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2014-09-10 Planning Board PacketMEETING AGENDA PLANNING BOARD Council Chambers, Public Safety Complex 250 5th Avenue North September 10, 2014 7:00 PM 1. Call to Order and Roll Call 2. Reading / Approval of Minutes: August 27, 2014 3. Announcement of Agenda 4. Audience Comments: (3 Minute Limit Per Person)* *Regarding matters not listed on the Agenda as Closed Record Review or as Public Hearings 5. Development Services Director Report to Planning Board 6. Public Hearings: (Public participation is welcome) 7. Unfinished Business: (No public participation) a. Continued Discussion of Comprehensive Plan Sustainability Element 8. New Business: (No public participation) a. Discussion of Comprehensive Plan Housing Element Update 9• Administrative Reports: Review Extended Agenda 10. Planning Board Chair Comments: 11. Planning Board Member Comments: 12. Adjournment PARKING AND MEETING ROOMS ARE ACCESSIBLE FOR PERSONS WITH DISABILITIES (Contact the City Clerk at 771-0245 with 24 hours advance notice for special accommodations) AI-7123 Planning Board Agenda Meeting Date: 09/10/2014 Reading / Approval of Minutes: August 27, 2014 Department: Initiated By: Planning Information Subject/Purpose Reading / Approval of Minutes: August 27, 2014 Staff Recommendation It is recommended that the Planning Board review and approve the draft minutes. Previous Board Action N/A Narrative The draft minutes are attached. Attachments Draft PB minutes 8.27.14 2. CITY OF EDMONDS PLANNING BOARD MINUTES August 27, 2014 Chair Cloutier called the meeting of the Edmonds Planning Board to order at 7:00 p.m. in the Council Chambers, Public Safety Complex, 250 — 5t' Avenue North. BOARD MEMBERS PRESENT Todd Cloutier, Chair Neil Tibbott, Vice Chair Bill Ellis Philip Lovell Careen Rubenkonig Valerie Stewart BOARD MEMBERS ABSENT Daniel Robles (excused) READING/APPROVAL OF MINUTES STAFF PRESENT Rob Chave, Planning Division Manager Shane Holt, Development Services Director Karin Noyes, Recorder BOARD MEMBER LOVELL MOVED THAT THE MINUTES OF AUGUST 13, 2014 BE APPROVED AS AMENDED. VICE CHAIR TIBBOTT SECONDED THE MOTION, WHICH CARRIED UNANIMOUSLY. ANNOUNCEMENT OF AGENDA The agenda was accepted as presented. AUDIENCE COMMENTS No one in the audience indicated a desire to address the Board during this portion of the meeting. DEVELOPMENT SERVICES DIRECTOR'S REPORT TO PLANNING BOARD Ms. Hope referred the Board to her written report, which provides an update on implementation of the Strategic Action Plan, Citizen's Tree Board open house, 2014 Comprehensive Plan amendments, Westgate Zoning Code amendment process, coal and oil train issues, and the most recent meetings of the Citizen Economic Development Commission, Highway 99 Task Force, and Historic Preservation Commission. The report also provides a calendar of upcoming community events. Board Member Lovell said that, as a member of the Strategic Action Plan Advisory Committee, he was not aware that the group met twice in September. Ms. Hope explained that a second meeting was held in August in lieu of a meeting in September. The meeting was scheduled on short notice, and she apologized that Board Member Lovell was not notified. Vice Chair Tibbott announced that the Artist Studio Tour is scheduled for September 20"' and 21". He said he and his wife participated in the 2013 tour and found it to be one of the best events they have attended in Edmonds. Mr. Chave noted that flyers have been posted around Edmonds, and there is also a website for the event, as well. DISCUSSION ON PLANNING BOARD REPORT TO COUNCIL ON SEPTEMBER 16TH There was some discussion about whether or not the date of the report could be changed. Mr. Chave said the report could be changed to an alternate date, but the Board should keep in mind that the City Council's agenda is very full right now. The Board had a brief discussion about who would write and present the report, as well as the content of the report. Chair Cloutier suggested that the report could simply follow up on the priorities identified in the joint meeting with the City Council. It could outline the Board's extended agenda and identify what has been accomplished and what the Board is currently working on. Board Member Stewart observed that, although preparing the report can be time consuming, it is helpful to the general public to highlight what the Board has accomplished over a series of months so they can better understand the process and the outcome of the Board's work. Board Member Lovell added that, in addition to the public benefits, the report also offers an opportunity for the Board to reemphasize the recommendations they have sent forward to the City Council. This would be particularly important since the City Council does not seem to be acting responsibly or thoroughly as yet on the Board's recommendations related to the Westgate Plan, zoning changes on Highway 99, and amendments to the definition of "legal lot." Vice Chair Tibbott said he would be available to present the report to the City Council on September 16, but he would like some guidance as to the report's contents. The Board agreed that the report should provide an update of what the Board has accomplished over the last six months, particularly noting the significant recommendations that have been forwarded to the City Council. The report should also outline the Board's extended agenda for the next three months. Chair Cloutier agreed to work with Vice Chair Tibbott to prepare the written report. PRIORITIES FOR DEVELOPMENT CODE UPDATE Ms. Hope reviewed that the Board has had a number of discussions about the Development Code update, including a retreat where the topic was given special consideration. At the retreat, the Board concurred that an open public process would be critical. They also agreed on seven key principles and seven key objectives to guide the Development Code update (See Exhibit 1). Principles Consistency with current state laws Consistency with Edmonds Comprehensive Plan Predictability Some flexibility Recognition of property rights Clear, user-friendly language and format Enforceability Key Objectives Ensuring reasonable and clear processes for all actions Providing expanded and up-to-date set of definitions Encouraging appropriate development Protecting of critical areas and shorelines Recognizing diverse neighborhoods and their characteristics Encouraging pedestrian -friendly and bicycle -friendly access Encouraging low -impact stormwater management Ms. Hope explained that because the Development Code is complex and consists of numerous chapters, the update cannot be tackled at once. The purpose of tonight's meeting is to discuss and make recommendations about priorities for the update. She provided the following prioritization option to start the Board's discussion: 1. Focus on any changes needed to be consistent with state laws. 2. Focus on existing sections or chapters that have been especially problematic due to unclear language or processes. 3. Focus on sections or chapters that can be improved or added to better fit the Comprehensive Plan's goals and objectives. 4. Focus on housekeeping issues —such as duplications or minor inconsistencies —and reorganize chapters in a logical order. Board Member Lovell said it is his understanding that the City will hire a temporary consultant to assist with the Development Code update. Ms. Hope said a consultant would be hired, but the City must provide clear direction to guide Planning Board Minutes August 27, 2014 Page 2 his/her work. Board Member Lovell suggested that the best place to start would be to harness the staff s experience in dealing with the code on a day-to-day basis. Ms. Hope agreed and said staff is currently working to prepare a list of potential amendments. Board Member Lovell reminded the Board that the Comprehensive Plan is the City's visioning tool, and the Development Code should be one of the vehicles that implements the goals and objectives called out in the Comprehensive Plan. He questioned if it would be more appropriate to complete the Comprehensive Plan update prior to commencing the Development Code update. Ms. Hope answered that updating the Development Code has been identified as a high priority for the City, and state law requires that the Comprehensive Plan be updated, as well. At this time, the City is proceeding with both updates, recognizing that some of the work will overlap. If after the Comprehensive Plan is updated there are things that further inform the Development Code update, they can address those issues, too. Ms. Hope also reviewed a list of high priority topics that was created based on staff input, as well as recent Planning Board discussions. She emphasized that these are not the only topics that will be covered, but they are the ones that stand out as needing particular attention. She reviewed the list as follows: Critical Areas Tree Code Variance Process Non Conformance Bond Requirements Planned Residential Developments Code Enforcement Property Performance Standards Noise Abatement Subdivisions Signs Permit and Approval Process Comp Plan Amendment Process Zoning Code Amendment Process Administrative Procedures Board/Commission Procedures Ms. Hope explained that the intent is to use a phased approach for updating the Development Code. She reviewed the phases and their timeline as follows: 1. Attorney Review. (early 2014) 2. Review needs based on the new Development Services Director's observations. (September 2014) 3. Additional input on Code update issues. (September 2014) 4. Seek consultant help in drafting the code update for the priority topics. (Fall 2014) 5. Carry forward existing approved budget for code update into 2015. (Fall 2014) 6. Solicit public comments on initial and final draft code chapters. (Spring through Fall 2015) 7. Planning Board Recommendations. (Fall and Winter 2015) 8. City Council consideration and final action. (Fall and Winter 2015) 9. Consider other Development Code Updates. (2016) Ms. Hope invited the Board Members to provide feedback, not only on the key principles and objectives, but the prioritization criteria and list of high priority topics. Chair Cloutier commented that breaking the Development Code update into smaller pieces helps the Board digest the tasks better, and providing background work will help them stay on track. He expressed his belief that the process and priority topics identified by staff capture all of the elements the Board has asked for and more. Vice Chair Tibbott asked if the process would also include hyperlinks so that the Development Code becomes a moveable digital document as opposed to a hard copy that is difficult to update. Ms. Hope advised that the current code is already available in digital format, and hyperlinks are provided to other sections of the code. However, the update will allow the City to provide more sophisticated technology. Mr. Chave explained that, until last year, the City's Development Code was hosted by the Municipal Research and Services Center, but it is currently hosted by the Code Publishing Company. This change resulted in immediate improvements. For example, it is easier to navigate the code and create PDF and other printable documents. The City is just starting to take advantage of the on-line capabilities that are available but haven't been used, and this will continue after the update is finished. It will be a key item that is not costly or time consuming. He said that the City has recognized that, by and large, they no longer issue printed codes. Most people access the City's code on line because it is the most up-to-date version. Rather than waiting for quarterly updates to the printed version, the on-line version is updated as soon as an ordinance is adopted. Planning Board Minutes August 27, 2014 Page 3 Board Member Stewart said she supports the City's efforts to utilize digital technology, and she would love for the City to eliminate paper copies altogether. She said it would also be helpful for staff to provide an electronic version of the code on the screen during Planning Board meetings, and providing hyperlinks to other related sections of the code will save a significant amount of time. Mr. Chave said that staff primarily uses the digital version of the code now. Vice Chair Tibbott asked staff to share how having an up-to-date digital code that is available to the public on line will help with code enforcement. Ms. Hope said she does not know if there is any evidence or case study to indicate improved enforcement. However, a lot of people use the digital code. In addition to the digital code, another on-line feature the Development Services Department utilizes a lot is the request line where people can email questions and staff responds electronically. Mr. Chave added that since the City's website was updated, there have been a lot more internet-generated questions. If people need more information, they can be routed to the appropriate department. Mr. Chave suggested that improving code enforcement many not be the right way to think about the update. It is more about information flow. To the extent people can better access the codes on line and they are easier to follow and understand, people will become less frustrated. However, there will always be a cadre of people who resist permitting and that will not likely change. Board Member Rubenkonig suggested that some of the proposed amendments could be presented to the Planning Board via a consent agenda. If the Board wants more information, they could be pulled from the consent agenda for additional discussion. Chair Cloutier said the Planning Board has not traditionally utilized a consent agenda. Amendments are typically presented to the Board in groups. Some of the items will require extensive discussion, and some will not. However, the Board will conduct a public hearing and make a recommendation on the entire package of amendments. The Board indicated support for the list of priorities and the process outlined by staff. ]�/�1:3,�/I�►i.+l�l�[K�]uM�:7�l.l�l��y►�/��1I:\�[.YIb�III�I►/:�:3111YIM•/�M11�Iu1�1►Y1 Mr. Chave referred the Board to the existing Sustainability Element, which was attached to the Staff Report. He advised that a recent analysis of the element by staff, using a checklist from the State, did not reveal the need to make any changes in order to be consistent with the Growth Management Act (GMA) or other state laws. In addition, this element does not contain any data that needs to be replaced with newer data. However, the Board could discuss minor adjustments to the element, particularly adding a "performance measure" and one or more time -based "action items" as a special section to the element. He cautioned that it will be important to be fairly choosey about the action items because they will inform the agenda for the next few years, as some will require a significant amount of work. Chair Cloutier recalled that over the past year, the Board has reviewed a number of proposals related to the shoreline (i.e. Shoreline Master Program and Harbor Square Master Plan). This included land use discussions for properties that could potentially be in a threatened zone. He suggested it would be appropriate to update the Sustainability Element to clarify where the lines of concern should be related to sea level rise. Mr. Chave responded that some of this risk assessment could be covered in the City's emergency plan, which does not currently address the evolving climate and issues related to rising sea level. He said it might be appropriate to update the emergency plan to make sure that information related to storm events and severity are adequately addressed. Board Member Ellis pointed out that climate change and rising sea levels have statewide implications. He asked what the State has done to identify and address these issues. Mr. Chave answered that a number of reports have been done at various times. The issue is particularly difficult given that each location within the state has unique characteristics and a one -size - fits -all approach will not adequately address all situations. A significant amount of data has come out over the past few years. While it continues to evolve, it can provide a good idea of what could happen. Board Member Ellis asked if a particular state agency has been tasked with addressing this issue on a statewide basis. Mr. Chave answered that there have been a variety of projects sponsored by the University of Washington, the Washington State Department of Ecology (DOE), etc. Each group issues its own report at different points in time, and information in one report can become outdated by a later report. The efforts are beginning to coalesce, and the reports tend to focus on the two most likely scenarios for comparison purposes. This allows the work to be fairly consistent to provide benchmarks that will help local jurisdictions address the issue appropriately. Planning Board Minutes August 27, 2014 Page 4 Mr. Chave summarized that it is important to update the Sustainability Element to acknowledge what has been done to date, such as adoption of the Strategic Action Plan. Although staff does not foresee any significant changes in the goals and policies discussed in the element, it would be appropriate to identify at least one "performance measure," as well as specific action items that will begin to set priorities. Board Member Stewart suggested that the Mayors Climate Action Committee be invited to review and comment on the Sustainability Element at their meeting in early September. She plans to attend the committee meeting and could report their findings to the Board. Board Member Stewart reported that she has participated in a series of courses, some of which relate to the topic of sea level rise. There is data available specific to each segment of the shoreline, which reflects the range of potential sea level rise. It boils down to an overlay that illustrates the buildings and lands that could be impacted by rising sea levels. Mr. Chave said there is also an interactive website that provides similar information. Chair Cloutier summarized that the idea is to implement a range of scenarios to build policy. It was noted that various groups are working on this effort. Board Member Lovell said that although there are several inferences and/or references to the concept of economic sustainability for the City in the Sustainability Element, he felt the language could be strengthened. He expressed concern about the direction that has been taken over the past five or six year, both politically and in the public arena, regarding what it takes to run a successful City. The City Council has struggled for a number of years to achieve a budget that recognizes what everyone believes to be the stature of the City related to conditions, and there is an information and awareness gap between the greater citizenry of the City about increased taxes. Sooner or later the City Council and citizens must recognize that taxes will have to go up if they want the City to stay the way it is. Mr. Chave suggested that economic sustainability would be better addressed in the Economic Development Element of the Comprehensive Plan, which has not been updated for a number of years. While updating the Economic Development Element has been identified as a City priority, he is not sure of the timeline. Board Member Stewart said she would like to propose some changes to the language in the Sustainability Element, most of which relate to the "Environmental" and "Community Health" sections. In particularly, she would like to integrate language from the National Physical Activity Plan related to transportation, land use and community design. In addition, she would like to incorporate elements of the Washington State Nutrition and Physical Activity Plan. She said she will also propose other changes that she felt would strengthen the goals called out in both the "Environmental" and "Community Health" sections. Chair Cloutier encouraged Board Member Stewart to submit her proposed changes to staff so they could become part of the Board's next discussion regarding the Sustainability Element. Board Member Lovell pointed out that numerous statements in the Sustainability Element use the word "shall," which means "should" or "maybe." Mr. Chave explained that the Comprehensive Plan is intended to be aspirational, and the Development Code lays out all of the requirements. It is very difficult to put directive "shalls" in a planning document when there are many different ways of implementing goals. Board Member Lovell reminded the Board of staff's recommendation that at least one "performance measure" should be identified for each element of the Comprehensive Plan. Mr. Chave indicated that staff would have some recommendations for the Board to consider as part of their next discussion. Chair Cloutier referred to the Performance Measure Matrix the Board previously prepared and reminded them that there is already a performance measure in place to track green house gases. It is simple to do, and the Mayor's Climate Action Committee already started informally tracking citywide electricity, natural gas, and water consumption. :7�►�/I�►�.'L�J1��►:/1Y�►11]�17:Tli�CI17:1 Chair Cloutier reviewed that the Board's September 10"' agenda will include a discussion of the Housing Element and continued discussion of the Sustainability Element of the Comprehensive Plan. The September 24th agenda will include a presentation on the status of development projects and activities, continued discussion of the Housing Element, and a public hearing on proposed updates to the Capital Facilities Plan and Capital Improvement Program Elements of the Comprehensive Plan. Planning Board Minutes August 27, 2014 Page 5 Mr. Chave advised that Nick Echelbarger provided a very informative presentation on the Salish Crossing Project at the last Citizens Economic Development Commission meeting. He also noted that the Parks, Recreation and Cultural Services Department is scheduled to provide a quarterly report on either October 8th or November 12th. Board Member Lovell requested an update on the Five Corners planning effort. Mr. Chave advised that what the City Council decides related to the Westgate Plan will have a good deal of influence on the Five Corners Plan. He reported that the paving portion of the Five Corners Roundabout is scheduled to be completed during the seconded week in September, and citizens will begin to see how the project will end up. Board Member Ellis noted that a timeline for the project is available on the City's website. 