development regulations, and other official controls adopted or
amended as required by this chapter are encouraged to minimize the
impact of these ordinances and regulations on the construction cost
of an accessory dwelling unit, and without adopted findings :
(a) Should not establish a roof height limitation on detached
accessory dwelling units that is less than twenty-four feet;
(b) Should not establish a wall height limitation on detached
accessory dwelling units that is less than seventeen feet;
(c) Should not establish a maximum gross floor area for
accessory dwelling units that is less than one thousand square feet;
(d) Should not establish a minimum gross floor area for
accessory dwelling units that is greater than one hundred forty
square feet; and
(e) May Should not establish setback regulations for accessory
dwelling units that are more restrictive than regulations for
single-family housing units; and
(f rot cotab- —t re retenti-enrequ remcnto €e
dwclling unit3 in addition to any trcc rctcntion rcquircmcnts for
3inglc family housing unit3 .
(2) Such ordinances, regulations, and controls may exempt
designated historical districts that are recognized as such under
local ordinance.
7 SSB 5812
(3) Cities are encouraged to allow detached accessory dwelling
units to be sited at the lot line of the rear yard if the rear yard
is adjacent to an alley.
NEW SECTION. Sec. 6 . IMPACT FEE REVIEW. Cities and counties
must review their impact fees to ensure that any impact fees imposed
for accessory dwelling units, in accordance with RCW 82 . 02 . 060 (9) ,
are commensurate with the actual impact of the accessory dwelling
unit and are less than impact fees imposed for single-family housing
units.
NEW SECTION. Sec. 7 . A new section is added to chapter 19 . 27
RCW to read as follows :
By April 1, 2020, the building code council shall adopt rules
pertaining to accessory dwelling units that are consistent with the
definitions and standards in chapter 36 . --- RCW (the new chapter
created in section 15 of this act) .
Scc. 8 . RCW 19.27 . 060 and 2018 c 302 3 2 arc each amcndcd to
read ao followo :
(1) The governing bodico of countico and citico may amcnd thc
codco cnumcratcd in RCW 19 . 27 . 031 ao amcndcd and adoptcd by thc
otatc building codc council ao they apply within their rcopective
juriod-ie e he-amendmcnto hall not-reo It ire a code—tha e
otandardo and objectiveo contained
in the otatc building code except ao provided in oubocction (2) of
thio ocction.
(a) Except ao provided in oubocction (2) of thio ocction, no
amcndmcnt to a code enumerated in RCW 19. 27 . 031 ao amcndcd and
adopted by the otatc building code council that affccto oinglc
€anvil-ei = - ems dent l b l o�, , , be of f e ive
unlcso the amcndmcnt io approved by the building code council under
RCW 19.27 . 074 (1) (b) .
8 SSB 5812
(b) Any county or city amcndmcnt to a codc enumcratcd in RCW
19. 27 . 031 which is approvcd under RCW 19. 27 . 074 (1) (b) shall continue
to be effective aftcr any action is taken under RCW 19 .27 . 074 (1) (a)
da b of reappre � nr+rT n n nZe 1 l E$`s the
cr—rcti rrrr�.�--v-i 7�rrrr
amcndmcnt is declared null and vd by the oouncil at the time any
action is taken undcr RCW 19 .27 . 074 (1) (a) because such action in any
way altcrcd thc impact of the amcndmcnt .
(2) (a) Except as providcd in (b) of this subsection, thc
legislative body of a county or city, in exercising thc authority
providcd undcr subsection (1) of this section to amcnd the codc
enumcratcd in RCW 19 . 27 . 031 (1) (b) , may adopt amendments that
eliminate any minimum gross floor ar a requirement for single family
detached dwellings or that provide a minimum gross floor ar a
requirement below the minimum performance standards and objectives
contained in the state building code .
(b) Cities and counties, as defined by section 2 of this act,
must adopt ordinances, development regulations, and other official
controls regarding the minimum gross floor area of accessory
dwelling units that arc consistent with chapter 36 . RCW (the new
chapter created in section 14 of this act) .
