Attachment 12
HOUSING APPENDICES
Table of Contents
HOUSING APPENDIX A:
Housing Inventory, Existing and Future Housing Needs........................................
HOUSING APPENDIX B:
Land and Development Capacity for Housing........................................................
HOUSING APPENDIX C:
Residential Preference Study Executive Summary................................................
OVERVIEW A63 HOUSING APPENDIX A: Housing Inventory, Existing and Future Housing Needs A64 HOUSING APPENDIX B: Land and Development Capacity for Housing Types Referenced by GMA and Countywide Policies ..........................................................................................................................A102 HOUSING APPENDIX C: Existing City of Seattle Housing Programs - 1993 A106 HOUSING APPENDIX D: Residential Preference Study Executive Summary A114 HOUSING APPENDIX E: Analysis of City's Ability to Meet Countywide Low-income Housing Production Targets A117
OVERVIEW
The appendix to the housing element presents information and analysis necessary to aid the City’s elected officials in making policy decisions related to housing. The Housing Section of the 2001 – 2004 Consolidated Plan also serves as an annually updated resource of housing information. meet the requirements of the Growth Management Act and analysis that shows how the City will meet goals established in the Countywide policies.
The Growth Management Act requires that each jurisdiction prepare a housing element, recognizing the vitality and character of established residential neighborhoods that:
(a) includes an inventory and analysis of existing and projected housing needs (see housing element appendix A);
(b) includes a statement of goals, policies and objectives for the preservation, improvement, and development of housing (see housing element policies);
(c) identifies sufficient land for housing, including, but not limited to, government assisted housing, housing for low-income families, manufactured housing, multifamily housing, and group homes and foster care facilities (see housing element appendix B and land use element appendices A and B);
(d) makes adequate provisions for all economic segments of the community (see housing element policies, and housing element appendices A, B, C and E).
APPENDIX A:
Housing Inventory, Existing and Future Housing Needs
1. SEATTLE'S EXISTING HOUSING STOCK AND HOUSING MARKET
A. Housing Type and Tenure
Seattle's existing housing stock is currently distributed almost evenly between single-family houses and multifamily apartment structures (see Housing Figure A-1). In 1990 As of 2000 there were are a total of 249,032269,128 housing units in the city. Of these, 135,284 2,330 units (53.150 percent) were in single family structures, 113,146130,288 units (45.4 48.5 percent) in multifamily structures and 3,556 (1.5 percent) were in mobile homes or other structures. Since 1960, multifamily units have been increasing as a proportion of the total housing stock. Today mMultifamily units accounted for 37 48 percent of all units in 1960 compared to 37 percent in 1960 and more than 45 percent today in 1990.
Seattle now has more renters (51 percent) than owners (49 percent). The city's owner-occupancy rate is at its lowest point since 1940 (see Housing Figure A-2). Eighty percent of the single-family homes are owner-occupied, with the remaining 20 percent renter-occupied. Multifamily units are 89 percent renter-occupied and 11 percent owner-occupied.
Rental units tend to be much smaller than owner-occupied units. Only 13 percent of renter-occupied units had three or more bedrooms, whereas 63 percent of owner-occupied units have three or more bedrooms (see Housing Figure A-23). Housing unit sizes and household sizes are not well matched. While owner-occupied households are larger than renter households (2.4 persons per owner-occupied household compared to 1.8 for renter households), 67 percent of the owner-occupied units in the City (mostly single-family houses) are occupied by only one or two people.
Seattle's share of King County's housing stock has been steadily declining over the last thirty years. In 1960, 65 percent of the housing units in King County were in the City of Seattle. By 1990 Seattle's share had dropped to 39 percent. King County continues to have a significantly higher proportion of single family units, 61 percent compared to Seattle's 53 percent (see Housing Figure A-4). Mirroring the trend in Seattle, the proportion of units that are multifamily units in King County is increasing over time.
While In 1990 Seattle's housing stock wasis divided almost evenly between single-family and multifamily buildings, 30 percent of the total units that comprise Seattle's total housing stock are located in buildings of 10 units or more. In contrast, only 16 percent of the total housing stock is in smaller multifamily buildings containing two to nine units. Seattle has a large number of single-family houses, a significant number of apartment houses, but relatively few units in ground-related housing types, such as townhouses, duplexes and triplexes. New housing units built or permitted between 1994 and 1999 continue the trend observed from the 1990 division of Seattle’s housing stock. The housing stock continues to be dominated by single-family houses and larger multifamily buildings (see Housing Figure A-3).
Housing Figure A-1
CITY OF SEATTLE HOUSING STOCK, 1990
Housing Units |
Total Units |
Percent of Total Units |
Vacant Units |
Vacancy Rate |
Single Family |
132,330 |
53.1% |
4,288 |
3.2% |
Multifamily |
113,146 |
45.4% |
7,798 |
6.9% |
2 To 4 |
22,641 |
9.1% |
1,521 |
6.7% |
5 To 9 |
16,636 |
6.7% |
1,058 |
6.3% |
10 To 19 |
24,420 |
9.8% |
1,359 |
5.5% |
20 Plus |
49,449 |
19.8% |
3,860 |
7.8% |
Mobile Home |
694 |
0.3% |
47 |
6.7% |
Other |
2,862 |
1.1% |
197 |
6.9% |
Total |
249,032 |
100.0% |
12,330 |
4.9% |
Occupied Housing Units |
Total Occupied Units |
% of Total |
Owner Occupied Units |
% Of Owner Units |
Renter Units |
% Of Renter Units |
Single Family |
128,042 |
54.1 |
102,445 |
88.5 |
25,597 |
21.2% |
Multifamily |
105,348 |
44.5 |
11,428 |
9.9 |
93,920 |
77.6% |
2 To 4 |
21,120 |
8.9 |
2,676 |
2.3 |
18,444 |
15.3% |
5 To 9 |
15,578 |
6.6 |
1,170 |
1.0 |
14,408 |
11.9% |
10 To 19 |
23,061 |
9.7 |
2,563 |
2.2 |
20,498 |
16.9% |
20 Plus |
45,589 |
19.3 |
5,919 |
4.3 |
40,570 |
33.6% |
Mobile Home |
647 |
0.3 |
537 |
0.5 |
110 |
0.1% |
Other |
2,665 |
1.1 |
1,299 |
1.1 |
1,366 |
1.1% |
Total |
236,702 |
100.0 |
115,709 |
100.0 |
120,993 |
100.0% |
Source: U.S. Census of Population and Housing, 1990.
Housing Figure A-4
KING COUNTY HOUSING STOCK, 1990
Housing Figure A-2
New Housing Units by Building Size
9/94-6/00
Housing Units |
Total Units |
Percent of Total Units |
Vacancy Rate |
Percent Owner-occupied |
Percent Renter-occupied |
Single Family |
393,600 |
60.8% |
3.1% |
84.3% |
15.7% |
Multifamily |
228,602 |
35.3% |
7.8% |
10.3% |
89.7% |
Mobile Home |
19,779 |
3.1% |
4.6% |
86.2% |
13.8% |
Other |
5,362 |
0.8% |
9.2% |
50.7% |
49.3% |
Total |
647,343 |
100.0% |
4.9% |
58.8% |
41.2% |
Source: U.S. Census of Population and Housing, 1990.
The relative lack of ground-related multifamily housing is attributable to many factors. Seattle developed as a city of neighborhoods of single-family houses. Major periods of growth and expansion occurred after the time that the streetcar and the automobile made a dispersed low-density development pattern possible. Neighborhoods of row houses and triple-deckers that today provide affordable alternatives to single-family houses in many older U.S. cities were never developed in Seattle. The character of Seattle's single-family neighborhoods has always been highly valued by residents, resulting in the adoption of land use regulations that have reinforced and protected the existing single-family character. Another factor is that single-family housing was relatively affordable in the Seattle area prior to the late 1970s. As a result, the demand for and need for alternatives to single-family homes was relatively low.
b. Residential Development Capacity
Seattle, as of 1994, currently has an estimated unused zoned residential development capacity of 101,520 new units (see Housing Figures A-53 and A-64). At the time the capacity figure was developed Seattle had 252,748 housing units, so the total housing stock would be about 354,268 housing units if all this capacity were used.
Residential development capacity includes vacant land in residential zones, underutilized sites in residential zones, some of the vacant land in commercial zones, and some of the underutilized sites in commercial zones. Underutilized sites are sites where the existing developed density is low compared to the allowed developed density, or where the value of the improvements on the site is low compared to the value of the land. A full discussion of the methodology used to estimate residential development capacity can be found in the Comprehensive Plan Background Report Zoned Development Capacity, City of Seattle Office for Long-range Planning, November 1991.
Housing Figure A-35
SEATTLE RESIDENTIAL DEVELOPMENT CAPACITY, 1994
Housing Figure A-46
CITY OF SEATTLE UNUSED RESIDENTIAL DEVELOPMENT CAPACITY, 1994
Land Use Zones |
Unused Residential Development Capacity (units) |
Percent Share |
Single-Family |
4,510 |
4.4% |
Multifamily Low Density |
16,560 |
16.3% |
Multifamily Moderate Density |
21,200 |
20.9% |
Multifamily High Density |
8,320 |
8.2% |
Neighborhood Commercial |
26,490 |
26.1% |
Downtown |
24,440 |
24.1% |
Total |
101,250 |
100.0% |
Source: City of Seattle Planning Department, 1994
Only about 4 percent of Seattle's residential development capacity is in Single-Family zones, reflecting the fact that most of the land in the city is already developed and relatively little land is vacant or is appropriate for short-platting. Fifty percent of the city's unused development capacity is in Downtown and Neighborhood Commercial zones. About 45 percent of total development capacity is in Multifamily zones, but only about 16 percent of total capacity is in low-density Multifamily zones where ground-related housing is common (LDT/L1/L2 zones).
c. Residential Development Trends
Residential development trends in Seattle over the past thirty years have generally followed cyclical expansions and contractions in employment growth in the region. During the late 1980's when regional employment was growing at about 5 percent per year, double the rate of growth of the U.S. economy, a significant increase in housing production occurred. Residential development activity declined significantly in 1991 and 1992 due to both the slow down in growth in the regional economy and tighter lending standards that resulted from the savings and loan crisis. Residential development will probably not pick up again until mid-decade when the regional economy is expected to start growing, resulting in demand for more housing.
During the 1980s Seattle averaged a net addition of 2,460 residential units per year, according to City permit records (see Housing Figure A-7). Development activity increased in the second half of the decade, with an average of 3,294 units permitted per year in the years 1987, 1988 and 1989. Twenty percent of the units were built in single-family zones. Strong demand for single-family housing continues to encourage infill on existing vacant lots, redevelopment of existing lots and short-platting of larger parcels. Eighty percent of the new residential development was multifamily housing in Multifamily, Commercial and Downtown zones. The proportion of housing built in neighborhood commercial zones increased during the last three years of the decade, reflecting strong demand for multifamily housing and the less restrictive land use regulations in Neighborhood Commercial zones.
During the 1990s housing development activity continues to increase. Between September 1994 and the end of 1999, the City’s housing supply increased by approximately 7,900 new dwelling units. As of July 2000, there were active permits for approximately 6,600 additional dwelling units, including those currently under construction. Twenty percent of the units were built in single-family zones. Showing a continuing strong demand for single-family housing. Eight one percent of permits for housing development are for buildings in urban centers and villages, which are largely made up of Multifamily, Commercial and Downtown zones. Annual housing unit growth in 1999 was higher than any year since 1991. Annual housing unit growth in 1999 was 50% higher than growth in 1994.