191I1►I►I I► Iei:i17.1;71Z41I /1 I tX4113u I 10IeI I[: Chair Cloutier did not provide any comments during this portion of the meeting. PLANNING BOARD MEMBER COMMENTS Board Member Lovell announced that Northwest Sustainable Energy for Economic Development (Northwest SEED) will conduct another workshop on September 13th in the Brackett Room of City Hall regarding the Solarize South County Program, which is designed to help single-family homeowners and small businesses purchase solar equipment via a streamlined process and group discount. He briefly reviewed the benefits offered by the program and noted that myedmondsnews.com recently published an article by Edmonds Citizen Darrell Haug, providing a personal testimonial about the solar equipment that was recently installed on his home via the program. Board Member Lovell thanked Board Members Rubenkonig and Robles for volunteering to fill in for him at the August 20th Citizens Economic Development Commission (CEDC) Meeting, which he was unable to attend because he was attending the last workshop sponsored by Northwest Sustainable Energy for Economic Development (Northwest SEED). He asked how he could obtain a copy of the presentation that was made regarding the Salish Crossing Project. Mr. Chave suggested he contact a member of the CEDC. Vice Chair Tibbott said his recent visit to Highway 99 raised the following questions for the Board to consider as part of their next discussion on potential code amendments related to Highway 99: • Can the City do something about chain link fences along the sidewalks that front Highway 99? • Can the City do something to improve signage and reduce clutter by limiting the type and amount allowed? • Can the City do something to improve landscaping, particularly on the occupied properties that are being neglected? Board Member Stewart shared her plans for a project she is doing for a class that is sponsored by the Puget Sound Partnership (PSP) and funded by the Environmental Protection Agency (EPA). The project is titled "The Future of Salmon in Edmonds and the Role of Policy and Regulation." The goal is to organize and empower a local high school Student Leadership Team for Salmon Recovery in Edmonds. The project will last approximately one year, and the first thing she will do is set up a tour with Keeley O'Connell of EarthCorps and Friends of the Edmonds Marsh. Members of the City Council, Planning Board and Mayors Climate Action Committee will be invited to participate. The tour is intended to help decision makers understand the importance of protecting and restoring the shoreline and near shore environment. Board Member Rubenkonig reported that she and Board Member Robles attended the August 20"' CEDC Meeting on behalf of Board Member Lovell. The City's former Economic Development Director, Stephen Clifton, was in attendance to hear the presentation regarding the Salish Crossing Project, which is the culmination of two years of work with the City staff and the property owner, Nick Echelbarger. It was very interesting to hear people's perspective of the project and how they see Edmonds in the future. She reviewed a written report of the meeting that was prepared by Board Member Robles and highlighted the following: • Nick Echelbarger made a presentation on the Salish Crossing Redevelopment Project, which will transform the existing development into a private museum featuring Pacific Northwest art from the early 1900's to 1962. The Planning Board Minutes August 27, 2014 Page 6 project will also include a restaurant, distillery and specialty shops. There was broad support for the project, and Board Members were encouraged to obtain a copy of the presentation and review the major points of the project. • The Commission discussed a project to maximize tourism. While it is an interesting concept, they are having a difficult time defining "tourism." It was noted that "tourism," as counted by City tax revenues, currently contributes about $250,000 while automobile dealers contribute $1 million. The Board should follow this subject, as it speaks to the issue of identifying performance measures. It is argued that the benefits run deeper and are worth more than what is being measured. • The Development Services Director discussed the 2015 Comprehensive Plan update. She emphasized the need to stick to business and not get caught up in wordsmithing, and she also stressed the importance of looking beyond 20 years from now. • The Economic Development Director provided an update on the Strategic Action Plan implementation, noting that the Strategic Action Plan Advisory Committee is currently discussing ways of getting community input. • The Commission received an update from the Highway 99 Task Force, which is proposing a planned action study to put a more specific plan in place to specify streetscape and perform environmental reviews. The Task force is also working to coordinate with Mountlake Terrace, Lynnwood and Shoreline. ADJOURNMENT The Board meeting was adjourned at 8:27 p.m. Planning Board Minutes August 27, 2014 Page 7 AI-7133 Planning Board Agenda Meeting Date: 09/10/2014 Development Services Director Report to Planning Board Staff Lead/Author: Shane Hope Department: Planning Initiated By: Information Subject/Purpose Development Services Director Report to Planning Board Staff Recommendation Please review attached report Previous Board Action N/A Narrative Report is attached. Attachments Director Report 9.10.14 5. DIRECTOR REPORT September 10, 2014 To: Planning Board From: Shane Hope, Development Services Director and Rob Chave, Planning Manager Subject: Director/Planning Manager Report Shoreline Master Program Updating the Shoreline Master Program (SMP) has been a project that has spanned at least two years. Last year, the Planning Board made its recommendation on a draft SMP to the City Council. Subsequently, the City Council considered the Board's recommendation, along with other information, and asked for certain changes to the draft. A revised draft, reflecting the Council's requested changes, was prepared and then presented at the City Council's September 2 meeting. A public hearing on the draft SMP and potential action by the City Council is scheduled for September 16. After the City Council approves the SMP, it will be sent to the state Department of Ecology. Ecology may approve, deny, or request changes to the SMP. Once approved, it goes back to the City for final action —which would include the City Council adopting the SMP by reference, along with an ordinance to implement the regulatory portions of the SMP. Highway 99 Area Zoning Amendment The City Council's September 16 meeting will include a public hearing and possible action on the proposed zoning amendment that was recommended by the Planning Board for the Highway 99 area. Legal Lot Zoning Amendment A proposal to amend the zoning code to define "lot of record" and describe the criteria for determining an "innocent purchaser" —as recommended by the Planning Board —will be considered at a City Council public hearing on September 16. Sunset Avenue Walkway Before deciding on more permanent design and construction, an initial layout of a new walkway area will be painted along Sunset Avenue where people currently walk and sit to view the water and shoreline. Some changes to the parking space configuration will be included. The temporary design (approximately, for two years) will allow Public Works staff to get a better handle on the design issues and report to the City Council on how well it works or what changes should be considered. 5 Corners Roundabout The round -about at "5 Corners" has been completed for functional purposes. It seems to be working well! Artwork and lighting will be added in the near future, per the approved design. 2015 Comprehensive Plan Update For the 2015 Comprehensive Plan update, the City Council will be reviewing the draft update of each element after it has been reviewed by the Planning Board. Then the full set up updates will be considered by the Planning Board and the City Council and will include a public hearing process. The first update to be considered by the City Council will be on September 23 for the Sustainability Element. Each element update must be considered on a fairly fast track in order to be completed by mid-2015, the state deadline. Westgate Zoning Code Proposal The Westgate zoning code proposal, consistent with the Planning Board's recommendation, remains under the City Council's consideration. The next Council discussion of this topic is at the September 23 meeting. City Council Meeting Format The City Council voted on September 2 to change its meeting format to include alternating study sessions and business meetings. Thus, one Tuesday would be a study session (where voting is generally not needed) and the next a business meeting (where voting may occur). All meetings would be open to the public. With this format, committee meetings do not appear needed. Rather, the whole Council can hear information on issues at the same time. Community Calendar Upcoming community events include: ❑ Sept. 11: Mayor's Highway 99 Town Hall Meeting @ Community Health Center (23320 Hwy 99), 6:30 to 8:30 pm (see http://www.edmondswa.go ❑ Sept. 18: (and every third Thursday): Art Walk in downtown Edmonds, 5:00 to 8:00 pm ❑ Oct. 1 - 15 (Registration): Edmonds Museum second annual Scarecrow Festival (see: http://www.historicedmonds.org/ ❑ Oct. 25: Edmonds Street Scramble: For families, friends, runners, cyclists and walking enthusiasts! With a special map as your guide, find as many checkpoints as you can before time runs out! Registrations now open! (see https://secure.getmeregistered.com/get information.php?event id=11685 AI-7124 Planning Board Agenda Meeting Date: 09/10/2014 Continued Discussion of Comprehensive Plan Sustainability Element Staff Lead/Author: Rob Chave, Planning Manager Department: Initiated By: Planning City Staff Information Subject/Purpose Continued Discussion of Comprehensive Plan Sustainability Element Staff Recommendation Provide direction to staff for completion of the draft element. Previous Board Action Discussion on this item occurred during the two previous Board meetings in August. Narrative Attached is a draft updated version of the Sustainability Element. 7. a. Staff has inserted a new section at the end of the element (page 34) which incorporates an action and performance measure. Note that this is not an exclusive list; the City can decide to take other actions or track other performance measures in addition to these. Also included in the draft are a number of edits from Valerie Stewart, with some staff suggestions on how these could be integrated. Attachments Attachment 1: Draft Updated Sustainability Element for discussion Community Sustainability Element Background: Climate Change, Community Health, and Environmental Quality Introduction. A relatively recent term, "sustainability" has many definitions. A commonly cited definition is one put forward by the Brundtland Commission' in a report of the World Commission on Environment and Development (December 11, 1987). The Commission defined sustainable development as development that "meets the needs of the present without compromising the ability of future generations to meet their own needs." Not focused solely on environmental sustainability, the Commission's report emphasized the inter -related nature of environmental, economic, and social factors in sustainability. One of the keys to success in sustainability is recognizing that decision - making must be based on an integration of economic with environmental and social factors. The City of Edmonds Comprehensive Plan contains a number of different elements, some mandated by the Growth Management Act, and others included because they are important to the Edmonds community. A requirement of the Growth Management Act is that the various comprehensive plan elements be consistent with one another. This Community Sustainability Element is intended to provide a framework tying the other plan elements together, illustrating how the overall plan direction supports sustainability within the Edmonds community. A key aspect of this approach is also to provide more direct linkages between long term planning and shorter -term strategic planning and policy review which guide the use of city resources and programs, especially budgeting. For example, a new emphasis on life cycle efficiency may take precedence over simple least -cost analytical methods. The City of Edmonds is gifted with unique environmental assets, such as the shoreline on Puget Sound, urban forests, diverse streams and wetlands, Lake Ballinger and a range of parks and open spaces. In addition, the city has the benefit of an established, walkable downtown served by transit, a framework of neighborhood commercial centers providing local access to business services, and the potential to see significant economic development in the Highway 99 activity center. Recently, the City has also experienced the beginnings of new economic initiatives, such as a new fiber-optic infrastructure and locally -based businesses and organizations supporting local sustainability and greenhouse gas (GHG) reduction approaches. Combined with local government initiatives, such as the Mayor's Citizens Committee on U.S. Mayors' Climate Protection Agreement and a series of resolutions adopted by the Edmonds City Council, there is a growing recognition and harnessing of the power of citizen knowledge to encourage and support changes in City policies and operations which are making the City a leader in environmental stewardship. Given this combination of assets and knowledge, the City of Edmonds has a compelling responsibility to utilize these capabilities to address the challenges of climate change, community health and environmental quality. 18 Community Sustainability Sustainability Framework This section describes the general goals and principles underlying the City's approach to community sustainability. Three important guiding principles central to a successful approach are: • Flexible — In an environment where what we understand and can predict is still developing and will be uncertain for some time to come, providing ways to monitor, assess, adapt, and to be flexible in our responses will be critical. Climate change is but one example; the uncertainties acknowledged in that subject area should be instructive in helping us understand that a flexible approach is necessary when addressing all areas of sustainability. Holistic — The components of sustainability — in terms of both its inputs and outputs —are complex and synergistic. No single action will result in a sustainable result, and sustainable initiatives taken in one area don't necessarily lead to sustainability in another. For example, sustainable land use practices don't necessarily result in a sustainable transportation or health system. A holistic approach is required that includes all levels of governance and encompasses planning, funding, evaluation, monitoring, and implementation. • Long-term — Focusing on short-term, expedient solutions will only make actions necessary to support sustainability more difficult to take in the future. For example, in the areas of environmental issues and climate change, deferred action now will only make the cumulative effects more difficult to resolve in the future. The familiar GMA-based 20-year planning timeframe will not be sufficient — planning for sustainability must take an even longer view. Sustainability Goal A. Develop land use policies, programs, and regulations designed to support and promote sustainability. Encourage a mix and location of land uses designed to increase accessibility of Edmonds residents to services, recreation, jobs, and housing. A.1 Adopt a system of codes, standards and incentives to promote development that achieves growth management goals while maintaining Edmonds' community character and charm in a sustainable way. Holistic solutions should be developed that employ such techniques as Low Impact Development (LID), transit -oriented development, "complete streets" that support multiple modes of travel, and other techniques to assure that future development and redevelopment enhances Edmonds' character and charm for future generations to enjoy. A.2 Include urban form and design as critical components of sustainable land use planning. New tools, such as form -based zoning and context -sensitive design standards should be used to support a flexible land use system which seeks to provide accessible, compatible and synergistic land use patterns which encourage economic and social interaction while retaining privacy and a unique community character. A.3 Integrate land use plans and implementation tools with transportation, housing, cultural and recreational, and economic development planning so as to form a cohesive and mutually -supporting whole. Community Sustainability 19 A.4 Use both long-term and strategic planning tools to tie short term actions and land use decisions to long-term sustainability goals. City land use policies and decision criteria should reflect and support sustainability goals and priorities. Sustainability Goal B. Develop transportation policies, programs, and regulations designed to support and promote sustainability. Take actions to reduce the use of fuel and energy in transportation, and encourage various modes of transportation that reduce reliance on automobiles and are supported by transportation facilities and accessibility throughout the community. B.1 Undertake a multi -modal approach to transportation planning that promotes an integrated system of auto, transit, biking, walking and other forms of transportation designed to effectively support mobility and access. B.2 Actively work with transit providers to maximize and promote transit opportunities within the Edmonds community while providing links to other communities both within and outside the region. B.3 Explore and support the use of alternative fuels and transportation operations that reduce GHG emissions. BA When undertaking transportation planning and service decisions, evaluate and encourage land use patterns and policies that support a sustainable transportation system. B.5 Strategically plan and budget for transportation priorities that balances ongoing facility and service needs with long-term improvements that support a sustainable, multi -modal transportation system. B.6 Strategically design transportation options — including bike routes, pedestrian trails and other non -motorized solutions — to support and anticipate land use and economic development priorities. Sustainability Goal C. Promote seamless transportation linkages between the Edmonds community and the rest of the Puget Sound region. C.1 Take an active role in supporting and advocating regional solutions to transportation and land use challenges. C.2 Local transportation options should be designed to be coordinated with and support inter -city and regional transportation programs and solutions. C.3 Advocate for local priorities and connections and the promotion of system -wide flexibility and ease of use in regional transportation decisions. Sustainability Goal D. Develop utility policies, programs, and maintenance measures designed to support and promote sustainability. Maintain existing utility systems while seeking to expand the use of alternative energy and sustainable maintenance and building practices in city facilities. 20 Community Sustainability DA Balance and prioritize strategic and short-term priorities for maintenance and ongoing infrastructure needs with long-term economic development and sustainability goals. D.2 Strategically program utility and infrastructure improvements to support and anticipate land use and economic development priorities. D.3 Explore and employ alternative systems and techniques, such as life -cycle cost analysis, designed to maximize investments, minimize waste, and/or reduce ongoing maintenance and facilities costs. DA Include sustainability considerations, such as environmental impact green infrastructure (emphasizing natural systems and processes), and GHG reduction, in the design and maintenance of facilities and infrastructure. Sustainability Goal E. Develop economic development policies and programs designed to support and promote sustainability. Encourage the co -location of jobs with housing in the community, seeking to expand residents' ability to work in close proximity to their homes. Encourage and support infrastructure initiatives and land use policies that encourage and support home -based work and business activities that supplement traditional business and employment concentrations. E.1 Economic development should support and encourage the expansion of locally - based business and employment opportunities. E.2 Land use policies and implementation tools should be designed to provide for mixed use development and local access to jobs, housing, and services. E.3 Regulatory and economic initiatives should emphasize flexibility and the ability to anticipate and meet evolving employment, technological, and economic patterns. EA Land use and regulatory schemes should be designed to encourage and support the ability of local residents to work, shop, and obtain services locally. E.5 Land use and economic development programs should provide for appropriate scale and design integration of economic activities with neighborhoods while promoting patterns that provide accessibility and efficient transportation options. Sustainability Goal F. Develop cultural and recreational programs designed to support and promote sustainability. Networks of parks, walkways, public art and cultural facilities and events should be woven into the community's fabric to encourage sense of place and the overall health and well being of the community. F.1 Cultural and arts programs should be supported and nourished as an essential part of the City's social, economic, and health infrastructure. F.2 Recreational opportunities and programming should be integrated holistically into the City's infrastructure and planning process. Community Sustainability 21 F.3 Cultural, arts, and recreational programming should be an integral part of City design and facilities standards, and should be integrated into all planning, promotion, and economic development initiatives. Sustainability Goal G. Develop housing policies, programs, and regulations designed to support and promote sustainability. Support and encourage a mix of housing types and styles which provide people with affordable housing choices geared to changes in life style. Seek to form public and private partnerships to retain and promote affordable housing options. G.1 Land use and housing programs should be designed to provide for existing housing needs while providing flexibility to adapt to evolving housing needs and choices. G.2 Housing should be viewed as a community resource, providing opportunities for residents to choose to stay in the community as their needs and resources evolve and change over time. G.3 Support the development of housing tools, such as inclusionary zoning incentives and affordable housing programs, that promote a variety of housing types and affordability levels into all developments. Report of the World Commission on Environment and Development. Our Common Future, U.N. General Assembly Plenary Meeting, December 11, 1987. 22 Community Sustainability Climate Change Introduction. The quality of the environment we live in is a critical part of what people often describe as the "character" of Edmonds. Even if it is not something we overtly think about, it is an intrinsic part of our everyday experience, whether at work, at rest or at play. Until relatively recently, environmental quality has often been thought of in terms of obvious, easily observable characteristics — such as the visible landscape, the quality of the air, the presence and variety of wildlife, or the availability and character of water in its various forms. However, recent evidence on climate change points to the potential fragility of our assumptions about the environment and the need to integrate and heighten the awareness of environmental issues as they are inter -related with all community policies and activities. Recognizing the importance of addressing the issues surrounding the environment and climate change, in September 2006, the City of Edmonds formally expressed support for the Kyoto Protocol' and adopted the U.S. Mayors Climate Protection Agreement4 by Resolution No. 1129, and joined the International Council for Local Environmental Initiatives (ICLEI)5 by Resolution No. 1130. Scientific evidence and consensus continues to strengthen the idea that climate change is an urgent threat to the environmental and economic health of our communities. Many cities, in this country and abroad, already have strong local policies and programs in place to reduce global warming pollution, but more action is needed at the local, state, and federal levels to meet the challenge. On February 16, 2005 the Kyoto Protocol, the international agreement to address climate change, became law for the 141 countries that have ratified it to date. On that day, Seattle Mayor Greg Nickels launched an initiative to advance the goals of the Kyoto Protocol through leadership and action by at least 141 American cities. The State of Washington has also been taking steps to address the issues surrounding climate change. For example, in March, 2008, the state legislature passed ESSHB 2815, which included monitoring and reporting mandates for state agencies along with the following emission reduction targets: Sec. 3. (1)(a) The state shall limit emissions of greenhouse gases to achieve the following emission reductions for Washington state: (i) By 2020, reduce overall emissions of greenhouse gases in the state to 1990 levels; (ii) By 2035, reduce overall emissions of greenhouse gases in the state to twenty- five percent below 1990 levels; (iii) By 2050, the state will do its part to reach global climate stabilization levels by reducing overall emissions to fifty percent below 1990 levels, or seventy percent below the state's expected emissions that year. The City of Edmonds has formally approved the U.S. Mayors Climate Protection Agreement which was endorsed by the 73rd Annual U.S. Conference of Mayors meeting, Chicago, 2005. Under the Agreement, participating cities committed to take three sets of actions: Community Sustainability 23 1. Urge the federal government and state governments to enact policies and programs to meet or beat the target of reducing global warming pollution levels to 7 percent below 1990 levels by 2012, including efforts to: reduce the United States' dependence on fossil fuels and accelerate the development of clean, economical energy resources and fuel -efficient technologies such as conservation, methane recovery for energy generation, waste to energy, wind and solar energy, fuel cells, efficient motor vehicles, and biofuels. 