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AGENDA
Planning & Development Committee Regular Meeting
4:30 PM - Monday, June 8, 2020
Council Conference Room, 7th Floor, City Hall – 1055 S. Grady Way
1. 2020 Comprehensive Plan Amendments
a) AB - 2648 Community & Economic Development Department submits the 2020
Comprehensive Plan Map Amendments and concurrent rezones for review. After review,
the Planning Commission will submit recommendations on the amendments and rezones
to Council.
2. State Sales Tax Credit for Affordable Housing
a) AB - 2650 Community & Economic Development Department recommends adopting an
ordinance authorizing collection of existing sales and use tax as authorized by SHB 1406,
to be used for affordable housing purposes.
b) Presentation
3. Docket #14
4. Docket #15
a) #D-169: Site Plan Review
b) #D-173: Waived Fees
c) #D-174: Mixed-Income Housing in the CV Zone
5. Emerging Issues in CED
AB - 2648
City Council Regular Meeting - 11 May 2020
SUBJECT/TITLE: 2020 Comprehensive Plan Amendments
RECOMMENDED ACTION: Refer to Planning Commission and Planning & Development
Committee
DEPARTMENT: Community & Economic Development Department
STAFF CONTACT: Angie Mathias, Long Range Planning Manager
EXT.: 6576
FISCAL IMPACT SUMMARY:
N/A
SUMMARY OF ACTION:
The City has received one application for Comprehensive Plan Map Amendments and concurrent rezones. This
application was submitted by the October 15, 2019 deadline. State law specifies that Comprehensive Plans can be
amended “no more frequently than once every year”. Additionally, staff wish to take the opportunity as part of this
Amendment cycle to advance three additional Map Amendments and concurrent rezones.
The review process and review criteria for Comprehensive Plan Amendments are codified in RMC 4-9-020,
Comprehensive Plan Adoptions and Amendment Process. RMC 4-8-070 and 2-10-2 states that at the direction or
referral by Council, the Planning Commission will review and submit recommendations to Council on amendments to
the Comprehensive Plan. Council has the decision making authority for amendments to the Comprehensive Plan.
EXHIBITS:
A. Issue Paper
STAFF RECOMMENDATION:
Refer to the Planning & Development Committee and Planning Commission for review. Following this review, the
Planning Commission will present recommendations to Council.
AGENDA ITEM #1. a)
H:\CED\Planning\Comp Plan\Amendments\2020\Referral Issue Paper.doc
DEPARTMENT OF COMMUNITY
AND ECONOMIC DEVELOPMENT
M E M O R A N D U M
DATE: May 11, 2020
TO: Ruth Perez, Council President
Members of the Renton City Council
VIA: Armondo Pavone, Mayor
FROM: C. E. “Chip” Vincent, CED Administrator (x6588)
SUBJECT: 2020 Comprehensive Plan Amendments
ISSUE:
Should the 2020 Comprehensive Plan amendments be referred to the Planning &
Development Committee and the Planning Commission for review?
RECOMMENDATION:
Refer the 2020 Comprehensive Plan amendments to the Planning and Development
Committee and Planning Commission for review.
BACKGROUND SUMMARY:
The City has received one application for Comprehensive Plan Map Amendments and
concurrent rezones. This application was submitted by the October 15, 2019 deadline.
State law specifies that Comprehensive Plans can be amended “no more frequently than
once every year”. Additionally, staff wish to take the opportunity as part of this
Amendment cycle to advance three additional Map Amendments and concurrent
rezones. Below is a brief summary of the application (vicinity maps attached) and the
staff amendments.
The review process and review criteria for Comprehensive Plan Amendments are
codified in RMC 4-9-020, Comprehensive Plan Adoptions and Amendment Process. RMC
4-8-070 and 2-10-2 states that at the direction or referral by Council, the Planning
Commission will review and submit recommendations to Council on amendments to the
Comprehensive Plan. Council has the decision making authority for amendments to the
Comprehensive Plan.
The proposed schedule for review of the Comprehensive Plan Amendments is for the
Planning Commission to begin in June 2020.
AGENDA ITEM #1. a)
Ruth Perez, Council President
Page 2 of 2
May 11, 2020
Private Party Initiated Requests
CPA 19-01 Benson: The owner of five lots, consisting of approximately four acres, has
requested a Comprehensive Plan Map Amendment and Rezone for a total of 18 lots
equaling approximately ten acres, at the intersection of SE Petrovitsky Road and 116th
Ave SE. The current Comprehensive Plan Land Use Designation is Residential Low-
Density and zoning is Residential-4. The applicant has requested a Comprehensive Plan
Land Use Designation of Residential Medium-Density and preferably Residential-8
zoning or, alternatively, Residential-6 zoning.