Under the preferred The Comprehensive Plan alternative (60,000 households, 63,000 housing units over the plan's twenty year timeframe), twenty year housing target is 50,000 to 60,000 dwelling units. Tthe City will needs have to average 3,150 units per year in order to meet this target. Average annual production will need to be higher in coming years than is has been in the past five (see Housing Figure A-5). , an increase of 28 percent over average production rates evident in the 1980s, but comparable to the level of development
Housing Figure A-5
Annual City of Seattle Housing Growth
activity during the last three years of the decade.
d. Housing Prices and Rents
Both single-family home values and residential rents increased faster than household incomes and inflation during the 1980s. (see Housing Figure A-8) Adjusted for inflation, Seattle home prices increased by 38 percent and residential rents by 19.5 percent (U.S. Census) during this time period. Over the same period, median household incomes increased by 8.5 percent in real terms, while per capita incomes increased by 18.5 percent. In 1990 the median house price in Seattle was $137,000 and the median contract rent was $425. (The rent figure reflects the moderating effect of subsidized rents paid by tenants of subsidized housing.)
Housing Figure A-7
NET INCREASE IN RESIDENTIAL UNITS, 1980 - 1989
|
1980-1983 NET UNITS PERMITTED |
1984-86 NET UNITS PERMITTED |
1987-89 NET UNITS PERMITTED |
TOTAL/ PERCENT SHARE |
Single Family |
1,291 |
2,072 |
1,540 |
4,903 20% |
Multifamily |
3,594 |
4,547 |
4,769 |
12,910 52% |
Commercial |
1,098 |
1,010 |
2,375 |
4,483 18% |
Downtown |
863 |
520 |
1,199 |
2,582 10% |
TOTAL |
6,846 |
8,149 |
9,883 |
24,878 100% |
Source: Compiled by the City of Seattle Planning Department using data extracted from the Department of Construction and Land Use permit database.
*Net number of units is new units minus units demolished or converted as a result of the redevelopment.
Housing Figure A-8
SEATTLE HOUSING COST TRENDS, 1980-1990
1980 |
1990 |
% Change |
Real % Change |
|
Median House Value |
$65,100 |
$137,900 |
111.8% |
38.2% |
Median Contract Rent |
232 |
425 |
83.2% |
19.5% |
Median Household Income* |
16,254 |
29,353 |
80.6% |
8.5% |
Median Family Income ** |
22,096 |
39,860 |
80.4% |
8.4% |
Per Capita Income** |
9,282 |
18,308 |
97.2% |
18.5% |
* Deflated by Seattle-Tacoma CPI. ** Income data are for 1979 and 1989.
Source: U.S. Census of Population and Housing, 1980 and 1990.
Housing prices over the last thirty forty years have been heavily influenced by the growth cycles in the regional economy (see Housing Figure A-9). . Periods of rapid economic growth in the mid-60s, late-70s, and late-80s, and the 90s led to significant increases in immigration into the region, which in turn led to rapid increases in house prices due to an imbalance between supply and demand. Real house prices have tended to decline during periods of recession or economic stagnation. However, the overall trend has been for single-family home prices to increase faster than inflation and incomes. This is probably due to the fact that, as a region, we are running out of easily developable, accessible land for single-family development.
During the latter half of the 1990s in Seattle, the median sales price of a single family home increased by 50% from $160,000 in 1995 to $240,000 in 1999, and the median sales price for condominiums increased by 43% from $123,000 to $175,000 over the same five year period. In the last year alone, the median sales price for both condominiums and single family units for all of King County increased by 11% to $222,625. Citywide, average rents for all units increased by 26% from $599 in 1995 to $756 in 1999. For Downtown only, average rents increased by 40% from $662 in 1995 to $928 in 1999 (for all units). For Capitol Hill/Eastlake, average rents increased by 28%; in West Seattle, rents increased by 23%.
According to the U.S. Department of Housing and Urban Development, median family income has increased by 24% from $52,800 to $65,800 in the Seattle Metropolitan Area. Applying these income figures to the housing sales price information above gives an indication of housing affordability. For a moderate-income household ($25,000 - $40,000/year) in Seattle, only about 7% of single family home sales were affordable (for the period 4/98 – 3/99). In Downtown, 60% of condominium sales were affordable only to households earning above 120% of median income. In 1999, 34% of non-subsidized rental units in Seattle were affordable to households earning 30 – 50% of median income, and 58% of rental units were affordable at 50 – 80 % of median income. The minimum annual income needed to afford the average rent (for all units) in 1995 was $23,940 and for 1999, $30,192.
Housing has become progressively less affordable in the Seattle area over the last twenty years. Prices have increased faster than incomes, and faster than average housing prices in the U.S. (see Housing Figure A-10). A statistical study of factors that might explain the increase in housing prices was conducted by the Planning Department in 1993. The study suggests that in addition to demand-side factors, such as increases in income and population, supply-side factors were also important in explaining why housing prices increased faster in the Seattle area faster than other metropolitan areas in the U.S. Supply-side factors include geographic constraints on residential land supply, traffic congestion, and the restrictiveness of development regulations.
Market-rate rents in the City currently range from about $300 per month to $1700 per month and higher (see Housing Figure A-11). In 1990 the median gross rent was $463, near the low end of the range (gross rent includes the estimated cost of utilities). The City had 56,123 units renting for less than $450 per month (a rent approximately affordable to average-size households at 50 percent of median income - see Housing Figure A-12). This amounts to about 24 percent of the City's total housing stock, including owner-occupied units. However, most of these low-cost units are small units -- studios and one-bedrooms. Very few units of two-bedrooms or larger rent for less than $450 (see Housing Figure A-13). Affordable rental units tend to be concentrated in parts of the city with higher concentrations of multifamily housing (see Housing Figure A-14).
Home ownership in Seattle has become progressively less affordable since 1960. Housing Figure A-15 illustrates the minimum financial requirements needed to purchase a median priced home in Seattle between 1960 and 1990. In 1960 and 1970, families at median income level could afford a home at the median price level. By 1980, they could no longer do so. By 1990, median-income families would need a substantial amount of additional equity to purchase a house worth $137,900. Affordability has improved slightly since 1990, as interest rates have dropped from 10 to about 8 percent, and, adjusted for inflation, house prices have fallen.
Average house values vary significantly throughout the city (see Housing Figure A-16). Median home values in the north and central parts of the city tend to be average or higher than average, while values in the south end tend to be lower than average. Neighborhoods with good views have higher average values than nearby neighborhoods without views.
Housing Figure A-9
KING COUNTY EMPLOYMENT CHANGE, NET MIGRATION, AND REAL PERCENT
CHANGE IN HOME PRICES ($1982), 1960 - 1991
SEATTLE RENTAL HOUSING UNITS BY GROSS RENT, 1990
Housing Figure A-12
RENT LEVELS AFFORDABLE TO LOW-INCOME HOUSEHOLDS 1990 and 1993
|
Household Size |
|||
Income level |
1 Person |
2 Person |
3 Person |
4 Person |
80% of Median |
$610 |
$696 |
$783 |
$871 |
50% of Median |
381 |
435 |
489 |
544 |
30% of Median |
229 |
261 |
294 |
326 |
1993 |
||||
80% of Median |
672 |
767 |
864 |
960 |
50% of Median |
420 |
480 |
540 |
600 |
30% of Median |
252 |
288 |
324 |
360 |
Source: U.S. Department of Housing and Urban Development
Housing Figure A-13
RENTS BY SIZE OF UNIT, SEATTLE 1990
Number of Bedrooms |
||||
Gross Rent |
None |
1 |
2 |
3+ |
$ 0 - 199 |
2,579 |
5,555 |
1,112 |
523 |
$ 200 - 299 |
3,447 |
3,857 |
1,163 |
606 |
$ 300 - 499 |
8,931 |
29,841 |
9,139 |
1,946 |
$ 500 - 749 |
1,292 |
10,726 |
19,421 |
4,957 |
$ 750 - 999 |
212 |
855 |
4,332 |
4,778 |
$1000 or more |
44 |
439 |
948 |
2,162 |
Source: U.S. Census of Population and Housing, 1990.
Housing Figure A-15
AFFORDABILITY OF HOME OWNERSHIP IN SEATTLE, 1960-1990
Year |
Median Sales Price |
Total Cash Required* |
Monthly Payments** |
Required Income |
Median Income |
Financial Gap |
1990 |
$137,900 |
$14,204 |
$1,104 |
$52,225 |
$41,500 |
($10,725) |
1980 |
65,100 |
13,411 |
550 |
28,408 |
20,500 |
(7,908) |
1970 |
19,600 |
4,038 |
121 |
6,225 |
11,700 |
5,475 |
1960 |
13,500 |
2,781 |
61 |
3,166 |
7,000 |
3,834 |
* Estimate based on typical closing costs (3%)
** Prevailing mortgage interest rates: '90=10.16%; '80=12.36%; '70=8.5%; '60=5.5%
Loan/value ratios: '90=90%; '80,70,60=80%; 30 year term
Source: U.S. Census of Population and Housing; City of Seattle Department of Human Services.
TThe overall vacancy rate in the City of Seattle in 1990 was 4.9 percent
(1990 census). The vacancy rate for single-family units was 3.2 percent and the rate for multifamily units was 6.9 percent. Rental vacancy rates in the Seattle area have been relatively low over the past decade. After peaking at about 7 percent during the 1982 recession, the King County rental vacancy rate has since hovered between 4 and 6 percent (Cain and Scott Apartment Vacancy Report). Rental vacancy rates in Seattle tend to be slightly lower than the King County average.
e. Housing Preferences
The Housing Element of the Comprehensive Plan must balances the objectives of being responsive to the housing consumer, enabling people to live in the kind of housing they prefer and other competing goals and needs such as the need to use land in an environmentally sound manner, the need to create cities that can be effectively served by transit, and the need to provide people with housing they can afford.
Most Americans express strong preferences for living in single-family houses. National surveys typically find that single-family houses are the preferred housing type for about 80 percent of American households (see Housing Figure A-17). While it may be possible for 80 percent of households to live in single-family houses in small towns and rural areas, this percentage would be impossible unrealistic to achieve in a major metropolitan areacity like Seattle, where land prices are high. and the only way Seattle and other jurisdictions can accommodate the number of people wanting to live here is to build aby enabling a portion of the housing stock as in the form of higher-density multifamily housing.
In 1970, 73 percent of the households in King County lived in single-family houses. By 1990 this percentage had dropped to about 64 percent, and over the next twenty years it is likely to drop further. The City has zoned land for a wide variety of housing types to try to ensure that the greatest proportion of households possible can find acceptable and appropriate housing with characteristics they desire. This is what this plan attempts to do, through the combined policies of the land use and housing elements.
The percentage is declining because of a complex set of factors related to the region's constrained land supply and overtaxed transportation system, that together have driven up the cost of land, forcing the construction of more multifamily housing to meet market demand.
Currently over 45 percent of Seattle's housing units are multifamily units. Because Seattle has very little development capacity for more single-family housing, about 90 percent of the new housing built in Seattle over the next twenty years will be multifamily units.