2. Urge the U.S. Congress to pass bipartisan greenhouse gas reduction legislation that 1) includes clear timetables and emissions limits and 2) a flexible, market -based system of tradable allowances among emitting industries 3. Strive to meet or exceed Kyoto Protocol targets for reducing global warming pollution by taking actions in our own operations and community. Given this background, the City of Edmonds recognizes that global climate change brings significant risks to our community as a shoreline city. At the same time, the City understands that we have a responsibility to play a leadership role both within our own community as well as the larger Puget Sound region. To that end, the City establishes the following goals and policies addressing climate change. Climate Change Goal A. Inventory and monitor community greenhouse gas emissions, establishing carbon footprint baselines and monitoring programs to measure future progress and program needs. A.1 Establish baselines for greenhouse gas emissions and carbon footprint for both Edmonds city government and the broader Edmonds community. A.2 Establish a monitoring program for consistently updating estimates on City and community greenhouse gas emissions. The monitoring program should be designed so as to enable a comparison between measurement periods. A.3 The monitoring program should include assessment measures which (1) measure progress toward greenhouse gas reduction goals and (2) evaluate the effectiveness of or need for programs to work toward these goals. Climate Change Goal B. Establish targets for reducing greenhouse gas emissions and promoting sustainability for both city government and the Edmonds community. Regularly assess progress and program needs, identifying opportunities and obstacles for meeting greenhouse gas emission targets and sustainability. B.1 City government should take the lead in developing and promoting GHG emissions reduction for the Edmonds community. B.2 Establish and evaluate targets for reductions in greenhouse gas emissions for both Edmonds city government and the broader Edmonds community. Targets should be set for both short- and long-range evaluation. B.2.a. By 2020, reduce overall emissions of greenhouse gases to 1990 levels; 24 Community Sustainability B.2.b. By 2035, reduce overall emissions of greenhouse gases to twenty-five percent below 1990 levels; B.2.c. By 2050, Edmonds will do its part to reach global climate stabilization levels by reducing overall emissions to fifty percent below 1990 levels, or seventy percent below the expected emissions that year. B.3 Establish measures for evaluating the degree of sustainability of Edmonds city government and the broader Edmonds community. BA Annually assess the status and progress toward emissions reduction goals. Climate Change Goal C. Assess the risks and potential impacts on both city government operations and on the larger Edmonds community due to climate change. The assessment of risk and potential responses — both in terms of mitigation and adaptation — should evaluate the full range of issues, paying particular attention to those arising from the city's location on Puget Sound. C.1 Develop a climate change risk assessment and impact analysis for city government facilities and operations. C.2 Develop a climate change risk assessment and impact analysis for the Edmonds community which considers the potential long-term impacts to economic, land use, and other community patterns as well as the risks associated with periodic weather or climate events. Climate Change Goal D. Work with public and private partners to develop strategies and programs to prepare for and mitigate the potential impacts of climate change, both on city government operations and on the general Edmonds community. D.1 Develop a strategic plan that will help guide and focus City resources and program initiatives to (1) reduce greenhouse gas production and the carbon footprint of City government and the Edmonds community, and, (2) reduce and minimize the potential risks of climate change. The strategic plan should be coordinated with and leverage state and regional goals and initiatives, but Edmonds should look for and take the lead where we see opportunities unique to the Edmonds community. D.2 Build on and expand the strategic action plan to include programs that can involve both public and private partners. D.3 Undertake a policy review of City comprehensive, strategic and specific plans to assure that City policies are appropriately targeted to prepare for and mitigate potential impacts of climate change. These reviews may be done to correspond with scheduled plan updates, or accelerated where either a higher priority is identified or the next update is not specifically scheduled. Community Sustainability 25 Climate Change Goal E. Develop mitigation strategies that can be used by both the public and private sectors to help mitigate the potential impacts of new and ongoing development and operations. Develop programs and strategies that will encourage the retrofitting of existing development and infrastructure to mitigate and adapt to the effects of climate change. E.l Develop policies and strategies for land use and development that result in reduced greenhouse gas emissions for new development as well as redevelopment activities. E.2 Develop mitigation programs and incentives that both public and private development entities can use to reduce or offset potential greenhouse gas emissions associated with both new development and redevelopment. E.3 Develop programs and incentives that encourage existing land use, buildings, and infrastructure to reduce their carbon footprint. Demonstration programs and other cost-efficient efforts that do not rely on long-term government subsidies are preferred, unless dedicated funding sources can be found to sustain these efforts over time. 2 For example, see the Fourth Assessment Report; Climate Change 2007: Synthesis Report, by the Intergovernmental Panel on Climate Change, February 2007. 3 The Kyoto Protocol was adopted at the third Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC) in Kyoto, Japan, on 11, December 1997, and established potentially binding targets and timetables for cutting the greenhouse -gas emissions of industrialized countries. The Kyoto Protocol has not been ratified by the U.S. government. 4 The U.S. Mayors Climate Protection Agreement is as amended by the 73rd Annual U.S. Conference of Mayors meeting in Chicago in 2005. 5 ICLEI was founded in 1990 as the International Council for Local Environmental Initiatives following the World Congress of Local Governments for a Sustainable Future, held at the United Nations in New York. 26 Community Sustainability Community Health Introduction. Community health as it is used here means the overall aspects of public facilities and actions that can have an effect on the health and welfare of the community's citizens. The focus here is on the public realm, understanding that public actions and policies can have an impact on the well- being of Edmonds citizens. The idea is that whenever possible, government should be an enabler, supporting the expansion of opportunities for people so that they can be as self-sustaining as possible, thereby reducing the potential need for intervention from government, community -based or privately -derived services — services which are becoming increasingly costly and difficult to provide. Community health is closely linked to land use, transportation, public service delivery, and environmental quality. Clean water and clean air are a basic necessity when seeking to keep people healthy. In addition, there are certain land use and other actions that Edmonds can take to help foster healthy lifestyles throughout the community. Government also has a role in providing basic services, such as police and fire protection, while encouraging access to affordable housing and opportunities to live, work, and shop close to home. A current concern in the area of community health is obesity. The percentage of , o�uriipeople who are overweight has more than doubled in the last twentyyears, and childhood abesity is a potential precursor to abesity in adults [<or> The likelihood of obesity increases when children become adults?1. Edmonds can combat these trends by providing active community environments and promoting the availability of healthy foods and beverages. Transportation systems, development patterns, community design, and planning decisions can have profound effects on health and wellbeing. All citizens should be able to live, work, and play in environments that facilitate physical activity and offer healthy choices. Community Health Goal A. Develop a reporting and monitoring system of indicators designed to assess Edmonds' progress toward sustainable community health. A.1 Develop community indicators designed to measure the City's progress toward a sustainable community. A.2 Use these community indicators to inform long-term, mid-term (strategic), and budgetary decision -making. Community Health Goal B. Develop and maintain ongoing City programs and infrastructure designed to support sustainable community health. B.1 Promote a healthy community by encouraging and supporting diversity in culture and the arts. B.2 Promote a healthy community by encouraging and supporting access to recreation and physical activity. Community Sustainability 27 B.3 Integrate land -use. transportation. communitv design. and economic development planning wgith public health planning to increase opportunities for recreation, physical activi , and exposure to the natural environment. Promote a healthy connnunity b One example is planning for and implementing a connected system of walkways and bikeways which will provide alternative forms of transportation while also encouraging recreation,— and physical activity -and exposure to the nattffal envir-onmen. B.4 Promote a healthy community by seeking to protect and enhance the natural environment through a balanced program of education, regulation, and incentives. Environmental programs in Edmonds should be tailored to and reflect the unique opportunities and challenges embodied in a mature, sea -side community with a history of environmental protection and awareness. B.5 Develop and encourage volunteer opportunities in community projects that promote community health. Examples of such programs include beach clean-ups, walk -to -school groups, and helpers for the elderly or disabled. B.6 Increase access to health -promoting foods and beverages in the community. Form partnerships with organizations or worksites, such as health care facilities and schools, to encourage healthy foods and beverages. Community Health Goal C. Promote a healthy community by encouraging and supporting a diverse and creative education system, providing educational opportunities for people of all ages and all stages of personal development, including those with special needs or disabilities. C.1 City regulatory and planning activities should be supported by education programs which seek to explain and encourage progress toward desired outcomes rather then relying solely on rules and penalties. C.2 The City should partner with educational and governmental organizations to encourage community access to information and education. Examples include the Edmonds School District, Edmonds Community College, Sno-Isle Library, the State of Washington (including the Departments of Ecology and Fish and Wildlife), and the various private and public educational programs available to the Edmonds community. C.3 Encourage and support broad and flexible educational opportunities, including both traditional and new or emerging initiatives, such as technology -based solutions. Education should be flexible in both content and delivery. Community Health Goal D. Promote a healthy community through supporting and encouraging the development of economic opportunities for all Edmonds' citizens. D.1 Sustainable economic health should be based on encouraging a broad range of economic activity, with an emphasis on locally -based businesses and economic initiatives which provide family -supporting wages and incomes. 28 Community Sustainability D.2 Encourage the provision of a variety of types and styles of housing that will support and accommodate different citizens' needs and life styles. The diversity of people living in Edmonds should be supported by a diversity of housing so that all citizens can find suitable housing now and as they progress through changes in their households and life stages. D.3 Encourage the development and preservation of affordable housing. DA Develop programs and activities that promote and support a diverse population and culture, encouraging a mix of ages and backgrounds. Community Health Goal E. Support a healthy community by providing a full range of public services, infrastructure, and support systems. E.1 Recognize the importance of City services to local community character and sustainability by planning for and integrating public safety and health services into both short- and long-term planning and budgeting. Strategic planning should be a regular part of the decision -making process underlying the provision of these services to the community. E.2 Reduce energy consumption and maximize energy efficiency by promoting programs and educational initiatives aimed at a goal to "reduce, re -use, and recycle" at an individual and community -wide level. Reduce material consumption, waste generation, and resource depletion. E.3 Future planning and budgeting should be based on full life -cycle cost analysis and facility maintenance needs, as well as standards of service that best fit clearly articulated and supported community needs. Community Health Goal F. Support a healthy community by providing for community health care and disaster preparedness. F.1 Plan for and prepare disaster preparedness plans which can be implemented as necessary to respond effectively to the impacts of natural or man -induced disasters on Edmonds residents. F.2 Prepare and implement hazard mitigation plans to reduce and minimize, to extent feasible-, the exposure of Edmonds citizens to future disasters or hazards. F.3 Promote food security and public health by encouraging locally -based food production, distribution, and choice through the support of home and community gardens, farmers or public markets, and other small-scale, collaborative initiatives. FA Support food assistance programs and promote economic security for low income families and individuals. F.5 Promote and support community health by supporting national, state and local health programs and the local provision of health services. Community Sustainability 29 Environmental Quality Introduction. The environmental quality and beauty of the City of Edmonds is largely reflected through its natural resources, and especially its location on the shores of Puget Sound. The city's watersheds — including Lake Ballinger, a well-known landmark — and streams that flow into the Sound provide a rich and diverse water resource. The beaches, wetlands, and streams provide habitat for diverse wildlife including many species of migrating and resident birds which adds to the aesthetic and pleasing quality of the environment. As Edmonds has grown and developed, what were once abundant native forest and wetland habitats have now become increasingly scarce. Nonetheless, our parks, open spaces, and the landscaped areas of our neighborhoods integrate pleasing vistas and differentiation necessary to provide relief in a highly developed landscape. Throughout the city, woodlands, streams, wetlands and marine areas contain native vegetation that provide food and cover for a diverse population of fish and wildlife. Preserving and restoring these natural resources through environmental stewardship remains a high priority for the Edmonds community. Healthy ecosystems are the source of many less tangible benefits that humans derive from a relationship with nature such as providing a sense of well-being and sites for nature trails and other educational and recreational opportunities. Some ecological services that native plants and trees provide are stabilizing slopes and reducing erosion, replenishing the soil with nutrients and water, providing barriers to wind and sound, filtering pollutants from the air and soil, and generating oxygen and absorbing carbon dioxide. Our city beaches and the near - shore environment also represent unique habitats for marine organisms. So interconnected are the benefits of a functioning ecosystem, that non -sustainable approaches to land development and management practices can have effects that ripple throughout the system. The combination of marine, estuarine, and upland environments should be seen as an integrated and inter- dependent ecosystem supporting a variety of wildlife valuable to the entire Edmonds community. Environmental Quality Goal A. Protect environmental quality within the Edmonds community through the enforcement of community -based environmental regulations that reinforce and are integrated with relevant regional, state and national environmental standards. A.1 Ensure that the city's natural vegetation associated with its urban forests, wetlands, and other wildlife habitat areas are protected and enhanced for future generations. A.2 City regulations and incentives should be designed to support and require sustainable land use and development practices, including the retention of urban forest land, native vegetation, and wildlife habitat areas. Techniques such as tree retention and low impact development methods should be integrated into land use and development codes. A.3 Provide for clean air and water quality through the support of state and regional initiatives and regulations. AA Coordinate land use and transportation plans and implementation actions to support clean air an water. 30 Community Sustainability Environmental Quality Goal B. Promote the improvement of environmental quality within the Edmonds community by designing and implementing programs based on a system of incentives and public education. B.1 The City should promote and increase public awareness and pride in its natural areas and wildlife heritage. Special emphasis should be directed toward preserving natural areas and habitats (forests, wetlands, streams and beaches) that support a diversity of wildlife. B.2 Education and recreation programs should be designed and made available for all ages. B.3 Environmental education should be coordinated and integrated with other cultural, arts, and tourism programs. B.4 To encourage adherence to community values and goals, education programs should be designed to help promote understanding and explain the reasons behind environmental programs and regulations. Environmental Quality Goal C. Develop, monitor, and enforce critical areas regulations designed to enhance and protect environmentally sensitive areas within the city consistent with the best available science. C.1 Critical areas will be designated and protected using the best available science pursuant to RCW 36.70A.172. C.2 In addition to regulations, provide incentives that encourage environmental stewardship, resource conservation, and environmental enhancement during development activities. Environmental Quality Goal D. Develop, implement, and monitor a shoreline master program, consistent with state law, to enhance and protect the quality of the shoreline environment consistent with the best available science. D.1 Adopt a Shoreline Master Program that meets the requirements of state law and is consistent with community goals while being based on the best available science Community Sustainability 31 Implementing Sustainability Introduction. One of the reasons for adopting this Community Sustainability Element as part of the City's Comprehensive Plan is to provide a positive conceptual framework for coordinating and assessing the community's progress toward sustainability. For that to happen, there must be a tie between long-range comprehensive planning, mid -range strategic planning, and short-term implementation decisions embodied in budgeting and operations. There are a number of important principles to keep in mind when linking these sets of plans and actions. • Engage and educate. Connect with the community and provide ways to access and share information and ideas. • Integrate. Be holistic in approach, recognizing linkages and seeking to expand problem - solving and solutions beyond traditional or institutional boundaries. • Innovate. Go beyond conventional approaches; be experimental. • Be adaptive. Be flexible, discarding or modifying approaches that don't work and shifting resources where or when needed. Rigid rules will not always work or result in the most effective solution. • Be strategic. Target and prioritize actions to be effective and gain community support and momentum. Acknowledge limitations, but be creative and persistent in seeking solutions. • Be a leader. Lead by example, and by forming partnerships that effect decision -making while providing ways to address differing views and perspectives. • Measure and assess. Set benchmarks to monitor progress and provide feedback to policy development and decision -making. A key to being successful in applying these principles to sustainability will be the need to apply an adaptive management approach to planning and resource allocation. A passive approach can emphasize predictive modeling and feedback, with program adjustments made as more information is learned. A more active approach will emphasize experimentation — actively trying different ideas or strategies and evaluating which produces the best results. Important for both approaches is (a) basing plans and programs on multi -scenario uncertainty and feedback, and (b) integrating risk into the analysis. Either of these approaches can be used, as appropriate in the situation or problem being addressed. Implementation Goal A. Develop benchmarks and indicators that will provide for measurement of progress toward established sustainability goals. A.1 Benchmarks and indicators should be both understandable and obtainable so that they can be easily explained and used. 32 Community Sustainability A.2 Establish both short- and long-term benchmarks and indicators to tie long-term success to interim actions and decisions. A.3 Develop a reporting mechanism and assessment process so that information can be gathered and made available to the relevant decision process at the appropriate time. Implementation Goal B. Provide mechanisms to link long-range, strategic, and short-term planning and decision -making in making progress toward community sustainability. B.1 Schedule planning and budgeting decision processes to form a logical and linked progression so that each process builds on and informs related decisions. B.2 Long-range, strategic, and short-term planning should acknowledge the other time frames, decisions, and resources involved. For example, short-term budgetary and regulatory decisions should be designed to effect strategic and long-term goals. Figure 7: Example of Process Coordination Annual Plan Coordination Schedule JANfl FEB MAR APR MAY JUN JUL AUG 5EP I DCT NOV DEC City Council Retreat 000.1-0 Strategic Plan ■ • Budget �-------►; �--- CIP-------►� • TBU ------►i �- Capital Facilities Plan --- �_/; • ■ • r • Comprehensive ■ to Plan • �"'°" ■ Preliminary Final Approval 01011101. Prep Development Inputl Feedback Community Sustainability 33 Implementation Actions and Performance Measures. Implementation actions are steps that are intended to be taken within a specified timeframe to address high priority sustainability goals. Performance measures are specific, meaningful, and easily obtainable items that can be reported on an annual basis. These are intended to help assess progress toward achieving the goals and policy direction of this element. The actions and measures identified here are specifically called out as being important, but are not intended to be the only actions or measures that may be used by the City. Action 1: By 2017, update the City's Hazard Mitigation Plan to reference emergingrisks isks and hazards related to climate change. Performance Measure 1: Annuallyport on energy usage within the City, both by City government and by the larger Edmonds community. 