City Initiated Amendment
CPA 19-02 Car Pros: A parcel located at 900 SW Lind Ave is designated as
Comprehensive Plan Land Use Designation of Employment Area and zoned Medium
Industrial. The owner has requested a Designation of Commercial Mixed Use and
Commercial Arterial zoning, which is also applied to the eastern and southern abutting
lots. The owner also owns the southern abutting lot addressed as 200 SW Grady Way.
The owner intends to redevelop both properties as one mixed-use development project.
CPA 19-03 Zoning and Land Use Reconciliation: Staff have identified several
discrepancies related to land use designations and current zoning that need to be
reconciled. In most cases, zoning appears to be correct and the land use designation is
incorrect but, further review is needed. Other items for consideration: re-zone split
zoned parcels to eliminate split land use designations and re-zone parcels to be
consistent with surrounding parcels where appropriate.
CPA 19-04 North 30th Street: This area of the Kennydale community has several parcels
that are zoned Commercial Neighborhood (CN). Many parcels have split zoning with CN
and Residential-6. The regulations of the CN are difficult to work with for development
to be realized and the split zoning adds additional difficulty. The City would like to
explore potential amendments to the regulations for the Commercial Neighborhood
zone, as well as, a potential Land Use Designation change and rezone of some parcels.
AGENDA ITEM #1. a)
AGENDA ITEM #1. a)
AGENDA ITEM #1. a)
AGENDA ITEM #1. a)
AGENDA ITEM #1. a)
AB - 2650
City Council Regular Meeting - 01 Jun 2020
SUBJECT/TITLE: State Sales Tax Credit for Affordable Housing
RECOMMENDED ACTION: Refer to Planning & Development Committee
DEPARTMENT: Community & Economic Development Department
STAFF CONTACT: Mark Santos-Johnson, Community Development and Housing Manager
EXT.: 6584
FISCAL IMPACT SUMMARY:
The 2018 Department of Revenue (DOR) projection for Renton is $236,380 a year at the .0073 state sales tax
credit level. Actual revenue based on 2019 sales tax data.
SUMMARY OF ACTION:
Substitute House Bill 1406 (SHB 1406) was enacted during the 2019 legislative session and is structured as a
state sales tax credit of either .0073 percent or .0146 percent, available to all cities and counties. Cities and
counties must approve a Resolution of Intent and subsequent legislation (an Ordinance) to authorize a sales
and use tax, which is then credited against the existing state sales tax. Residents and businesses within Renton
would see no increase in the tax they pay. Council adopted a Resolution of Intent to authorize the state sales
and use tax credit on August 12, 2019 (RES 4386). To fully authorize the tax, Council must adopt authorizing
legislation by July 28th, 2020.
EXHIBITS:
A. Issue Paper
B. Ordinance
STAFF RECOMMENDATION: Staff recommends that Council adopt an ordinance to authorize the collection of the existing sales and use
tax as authorized by SHB 1406.
AGENDA ITEM #2. a)
DEPARTMENT OF COMMUNITY
& ECONOMIC DEVELOPMENT
M E M O R A N D U M
DATE:May 21st, 2020
TO:Ruth Perez, Council President
Members of Renton City Council
VIA:Armondo Pavone, Mayor
FROM:C.E. “Chip” Vincent, CED Administrator x6588
STAFF CONTACT:Mark Santos-Johnson, Community Development and Housing
Programs Manager x7262
SUBJECT:State Sales Tax Credit for Affordable Housing
ISSUE:
Should Council adopt legislation to authorize the collection of the existing state sales
and use tax to be used for affordable housing as authorized by SHB 1406?
RECOMMENDATION:
Staff recommends that Council adopt an ordinance to authorize the collection of the
existing sales and use tax as authorized by SHB 1406.
BACKGROUND:
Legislative Background
Substitute House Bill 1406 (SHB 1406) was enacted during the 2019 legislative session
and committed over $500 million in state investment over the next 20 years to local
governments for the construction of affordable and supportive housing units.
The legislation is structured as a state sales tax credit of either .0073 percent or .0146
percent, available to all cities and counties. Cities and counties must approve a
Resolution of Intent and subsequent legislation (an Ordinance) to authorize a sales and
use tax, which is then credited against the existing state sales tax. Residents and
businesses within Renton would see no increase in the tax they pay.
The sales tax credit is available to cities and counties for up to 20 years (Section 1(12))
and must be targeted toward assisting people with incomes at or below 60 percent of
the county’s area median income (AMI). It can be used toward acquiring, constructing,
or rehabilitating housing, as well as supporting the maintenance and operations costs of
AGENDA ITEM #2. a)
Ruth Perez, Council President
Page 2 of 3
May 21, 2020
new housing units. There is an annual reporting requirement regarding the use and
deployment of the state sales tax credits.
