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HomeMy WebLinkAbout02-02-2021 PLANNING COMMISSION AGENDA PACKETPlanning Commission Meeting February 2, 2021 - 7:00 P M A GE NDA I .Virtual Participation Information A .Virtual Participation I nformation The City of A uburn P lanning Commission Meeting scheduled for Tuesday, F ebruary 2, 2021 at 7:00 p.m. will be held virtually and telephonically. To attend the meeting virtually please click the link or enter the meeting I D into the Zoom App or call into the meeting at the phone number listed below. P er Governor I nslee's Healthy Washington - Roadmap to Recovery plan, the location for P lanning Commission Meetings will be virtual until the Governor of Washington S tate authorizes local governments to conduct in-person meetings. Per the Governor's E mergency Proclamation 20-28, the City of Auburn is prohibited from holding an in- person meeting at this time. J oin Z oom Meeting https://zoom.us/j/96105221170 Meeting I D: 961 0522 1170 One tap mobile 1-(253) 215-8782 I I .C AL L T O O RD E R B .RO L L C AL L/E S TAB L I S HM E NT O F Q UO RUM C.P L E D G E O F AL L E G I ANC E I I I .AP P RO VAL O F M INUT E S A .December 8, 2020 Draft Minutes from the Regular Planning Commission Meeting I V.P UB L I C HE ARI NG S V.O T HE R B US I NE S S A .P resentation by City Consultant EcoNorthwest on Proposed Development of an Auburn Action Housing Action Plan (HAP ) B .E lection of Officers C.Annual Review of P lanning Commission Rules of Procedure Page 1 of 111 V I .C O M M UNIT Y D E V E L O P M E NT RE P O RT Update on Community Development Services activities. V I I .AD J O URNM E NT The City of Auburn Planning Commission is a seven member advisory body that provides recommendations to the Auburn City Council on the preparation of and amendments to land use plans and related codes such as zoning. Planning Commissioners are appointed by the Mayor and confirmed by the City Council. Actions taken by the Planning Commission, other than approvals or amendments to the Planning Commission Rules of Procedure, are not final decisions; they are in the form of recommendations to the city council which must ultimately make the final decision. Page 2 of 111 AGENDA BILL APPROVAL FORM Agenda Subject: December 8, 2020 Draft Minutes from the Regular Planning Commission Meeting Date: January 20, 2021 Department: Community Development Attachments: December 8, 2020 Draft Minutes from the Regular Planning Commission Meeting Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: Background Summary: Rev iewed by Council Committees: Councilmember:Staff: Meeting Date:February 2, 2021 Item Number: Page 4 of 111 PLANNING COMMISSION December 8, 2020 Draft MINUTES I. CALL TO ORDER Chair Judi Roland called the meeting to order at 7:00 p.m. via Zoom due to Governor Inslee’s “Stay Home, Stay Healthy” initiative due to the Covid-19 Pandemic and City Ordinance No. 5533 which establishes the official meeting place, as virtual. a.) ROLL CALL/ESTABLISHMENT OF QUORUM Commissioners present: Chair Judi Roland, Vice-Chair Lee, Commissioner Mason, Commissioner Moutzouris, Commissioner Khanal, and Commissioner Stephens. Staff present: Jeff Dixon, Planning Services Manager; Ingrid Gaub, Public Works Director; Kendra Comeau, City Attorney; Doug Ruth, Assistant City Attorney; Jennifer Oliver, Administrative Assistant. Members of the public present: Kim Allen, Vice President Wireless Policy Group, LLC on behalf of Verizon; Meridee Pabst, Vice President Wireless Policy Group LLC on behalf of AT&T. b.) PLEDGE OF ALLEGIANCE II. APPROVAL OF MINUTES A. November 17, 2020 – Special Planning Commission Meeting Minutes Commissioner Khanal moved and Commissioner Stephens seconded to approve the minutes from the November 17, 2020 meeting as written. MOTION CARRIED UNANIMOUSLY. 5-0 Vice Chair Lee did not vote as he was not present at the November 17, 2020 meeting. III. PUBLIC HEARING A. Continued Public Hearing for Code Amendments for Wireless Communication Facilities, ZOA20-0005. Changing Title 17, ‘Land Divisions and Adjustments’ & Title 18, ‘Zoning’. Chair Roland opened the Continued Public Hearing for Code Amendments for Wireless Communication Facilities, ZOA20-0005 regarding changing Title 17, ‘Land Divisions and Adjustments’ & Title 18, ‘Zoning’, at 7:06 p.m. Commissioner Khanal excused himself from this portion of the meeting due to a conflict of interest with his employer. Page 5 of 111 PLANNING COMMISSION MEETING MINUTES December 8, 2020 Page 2 Planning Services Manager, Jeff Dixon gave a brief recap to the Planning Commission. The City is systematically initiating changes to various city code sections to address consistency with changes in state & federal law requirements and to reflect changes in wireless communication technology among other minor changes. Due to the highly technical and litigious nature of the subject, the City hired a legal consultant specializing in the subjects of wireless communication and ROW permitting of franchises and that is familiar with the results of court decisions. The City Legal Dept., Public Works Dept., and Community Development Dept. staff has been working with this consultant over the last year on drafting code changes. As part of this, the city is proposing to amend city code section, Title 17 ‘Land Adjustment and Divisions’ (the subdivision code) and Title 18 ‘Zoning’ which are subject to review and recommendation by the Planning Commission. Brief history of recent actions At the Planning Commission’s October 20, 2020 special meeting, staff introduced, described, and presented these code changes that were shown in writing by strikeout (deletions) and underline (additions). Subsequently, the code changes were scheduled for a public hearing on November 4, 2020. Prior to this hearing, the City received two sets of comments and associated cover letters from representatives of wireless carriers, Verizon, and AT&T. These cover letters and sets of markups were e-mailed to the commission members in advance of the public hearing. At the conclusion of the public hearing, the Planning Commission voted to close the record and continue the public hearing to their November 17, special meeting. Again, due to the large number of comments, the highly technical nature of the comments, the need to research and coordinate with other departments, the city staff did not have time to fully consider the significance and evaluate all the comments prior to the November 17, 2020 meeting. At the November 17, 2020 staff requested and the Planning Commission continued the public hearing to the December 8, 2020 regular meeting held virtually starting at 7:00 pm. Staff subsequently held a teleconference with representatives of wireless carriers: Verizon, AT&T, and T Mobile on November 19, 2020. The discussion focused on the carrier’s key areas of concern by these industry representatives. The City reiterated that the city-proposed changes where mainly for the purpose of consistency with federal law and that other requested changes may be outside this scope of the city’s current project. The representatives can always initiate separate applications to the city for changes. Based on this discussion, staff has affected a handful of additional changes shown in a different color in the attached Exhibit 1, and summarized, below. Page 6 of 111 PLANNING COMMISSION MEETING MINUTES December 8, 2020 Page 3 Changes based on staff and wireless industry teleconference 1. Page 34, ACC 18.31.100, WCF Siting Standards, Subsection B. 1.c, “Separation between facilities” and Page 40, ACC 18.31.100, WCF Siting Standards, Subsection G.7.a. ii, regarding criteria for an administrative waiver from concealment techniques In response to wireless industry comments, a change is made in both places to add language to recognize that an exception to either new tower minimum separation distance, or to WCF concealment techniques may be authorized by the City based not only on technological feasibility, but also based on the availability of sites and ability to secure leases for new wireless facility locations upon submittal of specific evidence of attempts to secure locations that is determined to be satisfactory by the City. Summary Excerpt -------------------------- c. The Community Development director may exempt an applicant from these separation requirements if (1) the applicant demonstrates to the City’s satisfaction that despite diligent efforts, other options are neither available to lease nor technologically feasible to address a service provider¹s demonstrated gap in coverage or demonstrated lack of system capacity. Documentation regarding inability to lease shall include names and addresses of owners contacted, date of contact, method of contact and owner responses and failure to approve the exemption would be an effective prohibition of the applicant being able to provide wireless communications, or (2) the director determines, when considering the surrounding topography; the nature of adjacent uses and nearby properties; and, the height of existing structures in the vicinity, that placement of a tower at a distance less than the minimum separation from another tower will reduce visibility and reduce visual clutter to a greater extent. Summary Excerpt -------------------------- ii. The applicant demonstrates to the City’s satisfaction that despite diligent efforts, other options are neither available to lease nor technologically feasible to address a service provider¹s demonstrated gap in coverage or demonstrated lack of system capacity. Documentation regarding inability to lease shall include names and addresses of owners contacted, date of contact, method of contact and owner responses. There is no existing nearby alternate structure for co- location or attachment that will provide the technological functionality and which otherwise meets the design standard requested to be waived; and Page 7 of 111 PLANNING COMMISSION MEETING MINUTES December 8, 2020 Page 4 2. Page 34-35, ACC 18.31.100, WCF Siting Standards, Subsection C.3, “Co- location Requirements”. Add language to clarify that city’s requirements for co-location (sharing of facility by more than one carrier/company) are based on a total of two wireless communication carriers and not two (2) carriers in addition to the original carrier applying for and installing the facility. Summary Excerpt -------------------------- 3. Towers shall be designed and constructed to allow the tower to accommodate WCFs from at least two (2) carriers on the same tower; one in addition to the original. No property owner or carrier shall unreasonably exclude another carrier from using the same facility or location. Design and construction for co-location shall not be required when it would materially compromise the camouflage design intent of the tower, or when, in the reasonable discretion of the Community Development director, such construction is not technically feasible based upon construction, engineering and design standards of the industry, or based upon evidence provided, a tower designed for co-location will not be commercially viable. An applicant, owner, or operator seeking Community Development director approval to waive the co-location requirements described herein shall provide evidence explaining why co-location is not possible at a particular tower. The Commission brought forth a grammar correction on Page 27 of 87 of the packet under Item E. The section states, “with the intent” and also states in the same sentence “intended to make”. Planning Services Manager Dixon stated the grammar would be corrected. The Planning Commission asked why it was in the public’s interest to eliminate the concealment requirements or to