HomeMy WebLinkAbout09/18/2024 - Agenda Packet
AGENDA
Planning Commission Meeting
6:00 PM - Wednesday, September 18, 2024
Council Chambers, 7th Floor, City Hall – 1055 S. Grady Way
1. CALL TO ORDER
2. ROLL CALL
3. CORRESPONDENCE RECEIVED
4. AUDIENCE COMMENT - NON AGENDA ITEMS
1. Virtual Attendees
2. In-person Attendees
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offered an opportunity to speak before the in-person (physical meeting at the City Hall, 7F
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5. COMMISSIONER COMMENTS
6. ADMINISTRATOR'S REPORT
7. PUBLIC HEARING DOCKET 19 GROUP A (D-233: MFTE AND WAIVE FEES,
D-234: SB290 LOCAL PROJECT REVIEW)
Page 1 of 6
a)
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 6
September 18, 2024
CITY OF RENTON
Community and Economic Development Department
#D-233: MFTE and Waived Fees
Staff: Angelea Weihs, Associate Planner
Date: September 13, 2024
SUPPLEMENTAL STAFF REPORT
_____________________________________________________________________________________
SUMMARY:This Supplemental Staff Report provides responses to a request for additional
information regarding the Multi-Family Housing Property Tax Exemption.
General Description
The Multi-Family Housing Property Tax Exemption (MFTE) and Waived Fees programs are set to expire
on December 31, 2024, unless extended by City Council action. These housing incentives have been
instrumental in facilitating significant new multi-family housing development in the City’s highest
priority redevelopment and revitalization areas, as well as facilitating new affordable housing
development across the city. The purpose of proposed code amendment is to extend the sunset date by
3 years.
Planning Commission Issue: Planning commission requested that staff provide additional information
regarding number of projects/units that have utilized the MFTE program and the quantity of taxes
exempted for these projects through this program.
Staff Response: The following table includes a list of projects that have utilized the MFTE program. This
list was last updated in 2023 and includes both active and inactive program participants. Additional data
is provided below for the highlighted projects identified in the table.
Project Name Status
Number
of
Housing
Units
Designated
Residential
Targeted
Area
Number of
Years of
Exemption
First Year
of
Exemption
Final Year
of
Exemption
Merrill Gardens
at Renton
Centre Expired 154 Downtown 10 2008 2017
Parkside at 95
Burnett Expired 106 Downtown 10 2008 2017
The Bristol II at
Southport Expired 195
South Lake
WA 10 2009 2018
Chateau de
Ville Expired 50 Downtown 10 2009 2018
Liberty Square
Apartments
Active -
Extended 92 Downtown 24 2010
2033
(Extended)
The Sanctuary Expired 440
South Lake
WA 10 2010 2019
AGENDA ITEM #7. a)
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D-233 Page 2 of 4 September 18, 2024
The Reserve Expired 440
South Lake
WA 10 2011 2020
Harrington
Square Expired 217 Sunset 10 2012 2021
The Lofts at
Second and
Main Active 101 Downtown 8 2018 2025
Merrill Gardens
at Renton
Addition Active 30 Downtown 8 2022 2030
Penny Lofts Active 24 Downtown 8 2022 2030
Sunset Terrace Active 108 Sunset 8 2024 2032
Solera
Conditional
Certificate 554 Sunset 12 TBD TBD
The following table provides the estimated residential property tax exemptions for a sample group of
five projects that have utilized the MFTE program. This data was acquired prior to, or at the time of,
application for the program; therefore, the property tax rates are based on the time of application for
the specific project.