The legislation provides provisions allowing cities the authority to bond against future
revenue, provide grants and loans of revenue to housing authorities and other
nonprofits (Section 1(9)), and pool funds with other cities and/or public housing
authorities (Section 1(10)).
The rate of local collection (.0073 or .0146 percent) depends upon whether the local
jurisdiction has gained voter approval of a “qualifying local tax.”
The qualifying local tax must be one of the following:
(i) 10-year property tax levy, subject to voter approval, of up to .50/$1000,
under RCW 84.52.105;
(ii) 1/10th of 1 percent sales tax, subject to voter approval, under RCW
82.14.530;
(iii) Mental health and chemical dependency sales tax under RCW 82.14.460; or
(iv) 6-year excess property tax levy, subject to voter approval, under RCW
84.55.050.
An amendment to SHB 1406 (EHB 2797) was introduced and passed in the 2020
legislative session to extend the timeline to adopt a qualifying local tax to December 31,
2021. However, the bill was vetoed the governor in April due to concerns over potential
fiscal impacts. Therefore, the qualifying local tax deadline remains July 28, 2020 –
barring Special Session action by the Legislature.
City of Renton Context
The 2018 Department of Revenue (DOR) projection for Renton is $236,380 a year at the
.0073 state sales tax credit level. Importantly, under SHB 1406 and going forward, the
DOR projections for Renton and all other local governments are based on 2019 sales tax
data.
Council recognized the profound opportunity to address affordable housing needs in our
community through SHB 1406 by adopting a Resolution of Intent to authorize the state
sales and use tax credit on August 12, 2019 (RES 4386).
NEXT STEPS:
If it wishes to fully authorize the collection of the SHB 1406 states sales tax credit,
Council must adopt legislation (an Ordinance) to authorize the tax by July 28th, 2020.
Collection of funds begins immediately after authorization by ordinance.
AGENDA ITEM #2. a)
Ruth Perez, Council President
Page 3 of 3
May 21, 2020
The Council has expressed interest in collaborating with the other jurisdictions
participating in the South King Housing and Homelessness Partners (SKHHP) to “pool”
the funds and create a SKHHP capital fund to collectively address housing needs in
South King County. This legislative issue will be brought forth in the future for separate
Council action.
CONCLUSION:
Adopting legislation to authorize the collection of the state sales tax credit will impose
no tax increase on Renton residents and businesses and provide a significant and
consistent funding stream to address affordable housing needs.
cc: Bob Harrison, CAO
Jason Seth, City Clerk
Jan Hawn, ASD Administrator
Cliff Long, Economic Development Director
Hannah Bahnmiller, Housing Programs Manager
Doug Levy, Regional/State Federal Affairs and Special Projects Consultant
AGENDA ITEM #2. a)
1
CITY OF RENTON, WASHINGTON
ORDINANCE NO. ________
AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AUTHORIZING AN
ADDITIONAL SALES AND USE TAX FOR AFFORDABLE AND SUPPORTIVE HOUSING
IN ACCORDANCE WITH SUBSTITUTE HOUSE BILL 1406 (CHAPTER 338, LAWS OF
2019; RCW 82.14.540), AMENDING SECTIONS 5-10-1 AND 5-10-2 OF THE RENTON
MUNICIPAL CODE, PROVIDING FOR SEVERABILITY, AND ESTABLISHING AN
EFFECTIVE DATE.
WHEREAS, in the 2019 Regular Session, the Washington State Legislature approved, and
the Governor signed, Substitute House Bill 1406 (Chapter 338, Laws of 2019; codified as RCW
82.14.540) (“SHB 1406”); and
WHEREAS, SHB 1406 authorizes the governing body of a city or county to impose a local
sales and use tax for the acquisition, construction or rehabilitation of affordable housing or
facilities providing supportive housing and funding the operations and maintenance costs of new
units of affordable or supportive housing; and
WHEREAS, the tax will be credited against state sales taxes collected within the City and,
therefore, will not result in higher sales and use taxes within the City and will represent an
additional source of funding to address housing needs in the City; and
WHEREAS, the tax must be used to assist persons whose income is at or below sixty
percent of the City median income; and
WHEREAS, the City has determined that imposing the sales and use tax to address this
high-priority need will provide benefit to its citizens; and
WHEREAS, in order for a city or county to impose the tax, within six months of the
effective date of SHB 1406, or January 28, 2020, the governing body must adopt a resolution of
AGENDA ITEM #2. a)
ORDINANCE NO. ________
2
intent to authorize the maximum capacity of the tax, and within twelve months of the effective
date of SHB 1406, or July 28, 2020, must adopt legislation to authorize the maximum capacity of
the tax; and
WHEREAS, the City Council adopted Resolution 4386 on August 12, 2019 declaring its
intent to authorize the maximum capacity of the tax, which meets the statutory requirement to
adopt a resolution of intent within six months of the effective date of SHB 1406; and
WHEREAS, the City Council has determined that it is in the best interest of the City to
impose a local sales and use tax as authorized by SHB 1406 as set forth herein;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON DO
ORDAIN AS FOLLOWS:
SECTION I. All portions of the Renton Municipal Code in this ordinance not shown in
strikethrough and underline edits remain in effect and unchanged.