create a “backdoor” not to require it? Planning Services Manager, Jeff Dixon explained that the City would continue to have the ability to require those concealment techniques and the code language the city is proposing is to require these concealment techniques along designated view corridors which are the major roadways mentioned. The change talked about in the meeting tonight is related to instances where the city we might grant some relief from those concealment techniques. The concept is that there might be instances where its not possible to provide those concealment techniques and to avoid the City effectively prohibiting the facility, options are needed to meet and maintain consistency with federal requirements. The City wants to insure that it can observe the concealment techniques, but want to allow an opportunity for limited exceptions where warranted, like we do for many land use processes with a variance; where if they can demonstrate that there isa technical Page 8 of 111 PLANNING COMMISSION MEETING MINUTES December 8, 2020 Page 5 feasibility that would prevent them from observing the concealment techniques or that the unavailability of sites in to get an exemption. This is necessary so the City doesn’t have an effective prohibition of the wireless communication facility that puts us contrary to Federal Law. Vice Chair Lee asked if, since there will be a new federal government administration starting in 2021, is there a likelihood that the City and Planning Commission could be meeting again on the same topic with different or new federal regulations coming through? Planning Services Manager Dixon informed the Commission that many of the regulations were established back in 2012 or 2014 by pervious federal administrations and thus it seems that the changes are more longterm. He continued saying that it doesn’t seem that a change in administration would make a large difference. However, topics and technology continue to evolve and could drive future changes. Asking three times and with no other public testimony, Chair Roland closed the public hearing at 7:30 PM. With no other questions from the Commission, the Commission deliberated. Vice Chair Lee moved, and Commissioner Stephens seconded to recommend approval of the Revised Code Changes to Titles 17 & 18 as shown in Exhibit 1 to the Planning Commission. IV. COMMUNITY DEVELOPMENT REPORT Planning Services Manager, Jeff Dixon reported to the Commission that on December 7, 2020 at the Regular City Council Meeting, the Council adopted the following Ordinances in relation to the 2020 Annual Comprehensive Plan Amendments that the Planning Commission recently made recommendations on: • Ordinance No. 6803, the slate of 2020 Annual Comprehensive Plan Amendments. • Ordinance No. 6804 related to the School Impact fees as a result of the adoption of the Capital Facilities Plans for the four school districts within Auburn. • Ordinance No. 6807 related to the rezone for Westport Capital LLC. This had to be broken into a separate Ordinance for Council adoption, since it is a contract rezone which requires separate recording with the County, so the conditions of approval appear on the title of the property. Planning Services Manager Dixon stated that Council was complimentary of the Planning Commission’s work on the 2020 Annual Comprehensive Plan Amendments. Page 9 of 111 PLANNING COMMISSION MEETING MINUTES December 8, 2020 Page 6 Also, of note, Governor Inslee extended the Open Public Meetings Act requirements through January 19th, 2021. This will keep us in the format of virtual meetings until then. Staff presented a recent project that was developed for Valley Cities Counseling and Consultation located at 26th St and I Street NE. Valley Cities is a non-profit that provides counseling and resources for individuals, families, and youth. They have a couple of facilities on parcels nearby and this was the latest consisting of the Phoenix Rising Project Phase 2 that consists of 12 dwelling units of communal living quarters at this facility. What is unique about this project is that they partnered with a company called Blokables that makes pre-assembled modular building units that are highly efficient and they assemble these together to create the living quarters. Staff provided a photo of the project and of the manufacturing of the units. Staff worked with the company on a design review to dress up the building, so they didn’t look just like blocks but more unified housing structure. Planning Services Manager Dixon shared with the Commission that the City has signed a contract to be part of mybuilderpermit.com, an on-line permitting portal. Many eastside cities and now southend cities have joined. On this site, an applicant can submit permit applications and pay fees. The advantage of participating is that it allows for there to be commonalities between all of the cities that are involved with the program. A developer does not need to learn a separate routine of each city. It works with one password and login for the customer and allows for each city to customize it to what their jurisdiction requires. There are 12-14 cities that are involved with it all being in King County. It is not functional yet as the City is still working how it interfaces with our financial and permitting software systems and development of the application forms. The Commission inquired if there is cost to join the organization. Staff could not answer that question. The proposed January 5, 2021 Planning Commission Meeting topics will consist of a review of the Commission’s Rules of Procedure and to make any changes or adjustments the Commission requests. Another topic to come forth to the Commission is regarding how Community Development is working with a consultant that is assisting the department with a development of a Housing Action Plan (HAP). As the Commission is aware, housing is a hot topic. The Washington State legislature made available grants for jurisdictions to study housing issues in their municipality and also to come up with a housing action plan that includes recommendations on how the city can assist with provision of additional housing and to look at the housing needs for different income levels in the jurisdiction. The City was successful in securing the grant. Staff would like the city’s consultant to come before the Commission and share a presentation on what they are finding out on housing needs and to report on progress of development of this Plan. Page 10 of 111 PLANNING COMMISSION MEETING MINUTES December 8, 2020 Page 7 Commissioner Mason inquired about the former Heritage Building site and the progress on new development. Staff confirmed that the owners have secured their civil improvements and building permits from the City. There is a possibility they are still waiting on securing an easement for vehicle driveway access near the Safeway parking lot to the parking proposed within the new building. Also, this time of year is not ideal for construction so there is a chance that there could be a delay or they are in the process of lining up contractors to begin sitework. Planning Services Manager Jeff Dixon confirmed that at the City Council Meeting on December 7, 2020, Commissioner Khanal and Chair Roland were reappointed for the next 3 years for their Planning Commission seats. V. ADJOURNMENT There being no further business to come before the Planning Commission, Chair Roland adjourned the meeting at 7:55 p.m. Page 11 of 111 AGENDA BILL APPROVAL FORM Agenda Subject: Presentation by City Consultant EcoNorthwest on Proposed Development of an Auburn Action Housing Action Plan (HAP) Date: January 21, 2021 Department: Community Development Attachments: PC Intro Memo for HAP PC Mtg Pres entation ECONW Extg Conditions Memo - REV Exc Summary Fact Packet - Framework Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: Background Summary: Rev iewed by Council Committees: Councilmember:Staff:Dixon Meeting Date:February 2, 2021 Item Number: Page 12 of 111 Page 1 MEMORANDUM TO: Judi Roland, Chair, Planning Commission Roger Lee, Vice-Chair Planning Commission Planning Commission Members FROM: Jeff Dixon, Planning Services Manager DATE: January 18, 2021 RE: February 2, 2021 Planning Commission introductory presentation on the development of a Housing Action Plan (HAP) for the City of Auburn. Background: Housing is a pressing issue in our region. It is also a complex issue influenced by several factors and participants. While the housing supply is influenced by factors beyond the city’s control, the City’s Community Development Department is working to make sure we do what we can to support the development of enough housing for everyone in Auburn. To do this work, the City has received a grant from the Washington State Department of Commerce to develop a Housing Action Plan (HAP). The Housing Action Plan (HAP) will evaluate the current housing dynamics in Auburn and take into consideration projected future needs. This data will help inform the City's housing strategies to assist in ensuring the right supply of housing is available to meet the future demands of Auburn residents at all income levels. History of E2SHB 1923 and contract: Recognizing the need for additional housing, the Washington State Legislature authorized up to $5 million for the development of housing action plans by jurisdictions and intended to increase urban residential capacity, with a maximum award amount per jurisdiction of $100,000. The City of Auburn sought this funding for the development of a Housing Action Plan (HAP) to accomplish short term goals identified in the Housing Element of the City’s Comprehensive Plan. Signed into law by Governor Inslee on May 9, 2019, Engrossed Second Substitute House Bill (E2SHB) 1923 authorized the Washington State Dept. of Commerce to issue grant funding for the purpose of increasing residential housing capacity in urban areas. The City of Auburn submitted a grant application on September 30, 2019, requesting the maximum award of $100,000. On November 5, 2019, Auburn was officially awarded the grant in the amount of $100,000. Page 13 of 111 Page 2 On November 18, 2019, the Auburn City Council considered and adopted City Resolution No. 5471 authorizing the City to enter into a contract with the WA State Dept. of Commerce to accept the grant and prepare a Housing Action Plan. The contract specifies that the Housing Action Plan (HAP) must be adopted by the City Council by May 31, 2021. Purpose: According to the contract language, the goal of a housing action plan is to encourage construction of additional affordable and market rate housing in a greater variety of housing types and at prices that are accessible to a greater variety of incomes, including strategies aimed at the for-profit single-family home market. The housing action plan should: (a) Quantify existing and projected housing needs for all income levels, including extremely low-income households, with documentation of housing and household characteristics, and cos/burdened households; (b} Develop strategies to increase the supply of housing, and variety of housing types, needed to serve the housing needs identified in (a) of this subsection; (c) Analyze population and employment trends, with documentation of projections; (d) Consider strategies to minimize displacement of low-income residents resulting from redevelopment; (e) Review and evaluate the current housing element adopted pursuant to RCW 36.70A.070, including an evaluation of success in attaining planned housing types and units, achievement of goals and policies, and implementation of the schedule of programs and actions; (f) Provide for participation and input from community members, community groups, local builders, local realtors, nonprofit housing advocates, and local religious groups; and (g} Include a schedule of programs and actions to implement the recommendations of the housing action plan. Scope of work: The work effort and contract are generally divided, in two main phases: 1) The first phase The first phase consists of the development of a South King County Subregional Housing Action Framework document in collaboration with neighboring jurisdictions of Burien, Federal Way, Kent, Renton, and Tukwila. As a part of the collaborative effort, up to $20,000 per jurisdiction has been allocated for the purpose of collecting sub-regional data necessary to support the development of individual Housing Action Plans. This cooperative effort provided economies of scale and allowed the sharing of information and facilitated the comparison between several south county cities. The cities cooperatively selected and hired a professional consulting firm with specialized expertise, EcoNorthwest, to gather information and assist the city in the preparation of this document. This document was completed in August 2020. Page 14 of 111 Page 3 Attached as Attachment C is the Fact Sheet/Executive Summary of the South King County Subregional Housing Action Framework document that captures broad factors impacting housing choice, cost burden, and existing conditions of housing stock in South King County that will set the stage to evaluate and incorporate appropriate policies, tools, and incentives for increasing residential capacity. The full document can be shared with the Planning Commission, if desired. 