Estimated Residential Property Tax Exemptions
The Lofts at Second and Main (Based on Projected 2015 Property Tax Rates)
City of Renton Portion of Annual Estimated Property Tax Savings for Residential
Improvements
$34,741
City of Renton Portion of Total Exemption Period Estimated Property Tax Savings
for Residential Improvements
$277,929
City of Renton Portion of Total Exemption Period Estimated Property Tax Savings
per Housing Unit
$2,752
City of Renton Portion of Annual Estimated Property Tax Savings per Housing Unit $344
Penney Lofts (Based on Projected 2020 Property Tax Rates)
City of Renton Portion of Annual Estimated Property Tax Savings for Residential
Improvements
$1,739
City of Renton Portion of Total Exemption Period Estimated Property Tax Savings
for Residential Improvements
$13,914
City of Renton Portion of Total Exemption Period Estimated Property Tax Savings
per Housing Unit
$1,159
City of Renton Portion of Annual Estimated Property Tax Savings per Housing Unit $145
Sunset Terrace (Based on Projected 2021 Property Tax Rates)
City of Renton Portion of Annual Estimated Property Tax Savings for Residential
Improvements
$29,237
City of Renton Portion of Total Exemption Period Estimated Property Tax Savings
for Residential Improvements
$233,899
City of Renton Portion of Total Exemption Period Estimated Property Tax Savings
per Housing Unit
$2,166
City of Renton Portion of Annual Estimated Property Tax Savings per Housing Unit $271
Solera (Based on Projected 2021 Property Tax Rates)
AGENDA ITEM #7. a)
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D-233 Page 3 of 4 September 18, 2024
City of Renton Portion of Annual Estimated Property Tax Savings for Residential
Improvements
$85,286
City of Renton Portion of Total Exemption Period Estimated Property Tax Savings
for Residential Improvements
$1,023,426
City of Renton Portion of Total Exemption Period Estimated Property Tax Savings
per Housing Unit
$1,735
City of Renton Portion of Annual Estimated Property Tax Savings per Housing Unit $145
Liberty Square Apartments (Based on Projected 2022 Property Tax Rates)
City of Renton Portion of Annual Estimated Property Tax Savings for Residential
Improvements
$20,319
City of Renton Portion of Total Exemption Period Estimated Property Tax Savings
for Residential Improvements
$243,825
City of Renton Portion of Total Exemption Period Estimated Property Tax Savings
per Housing Unit
$2,650
City of Renton Portion of Annual Estimated Property Tax Savings per Housing Unit $221
Despite the limited duration loss of property tax revenues, the purpose of the MFTE program is to
encourage increased residential opportunities, including affordable housing opportunities, within
designated residential targeted areas where public investment is desired by the City of Renton. This
objective is particularly important considering the City of Renton population growth forecasts and
targets.
King County Countywide Planning Policies (CPPs), adopted in 2021, implements the VISION 2050 plan for
growth and establishes population, housing, and job targets for its 39 cities and unincorporated urban
areas. The targets are designed to accommodate the addition of approximately 660,000 people and
490,00 jobs in King County by 2044. The King County CPPs establishes a countywide need for affordable
housing defined as the additional housing units needed in King County by 2044, so that no household
with a household income at or below 80 percent of Area Median Income (AMI) is housing cost
burdened. In cooperation with growth projections and housing needs provided by the King County CPPs,
Renton’s housing growth targets are presented in the following table.
RENTON HOUSING SUPPLY AND FUTURE HOUSING NEEDS:
Extremely
Low
Income
Very Low
Income
Low
Income
Below
Median
Income
Meets or
Exceeds
Median
Income
Exceeds
Median
Income
Total Units 0 to 30%
AMI
30 to 50%
AMI
50 to 80%
AMI
80 to 100%
AMI
100 to 120%
AMI > 120% AMI
2020 Housing
Unit
Inventory
43,362 1,642 6,206 9,259 10,863 6,988 8,404
AGENDA ITEM #7. a)
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D-233 Page 4 of 4 September 18, 2024
Additional
Housing
Units Needed
by 2044
17,000 6,271 1,624 1,019 1,062 1,205 5,819
2044 Total
Future Need 60,362 7,913 7,830 10,278 11,925 8,193 14,223
Share of
Future
Housing
Need
-13%13%17%20%14%24%
Between 2019 and 2044, Renton must plan to accommodate a total of 17,000 new housing units, which
represents an increase of approximately 39% over the 2020 housing supply. Housing incentives, such as
the MFTE program, provide cities and counties opportunities to meet housing goals without the need
for direct funding. This can support affordable housing, as well as incentivize market-rate housing in a
way that complies with state requirements.
In 2019, the Washington State legislative committee, Joint Legislative Audit and Review Committee
(JLARC), distributed a report discussing statewide performance of the MFTE program. At the time of the
report, 424 developments had received an exemption across the state, resulting in a total of 34,885 new
housing units created with the program.
2019 JLARC REPORT:
424
Developments received
an exemption
34,885
housing units were
created
82%
Units located in Seattle,
Tacoma, Spokane, or
Renton
21%
Units were designated
as affordable
As of 2022, 55 communities in Washington have active MFTE programs, and 19 communities issued final
certificates in 2021. The exemptions issued in 2021 alone resulted in:
• 67 new rental properties and 97 owner-occupied housing units
• 7,759 new housing units, including 1,058 rent-restricted units for low-income households
The MFTE program is a tool that will help further Renton’s efforts to attract multi-family housing within
residential target areas, as well as support the development of affordable housing.
AGENDA ITEM #7. a)
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