SECTION II. Sections 5-10-1 and 5-10-2 of the Renton Municipal Code are hereby
amended as set forth in Exhibit A incorporated by this reference as if fully set forth herein. All
other provisions in chapter 5-10 RMC remain in effect and unchanged.
SECTION III. If any section, subsection, sentence, clause, phrase or work of this
ordinance should be held to be invalid or unconstitutional by a court or competent jurisdiction,
such invalidity or unconstitutionality thereof shall not affect the constitutionality of any other
section, subsection, sentence, clause, phrase or word of this ordinance.
AGENDA ITEM #2. a)
ORDINANCE NO. ________
3
SECTION III. This ordinance shall be in full force and effect thirty (30) days after
publication of a summary of this ordinance in the City’s official newspaper. The summary shall
consist of this ordinance’s title.
PASSED BY THE CITY COUNCIL this _______ day of _________________, 2020.
Jason A. Seth, City Clerk
APPROVED BY THE MAYOR this _______ day of ___________________, 2020.
Armondo Pavone, Mayor
Approved as to form:
Shane Moloney, City Attorney
Date of Publication:
ORD:2106:5/7/2020
AGENDA ITEM #2. a)
ORDINANCE NO. ________
4
Exhibit A:
CHAPTER 10
SALES AND USE TAX
SECTION:
5-10-1: Imposition Of Sales Or Use Tax
5-10-2: Rate Of Tax Imposed
5-10-3: Administration And Collection Of Tax
5-10-4: Consent To Inspection Of Records
5-10-5: Authorizing Execution Of Contract For Administration
5-10-6: Penalties
5-10-7: Tax Applicable To Natural Gas Sales
5-10-1 IMPOSITION OF SALES OR USE TAX:
A. There is hereby imposed a sales or use tax, as the case may be, as authorized by
RCW 82.14.030(2), upon every taxable event, as defined in RCW 82.14.020, occurring within the
City. The tax shall be imposed upon and collected from those persons from whom the State
sales tax or use tax is collected pursuant to chapters 82.08 and 82.12 RCW.
B. There is hereby imposed an additional sales or use tax upon every taxable event, as defined
in RCW 82.14.020, occurring within the City, as authorized by RCW 82.14.540. Money collected
under this subsection must be used solely, as required by RCW 82.14.540 (or as may be
amended in the future), for the purpose of acquiring, rehabilitating, or constructing affordable
housing, which may include new units of affordable housing within an existing structure or
facilities providing supportive housing services under RCW 71.24.385, or funding the operations
and maintenance costs of new units of affordable or supportive housing. This additional sales or
use tax shall expire twenty (20) years after the date on which the tax is first imposed.
5-10-2 RATE OF TAX IMPOSED:
A. The rate of the tax imposed by Section Subsection 5-10-1.A of this Chapter shall be one-half
of one percent (0.5%) of the selling price or value of the article used, as the case may be;
provided, however, that during such period as there is in effect a sales tax or use tax imposed
by King County under section 17(2), chapter 49, Laws of 1982, First Extraordinary Session, at a
rate equal to or greater than the rate imposed by this Section, the County shall receive fifteen
percent (15%) of the tax imposed by Section Subsection 5-10-1.A; provided further, that during
such period as there is in effect a sales tax or use tax imposed by King County under section
17(2), chapter 49, Laws of 1982, First Extraordinary Session, at a rate which is less than the rate
imposed by this Section, the County shall receive from the tax imposed by Section Subsection 5-
AGENDA ITEM #2. a)
ORDINANCE NO. ________
5
10-1.A that amount of revenues equal to fifteen percent (15%) of the rate of the tax imposed by
the County under section 17(2), chapter 49, Laws of 1982, First Extraordinary Session.
B. The tax under RMC 5-10-1.B is assessed on the selling price in the case of a sales tax, or value
of the article used, in the case of a use tax. The rate of such tax imposed shall be the greater of
seventy-three ten-thousandths of one percent (0.0073%) or the maximum rate allowed under
RCW 82.14.540 (or as may be amended in the future).
5-10-3 ADMINISTRATION AND COLLECTION OF TAX:
The administration and collection of the tax imposed by this Chapter shall be in accordance
with the provisions of RCW 82.14.050.
5-10-4 CONSENT TO INSPECTION OF RECORDS:
The City hereby consents to the inspection of such records as are necessary to qualify the City
for inspection of records by the Department of Revenue.