2) The second phase This second phase, currently in process builds on the contents of the South King County Subregional Housing Action Framework document developed in the first phase but focuses specifically on the City of Auburn. And this phase is independent and conducted under a separate contract component. This step was also the subject of a consultant selection and hiring process and resulted in the City choosing the same consultant, EcoNorthwest, as had worked on first phase. Use of the same consultant aids in efficiency and continuity. As a first step for this phase, the City’s consultant has prepared information specific to the City of Auburn. The consultant has prepared a draft “Auburn Housing Action Plan Existing Conditions Memorandum which details the current conditions influencing housing capacity in the City. Attached as Attachment B this document is the subject of the presentation for the February 2, 2021 regular Planning Commission meeting. This document not meant to stand alone but will be incorporated into the contents of the overall City Housing Action Plan (HAP). This document has the following components: • Introduction • Housing Needs Analysis discusses the current housing inventory in Auburn, current demographics and employment trends for Auburn residents, housing affordability trends and displacement risk, and estimates future housing needs for Auburn through 2040. • Market Conditions provides data on recent rents, home sales prices, vacancy rates, and development trends in Auburn. • Housing Planning and Policy Evaluation discusses the most relevant planning documents – from state to county to local levels – that guide and influence housing development and housing planning decisions in Auburn. Building on the work completed in the South King County Subregional Housing Action Framework, this section also evaluates five policies that are in place in the City of Auburn to assess their successes at encouraging housing development. • Methodology, Data Sources, and Assumptions lists the data, sources, and the methods used in this analysis. This phase of the effort also has an emphasis on a public outreach effort to solicit public feedback while the plan is under development and when a draft of the plan is available for public comment. To get the most relevant and valuable feedback, this outreach is targeted to persons impacted by or with knowledge about housing issues and circumstances in the City of Auburn. City subconsultant of Broadview Planning has developed a public engagement plan consisting of several actions that will be described in the Planning Commission presentation on February 2, 2021. Due to the restrictions associated with the pandemic, the city has implemented a new on-line tool as one method of gathering input: https://speakupauburn.org/hap Page 15 of 111 Page 4 Range of possible future actions: When complete, this analysis, along with public input, will be used to generate recommendations and implementation steps in the completed Housing Action Plan, which will help the City of Auburn guide its housing policies and regulations and decisions over the 2020-2040 planning period. The City’s contract with the Washington State Dept. of Commerce specifies that the HAP must be adopted by the City Council prior to the contract deadline of May 31, 2021. Future actions include additional briefings with the Planning Commission. The implementation recommendations of the City’s HAP that the City could implement also may come back to the Planning Commission in the form of: o Changes to the Comprehensive Plan document such as: ▪ Updates to the housing element (chapter) goals and policies; ▪ Changes to Land use element (chapter) related to density and zoning standards; and ▪ Amendments related to the City’s Capital Facilities Element (Chapter). o Changes to City code, such as: ▪ Remain consistent with the Comprehensive Plan; ▪ changes to the set of land uses allowed in certain zones; ▪ changes to density standards; ▪ new or revised zoning districts; and ▪ efficiencies in development permitting. * * * * * Attachment A – PowerPoint presentation for the February 2, 2021 Planning Commission Meeting by Tyler Bump, of EcoNorthwest on the development of the Housing Action Plan (HAP) Attachment B – Draft Auburn Housing Action Plan Existing Conditions Memorandum by EcoNorthwest (background information for development of the Housing Action Plan (HAP)). Attachment C- Executive Summary/Fact Packet of the South King County Subregional Housing Action Framework document. Page 16 of 111 Auburn Housing Action Plan February 2, 2021 Tyler Bump Page 17 of 111 Project Overview Page 18 of 111 Auburn Housing Action Plan Public Engagement Community Vision Solicit Ideas Assess Changes Existing Conditions Data Analysis Employment Trends Population Growth Policy Evaluation Recommended Actions Public Input Staff Input Development Analysis Prioritization Adoption Planning Commission City Council 3Page 19 of 111 Building off South King County Subregional Housing Action Plan Framework 4 1.Public engagement 2.Assess housing needs in 2040 3.Evaluate demographic & employment trends 4.Develop new strategies 1.Preserve existing housing 2.Increase housing production 3.Increase housing choice 5.Evaluate neighborhood context for housing type allowances 6.Create the Housing Action Plan (HAP) AUBURN SOUTH KING COUNTY SUB-REGIONAL HOUSING ACTION PLAN FRAMEWORK 2020 Page 20 of 111 South King County Subregional Housing Action Plan Framework 5Page 21 of 111 Existing Conditions & Housing Needs Assessment Page 22 of 111 Auburn Income Levels Family Size 2018 Income Limit Annual Income Max Monthly Housing Costs (30% of Income) Example Jobs (full time) 30% of AMI $25,700 $643 1 worker in retail sector 50% of AMI $42,800 $1,070 1 worker in retail sector 80% of AMI $64,200 $1,605 2 workers in food service; 1 full time worker in info. tech. 100% of AMI $85,600 $2,140 2 workers in retail sector; 1 worker in management + 1 worker in retail sector 30% of AMI $32,100 $803 1 worker in food service 50% of AMI $53,500 $1,338 1 worker in transportation / warehousing 80% of AMI $80,250 $2,006 1 worker in finance; 1 worker in education + 1 worker in retail sector 100% of AMI $103,400 $2,585 1 worker in finance + 1 worker in agriculture; 2 construction workers Source: HUD 2018, Puget Sound Regional Council Employment Data, ECONorthwest Calculations 7Page 23 of 111 South King County Subregion Income Distribution Source: ECONorthwest analysis of 2018 Census 1-year PUMS data 17%16% 25% 11% 30% 18%16% 23% 12% 31% 18%15%16% 11% 40% 0% 10% 20% 30% 40% 50% 0-30% of AMI 31-50% of AMI 51-80% of AMI 81-100% of AMI 100%+ of AMI Auburn South King County King County Share of Households by AMI 8Page 24 of 111 South King County Subregion Income Distribution Source: ECONorthwest analysis of 2018 Census 1-year PUMS data 17%16% 25% 11% 30% 18%16% 23% 12% 31% 18%15%16% 11% 40% 0% 10% 20% 30% 40% 50% 0-30% of AMI 31-50% of AMI 51-80% of AMI 81-100% of AMI 100%+ of AMI Auburn South King County King County Share of Households by AMI 9Page 25 of 111 From 2010 to 2020: §49% increase in average 2-BR rent §88% increase in median home sales price From 2012 to 2018: §46% increase in median renter household income §17% increase in median owner household income Auburn’s Housing Affordability Trends 10Source: CoStar, PUMS (2012, 2018)Page 26 of 111 Housing Affordability –Cost Burdening 11 Cost burdening = household spends >30% of income on housing costs Severe cost burdening = household spends >50% of income on housing §80% of owners and 88% of renters earning <30% AMI are cost burdened §Worse for lower-income households §Worse for renters Page 27 of 111 Calculating Risk Analysis is modeled on PSRC’s Displacement Risk Tool. Includes 6 variables at the Census block group level: 1.% of population that is a race other than non- Hispanic White 2.% of households that speak a language other than English at home 3.% of population ≥25 who lack a bachelor’s degree 4.% of households that are renters 5.% of households paying >30% of gross income on housing 6.Per capita income Displacement Vulnerability in Auburn 12Darker purple indicates greater displacement risk * Block group contains few housing units, mostly commercial and industrial * Page 28 of 111 Auburn’s Housing Production Trends Auburn averaged 390 new units annually between 2011-2019 13Page 29 of 111 Auburn’s Demographics Source: PUMS, 2018 28%26%28% 9%9%10%11% 23% 13% 43% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 0-30%30-50%50-80%80-100%100%+ % of Renters % of Owners 14 Income Distribution by Tenure Page 30 of 111 2040 Housing Need Page 31 of 111 Future Housing Needs 16Page 32 of 111 Auburn’s Future Housing Needs by Income Level 1,669 1,043 2,503 1,251 3,963 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 0-30%30-50%50-80%80-100%100%+Number of UnitsPercent of AMI 2040 Forecast of Housing Need by AMI Source: Source: OFM, 2019; PSRC, 2017; ECONorthwest Calculation.17Page 33 of 111 Public Engagement Update Page 34 of 111 1.Reflect Auburn’s diversity; tell residents’ housing opportunities and challenges 2.Remain focused, yet flexible, on authentic public involvement during COVID-19 pandemic. 3.Develop and maintain a consistent communications strategy; ensure equitable messaging and close the information loop. 4.Clearly connect how community involvement and input informs HAP strategies. 5.Present data that summarizes community perspectives on how new housing integrates into neighborhoods. 