Clearly it would be very difficult for Seattle and other jurisdictions in the region to provide an affordable single-family house to every household for which single-family is the preferred housing type. Because single-family houses are desirable and in relatively short-supply, and the market allocates houses by price, the City is unable to ensure that those households that may need single-family housing more than others, such as households with children, can live in them. However, the City can zone land for a wide variety of housing types to try to ensure that the greatest proportion of households possible can find acceptable and appropriate housing with characteristics they desire. This is what this plan attempts to do, through the combined policies of the land use and housing elements.
What sort of housing should the City encourage, acknowledging that there is very little land left for new single-family housing and that the price of single-family housing is too high for many households ? The City of Seattle/Puget Sound Regional Council Residential Preference Study (December 1993) shows that, if housing type is the only attribute of housing and neighborhood considered, then housing consumers tend to prefer ground-related housing types, such as townhouses and duplexes, if single-family houses are not available or are too expensive. This type of housing shares many of the attributes of single-family housing, such as yard space and privacy, but uses much less land than single-family housing.
However, the Residential Preference Study also reveals that for a significant share of the regional housing market, higher density condominiums and apartments are also a competitive alternative if they are well designed and built, and are located in attractive neighborhoods with amenities and services. An executive summary of the findings of the Residential Preference Study may be found in Housing Appendix D.
2. ASSISTED HOUSING STOCK
The City’s 2001 – 2004 Consolidated Plan contains detailed information that is summarized here.
a. Assisted Housing Stock
Publicly-assisted housing is housing that is either owned and operated by government, or housing owned by private parties or nonprofit organizations that is affordable to low-income or special needs households as a result of government subsidies. Assisted low and moderate-income housing in Seattle currently accounts for about 10 percent of Seattle's total housing stock -- 25,794 28,142 assisted units out of 251,761 269,128 total units (see Housing Figure A-18). The greatest share of Seattle's assisted housing stock, 8,420 units, is owned and/or managed by the Seattle Housing Authority (SHA). Other agencies which produce housing include Another 4,593 assisted rental units have been produced with funding through the City's Department of Housing and Human Services (DHHS)Office of using a number of funding sources including from the federal, state, county and local sources. and 4,942 units are assisted through federal Section 8, Section 202, Section 811, Section 221 funding (see Housing Figure A-19). Federal tax credits have funded another 3,436 units. In addition to assisted housing projects there are 3,481 tenant-based Section 8 Vouchers and Certificates which provide rent supplements for renters in private projects throughout the city.
Assisted housing in King County is heavily concentrated in Seattle. While Seattle had only 39 percent share of households in King County in 1990, it had almost 70 percent of the assisted low-income housing. A number of concerns have been raised with respect to the regional distribution of low-income housing: concern about the impacts of overconcentration in several Seattle neighborhoods; concern that low-income households, particularly those that work in low paying jobs in suburban locations, are prevented from living close to their jobs by the lack of affordable housing; and concern that Seattle, as a result of the existing pattern of distribution, is bearing an unfair burden of human services costs that are associated with assisted housing. As a result of the Growth Management Act Seattle and its neighbors have started working on a plan to achieve a more equitable distribution of affordable housing over the next twenty years as part of the King County Countywide policies.
b. Location of Assisted Housing
The existing distribution of assisted housing in the City of Seattle is highly uneven (see Housing Figure A-207). Some neighborhoods, such as Downtown, the Central Area and parts of Southeast Seattle have very high concentrations of assisted housing, in some cases over 25 percent of all housing units in the area. A number of factors have contributed to the existing pattern including: the location of large public housing projects; lower property values (and therefore lower production costs) in many of the areas with high concentrations; the tendency to locate subsidized housing in areas where potential residents currently live and where human services are available; and community resistance to subsidized housing in many parts of the city.
c. Funding for Low-Income Housing
Funding for the production and preservation of low-income housing comes from numerous sources, including federal, state, county and local sources. Historically the federal government has been the primary funding source for low-income housing, supporting most of the housing currently owned and operated by the Seattle Housing Authority. In the early 1980's federal funding for housing production was significantly reduced, requiring the City and the State to assume a greater role in funding low-income housing. According to the City's 1986 Housing Assistance Plan, federal funding for new housing production dropped from an average of 699 units per year during the 1970s to an average of only 227 units per year during the period between 1980 and 1985.
In 1981 the citizens of Seattle passed a $50 million senior housing bond issue, and in 1986 Seattle voters approved a $50 million low-income housing levy. Funds from the senior housing bond issue were fully committed by the mid-1980s and funds from the low-income housing levy will have beenwere fully committed by 1994. In 1995, Seattle voters approved a $59.211 million property tax levy to provide seven years of funding for housing preservation and production. The City expects to work to renew the housing levy when it expires in 2002. During the past year the City has committed $2 to $3 million per year for publicly-owned low-income housing from Real Estate Excise Tax (REET) funds dedicated to funding public facilities and infrastructure.
Current funding for low-income housing production and preservation from all sources, is between $20 and $30 million per year. A funding source to replace the expiring City of Seattle low-income housing levy has yet to be identified. A King County housing levy that would have provided funding for low-income housing in the City of Seattle and elsewhere failed at the ballot box in 1992.
A detailed summary of the City of Seattle's existing housing programs may be found in Housing Appendix C. More detail on the financial resources available to the City for the production and preservation of low-income housing, and the number of low-income units these resources are likely to produce over the 20 year life of this plan may be found in Housing Appendix E (Housing Figure A-36).
Housing Figure A-196
CITY OF SEATTLE ASSISTED HOUSING INVENTORY, 1993
Category |
Total |
SRO |
0,1 bdrm |
2 bdrm |
3+bdrm |
Project Based Assistance: |
|||||
SHA Public Housing |
6,927 |
- |
3,741 |
1,801 |
1,385 |
SHA Other Housing |
1,493 |
- |
1,113 |
86 |
294 |
Federally Subsidized* |
4,942 |
1,513 |
3,026 |
257 |
146 |
DHHS Multifamily** |
4,593 |
1,254 |
2,682 |
516 |
141 |
State Housing Program (HAP) |
582 |
19 |
410 |
137 |
16 |
State Housing Bonds (WSHFC) |
290 |
9 |
203 |
70 |
8 |
Federal Tax Credits (WSHFC) |
3,436 |
104 |
2,405 |
824 |
103 |
Subtotal |
22,263 |
2,899 |
13,598 |
3,691 |
2,087 |
Tenant Based Assistance: |
|
|
|
|
|
Section 8 Certificates |
2,590 |
- |
829 |
958 |
803 |
Section 8 Vouchers |
891 |
53 |
285 |
277 |
276 |
Subtotal |
3,481 |
53 |
1,114 |
1,235 |
1,079 |
Home Purchase Assistance: |
|
|
|
|
|
HomeSight Program*** |
50 |
- |
- |
- |
50 |
Total Units Assisted |
25,794 |
2,952 |
14,712 |
4,826 |
3,211 |
Notes:
* Federally Subsidized projects include Section 8 (project based) Certificates, Section 202 Elderly, Section 811 Disabled, 221(d)(3), and 221(d)(4) projects.
** Levy Trust Fund assistance is included in the DHHS project based assistance count above.
*** Resale restrictions tied to deferred interest on 2nd Trust Deed.
Source: Seattle Department of Housing and Human Services, 1994. Totals may differ from those in the City of Seattle's 1994 CHAS due to different criteria used.
3. WHO ARE WE PLANNING FOR? -- SEATTLE'S HOUSEHOLD AND POPULATION TRENDS
The characteristics of the U.S. population have changed tremendously since the 1950s. The population is aging, households have become smaller and more diverse, and birth rates have dropped. The Seattle metropolitan area has not been immune to these changes. Both Seattle and King County have been following the national trends.
Since 1960, married couples with children in Seattle have declined by over 50 percent, from 65,106 households in 1960 to 31,624 households in 1990 (see Housing Figures A-821 and A-922). At the same time the number of single-parent families with children, single-person households and households with unrelated persons living together have all increased. Households composed of single parents with children have increased by over 100 percent from 7,648 in 1960 to 15,736 in 1990. Single-person households, which were not counted separately until 1980, have increased by 14 percent from 83,799 in 1980 to 94,179 in 1990. Households with unrelated persons living together have increased by 41 percent from 21,006 in 1980 to 29,554 in 1990. During the 1990s these trends have continue and are expected to continue during the life of the Comprehensive Plan.
In Seattle today, families composed of married couples with children account for only 13.4 percent of all households, and only 20 percent of all households include children (see Housing Figure A-821). About 40 percent of the city's households are single-person households, 12.5 percent are households with two or more unrelated persons, and 6.7 percent are single-parent households.
Seattle's average household size has declined from 2.7 persons per household in 1960 to 2.09 in 1990. This decline in average household size is again a national and regional phenomenon, and is not unique to Seattle.
Similar trends are occurring in King County as a whole. For example, the percentage of households with children in King County declined from 46 percent in 1960 to only 30 percent in 1990 (see Housing Figure A-1023).
These trends of increasing diversity of household types and smaller households are expected to continue over the next twenty years, for the nation, and for Seattle and King County. The demographic forecast for Seattle is discussed in greater detail under "Future Housing Needs" below.
Housing Figure A-218 (a)
SEATTLE HOUSEHOLDS BY HOUSEHOLD TYPE, 1960-2010
|
1990 - 2010 |
|||||||
Household Type |
1960* |
1970* |
1980 |
1990 |
2000 |
2010 |
Change |
% Change |
Single Person |
|
83,799 |
94,179 |
108,309 |
121,880 |
27,701 |
29.4% |
|
Family: Married with child |
65,106 |
49,140 |
32,430 |
31,776 |
36,500 |
35,097 |
3,321 |
10.5% |
Family: Married without child |
59,040 |
63,310 |
56,073 |
53,070 |
59,071 |
60,019 |
6,949 |
13.1% |
Family: Single with child |
7,648 |
10,916 |
15,063 |
15,853 |
17,964 |
19,371 |
3,518 |
22.2% |
Family: Single without child |
10,722 |
9,934 |
10,557 |
12,270 |
14,998 |
17,941 |
5,671 |
46.2% |
Non-family: 2+ persons with child |
|
1,078 |
882 |
1,171 |
1,194 |
312 |
35.4% |
|
Non-family: 2+ persons without child |
20,558 |
28,672 |
33,183 |
41,199 |
12,527 |
43.7% |
||
Total |
200,577 |
206,092 |
219,469 |
236,702 |
271,196 |
296,701 |
59,999 |
25.3% |
Housing Figure A-821 (b)
HOUSEHOLDS BY TYPE - PERCENTAGE DISTRIBUTION
Household Type |
1960* |
1970* |
1980 |
1990 |
2000 |
2010 |
Single Person |
38.1 |
39.8 |
39.9 |
41.1 |
||
Family: Married with child |
32.5 |
23.8 |
14.8 |
13.4 |
13.5 |
11.8 |
Family: Married without child |
29.4 |
30.7 |
25.5 |
22.4 |
21.8 |
20.2 |
Family: Single with child |
3.8 |
5.3 |
6.9 |
6.7 |
6.6 |
6.5 |
Family: Single without child |
5.3 |
4.8 |
4.8 |
5.2 |
5.5 |
6.0 |
Non-family: 2+ persons with child |
0.5 |
0.4 |
0.4 |
0.4 |
||
Non-Family: 2+ persons without child |
9.4 |
12.1 |
12.2 |
13.9 |
PERSONS PER HOUSEHOLD
1960 |
1970 |
1980 |
1990 |
2000 |
2010 |
2.70 |
2.48 |
2.14 |
2.09 |
2.03 |
1.93 |
* Prior to 1980, the census reported data for families with own child, as opposed to any child.
