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Home My WebLink AboutCommittee of the Whole - 25 Apr 2022 - Agenda - Pdf CITY OF RENTON AGENDA - Committee of the Whole Meeting 5:30 PM - Monday, April 25, 2022 Videoconference 1. AFFORDABLE HOUSING UPDATE a) Presentation 2. EXECUTIVE SESSION, immediately following the adjournment of Committee of the Whole a) To discuss potential litigation pursuant to RCW 42.30.110.(1)(i) for approximately 30 minutes. 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/86753290028?pwd=M2pOc09HWWNrY05uVnlIWnpGS1E4UT09 Zoom Meeting ID: 867 5329 0028, Passcode: 881839 You can call through Zoom at (253) 215-8782 and use the Meeting ID. EHHS Affordable Housing Update Hannah Bahnmiller Housing Programs Manager & Mark Santos-Johnson Community Development and Housing Manager 1 AGENDA ITEM #1. a) Outline 2 Meeting the Needs Renton’s Housing Needs Housing Action Plan Affordable Housing Partnerships Next Steps Funding & Beyond AGENDA ITEM #1. a) 3 Renton Housing Needs AGENDA ITEM #1. a) Household Income Lowest Highest Area Median Income (2021)50% of Households 50% of Households Area = King County $115,700 AGENDA ITEM #1. a) 80% -100% AMI Moderate Income 50% -80% AMI Low Income 30% -50% AMI Very Low Income 30% or less of AMI Extremely Low Income 1 person 2 person 3 person 4 person up to $24,300 $40,500 $64,800 $81,000 $27,800 $46,300 $74,050 $92,563 $31,250 $52,100 $83,300 $104,125 $34,700 $57,850 $92,550 $115,688 Engineer $109,290 Dental Hygienist $95,860 Architect $81,030 100% AMI (2021) $115,700 EMT $76,490 Middle School Teacher $67,490 Drywall Installer $62,080 Admin Assistant $46,910 Bartender $40,440 Restaurant Cook $33,760 Personal Care Aide $30,610 Food Prep $25,640 HUD 20215AGENDA ITEM #1. a) Affordability by Income & Unit Size AMI Studio 1-bed 2-bed 30%$607 $651 $781 50%$1012 $1085 $1302 80%$1620 $1735 $2082 Based on 2021 HOME Program Rent Limits Assumes 1.5 person/bedroom AGENDA ITEM #1. a) = 250 households >100% AMI of Renton households49% 80–100% 12%14% 50–80% 12% 30–50% 12% 0–30% Household Incomes AGENDA ITEM #1. a) … and about 48% of Renton’s households rent their homes. About 52% of Renton’s households own their homes... >100% AMI80–100%50–80%30–50%0–30% = 250 households of Renton households49%12%14%12%12%AGENDA ITEM #1. a) About 35% of all Renton’s households are experiencing a housing cost burden. have high housing costs (housing >30% income) >100% AMI80–100%50–80%30–50%0–30% = 250 households OwnersRenters8%35%53%77%84%AGENDA ITEM #1. a) About 15% of all Renton’s households are experiencing a severe housing cost burden. = 250 households >100% AMI80–100%50–80%30–50%0–30%OwnersRentershave severe housing costs (housing >50% income)0%4%11 %36%72%AGENDA ITEM #1. a) Continuing Gaps 11 0-30% AMI 30-50% AMI 50-80% AMI >80% AMI HOUSING STOCK*4%17%24%47% HOUSEHOLDS**12%12%14%61% *Figures obtained from the 2021 King County Countywide Planning Policies Housing Element Appendix **Figures obtained from HUD CHAS 2014-2018 0% 10% 20% 30% 40% 50% 60% 70% 0-30% AMI 30-50% AMI 50-80% AMI >80% AMI Affordability of Housing Stock Relative to Household Income Housing Stock Available Households AGENDA ITEM #1. a) 96% Subsidized Housing Stock 30% LIH 35% LIH 40% LIH 50%LIH 60%LIH Unsubsidized Stock 4% Continuing Gaps 12 *Figures obtained from the 2019 South King County Subregional Framework AGENDA ITEM #1. a) Continuing Gaps 13 0-30% AMI 30-50% AMI 50-80% AMI >80% AMI HOUSING STOCK*4%17%24%47% SUBSIDIZED HOUSING STOCK** <0.5%<1%3%NA 2012 CPP GOAL 12%12%16%60% *Figures obtained from the 2021 King County Countywide Planning Policies Housing Element Appendix **Figures obtained from the 2019 South King County Subregional Framework AGENDA ITEM #1. a) Future Need 14 1,700 2,040 3,400 7,160 0-30% AMI 30-50% AMI 50-80% AMI >80% AMI 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 