6.Understand barriers to homeownership and best practices for creating opportunities for people to own their own home. HAP Public Engagement Goals 19Page 35 of 111 §Focus on race/social justice equity lens §Engage with people and organizations who typically don't participate in planning processes. §Include an educational component to relay how different types of housing can support and enhance a diverse, and vibrant city Public Engagement Update 20Page 36 of 111 Public Engagement Update Outreach methods: •10 -12 individual interviews •3-5 small focus groups •Social Media •Website & distribution list: •SpeakUpAuburn.org/HAP •Community forums •Public Presentations 21Page 37 of 111 HAP Public Engagement –Process & Next Steps Public Engagement Timeline January Finalize Plan, Questions, Stakeholder Contacts Begin Interviews Advertise Focus Groups February Planning Commission Update Continue Interviews Conduct Focus Groups March Summarize Findings Draft Recommendations April-May -June Draft HAP Planning Commission Feedback City Council Feedback Public Comment & Community Forum Feedback Final HAP 22Page 38 of 111 Questions? Contact: Tyler Bump Bump@econw.com 23Page 39 of 111 PortlandEugene Seattle Boise Page 40 of 111 Auburn Housing Action Plan – Existing Conditions ECONorthwest 1 DATE: January 15, 2021 TO: Jeff Dixon, City of Auburn FROM: Tyler Bump, Madeline Baron, Oscar Saucedo-Andrade, Justin Sherrill, Ryan Knapp SUBJECT: AUBURN HOUSING ACTION PLAN – EXISTING CONDITIONS MEMORANDUM – REVISED 1) Introduction The City of Auburn was founded in 1891 and has grown to become the fifteenth largest city in the State of Washington. Multiple periods of growth can be observed in the many regions of Auburn, including early 20th century neighborhoods, mid-century growth, and the annexation of rural county lands in the early 21st century. This has resulted in over 29 square miles of housing growth representing many different scales of development that have occurred over different periods of time. HB1923 and Housing Action Plans In 2019, the state legislature adopted House Bill 1923 (HB 1923), which awarded grants in the amount up to $100,000 to various cities for the purpose of increasing residential capacity. As the first step in developing a Housing Action Plan, the city of Auburn participated in the development of a supporting document: the South King County Subregional Housing Action Framework, along with the cities of Burien, Federal Way, Kent, Renton, and Tukwila. Auburn’s individual Housing Action Plan builds off the data analysis, housing needs, demographic and employment trends, housing policy review, and potential housing production strategies that were generated through this previous subregional framework report. Auburn’s individual Housing Action Plan must comply with state law, including adoption of the grant-funded Housing Action Plan consisting of the needs assessment, housing policy review, and implementation recommendation components, no later than June 30, 2021. Funding is provided by the Washington State Department of Commerce via House Bill 1923 (HB 1923). Housing Action Plan Development Process Housing Action Plan efforts are focused on encouraging production of both affordable and market rate housing at a variety of price points to meet the needs of current and future residents. Developing the Housing Action Plan is a multi-step process (see Figure 1). Throughout the entire process, a subconsultant, Broadview Planning is engaging the public to seek input on the community’s vision and housing needs, as well as ideas and recommendations for how Auburn can increase capacity for more housing. In addition, the public will be invited to review a draft Housing Action Plan and provide comment before the City moves toward finalization and City Council adoption of the Housing Action Plan. Page 41 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 2 Figure 1. Auburn’s Housing Action Plan Development Process The Department of Commerce requires that Housing Action Plans be adopted by each city. In Auburn, that means the Housing Action Plan will be presented to city staff for review, revised, and then presented for public review. After reviewing those comments, a revised, final Housing Action Plan will be presented to the Planning Commission, then to City Council for adoption. How this Report is Organized This Existing Conditions Memorandum focuses on the housing inventory, demographics, and employment trends occurring within the City of Auburn, as well as the policy environment that influences housing development. This memorandum provides a foundation of the existing conditions surrounding housing and population growth, and then estimates future housing needs in Auburn. This foundation is helpful to understand the basis for recommendations for actions as Auburn increases residential capacity to meet future population forecasts. This report is organized into five sections, beginning with this introduction, which is the first part. § Part 2) Housing Needs Analysis discusses the current housing inventory in Auburn, current demographics and employment trends for Auburn residents, housing affordability trends and displacement risk, and estimates future housing needs for Auburn through 2040.1 This is a required component of the Department of Commerce Grant funding this Housing Action Plan. § Part 3) Market Conditions provides data on recent rents, home sales prices, vacancy rates, and development trends in Auburn. 1 King County is in the process of updating its growth targets and forecasts for the 2017 - 2044 forecast period, but the formal adoption of these targets will not occur until late 2021. Auburn’s future housing needs estimated here are based off the acknowledged 2040 population forecast. Public Engagement Community Vision Solicit Ideas Assess Changes Existing Conditions Data Analysis Employment Trends Population Growth Policy Evaluation Recommended Actions Public Input Staff Input Development Analysis Prioritization Adoption Planning Commission City Council Page 42 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 3 § Part 4) Housing Planning and Policy Evaluation discusses the most relevant planning documents – from state to county to local levels – that guide and influence housing development and housing planning decisions in Auburn. Building on the work completed in the South King County Subregional Housing Action Framework, this section also evaluates five policies that are in place in the City of Auburn to assess their successes at encouraging housing development. This is a required component of the Department of Commerce Grant funding this Housing Action Plan. § Part 5) Methodology, Data Sources, and Assumptions lists the data, sources, and methods used in this analysis. When complete, this analysis, along with public input, will be used to generate recommendations and implementation steps in the completed Housing Action Plan, which will help the City of Auburn guide its housing policies and regulations and decisions over the 2020- 2040 planning period. Page 43 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 4 2) Housing Needs Analysis This section summarizes the housing inventory, household2 demographics, and socio-economic trends that influence housing needs in Auburn. It is based on work conducted for the South King County Subregional Housing Action Framework which was completed in June 2020. Important data sources, methods, and assumptions are listed in Part 5 beginning on page 42. This report uses the best available data sources to assess the housing inventory and future needs, analyze employment trends, and analyze demographic trends in Auburn. Because Auburn has more than 65,000 people, it is surveyed in the American Community Survey every year and thus has data in 1-year samples. The most recent survey data is for 2018. Information from other sources may be a few years old but represent best data sources. Current Housing Inventory As of 2018, there were 31,345 total housing units in Auburn (OFM, 2019). About half of Auburn’s housing stock was built in the 1980’s or earlier (King County Assessor, 2020) and the majority of the housing is single-family detached (61 percent). About 16 percent of Auburn’s housing stock is located in properties with 2-4 units, and construction of these housing types peaked in the 1970s and 1980s. About 23 percent of Auburn’s housing stock is characterized as multifamily, the majority of which was build pre-1960, and in the 1990s and 2000s.3 Auburn saw 3,511 new dwelling units built between 2011 and 2019, averaging 390 new units per year. Over this period, 7.8 new housing units were produced for every 10 new households that formed in Auburn.4 Figure 2. Number of Units Built Per Year, Auburn, 2011-2019 Source: OFM, 2019. 2 The U.S. Census defines a household as the following: “all the people who occupy a housing unit (such as a house or apartment) as their usual place of residence. A household includes the related family members and all the unrelated people, if any, such as lodgers, foster children, wards, or employees who share the housing unit. A person living alone in a housing unit, or a group of unrelated people sharing a housing unit such as partners or roomers, is also counted as a household. The count of households excludes group quarters. There are two major categories of households, "family" and "nonfamily." (see: https://www.census.gov/glossary/#term_Household) 3 In this report, multifamily housing is defined as five or more units in a given property development. 4 Household formation occurs when people move into the city, or when one household becomes two (e.g., a child moves out of a family home, roommates separate). Page 44 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 5 The majority of Auburn’s homeowners (88 percent) live in single-family detached housing. About half of Auburn’s renters live in multifamily housing (with five or more units per structure) and 23 percent of renters live in single-family detached housing. Figure 3. Occupied Housing by Tenure, Auburn, 2014-2018 Source: ACS (5 year 2014-2018). The majority of Auburn’s single-family housing stock was built prior to the 2000’s. The 1960’s, 1990’s, and 2000’s saw peak construction of single- family homes. The majority of duplexes, triplexes and quad-plex type housing was built prior to the 2000’s. The 1970’s and 1980’s saw peak construction of these housing types relative to other years. Figure 4. Type of Single-Family Housing Built, Auburn, 1960-2020 Source: King County Assessor’s Office, 2020. The majority of multifamily housing in Auburn was built before 2000. Auburn saw an increase in larger multifamily housing development (100+ units) in the 1980s, 1990s, 2000s, and 2010s. The majority of medium sized multi-family housing (between 5 and 50 units) was built in the 1990s or earlier. Figure 5. Scale of Multifamily Housing Built, Auburn, 1960-2020 Source: King County Assessor’s Office, 2020. 88% 23% 7% 8% 2% 20% 3% 49% 0% 20% 40% 60% 80% 100% Owner Renter Single-family detached Single-family attached Duplex, Triplex, Quadplex Multifamily (5+ units) Type of Single-Family Housing (units) Page 45 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 6 Compared to King County and South King County, Auburn has a higher share of 2-star5 apartments (typically older properties with few amenities). Based on CoStar data, half of Auburn’s apartment housing stock is rated 2-star, compared to 27 percent in King County and South King County. Figure 6. Share of CoStar6 Multifamily Inventory by “Star Rating” in Auburn, South King County, and King County Source: CoStar; Note: n signifies number of properties in each geography’s sample. Compared to King County and South King County, Auburn has a larger share of 3- and 4- bedroom units. About one-third of Auburn’s housing units have 1 or 2 bedrooms. Figure 7. Share of Housing Units by Bedroom Size, Auburn, South King County, and King County Source: ECONorthwest analysis of U.S. Census Bureau PUMS 2018 1-year survey data7 5 CoStar’s proprietary ratings consider design, amenities, certification, and landscaping, and other factors. A 5-Star multifamily building represents the luxury end of the market as it relates to finishes, amenities, design, and the highest level of specifications for its style (garden, low-rise, mid-rise, or high-rise). 