Source: U.S. Census of Population and Housing, 1990; Puget Sound Regional Council; Seattle Planning Department, 1992.
4. EXISTING AND FUTURE HOUSING NEEDS
The magnitude of the unmet housing need in the City of Seattle is significant. According to the census, the City has over 60,000 low-income households that meet the federal definition of households in need of assistance with the cost of housing -- about one quarter of the total number of households in the city. Over the next twenty years, forecasts developed by the Seattle Planning Department Strategic Planning Office (SPO) show that, under existing trends, about a quarter of the net new households in Seattle will be low-income households unable to afford the cost of the new market rate-housing built to accommodate growth.
a. Existing Housing Needs
Estimates of housing need are based on several measures available from the Census of Population and Housing. These include: the number of low-income households that spend more than 30 percent of their income for housing; the number of households living in overcrowded conditions; the number of households living in substandard conditions; and the number of homeless households. In addition to these quantitative measures, there are many special housing needs (such as persons with physical disabilities and refugees) that are more difficult to quantify. Some households with special needs are probably counted in the needs estimates from the census. Others may not appear as needy in the census data, but are housed in housing that is inappropriate or are unable to obtain critical housing support services.
Assessments of housing need are usually limited to the section of the population that is determined to be low-income. The federal low-income household definition is 80 percent of the area median income. Very low-income households have incomes below 50 percent of median income. While households with higher incomes may also have difficulty in affording housing or may not be able to purchase the kind of housing they desire, these households are assumed to have more options and alternatives than low-income households.
The above federal definitions of low-income housing can cause problems in communicating with the general public about low-income housing issues. Often members of the public perceive that all low-income housing is intended for households receiving public assistance. In fact, many low-income and very-low-income households are headed by persons who are employed in jobs that pay a low or modest wage. Some of these households might be very surprised to discover that they are considered low-income. Housing Figure A-24 below shows how wage levels in selected occupations match up with the standard low-income housing definitions.
Housing Figure A-24
LOW-INCOME HOUSEHOLD DEFINITIONS AND AVERAGE ANNUAL WAGE
LEVELS FOR SELECTED OCCUPATIONS IN KING COUNTY - 1990
|
Equivalent 1990 King County Household Income * |
Occupation |
1990 Average Annual Gross Wage ** |
Affordable Monthly Rent 1990 *** |
80% of median |
$28,943 |
Registered Nurse |
$28,368 |
$709 |
("low-income") |
Paralegal Assistant |
$27,384 |
$685 |
|
Computer Programmer |
$26,928 |
$673 |
||
Manager, Retail Store |
$24,252 |
$606 |
||
Welder |
$22,027 |
$551 |
||
Construction Laborer |
$21,694 |
$542 |
||
50% of median |
$18,090 |
Secretary I |
$17,604 |
$440 |
("very-low-income") |
Accounting Clerk II |
$17,478 |
$437 |
|
Data Entry Operator I |
$15,600 |
$390 |
||
Cook |
$14,914 |
$373 |
||
Nurse Aide |
$12,626 |
$316 |
||
Hotel Maid |
$11,585 |
$290 |
||
30% of median |
$10,854 |
Sales Clerk |
$10,545 |
$264 |
("extremely-low-income") |
Fast Food Worker |
$9,173 |
$229 |
* The King County median household income in 1990 was $36,179
** For occupations with wage levels listed at hourly rates, workers were assumed to work 40 hours per week.
*** Rent or house payment affordable to a household where these wages provide the sole income
Sources:
U.S. Census of Population and Housing, 1990; Washington State Employment Security Department, Annual Demographic Data, 1990, King County.
(1) Households Paying Too Much for Housing
According to the 1990 Census of Population and Housing, the City of Seattle has 60,189 households with incomes of below 80 percent of the King County median income and paying over 30 percent of their income for housing costs (see Housing Figure A-1225). This amounts to 25 percent of the City's households. Of these, 46,659 households had incomes under 50 percent of the King County median income.
Most of the households that pay too much of their income for housing are renters. Seattle has 47,855 low-income renters paying more than 30 percent of their income for housing, meaning that about 40 percent of all renter households living in the city are paying too much for housing. Detailed demographic analysis of households in need of assistance is presented below.
A number of caveats need to be raised about determining housing needs through census data. The City is using census data and standard definitions of low-income households in need in order to be consistent with federal requirements, the Growth Management Act procedural criteria, and other jurisdictions in King County planning under the Countywide policies. However there are reasons to believe that the census data overstates real need in a number of ways:
(2) Overcrowding
A second measure of housing need is overcrowding. The federal government considers a household to be living in overcrowded conditions when the number of persons per room exceeds 1.0. In 1990, 8,829 Seattle households were living in overcrowded conditions, amounting to 3.7 percent of all households. Most of these households are also low-income, and are therefore included in the figures for households overpaying for housing.
Housing Figure A-1225
MEASURES OF HOUSING NEED IN SEATTLE, 1990
1. Households paying too much of their income for housing. These are defined as households whose income is below 80 percent of King County's median household income, and who are paying more than 30 percent of their income for housing. |
||||
Housing Cost as Percentage of Income |
||||
Income* |
0% - 30% |
Over 30% |
Total |
Percent of Households Paying Over 30% |
0 - 30% |
10,022 |
29,224 |
39,246 |
74.5% |
30%-50% |
14,641 |
17,435 |
32,076 |
54.4% |
50%-80% |
32,666 |
13,530 |
46,196 |
29.3% |
Subtotal |
57,329 |
60,189 |
117,518 |
51.2% |
80%-100% |
20,339 |
5,526 |
25,865 |
21.4% |
Over 100% |
87,637 |
5,682 |
93,319 |
6.1% |
Total |
165,305 |
71,397 |
236,702 |
30.2% |
NOTE: Total Households overpaying = 60,189 (25.4% of total households). * Income is defined as a percentage of King County's median household income, which was $36,179 in 1990. |
2. Overcrowding. This includes all households with more than one person per room. |
||
Persons per room |
Households |
Percent of Total |
1.00 or less |
227,873 |
96.3% |
More than 1.00 |
8,829 |
3.7% |
Total |
236,702 |
100.0% |
3. Households lacking complete plumbing facilities. |
||
Plumbing Facilities |
Households |
Percent of Total |
With complete facilities |
235,319 |
99.4% |
Lacking complete facilities |
1,383 |
0.6% |
Total |
236,702 |
100.0% |
4. Homeless Populations The City of Seattle estimates that there are 3,800 - 4,300 homeless persons per night in Seattle, based on information from shelter providers (1993). |
Source: U.S. Census of Population and Housing - 1990, City of Seattle Planning Department, 1993.
Note: This data may not be consistent to similar data in the CHAS due to slight differences in methodology.
(3) Substandard Housing
Households living in substandard housing is another measure of housing need. The Census of Population and Housing evaluates housing condition by the lack of complete plumbing facilities. Less than 1 percent of Seattle housing units are substandard on this measure. While forty years ago the lack of complete plumbing facilities was a useful measure of housing condition (a significant percentage of units did not have complete plumbing facilities), this measure is almost irrelevant to Seattle in the 1990s.
Recent surveys of housing condition conducted by the City of Seattle indicate that Seattle generally has a well-maintained housing stock (City of Seattle Department of Community Development: Seattle Housing Condition: 1989 Survey and Trends). The survey evaluated a 10 percent sample of Seattle's housing units, rating buildings based on their exterior appearance. The scoring system used ranked structures on a scale of 1 to 4, where: 1 = sound; 2 = basically sound; 3 = deteriorated; and 4 = dilapidated. The overall average score was 1.68 with almost all units surveyed (98.6 percent) having no defects or only minor maintenance defects.
While appearing to be sound from outside, residential buildings often have code violations. The pilot study for Seattle's Rental Housing Inspection Program found that about ten percent of the city's housing in buildings with three or more units had code violations serious enough to warrant intervention by the City.
(4) Homelessness and Special Populations
A fourth component of housing need is the homeless population. The homeless were enumerated in the 1990 census as part of the "group quarters population", and were therefore not counted in the household data used to determine households in need of assistance. In January 1993, the City of Seattle estimated that on any given night there are an average of between 3,800 and 4,300 homeless persons in the city. This estimate was developed from data collected by homeless shelter providers.
In addition to households that need housing assistance solely for income-related reasons, there are a number of special populations whose need for housing and housing-related services is not met by the private market. These groups include: the frail elderly; single-parent families; persons with physical disabilities; substance abusers; persons with mental illness; persons with AIDS; refugees; victims of domestic violence; and runaway and parenting youth. The homeless population is also considered a special needs group. Homelessness is a complex problem that is only partially related to the cost or availability of housing. Other contributing factors include: increases in the number of families and individuals in poverty or at risk of poverty; lack of adequate treatment and support services for people who are alcoholic, chemically-dependent, or mentally ill; family instability from drug abuse and related activities; and domestic violence.
Some of these groups need specific types of housing that are unavailable or in short supply in the existing housing stock. For example, people with physical disabilities need affordable housing that is physically accessible. Other special needs groups, such as single-parent families, need specific services, such as affordable child care and job training and placement, along with affordable housing.
Needs which have been identified by the City as most critical are transitional housing and support for homeless families and individuals (especially youth) and persons with AIDS, and long-term housing and community support services for families and persons with seriously disabling conditions, including chronic alcoholism, chronic mental illness, developmental disabilities, and physical disabilities. The provision of services and support in conjunction with housing built for special populations is essential. The provision of housing alone is often insufficient to solve the problem.
Quantifying the number of special needs households needing assistance and reconciling these figures with data on low-income households in need is difficult. Because many of the households with special needs are also low-income households, many are already counted in the estimates of low-income households in need of assistance obtained from the Census. A more complete discussion of special needs households, including estimates of the number of households in some of the categories, may be found in the City's Comprehensive Housing Affordability Strategy (CHAS).2001-2004 Consolidated Plan.
(5) Detailed Demographic Characteristics of Households in Need
A more detailed analysis of housing need is possible through statistical cross-tabulations produced from 1990 census data available through the Public Use Micro Sample (PUMS). For this section of the needs analysis, households in need were defined as households with incomes of less than 80 percent of the area median income, who were paying more than 30 percent of their income for housing cost or were living in overcrowded conditions (more than 1 person per room). The total number of households determined to be in need through this measure in 1990 was 61,704.
(a) Housing Need by Household Size
Most Seattle households in need of assistance are small households (see Housing Figure A-26). Over half of Seattle's households in need are single-person households, and nearly 80 percent are households of two or less. The neediest households also tend to be very small. Most of the city's households in need that have extremely low-incomes (below 30 percent of the area median income) are single-person households.
(b) Housing Need By Income Level
Most low-income households in need in Seattle have very-low-incomes. Over 75 percent have incomes below 50 percent of median and 44 percent have incomes of less than 30 percent of median income (see Housing Figure A-27). .Many of these households are spending very high percentages of their income on housing. Nearly half of low-income households in need spend over 50 percent of their income on housing, while 25 percent spend over 70 percent of their income on housing. For these households, most of whom earn less than 30 percent of median income, the cost of housing seriously impairs their ability to meet other expenses, such as food, utilities and transportation.