Estimate Future Housing Need Based on County Housing Targets and HAP Projected Housing Needs by Income Category Future Need Renton has made significant progress, but we need to do much more to meet the community’s growing affordable housing needs. King County Countywide Planning Policies growth targets allocate 17,0000 housing unit to Renton by 2044.AGENDA ITEM #1. a) 15 Meeting the Needs AGENDA ITEM #1. a) What Can We Do? 16 Homelessness Response (short-term) Homeless Prevention (long-term) Emergency Shelter Subsidized Housing Market Rate Housing Affordable Rental Affordable HomeownershipTransitional HousingPermanent Supportive Housing Spectrum of Housing Response AGENDA ITEM #1. a) 17 Significant government support essential Significant government support needed for most housing types and markets Subsidy or incentives needed in many markets Permissive zoning or zoning flexibility needed in some markets >125% AMI80-125% AMI50-80% AMI30-50% AMI<30% AMILevel of SupportGreater government intervention is required at lower AMI levels What Can We Do?AGENDA ITEM #1. a) 18 Housing Action Plan AGENDA ITEM #1. a) Housing Needs Assessment 19 Renton will need at least another 9,300* housing units by 2040, which will require slightly increasing the current rate of housing development Low-and moderate-income households in Renton are facing increased cost burdens in the market given higher costs of housing. Renton needs additional supplies of subsidized, income-qualified housing for very low-and extremely low-income households. There are diverse needs for housing-related support in Renton that extend beyond housing production and vary across groups in the community. King County Countywide Planning Policies growth targets allocate 17,0000 housing unit to Renton by 2044. AGENDA ITEM #1. a) Strategic Recommendations 20 Support Partnerships to Meet Housing Goals Promote Diverse Housing Types and Sizes in Neighborhoods Incentivize Housing Development Promote Affordable Housing Preservation and Development Use Available Land for Affordable Housing Align Comprehensive Plan Policies and Other Planning AGENDA ITEM #1. a) Implementation 21 Residential Land Use Analysis* Development Incentives Study Affordable Housing Funding Strategy* Affordable Housing Land Strategy Transit Oriented Development Land Banking Strategy* Ongoing monitoring and review* *Work OngoingAGENDA ITEM #1. a) 22 Affordable Housing Partnerships AGENDA ITEM #1. a) Renton Housing Authority 23 Largest subsidized housing provider in Renton Primary partner in Sunset Revitalization Four new housing projects since 2007, plus major modernization of existing buildings AGENDA ITEM #1. a) 24 Completed in 2020 60 affordable rental units First project completed on Sunset Neighborhood Park AGENDA ITEM #1. a) 25 Redevelopment of RHA headquarters 76 affordable rental units Mixed-use building will contain RHA office space and resident services AGENDA ITEM #1. a) Homestead Community Land Trust (HCLT) 26 Affordable housing developer utilizing a land trust model to ensure permanently affordable homeownership More than 200 homes in HCLT’s portfolio and currently fundraising for their next 100 units, including 19 units planned for Willowcrest Phase II AGENDA ITEM #1. a) 27 Completed in 2021 12 affordable homeownership units in Sunset neighborhood Net-zero energy project Award winning model of affordability and sustainability AGENDA ITEM #1. a) 28 Completed in 2020 by market rate developer Part of City’s density bonus program –project provided 7 affordable units in exchange for increased density Homestead partnered with developer for long- term stewardship of units AGENDA ITEM #1. a) SKHHP South King Housing & Homelessness Partners 29 Established in 2019, City of Renton was a founding member The SKHHP Capital Fund was