4-Star multifamily buildings are constructed with higher end finishes and specifications, provide desirable amenities to residents, and are built to contemporary standards. 3-Star multifamily buildings are likely smaller and older with less energy-efficient systems, average quality finishes and or a layout conducive to compact lifestyle, and few on-site facilities. 2-Star multifamily buildings have small, adequate windows, average aesthetics, purely functional systems, below-average finishes and use of space, and limited on-site facilities. 1-star multifamily buildings are practically uncompetitive, may require significant renovation, and may be functionally obsolete. 6 CoStar is a private, third-party, proprietary data provider commonly used in the real estate industry. Of its residential data, CoStar focuses on multifamily properties with four or more units. While CoStar is one of the best sources for multifamily data, it has gaps and limitations. Newer buildings and those that are professionally managed are more likely to have reliable information, while smaller, older buildings may have incomplete or missing data. In Auburn in 2020, CoStar had data on about 5,800 multifamily units (in properties with four or more units). This compares to a 2018 PUMS estimate of roughly 12,000 multifamily units (in properties with five or more units). 7 The Public Use Microdata Sample (PUMS) dataset is very comprehensive and provided by the U.S. Census Bureau for statistical analysis. PUMS data are only available for geographies called Public Use Microdata Sample Areas (PUMAs) which contain about 100,000 people. The Auburn PUMA includes the Cities of Auburn and Lakeland. 51% 27% 27% 38% 56% 36% 11% 17% 34% 1% 3% 0%20%40%60%80%100% Auburn (n=5,794) S. King County (n=49,571) King County (n=305,516) 2-star 3-star 4-star 5-star 3% 3% 7% 12% 13% 17% 22% 28% 24% 37% 32% 27% 23% 18% 19% 4% 5% 6% 0%20%40%60%80%100% Auburn South King County King County Studios 1-BR Units 2-BR Units 3-BR Units 4-BR Units 5+ BR Units Page 46 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 7 Demographics and Household Information Between 2010 and 2018, Auburn’s population grew by more than 10,400 new residents, from 70,180 people in 2010, to 80,615 people in 2018. Auburn’s population is younger on average compared to other cities in South King County, and over half (57 percent) of its population identify as White. Similar to other cities in South King County, about 33 percent of Auburn’s households earned less than half of the Area Median Income (AMI - see page 10 for a description of AMI) in 2018, compared to 34 percent in the South King County region. In 2018, one and two-person households made up the majority of households in Auburn. The majority (62 percent) of Auburn’s households were one- and two-person households. About 25 percent of Auburn’s households were large families, with four or more persons per household. Between 2012 and 2018, Auburn added 7,474 new households (PUMS, 2012 and 2018). Figure 8. Number of Households by Household Size, Auburn, 2014- 2018 Source: ACS (5 year 2014-2018). Household Characteristics As of 2018, the majority (about 56 percent) of Auburn’s households were homeowners while 44 percent were renters (ACS, 2014-2018). This is higher than some other cities in the South King County region, but below the national homeownership rate of about 64 percent in 2018. Auburn’s average household size is 2.72 persons per household for renters and 2.80 persons per household for homeowners (ACS, 2014-2018). The majority (56 percent) of Auburn households own and 44 percent of households rent. In Tukwila, only 40 percent of housing units were owner-occupied in 2018. In Burien, this figure was 53 percent. Figure 9. Household Tenure, Auburn, 2014-2018 Source: ACS (5 year 2014-2018). 8,549 9,775 3,850 7,491 0 2,000 4,000 6,000 8,000 10,000 12,000 1 2 3 4+ 56%44% 0% 20% 40% 60% 80% 100% Owner-occupied households Renter-occupied households Page 47 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 8 About two-thirds of Auburn’s households are family households.8 Approximately one-third of Auburn’s households are non-family households (roommates and one- person households). Figure 10. Household Composition, Auburn, 2014-2018 Source: ACS (5 year 2014-2018). Like most areas, the majority of Auburn’s residents are between 20 and 64 years old. Auburn has a larger population proportion of young residents (those age 19 years and under) than seniors (those 65 years and older). Figure 11. Age Distribution, Auburn, 2014-2018 Source: ACS (5 year 2014-2018). Over half (57 percent) of Auburn’s households identify as White. This is slightly lower than King County’s average of 60 percent. An additional 16 percent of the population identifies as Hispanic or Latino, 11 percent identifies as Asian, 7 percent identifies as two or more races, and 5 percent identify as Black or African American. Figure 12. Race and Ethnicity, Auburn, 2014-2018 Source: ACS (5 year 2014-2018). 8 See footnote 2 on page 4 for a definition of family household. 33%34%33% 0%20%40%60%80%100% Non-family households Family households without children Family households with children 8% 8% 7% 6% 7% 15% 13% 13% 7% 6% 6% 3% 1% 0%5%10%15%20% Under 5 years 5 to 9 years 10 to 14 years 15 to 19 years 20 to 24 years 25 to 34 years 35 to 44 years 45 to 54 years 55 to 59 years  60 to 64 years  65 to 74 years 75 to 84 years 85 years and over 16% 57% 5%2% 11% 2%0% 7% 0% 10% 20% 30% 40% 50% 60% Hispanic or Latino White alone Black or African American alone American Indian and Alaska Native alone  Asian alone Native Hawaiian and Other Pacific Islander alone Some other race alone  Two or more races Page 48 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 9 Income Characteristics Income is one of the key determinants in housing choice and households’ ability to afford housing. This is due to the fact that, for most households in the U.S., housing is the single largest expense and impacts numerous other factors like access to jobs, schools, and amenities. Between 2012 and 2018, Auburn saw a large increase in the number of households earning between 50% and 80% of the 2018 King County Area Median Income (AMI – see page 11 for a description), while it saw a modest decrease in the number of households earning less than 30% of AMI, and a small decrease in the number of households earning between 80% and 100% of AMI (see Figure 13). About 33 percent of Auburn’s households earn less than 50% of AMI. This is in line with the South King County Region as a whole, where 34 percent of households earn less than 50% of AMI. Auburn’s share of households earning more than 80% of AMI is also similar to that of the South King County Region: 41 percent and 43 percent, respectively. Figure 13. Income Distribution by AMI, Auburn, 2012 and 2018 Source: PUMS (2012 and 2018). The majority of Auburn homeowners, 56 percent, earned 80% of AMI or more, while the majority of renters, 82 percent, earned 80% of AMI or less. The share of renters earning less than 80% of AMI is similar to that of South King County, 74 percent. Figure 14. Income Distribution by AMI and Tenure, Auburn, 2018 Source: PUMS, 2018. Housing Affordability Housing costs are typically the largest portion of a household budget. Housing is considered to be affordable to a household of a certain income if the household pays less than 30 percent of its gross income on monthly housing costs. While this is an imperfect measure of affordability and Page 49 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 10 does not consider disposable income after housing costs, it is an industry-accepted threshold to measure affordability. Understanding AMI and MFI Each year, the U.S. Department of Housing and Urban Development (HUD) defines an area’s Median Family Income (MFI), but Area Median Income (AMI) is often used to mean the same thing.9 AMI is used in this report to align with King County’s data and reporting. In 2018, the King County AMI was $103,400 for a family of four. 2018 is used to align with the 2018 Census data used in this report (the latest available). HUD calculates affordability and income limits for metro areas and counties across the country, based on the area's MFI which comes from Census data.10 The City of Auburn falls within the Seattle-Bellevue, WA Metro Area and is subject to the same income and affordability limits as the rest of the cities in this metro area (which includes King County and Snohomish County). Properties developed in Auburn that use HUD income limits to determine eligibility – such as regulated affordable housing that is restricted to tenants of a certain income – will use the same affordability limit as properties in Bellevue, Seattle, or other parts of King and Snohomish Counties, since they all fall within the same HUD metro area. In 2018, the Seattle-Bellevue, WA HUD Metro Area MFI was $103,400 for a family of four. HUD adjusts the income limits up or down based on family size and provides income limits for 30% of MFI, 50% of MFI, and 80% of MFI (see Figure 15). Figure 15. HUD 2018 Income Limits for Seattle-Bellevue, WA HUD Metro Fair Market Rent Area Source: HUD (see https://www.huduser.gov/portal/datasets/il.html and select the year and metro area from the list). Afford- ability Level Family Size (Number of People) 1 2 3 4 5 6 7 8 30% $22,500 $25,700 $28,900 $32,100 $34,700 $37,250 $39,850 $42,400 50% $37,450 $42,800 $48,150 $53,500 $57,800 $62,100 $66,350 $70,650 80% $56,200 $64,200 $72,250 $80,250 $86,700 $93,100 $99,550 $105,950 100% $103,400 9 We used AMI and MFI interchangeably in this report. HUD offers the following note on MFI vs AMI: “HUD estimates Median Family Income (MFI) annually for each metropolitan area and non-metropolitan county. The metropolitan area definitions are the same ones HUD uses for Fair Market Rents (except where statute requires a different configuration). HUD calculates Income Limits as a function of the area's Median Family Income (MFI). The basis for HUD’s median family incomes is data from the American Community Survey, table B19113 - MEDIAN FAMILY INCOME IN THE PAST 12 MONTHS. The term Area Median Income is the term used more generally in the industry. If the term Area Median Income (AMI) is used in an unqualified manor, this reference is synonymous with HUD's MFI. However, if the term AMI is qualified in some way - generally percentages of AMI, or AMI adjusted for family size, then this is a reference to HUD's income limits, which are calculated as percentages of median incomes and include adjustments for families of different sizes.” Source: HUD. 2018. “FY 2018 Income Limits Frequently Asked Questions.” https://www.huduser.gov/portal/datasets/il/il18/FAQs-18r.pdf 10 For the Seattle-Bellevue, WA HUD Metro FMR Area, HUD has deviated from its typical use of Office of Management and Budget (OMB) area definitions. In this case, the Seattle-Bellevue, WA HUD Metro FMR Area income limit program parameters include King County and Snohomish County. Page 50 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 11 Additional income limits (such as 60% or 120%) can be calculated off the 100% income limit to get an approximation of other affordability thresholds. However, these approximations—and HUD’s official limits—may not be exact scalars to the 100% median income (in Figure 15 the official 50% income limit for a family of four is slightly higher than half of the 100% income limit). Figure 16. HUD 2018 Income Limits for Seattle-Bellevue, WA HUD Metro FMR Area, Max Housing Costs, and Example Jobs Source: HUD 2018, Puget Sound Regional Council Employment