(c) Housing Need by Household Type
Household types in need of assistance with housing costs are diverse, reflecting the full range of households living in Seattle (see Housing Figure A-28). Over half of the households in need (57.5 percent) are single people. Of these, over half (or 30.9 percent of the total) are single people under the age of 62 with no disabilities. Households with children account for 19.4 percent of households in need, a share that is about the same as the percentage of all households in Seattle that have children.
The type of housing assistance needed varies by household type:
Single persons:
The largest subgroup of households in need-- about 31 percent -- are single persons below the age of 62 with no disabilities. These individuals could be housed in studio or one-bedroom housing units.
Single persons with disabilities comprise approximately 7 percent of households in need. Some members of this group are mobility impaired, and require physically accessible housing; others have limitations on the amount or type of work they can do, or need assistance with personal care. Housing needs vary by type of disability.
Single-persons over 62 years of age comprise nearly 20 percent of households in need, with more than three-quarters of these being female. However, 34 percent of these elderly households (6.6 percent of the total) are "house-rich and cash-poor." This means they are living in owner-occupied homes, but have very limited incomes in relation to the cost of mortgage payments, property taxes, insurance and maintenance. These homeowners could benefit from legal accessory units, the existing senior property tax deferral, or reverse annuity mortgages.
Couples With Children:
Two-parent families with children represent nearly 9 percent of households in need. These households need units with at least two bedrooms, and may need as many as five, depending on age and sex of the children. These families also need access to secure outdoor play space.
Single Parents With Children:
Over 10 percent of households in need are single-parent households, and most of these are headed by a female. These households require units with between two and five bedrooms, and may have a stronger need for proximity to day care, in addition to the need for secure outdoor play space.
Couples Without Children:
Married and unmarried couples who do not have children make up over 11 percent of households in need. This group includes elderly couples. One bedroom units would accommodate these households.
Adult Group Households:
Accounting for 11.5 percent of households in need, these households are composed of groups of two or more adults, none of whom are partners. Each household member typically requires his or her own bedroom.
Housing Figure A-1329 below provides a summary of the type of units needed by household type. These figures do not necessarily represent new housing units that the City needs to build. Households in need can be served through existing housing that is acquired and rehabilitated by non-profit organizations or public development authorities, or through certificates or vouchers that can be used to pay for housing available in the private market.
Housing Figure A-2913
CITY OF SEATTLE EXISTING HOUSING NEED -
SIZE OF HOUSING UNITS NEEDED
Support Package* |
Studio |
One-Bedroom |
Two-Bedroom |
Three-Bedroom |
Four + Bedroom |
|
Single Persons |
4,100 |
30,700 |
||||
Couples without Children and Adult Groups |
4,700 |
4,800 |
1,800 |
350 |
||
Households with Children ** |
7,350 |
3,750 |
570 |
|||
TOTAL |
4,100 |
30,700 |
4,700 |
12,150 |
5,550 |
920 |
*A support package could include repairs, weatherization or other rehabilitation assistance which allows a homeowner to remain in his or her home. In some cases, installation of an accessory unit would be appropriate.
** For purposes of analyzing the numbers of bedrooms needed for households with children, all were assumed to be between the ages of 5 and 18, and equally distributed between males and females.
Source: 1990 U.S. Census of Housing and Population, Public Use Micro-Sample (PUMS)
Another indicator of the type of households most in need of assistance is the Seattle Housing Authority waiting list for subsidized housing (see Housing Figure A-30). This data can be misleading because some households, such as single non-elderly households with no disabilities, are ineligible for public housing. In 1993, a total of 12,627 households were on the waiting list. Of these, over half (6,769) were small family households needing two and three bedroom units. The large number of families on the waiting list reflects past success in developing small units for the elderly and disabled, and the fact that most of the Seattle Housing Levy funds allocated to build small family units are among the last to be spent, meaning that many new units for small family units will be built over the next two years.
b. Future Housing Needs
Future housing needs will reflect the amount of residential growth the City will accommodate over the next twenty years and expected demographic changes.
Income forecasts developed by the Planning Department SPO predict show that, under existing trends, about a quarter of the additional 50,000 to 60,000 households the City expects has targeted to add in the next 20 years will be low-income households unable to afford the cost of the new market-rate housing built to accommodate growth (see Housing Figure A-1431). Some of these new households may be able to afford older existing housing units available in Seattle. However, Seattle's existing low-cost housing is already occupied by our current low-income households. These households are also unable to afford the cost of the new market-rate housing.
The demographic forecast prepared for this plan predicts a continuation of trends that have been evident over the past twenty years. The average household size is expected to continue to decline but at a slower rate than in the past. Household sizes are expected to drop from 2.09 in 1990 to 1.93 in 2010. The mix of household types is expected to continue to change, with families with children declining as a percentage of all households, and single-person households and non-family households with two or more people increasing their proportion (see Housing Figure A-21). Single-person households are predicted to account for 46 percent of the net added households over the next twenty years, while another 21 percent will be non-family households with two or more persons. National forecasts are predicting big increases in the numbers of elderly single people and single adults over the age of 45. Only 12 percent of the new households are expected to include children.
Changing housing needs related to age are revealed by the population forecast by age (see Housing Figure A-1532). Significant numbers of people will be moving into the 45 to 64 age cohort over the twenty years, possibly indicating an increase in demand for smaller housing units and for different types of housing. Another important expected change is the increase in the number of elderly people over 85 years old. The number of people 85 years or older will increase by 80 percent over the next twenty years, reflecting increasing life expectancy. More frail elderly people will mean an increase in demand for assisted living or congregate-care facilities, and housing support services that allow the elderly to live independently.
The small percentage of future Seattle households that are expected to have children, and the growing numbers of "empty-nesters", other couples without children and single-person households, have significant implications for City land use policy over the next twenty years. Given consumer preferences for ground-related housing, demand for small-lot single-family houses, townhouses, small cottages, and condominium units in small buildings is expected to increase. In addition, a growing number of households will likely be interested in converting a portion of their homes into an accessory housing unit.
Housing Figure A-1431
INCOME AND HOUSING DEMAND OF NET ADDED HOUSEHOLDS:
CITY OF SEATTLE, 1990 - 2010
Income Group ($ thousands)* |
Added households 1990 - 2010 |
Affordable Monthly Payment ($) ** |
New Housing Demanded *** |
0-5 |
278 |
0-125 |
subsidized rental units |
5-10 |
3,199 |
125-250 |
|
10-15 |
3,779 |
250-375 |
|
15-20 |
4,678 |
375-500 |
|
20-25 |
5,426 |
500-625 |
|
Subtotal |
17,360 |
||
25-30 |
5,009 |
625-750 |
small to average rental units; |
30-40 |
4,689 |
750-1000 |
small owner-occupied units |
Subtotal |
9,698 |
||
40-50 |
4,064 |
1000-1250 |
small to average owner-occupied units, larger rental units |
50-60 |
5,591 |
1250-1500 |
|
60-75 |
6,298 |
1500-1875 |
|
Subtotal |
15,953 |
||
75-100 |
7,658 |
1875-2500 |
large owner-occupied units |
100+ |
9,125 |
2500+ |
|
Subtotal |
16,783 |
||
Total |
59,794 |
* All data are in constant 1989 dollars
** Because the income forecast indicates that real household income will increase 12.9 percent over the 20 year period, and because housing prices tend to increase commensurately with incomes, real housing prices in 2010 will probably be 10 to 15 percent higher than today
*** This column is included to illustrate the range of likely housing demand attributable to net growth. The housing market is much more complex than shown here. Housing units vary significantly in price depending on size, type, location, and construction quality. Housing consumers vary in the amount of equity they have available, which affects their ability to purchase housing.
Source: City of Seattle Planning Department 1992
Housing Figure A-1532
SEATTLE POPULATION BY AGE 1960 - 2010
1990 - 2010 |
||||||||
Age |
1960 |
1970 |
1980 |
1990 |
2000 |
2010 |
Change |
% Change |
0 - 4 |
51,946 |
34,994 |
24,235 |
29,269 |
28,272 |
26,019 |
-3,250 |
-11.1% |
5 - 15 |
99,850 |
83,903 |
50,707 |
47,701 |
58,659 |
53,201 |
5,500 |
11.5% |
16 - 24 |
66,712 |
95,813 |
89,268 |
70,203 |
66,698 |
80,037 |
9,834 |
14.0% |
25 - 34 |
66,277 |
67,315 |
106,595 |
112,098 |
93,672 |
91,531 |
-20,567 |
-18.3% |
35 - 44 |
76,922 |
50,655 |
49,028 |
93,285 |
113,872 |
90,801 |
-2,484 |
-2.7% |
45 - 64 |
128,583 |
128,499 |
97,839 |
85,303 |
119,912 |
150,727 |
65,424 |
76.7% |
65 - 84 |
63,146 |
63,554 |
68,120 |
69,129 |
70,475 |
79,223 |
10,104 |
14.6% |
65+ |
3,651 |
6,098 |
8,054 |
9,271 |
12,961 |
16,710 |
7,439 |
80.2% |
Total |
557,087 |
530,831 |
493,846 |
516,259 |
564,521 |
588,259 |
72,000 |
13.9% |
Source: U.S. Census of Population and Housing, 1990; Puget Sound Regional Council; Seattle Planning Department.
APPENDIX B:
Land and Development Capacity for Housing Types
Referenced by GMA and Countywide Policies
The Growth Management Act and the King County Countywide Policies require that jurisdictions identify sufficient land available for various types of housing. Specifically, the GMA requires that the city identify sufficient land for government-assisted housing, housing for low-income families, manufactured housing, multifamily housing, and group homes and foster care facilities. The Countywide policies add the following to this list: facilities for other special populations; accessory dwelling units; and townhouses/attached single-family houses.
Housing Figure A-33 below presents data on the availability of housing development opportunities within the City of Seattle for the above housing types. Because Seattle is a developed city, with relatively little vacant land, opportunity to build housing through the redevelopment of existing developed parcels is much more important than the opportunities available to build on vacant land. Consequently, the table shows housing development opportunities available under the City's total zoned development capacity as well as those available through the development of vacant land. Because the existing housing stock may also be used in many cases, the existing housing stock is also included where appropriate.
The City of Seattle's land use policies and regulations are very liberal, allowing most types of housing referenced by the GMA and Countywide policies in most locations (see Housing Figure A-34). The City does not anticipate any shortage of opportunities to develop any of the specific housing types over the twenty year life of this plan.
Housing Figure A-33 shows the maximum theoretical capacity for each housing type, in terms of land, zoned development capacity and existing housing stock, if appropriate. Obviously not all land, development capacity, or existing housing stock will necessarily be available for the referenced housing types given that all other housing demand must be accommodated at the same time. One important caveat should be noted. The City's 1994 Comprehensive Housing Affordability Strategy (CHAS) generally restricts assisted rental housing to no more than 30 percent of the housing stock in each census block group, except within downtown Seattle. The locational policies include outright exceptions for mixed-income projects and a long list of circumstances where projects may qualify for a waiver from the 30 percent limit. To provide a conservative estimate of capacity for government-assisted housing, the figures for total land available, total development capacity available, and capacity in the existing housing stock, were reduced to 30 percent of maximum in areas outside Downtown. Under this policy the City would have capacity for about 128,000 assisted rental housing units, compared to the current assisted stock of about 25,000 units. The policy is not expected to constrain the provision of assisted rental housing. Less than 10 percent of the City's housing stock is currently assisted. The most optimistic projection of assisted housing development would increase that to no more than 15 percent of the total housing stock over twenty years. This percentage would amount to a total of no more than 47,000 assisted housing units.