(3) Except as permitted or provided otherwise under this
section, the state building code shall be appli able to all
-1d n Js _^d-�s ketr� ceding- hose-owned by t e state or by
any governmental subdivision or unit of local government .
(4) The governing body of ach county or city may limit the
application of any portion of the state building code to exclude
f; e.� c es of-�uil tgs eruct u-_s accordi to
use other than single family or multifamily residential buildings .
However, in no event shall fruits or vegetables of the tree or vine
stored in buildings or warehouses constitute combustible stock for
the purposes of application of the uniform fire code. A governing
body of a county or city may inspect facilities used for temporary
-sew and p re ce g e --agec ,, t ,r , �emte ies .
9 SSB 5812
(5) No provision of thc uniform fir codcconcerning roadways
l- ll bc� e. +- fie 7..'�'Lilding e'e'de : PR VIT r1'I.Za}
subscction shall not limit thc authority of a county or city to
adopt--s-treet, oad,,—or ac-yes„ „t n,a r.,a
(6) The provisions of thc state building codc may be preempted
by any city or county to the extent that the code provisions
relating to the installation or use of sprinklers in jail cells
conflict with the secure and humane operation of jails .
(7) (a) Effective one year after July 23, 1989, the governing
bodies of counties and cities
alteration of either group R, division 3, or group M, division 1
occupancies, or both, as defined in the uniform building code, 1988
edition, for which the total cost of fair market value of the
construction or alteration does not exceed fifteen hundred dollars.
The—pe-rmi - Hemp-trees of otherwise exempt the construction or
alteration from the substantive standards of the codes enumerated in
RCW 19 . 27 . 031, as amended and maintained by the state building code
council under RCW 19 .27 . 070 .
(b) Prior to July 23, 1989, the state building code council
subsection.
Sec. 9 . RCW 82 . 02 . 060 and 2012 c 200 s 1 are each amended to
read as follows :
The local ordinance by which impact fees are imposed:
(1) Shall include a schedule of impact fees which shall be
adopted for each type of development activity that is subject to
impact fees, specifying the amount of the impact fee to be imposed
for each type of system improvement . The schedule shall be based
upon a formula or other method of calculating such impact fees . In
determining proportionate share, the formula or other method of
10 SSB 5812
calculating impact fees shall incorporate, among other things, the
following:
(a) The cost of public facilities necessitated by new
development;
(b) An adjustment to the cost of the public facilities for past
or future payments made or reasonably anticipated to be made by new
development to pay for particular system improvements in the form of
user fees, debt service payments, taxes, or other payments earmarked
for or proratable to the particular system improvement;
(c) The availability of other means of funding public facility
improvements;
(d) The cost of existing public facilities improvements; and
(e) The methods by which public facilities improvements were
financed;
(2) May provide an exemption for low-income housing, and other
development activities with broad public purposes, from these impact
fees, provided that the impact fees for such development activity
shall be paid from public funds other than impact fee accounts;
(3) May provide an exemption from impact fees for low-income
housing. Local governments that grant exemptions for low-income
housing under this subsection (3) may either: Grant a partial
exemption of not more than eighty percent of impact fees, in which
case there is no explicit requirement to pay the exempted portion of
the fee from public funds other than impact fee accounts; or provide
a full waiver, in which case the remaining percentage of the
exempted fee must be paid from public funds other than impact fee
accounts . An exemption for low-income housing granted under
subsection (2) of this section or this subsection (3) must be
conditioned upon requiring the developer to record a covenant that,
except as provided otherwise by this subsection, prohibits using the
property for any purpose other than for low-income housing. At a
minimum, the covenant must address price restrictions and household
income limits for the low-income housing, and that if the property