34 Community Sustainability AI-7122 Planning Board Agenda Meeting Date: 09/10/2014 Discussion of Comprehensive Plan Housing Element Update Staff Lead/Author: Shane Hope Department: Development Services Initiated By: Information Subject/Purpose Discussion of Comprehensive Plan Housing Element Update Staff Recommendation Review and ask questions about the housing information in this packet. No action is needed now. w• NOTE: More details on the housing data --and perhaps a draft updated Comprehensive Housing Element --will be available for discussion at a later Planning Board meeting --September 24. Previous Board Action N/A Narrative A major review and update of the Edmonds Comprehensive Plan is due to the state by mid-2015. Previously, the City conducted an analysis, based on state guidance, and found that the City's existing Comprehensive Plan was mostly in compliance with Growth Management requirements. The biggest need is to substitute current data for the old data (some of which is 10-15 years old). Because of the short timeline, the Planning Board and City Council have concurred that the update can be basic in nature, focusing primarily on: (a) refreshing the data and supporting materials; (b) considering modest changes to reflect new information and state guidance; and (c) adding performance measures and, as appropriate, action steps --generally one of each for each major Plan element. (Note: The new information will need to include updated population and job forecasts through the year 2035.) Each major element is being considered for updating on a schedule previously reviewed by the Planning Board and City Council. While preliminary direction can be provided by the Board and Council after reviewing each draft element, a final decision on the entire Comprehensive Plan update is expected in mid-2015. Public hearings and other public information will be part of the process. "Housing" comprises a major element of the Comprehensive Plan. (See attached Housing Element, as excerpted from the existing Comprehensive Plan —Exhibit 1). The Housing Element features data from the 2000 Census and makes some comparisons to 1990. It also includes goals and policies. The Planning Board's September 10 discussion on the Housing Element will focus on any questions about the existing Housing Element and the status of new data for the update. Then at the September 24 meeting, a draft Housing Element update can be reviewed and discussed. On August 26, the Executive Director of the Housing Coalition of Snohomish County and Everett made a presentation to the City Council about countywide housing needs, especially related to affordability and our region's growing population. (See the attached slide presentation —Exhibit 2.) This includes important countywide data related to the need for affordable housing. Our city is also partnering with other cities and Snohomish County in the Alliance for Housing Affordability (AHA), a group formed from Snohomish County Tomorrow. Through AHA, work is being wrapped up on an" affordable housing profile" for each participating jurisdiction.. A DRAFT Edmonds Affordable Housing Profile is attached as Exhibit 3. (The final Profile should be very similar and ready for the September 24 Planning Board meeting.) The Profile has extensive data on housing in Edmonds. (NOTE: The Profile looks at housing affordability mostly from the perspective of theentire metropolitan region, which includes Seattle, while the information in Exhibit 2 from the Housing Coalition looks at housing affordability based just on the Snohomish County area --not including Seattle.) The key take -away from both reports is that Edmonds --like other cities in our region --needs more housing units over the next 20 years AND more affordable housing that will serve a broad spectrum of future needs. Attachments Exhibit 1: Current Housing Element Exhibit 2: Housing Coalition Presentation Exhibit 3: Draft Affordable Housing Profile Housing Element A. General Background Housing Stock and Type According to the Office of Financial Management (OFM), there were an estimated 13,054 housing units within the City of Edmonds in 1994. This represents an increase of less than one percent in the city's housing stock since 1990, when there were 12,945 dwelling units (1990 US Census). In comparison, over the period 1980-1990, the city's housing stock grew 21 percent, or approximately 1.9 percent per year. Housing stock declined (less than 1%) between 1990 and 1992, but grew (approximately 1%) between 1992 and 1994. Table 9 summarizes recent growth trends and forecasts for the City of Edmonds. Of the total stock of housing in 1994, 8,675 (66 percent) were single family units, 4,229 (32 percent) were multi -family units, and 150 (2 percent) were mobile homes or trailers. Compared with Snohomish County as a whole, Edmonds has a higher percentage of single-family homes and a lower proportion of multi -family and mobile homes/trailers. Between 1990 and 1994, the City annexed three parcels of land totaling approximately .059 square miles. The parcels included 64 housing units and 146 residents. These units accounted for most of the growth (57%) in the city's housing stock since 1990. Household Characteristics In 2000, there were 17,508 housing units in Edmonds. This was an increase of over 35% in the number of housing units in the city compared to 1990 (12,945). As noted earlier, this increase can largely be explained by annexations. Over the same period, the average number of persons per housing unit declined from 2.59 persons in 1980 to 2.37 persons in 1990, with a further decline to 2.26 persons in 2000 (US Census). The average household size showed a similar trend, falling to 2.32 persons per household by 2000. Compared with Snohomish County as a whole, Edmonds had fewer people per household in 1990 (2.37 vs. 2.68, respectively) and in 2000 (2.32 vs. 2.65). Average Table 8 City of Edmonds Housing Growth Housing Increase Percentage Average Units Increase Annual Increase Census: 1980 10,702 1990 12,945 2,243 21.0% 1.9% 2000 17,508 4,563 35.2% 3.1 % Growth Target: 2025 20,587 3,079 17.6% 0.7% Source: US Census; OFM, Snohomish County Tomorrow. 166 Housing household size within the city is expected to decrease to approximately 2.26 people by 2025 (City of Edmonds, 2004). Based on Census data, residents of Edmonds are older than those of Snohomish County, taken as a whole. In 1990, the median age of Edmonds residents was 38.3 years, compared with 32.2 years countywide. By 2000, the median age in Edmonds had increased to 42.0 years. Within the city, a large percentage of retired and elderly persons 62-years old and over reside in the downtown area (census tracts 504 and 505). Household Income: In general, residents of Edmonds earn relatively more income than residents of Snohomish County as a whole. Median 1990 household income in Edmonds was $40,515, nearly 10 percent higher than the county's median level of $36,847 for the same period (1990 US Census). By the 2000 census, Edmonds' median household income had increased to $53,552, but this was nearly equivalent to the County median of $53,060 (Edmonds was less than 1% higher). This is in contrast to per capita income, which is substantially higher in Edmonds compared to Snohomish County ($30,076 vs. $23,417, respectively). These figures reflect Edmonds' relatively smaller household sizes. Housing Ownership: According to the 1990 Census, 65.3 percent of the housing units within the city were owner -occupied and 32.1 percent were renter -occupied. This represented a decline in owner - occupancy from the 67.1 percent reported in the 1980 Census. By 2000, this trend had reversed, with 68.1 percent of the City's housing occupied by owners. The direction of the trend in housing occupancy is similar for Snohomish County as a whole, although ownership rates countywide were slightly higher in 1990, at 66 percent. Within Edmonds, ownership patterns vary significantly between neighborhoods; between 85 and 92 percent of homes along the waterfront were owner - occupied in 1990, compared with just over 50 percent east of Highway 99. Housing Values: According to the 1990 Census, housing values are considerably higher in the City of Edmonds than in Snohomish County as a whole. In 1990, the median value of owner -occupied units in Edmonds was $160,100, approximately 26 percent higher than the countywide median of $127,200. By 2000, the median value of owner -occupied housing had increased to $238,200 in Edmonds and $196,500 in Snohomish County, with Edmonds approximately 21 percent higher than the countywide median. Within Edmonds, median housing values vary considerably between neighborhoods; the highest valued homes are found along the waterfront, while the lowest values are found within interior neighborhoods and east of Highway 99. Housing Affordability: State Housing Policy Act — In 1993, Washington State enacted a Housing Policy Act (SB 5584) which is directed toward developing an adequate and affordable supply of housing for all economic segments of the population. The Act establishes an affordable housing advisory board that, together with the State Department of Community Trade and Economic Development (DCTED), is required to prepare a five-year housing advisory plan. The plan must document the need for affordable housing in the state; identify the extent to which the needs are being met through public and private programs; facilitate development of plans to meet affordable housing needs; and develop strategies and programs for affordable housing. DCTED is directed to provide technical assistance and information to local governments to assist in the identification and removal of regulatory barriers to the development of affordable housing. The Act also requires that by December 31, 1994, all local governments of communities with populations over 20,000 must adopt regulations that permit accessory units in residential zones. The Act also requires that communities treat special needs populations in the same manner as other households living in single family units. Edmonds has updated its development regulations to comply with both of these requirements. Housing 167 Comprehensive Housing Affordability Strategy — Jurisdictions receiving financial assistance from the U.S. Department of Housing and Urban Development (HUD) are required to prepare a Consolidated Housing and Community Development Plan. The plan must identify the community's housing, social service and community development needs for the next five years. The plan describes how HUD funds will be used to address the identified needs. In addition, the plan must be updated annually to include the most recent spending program and demonstrate that funding decisions respond to the strategies and objectives cited in the five-year plan. The Snohomish County Consortium, which includes Edmonds and 18 other cities and towns along with unincorporated Snohomish County, is responsible for the plan, and through Snohomish County's Department of Housing and Community Development, also prepares a yearly report called the Consolidated Annual Performance Evaluation Report (CAPER). This catalogs and analyzes the status of Consolidated Plan goals and is published for public review on a yearly basis. Key goals of the consolidated housing plan include: 1) Provide decent housing, including • assisting homeless persons to obtain affordable housing; • retaining affordable housing stock; • increasing the availability of permanent housing that is affordable and available without discrimination; and • increasing supportive housing that includes structural features and services to enable persons with special needs to live in dignity. 2) Provide a suitable living environment, including • improving the safety and livability of neighborhoods; • increasing access to quality facilities and services; • reducing the isolation of income groups within areas by deconcentrating housing opportunities and revitalizing deteriorating neighborhoods; • restoring and preserving natural and physical features of special value for historic, architectural, or aesthetic reasons; and • conserving energy resources. 3) Expand economic opportunities, including • creating jobs for low income persons; • providing access to credit for community development that promotes long-term economic an social viability; and • assisting residents of federally assisted and public housing achieve self-sufficiency. 168 Housing The main purpose of the Consolidated Plan is to develop strategies to meet the identified housing needs. These strategies are implemented through funding decisions which distribute HUD funds to local housing programs. Strategies to achieve the goals and needs identified in the Consolidated Plan include: • Increase the number of subsidized rental apartments affordable to households with incomes of up to 50% of area median income through (1) new construction, (2) acquisition and/or rehabilitation of existing units, (3) provision of rent subsidies, and (4) preservation of HUD Section 8 or similar subsidized housing in non-profit ownership where there is the risk of converting these units to market -rate housing. • Provide support for operation of existing homeless shelters and construction of needed shelters in under -served areas and for under -served populations. Increase the inventory of transitional housing for households needing assistance to move from homelessness to self-sufficiency. • Provide support for the operation and development of transitional and permanent housing and service programs for people with special needs. • Help low-income people to stay in their homes and maintain current housing stock through home repair, rehabilitation, and weatherization services. • Increase the incidence of home ownership using self-help construction, manufactured housing, homebuyer education, and mortgage assistance programs. • Improve the processes for utilizing grant funds allocated to the county. • Enhance the resources that can be used for housing production. • Utilized the expertise of housing providers who will create a stable and well - maintained low-income housing stock to expand the subsidized housing inventory in the community. • Address the unmet public facility needs of low-income households and neighborhoods. • Address the unmet basic infrastructure needs of low-income households and neighborhoods. • Support programs that provide for the well-being of youth by providing services such as case management, life -skills training, health care and recreation. • Support programs that assist low-income elderly citizens, where appropriate and cost- effective, to remain in their homes by providing housing repairs and reasonable modifications to accommodate disabilities and by supporting provision of supportive services. • Support services which address the most urgent needs of low-income and moderate - income populations and neighborhoods. Housing 169 • Support eligible local planning and administration costs incident to operation of HUD grant programs. Housing Needs: Snohomish County calculates housing needs based on households earning less than 95 percent of the county median income and paying more than 30 percent of their incomes for gross housing costs. Gross housing costs include rent and utility costs for renters and principal, interest, taxes, insurance, and any homeowner -fees for owners. Countywide, in 1990, 36,888 households countywide met the criteria for households in need; by 2000, this had increased to 55,361 households. There are expected to be an additional 28,557 low- and moderate -income households with housing needs by 2025 throughout the County. There were 2,601 households with need in Edmonds in 1990, and this had increased to 3,951 by 2000. It is anticipated that this will increase to 4,395 by 2025. The following chart shows how segments of the household population — and the relative cost burden of housing — are changing over time. Low- and moderate -income households have increased in number, and are a slightly higher proportion of Edmonds' households compared to 1990. The implication is that affordable housing will continue to be an important issue throughout the planning horizon. Edmonds 25,000 20,000 1.371 El Fair Share Differential 4,395 ❑ LowtMod U nmet Need 75,000 3,951 (Unadjusted} a ❑LowlMod Needs Met 4,252 2,647 3,737 ❑Middle & Upper Income 7G,000 40 2,T74 O 2 5,000 9.248 7 G,387 Tr290 0 1990 2000 2025 (Projected) Source: 2004 Supplement to Technical Report Fair Share Housing Allocation, Snohomish County Tomorrow Snohomish County and its cities, through countywide planning policies, has used an allocation model to elaborate on the indicated level of need for affordable housing in the county. The county applies two factors to the number of households in need to give areas credit for their existing stock of low- cost housing and assign them responsibility to house a portion of low -wage employees in the 170 Housing jurisdiction. The purpose of these factors is to provide indicators of the relative housing need for jurisdictions based on the model's assumptions. In 2000, Edmonds' adjusted number of households in need was 5,322 households; this is projected to increase to 5,885 by 2025 — an increase of 564 households. Therefore, Edmonds has a continuing need to provide affordable, low-cost housing within the city. Assisted Housing Availability: In 1995 there were two HUD -assisted developments providing a total of 87 units for low-income, elderly residents within the City of Edmonds. This was more than doubled by a new development approved in 2004 for an additional 94 units. Since 1995, 167 assisted care living units have been built in the downtown area, specifically targeting senior housing needs. Although the Housing Authority of Snohomish County did not operate any public housing units within Edmonds prior to 1995, it purchased an existing housing complex totaling 131 units in 2002. The Housing Authority continues to administer 124 Section 8 rent supplement certificates and vouchers within the city. In addition, there are currently 36 adult family homes providing shelter for 187 residents. This is a substantial increase from the 13 adult family homes providing shelter for 66 residents in 1995. Growth Management goals and policies contained in the City's Comprehensive Plan encourage availability of resources to insure basic community services and ample provisions made for necessary open space, parks and other recreation facilities; preservation of light (including direct sunlight), privacy, views, open spaces, shorelines and other natural features, and freedom from air, water, noise and visual pollution; and a balanced mixture of income and age groups. Land Use policies encourage strategic planning for development and redevelopment that achieve a balanced and coordinated approach to economic development, housing and cultural goals; and encourage a more active and vital setting for new businesses supported by nearby residents, downtown commercial activity and visitors throughout the area. Policies encourage identification and maintenance of significant public and private social areas, cultural facilities, and scenic areas; and maintenance and preservation of historical sites. Commercial Land Use policies encourage identification and reservation of sufficient sites suited for a variety of commercial uses. Housing goals are directed toward providing housing opportunities for all segments of the city's households; supporting existing neighborhoods and preserving/rehabilitating the housing stock; maintaining high quality residential environments; and providing assistance to developing housing for elderly, disabled and low-income households. These goals are supported by policies which include review of regulatory impediments to control of housing costs and affirmative measures to support construction of housing for protected groups; encouraging expansion of the types of housing available, including accessory dwelling units, mixed use, and multi -family housing; flexible development standards; and review and revision of development regulations, including assessing the feasibility of establishing time limits for permitting; consolidating permitting; implementing administrative permitting procedures and instituting preapplication hearings. Other measures to mitigate potential housing impacts include determining whether any public land is available which could be used to help meet affordable housing targets; development of a strategy plan, including target number of units and development timeline; technical assistance programs or information to encourage housing rehabilitation and development of accessory units; and a strong monitoring program with mid -course correction features (see the discussion below). B. Strategies to Promote Affordable Housing. Housing 171 In order to respond to the continuing need to provide affordable housing for the community, the City has undertaken a series of reasonable measures to accomplish this goal, consistent with the policy direction indicated by Snohomish County Tomorrow and the Countywide Planning Policies. These reasonable measures or strategies to promote affordable housing include: Land Use Strategies • Upzoning. The City has upzoned a substantial area of previously large lot (12,000+ square foot lots) zoning to ensure that densities can be obtained of at least 4.0 dwelling units per acre. The City has also approved changes from single family to multi family zoning in designated corridor areas to provide more housing units at reduced cost to consumers. • Density Bonus. A targeted density bonus is offered for the provision of low income senior housing in the City. Parking requirements are also reduced for this housing type, making the density obtainable at lower site development cost. • Cluster Subdivisions. This is accomplished in the city through the use of PRDs. In Edmonds, a PRD is defined as an alternate form of subdivision, thereby encouraging its use as a normal form of development. In addition, PRDs follow essentially the same approval process as that of a subdivision. • Planned Residential Development (PRD). The City has refined and broadened the applicability of its PRD regulations. PRDs can still be used to encourage the protection of environmentally sensitive lands; however, PRDs can also now be used to encourage infill development and flexible housing types. • Infill Development. The City's principal policy direction is aimed at encouraging infill development consistent with its neighborhoods and community character. This overall plan direction has been termed "designed infill" and can be seen in the City's emphasis and continued work on streamlining permitting, revising codes to provide more flexible standards, and improving its design guidelines. • Conversion/Adaptive Reuse. The City has established a new historic preservation program intended to support the preservation and adaptive reuse of existing buildings, especially in the historic downtown center. Part of the direction of the updated plans and regulations for the Downtown Waterfront area is to provide more flexible standards that can help businesses move into older buildings and adapt old homes to commercial or mixed use spaces. An example is the ability of buildings on the Edmonds Register of Historic Places to get an exception for parking for projects that retain the historic character of the site. Administrative Procedures • Streamlined approval processing. The City generally uses either a Hearing Examiner or staff to review and issue discretionary land use decisions, thereby reducing permitting timelines and providing some degree of certainty to the process. The City continues to provide and improve on an extensive array of information forms and handouts explaining its permitting processes and standards. The City has also established standards for permit 172 Housing review times, tailored to the type and complexity of the project. For example, the mean processing time for processing land use permits in 2003 was 39 days, less than one-third of the 120-day standard encouraged by the State's Regulatory Reform act. • Use -by -Right. The City has been actively