Housing Figure A-33
LAND, ZONED DEVELOPMENT CAPACITY, AND EXISTING HOUSING STOCK
AVAILABLE FOR HOUSING TYPES REFERENCED BY THE GMA AND
COUNTYWIDE POLICIES
Total Land Available (Acres) |
Total Vacant Land Available (Acres) |
Total Development Capacity Available (Units) |
Unused Development Capacity Available (Units) |
Capacity in Existing Housing Stock (Units) |
|
Government Assisted Housing |
9,382 |
1,348 |
128,407 |
30,376 |
80,483 |
Housing for Low-Income Families |
30,360 |
1,348 |
289,458 |
101,252 |
187,938 |
Group Homes |
30,360 |
1,348 |
354,268 |
101,252 |
252,748 |
Foster Care Facilities |
30,360 |
1,348 |
354,268 |
101,252 |
252,748 |
Facilities for Other Special Populations |
30,360 |
1,348 |
354,268 |
101,252 |
252,748 |
Manufactured Housing |
25,168 |
864 |
-- |
7,385 |
-- |
Multifamily Housing |
6,930 |
616 |
220,374 |
97,010 |
-- |
Accessory Dwelling Units |
23,430 |
732 |
120,510 |
4,510 |
116,000 |
Townhouses/Attached Single-Family Houses |
1,738 |
132 |
47,310 |
16,560 |
-- |
Source: City of Seattle Planning Department, July 1994. See Land Use Appendices for detailed data by Land Use Zone.
Housing Figure A-34
RESIDENTIAL USES PERMITTED BY LAND USE ZONE
Residential Uses |
|||||||||
Zone |
Single Family Dwellings |
Multifamily Structures |
Congregate Residences |
Nursing Homes |
Floating Homes |
Mobile Home Parks |
Artist Studio/ Dwellings |
Caretakers Quarters |
Manufactured Housing |
Single Family |
P |
X |
X |
P |
X |
X |
X |
X |
P |
Multifamily |
P |
P |
P |
P |
X |
X |
X |
X |
P |
Neighborhood Commercial |
P/ACU |
P/ACU |
P/ACU |
P |
P |
X |
P/ACU |
P/ACU |
P/ACU |
Commercial 1 |
P/ACU |
P/ACU |
P/ACU |
P |
P |
P |
P/ACU |
P/ACU |
P/ACU |
Commercial 2 |
ACU |
ACU |
ACU |
P |
P |
ACU |
ACU |
P |
ACU |
Downtown, except DH1 |
P |
P |
P |
P |
P |
P |
P |
P |
P |
Downtown DH1 |
X |
X |
X |
X |
X |
X |
X |
X |
X |
Industrial |
X |
X |
X |
X |
X |
X |
ACU |
P |
X |
Key
|
ACU = Administrative Conditional Use Permit |
X = Prohibited |
Please see next page for definitions.
DEFINITIONS:
Dwelling Unit: a room or rooms located within a structure, designed, arranged, occupied or intended to be occupied by not more than one (1) household and permitted roomers or boarders, as living accommodations independent from any other household. The existence of a food preparation area within the room or rooms shall be evidence of the existence of a dwelling unit.
Household: a housekeeping unit consisting of any number of related persons; eight or fewer non-related, non-transient persons; or eight or fewer related and non-related nontransient persons, unless a grant of special or reasonable accommodation allows an additional number of persons.
Single Family Dwelling Unit: a detached structure containing one dwelling unit and having a permanent foundation.
Accessory Dwelling Unit: an additional room or set of rooms located within an owner-occupied single-family structure and designed, arranged, occupied, or intended to be occupied by not more than one household as living accommodations.
Multifamily Structure: a structure or portion of a structure containing two or more dwelling units.
Nursing Home: a residence, licensed by the state, which provides full-time convalescent and/or chronic care for individuals who, by reason of chronic illness or infirmity, are unable to care for themselves.
Floating Home: a dwelling unit constructed on a float, which is moored, anchored or otherwise secured in the water.
Mobile Home Park: a residential use in which a tract of land is rented for the use of more than one mobile home occupied as a dwelling unit.
Artist Studio: a combination working studio and dwelling unit for artists, consisting of a room or suite of rooms occupied by not more than one household.
Caretakers Quarters: a residential use accessory to a non-residential use consisting of a dwelling unit not exceeding 800 square feet of living area and occupied by a caretaker or watchperson.
Congregate Residences: A dwelling unit in which rooms or lodging with or without meals are provided for 9 or more non-transient persons.
Manufactured Housing: A single family dwelling unit built to standards for manufactured housing established by the Federal Department of Housing and Urban Development.
APPENDIX C:
Existing City of Seattle Housing Programs - 1993
The City of Seattle currently operates a myriad of housing programs covering the broadest spectrum of housing needs. The City's current mix of federal, state and local housing programs:
The City's housing programs are summarized in tabular form in Housing Figure A-35 below. This mix of programs is a challenge to summarize, because many funding sources can be used for multiple purposes. More detail on these programs, their funding levels, and the number of units produced can be found in the City of Seattle's 1994 Comprehensive Housing Affordability Strategy (CHAS).
Housing Figure A-35
EXISTING CITY OF SEATTLE HOUSING PROGRAMS - 1993
Fund Source |
Project Type |
Unit Type |
Resident Type* |
Income Range |
Notes |
|
New Construction and Rehabilitation Programs |
||||||
Low Income Housing Levy |
City Voted Levy |
New/Rehab/Rent Subsidy |
All |
Renters |
<50%; 50% <30% |
Expires 1994 |
Multi-Year/Matching Fund |
City REET Bonds |
New/Rehab |
All |
Renters |
<50%; 50% <30% |
REET limited by WA Law |
Community Development Loan Fund |
City CDBG |
New/Rehab |
All |
Renters |
<50% |
Provides up front, high risk funds |
Home Investment Partnership (HOME) Program |
HUD |
New/Rehab |
All |
Renters |
<80% |
Federal Housing Act of 1990 |
Low Income Tax Credit Program |
Federal Tax Law |
New/Rehab |
All |
Renters |
<60% |
Permanently extended in 1993 Budget |
SHA Scattered Site Housing |
City Levy/HUD |
New/Rehab |
2+ bedrooms |
Family Renters |
<50% |
Joint City/SHA program |
Federal Section 202 Elderly Housing |
HUD |
New/Rehab |
Assisted Living |
Elderly Renters |
<80% |
Supportive housing |
Federal Section 811 Handicapped |
HUD |
New/Rehab |
Assisted Living |
Disabled Renters |
<80% |
Supportive housing |
State Housing Assistance Program |
Washington State DCD |
New/Rehab |
All |
Renters |
<80% |
Very low-income and special needs pref. |
King County Housing Opportunities Program (HOP) |
King County |
New/Rehab |
All |
Renters |
<80% |
REET funded in 1993 |
Housing Rehabilitation Only Programs (for renters) |
||||||
Multifamily Fund |
City/CDBG |
Rehab |
Apartments |
Renters |
<50% |
Most flexible City housing fund |
Multifamily Maintenance and Code Repair Program |
City Multi-Year Fund |
Rehab/Code Repair |
Apartments |
Renters |
<50% |
Requires annual fund allocation |
Section 8 Moderate Rehab. for Single Occupancy (SRO) |
HUD |
Rehab |
SRO's |
Single Homeless Persons |
<50% |
Competitive funding |
Public Housing Comprehensive Grant |
HUD |
Rehab |
Public Housing |
Renters |
<80% |
See SHA Programs |
Low-Income Housing Preservation Programs |
||||||
Federal Low-Income Housing Preservation Program |
HUD |
Rehab/low-income status preservation |
All |
Renters |
<80% |
Projects with expiring federal contracts |
Downtown Low-Income Housing Preservation |
||||||
Downtown Housing Preservation Program |
City Levy |
New/Rehab |
Apartments |
Renters |
<50% |
Levy allocation to produce 305 units |
Downtown Housing Maintenance Ordinance |
City CDBG |
Rehab |
Apartments |
Renters |
<50% |
Up to $6,000/unit for code repairs |
Downtown Growth Related Fund |
City Tax Increment |
Rehab |
Apartments |
Renters |
<50% |
Fund based on growth related tax increase |
Transferable Development Rights (TDR) & TDR Bank |
City/Private |
New/Rehab |
Apartments |
Renters |
<50% |
TDR Bank from Multi-year Fund |
Homeowner Assistance Programs |
||||||
Emergency Code Repair Programs |
City CDBG |
Rehab |
SF Houses |
Homeowners |
<80% |
Low interest loans for emergency repairs |
Home Repair Programs |
City CDBG |
Rehab |
SF Houses |
Homeowners |
<80% |
Five Non-profits contract with City |
Neighborhood Housing Rehabilitation Program |
SHA/City CDBG |
Rehab |
SF Houses |
Homeowners |
<80% |
Home repair programs are being reviewed |
Home Purchase Assistance Programs |
||||||
HomeSight Program |
City/HUD |
Home Purchase New/Rehab |
SF Houses, Twnhse., Condo. |
First time homebuyer families |
<80% City <115% HUD |
Targeted to Central and SE Seattle |
Housing Opportunities for People Everywhere (HOPE) |
HUD |
Home Purchase New/Rehab |
All |
First time homebuyer families |
<95% |
Emphasis on purchase of existing units |
Washington State Housing Finance Commission (WSHFC) |
Federal Tax Law |
Home Purchase |
SF Homes |
First time homebuyers |
<60% |
Statewide housing finance program |
I-90 Homeownership Programs |
City/State |
Home Purchase New/Rehab |
SF Homes, Twnhse., Condo. |
Homebuyers |
None |
Assistance available for low-income buyers |
Habitat for Humanity |
Private |
Home Purchase New/Rehab |
SF Homes, Twnhse., Condo. |
First time homebuyer families |
<50% |
Habitat has obtained sites from City |
Rental Assistance Programs |
||||||
Section 8 Certificates and Vouchers |
HUD/SHA |
New/Rehab/Rent Sub |
All |
Family Renters |
<50% |
Administered by SHA |
Rental Relocation Assistance Program |
City |
All |
All |
Renters |
<50% |
For loss of unit by demo/use change/rehab |
Seattle Housing Levy Trust Fund |
City |
New/rehab |
Apartments |
Renters |
<30% |
Provides operating assistance |
Seattle Housing Authority Public Housing Programs |
||||||
Public Housing Development |
HUD |
New/Rehab |
All |
Renters |
<50% |
Primary federal fund source for development |
Public Housing Operating Support |
HUD |
All |
All |
Renters |
<80% |
Primary federal fund source for operations |
Public Housing Comprehensive Grant |
HUD |
All |
All |
Renters |
<80% |
Primary federal fund source for rehab |
Public Housing Drug Abatement and Substance Abuse |
HUD |
All |
All |
Renters |
<80% |
Provides support funds for drug related effects |
Family Self-Sufficiency Program |
HUD |
All |
All |
Family Renters |
<95% |
Provides support services w/housing |
Community Development Block Grant Programs |
||||||
Housing Development Programs |
HUD/City |
All |
All |
Renters/Owners |
<80% |
Provides funding for multiple programs |
Homeless and Housing Services Programs |
HUD/City |
All |
All |
Renters/Owners |
<80% |
Provides funding for multiple programs |
Housing Finance Programs |
||||||
Community Reinvestment Act (CRA) |
Federal/Private |
All |
All |
Renters/Owners |
Varies by Program |
Variety of programs to meet local loan needs |
Washington Community Reinvestment Association |
Private |
All |
All |
Renters/Owners |
Varies |
Consortium of banks to meet local loan needs |
Washington State Housing Finance Commission |
State/Federal Tax Law |
All |
All |
Renters/Owners |
<60% |
Administers tax credit and tax exempt finance |
Housing Services Programs |
||||||
Emergency Shelter Grants |
HUD |
Rehab/Services/ Operating Costs |
Shelters |
Homeless |
<50% |
To improve quality of existing shelters |
Shelter Care Plus Program |
HUD |
Services/Rent Subsidy |
Shelters/ Apartments |
Homeless with disabilities |
<50% |
Housing and services for disabled homeless |
Housing Opportunities for Persons With Aids |
HUD |
Development/ Services/Rent Subsidy |
Assisted Living |
Persons with AIDS |
<80% |
Housing and services for Persons with AIDS |
The Supportive Housing Program |
HUD |
New/Rehab/Rent Subsidy |
Assisted Living |
Special Needs/ Homeless |
<50% |
Limited for new construction |
Supplemental Assistance for Facilities to Assist Homeless |
HUD |
Services |
Homeless Independence |
Homeless |
<50% |
Competitive grants for innovative programs |
Partnership for Homeless People |
City/HUD/Private |
Housing/Services |
Services/Rent Subsidy |
Homeless/Special Needs |
<50% |
Mayor's initiative to coordinate programs |
Weatherization Programs |
||||||
Low-Income Weatherization Assistance Program |
City/State/Federal/ Private |
Housing Weatherization |
All |
Renters/Owners |
<80% |
Combined programs for Weatherization |
* Resident Type includes single persons and families unless otherwise noted.