Data, ECONorthwest Calculations Family Size 2018 Income Limit Annual Income Max Monthly Housing Costs (30% of Monthly Income) Example Jobs (full time) 2-Person Family 30% of AMI $25,700 $643 1 worker in retail sector 50% of AMI $42,800 $1,070 1 worker in retail sector 80% of AMI $64,200 $1,605 2 workers in food service; 1 full time worker in info. tech. 100% of AMI $85,600 $2,140 2 workers in retail sector; 1 worker in management + 1 worker in retail sector 4-Person Family 30% of AMI $32,100 $803 1 worker in food service 50% of AMI $53,500 $1,338 1 worker in transportation / warehousing 80% of AMI $80,250 $2,006 1 worker in finance; 1 worker in education + 1 worker in retail sector 100% of AMI $103,400 $2,585 1 worker in finance + 1 worker in agriculture; 2 construction workers In the past decade, housing costs in the entire Puget Sound have risen dramatically, buoyed by the strong economy, low housing production, and high demand for housing in the region. Price increases in the past decade are also high because they are measured off the very low prices in 2010, which was a period of home price declines from the housing crisis and economic recession. Auburn is no exception to having seen steep price increases. Since 2010, home prices in Auburn rose by 88 percent, from a median sales price of $222,750 in 2010 to $418,300 in 2020 (see Figure 17). In addition, the average rent for a two-bedroom apartment in Auburn increased by 49 percent from 2010 to 2020, reaching $1,393 per month. Using 2018 income data from Figure 16, this average rent for a two-bedroom apartment would be affordable to a four-person household earning 50% of the AMI (which would be a relatively tight space), or to a two-person household earning between 50% and 80% of AMI. Page 51 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 12 Between 2010 and 2020, the average monthly rent in Auburn increased by 49 percent ($459 per month). In this same time period, the median sales price for a home increased by 88 percent ($195,550). Figure 17. Median Home Sales Price and Average 2-Bedroom Rent, Auburn, 2010 and 2020 Source: Costar and Zillow. Not adjusted for inflation. 2010 2020 Average Rent $934 $1,393 Median Sales Price $222,750 $418,300 Figure 18 demonstrates the housing cost distribution of Auburn’s ownership housing stock as it relates to percent of AMI (this includes all ownership housing types and sizes). Despite price increases over time, Auburn’s housing stock remains somewhat affordable to lower income households: 38 percent of all housing units are affordable to households earning less than 50% of AMI ($42,800 for a family of two and $53,500 for a family of four). Another 32 percent of the housing stock is affordable to households earning between 50% and 80% of AMI ($42,800- $64,200 for a family of two and $53,500-$80,250 for a family of four). Of Auburn’s ownership units (using 2018 data), 38 percent were affordable to households earning less than 50% of AMI, 32 percent were affordable to households earning 50- 80% of AMI, and 30 percent were affordable to households earning 80% of AMI or more. Figure 18. Ownership Housing Units Affordable by AMI, Auburn, 2018 Source: PUMS (2018). Figure 19 demonstrates the housing cost distribution of Auburn’s rental housing stock as it relates to percent of AMI (this includes all rental housing types and sizes). Despite cost increases over time, Auburn’s housing stock remains relatively affordable to lower income households: 54 percent of rental housing units are affordable to households earning less than 50% of AMI ($42,800 for a family of two and $53,500 for a family of four). Another 35 percent of the rental housing stock is affordable to households earning between 50% and 80% of AMI ($42,800-$64,200 for a family of two and $53,500-$80,250 for a family of four). Page 52 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 13 Of Auburn’s rental units (using 2018 data), 54 percent were affordable to households earning less than 50% of AMI, 35 percent were affordable to households earning 50- 80% of AMI, and 11 percent were affordable to households earning 80% of AMI or more. Figure 19. Rental Housing Units Affordable by AMI, Auburn, 2018 Source: PUMS (2018). Regulated and Unregulated Affordable Housing Importantly, Figure 19 also includes the regulated affordable rental housing stock in the City. Regulated affordable housing is income or rent-restricted by certain county, state, or federal agencies, to ensure that it is occupied by households earning a certain income. Regulations are set according to the types of funding used to develop the housing, such as the Low-Income Housing Tax Credit, or HUD funding. Most regulated affordable housing is restricted for households earning under 60% of AMI, but these restrictions vary. Often, the only healthy, quality housing that rents at prices affordable to households earning less than 30% of AMI is this regulated housing stock.11 In 2020, Auburn had 2,784 regulated affordable housing units which are included in all analyses of Auburn’s housing stock. For numerous reasons relating to the cost of building and operating housing, cities across the country face a shortage of affordable housing units to meet demand. Nationally, only 1-in-4 households who would qualify for Federal housing assistance, is able to receive it. As a result, the majority of low-income households live in low-cost market rentals, that are often referred to as “naturally occurring affordable housing” (NOAH) units. Figure 20 below presents data on Auburn’s NOAH rental units. These units are defined as NOAHs by virtue of being unregulated but affordable to lower-income households (either households earning less than 50% of AMI or less than 80% of AMI). NOAH units are an important part of a city’s housing stock, but can be at risk of substandard quality, neglect, or dramatic price increases because they are not regulated. Auburn has few NOAH units that can accommodate larger household sizes in 3- and 4-bedroom units. 11 Unregulated housing stock that may be affordable to households earning less than 30% of AMI may be substandard quality. Households with these extremely low incomes may also find housing via HUD’s Housing Choice Voucher program, where a subsidy pays the difference between the market rent and the price the household can pay. Page 53 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 14 Of Auburn’s 6,421 NOAH units, 34 percent are affordable to households earning 50% of AMI or less and 66 percent are affordable to households earning between 50-80% of AMI. Figure 20. Number of Naturally Occurring Affordable Rental Units, by AMI Level, Auburn, 2012-2016 Source: ECONorthwest Analysis of Costar data. Units Affordable at: 50% of AMI or less 80% of AMI or less Studio units 87 230 1-bedroom units 1,029 2,477 2-bedroom units 952 3,139 3-bedroom units 103 471 4-bedroom units 12 104 Total 2,183 6,421 Housing Cost Burdening When a household cannot find adequate housing (habitable, the appropriate size, in a desired location) at a price that is considered to be affordable, it becomes “cost burdened.” As mentioned, the typical standard used to determine housing affordability is that a household should pay no more than 30 percent of its gross household income for housing, including payments and interest or rent, utilities, and insurance. HUD guidelines indicate that households paying more than 30 percent of their income on housing experience “cost burdening” and households paying more than 50 percent of their income on housing experience “severe cost burdening” (because those paying more than 50% on housing are by definition paying more than 30% on housing, rates of “cost burden” include those considered “severely cost burdened”). Cost burdening is an issue in that households may have too little income leftover after paying for housing costs, to afford other necessities, such as transportation, food, medicine, or childcare. Housing cost burdening is particularly important for low-income households, who have very little income to begin with. Policymakers typically focus on renters when assessing cost burdening. It can signal a lack of affordable housing in a region. It is less of a focus for homeowners, because a lender will assess a buyer’s ability to pay for a mortgage before the household can buy a home, and because mortgage payments are typically fixed and do not fluctuate with the larger economy or housing market. Thus, homeowners are not as vulnerable to price changes in the housing market. In 2018, 88 percent of renters earning less than 30% of AMI were cost burdened and 71 percent of renters earning between 30% to 50% of AMI were cost burdened (see Figure 21). Cost burdening tends to decline as incomes go up, because a household has more income to spend on housing. In Auburn, 33 percent of renters earning between 50% and 80% of AMI were cost burdened. Recalling the figures on page 11, a four-person household earning less than 30% of AMI in 2018 could afford a maximum monthly rent of $803. Yet the average two-bedroom apartment in Auburn was nearly $1,400 in 2020. With rents at this level, extremely low-income households are hard pressed to find housing that is affordable, and often end up cost- burdened. Page 54 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 15 Of Auburn’s renter households (earning 30% of AMI or less), 88 percent were cost burdened and 72 percent were severely cost burdened. Because those paying more than 50% on housing are by definition paying more than 30% on housing, rates of “cost burden” include those considered “severely cost burdened.” Figure 21. Cost Burdened and Severely Cost Burdened Renters, Auburn, 2018 Source: PUMS (2018). Housing Affordability, with Transportation Cost Considerations The standard definition of cost burden does not factor transportation costs. However, today, housing advocates and researchers stress the importance of considering transportation costs in affordability analyses, because many households relocate to the outer edges of metro areas in search of affordable housing, thereby increasing their transportation costs. Center for Neighborhood Technology publishes a Housing + Transportation Affordability Index (H&T Index) (most recently as of 2017), providing a ready-made data source for assessing the possible transportation cost burdening of Auburn residents. The H+T Index calculates, through a series of statistical models, the transportation and housing costs for the “regional typical” and “regional moderate” household; “typical” meaning a household earning the regional AMI with the regional average number of commuting workers and persons per household, and “moderate” meaning a household earning 80% of AMI (but having the same number of workers and persons per household). For the Seattle metro region, the “regional typical” household has the following attributes according to the H+T Model: § Income: $70,475 § Commuters: 1.19 workers § Household Size: 2.54 people While the index considers the “regional moderate” (80% of AMI) household as: § Income: $56,380 § Commuters: 1.19 workers § Household Size: 2.54 people In Auburn, the model estimates that a “typical” household would spend about 45 percent of its income on housing and transportation costs, while a “moderate” household would spend about Page 55 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 16 52 percent of its income on these necessities. This compares to 44 percent and 52 percent for households in Kent, and 44 and 51 percent for households in Federal Way (see Figure 22). Figure 22. 