reviewing its schedule of uses and how they are divided between uses that are permitted outright vs. permitted by some form of conditional use. The City has expanded this effort to include providing clearer standards, potentially allowing more approvals to be referred to staff instead of the Hearing Examiner hearing process. • Impact mitigation payment deferral. The City's traffic mitigation impact fees are assessed at the time of development permit application, but are not collected until just prior to occupancy. This provides predictability while also minimizing "carrying costs" of financing. Development Standards • Front yard or side yard setback requirements. Some of the City's zones have no front or side yard setback requirements, such as in the downtown mixed use zones. In single family zones, average front setbacks can be used to reduce otherwise required front yard setbacks. • Zero lot line. This type of development pattern can be achieved using the City's PRD process, which is implemented as an alternative form of subdivision. • Street design and construction. Street standards are reviewed and updated on a consistent basis, taking advantage of new technologies whenever possible. • Alleys. The City has an extensive system of alleys in the downtown area and makes use of these in both mixed use and residential developments. • Off-street parking requirements. The City has substantially revised its off-street parking standards, reducing the parking ratios required for multi family development. The City also simplified and streamlined its parking requirements for the downtown mixed use area, thereby encouraging housing downtown. • Sanitary Sewer, Water, and Stormwater systems. Innovative techniques are explored and utilized in both new systems and in the maintenance of existing infrastructure. Low -Cost Housing Types • Accessory dwellings. The City substantially revised its accessory dwelling regulations, providing clearer standards and streamlining their approval as a standard option for any single family lot. Cottage housing developments. The City is exploring this option, although it would be expected to have limited application. Housing 173 Mixed -use development. The City has strengthened and expanded its mixed use development approach. Downtown mixed use development no longer has a density cap, and this — combined other regulatory changes — has resulted in residential floor space drawing even with commercial floor space in new developments in the downtown area. Mixed use zoning was applied in the Westgate Corridor, and revised mixed use development regulations are being prepared for application in the Hospital/Highway 99 Activity Center as well as along Highway 99. • Mobile/manufactured housing. The City's regulation of manufactured homes has been revised to more broadly permit this type of housing in single family zones. Housing Production & Preservation Programs • Housing preservation. The City provides strict enforcement of its building codes, intended to protect the quality and safety of housing. The City has also instituted a historic preservation program intended to provide incentives to rehabilitate and restore commercial, mixed use, and residential buildings in the community. • Public housing authority / Public and nonprofit housing developers. The City supports the Housing Authority of Snohomish County, as evidenced by its approval of the conversion of housing units to Housing Authority ownership. For -profit housing builders and developers. Many of the strategies outlined above are aimed at the for -profit building market. The City's budget restrictions limit its ability to directly participate in the construction or provision of affordable housing, so it has chosen instead to affect the cost of housing by reducing government regulation, providing flexible development standards, and otherwise minimize housing costs that can be passed on to prospective owners or renters. Housing Financing Strategies • State / Federal resources. The City supports the use of State and Federal resources to promote affordable housing through its participation in the Snohomish County Consortium and the Community Development Block Grant program. These are important inter jurisdictional efforts to address countywide needs. There will be difficulty meeting affordability goals or significantly reducing the current affordable housing deficit. The city is nearly fully developed and has limited powers and resources to produce subsidized housing. However, participation in joint funding projects (such as non-profit organizations funded by the cities of Kirkland, Redmond and Bellevue) would help to mitigate these impacts. C. Goal - Housing I - Discrimination and Fair Housing - Goal 1. There should be adequate housing opportunities for all families and individuals in the community regardless of their race, age, sex, religion, disability or economic circumstances. 174 Housing D. Goal - Housing I - Discrimination and Fair Housing - Goal 2. Insure that past attitudes do not establish a precedent for future decisions pertaining to public accommodation and fair housing in accordance with the following policy: E. Goal - Housing II - Low Income, Elderly and Disabled Housing. A decent home in a suitable living environment for each household in accordance with the following policies: E.1. Encourage the utilization of the housing resources of the federal government to assist in providing adequate housing opportunities for the low income, elderly and disabled citizens. E.2. The City should work with the Washington Housing Service and other agencies to: E.2.a. Provide current information on housing resources; E.2. b. Determine the programs which will work best for the community. E.2.c. Conduct periodic assessments of the housing requirements of special needs populations to ensure that reasonable opportunities exist for all forms of individual and group housing within the community. F. Goal - Housing III - Housing Rehabilitation. Preserve and rehabilitate the stock of older housing in the community in order to maintain a valuable housing resource in accordance with the following policies: F.1. Program should be developed which offers free or low cost minor home maintenance service to low income, elderly or handicapped persons. F.2. Building code enforcement should be utilized to conserve healthy neighborhoods and encourage rehabilitation of those that show signs of deterioration. F.3. Ensure that an adequate supply of housing exists to accommodate all households that are displaced as a result of any community action. FA Evaluate City ordinances and programs to determine if they prevent rehabilitation of older buildings. G. Goal. Provide affordable (subsidized housing, if need be) for elderly, disadvantaged, disabled and low income in proportion to the population of Edmonds in accordance with the following policies: G.1. The City should aggressively pursue funds to construct housing for elderly, disabled and low income. Units should blend into the neighborhood and be designed to be an asset to area and pride for inhabitants. [Ord. 2527 §3, 1985.1 Housing 175 G.2. City zoning regulations should expand, not limit, housing opportunities for all special needs populations. H. Goal: Provide a variety of housing for all segments of the city that is consistent and compatible with the established character of the community. H.1. Expand and promote a variety of housing opportunities by establishing land use patterns that provide a mixture of housing types and densities. H. I.a. Provide for mixed use, multifamily and single family housing that is targeted and located according to the land use patterns established in the land use element. H.2. Encourage infill development consistent with the character of the surrounding neighborhood. H.2.a. Within single family neighborhoods, encourage infill development by considering innovative single family development patterns such as Planned Residential Developments (PRDs). H.2. b. Provide for accessory housing in single family neighborhoods that addresses the needs of extended families and encourages housing affordability. H.2. c. Provide flexible development standards for infill development, such as non -conforming lots, when development in these situations will be consistent with the character of the neighborhood and with the goal to provide affordable single family housing. I. Goal: Provide housing opportunities within Activity Centers consistent with the land use, transportation, and economic goals of the Comprehensive Plan. I.1. Promote development within Activity Centers supports the centers' economic activities and transit service. I.I.a. Provide for mixed use development within Activity Centers. 11.b. Plan for housing that is located with easy access to transit and economic activities that provide jobs and shopping opportunities. 11.c. Consider adjusting parking standards for housing within Activity Centers to provide incentives for lower -cost housing when justified by available transit service. J. Goal: Government should review and monitor its permitting processes and regulatory structures to assure that they promote housing opportunities and avoid, to the extent possible, adding to the cost of housing. J.1. Provide the maximum amount of certainty and predictability in government permitting processes. 176 Housing J.I.a. Consider a wide variety of measures to achieve this objective, including such ideas as: ..establishing time limits for permitting processes; ..developing consolidated permitting and appeals processes; .. implementing administrative permitting procedures; ..using pre -application processes to highlight problems early. J.2. Establish monitoring programs for permitting and regulatory processes. J.2.a. Monitoring programs should be established to review the types and effectiveness ofgovernment regulations and incentives, in order to assess whether they are meeting their intended purpose or need to be adjusted to meet new challenges. K. Goal: Opportunities for increasing the affordability of housing have the best chance for success if they are coordinated with programs that seek to achieve other community goals as well. Housing affordability should be researched and programs developed that address multiple Comprehensive Plan goals and objectives. K.1. Develop housing programs to encourage housing opportunities that build on linkages between housing and other, complementary Comprehensive Plan goals. K.I.a. New programs that address housing affordability should be coordinated with programs that address development of the arts, encourage historic preservation, promote the continued development of Activity Centers and transit friendly development, and that encourage economic development. L. Goal: In addition to traditional height and bulk standards, design is an important aspect of housing and determines, in many cases, whether or not it is compatible with its surroundings. Design guidelines for housing should be integrated, as appropriate, into the policies and regulations governing the location and design of housing. L.1. Provide design guidelines that encourage flexibility in housing types while ensuring compatibility of housing with the surrounding neighborhood. L.I.a. Incentives and programs for historic preservation and neighborhood conservation should be researched and established to continue the character of Edmonds' residential and mixed use neighborhoods. L. Lb. Design guidelines for housing should be developed to ensure compatibility of housing with adjacent land uses. Housing 177 22.1000 by 2035 Affordable Housing in Snohomish County Presentation to Edmonds City Council August 26, 2014 What is "Affordable" No more that 30% of income goes to the cost of housing, including utilities. AFFORDABLE HOUSING: In general, housing for which the occupant(s) is/are paying no more than 30 percent of his or her income for gross housing costs, including utilities. Please note that some jurisdictions may define affordable housing based on other, locally determined criteria, and that this definition is intended solely as an approximate guideline or general rule of thumb.' lhttp://www.huduser.org/portal/glossary/glossary_a.htmI Calculations for Affordable Housing Snohomish County Area Median Income for all households = $67,777 (2011)1 Affordable housing for households at 100 percent AMI $67,777 x 100 percent = $67,777 / 12 months = $5648/mo. x 30 percent = $1694/mo. max. housing cost Affordable housing for households at 80 percent AMI $67,777 x 80 percent = $54,221 / 12 months = $4518/mo. x 30 percent = $1356/mo. max. housing cost Affordable Housing for households at 50 percent AMI: $67,777 x 50 percent = $33,888 / 12 months = $2824/mo. x 30 percent = $847/mo. max. housing cost Affordable Housing for households at 30 percent AMI: $67,777 x 30 percent = $20,333 / 12 months = $1694/mo. x 30 percent = $508/mo. max. housing cost 1 Source: American Communities Survey, 2011 5-year estimate Income in Snohomish County Snohomish County Household Area Median Income (AMI) _ $67,777 30% and below AMI (extremely low income) $20,333 and less 11% 30-50% of AMI (very low income) 50-80% of AMI (low income) $20,334 - $33,888 $33,889 - $54,221 Subject Edmonds, Washington Estimate Percent INCOME AND BENEFITS (IN 2012 INFLATION -ADJUSTED DOLLARS) Total households 17,396 100.00% Less than $10,000 671 3.90% $10,000 to $14,999 488 2.80% $15,000 to $24,999 1,326 7.60% $25,000 to $34,999 1,4191 8.20% Total 3,904 22.50% 1 Source: ACS, 2011 5-year estimates zSource: ACS, 2012 5-year estimates 11% 17% 221000 by 2035 Housing needed by 2035 to accommodate projected population growth Sno Col 971128 101684 101684 161512 Edmonds' 21790 307 307 474 'Source: 2013 Housing Characteristics & Needs in Snohomish County Report, p59 22.0000 by 2035 How Do We Get There? Reduce Poverty • Better Education Outcomes for More Students • Job Training • Address Income Inequality 221000 by 2035 How Do We Get There Create More Affordable Housing (New/Acquisition & Rehab) • 2015 Comprehensive Plan Housing Element Updates - Strategies, goals & policies to meet housing need at 30% AM I, 30-50% AM I & 50-80% AM I • Incentivize Affordable Housing - Density bonuses, multi -family tax exemption, fee waivers, reduced parking requirements, etc • Support Policies that Increase Public Funding - WA State Housing Trust Fund - Local Housing Levy 221000 by 2035 Why? • Quality of Life in Our Communities - Our communities and neighborhoods are better when our people are housed - Higher density, attractive and affordable housing promotes community • Economic Advantages - Each dollar of public funds invested in affordable housing generally attracts/leverages an additional S dollars of private equity - People who are in housing they can afford have more disposable income to spend in the community - Safe, stable, affordable housing for special needs populations significantly reduces contact with and cost to cities public safety services and emergency medical services • Common Humanity I 4ttentfon to Desig S. I _ � tom. {.� - �•-71. -•r•'; F.T I1 k J •. � � _'• I L t- r • r r _ . • r- }r• JI .1 • � � Z F1 ~ Y I1 1 �yr 1f.1 Y -1 I •LI I L—�JL 5 — �1 •� .I — r ". --NOW Pay Attention to Des-ig 4 Pay Attention to Design King County Housing Authority, Greenbridge Apts, Seattle Artspace Everett Lofts, Everett, WA Resources • Alliance for Housing Affordability Kristina Gallant, kgallant@hasco.org, 425-293- 0601 • Municipal Research Services Council, http://www.mrsc.org/subiects/planning/housing/ords.aspx#waivers • Housing Characteristics and Needs in Snohomish County Report, http://snohomishcountywa.gov/1585/Housing-Characteristics-Needs-Report • Snohomish County Demographic Trends & Initial Growth Targets, http://www.co.snohomish.wa.us/documents/Departments/PDS/Planning Commis ion/DemogTrends PIng ommission Feb-25-2014.pdf • Housing Consortium of Everett & Snohomish County Mark Smith, Executive Director 425-339-1015 HOUSING mark@ housingsnohomish.org CONSORTIUM Of EVERETT AND SNOHOMISH COUNTY 91 D I Ik4wi� Housing Profile: City of Edmonds Prepared for the City of Edmonds by the Alliance for Housing Affordability September 2014 Acknowledgements Special thanks to all those who helped prepare this profile. City Staff Shane Hope, Development Services Director Rob Chave, Planning Manager Alliance for Housing Affordability Kristina Gallant, Analyst Will Hallett, Intern Acknowledgements Special thanks to all those who helped prepare this profile. City Staff Shane Hope, Development Services Director Alliance for Housing Affordability Kristina Gallant, Analyst Will Hallett, Intern Table of Contents ExecutiveSummary........................................................ iv Maps, Figures, & Tables ................................................. vi Introduction............................................................................. 1 Population and Community............................................3 HouseholdProfiles.................................................................................................................. 8 Existing Housing Stock.................................................10 Subsidized Housing Units: Permanent and Transitional.............................................12 MarketRate Rental Units....................................................................................................13 SharedRental Housing........................................................................................................19 Current Challenges and Opportunities ..........................20 Maps........................................................................................ 22 Appendices.................................................................... 40 Appendix A: Multifamily Rent Comparables by Property, City of Edmonds .......... A 1 Appendix B: Assisted Units by Property, City of Edmonds ........................................... B 1 Appendix C. Single Family Home Sales, 2008-2012......................................................CI Appendix D: Affordable Housing Glossary.................................................................... D 1 AppendixE. Methodology..................................................................................................... 1 Executive Summary The City of Edmonds, currently home to 39,950 people, is projected to accommodate nearly 6,000 new residents by 2035, a dramatic change over the stable population levels the City has seen over the past 20 years. Housing in Edmonds is currently mostly comprised of single family homes, though most growth will have to be accommodated in multifamily development.The City's median income is relatively high compared to other cities in the region, and home values are generally higher as well. Homes are diverse in age, with a significant concentration of units built between 1950 and 1969 compared to the County overall. Currently 38% of Edmonds households are estimated to be cost burdened, meaning they spend more than 30% of their monthly income on rent or home ownership costs. Cost burden is most challenging for those with low incomes, who may have to sacrifice other essential needs in order to afford housing. Other summary statistics are provided below. A Summary of Edmonds by the Numbers Population 39,9501 Total Households 17,3962 Family Households with Minor Children 4,054 Cost -Burdened Households 6,672 Households Earning Less than 50%AMI1 5,322 2012 Median Household Income $73,072 Minimum Income to Afford 2012 Median Home $75,796 Total Homes 17,396 Single Family Homes, Detached or Attached 12,047 Multifamily Homes 6,471 Manufactured Homes 126 Section 8 Housing Choice Vouchers 195 Other Dedicated Subsidized Housing 125 Transitional Units 16 Workforce Housing 201 Total Renter -Occupied Housing Units 5,000 Total Owner -Occupied Housing Units 12,396 Total Vacant Housing Units 1,248 According to 2013 Dupre and Scott data, Edmonds'rental housing market is generally affordable to households earning at least 80% AMI. Households earning between 50 and 80% AMI will find the majority of homes smaller than five bedrooms affordable as well. A limited supply of small units is affordable to those earning between 30 and 50% AMI (Area Median Income for the Seattle -Bellevue metropolitan area). Market rents are not affordable to iv extremely low income households, though this is expected in almost all communities, due to the costs of construction and maintenance in today's market. Shared rental housing is a market rate option for these households, though it will not work for all households, particularly families. A lack of affordable rental housing for extremely low and very low income households is very common, as, in order to operate a property and keep rents low enough in today's housing market, some kind of financial assistance is typically required. Assistance can be ongoing, to make up the difference between 30% of tenants' income and market rents (such units are considered'subsidized' in this report), or be provided as capital funding, reducing overall project costs and making it possible to keep rent levels down (con sidered'workforce' units). Edmonds currently has 320 units of subsidized housing and 201 units of workforce housing. In addition, the City has 16 units of transitional housing. However, with 5,322 households earning less than 50% AMI, there is still a need to increase this supply. The City is pursuing a number of strategies to address this challenge. In 2012, the median sale price for a single family home in Edmonds was $339,975. The estimated monthly payment for this home would be $1,895, including debt service, insurance, taxes, and utilities. For a family to afford this payment without being cost burdened, they would require an annual income of at least $75,796, which is just above the City's median income.' Affordability for 2013 cannot be calculated at this time, but average assessed values suggest that home prices are rising as the housing market continues to recover following the recession, and affordability is retreating. Edmonds has the third highest average assessed 2014 home value in Snohomish County behind Woodway and Mukilteo respectively, at $351,100, which represented a 10.7% increase over 2013.2 Snohomish County Assessor, 2014 Snohomish County Assessor, "Snohomish County Assessor's Annual Report for 2014Taxes , 2014. V Maps, Figures, & Tables Figure 1.1. Total Population, City of Edmonds, 1990-2013.................................................................................3 Figure 1.2. Population Share by Housing Tenure, City of Edmonds & Snohomish County....................4 Table I.I. Cost Burden by Income and Housing Tenure, City of Edmonds & Snohomish County ....... 5 Figure 1.3. Household Share by Income Level, City of Edmonds and Snohomish County....................5 Figure 1.4. Estimated Housing &Transportation Costs as a Share of Income, City of Edmonds & SnohomishCounty....................................................................................................................................................................6 Figure 1.5. Population Pyramid, 2000-2010, City of Edmonds..........................................................................7 Figure 2.1. Age Distribution of Housing Stock, City of Edmonds & Snohomish County......................10 Figure 2.2. Units in Structure by Housing Tenure, City of Edmonds............................................................10 Figure 2.3. Net Newly -Permitted Units, City of Edmonds & Snohomish County.....................................11 Figure 2.4. Newly Permitted Units by Type, City of Edmonds........................................................................11 Table 2.1. Assisted Units by Income Level Served, City of Edmonds...........................................................12 Table 2.2. Permanent Subsidized Units by Funding Source, City of Edmonds........................................12 Table 2.3. Workforce Units by Funding Source, City of Edmonds.................................................................13 Table 2.4. Renter -Occupied Units by Rent and Unit Size, City of Edmonds (Without Utilities) .......... 