Resolution _________________

A RESOLUTION calling for promoting workforce housing in Seattle by supporting a regional transit oriented development acquisition fund and by exploring the expansion of the development of accessory dwelling units and detached accessory dwelling units.

WHEREAS, as Seattle continues to grow and develop, the City has established housing affordability targets in its Comprehensive Plan intended to encourage the creation of housing affordable to people from a range of ages, incomes, and family sizes; and

WHEREAS, The Council and Mayor will jointly convene the Seattle Housing Affordability and Livability Advisory Committee to evaluate potential housing strategies to increase the development of a diversity of housing types and rents/prices for Seattle residents that will issue a report to the Council and Mayor in 2015; and

WHEREAS, Council adopted Resolution 31444 in May 2013, calling for a review of national best practices in affordable housing programs and policies, focused on creating affordable Workforce Housing defined as rental housing affordable to households earning 60% to 80% of Area Median Income (AMI) and homeownership housing affordable to households earning 80% to 100% of AMI ; and

WHEREAS, the Council contracted with Otak and Penninger Consulting to complete this

review and a final report entitled "Seattle Workforce Housing Programs and Policies Related to Meeting Workforce Housing Needs in Seattle: A Survey and Analysis of Best Practices in Comparative Jurisdictions" has been submitted to the Council; and

WHEREAS, this report included recommendations, one of which the Council is interested in pursuing further at this time, related to the development of a regional transit oriented development (TOD) acquisition fund and another related to modifications to the accessory dwelling unit and detached accessory dwelling units regulations that the Council would like the Seattle Housing Affordability and Livability Committee to consider; and

WHEREAS, several different jurisdictions around the country have implemented TOD funds utilizing public and private capital to enable affordable housing developers to quickly secure sites close to transit stations or corridors for the future development of higher density, mixed-use housing development, including affordable housing; and

WHEREAS, the City has participated over the last several years in discussions with the Growing Transit Communities Partnership, a consortium of public, private and non-profit stakeholders led by the Puget Sound Regional Council (PSRC), regarding the creation of a regional transit oriented development fund, referred to as the Regional Equitable Development Initiative (REDI) Fund; and

WHEREAS, the REDI Fund is designed to provide loans to secure sites and existing multifamily buildings near existing and future transit stations and corridors throughout the Puget Sound region and repurpose these sites as affordable housing; and

WHEREAS, the regional partners are ready to move forward on the creation of such a fund in the Puget Sound Region and are looking for commitments of resources from public and private funders to create the REDI Fund; and

WHEREAS, accessory dwelling units inside a home have been authorized in the Seattle Municipal Code since 1994 and detached accessory dwelling units were authorized in the Seattle Municipal Code in 2006 for Southeast Seattle and citywide in 2009; and

WHEREAS, other jurisdictions have adopted different regulations for accessory dwelling units that could serve as a model for Seattle; and

WHEREAS, a full reporting of the number, location, rents, and other characteristics of accessory dwelling units and detached accessory dwelling units in Seattle and additional information and analysis of possible new policies or programs that could be implemented is critical for the Seattle Housing Affordability and Livability Committee's consideration of possible modifications or implementation of new policies or programs for accessory dwelling units; NOW THEREFORE,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEATTLE, THE MAYOR CONCURRING, THAT:

Section 1. The Council intends to identify and authorize funding of $1 million for the Central Puget Sound Regional Equitable Development Initiative Fund (REDI) as part of the Council's discussions of the Proposed 2015-2016 budget. City funding will not be allocated until a business plan and appropriate agreements among regional funding partners are submitted, reviewed, and approved by Council. In addition, the Council intends to support a joint application to the Washington State Department of Transportation's Regional Mobility Grant Program submitted by King County and our other regional partners that could provide funding for the REDI fund.

Section 2. The Council requests that the Department of Planning and Development (DPD) prepare a report on Seattle's development regulations regarding accessory dwelling units (ADUs) and detached accessory dwelling units (DADUs), hereafter referred to together as ADU/DADUs. This report shall be provided to the Seattle Housing Affordability and Livability Advisory Committee by March 15, 2015

A. The report should answer, at least, the questions listed below:

1. A summary of existing regulations for ADU/DADUs.

2. How many ADU/DADUs currently exist in Seattle?

3. Where are the existing ADU/DADUs and when were they built?

4. What do we know about the range of rents and average rents for ADU/DADUs?

5. What is the potential number of lots where new DADUs could be built?

6. What is the cost of permit fees for ADU/DADUs?

7. What are the common characteristics (i.e. size, location on lot, geographic location in the city) of plans approved for the construction of DADUs?

8. Could specific plans for pre-fabricated DADUs be approved?

B. In addition, the report shall include information and analysis on program and policy changes, including the changes outlined below, that could increase the production of ADU/DADUs and answer the questions that follow regarding the potential impact on ADU/DADU development.

1. Provide incentives for the construction of new ADU and DADUs:

a. Waive all or a portion of permit fees;

b. Waive all or a portion of permit fees contingent upon an income restricted covenant for the unit of 60 or 80% AMI;

c. Pre-approve pre-fabricated designs and allow streamlined permitting for projects that utilize those plans;

d. Other incentives that have served as best practices in other jurisdictions.

2. Increase marketing and promotion to property owners of ADU and DADU opportunities:

a. Promote pre-fabricated design and plans to eligible property owners;

b. Simplify and streamline financing programs through a partnership with a bank;

c. Other outreach and promotion best practices.

3. Explore regulatory changes that could encourage the development of ADU and DADUS:

a. Remove or change parking requirements;

b. Remove or change owner-occupancy requirements;

c. Changes to the number of people allowed to reside in a single dwelling unit;

d. Changes to the eligible lot size.

4. How would the change to current regulation(s) impact the feasibility of creating ADU/DADUs?

5. How many more ADU/DADUs might be created as result of the change in regulation(s)?

6. What might be the policy tradeoffs or implications of the change in regulation or the permitting process?

7. What resources would be required to implement the change?

Adopted by the City Council the ____ day of ____________________, 2014, and signed by me in open session in authentication of its adoption this________ day

of ______________________, 2014.

_________________________________

President ___________of the City Council

THE MAYOR CONCURRING

_________________________________

Edward B. Murray, Mayor

Filed by me this ____ day of ________________________, 2014.

____________________________________

Monica Martinez Simmons, City Clerk

(Seal)

O'Brien LEG Regional TOD Fund and Expansion of ADU/DADUs RES September 9, 2014 Version #3