2017 Housing + Transportation Costs as a Percent of Household Income, South King County Jurisdictions and Comparable Areas Source: Center for Neighborhood Technology Housing + Transportation Affordability Index Name H+T costs as % of income - 100% of AMI H+T costs as % of income - 80% of AMI Auburn 45% 52% Bellevue 55% 65% Burien 44% 52% Federal Way 44% 51% Kent 44% 52% Renton 46% 54% Seattle 46% 54% Tukwila 39% 46% Displacement Risk As described in the demographics section above, Auburn has a very diverse population – by age, race, ethnicity, and household composition (e.g., family or non-family household). The City has included housing preservation as a key goal driving this Housing Action Plan, particularly as it relates to preserving housing for low-income households. Housing preservation is an anti- displacement effort, and can help to mitigate and minimize the negative effects that often arise from new housing development. Different Types of Displacement Before determining recommendations to prevent against displacement, it is helpful to define and unpack the meaning of displacement. Generally, there are three types of displacement: § Economic or indirect displacement. Economic displacement can occur if new development or redevelopment in an area rents or sells at higher price points that encourage owners of existing units to increase rents, and these increases exceed what existing tenants can afford. The effects of (re)development renting at market rates may spill over to lower-cost rental units, causing rents to rise and potentially displacing existing residents. However, if supply is tight and high demand puts upward pressure on rents, market changes could lead to displacement without any new development occurring in an area. § Economic displacement can occur due to high demand and low supply of new housing, with or without (re)development occurring. Economic insecurity and displacement are very important for existing communities, but is difficult to measure quantitatively. § Low-income households are at high risk of economic displacement as they have fewer choices about where they can afford to live. Page 56 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 17 § Physical or direct displacement. When evaluating when, where, and what type of project to build or rehabilitate, developers consider many factors, including market rents, construction costs, local amenities, and transit access. In some cases, public programs could encourage displacement by incenting a developer to rehabilitate or replace older, less expensive (unregulated affordable) housing with newer, higher- priced units. This could lead to the direct displacement of existing residents, who may not be able to afford the higher rents in the new development. § Physical displacement occurs with the redevelopment of a specific parcel. This only occurs when new development is feasible, and can be measured quantitatively. § In theory, any type of household could be at risk of physical displacement due to a new development demolishing their current housing. But in reality, low-income households, households of color, immigrant households, and other marginalized populations are at higher risk of physical displacement. Wealthy or “powerful” households are at lower risk of direct displacement, as they may not live in areas experiencing new development, and they may hold sway over decision makers or otherwise know how to exert influence in the process. § Cultural displacement occurs when people “choose” to move because their neighbors and culturally-relevant businesses and institutions have left the area. The presence (or absence) of these cultural assets can influence racial or ethnic minority households in their decisions about where to live, more than for broader populations. While this is difficult to measure, and one can argue whether these are true “choices” or whether this is “forced” displacement, it is an important effect that can have broad equity implications beyond physical or economic displacement alone. § Cultural displacement can occur with (re)development and includes business displacement. While cultural displacement is very important for existing communities, it is very difficult to measure quantitatively. § Marginalized communities – be they low-income, a specific race or ethnicity, or another group of people – are at higher risk of cultural displacement than dominant communities. When businesses and housing that serves these communities leave or are removed, people can feel pushed out of their neighborhoods. Displacement Risk Given these different types of displacement, Figure 23 on the following page shows the Census Block Groups within the City of Auburn that are most vulnerable to displacement, based on six different demographic and socioeconomic variables. Some of the Census Block Groups used in this analysis extend beyond Auburn’s city limits, however this does not influence or affect the methodology. Any recommendations about preservation and anti-displacement measures will be focused within Auburn’s city limits. Page 57 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 18 Figure 23. Map of Displacement Vulnerability in Auburn, 2018 Source: ECONorthwest Analysis of ACS 2018 5-year data. Note: The block group with an * in the SouthWest corner of the City is mostly commercial and industrial areas and has few housing units. A mobile home park located in this block group scored high on displacement vulnerability. Variables Used to Estimate Displacement Risk § Percent of population that is a race other than non-Hispanic White § Percent of households that speak a language other than English at home § Percent of population over age 25 who lack a bachelor’s degree § Percent of households that are renters § Percent of households paying >30% or more of their gross income on housing § Per capita income See the full methodology in Part 5 on page 45. The data only goes so far Actually measuring displacement is difficult, and not quantifiable from data. It requires qualitative information from in-person engagement with people living near new development. Cultural displacement, in particular can be very difficult to measure, as its effects are subtle and multifaceted. * Page 58 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 19 Block groups shown in purple and dark pink have the highest risk of displacement vulnerability when considering these socioeconomic factors. These neighborhoods might be at greater risk for economic displacement which can occur even without new development, if market forces – such as an imbalance of housing supply and demand – work to increase rents. It is important to keep in mind that this analysis does not consider development feasibility layered in with displacement risk. All three forms of displacement – physical displacement, economic displacement, and cultural displacement – can occur when new development occurs. A deeper dive into economic displacement resulting from the spillover of new development requires a robust analysis of new and existing rent trends, and this is beyond the scope of this work. More analysis is needed to understand this risk. When considering recommendations to boost housing production around the City, Auburn should evaluate the displacement risk in each neighborhood, and act carefully to implement policy changes. More discussion of policy changes, housing preservation, and other anti- displacement efforts will be discussed in a forthcoming Recommendations memorandum (expected in Spring 2021) and full Housing Action Plan. Employment & Transportation Based on data from the Puget Sound Regional Council (PSRC), Auburn’s total employment grew from 40,070 jobs in 2008 to 45,989 jobs in 2018—an increase of 5,919 jobs or 15 percent. This analysis measures residents of Auburn who are employed (in a given sector), not the total number of jobs located in Auburn. In 2018, the top four largest industries, in terms of total employed Auburn residents were: (1) Manufacturing with 8,764 people, (2) Retail Trade with 5,091 people, (3) Health Care and Social Assistance with 4,925 people, and (4) Wholesale Trade with 4,308 people. Combined, these industries represent 50 percent of Auburn’s total resident employment workforce. Between 2008 and 2018, several industries lost Auburn residents. The four industries that lost the greatest share of employed Auburn residents were: (1) Mining, Quarrying, and Oil and Gas Extraction with a 100 percent decline, (2) Utilities also with a 100 percent decline, (3) Retail with a 13 percent decline, and (4) Public Administration with a 12 percent decline. Combined, these industries represent a loss of 1,251 employment jobs. Job losses in each of the industries mentioned above, and job gains in new industries, signify a shift in Auburn’s employment profile between 2008 and 2018. For example, the five industries which gained the greatest share of employment were: (1) Agriculture, Forestry, Fishing and Hunting with a 192 percent increase, 12 (2) Finance and Insurance with a 115 percent increase, (3) Real Estate and Rental and Leasing with a 72 percent increase, (4) Health Care and Social 12 It is important to note that the large increase in Agriculture, Forestry, Fishing and Hunting is an increase from 13 to 38 people between 2008 and 2018. Page 59 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 20 Assistance with a 70 percent increase, and (5) Transportation and Warehousing with a 53 percent increase. Combined, these industries represent a gain of 3,784 employees. Median salaries in 2018 also varied by industry. At opposite ends of the wage spectrum, the Accommodation and Food Services industry had the lowest annual wages of $32,451, of which this industry represented approximately five percent of Auburn’s total employment. On the other, the Finance and Insurance industry had the highest annual wage of $79,375, representing about 2 percent of Auburn’s total employment. Figure 24 below shows how far an Auburn resident can travel to access employment in the Puget Sound Region within a 45-minute drive time (blue) and a 45-minute transit trip (orange). Figure 24. Access to Employment—Travel Shed, 2018 Source: ECONorthwest Analysis of 2018 PSRC Data. Note: Departing at 8:00 AM, midweek Page 60 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 21 Future Housing Needs PSRC forecasts that by 2040, Auburn will grow to a population of 95,461 people, an increase of 14,846 people (or 18 percent) from its 2018 population estimate of 80,615 people. As Auburn is forecast to grow at a faster rate than it has in the past, the City’s population growth will continue to drive future demand for housing through 2040.13 Based on this forecast population growth, the City is projected to need 10,429 new dwelling units between 2020 and 2040, at an average trajectory of 521 new units per year through 2040. Of those needed dwellings, 2,361 units are a result of housing underproduction (see sidebar). The remaining 8,058 units are to accommodate population growth. In total, this represents a sizable increase in the number of housing units that need to be produced each year (521 units), given the annual average of only 390 units built per year from 2011 to 2019. Figure 25. Housing Units Needed by AMI, Auburn, 2040 Source: OFM, 2019; PSRC, 2017; ECONorthwest Calculation. AMI # of Units % of Units 0-30% 1,669 16% 30-50% 1,043 10% 50-80% 2,503 24% 80-100% 1,251 12% 100%+ 3,963 38% Total 10,429 100% As Figure 25 demonstrates, 38 percent of units needed between 2020 and 2040 should be affordable to households earning more than 100% of the AMI. This is helpful since new market- rate housing tends to be developed at prices and rents that are affordable to higher income households. When an area does not have enough housing priced for higher income households, these households “rent down” and occupy units that would be appropriately priced for lower- income households, thereby increasing competition for low-cost housing units. All cities need a range of housing choices – of different sizes, types, and prices – to accommodate the various needs and incomes of residents. 