APPENDIX BD:
Residential Preference Study Executive Summary
Abstract
Metropolitan growth management, with its regional environmental and fiscal benefits, depends on making existing cities better places to live than new suburbs. The Residential Preference study explores the conditions under which people would choose to live in a dense city neighborhood instead of a suburb. Modern municipal and state approaches to growth management, focusing on land use regulation and transit, will increase the attractiveness of cities. Improving the quality of life in cities in ways not encompassed in most current growth management planning, such as reducing crime, increasing school quality, and increasing community, would also contribute to regional growth management.
Introduction
The City of Seattle is preparing a comprehensive plan to meet the requirements of the Washington Growth Management Act. Urban villages will play a major role in this plan. Urban villages are conceived as well identified and largely self-contained residential and commercial neighborhoods in the central city. Residential densities in urban villages would be high enough to encourage walking, support efficient transit service, and provide adequate markets for neighborhood stores. Existing and new urban villages would accommodate most or all the population growth planned for Seattle in the next 20 years.
While this plan was being prepared, questions arose about the viability of urban villages. How can we attract people to live in urban villages? In particular, how can we compensate for the perceived disadvantages of density? How many people will be attracted to urban villages? Who will they be? To answer these questions, the Seattle Planning Department and the Puget Sound Regional Council have been conducting a study of the residential preferences of people in King County, Washington.
Method
The method of the study was analogous to market research for new product development. The study had three empirical phases. The first phase was a telephone survey of 600 residents of Seattle and the rest of King County. The purpose of this survey was to determine the features of a house and a neighborhood that are most important to people. The second phase was a series of focus groups with respondents to the first survey. The purpose of the focus groups was to confirm our interpretation of the results of the survey and to probe for important features that may have been omitted from the survey. The third phase was a conjoint experiment mailed to 400 residents of Seattle and King County.
A conjoint experiment is a form of survey in which respondents rank descriptions of alternative items in order of preference. In this case the alternative items were different combinations of the features of a house and a neighborhood revealed by the first survey and the focus groups to be generally desirable. From respondents' rankings of the descriptions, we can infer the relative importance of each feature to each respondent. This allows us to define segments of the residential market, based on preferences, and it allows us to estimate the market shares of residential alternatives in different scenarios, or alternative futures.
Major Findings
1. On a scale of preference, townhouses and buildings with 2 to 5 units occupy an intermediate position between a detached single family house and a building with 6 or more units. Imagine a scale on which a single family house is a 10 and a building with 6 or more units is a 0. For the population as a whole, a townhouse would be a 7, and a unit in a building with 2 to 5 units would be a 3. For a significant minority, a townhouse or unit in a small multifamily building is preferable to a single family house.
2. For slightly more than 1/3 of the population, housing type is more important than any other dimension of a house or a neighborhood. For slightly less than 1/3, home ownership is more important than anything else, including housing type. For the final 1/3, many other things are more important than living in a single family house, including ease of housing affordability, commuting time and transit quality, urban amenities and culture, nearby neighborhood businesses, parks and trees, school quality, crime, and the strength of community.
3. Neighborhood parks, trees and greenery, good public transit, good access to neighborhood businesses, and design that gives a sense of openness have a significant impact on the desirability of dense city neighborhoods. When these features are added to city multifamily homes, the estimated percentage of the county population who would prefer these homes over other residential alternatives approximately doubles, from 9% to 17%. This occurs even if schools and crime are worse in the city than in the suburbs. The latter percentage is roughly the percentage of the county population planned for urban villages in Seattle's Draft Comprehensive Plan.
4. If townhouses were to become a significant housing option in urban villages, the percentage of the population who would prefer the urban village over other alternatives increases to about 22%. Most of those who would prefer to live in urban village townhouses would otherwise have chosen single family houses in the city or the suburbs.
5. If, along with the improvements listed in #3 above, school quality and crime were the same in the city and the suburbs, and urban villages became places with a strong sense of community, the attractiveness of urban villages would increase further. Under these conditions, more than 1/3 of the population would prefer an urban village apartment, condominium, or townhouse to multifamily housing outside the city or to a single family house anywhere.
6. What people want in a residence depends in part on how old they are, whether they have children, and how much money they have.
Households with children care more than households without children about housing type and school quality. Households without children care more than households with children about housing affordability, travel time to work, transit quality, nearby neighborhood businesses, urban amenities, and crime. As a result, households with children are much less likely than households without children to choose to live in an urban village, unless city schools are equal to suburban schools and townhouses are available.
Middle-aged people care more than the elderly and the young about housing type, and young people care the least. Young people care less about home ownership and neighborhood density, and more about housing affordability, travel time to work, urban amenities, and nearby parks. The elderly and the young care more about transit quality and crime. As a result, the young and the elderly are more likely than the middle-aged to prefer an apartment or condominium in an urban village.
Households with incomes above the median care more than households with incomes below the median about housing type and home ownership. Households with incomes below the median care more than households with incomes above the median about housing affordability, transit quality, and nearby neighborhood businesses. As a result, households with incomes below the median are much more likely than households with incomes above the median to prefer an apartment or condominium in an urban village. Urban village townhouses would attract approximately the same share of each income group.
7. Urban villages will appeal most to people who already live in the central city. Seattle residents care less than residents of the rest of the county about housing type and home ownership, and may care less than residents of the rest of the county about school quality and crime. Seattle residents care more than residents of the rest of the county about housing affordability, travel time to work, transit quality, nearby neighborhood businesses, and urban amenities. As a result, Seattle residents are much more likely than residents of the rest of the county to prefer an urban village home, whether it is an apartment, a condominium, or a townhouse. Depending on school quality, the level of crime, and the affordability of single family houses in the city, between one-third and one-half of Seattle residents would choose the urban village over other residential alternatives.
APPENDIX E:
Analysis of City's Ability to Meet Countywide
Low-income Housing Production Targets
Introduction
In order to encourage a more rational and equitable distribution of low-income housing within King County, the King County Countywide Planning Policies establish low-income housing production targets for each jurisdiction in King County. Over the next twenty years, Seattle's targets are to produce or preserve housing equivalent to 20 percent of expected household growth in Seattle affordable to households with incomes below 50 percent of median income and 17 percent of household growth affordable to households between 50 and 80 percent of median income. Other jurisdictions in King County with relatively high concentrations of low wage jobs and relatively low concentrations of low-cost housing have slightly higher targets -- the equivalent of 24 percent of housing affordable to households with incomes of between 0 and 50 percent of median. Housing may be new construction or existing housing that is acquired, rehabilitated and preserved for long term low-income occupancy.
Objectives Behind Countywide Targets
In establishing these countywide housing targets, jurisdictions in King County began with the objectives of: a) producing enough housing affordable to low-income households to meet future or "new" needs over the next twenty years (i.e. needs resulting from growth); and b) beginning to address the geographic imbalances in the location of assisted low-income housing in King County. If the targets are achieved, sufficient housing affordable to the net new low-income households in King County will be produced and low-income housing will be distributed more evenly within King County than today. Jurisdictions agreed that achieving the targets would be difficult, but that it was important that fairly ambitious goals be established if King County is to make any inroads into the overall shortage of affordable housing.
Countywide Approach to Meeting Existing Needs
At the same time, jurisdictions recognized that the magnitude of unmet existing housing needs in King County is significant. The Countywide policies identify existing needs as the joint responsibility of all jurisdictions and require all jurisdictions to participate in the development of countywide resources and programs to assist the large number of low and moderate income households who currently do not have affordable, appropriate housing.
A number of points are important to note with respect to meeting existing needs:
Discrepancy between Countywide Targets and Existing Trends
An apparent discrepancy exists between Seattle's low-income targets under the Countywide Policies and the City's own estimate of future households unable to afford new market rate housing under existing trends (see Housing Appendix A: Future Needs). As a result of the Countywide Affordable Housing Policies, the City of Seattle's target of producing housing affordable to households with income below 50 percent of median income, the equivalent of 20 percent of future household growth, does not match up with the approximate percentage of net new households predicted to be unable to afford new market-rate housing under existing trends, which is about 25 percent of the net new households. This anomaly occurs because the intent of the Countywide Policies is to gradually redistribute low-income housing in the County to produce a more "rational and equitable" distribution. Some households that under existing trends would probably have been housed in Seattle, because no other options would have been available, will be housed elsewhere in the County under the new Countywide Policies. Also note that the 25 percent figure in Housing Appendix A is an estimate, and strictly speaking is an estimate of those households that would be unable to afford new market-rate housing. Some of these households would be able to afford existing older units that may be available within the city's existing housing stock.
Evaluation of City of Seattle's Ability to Meet the Countywide Targets
This section demonstrates the ability of the City of Seattle to meet the Countywide low-income housing targets. In order to provide a conservative analysis, this evaluation is based on the higher end of the range for projected household growth established in the City's comprehensive plan. Housing Figure A-36 shows the anticipated range of annual funding available for funding the production of low-income housing. Funding for low-income housing comes from a number of federal, state and local sources. Programs and appropriation levels change frequently, resulting in funding levels that are relatively unpredictable over time. Funding could range from $17 million to $43.5 million per year (1993 dollars). The high end of the range would require voter approval of a series of local housing levies over the next twenty years.