14 Table 2.5. Average Rent and Affordability by Size, City of Edmonds (Including Utilities)....................14 Table 2.6. Distribution of Rent Affordability by Size, City of Edmonds.......................................................15 Table 2.7. Average Rents by Size, Single- and Multifamily, City of Edmonds...........................................15 Table 2.8. Affordable Home Sales by Size, City of Edmonds, 2012...............................................................16 Figure 2.5. Home Sale Affordability Gap, 2012, City of Edmonds.................................................................17 Figure 2.6. Home Sale Affordability, 2008-2012, City of Edmonds...............................................................17 Table 2.9.2012 Affordable Home Sales by Type, City of Edmonds Table 2.10. Size of Homes Sold by Type, 2012, City of Edmonds...................................................................19 Figure 3.1. Income allocation of projected new housing units, City of Edmonds .................................. 20 Map 1.1.Total Population (Block Groups)............................................................................................................. 23 Map 1.2. Average Family Size (Block Groups)...................................................................................................... 24 Map 1.3. Average Household Size (Block Groups).............................................................................................. 25 Map 1.4. Renter -Occupied Housing Units............................................................................................................. 26 Map 1.5. Vacant Housing Units (Block Groups)................................................................................................... 27 Map1.6. Homeowners with Mortgages................................................................................................................ 28 Map 1.7. Very Low -Income Households................................................................................................................. 29 Map1.8. Cost -Burdened Renters.............................................................................................................................. 30 Map1.9. Cost -Burdened Owners.............................................................................................................................. 31 Map 1.10. Housing &Transportation, Percent of Low HH Income...............................................................32 Map 2.1. Voucher Location and Transit Access.................................................................................................... 33 Map2.2. Age of Housing Stock................................................................................................................................. 34 Map 2.3. Condition of Housing Stock..................................................................................................................... 35 Map2.4. Housing Density........................................................................................................................................... 36 Map 2.7. New Single Family Permits by Census Tract, 2011........................................................................... 37 Map 2.8. New Multifamily Permits by Census Tract, 2011............................................................................... 38 Map 2.9. Average Renter Household Size.............................................................................................................. 39 Table E.I. Maximum Monthly Housing Expense by Household Size, Seattle -Bellevue HMFA 2012...1 Vi Introduction In Snohomish County's Countywide Planning Policies, Housing Goal 5 states that"the cities and the county shall collaborate to report housing characteristics and needs in a timely manner for jurisdictions to conduct major comprehensive plan updates and to assess progress toward achieving CPPs on housing" Building on the County's efforts in preparing the countywide HO-5 Report, this profile furthers this goal by providing detailed, local information on existing conditions for housing in Edmonds so the City can plan more effectively to promote affordable housing and collaborate with neighboring jurisdictions. This profile will present the full spectrum of its subsidized and market rate housing stock. Permanent settlement in present day Edmonds dates back to 1890, making Edmonds the oldest incorporated city in Snohomish County. Edmonds was born out of homesteading and logging operations in the late 1800's and, through the years, built economic foundations on a host of platforms including milling, shingle splitting, and manufacturing, among others. Today, Edmonds has almost 40,000 residents and over 17,000 households. Edmonds' growth has been modest in recent years (less than 1 % annually), and this trend is expected to continue.The majority of the City's neighborhoods are composed of single family homes, though future growth is likely to follow recent trends emphasizing more multifamily development. Existing multifamily residential developments are focused on major arterials, downtown, and near Highway 99.The Downtown/Waterfront and Highway 99 corridor areas are considered the primary commercial centers of Edmonds, with one smaller but significant center at Westgate (located at the intersection of Edmonds Way and 100th Avenue West). Smaller neighborhood commercial centers are located in several neighborhoods, such as Five Corners, Firdale, and Perrinville. Several affordable housing -specific terms and concepts will be used throughout the profile. Income levels will be defined by their share of"Area Median Income, or AMI. For this report, median income for the Seattle -Bellevue HUD Metro Fair Market Rent Area (HMFA) will be used for AMI because it is the measure HUD uses to administer its programs. Housing agencies typically define income levels as they relate to AMI. These are: • Extremely Low Income - up to 30% AMI • Very Low Income - up to 50% AMI • Low Income - up to 80% AMI • Moderate Income - up to 95% AMI • Middle Income - up to 120% AMI When a household spends more than 30% of their income on housing, it is considered to be "cost burdened", and, if lower income, will likely have to sacrifice spending on other essentials like food and medical care. "Costvburden" is used as a benchmark to evaluate housing affordability. Population and Community In 2013, Edmonds was home to an estimated 39,950 people, only slightly higher than its 2000 population of 39,544.3The City's population has been stable since the mid-1990s, when there were several large jumps due to annexations in south and southwest Edmonds. The City is projected to grow at a modest rate moving forward, accommodating an estimated 5,841 additional residents by 2035.This increase would require 2,790 additional housing units, which is near its estimated capacity of 2,646 additional units. Of the current capacity, the vast majority is in multifamily properties, with a high portion through redevelopment 4 Figure 1.1. Total Population, City of Edmonds, 1990-2013 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 O N M '�t Ln �O r� W ON O N M � Ln %O r` O Ch O � N M ON d\ M ON M ON ON M ON ON O O O O O O O O O O ON d> O CDO O O O CD CD CD CDO O O O N N N N N N N N N N N N Source: Washington State Office of Financial Management, 2013 The 20121 population includes 17,396 households with an average household size of 2.3 people, compared to 2.6 for the County. Of these, 10,997, or 63%, are family' households. Overall, 23.3% of households have children. In Snohomish County overall, 68% of households are families, and 32.5% of households have children.The average family size in Edmonds is 2.8, compared to 3.12 for the county. The average Edmonds renter household is smaller than the average owner household — 2 people per renter household versus 2.4 per owner household.' The share of foreign born residents in Edmonds is similar to the County overall - 13.9% 3 Washington State Office of Financial Management, 2013 4 Snohomish Cou nty Tomorrow Planning Advisory Committee,"Housing Characteristics and Needs in Snohomish County", 2014 5 2012 data is used as, at time of writing, it is the most recent ACS 5-year data available 6 Based on the US Census Bureau's definition of family, which "consists of two or more people (one of whom is the householder) related by birth, marriage, or adoption residing in the same housing unit" 7 US Census Bureau; American Community Survey, 2008-2012 R1 versus 14.1 % for the County. The population of foreign born residents who are not U.S. citizens is lower in Edmonds than the County - 44% of foreign born residents versus 51 % of foreign born County residents. Residents born in Asia constitute 47% of the foreign born Edmonds population while European residents make up 20% of foreign born residents. 16% of Edmonds residents speak a language other than English in the home and 6% of residents speak English "less than very well", both proportions are lower than the County's numbers.' The share of the population living in rented homes is similar to the share Countywide. 31 % of Edmonds residents and 33% of Snohomish County residents currently live in rented homes. As shown in Figure 1.2, the proportion of homeowners remained relatively constant between 2000 and 2010, increasing slightly from 68% to about 69%.1 36% of Edmonds' population lives in multifamily homes, compared to 31 % across the County (renters and owners combined). The City's vacancy rate is 6.7% compared to 6.4% for the County as a whole.10 Figure 1.2. Population Share by Housing Tenure, City of Edmonds & Snohomish County 100% 80% 60% 40% 20% 0% Edmonds Snohomish County 100% 80% 60% 40% 20% 0% 2000 2010 2000 2010 ■ Owners Renters Owners Renters Source: US Census Bureau, 2000,• US Census Bureau, 2010 The 2012 HMFA AMI for Seattle -Bellevue, which is referenced in this report as a standard for AMI, is $88,000, higher than the County's overall 2012 median income of $68,338. Edmonds 2012 median income is higher than the County AMI at $73,072. However, some economic segments of the City's population could be at risk of being housing burdened. Compared to HUD HMFA AMI and based on 2012 American Community Survey (ACS) 5-year estimates: • 2,638 households, or 15%of Edmonds'total, are considered to be extremely low income, earning less than 30% of area median income (AMI), • 2,684, or 15%, are considered very low income, earning between 30 and 50% of AMI, • 2,604, or 15%, are considered low income, earning between 50 and 80% of AMI, and • 1,773, or 10%, are considered moderate income, earning between 80 and 90% of AMI 8 Ibid. 9 US Census Bureau, 2000; US Census Bureau, 2010 10 US Census Bureau; American Community Survey, 2008-2012 4 A comparison of income distribution in the City and County is presented graphically in Figure 1.3. As shown, Edmonds has a higher percentage of very low income households and households earning higher than middle income than the County as a whole, but lower percentages of every other income group. The combined percentage of extremely low, very low, and low income households is approximately 46%, compared to about 21 % moderate and middle income and 33% above middle income. Note that these percentages are not adjusted for household size due to data constraints. Here, a household consisting of two adults with an income level equal to another household consisting of two adults and three children would both be placed at the same percentage of AMI, even though the larger family would likely be more constrained financially. HUD's AMI calculations include ranges for households sized 1-8 people, and, in this report, sensitivity for household size is used wherever possible, as detailed in Appendix E. Maps 1.8 and 1.9 show the percentages of renter and owner households in each census tract that are cost burdened, meaning that they spend more than 30% of their income on housing. Overall, 38% of households in Edmonds are cost burdened, renters and owners combined. Table 1.1 shows the percentage of each income group that is cost burdened in Edmonds and Snohomish County by Figure 1.3. Household Share by Income Level, City of Edmonds and Snohomish County 40% 35% 30% 25% 20% 15% 10% 5% 0% Extremely Very Low Low Moderate Middle Above Low Middle ■ Edmonds ■ Snohomish County Source: US Census Bureau, American Community Survey, 2008-2012 housing tenure. According to this data, the City's renters are all less likely to be cost burdened compared to renters Countywide, except low income renters. While owners earning less than 50% AMI in the City are more likely to be cost burdened, this relationship reverses above that income level. For both renters and owners, there is a significant drop in cost burden above 50% AMI. This table does not address differences in degrees of cost burden — for example, a household that spends 31 % of its income on housing would be considered cost burdened along with a household that spends 80% of its income on housing." Table 1.1. Cost Burden by Income and Housing Tenure, City of Edmonds & Snohomish County Renters owners All Income Snohomish Snohomish Snohomish Level Edmonds Edmonds Edmonds County County County Extremely 79% 80% 82% 73% 82% 78% Low Very Low 81% 85% 86% 80% 63% 64% Low 29% 28% 46% 72% 47% 65% Moderate 13% 18% 43% 48% 38% 40% 11 Ibid �i Middle 7% 1 5% 1 26% 1 32% 22% 25% Source: US Census Bureau; American Community Survey, 2008 - 2012 HUD's Location Affordability Index uses a number of variables to estimate the affordability of a location including both housing and transportation costs. According to the index, a "regional typical household '2"could expect to spend 49% of its income on housing and transportation if renting or owning in Edmonds. 45% is proposed as a targeted maximum percentage of income to be spent on housing and transportation combined to be affordable according to HUD standards. A low income household,13 however, could expend to spend 71 % of their income on housing and transportation. A regional moderate family may have to devote up to 57% of their income on housing and transportation.14 Housing and transportation affordability estimates for a number of different household types are presented in Figure 1.4. In general, estimates for Edmonds residents are very close to those for the Figure 1.4. Estimated Housing & Transportation Costs as a Share of Income, City of Edmonds & Snohomish County 120% 100% 80% 60% 40% 20% 0% All Households I Renters i Owners Source: US Dept. of Housing & Urban Development, • Location Affordability Portal, 2013 Median Income HH Moderate Income HH ■ Very Low Income HH ■ Median Income Individual County overall. In either case, it is estimated that owners will generally spend more on housing and transportation than renters, regardless of jurisdiction or household type. The 2012 unemployment rate was 4.2% in Edmonds, compared to 5.9% for the County. For employed Edmonds residents, the mean commute time is 27 minutes, compared with 29 for the County. 71 % of City residents drive to work alone compared with 74% of all County workers. The most common occupations for Edmonds residents are in management, business, science and arts occupations, at 12 Defined as a household with average household size, median income, and average number of commuters in Seattle -Bellevue HUD HMFA 13 Defined as a household with 3 individuals, one commuter, and income equal to 50% AMI 14 US Department of Housing & Urban Development; Location Affordability Portal, 2013 M 49% of the employed population, followed by sales and office occupations, with 25% of the employed population. The two most dominant industry groups employing City residents are educational services, healthcare and assistance industries with 23% of workers, and the professional, scientific, management, administrative and waste industries, with 13% of workers.15 According to the Puget Sound Regional Council, Edmonds is home to 12,449 jobs. The majority of these jobs are in the services sector, with 8,540jobs. 4,918 of those jobs are in healthcare and social assistance and 1,369 jobs are in the accommodation and food service fields.16 Edmonds has 0.7 jobs for every occupied home compared to 1.2 employed people per home. Even assuming all of these people only have one job and only local people are employed locally, this means that a significant portion of the population must commute to work. In actuality, 80% of employed Edmonds residents work outside the City. More than half of these commuters work outside Snohomish County, most likely in King County. Across Snohomish County, there are only .9jobs per occupied home compared to 1.3 employed people per home." The shape of the City's population pyramid, shown in Figure 1.5, offers additional insight into its housing needs and how they may be changing. As shown, between 2000 and 2010 the population of older residents grew and the population of younger residents shrank. As the baby boomer generation continues to retire, every community will see an increase in the share of elderly people, but in Edmonds the effects may be particularly strong - the City's 2012 median age was 46, compared to Figure 1.5. Population Pyramid, 2000-2010, City of Edmonds 90 + 85-89 80-84 75-79 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15 - 19 10 - 14 5-9 0-4 LI'IJ 2,000 1,500 1,000 500 500 1,000 1,500 2,000 2,500 Source: US Census Bureau, 2000; US Census Bureau, 2010 ■ 2010 2000 15 US Census Bureau; American Community Survey, 2008-2012 16 Puget Sound Regional Council; Covered Employment Estimates, 2012 17 US Census; American Community Survey, 2008-2012; Puget Sound Regional Council; Covered Employment Estimates, 2012 7 37 across the County. Out of all age groups, the greatest increases from 2000-2010 was in residents between the ages of 55 and 65, while the greatest decrease was in residents between 35 and 40. The number of young children is also decreasing. Household Profiles These are the stories of several actual Edmonds households who receive some kind of housing assistance from the Housing Authority of Snohomish County. All names and many nonessential details have been changed to respect their privacy. Beth Beth lives in a two bedroom apartment in Edmonds with her two children. She works full time at a grocery store and makes a total annual income of $21,079, or about $1,757 per month. This translates to an hourly wage just under $11 per hour. With Assistance With her voucher administered through the Housing Authority of Snohomish County (HASCO), Beth pays $462 in rent and $163 in utilities for her two bedroom apartment. After rent and utilities are paid, Beth has $1,132 left over per month to support her family. Without Assistance Without a voucher, Beth's monthly rent obligation would be $1,088, including utilities, more than 60% of her total monthly income. The average rent for a two bedroom unit in Edmonds is $1,066, so finding a significantly more affordable unit could be challenging. Beth could look for a shared living arrangement as a cheaper alternative, however, it would be difficult to find a living situation that would accommodate her and her children. Having two children, downsizing from a two bedroom unit is not a feasible option either. In order to afford her current apartment, Beth would need to find a job that pays more than double her current income —about $43,520 a year, or $21 per hour. Jamie Jamie is an elderly disabled woman living in a one bedroom apartment in Edmonds. Jamie's sole source of income is Social Security payments that provide $8,672 a year, or about $723 a month. With Assistance Jamie receives a voucher through HASCO for $550 toward her monthly rent. The market rent for her one bedroom apartment is $705 per month plus $62 in utilities. After her voucher is applied to her rent, Jamie pays $155 plus $62 in utilities per month. This leaves Jamie with $506 per month to support herself. Without Assistance The market rent for Jamie's home is $767 including utilities, more than her monthly income. If Jamie had to look for an apartment she could afford without a voucher, the most affordable studio apartment she could expect to find would rent for around $550, including utilities, which would still be 76% of her income. Without the means to acquire a job or family or friends who could help, Jamie would have few options without a housing voucher. Dave 8 Dave and his wife live in a two bedroom apartment in Edmonds. Dave works in a local warehouse and his wife receives income from Social Security payments due to a disability. Together, they receive employment and Social Security income totaling $18,044 per year, or $1,504 per month. With Assistance With his voucher, Dave and his wife pay $581 in rent plus $193 in utilities per month. This leaves Dave and his wife with $730 left over for the month. Without Assistance If Dave did not receive a Section 8 Voucher, he would have to pay $1,068 per month for rent and utiIities.This would leave the couple with only $436 per month to spend on food and other essentials. At this rate, Dave would be spending about 70% of his family's income on rent alone. The average rent for a two bedroom unit in Edmonds is $1,097, so finding a market rate apartment of the same size but at a cheaper price than his current apartment could be challenging. At the time of this report, two bedroom apartments for rent in the area range from $777 to $1,916 per month. If Dave were able to rent the cheapest two bedroom apartment in Edmonds, without a voucher he and his wife would still be paying 52% of their monthly income on rent, making them significantly cost burdened. As the most they could afford with their current income would be $450, there are not even any studio units that would be affordable. n Existing Housing Stock The City of Edmonds is located in southwest Snohomish County, bounded to the west by the Puget Sound, east by the cities of Mountlake Terrace and Lynnwood, south by King County, and north by Mukilteo. Edmonds' primary commercial centers are the Highway 99 corridor and the Downtown/Waterfront area.The southern portion of the Waterfront area houses a concentration of businesses as well as the Port of Edmonds, where the Washington State Ferry provides service to the Kitsap Peninsula. The City's neighborhoods are mostly composed of single family homes, which make up 66% of the total housing stock. Multifamily residential developments are located just south and north of the downtown area. As shown in Figure 2.1, the City has a high concentration of homes constructed between 1950 and 1969 compared to the County, and fewer constructed after 1990.11 The number of units projected to accommodate population growth over the next 20 years isjust overthe City's current capacity.The majority of this potential will be in multifamily properties, and nearly half of all potential is in redevelopable parcels.19 Figure 2.2 shows the distribution of renters and owners among different types of housing, with owners in the inner ring and renters in the outer ring. As shown, 85% of homeowners live in single family homes. While 24% of renters also live in single family homes, the next largest group of renters, 22% of the total, live in properties with 20 to 49 units 20 Figures 2.3 and 2.4 provide information on newly permitted units in the City in recent years. Figure 2.3 shows the total number of net newly permitted residential units per year from 2001 to 2012 for both the City and County, with the City on the left axis and the County on the right. Figure 2.4 shows the share of the City's new units composed of single- and multifamily units. Figure 2.1. Age Distribution of Housing Stock, Figure 2.2. Units in Structure by City of Edmonds & Snohomish County Housing Tenure, City of Edmonds 50% 40% 30% 20% 100/ 0% • , Before 1949 1950-1969 1970-1989 1990 or Later ■ Edmonds ■ Snohomish County ■ 1 ■ 2 ■3or4 ■5to9 ■ 10 to 19 ■ 20 to 49 Source: US Census Bureau, American Community Survey Source: US Census Bureau, American 2008-2012 Community Survey 2008-2012 18 US Census Bureau; American Community Survey, 2008-2012 19 Snohomish County Tomorrow Planning Advisory Committee,"Housing Characteristics and Needs in Snohomish County", 2014 20 US Census Bureau; American Community Survey, 2008-2012 10 Figure 2.3. Net Newly -Permitted Units, City of Figure 2.4. Newly Permitted Units by Type, City Edmonds & Snohomish County of Edmonds 250 200 150 100 50 Edmonds Snohomish County 7,000 250 6,000 200 5,000 150 4,000 3,000 100 2,000 50 1,000 0 0 -50 Single Family Multi -family Source: Puget Sound Regional Council Source: Puget Sound Regional Council, 2012 As shown, newly permitted units peaked in 2004 in the City, just before the County did, and crashed during the recession. While newly -permitted units began to recover across the County in 2010, as