established in 2022 City of Renton committed to pooling SHB1406 dollars to SKHHP through end of this year AGENDA ITEM #1. a) Completed Projects (Affordable Rental, 2007-2021) 30 Developer Project Location Year Completed Housing Units Affordable Housing Units Merrill Gardens Merrill Gardens at Renton Centre Downtown 2007 155 31 DASH -Downtown Action to Save Housing Liberty Square Apartments South Renton 2009 92 91 Compass Housing Alliance Compass Center Downtown 2010 59 58 Renton Housing Authority Glennwood Townhomes Sunset Area 2012 8 8 Renton Housing Authority Kirkland Avenue Townhomes Sunset Area 2014 18 18 AVS Communities The Reserve at Renton Downtown 2015 219 217 King County Housing Authority Vantage Point Apartments Benson Hill 2016 77 77 Renton Housing Authority Sunset Court Apartments Sunset 2018 50 50 Low Income Housing Institute June Leonard Place Downtown 2019 48 47 Renton Housing Authority Sunset Oaks Sunset Area 2021 60 60 Total 786 657 AGENDA ITEM #1. a) Completed Projects (Affordable Homeownership, 2012-2021) 31 Developer Project Location Year Completed Housing Units Affordable Housing Units Habitat for Humanity -Seattle/King County La Fortuna – Phase I and II Benson Hill 2012 -2022 35 35 Taylor Morrison Earlington Village Skyway/West Hill 2020 60 7 Homestead Community Land Trust Willowcrest Townhomes Sunset Area 2021 12 12 Total 107 54 AGENDA ITEM #1. a) Current Projects Containing Affordable Units 32 Developer Project Location Year Completed Housing Units Affordable Housing Units DevCo, Inc.Solera Sunset Area 2024 590 277 Renton Housing Authority Sunset Gardens Sunset Area TBD 76 76 GMD Watershed Apartments Downtown TBD 145 145 Total 811 498 AGENDA ITEM #1. a) Proposed Projects Containing Affordable Units 33 Developer Project Location Year Completed Housing Units Affordable Housing Units Homestead Community Land Trust Willowcrest Townhomes Phase II Sunset Area TBD 19 19 Nazim, Rahim & Karim Karmali Park 5 Apartments Sunset Area TBD 69 8 Total 88 17 AGENDA ITEM #1. a) 34 Funding & Beyond AGENDA ITEM #1. a) Funding Sources Federal •Low Income Housing Tax Credits (LIHTC) •HUD or Other Capital Allocations State •WA State Housing Finance Commission •Housing Trust Fund County •TOD Bond Funds •HOME Investments Partnerships Program •Veterans, Seniors, and Human Services Levy City •Housing Opportunity Fund •SHB 1406 •HB 1590 Affordable Housing “Stack”Example Distribution – RHA Funding Awards 2021-2022 AGENDA ITEM #1. a) City Funding Sources Housing Opportunity Fund SHB 1406 State Sales Tax Credit HB 1590 State Sales Tax Collection AGENDA ITEM #1. a) Advocacy and Leverage Affordable Housing Developers City County State Federal Corporate & Philanthropic Advocating for state legislation, providing letters of support, and pooling and leveraging revenue are examples of the City’s current efforts AGENDA ITEM #1. a) 38 Next Steps AGENDA ITEM #1. a) Next Steps Fund Affordable Housing and Leverage Funds •Ensure pipeline of projects for HB 1590 •Affordable homeownership dollars in Housing Opportunity Fund •Continue to pool SHB 1406 funds to SKHHP Implement the Housing Action Plan •Refine “Missing Middle” policy options •Develop an Affordable Housing Monitoring Program with SKHHP •Explore Additional revenue sources Advocate for •More county, state, and federal resources •More dollars that work for affordable homeownership •More involvement from our corporate and philanthropic partners AGENDA ITEM #1. a) Continue To… Partner with Affordable Housing Developers Collaborate Internally to Promote Affordable Housing Advance Policy Initiatives AGENDA ITEM #1. a) CONTACT Mark Santos-Johnson Community Development & Housing Manager msantosjohnson@rentonwa.gov Questions? 41 Hannah Bahnmiller Housing Programs Manager 206-503-3426 hbahnmiller@rentonwa.gov rentonwa.gov/housing AGENDA ITEM #1. a)