5-10-5 AUTHORIZING EXECUTION OF CONTRACT FOR ADMINISTRATION:
The Mayor and Clerk are hereby authorized to enter into a contract with the Department of
Revenue for the administration of this tax.
5-10-6 PENALTIES:
Any seller who fails or refuses to collect the tax as required with the intent to violate the
provisions of this Section or to gain some advantage or benefit, either direct or indirect, and
any buyer who refuses to pay any tax due under this Chapter shall be guilty of a misdemeanor,
and upon conviction thereof shall be penalized in accordance with RMC 1-3-1.
5-10-7 TAX APPLICABLE TO NATURAL GAS SALES:
There is hereby imposed a sales or use tax upon the privilege of using natural gas or
manufactured gas as a consumer. This sales and use tax shall be applicable to all natural gas
used, including use of brokered natural gas.
AGENDA ITEM #2. a)
SHB 1406
Concerning the Authorization of the State Sales Tax Credit
for Affordable Housing
AGENDA ITEM #2. b)
Substitute House Bill 1406
•Enacted in 2019 as a 20-year credit against an existing state
sales tax
•Renton City Council passed a Resolution of Intent to authorize
the state sales tax credit on August 12, 2019
•Deadline to adopt an authorizing ordinance is July 28th, 2020
AGENDA ITEM #2. b)
Usage of Funds
•City collection rates are $236,380 a year or $4,727,600 over
twenty years*
•Funds must be targeted towards assisting people with
incomes at or below 60% AMI
•Funds may be used for acquisition, construction, or
rehabilitation of housing, as well as supporting the
maintenance and operations costs of new housing units
*Based on 2018 estimates; actual revenue is based on 2019 collections AGENDA ITEM #2. b)
Policy Issues
1.Authorization: Should Renton adopt an ordinance to
authorize the collection of the .0073% base state sales tax
credit?
2.Pooling: Should Renton commit to pool the base state sales
tax credit with SKHHP member cities?AGENDA ITEM #2. b)
Issue #1: Authorization
•An ordinance is required to authorize the collection of the tax
and amend Renton Municipal Code
•Collection of the sales tax credit begins immediately after
authorization
Staff recommends adopting the ordinance as soon as possible,
so the City may begin collecting funds immediately.AGENDA ITEM #2. b)
Issue #2: Pooling
•Renton joined SKHHP in May 2019
•SKHHP Executive Board has urged member cities to pool SHB 1406
funds; six of nine member cities have passed pooling resolutions
•Renton City Council has expressed support for pooling 2020 funds
to SKHHP but wants to revisit the future use of SHB 1406 funds
next year
Staff plans to come back at a later time with a resolution for
pooling after further direction from SKHHP Executive Board and
staff workgroup.AGENDA ITEM #2. b)
Questions?
Hannah Bahnmiller
hbahnmiller@rentonwa.gov
AGENDA ITEM #2. b)
Page 1 of 2
CITY OF RENTON
Community and Economic Development Department
#D-169: Site Plan Review
Staff: Paul Hintz, Senior Planner
Date: May 20, 2020
Applicant or Requestor: Staff
GENERAL DESCRIPTION
Staff propose to amend the threshold criteria used to distinguish a minor Site Plan modification from a
major modification. Specifically, staff propose consideration of not only increases to the scale or area of
an approved Site Plan, but also decreases. In addition to increases or decreases of the scale or area, staff
propose considering other measurable elements of a development (e.g., building height, density,
commercial area, public or private open space, parking spaces, etc.), and substantial changes to “key
features” (a new term to be defined).
BACKGROUND
Site Plan Review is a process used to analyze the detailed arrangement of project elements to mitigate
negative impacts, where necessary, to ensure project compatibility with the physical characteristics of a
site and the surrounding area. Elements include, but not limited to, site layout, building orientation and
design, pedestrian and vehicular environment, landscaping, natural features of the site, screening and
buffering, parking and loading facilities, and illumination to ensure compatibility with potential future
development and consistency with City goals and policies.
STAFF RECOMMENDATION
Because a minor modification of an approved Site Plan does not allow the public any opportunity to
comment on the proposed changes, it is important that requests for Site Plan modifications consider all
changes that may have an adverse or unwanted effect on surrounding properties, the neighborhood, or
the community at large. To this end, staff propose that minor Site Plan modifications be limited to a 10%
increase or decrease of any measurable element of a development including, but not limited to, area,
scale, building height, density, commercial area, amenities, public or private open space, landscaping,
parking spaces, and building materials (e.g., glazing).
Additionally, staff propose that substantial changes to a “key feature” be another criterion against which
the code distinguishes a minor from a major Site Plan modification. Staff propose to consider “key
features” to be prominent architectural elements, environmental amenities (e.g., creek crossing, retained
tree stands), and prominent site features (e.g., promenades or site entries), or the relocation of such key
feature to a different part of the site.