Housing Figure A-37 shows the number of low-income housing units that could be produced if the resources available were allocated to different income groups below 80 percent of median income. Subsidy costs increase as household incomes decrease. While capital development subsidies are needed for households between 30 and 50 percent of median, housing serving households below 30 percent of median requires operating subsidies in addition to the initial development subsidies, resulting in very high subsidy costs per unit. If all resources were targeted to the 30 to 50 percent of median income group and the medium funding scenario occurs then there would be sufficient financial resources available to build 628 units low-income units per year, or about 12,560 units over the life of the plan. The actual number of units the City will produce could be higher or lower than this depending on the level of funding the City receives, and the degree to which funds are used to target production of housing for households with incomes lower or higher than the 30 to 50 percent of median income group.
Housing Figure A-38 illustrates the cost of producing low-income housing equivalent to 20 percent of residential growth if all very-low-income housing were produced through public subsidy. The figure also illustrates how the cost of producing low-income housing varies depending on how resources are allocated to households with incomes between 0 and 30 percent of median income and between 30 and 50 percent of median income. If all housing below 50 percent of median were produced through public subsidy then the cost would range from $36 million per year to $40 million per year, close to the high end of the range of expected funding.
Housing Figure A-39 illustrates an estimate of housing likely to be produced over the next twenty years under Seattle's Comprehensive Plan. The primary purpose of this chart is to illustrate the likely production of housing affordable to households below 80 percent of median income through private development. The Planning Department expects that a substantial portion of new market-rate housing would be affordable to households below 80 percent of median. All accessory apartment production is assumed to be affordable to households below 80 percent of median, with a portion affordable to households at 50 percent of median. A key assumption in developing these figures was that real land costs, development costs and housing prices would not change appreciably in relation to incomes over the life of the Comprehensive Plan. If housing costs increase faster than incomes then less affordable housing would be supplied by the private market.
To ensure a conservative estimate in the price range most susceptible to inflationary forces in the housing market, the 50 to 80 percent of median income category, estimates for rental housing affordable to 50 to 80 percent of median income were based on the proportion of rental housing developed in the last five years affordable to the 50 to 70 percent of median income category.
Housing Figure A-40 illustrates how Seattle could meet the Countywide low-income housing goals. The Countywide goals are based on the amount of household growth each jurisdiction expects to accommodate. Seattle is planning for a range of household growth of between 50,000 and 60,000 additional households over the next twenty years. Again, in order to provide a conservative analysis, the high end of the growth range is assumed in the analysis for Housing Figure A-40.
Based on the analysis presented in Housing Figure A-39, more than enough privately developed rental housing affordable to the 50 to 80 percent of median income group would likely be developed to meet the Countywide goal. Units affordable to households between 0 and 50 percent of median income would be produced through: direct public development subsidies; additional public subsidies in the form of rent certificates and vouchers; low-income units produced and preserved by private developers through existing incentive zoning mechanisms; and through private development of small accessory apartment units within existing single-family homes. Assuming that subsidies available for the production and preservation of low-income housing are $30.25 million per year (1993 dollars), which is the midpoint of the potential range of funding presented in Housing Figure A-36, then it is likely that sufficient housing would be developed in the 0 to 30 percent and 30 to 50 percent of median income ranges to meet the Countywide goal. Approximately 12,480 additional units of housing affordable to households between 0 and 50 percent of median would be developed or provided through rent subsidies over twenty years.
This analysis leads to the conclusion that the City will be successful in meeting the Countywide low-income housing goals.
Housing Figure A-36
ESTIMATED RANGES
OF ANNUAL FUNDING SUBSIDIES AVAILABLE FOR HOUSING PRODUCTION
IN THE CITY OF SEATTLE (1993 DOLLARS)
Category |
Fund Source |
Low Estimate ($ million) |
High Estimate ($ million) |
City Funding Sources |
Housing Levy |
0 |
6 |
Growth Related Fund |
1 |
1 |
|
REET |
2 |
3 |
|
Downtown Housing Bonus/TDR |
2 |
4 |
|
Subtotal |
5 |
14 |
|
Other Local Funds |
King County HOF |
0 |
1 |
Private Funding |
1 |
3 |
|
Subtotal |
1 |
4 |
|
State Funding Sources |
Housing Assistance Program |
2 |
4 |
Subtotal |
2 |
4 |
|
Federal Funding Sources |
HOME (entitlement) |
2 |
4 |
Community Development Block Grant (rehab. only) (entitlement) |
0.5 |
1 |
|
202/811 (competitive) |
1 |
2 |
|
Tax Credits (competitive) |
3 |
6 |
|
Public Housing Development (competitive) |
0.5 |
1.5 |
|
McKinney (competitive) |
1 |
4 |
|
Other Federal (competitive) |
1 |
3 |
|
Subtotal |
9 |
21.5 |
|
TOTAL |
17 |
43.5 |
Note: These are estimates of funds available for housing production only. They do not include ongoing direct rent subsidies, weatherization funds, operating subsidies for existing housing, or other housing support funds. Sources for above estimates include the 1992 and 1993 CHAS, DHHS memorandums and consultations with DHHS.
Housing Figure A-37
CITY OF SEATTLE POTENTIAL ANNUAL LOW-INCOME HOUSING PRODUCTION
(% of median) |
Low Estimate $17 million |
Medium Estimate $30.25 million |
High Estimate $43.5 million |
0% - 30% |
215 units |
384 units |
552 units |
31% - 50% |
353 units |
628 units |
903 units |
51% - 80% |
1,399 units |
2,490 units |
3,582 units |
Estimates are based on the following assumptions about production and operating subsidy costs for each income category: |
|||
0% - 30% = $78,144 capital requirement for production and operating costs, including capital fund share for operating cost shortfall. Rents affordable to this group do not even cover basic operating costs of the unit. 31% - 50% = $48,144 capital requirement to reduce production costs. 51% - 80% = $12,144 capital requirement to reduce production costs. |
|||
Additional Assumptions: Unit Size = 700 square feet; Interest Rate = 8%. Source: City of Seattle Planning Department - 1992 |
Housing Figure A-38
ESTIMATED COST OF ACHIEVING LOW-INCOME HOUSING PRODUCTION GOALS
A. Units Produced
|
0-30% of Median Income |
30-50% of Median Income |
Totals |
1. 50% of units allocated to 0-30% of median income |
6,000 |
6,000 |
12,000 (1) |
2. 50% of funds allocated to 0-30% of median income |
4,593 |
7,407 |
12,000 |
3. Funds allocated based on need(2) |
7,560 |
4,440 |
12,000 |
B. Funds Required over 20 years
|
0-30% of Median Income |
30-50% of Median Income |
Totals |
1. 50% of units allocated to 0-30% of median income |
$469 million |
$289 million |
$758 million |
2. 50% of funds allocated to 0-30% of median income |
$358 million |
$358 Million |
$716 million |
3. Funds allocated based on need(2) |
$591 Million |
$214 Million |
$805 million |
C. Funds Required Annually
|
0-30% of Median Income |
30-50% of Median Income |
Totals |
1. 50% of units allocated to 0-30% of median income |
$23 million |
$14 million |
$37 million |
2. 50% of funds allocated to 0-50% of median income |
$18 million |
$18 million |
$36 million |
3. Funds allocated based on need(2) |
$29 million |
$11 million |
$40 million |
(1) The City is planning for net growth of 60,000 housing units. The Countywide goal is "...that 20% be affordable to 0-50% of median income."
(2) Based on 1990 Census which indicates that 63% of households between 0% and 50% of median income are at less than 30% of median income.
Note: See Housing Figure A-37 for unit subsidy costs by income category.
Housing Figure A-39
ESTIMATED HOUSING PRODUCTION IN THE CITY OF SEATTLE, 1994-2014
Estimated net housing unit growth of 63,108 units
Estimated gross housing unit growth of 70,556 units
Estimated replacement/redevelopment/demolition of 7,445 units
Number of Gross New Housing Units By Affordability (as percentage of median income) |
||||
Housing Type |
0-50% |
50-80% |
80-120% |
120% + |
Single Family Homes |
--- |
--- |
--- |
6,000 |
Condominiums/Townhouses |
--- |
1,239 |
5,268 |
8,986 |
Multifamily Market-Rate Rental Units |
--- |
18,172 |
19,349 |
3,042 |
Accessory Apartments |
625 |
1,875 |
--- |
--- |
Publicly-Subsidized Housing |
6,000 |
--- |
--- |
--- |
Total |
6,625 |
21,286 |
24,617 |
18,028 |
Estimated Number of Units Replaced/Redeveloped/Demolished |
||
Housing Type |
Number of Units |
Affordability Range |
Single Family |
3,463 |
80 - 150% median |
Multifamily |
3,694 |
40 - 80% median |
Notes:
1. This table shows gross new housing units needed to accommodate 60,000 additional households.
2. Affordability of future condominiums and townhouses is based on current available information about new sales of condominiums. The number of condominiums and townhouses estimated assumes an increased share of multifamily construction in the future will be condominiums and townhouses (source: Property Dynamics, 1993).
3. Affordability of multifamily rental apartments is based on available data on rents for newly constructed rental units within Seattle, by neighborhood. The percentage of units likely to be affordable to the 50 to 80 percent group is based on the current percentage of units affordable to households with incomes below 70 percent of median (source: Cain and Scott, 1993).
4. Twenty-five percent of accessory apartments are assumed to be affordable to households earning between zero and 50 percent of median income, with the remaining units affordable to households earning between 50 and 80 percent of median. The number of accessory apartments is based on the 2,500 new unit threshold established in the accessory apartment ordinance which triggers an evaluation process and necessitates reauthorization of the legislation if more accessory units are to be permitted.
5. The estimate of redeveloped units is based on the City's zoned development capacity analysis and is only an estimate of potential, not planned demolitions.
Housing Figure A-40
COMPARISON OF COUNTYWIDE HOUSING PRODUCTION GOALS AND PROJECTED SEATTLE HOUSING PRODUCTION BY TYPE AND SOURCE
1994 - 2014
|
Income Groups |
||
0-30% |
30%-50% |
50%-80% |
|
Countywide Goal |
6,000(3) |
6,000 |
10,200 |
Public Subsidy |
|||
Estimated Publicly Subsidized(1) |
4,500 |
5,356 |
- |
Certificates and Vouchers(2) |
1,500 |
500 |
- |
Subtotal |
6,000 |
5,856 |
- |
Private Production |
|||
Accessory Units |
- |
625 |
1,875 |
Condos/Townhouses/Cottages |
- |
- |
1,239 |
Rental Apartments |
- |
- |
18,172 |
Subtotal |
- |
625 |
21,286 |
Totals |
6,000 |
6,481 |
21,286 |
(1) Assuming annual funding of $30.25 million, the midpoint of the range in Housing Appendix Figure A-36. Based on production costs shown in Housing Appendix Figure A-37 of $78,144 per unit in the 0-30% of median income category and $48,144 per unit in the 30-50% of median income category. Figures include likely production from existing incentive zoning mechanisms.
(2) Funding for certificates and vouchers is not included in public subsidy totals for low-income housing production.
(3) The countywide goal for Seattle at the high end of the range of expected household growth is 12,000 units affordable to households with incomes between 0 and 50 percent of median income. Because the Comprehensive Plan encourages housing production for a range of low-income households, this goal has been subdivided, for the purposes of this analysis, into equal shares for the 0 - 30 and 30 - 50 percent of median groups.