of 2012 Edmonds had not yet begun to recover at the same pace. As shown in Figure 2.4, newly permitted units in Edmonds since 2001 have primarily consisted of multifamily units.21 For the purposes of this report, Edmonds'housing stock is divided into subsidized rental units, workforce rental units, market rate rental units (both single- and multi -family), and home ownership. Subsidized rental units are targeted toward households with the lowest incomes, typically less than 30% AMI. Populations targeted for subsidized rental units often include the disabled, elderly, and other populations living on fixed incomes with special needs. A subsidized property is one that receives funding, perhaps rental assistance or an operating subsidy, to insure that its residents pay rents that are affordable for their income level. Some properties only apply their subsidy to select units. It is also common for subsidized units to be restricted to certain groups like families, the elderly, or homeless. A subsidized property may have also benefited from workforce -type housing subsidies, and it is also common for just a portion of a property's units to receive an ongoing subsidy. Workforce rental units are targeted to working households that still cannot afford market rents. Workforce rental units and subsidized rental units are both considered "assisted', but differ in several areas.The key difference between subsidized and workforce units is that workforce units have a subsidy "built in"through the use of special financing methods and othertools, allowing (and typically requiring) the landlord to charge less for rent. An example of this would be when a private investor benefits from low income housing tax credits when building a new residential development. In exchange for the tax credit savings, the property owner would have to restrict a certain number of units to a certain income level for a certain period of time. When the owner is a for -profit entity, this often means that rents on restricted units will become market rate units when the period of restriction has ended. While nonprofit owners may also utilize workforce tools for capital funding, they are more likely to preserve restrictions 21 Puget Sound Regional Council, Residential Building Permit Summaries 2012 11 on units longer than required. The distribution of Edmonds'assisted units by income level served, both subsidized and workforce, is presented in Table 2.1. Market rate rental units are the stock of all housing units available for rent in the open market. These are units that are privately owned and whose rents are determined by market supply and demand pressures. A market rate rental unit can also be a subsidized rental unit, as is the case with the Federal Section 8 Housing Choice Voucher (HCV) Program. Section 8 vouchers can be used to rent any unit, as detailed below. Table 2.1. Assisted Units by Income Level Served, City of Edmonds Extremely Low 233 Very Low 79 Low 194 Moderate 2 Total 508 Homeownership units include all single family homes for sale Sources: HASCO, 2014, EHA, 2014 — detached and attached single family homes, condominiums, and manufactured homes. Subsidized Housing Units: Permanent and Transitional Edmonds has 303 units of subsidized housing with a range of rental assistance sources including Section 8 Housing Choice Vouchers (HCVs), HUD Supportive Housing Program, Section 8 Project - Based Vouchers, and the Sound Families Initiative. As of July 2014, there were 195 HCVs in use in Edmonds administered by the Housing Authority of Snohomish County (HASCO) and the Everett Housing Authority (EHA).12 All assisted units and buildings are listed in Appendix B.Table 2.2 shows the distribution of permanent subsidized units by funding source. Families making up to 50% of AMI are eligible for Section Table 2.2. Permanent Subsidized Units 8 housing vouchers; however, 75% of these vouchers are by Funding Source, City of Edmonds limited to those making no more than 30% of AMI. Public Housing Authorities (PHAs) receive federal funds from the US Department of Housing and Urban Development (HUD) to administer the HCV program. HUD sets Fair Market Rents (FMRs) annually and PHAs determine their individual payment standards (a percentage of FMR) by unit bedroom size. The tenant identifies a unit, then the PHA inspects the unit to make sure it meets federal Housing Quality Standards Section 8 Housing Choice Voucher 195 Section 8 Project -Based 98 Voucher HUD Supportive Housing 10 Program Sound Families Initiative 12 and determines if the asked rent is reasonable. If the unit Source: HASCO, 2014 is approved, the tenant pays rent equal to 30-40% of their income, and the PHA pays the difference directly to the landlord. While the voucher amount is set up so that a family does not need to spend more than 30% of their income on housing, including an allowance for utilities, a family may choose to spend up to 40% of their income on housing. This happens most often when the family chooses a home that is larger than the size approved for their voucher. The two PHAs that administer the HCV program in Snohomish County are HASCO and the Everett Housing Authority (EHA). Vouchers issued by both PHAs can be used in Edmonds. Because the number of vouchers a PHA can distribute is limited by the amount of federal funding they receive, the wait for a new applicant to receive an HCV can be extremely long and is usually 22 Housing Authority of Snohomish County, 2014; Everett Housing Authority, 2014 12 dependent on existing voucher holders leaving the program. Until recently, the wait to receive an HCV from HASCO had been about 6 years. Federal funding for the HCV program was frozen during the 2013 budget sequester, at which time HASCO had to close its waitlist. Workforce Housing Edmonds is home to 201 units of workforce housing distributed across 3 properties, all listed in Appendix B. Assisted workforce housing units are defined by the fact that they received some form of one-time subsidy in exchange for rent restrictions. Workforce funding types do not involve ongoing rental assistance, and rents are not tailored to individual household incomes. These subsidies can include: Capital Financing - Low -interest -rate mortgages, mortgage insurance, tax-exempt bond financing, loan guarantees, and pre -development cost reduction financing. Table 2.3. Workforce Units by Funding Source, City of Edmonds Tax Credit 92 Bond 200 Housing Trust Fund 1 Low -Income Housing Tax Credits (LIHTC) —Tax credits iState and Co provided to developers that can be sold for the Source: HASCO, 2014 purposes of up front debt reduction. Federal, State, and County Grant Programs — Grants provided to local governments from the federal government for construction or renovation of below -market -rate units. Community Development Block Grants and HOME grants are two popular examples Workforce housing in Edmonds has been funded through a variety of sources, including low-income housing tax credits (LIHTC), tax-exempt bonds, and State and County Housing Trust Fund dollars. While the name may suggest otherwise, it is common for developers to use workforce funding sources to funding housing for populations like seniors. Table 2.3 shows the number of workforce units funded per major source in Edmonds, with full information provided in Appendix B. Table 2.3 only includes units that do not have additional rental assistance (Considered'subsidized' in this report), which often also use workforce subsidies as part of their financing. As most workforce properties use more than one funding source, there are units counted multiple times in the different funding categories listed in Table 2.3. Financing for any affordable housing project is often very complicated and can involve an array of public, nonprofit, and private entities. While not currently the case in Edmonds'workforce properties, many workforce housing properties only dedicate a portion of their units for lower income tenants. This is typical of properties developed or rehabilitated by private entities using tax credits or tax-exempt bond financing in exchange for income restrictions on the properties. In those cases, affordable housing requirements are limited to a certain period of time, typically 20 to 30 years, after which time the property owners can increase rents to market rates. Some properties feature both subsidized and workforce units. Market Rate Rental Units There are an estimated 5,000 rental units in Edmonds of every type, from single family homes to large 13 apartment buildings. According to American Community Survey estimates, 3,739 out of 5,000 renter - occupied housing units are in multifamily properties. This compares to 1,904 multifamily units out of 12,396 owner -occupied homes.23 Table 2.4 summarizes ACS data on the number of units available at certain rent levels by bedroom size in Edmonds. No evidence was found of any market rents below $500, despite ACS data to the contrary.This could be because the ACS Sample may include subsidized units and less formal rent arrangements, such as renting rooms or mother-in-law suites in single family homes or renting from family members that could be more affordable. ACS rent data also does not include utility allowances. Table 2.4. Renter -Occupied Units by Rent and Unit Size, City of Edmonds (Without Utilities) No Bedrooms i Bedroom Units 2 Bedroom Units 3+ Bedroom Less than $zoo 0 18 0 $200 to $299 0 52 10 $300 to $499 0 104 0 27 $500 to $749 101 237 110 $750 to $999 103 786 652 $1,000 or more o 186 1486 Source: US Census Bureau; American Community Survey, 2008-2012 To provide a better idea of what a household looking for a home today could expect to pay in rent and utilities in Edmonds, rent data was obtained from Dupre and Scott. This data, which includes both multifamily and single family rental units, is summarized in Table 2.5 and presented in full in Appendix A. Table 2.5 lists the minimum full time wage to afford each average rent in hourly and annual terms as well as the number of hours one would have to work per week earning Washington State's minimum wage to afford the unit. Table 2.5. Average Rent and Affordability by Size, City of Edmonds (Including Utilities) Average Rent (w/ Utilities) Minimum Income Required Lowest Rent Highest Rent Per Hour Annual Studio $ 833 $ 16.02 $33,320 $ 546 $ 1,187 1 Bedroom $ 887 $ 17.06 $35,480 $ 662 $ 1,521 2 Bedroom $ 1,097 $ 21.10 $43,880 $ 777 $ 1,916 3 Bedroom $ 1,679 $ 32.29 $67,160 $ 1,094 $ 4,215 4 Bedroom $ 2,545 $ 48.94 $101,800 $ 1,947 $ 4,347 5 Bedroom $ 2,844 $ 54.69 $113,760 $ 2,276 $ 3,771 Source: Dupre & Scott 2013, National Low Income Housing Coalition, 2014 Table 2.6, on the following page, shows the affordability distribution of average rents in Edmonds by size. In this table, "Yes" means that the average rent is affordable to a household at that income level, adjusting for household size, "Limited" means that the average rent is not affordable but there are lower end affordable units, and "No" means that the entire rent range is not affordable. As shown, the City's rental housing is generally affordable to households earning at least 80% AMI — the moderate 23 US Census Bureau; American Community Survey, 2008-2012 14 Table 2.6. Distribution of Rent Affordability by Size, City of Edmonds Number of Bedrooms Income Level Studio i z T 1 3 4+ Extremely Low No No No No No Very Low Limited Limited Limited Limited No Low Yes Yes Yes Limited No Moderate Yes Yes Yes Yes Limited Middle Yes Yes Yes Yes Yes Source: Dupre and Scott 2013 income level and above. Average units two bedrooms or less in size are also affordable to low income renters, with a limited supply affordable to very low income renters.There is also a limited supply of three bedroom units affordable to this group. The difference in minimum required income by size between single- and multifamily units is shown in Table 2.7. As shown, multifamily units tend to be more affordable than single family homes. As multifamily units also tend to be smaller than single family homes, there is a lack of larger affordable units. Table 2.7. Average Rents by Size, SIngle- and Multifamily, City of Edmonds Multifamily Ave. Rent 0 Minimum Income Single Family Ave. Rent Minimum Income Studio $833 Low n/a n/a 1 Bedroom $887 Low $1,521 Moderate 2 Bedroom $1,070 Low $1,548 Moderate 3 Bedroom $1,336 Low $1,992 Moderate 4 Bedroom n/a n/a $2,545 Middle 5 Bedroom n/a n/a $2,844 Middle Source: Dupre and Scott, 2013 Even after accounting for the fact that utility allowances are not included in ACS data, the range of rents available in the conventional market is generally higher than that reported in the ACS. Again, this could be explained by the ACS sample including subsidized units and informal rent arrangements. While ACS data is important as it shows what Edmonds renters are actually paying, it does not give an accurate indication of what a typical renter searching for a market rate unit can expect to pay. Home Ownership Between 2008 and 2012,61 % of single family homes sold in Edmonds were three bedrooms in size. 24% of homes sold were four bedrooms in size, meaning that three and four bedroom homes together represented 85% of sales. 9% were two bedrooms and 6% were five bedrooms or larger. This includes freestanding single family homes, common wall single family homes (townhouses), manufactured homes, and condominiums24. 24 Snohomish County property use codes 111, 112, 116, 117, 118, 119, 141, 142, 143 15 In 2012, the median sale price for a single family home in Edmonds was $339,975. Assuming a 20% down payment and using average rates of interest, property taxes, utilities and insurance as determined by the Federal Housing Funding Board, the monthly payment for this home would be $1,895. For a family to afford this payment without being cost burdened, they would require an annual income of at least $75,796, which is just above the City's median income.25 Appendix C provides statistics on sales of single family homes from 2008-2012, as well the minimum income necessary to afford the median sale home by year. During that time period, median home sales prices declined by 17%. In 2012 dollars this translates to a difference of more than $33,000 in minimum income required to afford the median home .26The housing market across the region has since begun to recover from the recession. While home sale affordability for 2013 cannot be calculated at this time, Edmonds currently has the County's third highest average assessed residential value. The 2014 average assessed value of $351,100 represented a 10.7% increase over 2013.27 Table 2.8 lists the percentage of 2012 sales of homes of different sizes that are affordable to each income level by home size."Not affordable" means that the minimum income required is higher than the middle income upper cutoff. All of the percentages specify the portion of homes of that size that someone in the particular income group could afford, adjusting for household size as detailed in Appendix E. As shown, there is decreasing affordability as size increases, though moderate and middle income households could theoretically afford the monthly cost of most of the homes sold in 2012. Moderate income is recommended as the minimum ideal household income for home ownership to be a reasonable option. Table 2.8. Affordable Home Sales by Size, City of Edmonds, 2012 Low ery ow ow oderate iddle Not Affordable Total Sales 71-2 12% 17% 57% 73% 85% 15% 60 0% 7% 46% 74% 87% 13% 405 3 0% 4% 21% 54% 78% 22% 165 5+ 0% 3% 23% 49% 69% 31% 35 Source: Snohomish County Assessor, 2014 The"affordability gap" describes situations where there are more households at a given income level than there are housing options affordable to those households. Figure 2.5 displays the percentage of households in Edmonds at each income level compared with the percentage of all home sales in 2012 that each income level could afford. As Figure 2.5 compares the overall income distribution of the City with the affordability distribution of one year, this is a rough approximation, and other factors should be considered in examining home ownership affordability. As shown, there were plenty of sales theoretically affordable for households earning at least 80% AMI in 2012, which is the minimum income required for home ownership. (Moderate income and above) This analysis does not consider 25 Snohomish County Assessor, 2014 26 Ibid 27 Snohomish County Assessor, "Snohomish County Assessor's Annual Report for 2014Taxes , 2014 16 Figure 2.5. Home Sale Affordability Gap, 2012, City of Edmonds 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Extremely Very Low Law Moderate Middle Low ❑ Households ■ Sales Source: US Census Bureau, American Community Survey, 2008-2012, whether or not these income groups are able to access financing, including a down payment, or other barriers to home ownership. There is also sufficient supply for the City's low income households, though home ownership may only be a good choice for certain households in this group. Further, this does not include competition from households above middle income, which comprise 33% of the City's total. Figure 2.6 shows how the percentage of sales affordable to each income level has changed from 2008 to 2012. As shown, affordability improved dramatically for moderate income households during this period, and all other income groups as well. As the housing market continues Figure 2.6. Home Sale Affordability, 2008-2012, City of Edmonds to improve following the recession, affordability for this 100% group may retreat again. While 909% there are affordable options 809% for low income households, 70g° and ownership may be a good 60% ■ 2008 option for certain low income 50% 02009 households (those earning 403% ■ 2010 between 50 and 80% AMI), these 30O° ❑ 2011 households are considered the 2�, exception rather than the rule. 10go ❑ 2012 0% 4- Many of the most affordable Extremely Very Low Low Moderate Middle Low sales were likely only so affordable because they were Source: Snohomish County Assessor, 2014 foreclosed homes sold by banks. 517 Paradise Lane, for example, is a three bedroom home that Wells Fargo Bank sold for $240,000 in 2012. At that price, a household with a minimum income of $46,216 could afford the monthly debt service of around $1,155.This same home sold for $378,000 in 2004, which is well out of reach to the household with the minimum income necessary to afford it in 2012. While low priced foreclosed homes can put home ownership within reach for more households, this is accomplished at the expense of previously displaced homeowners. Additionally, these sales contribute to ongoing uncertainty about market home values. Low income home buyers could also become cost burdened by higher property taxes on these"bargain" homes. Figure 2.7, on the following page, shows how sales have been divided between single family homes, condominiums, and manufactured homes between 2008 and 2012. In Edmonds, condominiums 17 Figure 2.7. Home Sales by Type, 2008-2012, City of Edmonds 1000/0 MENEEMENEV- 9WO 96❑/❑ 94% 9 2❑/❑ 90❑/❑ 88% 2008 2009 2010 2011 2012 ■ Condo ■ Mfg. Home ■ Single Family Source: Snohomish County Assessor, 2014 represent a larger portion of the market than in other cities in Snohomish County. Table 2.9 shows how many sales of each of these three types were affordable to each income level in 2012. Manufactured homes were most likely to be affordable to lower income households, with a dramatically lower median sale price, though there was still a significant number of single family and condominium sales affordable to very low and low income households. The median home sale prices for single family homes and condominiums were also very close to each other in 2012. Table 2.10 shows how many homes were sold in 2012 by type and number of bedrooms. Table 2.9. 2012 Affordable Home Sales by Type, City of Edmonds Single Manufactured Condo Family Home Extremely Low 1 6 0 Very Low 37 0 2 Low 208 0 9 Moderate 171 0 17 Middle 104 0 3 Not 108 0 0 Affordable Median Sale $ 339,975 $8,150 $341,705 Price Source: Snohomish County Assessor, 2014 18 Table 2.10. Size of Homes Sold by Type, 2012, City of Edmonds Bedrooms Single Family Mobile Home Condo Source: Snohomish County Assessor, 2014 Shared Rental Housing A popular market rate affordable housing option is to split housing costs with other roommates. These arrangements include renting a room, suite, or accessory dwelling unit (ADU) from a homeowner living on site. For 8 shared rooms advertised on Craigslist in the City, the monthly cost ranged from $500 to $650, including utilities. While they were more rooms advertised, they did not include an address or cross streets, so it could not be verified that they were actually located within the City. Their rents were generally not outside this range, however. Rents in this range are easily within reach for very low income single individuals, and possibly even extremely low income couples. Individuals seeking roommates are able to discriminate in who they choose to share their housing, however, and often stipulate a preferred gender or bar couples from sharing a room. It may be difficult for families with children and households with disabilities or other special needs to find a suitable shared housing situation. In these cases, a household's ability to find shared housing will likely depend on whether or not they have local connections to help them find understanding roommates. 19 Current Challenges and Opportunities The City of Edmonds is faced with the challenge of accommodating greater growth over the next 20 years than it has seen in the past, requiring an additional 2,790 additional housing units, when the current capacity is only 2,646 additional units. Of the current capacity, the vast majority is in multifamily properties, with a high portion to come through redevelopment.28 In general, the City will see a shift toward more multifamily housing if growth continues as predicted. Edmonds enjoys a higher median income compared to other areas in the County. All the same, assuming that the City's income mix stays constant, it is estimated that 1,257 units, or 55% of the total projected increase, will serve households at or below 50% AMI. The share of projected units by income level is shown in Figure 3.1. According to 2013 Dupre and Scott data, Edmonds'rental housing market is generally affordable to households earning at least 80% AMI. Households earning between 50 and 80% AMI will find the majority of homes smaller than five bedrooms affordable as well.There is a limited supply of small units affordable to those earning between 30 and 50% AMI. Market rents are not affordable to extremely low income households, though this is expected in almost all communities, due to the costs of construction and maintenance in today's market. Cost burden data Figure 3.1. Income allocation of projected new housing units, City of Edmonds 1,535 or 2,000 55% 1,500 1,000 41 % � rr 419 or 15% Projected New Homes Moderate + Above AM I ■ Low AMI ■ Very Low AMI ■ Extremely Low AMI 55%, or 1,257 u nits, at or below 80%AMI supports these conclusions, with a significant reduction in cost burden for both renters and owners at income levels above 50% AMI. Overall, 38% of Edmonds households are cost burdened. Renters and owners earning less than middle income are all less likely to be cost burdened in Edmonds when compared to the County, with the exception of homeowners below 50% AMI who are more likely to be cost burdened.29 In 2012, the median sale price for a single family home in Edmonds was $339,975. The estimated monthly payment for this home would be $1,895, including debt service, insurance, taxes, and utilities. For a family to afford this payment without being cost burdened, they would require an annual income of at least $75,796, which is just 28 Snohomish County Tomorrow Planning Advisory Committee,"Housing Characteristics and Needs in Snohomish County, 2014 29 US Census Bureau; American Community Survey, 2008-2012 m above the City's median income.30 Affordability for 2013 cannot be calculated at this time, but average assessed values suggest that home prices are rising and affordability is retreating. At $351,100, Edmonds has the third highest average assessed 2014 home value in Snohomish County after Woodway and Mukilteo, and it represented a 10.7% increase over 2013.31 The age of units in Edmonds is a possible contributing factor to affordability, as the City features a significant stock of homes constructed between 1950 and 1969. As properties are redeveloped to build the denser housing the City needs to accommodate growth, it is likely that a portion of these naturally affordable older units will be replaced with higher priced new units. While preservation of older housing is an effective strategy for affordability, preservation must be balanced with the need to accommodate growth. In addition, the higher priced new units of today will be the quality affordable older units of tomorrow. Edmonds has one of the highest percentages of elderly residents among all Snohomish County cities. According to the ACS estimates, almost 25% of households in Edmonds have individuals 65 years or older.32 In addition to having generally lower incomes, seniors will require different types of housing and services if they desire to age in place. Additionally, as the "baby boomer" generation continues to move into retirement, there will be an increase in the number of people with disabilities as well. To respond to the continuing need to provide affordable housing for the community, the City has undertaken a series of measures and strategies to promote affordable housing including: • Land Use Strategies: upzoning from single family to multifamily zoning, offering density bonuses for low income and senior housing provision, clustering subdivisions, planned residential developments to protect the environment, encouraging infill developments, and promoting conversion/adaptive reuse programs. • Administrative Procedures: streamlined approval processes, updated use -by -right policies, and updated impact mitigation payment deferral. • Development Standards: installed front and side yard setback requirements, zero lot line development, improved street design and construction, off-street parking requirements, and innovative sanitary, sewer, water and storm water systems. • Low -Cost Housing Types: encourage the use of accessory dwellings, cottage houses, mixed -use developments and mobile/manufactured housing. In addition to promoting, adjusting, and providing incentives for these policies where appropriate, the City should continue to monitor their use and evaluate policies to make sure there are not unnecessary regulatory barriers to affordable housing. Additionally, the City could consider adopting a multifamily tax abatement program for certain locations and, when opportunities arise, the City could partner with nonprofit organizations developing housing for households earning below 30% AMI, the income group generally not served by the traditional housing market. 