AGENDA ITEM #4. a)
#D-169 Page 2 of 2 May 20, 2020
IMPACT ANALYSIS
Effect on rate of growth, development, and conversion of land as envisioned in the Plan
There are no anticipated effects.
Effect on the City’s capacity to provide adequate public facilities
There are no anticipated effects.
Effect on the rate of population and employment growth
There are no anticipated effects.
Whether Plan objectives are being met as specified or remain valid and desirable
Plan objectives are being met as specified or remain valid and desirable.
Effect on general land values or housing costs
There are no anticipated effects.
Whether capital improvements or expenditures are being made or completed as expected
Capital improvements or expenditures are being made or completed as expected.
Consistency with GMA and Countywide Planning Policies
Proposed amendments have no bearing on the GMA and Countywide Planning Policies.
Effect on critical areas and natural resource lands
There are no anticipated effects.
AGENDA ITEM #4. a)
Page 1 of 2
CITY OF RENTON
Community and Economic Development Department
#D-173: Waived Fees
Staff: Paul Hintz, Senior Planner
Date: May 20, 2020
Applicant or Requestor: Staff
GENERAL DESCRIPTION
Renton Municipal Code (RMC) allows the City to waive impact and permit fees for affordable housing
projects. State law caps the total amount of impact fees cities may waive at 80% of the assessed amount.
If a city elects to waive more than 80% the excess amount must be deposited into the applicable impact
fee accounts from public funds other than impact fee accounts, such as the general fund, so staff propose
to limit the amount that may be waived to 80% of all applicable impact fees.
Staff also propose to cap the number of eligible units at 100 before reducing eligible units to five of every
ten units thereafter, and allowing the City Council to consider additional information by which a request
may be approved, partially approved, or denied.
BACKGROUND
The City allows the following fees to be waived:
Building permit fees;
Building permit plan review fees;
Water, surface water, and wastewater system development charges;
Public Works plan review and inspection fees;
Transportation and parks impact mitigation fees;
Fire impact mitigation fees (if approved by the Renton Regional Fire Authority);
Civil plan review and inspection fees; and
Technology surcharge fees.
Most of the fees are intended to cover the administrative costs of reviewing plans or operational costs for
utility systems. The City collects parks and transportation impact fees for City projects, and collects school
and fire impact fees for the various school districts in Renton (Renton, Issaquah, and Kent) and the Renton
Regional Fire Authority respectively. The purpose of impact fees is to provide a financing tool for
developing system improvements that will serve new development.
The City’s waived fees program started in 2001 and was originally only available for projects in the
downtown, but was expanded to the Sunset area in 2011. To date, five projects that received fee waivers
have been completed that together created 163 dwelling units, 87 of which are fee-simple condominiums
(for-sale units) in downtown. One more project, Willowcrest Townhomes, is currently under construction
and will yield 12 for-sale townhouses in the Sunset Area. There have been two projects built so far that
each created 50 dwelling units, which is the most units in any project to date. There is no limit on the
number of units, and therefore the amount of fees, that may be waived.
AGENDA ITEM #4. b)
#D-173 Page 2 of 2 May 20, 2020
RCW 82.02.060 requires local governments that grant exemptions for low-income housing may either
grant a partial exemption of not more than 80% of impact fees, or provide a full waiver, in which case the
remaining percentage of the exempted fees must be paid from public funds other than impact fee
accounts.
STAFF RECOMMENDATION
Because granting a full (100%) waiver for impact fees requires money from the general fund – which is
supported by taxes that pay for existing services and programs – to be withdrawn, staff is proposing to
limit the amount that may be waived to 80% of all applicable impact fees.
Additionally, municipalities have a responsibility to be financially solvent and the cost of absorbing fees
for large residential projects (deemed more than 100 units) can be substantial. Therefore, staff propose a
cap of 100 eligible units before reducing eligible units to five of every ten units thereafter, and allowing
the City Council to consider the following in order to determine if a project should be approved, partially
approved, or denied:
the public benefit of the specific project;
the impacts of the project on public facilities and services; and
the consistency of the project with adopted City plans and policies relating to affordable housing.
IMPACT ANALYSIS
Effect on rate of growth, development, and conversion of land as envisioned in the Plan
There are no significant anticipated effects.
Effect on the City’s capacity to provide adequate public facilities
There are no significant anticipated effects.
Effect on the rate of population and employment growth
There are no significant anticipated effects.
Whether Plan objectives are being met as specified or remain valid and desirable
Plan objectives remain valid and desirable.
Effect on general land values or housing costs
There are no significant anticipated effects.
Whether capital improvements or expenditures are being made or completed as expected
Capital improvements or expenditures are being made or completed as expected.
