The URL can be used to link to this page

Home My WebLink AboutAgenda AGENDA Planning & Development Committee Regular Meeting 5:00 PM - Monday, November 9, 2020 Video-conference 1. ADU Fee Schedule Resolution a) AB - 2750 Community & Economic Development Department recommends extending the sunset date for reduced ADU (Accessory Dwelling Units) fees to December 31, 2022, and adding these changes to the 2021/2022 Fee Schedule. 2. Emerging Issues in CED - ADU Designs and Process Currently, due to the spread of COVID-19, all regularly-scheduled committee meetings will be held as necessary via video-conference. City hall is closed to the public. If you would like to attend this week's meeting remotely, you can do so by going to https://us02web.zoom.us/j/89456364071 Zoom Meeting ID 894 5636 4071 Passcode 816175 You can call through Zoom at 253.215.8782 and use the Meeting ID AB - 2750 City Council Regular Meeting - 02 Nov 2020 SUBJECT/TITLE: Accessory Dwelling Unit (ADU) Fees RECOMMENDED ACTION: Refer to Planning & Development Committee DEPARTMENT: Community & Economic Development Department STAFF CONTACT: C. E. "Chip" Vincent, CED Administrator EXT.: 6588 FISCAL IMPACT SUMMARY: N/A SUMMARY OF ACTION: In October 2017, the City adopted reduced fees applicable to ADUs, with the exception of fire and school impact fees, in order to encourage this type of moderately affordable housing. The fees were reduced by 50% and waived for the third ADU created within a new subdivision. When the reduced fees were scheduled to sunset December 31, 2018, City Council voted to extend the reduced fees until December 31, 2020. In total, six ADUs have been built since the reduced fees were adopted in 2017. Staff proposes to further incentivize ADU development by waiving ADU fees and extending the sunset date for these fee reductions/waivers to December 31, 2022. EXHIBITS: A. Issue Paper STAFF RECOMMENDATION: Staff recommends extending the sunset date for reduced ADU fees to December 31, 2022, applying a temporary fee reduction of fifty-percent (50%) for the use of public works facilities, which include system development charges, and full waiver of fees related to building permits and impact fees for transportations, parks, fire, and schools, applicable to all new ADUs within the City. AGENDA ITEM #1. a) DEPARTMENT OF COMMUNITY & ECONOMIC DEVELOPMENT M E M O R A N D U M DATE:November 2, 2020 TO:Ruth Pérez, Council President Members of Renton City Council VIA:Armondo Pavone, Mayor FROM:C. E. “Chip” Vincent, CED Administrator STAFF CONTACT:C. E. “Chip” Vincent, CED Administrator SUBJECT:Accessory Dwelling Unit (ADU) Fees ISSUE: Should Council approve a resolution to the City of Renton Fee Schedule to extend the sunset date for reduced Accessory Dwelling Unit (ADU) fees and further reduce the amount imposed on ADU development? RECOMMENDATION: Staff recommends extending the sunset date for reduced ADU fees to December 31, 2022, applying a temporary fee reduction of fifty-percent (50%) for the use of public works facilities, which include system development charges, and full waiver of fees related to building permits and impact fees for transportations, parks, fire, and schools, applicable to all new ADUs within the City. BACKGROUND SUMMARY: In October 2017, the City adopted reduced fees applicable to ADUs, with the exception of fire and school impact fees, in order to encourage this type of moderately affordable housing. The fees were reduced by 50% and waived for the third ADU created within a new subdivision. When the reduced fees were scheduled to sunset December 31, 2018, City Council voted to extend the reduced fees until December 31, 2020. In total, six ADUs have been built since the reduced fees were adopted in 2017. Staff proposes to further incentivize ADU development by waiving ADU fees and extending the sunset date for these fee reductions/waivers to December 31, 2022. As a city located in King County, Renton is required to comply with the provisions of the Growth Management Act (GMA), which includes development and adoption of a 20- year comprehensive plan to help manage local growth. Comprehensive plans must include a section for each of the GMA’s 13 planning elements, which range from urban growth and economic development to sprawl reduction and housing. AGENDA ITEM #1. a) Ruth Perez, Council President Page 2 of 3 November 2, 2020 The basis for the GMA’s housing element is to increase housing supply. State legislation requires jurisdictions to establish development regulations that encourage the availability of affordable housing to all economic segments of the population of this state, promote a variety of residential densities and housing types, and encourages preservation of existing housing stock (RCW 36.70A.020). To that end, local jurisdictions are utilizing Accessory Dwelling Units or “ADUs” to create affordable housing opportunities, increase housing inventory and diversity while maintaining the character of single-family neighborhoods. The term ADU refers to a small, self-contained dwelling located on the same lot as a single-family dwelling. Independent from the primary residence, ADUs provide the same basic functions of a typical single-family residence; complete with a kitchen, sleeping area, and bathroom facilities, but are designed to be smaller or “accessory” to the primary residence. The definition of an ADU may vary depending on the regulations adopted by the local jurisdiction; Renton Municipal Code defines an ADU as “An independent subordinate dwelling unit that is located on the same lot, but not within a single family dwelling.” Encouraged by affordable housing and environmental advocates, high land costs, changing social norms, and an aging population, interest in ADU development has surged. Communities experiencing significant growth, lack of affordable housing and limited housing stock have identified ADUs as one way to control sprawl and create affordable housing opportunities while increasing and diversifying housing inventory. A 2017 study of ADUs in the Cascadia region indicated that a majority of units rent for below market rate, and thus may be considered a form of affordable housing, or at the very least utilized as a form of low-cost market-rate housing for households earning less than the area median income (Jumpstarting the Market for Accessory Dwelling Units: Lessons Learned from Portland, Seattle and Vancouver, 2019). Compared to new single-family residential development, ADU construction on lots with an existing single-family home is more cost effective because it eliminates the need to acquire and improve land. For residential property owners, ADU construction allows them to provide housing for adult children or aging parents. Alternatively, property owners may utilize the ADU to generate supplemental income by renting the unit to a tenant. Finally, ADUs provide the opportunity for older adults to downsize while “aging in place.” In these circumstances, the property owner might rent the primary residence to a tenant and reside in the accessory structure. The City of Renton adopted its first ADU development regulations in 2009. In an effort to incentivize ADU construction, City Council adopted a 2017 resolution to the City of Renton Fee Schedule that reduced the following fees by half (50%): transportation and parks impact fees, utility system development charges and land use review and building AGENDA ITEM #1. a) Ruth Perez, Council President Page 3 of 3 November 2, 2020 fees. The duration of the reduced rate was intended to last one year and was later extended an additional year, scheduled to expire December 31, 2020. Despite these efforts and increasing interest from residential property owners, the number of legally established ADUs remained in the single digits. In 2019, staff completed a comprehensive review of its ADU regulations with the intent of streamlining the application process and reducing barriers to ADU development. The newly updated ADU ordinance went into effect January 1, 2020. Over the past several months, City staff has worked with an architect to develop predesigned and pre-engineered ADU base plans that meet the City’s design and development regulations. The base plans will be available to residential property owners within the City’s jurisdictional boundary through the City’s forthcoming ADU program at either no cost or for a nominal fee. The intent is to subsidize the design and engineering phase of ADU development so that property owners can apply the savings to construction costs. To further promote ADU development and the success of the preapproved ADU program, staff proposes to extend the fee reduction of 50% for the use of public works facilities, which include system development charges and full waiver of ADU fees related to building permit and impact fees for transportation, parks, fire, and schools; applicable to all new ADUs within the City for a period sunsetting on December 31, 2022. AGENDA ITEM #1. a)