30 Snohomish County Assessor, 2014 31 Snohomish County Assessor, "Snohomish County Assessor's Annual Report for 2014Taxes , 2014 32 US Census Bureau; American Community Survey, 2008-2012 21 Maps 22 Map 1.1. Total Population (Block Groups) Sources: American Community Survey, 2008-2012; Snohomish County Information Services, 2013 I j I / j I / I I Z �- GJ / < 196thStS J IN 196th St SW 196th St SW i' i i Main Street j > _ 41 Qmi r--------------i - I � cj I I Population (Block Groups) - r: MUGA City Limits j 10s, I 0-464 465 - 958 j 959 - 1284 I 1285-1553 ------v------- 1554-2040 - 0 0.375 0.75 1.5 Miles Map 1.2. Average Family Size (Block Groups) Sources: American Community Survey, 2008-2012; Snohomish County Information Services, 2013 'uget Drive Street Family Size 0.00 0.01 - 2.15 2.16 - 2.95 2.96 - 3.34 3.35 - 4.12 - I-J City Limits MUGA I I S§th St SW i i i i i i Z� I I r--j Lry I I-_ i 196th St SW 0 0.375 0.75 1.5 Miles Map 1.3. Average Household Size (Block Groups) Sources: American Community Survey, 2008-2012; Snohomish County Information Services, 2013 .r- I• I I I I % I i" � I i' 1 I j 96thstSbv 194th St SW 196th St SW / I � I i Main Street i a % i, a L------------ Qm :/ I i I I--- I Household Size 0.00 - 1.70 I d I 1.71 - 2.30 I I._ 2.31 - 2.77 I i 2.78 - 3.42 _ I r City Limits --f-------L --- --- - — - — - — - — - — - — r MUGA — -- 25 i I I I i I I i 0 0.375 0.75 1.5 Miles Map 1.4. Renter -Occupied Housing Units Sources: American Community Survey, 2008-2012; Snohomish County Information Services, 2013 r� Main Street Renter -Occupied Homes (By Block Group) 0% - 7% 8% - 17% 18% - 27% 28%-41% _ 42% - 72% L r• City Limits r MUGA 196t6StSIV 196th St SW 196th St SW 0 0.375 0.75 1.5 Miles Map 1.5. Vacant Housing Units (Block Groups) Sources: American Community Survey, 2008-2012; Snohomish County Information Services, 2013 I I I I I I j I � I I"- 7 i" i I i " 1 i � Z •1 .19 i sthStsW 19�th St SW 196th St SW i i i" Main Street I L" CA " �1 I Vacant Homes j (By Block Group) Fq, 0% - 2% F i 3% - 7% I s 1 8% - 10% I j 11%- 19% 20% - 25% j 1 r ' City Limits I \ r MUGA - ------------------- 0 0.375 0.75 1.5 Miles Map 1.6. Homeowners with Mortgages Sources: American Community Survey, 2008 - 2012; Snohomish County Information Services, 2073 19¢th St SW Mortgaged Homes 0% 1%-64% 65% - 73% 74% - 79% 80% - 95% City Limits -_t MUGA 196th St SW 0 0.375 0.75 1.5 Miles Map 1.7. Very Low -Income Households Sources: American Community Survey, 2008 - 2012; Snohomish County Information Services, 2013 Households <50%AMI 0% - 12% 13% - 20% 21%-33% 34% - 46% 47% - 68% City Limits MUGA 196th St SW 196th St SW r-- i i main greet � v Q I I I I d I I I � 0.375 0.75 1.5 Miles Map 1.8. Cost -Burdened Renters Sources: American Community Survey, 2008 - 2012; Snohomish County Information Services, 2073 P Cost -Burdened Renters 0% 1%- 35% 36% - 52% 53% - 78% _ 79% - 100% r_r City Limits r MUGA I I j I j / I -----------/ I I I �1 I 1721Pth St SW 196th St SW 4 I I I I Q�/ 0 0.375 0.75 1.5 Miles Map 1.9. Cost -Burdened Owners Sources: American Community Survey, 2008 - 2012; Snohomish County Information Services, 2013 I-- � i z 1 / > I i 796th S i tsIV IP-6th St SW 196th St SW i Main Street I L� Q I I Cost -Burdened I i Owners — -I — - — 'co I-Q 0% - 10% 11%-28% 29% - 36% I I 37% - 48% j 1 49% - 65% -r_!- City Limits — �.�_------------- MUGA 31 0 0.375 0.75 1.5 Miles Map 1.10. Housing & Transportation, Percent of Low HH Income Sources: US Housing & Urban Development, 2073; Snohomish County Information Services, 2072 Percent of Income 51% - 58% 59% - 65% 66% - 73% 74% -81% 82% - 100% City Limits MUGA 0 0.375 0.75 1.5 Miles I � I I j I j I ' I I i i I 196th St SW 196th St SW r-' 1 I Map 2.1. Voucher Location and Transit Access Sources: HASCO 2014; Snohomish County Community Transit, 2014; Snohomish County Information Services, 2013 nge I k) • • 0 0.375 0.75 1.5 Miles Map 2.2. Age of Housing Stock Sources: Snohomish County Assessor, 2012, Snohomish County Information Services, 2012 n 196th St SW Year Built 1872 - 1904 1905 - 1918 1919-1934 1935 - 1948 1949 - 1957 1958 - 1964 1965 - 1972 1973 - 1983 1984 - 1997 1998 - 2013 i;r City Limits MUGA 0 0.375 0.75 1.5 Miles Map 2.3. Condition of Housing Stock Sources: Snohomish County Assessor, 2014, Snohomish County Information Services, 2013 _..LLM I 11L� \� A/ ti IN, .. IN IN- i IN IN .. �• ,". .I - - , t .A IN : %41Nt I -ti • ► .. -s % eira r ' j' _+e E 196jth St SW 196th St SW A IN NN '.v - -tip ■ �.,�� - �• -� �ti_r I'�.I•I .�` :4 I ----- ' �- • ilk ' r.ILIj Condition (For Age) ' "• -� _ Excellent IN - '• " - � 1 _ Very Good,' - IN —'� ■ I � _ xc. �� r--r Above Normal r �� :P L Normal V- _ r' `� o 4 ' Below Normal �' I' d or Poor Ir _ Very Poor � �., •u •' �'� �Jr City Limits j _ _ _ , r MUGA . ----3---1---i - 0 0.375 0.75 1.5 Miles 35 Map 2.4. Housing Density Sources: American Community Survey, 2008 - 2012; Snohomish County Information Services, 2073 Areet Housing Units/Acre (By Block Group) 0.0 - 1.4 1.5 - 3.0 3.1 - 4.3 4.4 - 6.6 6.7 - 11.7 r City Limits -_f r MUGA -_f — i Cn I I I I I I I I I 196th St SW I l �l I 196th St SW r-- i 196th St SW 0 0.375 0.75 1.5 Miles Map 2.7. New Single Family Permits by Census Tract, 2011 Sources: Snohomish County Information Services, 2012; PSRC, 2011 o, Street I96tb St SW I I 19�th St SW I I I I I / si Qm/ 196th St SW 0 0.375 0.75 1.5 Miles Map 2.8. New Multifamily Permits by Census Tract, 2011 Sources: Snohomish County Information Services, 2012; PSRC, 2011 I j I j I I � I IN L---------- 7 % I � I --i i % s Ih StS r W 196th St SW g6 196th St SW / I i Main Street I / L_ r; ----------------� v i o� I I Net Newly- j I Permitted Units by--� j F �- Tract -4 q� / d -3-0 I j I � 2-8 J City Limits MUGA 0 0.375 0.75 1.5 Miles Map 2.9. Average Renter Household Size Sources: American Community Survey, 2008 - 2012, Snohomish County Information Services, 2013 I I I I I I j I i----------� i� � I / � I � % � Z •1 i' Q Igs r hstsW 19th St SW 196th St SW � I � I i Main Street I L• i a' 3A.i' I Cn mac, k I Average H H Size - I Renters -- O 0.00 - 1.65 I r I a j 1.66 - 2.18 f 2.19 - 2.68 I I 2.69 - 3.73 3.74 - 7.42 I 1 r City Limits I \ _-_ --' r M__—_ UGA 39 0 0.375 0.75 1.5 Miles Appendices 40 Appendix A: Multifamily Rent Comparables by Property, City of Edmonds Units in Minimum Units in Minimum Units in Minimum Units in Minimum Units in Minimum Units in Minimum Units in Minimum Units in Minimum Aqe Studio Rent Utilities Total _ Aqe 1Bd-Rent Utilities Total _ Aqe 2/1-Rent Utilities Total _ Aqe 2/2-Rent Utilities Total _ Aqe 3/1-Rent Utilities Total _ _ .. Aqe 3/2-Rent Utilities Total _ _ _ Aqe 4Be -Rent Utilities Total qe 6 - ent Utilities Total 4:20+ 2010 $1,035 $ 152 $1,187 Low 420+ 1975 $682 $ 152 $834 Low 4:20+ 1975 $690 $ 152 $842 Low 4:20+ 1975 $685 $ 152 $837 Low 420+ 1965 5425 S 152 5577 Very Low 4:20+ 1985 $793 $ 152 $945 Low 3:4-19 1975 S850 S 46 S896 Low Iim 19fi5 $fi89 $ 965 $850 $ 1965 $785 S 1945 $810 $ 1965 5775 $ 1945 :650 $ 945 619 $ 1965 $670 $ 1985 5800 $ 1985 5725 $ 975 $760 $ 2010 $1,207 $ 1985 $710 $ 985 $825 S 1975 5744 $ 965 $695 $ 975 $78fi $ 975 $700 $ 1975715 $ 19755 $705 $ 1975 5735 $ 965 $710 $ 1985 $860 $ 1900 $1,350 $ 1975 $755 $ 945 $750 $ 1965 $710 $ 1945 $800 $ 1945 $631 $ $860 Low 5912 Low $956 Low $981 Low S837 Low $712 Very Low $681 Very Low $732 Very Low $971 Low $787 Very Low $931 Low $1,378 Moderate 5881 Low $887 Low $915 Low $757 Very Low 5957 Low $871 Low $886 Low $876 ow $797 Very Low $881 Low $1,031 Low $1,521 Moderate $817 Very Low 5812 Very Low $772 Very Low $862 Low S693 Very Low 4:20+ 196S $770 420+ 1965 $950 4:20+ 196 $1,050 4:20+ 1945 $795 420+ 1945 5725 4:20+ 1945 $845 3:4-19 1975 $810 4:20+ 1985 $955 3:419 1975 $925 4:20+ 1975 $820 420+ 2010 $1,325 4:20+ 1985 $770 420+ 1975 $932 4:20+ 1975 $891 4.20+ 1975 $750 420+ 1975 5795 4:20+ 1975 $885 420+ 1965 $795 4:20+ 1985 $957 1:SF 1945 $1,150 3:4-19 1945 $850 3:419 1965 $840 3:4-19 1945 $985 3:4-19 1945 $900 3:419 1945 $839 2:2-3 1945 5925 191 $961 Very Low 4:20+ 196S $870 $191 $1,061 Low 4:20+ 196S $985 77 $1,027 Low 420+ 1965 5875 $77 $952 Very Low 420+ 1965 51,050 191 $1,241 Low 3:4-19 1985 $1,015 $77 $1,092 Low 4:20+ 1945 $1,000 191 $98fi Very Low 4:20+ 19fi5 $925 $77 $1,002 Low 4:20+ 1975 $976 77 $802 Very Low 4:20+ 1965 $1,025 $191 $1,216 Low 420+ 1965 $875 77 $922 Very Low 4:20+ 2010 $1,431 $191 $1,622 Moderate 1:SF 1945 $1,400 77 $887 Very Low 3:4-19 196 $895 $77 $972 Very Low 1:SF 1945 $1,895 191 $1,146 Low 420+ 1985 $1,050 $191 $1,241 Low 1:SF 1945 $1,595 77 $1,002 Low 420+ 1985 5925 577 $1,002 Low 1:SF 1945 51,650 191 $1,011 Low 4:20+ 1985 5875 577 $952 Very Low 1:SF 1965 $1,375 191 $1,516 Moderate 420+ 1975 $950 $77 $1,027 Low 1:SF 1945 $1,250 191 $961 Very Low 420+ 1965 $880 $77 $957 Very Low 1:SF 1945 $1,395 191 $1,123 Low 4:20+ 1975 5992 $191 $1,183 Low 1:SF 1945 $1,250 191 $1,082 Low 4:20+ 1975 $975 $191 $1,166 Low 3:4-19 1945 $1,400 191 5941 Very Low 4:20+ 1975 $840 $191 $1,031 Low 3:4-19 1945 $1,100 191 $986 Very Low 4:20+ 1975 $850 $77 $927 Very Low 77 $962 Very Low 4:20+ 19. $1,028 $191 51,219 Low 191 $986 Very Low 1:SF 1945 $1,725 $191 $1,916 Middle 191 $1,148 Low 3:419 1975 $700 $77 $777 Very Low 191 $1,341 Low 1:SF 1900 $1,195 $191 $1,386 Low 77 $927 Very Low 3:4-19 1975 $850 $77 $927 Very Low 77 $917 Very Low 2:2-3 1965 51,475 $77 51,552 Moderate 77 $1,062 Low 2:2-3 1945 $1,495 $191 $1,686 Moderate 77 5977 Very Low 2:2-3 1945 $1,200 5191 $1,391 Low 77 $916 Very Low 77 St.002 Low 220 $1,205 Low 94 $1,144 Low 94 51,094 Very Low 220 $1,196 Low 220 $1,095 Very Low 220 $1,620 Low 220 52,115 Moderate 220 $1,815 Moderate 220 $1,870 Moderate 220 $1,595 Low 220 $1,470 Low 220 $1,615 Low 220 S1A 0 Low 94 51,494 Low 94 S1,194 Low 4:20+ 19fi5 $1,06fi $ 220 $1,286 Low 420+ 1965 $1,050 $ 94 $1,144 Low 4:20+ 1985 $1,200 $ 220 51,420 Low 3:4-19 1985 $1,100 $ 94 $1,194 Low 4:20+ 1965 $910 5 220 $1,130 Very Low 4:20+ 1985 $1,293 $ 220 51,513 Low 1:SF 1945 $2,200 $ 220 $2,420 Middle 1:SF 1965 $1,695 5 220 51,915 Moderate 1:SF 1965 $1,800 5 220 52,020 Moderate 1:SF 1945 $3,995 $ 220 $4,215 Not Affordable 1:SF 1945 $1,495 $ 220 $1,715 Moderate 1:5F 1945 $1,395 $ 2' 51,615 Low 1:SF 1945 51,595 $ 220 51,815 Moderate 1:5F 1945 52,400 $ 220 $2,620 Middle 1:5F 1945 $1,395 $ 220 $1,615 Low 3:4-19 1975 51,000 $ 94 $1,094 Very Low 3:4-19 1975 $2, 195 5 94 $2,289 Middle 3:419 1965 51,200 $ 94 51,294 Low 2.2-3 2000 $1,425 $ 220 $1,645 Low 2:2-3 2000 $1,425 $ 220 $1,645 Low 2:2-3 1945 $1,295 $ 94 $1,389 Low 1:SF 2000 $2,250 5 220 $2,470 Middle 1:SF 1975 $1,675 $ 220 51,895 Moderate 1:SF 1975 $1,975 $ 220 $2, 195 Middle 1:SF 1975 $1,995 $ 220 $2,215 Middle 1:SF 1985 $1,400 5 220 $1,620 Low 1:SF 1945 $2,200 $ 247 $2,447 Middle 1:SF 1965 $1,700 $ 247 $1,947 Moderate 1:SF 2000 $2,100 $ 247 $2,347 Moderate 1:SF 1975 $1,995 $ 247 $2,242 Moderate 1:SF 1975 $2,295 $ 247 $2,542 Middle 1:SF 1975 $2,000 $ 247 $2,247 Moderate 1:SF 1990 $1,895 5 247 $2,142 Moderate 1:SF 2000 $4,100 $ 247 $4,347 Not Affordable 1:SF 1945 $2,000 $ 276 $2,276 Moderate 1:SF 2000 53,-5 5 276 $3,771 Not Affordable 1:5F 1975 $2,395 $ 276 $Z671 Middle Al Appendix B: Assisted Units by Property, City of Edmonds PROPERTY NAME ADDRESS EutLeoWely Very Low Low Moderate SUBSIDIZED UNITS WORKFORCE UNITS POPULATION 5ER RIDING SOURCFJ =5TREET Section 8 Housing Choice Various Various 122 33 21 2 178 Public (HASCO) Vaious HUD Section 8 Housing Choice Vouchers Vouchers (HASCO) Section 8 Housing Choice Various Various 14 2 1 17 Public (EHA) Various HUD Section 8 Housing Choice Vouchers Vouchers (EHA) Aurora House 20903 70th Ave W 27042000302700 16 16 Public (HASCO) Mentally III Bond Ballinger Court Apts. 22707 76th Ave. W 27042900308400 28 64 92 Private Nonprofit (SHAG) Seniors Tax Credit, Bond Edmonds Highlands 23326 Edmonds Way 00555300100300 108 12 108 Public (HASCO) Family Section 8 Project -Based Vouchers, Bond, Sound Families McKinney House 19515 73rd Ave W 27041700303300 5 5 Private Nonprofit (Compass Mentally III HUD Supportive Housing Program Health) Section 8 Project -Based Voucher, Tax Credit, Olympic View Apartments 303 Howell Way 27032600100300 43 43 Public (HASCO) Seniors Bond, County Housing Trust Fund, State Housing Trust Fund Section 8 Project -Based Voucher, Tax Credit, Sound View Apartments 417Third Ave S 27032600100500 43 43 Public (HASCO) Seniors Bond, County Housing Trust Fund, State Housing Trust Fund Tri-level House 8629196th St SW 27041800309900 5 5 Private Nonprofit (Compass Mentally III HUD Supportive Housing Program Health) Zeigen House 20208 73rd Ave W 00400600001400 1 1 Private Nonprofit (Compass Mentally III State Housing Trust Fund, County Housing Trust Health) I Fund B1 Appendix C: Single Family Home Sales, 2008-2012 2008 2009 2010 2011 2012 Number of Sales 416 517 577 586 666 Average Sale Price $ 465,736 $ 409,870 $ 404,634 $ 359,465 $ 383,157 Median Sale Price $ 411,000 $ 355,000 $ 346,500 $ 315,000 $ 339,975 Median Sale Price Home Affordability 2008 2009 2010 2011 2012 Mortgage Amount $ 328,800 $ 284,000 $ 277,200 $ 252,000 $ 271,980 Interest Rate 6.09% 5.06% 4.83% 4.58% 3.66% Monthly PITI Principal + Interest $ 1,990 $ 1,535 $ 1,459 $ 1,289 $ 1,246 Property Taxes $ 343 $ 296 $ 289 $ 263 $ 283 Insurance $ 130 $ 112 $ 110 $ 100 $ 108 Utilities $ 269 $ 269 $ 276 $ 281 $ 258 TOTAL $ 2,463 $ 1,943 $ 1,858 $ 1,651 $ 1,637 Minimum Annual Income $ 98,522 $ 77,730 $ 74,315 $ 66,044 $ 65,468 in 2012 Dollars $ 105,061 $ 83,186 $ 78,247 $ 67,411 First Quartile Sale Price Home Affordability 2008 2009 2010 2011 2012 Mortgage Amount $ 264,000 $ 240,000 $ 218,305 $ 192,000 $ 200,000 Interest Rate 6.09% 5.06% 4.83% 4.58% 3.66% Monthly PITI Principal + Interest $ 1,598 $ 1,297 $ 1,149 $ 982 $ 916 Property Taxes $ 275 $ 250 $ 227 $ 200 $ 208 Insurance $ 105 $ 95 $ 86 $ 76 $ 79 Utilities $ 269 $ 269 $ 276 $ 281 $ 258 TOTAL $ 2,247 $ 1,911 $ 1,739 $ 1,539 $ 1,462 Minimum Annual Income $ 89,867 $ 76,444 $ 69,566 $ 61,557 $ 58,470 in 2012 Dollars $ 95,832 $ 81,810 $ 73,247 $ 62,831 C1 Appendix D: Affordable Housing Glossary Affordable Housing: For housing to be considered affordable, a household should not pay more than 30 percent of its annual income on housing.This includes all costs related to housing - rent, mortgage payments, utilities, etc. AMI: Area Median Income. The measure of median income used in this report is that of the Seattle -Bellevue HMFA.This measure is used in administering the Section 8 voucher program in Snohomish County. Cost -Burdened: Households that spend more than 30 percent of their income on housing. Extremely Low Income: Households that make up to 30 percent of AMI. Fair Market Rent: HUD determines what a reasonable rent level should be for a geographic area, and sets this as the area's fair market rent. Section 8 voucher holders are limited to selecting units that do not rent for more than fair market rent. HMFA: HUD Metro FMR Area Low Income: Households that make up to 80 percent of AMI. Median Income: The median income for a community is the annual income at which half the households earn less and half earn more. Middle Income: Households that make up to 120 percent of AMI. Moderate Income: Households that make up to 95 percent of AMI. PHA: Public Housing Agency Section 8: HUD's Section 8 Housing Choice voucher program. Qualifying households can take their voucher to any housing unit which meets HUD safety and market rent standards. HUD funds are administered by PHAs. Severely Cost -Burdened: Households that spend more than 50 percent of their income on housing. Subsidized Rental Unit: A unit which benefits from a direct, monthly rent subsidy.This subsidy will vary to ensure that a household does not spend more than 30% of their income on housing. Section 8 Housing Choice Vouchers are an example of a direct rent subsidy. Very Low Income: Households that make up to 50 percent of AMI. Workforce Rental Housing: Workforce rental units have rents which are set in order to be affordable to households at certain income levels. While a household may need to have income below a certain level to apply for a workforce rental unit, the rent level does not adjust to their actual income. A property may feature units with rents affordable to households with 50% AMI, D1 but a household earning 30% AMI would still have to pay the same rent F07, Appendix E: Methodology Affordability - Adjustment for Household Size Where it is indicated that housing cost affordability is assessed adjusting for household size, several factors are considered. First, using HUD standards, the appropriate size range that could inhabit the housing unit in question is determined. For example, the appropriate range for a 2 bedroom unit would be 2-4 people. Next, the cutoff income levels are averaged across the household size range, and this average is used for comparison. To assess whether or not a 2 bedroom unit is affordable to extremely low income households using this method, one would first average the extremely low cutoff levels for 2-, 3-, and 4-person households. For 2012, these levels were $21,150, $23,800, and $26,400.Their average is $23,783. A household with this income can afford to spend no more than $595 per month on housing. If the unit in question rents for less than this amount, then one can say that, on average, it is affordable to extremely low income households, adjusting for household size. Table E.1, below, shows the maximum a household at each income level can afford to spend on housing per month by household size. Table E.1. Maximum Monthly Housing Expense by Household Size, Seattle -Bellevue HMFA 2012 HMFA Overall Extremely Low $455 $520 $585 s650 $703 $755 s8o6 $859 $650 Very Low $759 s868 $976 si,o84 $1,171 $1,258 $1,345 $1,431 si,o84 Low $1,128 $1,289 $1,450 s1,610 $1,740 s1,869 s1,998 $2,126 $1,734 Moderate $1,442 s1,648 s1,855 $2,059 $2,225 $2,389 $2,556 $2,719 $2,059 Moddle $i,821 $2,082 $2,343 $2,601 $2,811 $3,018 $3,228 $3,435 $2,601 Source: US Department of Housing & Urban Development, 2012 Home ownership affordability Home ownership affordability was calculated using similar techniques to the California Association of Realtor's Housing Affordability Index. First, property sale data was acquired from the Snohomish County Assessor, and single family home sales in Everett were separated. Next, the monthly payment for these homes was calculated using several assumptions: • Assuming a 20% down payment, the loan amount is then 80% of the total sale price • Mortgage term is 30 years • Interest rate is the national average effective composite rate for previously occupied homes as reported by the Federal Housing Finance Board • Monthly property taxes are assumed to be 1 % of the sale price divided by 12 • Monthly insurance payments are assumed to be 0.38% of the sale price divided by 12 Using all of these ass umptions,the monthlypayment isthe sum of principal and interest; taxes; and insurance. Household Income Levels Area Median Income, or AMI, is an important part of many housing affordability calculations. In Snohomish County, HUD uses the Seattle -Bellevue HMFA median income as AMI. This is recalculated every year, both as an overall average and by household size up to 8 individuals. Standard income levels are as follows: • Extremely low income: <30% AMI • Very low income: between 30 and 50% AMI • Low income: between 50 and 80% AMI • Moderate income: between 80 and 95% AMI • Middle income: between 95 and 120% AMI Household Profiles Information on households was gathered from Section 8 Housing Choice Voucher data from both the Housing Authority of Snohomish County (HASCO) and Everett Housing Authority (EHA). All names have been changed as well as many other nonessential details to protect privacy. rel AI-7125 9. Planning Board Agenda Meeting Date: 09/10/2014 Review Extended Agenda Department: Planning Initiated By: Information Subject/Purpose Administrative Reports: Review Extended Agenda Staff Recommendation It is recommended the Planning Board review the extended agenda. Previous Board Action N/A Narrative Extended agenda is attached Attachments PB Extended A -ems °F PLANNING BOARD Extended Agenda September 10, 2014 Meeting Item wept. cui4 Sept. 10 1. Continued Discussion of Comprehensive Plan Sustainability Element 2. Discussion of Comprehensive Plan Housing Element Sept. 24 1. Presentation of Development Projects / Activities 2. Continued Discussion of Comprehensive Plan Housing Element 3. Public Hearing on Capital Facilities Plan Element update for 2015-2020 to City's Comprehensive Plan and the Capital Improvement Program for 2015- 2020. The proposal updates the city's capital facilities plan to include improvements, additions, upgrades or extensions of City infrastructure such as transportation, parks, and stormwater along with other public facilities necessary to implement the City's Comprehensive Plan. (File No. AMD20140006) Oct. 2014 Oct. 8 1. Discussion of Comprehensive Plan General Introduction Section & Land Use Element 2. Parks & Rec Quarterly Report (Tentative) Oct. 22 1. Continued Discussion of Comprehensive Plan & Land Use Element Nov. 2014 Nov. 12 1. Parks & Rec Quarterly Report (Tentative) Nov.26 CANCELLED Dec. 2014 Dec. 10 1. Discussion of Streetscape & Street Plan Dec.24 CANCELLED Pending 1 . Comprehensive Plan 2014 2. Community Development Code Re -Organization 3. Neighborhood Center Plans and zoning implementation, including: ✓ Five Corners 4. Further Highway 99 Implementation, including: ✓ Potential for "urban center" or transit -oriented design/development strategies 5. Update to Economic Development Plan 6. Exploration of incentives for sustainable development Current Priorities 1. Comprehensive Plan. 2. ECDC re -organization. 3. Neighborhood Center Plans & implementation. 4. Highway 99 Implementation. Recurring 1. Annual Adult Entertainment Report (January -February as necessary) Topics 2. Election of Officers (1st meeting in December) 3. Parks & Recreation Department Quarterly Report (January, April, July, October) 4. Quarterly report on wireless facilities code updates (as necessary)