Consistency with GMA and Countywide Planning Policies
Proposed amendments have no bearing on the GMA and Countywide Planning Policies.
Effect on critical areas and natural resource lands
There are no anticipated effects.
AGENDA ITEM #4. b)
Page 1 of 4
CITY OF RENTON
Community and Economic Development Department
#D-174: Mixed-Income Housing in the CV Zone
Staff: Paul Hintz, Senior Planner
Date: May 20, 2020
Applicant or Requestor: Staff
GENERAL DESCRIPTION
For more than a decade, the City of Renton has been coordinating strategic and significant public and
philanthropic investments in the Sunset Area, which is located in the Renton Highlands. The goal of these
investments is to improve the area’s livability and attract high-quality private development by
demonstrating a commitment to improving or creating amenities, services, infrastructure, and a mix of
affordable and market-rate housing for existing and future residents. New sizeable residential projects,
deemed more than 100 dwellings, have the potential to make contributions that are more meaningful to
this goal if they also embody the City’s strategy of providing mixed-income housing. Staff propose to
amend development regulations for the Center Village (CV) zone, which is located solely within the Sunset
Area, in order to require some market-rate housing for development wherein more than 100 income-
restricted rental units or more than 200 income-restricted ownership units will be built.
BACKGROUND
The Sunset Area (orange-shaded area shown on the
right) is a 269-acre neighborhood with over 3,500
residents, located in the City of Renton. The area is home
to the former 100-unit Sunset Terrace distressed public
housing project and hundreds of duplexes that were built
for World War II defense workers. In the Sunset Area,
43% of households are more than two times below the
poverty rate (compared to all of Renton at 25%), and the
household median income is 23% lower than the whole
of the City. The area also has twice the City’s average for
violent crime and domestic violence.
The Sunset Area of the Highlands has been a focus of the
City since 2000 and has been a special planning and
revitalization area for more than ten years. In 2005, the
City hired a consultant to analyze the economics of revitalization of the Highlands neighborhood. The
recommendations suggested that commercial improvements would not be viable without improvements
in the surrounding neighborhood. Over the next three years, the City convened two community Task
Forces, one on zoning and land use and one on neighborhood issues, which led to zoning and land use
changes adopted in 2007 to increase density and investment opportunities in Sunset.
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In 2010-2011, the Sunset Area Community Revitalization program was created with a number of planned
public infrastructure and facility improvements to catalyze private property development and create
opportunities for new market-rate housing, affordable housing, and retail investment.
In 2014, the City and Renton Housing Authority completed a Renton Community Needs Assessment with
a special addendum focused on the Sunset Area. The City and Renton Housing Authority were joined by
Neighborhood House and other community partners to use the Sunset Area Community Needs
Assessment as the framework for planning additional neighborhood improvements and supportive
services to better respond to resident and business needs in the Sunset Area.
Building on previous work, the Sunset Area Transformation Plan was developed using the U.S. Department
of Housing and Urban Development (HUD) Choice Neighborhoods Implementation (CNI) model whereby
a struggling neighborhood with a distressed public housing project is transformed through comprehensive
strategies designed to address housing, people, and neighborhood needs. Since the late 90’s, HUD has
provided support for public housing authorities to de-concentrate traditional public housing in favor of
the development of mixed-income housing.
The term, mixed-income housing, refers to developments that include below-market-price
housing units that are affordable to very low- and low-income households along with
housing that is market-priced. At a larger geographic scale, mixed-income communities or
neighborhoods are distinct geographic areas where there is housing affordable to people
with a range of incomes. The goals of mixed-income housing strategies are to reduce
poverty among low-income families, facilitate income and racial integration and
contribute to urban revitalization. Fostering the development of communities that include
housing affordable to households all along the income spectrum is important for
promoting economic and racial integration across the region and expanding opportunities
for low-income individuals and families.1
In many areas of the United States, housing for the poor is stereotyped and is defined by
hypersegregation and concentration of poverty. Mixed-income housing is one solution to
combat concentrated poverty. Economic benefits are the clearest successes of mixed-
income housing. Mixed-income housing attracts higher income families, spurring a
deconcentration of poverty, particularly in larger areas. Communities that have mixed-
income housing also tend to be more economically stable than communities that focus
solely on low-income housing. Benefits of mixed-income housing have been found across
all income levels. Lower-income residents in particular report benefits in mental health,
employment, and educational opportunities in some cases.2
1 The Promise—and Realities?—of Mixed-Income Communities. Housing Association of Nonprofit Developers (HAND)
April 1, 2016 By Lisa Sturtevant, PhD. Sourced, from https://www.handhousing.org/the-promise-and-realities-of-mixed-income-communities/
2The Institute for Public Policy & Economic Development (2017). Mixed-Income Housing. Sourced, from http://www.nepahousing.org/wp-
content/uploads/2017/07/Mixed-Income-Toolkit_The-Institute.pdf
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Low-income families have realized benefits from living in mixed-income developments and
income-diverse neighborhoods. Benefits are associated with improvements in place rather
than interactions with people. Documented benefits for low-income families from living in
mixed-income developments and income-diverse areas include those related to place,
such as improved housing quality, increased safety, and improved property management,
and improved mental health from a reduction in stress.3
In 2015 and 2016, Renton and partners applied to HUD for a $25 million to $30 million CNI grant for
implementation of the Sunset Area Transformation Plan. The CNI funds would have helped provide more
affordable and market-rate housing, improve existing housing quality, create neighborhood
improvements, and provide wrap-around community services. Although the Sunset Area Transformation
Plan was selected as a finalist in 2015, the plan did not receive CNI funding in the national competition in
either 2015 or 2016. Rather than give up, the principal partners agreed to work with the other community
and regional partners to continue with the implementation of the plan over time as resources and funding
became available. Many of the key project of the plan have been completed or are underway, including
the new Renton Highlands Library, the new Sunset Neighborhood Park, the realignment of Sunset Lane,
the Sunset Terrace Regional Stormwater Facility, and stormwater improvements through streetscape
green connections.