is converted to a use other than for low-income housing, the
11 SSB 5812
property owner must pay the applicable impact fees in effect at the
time of conversion. Covenants required by this subsection must be
recorded with the applicable county auditor or recording officer. A
local government granting an exemption under subsection (2) of this
section or this subsection (3) for low-income housing may not
collect revenue lost through granting an exemption by increasing
impact fees unrelated to the exemption. A school district who
receives school impact fees must approve any exemption under
subsection (2) of this section or this subsection (3) ;
(4) Shall provide a credit for the value of any dedication of
land for, improvement to, or new construction of any system
improvements provided by the developer, to facilities that are
identified in the capital facilities plan and that are required by
the county, city, or town as a condition of approving the
development activity;
(5) Shall allow the county, city, or town imposing the impact
fees to adjust the standard impact fee at the time the fee is
imposed to consider unusual circumstances in specific cases to
ensure that impact fees are imposed fairly;
(6) Shall include a provision for calculating the amount of the
fee to be imposed on a particular development that permits
consideration of studies and data submitted by the developer to
adjust the amount of the fee;
(7) Shall establish one or more reasonable service areas within
which it shall calculate and impose impact fees for various land use
categories per unit of development; and
(8) May provide for the imposition of an impact fee for system
improvement costs previously incurred by a county, city, or town to
the extent that new growth and development will be served by the
previously constructed improvements provided such fee shall not be
imposed to make up for any system improvement deficiencies .
(9) May provide an exemption from impact fees for accessory
dwelling units as defined in section 2 of this act, but may not
establish an impact fee amount for accessory dwelling units, as
12 SSB 5812
dcfincd in 3cction 2 of this act, within one-half mile of a transit
stop for fixed rail or for bus service that is scheduled at least
every fifteen minutes for no less than ten hours per day that is
greater than fifty percent of the amount set for single-family
residences .
For purposes of this section, "low-income housing" means housing
with a monthly housing expense, that is no greater than thirty
percent of eighty percent of the median family income adjusted for
family size, for the county where the project is located, as
reported by the United States department of housing and urban
development .
Sec. 10 . RCW 35 . 63 . 210 and 1993 c 478 s 8 are each amended to
read as follows :
Any ( (local govcrnmcnt) ) city or county, as defined in ( (RCW
43 . 63A. 215) ) section 2 of this act, that is planning under this
chapter shall comply with ( (RCW 43 . 63A. 215 (3) ) ) chapter 36 . --- RCW
(the new chapter created in section 15 of this act) .
Sec. 11. RCW 35A. 63 . 230 and 1993 c 478 s 9 are each amended to
read as follows :
Any ( (lo al govcrnmcnt) ) city or county, as defined in ( (
43 . 63A. 215) ) section 2 of this act, that is planning under this
chapter shall comply with ( (RCW 43 . 63A. 215 (3) ) ) chapter 36 . --- RCW
(the new chapter created in section 15 of this act) .
Sec. 12 . RCW 36 . 70 . 677 and 1993 c 478 s 10 are each amended to
read as follows :
Any ( (lo al govcrnmcnt) ) city or county, as defined in ( (RGW
43 . 63A. 215) ) section 2 of this act, that is planning under this
chapter shall comply with ( (RCW 43 . 63A. 215 (3) ) ) chapter 36 . --- RCW
(the new chapter created in section 15 of this act) .
13 SSB 5812
Sec. 13 . RCW 36 . 70A.400 and 1993 c 478 s 11 are each amended to
read as follows :
Any ( (local govcrnmcnt) ) city or county, as defined in ( (RCW
93 . G3A. 215) ) section 2 of this act, that is planning under this
chapter shall comply with ( (RCW 43 . 63A. 215 (3) ) ) chapter 36 . --- RCW
(the new chapter created in section 15 of this act) .
NEW SECTION. Sec. 14 . RCW 43 . 63A. 215 (Accessory apartments—
Development and placement—Local governments) and 1993 c 478 s 7 are
each repealed.
NEW SECTION. Sec. 15 . Sections 1 through 6 of this act
constitute a new chapter in Title 36 RCW.
--- END ---
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