The City of Renton and its partners have invested a substantial amount of funds to improve the area’s
livability and entice high-quality private development by demonstrating a commitment to improving or
creating amenities, services, infrastructure, and a mix of affordable and market-rate housing for existing
and future residents. The City of Renton alone has invested approximately $40,000,000 into the Sunset
Area since 2012.
The Sunset Area Transformation Plan’s Housing Strategy began with a vision of transforming the Sunset
neighborhood by replacing the former distressed 100-unit Sunset Terrace public housing project with
high-quality mixed-income units. So far, three replacement housing projects have been completed:
Glenwood Townhomes, Kirkland Townhomes, and the Sunset Court Apartments; additional housing
projects are planned around the Sunset Terrace site to include a combination of new and rehabilitated
low-income and market-rate units. The Renton Housing Authority has successfully concentrated efforts in
the Sunset Area and currently has 358 housing units reserved for households earning 80% or less of the
area median income, another 72 being developed, and the potential for up to 300 more.
3Urban Institute Research Report: Effects from Living in Mixed-Income Communities for Low-Income Families, A Review of the Literature. Diane
K. Levy Zachary J. McDade Kassie Dumlao Bertumen. January 28, 2011. Sourced from, https://www.urban.org/research/publication/effects-
living-mixed-income-communities-low-income-families/view/full_report
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STAFF RECOMMENDATION
The Comprehensive Plan describes the CV zone’s policy, in part, as “intended to revitalize an area, creating
a vibrant urban center,” and Renton Municipal Code (RMC) describes its purpose as the promotion of
commercial and retail development opportunities for residents to shop locally, and allow complementary
high-density residential development. The CV zone is the only commercial zone within the Sunset Area
and presents the greatest opportunities to provide housing that will further the vision of the area as being
a revitalized vibrant shopping and services neighborhood for the local population by serving a wide range
of incomes and lifestyles.
Mixed-income housing is not only necessary to fulfill the CV zone’s policy intent and purpose, it is also a
key strategy of the Sunset Area Transformation Plan to meeting the City’s goal of improving the area’s
livability and attracting the same quality of development seen elsewhere in the City. Therefore, staff
recommends amending RMC to require that any site or adjoining lots in the CV zone be limited to:
100 dwelling units for rent/lease with income restrictions, provided that an additional 10 such
units may be created for every 20 market-rate dwelling units (i.e., if 20 market-rate units are
created, 10 more income-restricted units may be created); or
200 dwelling units for fee-simple dwelling units (for-sale housing) with income restrictions
provided that an additional 10 such units may be created for every 20 market-rate dwelling units.
Furthermore, staff recommends requiring the floor area, number of bedrooms and bathrooms of market-
rate units have no substantial difference as compared to the varying sizes and number of bedrooms and
bathrooms for income-restricted units.
IMPACT ANALYSIS
Effect on rate of growth, development, and conversion of land as envisioned in the Plan
There are no significant effects anticipated.
Effect on the City’s capacity to provide adequate public facilities
There are no significant effects anticipated.
Effect on the rate of population and employment growth
There are no significant effects anticipated.
Whether Plan objectives are being met as specified or remain valid and desirable
Plan objectives remain valid and desirable.
Effect on general land values or housing costs
There are no significant effects anticipated.
Whether capital improvements or expenditures are being made or completed as expected
Capital improvements or expenditures are being made or completed as expected.
Consistency with GMA and Countywide Planning Policies
Proposed amendments have no bearing on the GMA and Countywide Planning Policies.
Effect on critical areas and natural resource lands
There are no anticipated effects.
AGENDA ITEM #4. c)