13 See footnote 1 on page 2 for an explanation of King County 2040 Growth Targets. Housing underproduction is calculated based on the ratio of housing units produced and new households formed in Auburn over time. If too few housing units are constructed relative to the number of new households formed, underproduction occurs and contributes to price increases. Without including current underproduction in calculations of future need, the current mismatch of housing units to numbers of households will continue into the future. See more detailed methods in Part 5 beginning on page 42. Page 61 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 22 3) Market Conditions This section presents information about market conditions and development trends in Auburn’s housing market. Data includes multifamily rents, vacancy rates, and recent developments delivered to the market, as well as home price trends that should be taken into consideration when evaluating future development in Auburn. This section also includes comparisons of trends in Auburn to other cities in South King County. These data and market trends are important to consider as the City works to encourage the development to reach the 10,429 units needed by 2040. Rental Market Trends As the housing inventory demonstrated, 3,511 total housing units were developed between 2011 and 2018 (see Figure 2 on page 4). Roughly 60 percent of these new units are ownership units, while about 40 percent are rentals. In 2020, multifamily rents in Auburn reached a historic high of $1.68 per square foot, however, rents are lower than the greater King County region where average rents are about $2.18 per square foot. Vacancies also increased in 2020 due to a brand new 500-unit multifamily apartment development that is still being absorbed into the market.14 Irrespective of this large market delivery, historic vacancies in Auburn remain low at about 4.5 percent as demand for multifamily apartments continues to increase. From 2013 to 2019, multifamily rents in Auburn have increased while vacancy rates have hovered around 4.5 percent. The 2020 vacancy spike came from a large multifamily delivery of about 500 units. From 2010 to 2020, multifamily rents grew 47 percent from $1.14 to $1.68 per square foot. Figure 26. Multifamily Rent per Square Foot and Vacancy Rate, Auburn, 2008 through Q3 2020 Source: CoStar 14 Copper Gate apartments, located at 4750 Auburn Way N, construction with first occupancies in October 2020. $1.68 11.0% 0.0% 1.5% 3.0% 4.5% 6.0% 7.5% 9.0% 10.5% 12.0% $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 $1.75 $2.00 2008200920102011201220132014201520162017201820192020 Q3Vacancy RateDirect Rent per Sq. Ft.Rent per Sq. Ft.Vacancy (%) To get a deeper look at housing market trends in Auburn, this section primarily relies on proprietary data sources, such as Zillow and CoStar, rather than public sources like the Office of Financial Management or the US Census, which take longer to be collected and published. The CoStar data presented here focuses on market rate trends and only shows multifamily properties (with 4+ units) so statistics here are a subset of the full housing stock analyzed in the Housing Inventory. Page 62 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 23 The average rent for a two-bedroom unit in Auburn was $1,393 in 2020, and has grown 49 percent since 2010. As shown in Figure 27, Auburn’s rents have grown commensurate with its neighboring cities, only surpassing that of Federal Way in about 2011. Unlike some cities, Auburn’s rents did not decline in the post-recession housing crisis. By third quarter (Q3) 2020, Auburn’s average rent was approaching that of Kent and Tukwila’s. Figure 27. Multifamily Rent per Unit, South King County Cities & Tacoma, 2010-2020 Source: CoStar Figure 28 below shows that net absorption15 has been mostly positive, indicating an increase demand for multifamily housing in the City. According to CoStar data accessed in fall 2020, Auburn has about 614 multifamily units under construction, with 63 percent of them (or 387 units) expected to be delivered by the end of 2020. The remaining 37 percent of units are expected to be delivered by June 2021. 15 Net absorption measures the net change in supply of multifamily units in Auburn. A positive value indicates that supply is being rented more than what has been delivered to market in a given year. $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 20102011201220132014201520162017201820192020Multifamily Effective Rent per UnitAuburn Burien Federal Way Kent Renton Tacoma Tukwila Page 63 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 24 Over the 2008 to 2020 Q3 period, net absorption has been mostly positive, indicating demand has continually increased. In 2020 Q3, net absorption is negative, though this is likely due to the recent multifamily delivery of units that has yet to be leased to residents. Figure 28. Multifamily Net Absorption, Auburn, 2008 through Q3 2020 Source: CoStar Recent Rental Property Developments Figure 29 shows examples of recently constructed market-rate and affordable multifamily buildings in Auburn. These properties were selected to highlight the recent market trends in design, size, and amenities being constructed in multifamily residential properties in Auburn. Since 2008, ten multifamily properties were built. Typically, these new multifamily properties are between three and five stories tall and mostly offer one- and two-bedroom units. Typical amenities for new properties include clubhouses, fitness centers, laundry facilities, and game rooms/media centers. Additionally, three of these properties are for senior living and six are regulated affordable housing (including two of the senior properties). Three additional multifamily properties are under construction with expected completion in 2021. Figure 29. Examples of New Multifamily Apartment Buildings in Auburn Source: CoStar Trek Apartments Type: Mid-Rise Apartments Year Built: 2015 Description: The Trek Apartments is a 126- unit, 5-story apartment building. It has studio, 1-, and 2-bedroom units ranging in size from 536 SF for studios and 650-833 SF for 1- and 2-bedrooms units. Rents are market rate and range from $1,322 for studios to $1,712 for 2-bedroom apartments. Unit amenities include a washer/dryer, dishwasher, balcony, HVAC, and upper level terrace, community room, and fitness center. It is located in downtown Auburn. -200 -100 0 100 200 300 400 500 600 700 2008200920102011201220132014201520162017201820192020 Q3UnitsPage 64 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 25 Merrill Gardens at Auburn Type: Low-Rise Apartments Year Built: 2017 Description: Merrill Gardens is a 129-unit 4-story senior living apartment building around the corner from Trek Apartments. It has studio, 1-, and 2-bedroom units ranging in size from 496 SF studios and 693-976 SF for 1- and 2-bedroom units. Rents are market rate and range from $2,923 for studios to $4,291 for 2- bedroom apartments. Unit amenities include HVAC with site amenities such as community room, patio and meal service. The Reserve at Auburn Type: Mid-Rise Apartments Year Built: 2018 Description: The Reserve at Auburn is part of a phased affordable mixed-use development that contains 298 affordable units for senior living. The second phase is the Villas at Auburn which has 295 affordable family-sized units and approximately 11,000 square feet of ground floor commercial space. Both multifamily buildings are 5-stories and each contain their own separate amenity space. All units are 1- or 2-bedroom, averaging 547 SF ($1,303 asking rent) and 612 SF ($1,565 asking rent), respectively. The Reserve is located just north of downtown Auburn off of C St. Ownership Market Trends As indicated in the Housing Needs Analysis in Part 2, Auburn’s housing stock primarily consists of ownership units (it has a 56 percent homeownership rate) compared to only about 44 percent of rental units. Due to demand outpacing the supply of homes in Auburn, prices have been rising. Since 2010, home prices in Auburn rose by 88 percent, from a median sales price of $222,750 in 2010 to $418,300 in 2020. Over this time, Auburn has seen somewhat lower median home sales price growth than nearby cities (see Figure 30), and the median sales price in Auburn did not overtake that of another city in the 2010-2020 time period. Page 65 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 26 Figure 30. Median Home Sales Price Growth, South King County Cities & Tacoma, 2015-2020 Source: Zillow 2010, 2013, and 2020 Home Sales Price Data Area Median Sales Price 2010 (or 2013 *) Median Sales Price 2020 Percent Change Auburn $222,750 $418,300 88% (10 years) Burien* $233,450 $470,300 101% (7 years) Federal Way $211,600 $414,700 96% (10 years) Kent $237,750 $447,500 88% (10 years) Renton $269,950 $516,800 91% (10 years) Tukwila* $182,500 $412,000 126% (7 years) Key Market Data Findings Overall, Auburn’s housing market is characterized by strong growth in both the homeownership and multifamily rental markets. These trends are important to consider as the City works to encourage development to reach the 10,429 units needed by 2040. Key findings include the following: § Multifamily rents in Auburn increased 47 percent from $1.14 per square foot in 2010 to $1.68 in 2020 Q3. Auburn did not see a dip in rents in 2011-2013 like many of its peer cities. In addition, thus far through 2020, multifamily rents are continuing to grow in Auburn, approaching levels in Kent and Tukwila which have started to level off. § Auburn’s rental vacancy rates are low, indicating continued demand for housing. Multifamily vacancy rates in Auburn increased by 2.7 percentage points from 8.3 percent in 2008 to 11.0 percent in 2020 Q3, spurred by the recent Copper Gate affordable apartment complex, which added 500 units to Auburn’s housing market in late 2020. Although this increase in vacancy is reflected by an influx of new multifamily units that have yet to be rented, the mostly positive net absorption in the City over 2008 to 2019 indicates demand for multifamily housing is strong. § About 60 percent of the new units developed in Auburn between 2010 and 2018 are for homeownership, while only about 40 percent are intended as rentals. These ownership trends, coupled with strong price growth, indicate strength in the market. § Auburn has not been producing enough housing to meet its demand from household formation (net in-migration and people forming new households, such as moving out of a family home). Over the 2010-2019 time period, only 7.8 housing units (of all types and sizes) were constructed for every 10 new households that formed. This translates into housing underproduction, and is a contributor to Auburn’s rent and price increases. Page 66 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 27 4) Housing Planning and Policy Evaluation As demonstrated in the Housing Needs Analysis in Part 2, Auburn, like other cities in the region, has grown over the years and this has led to increasing housing affordability challenges. The lack of affordable housing is a common problem for many cities across the Puget Sound region and a complex issue without an easy solution. Each policy, strategy and tool are unique in its support and delivery of different levels of housing affordability; consequently, communities benefit from developing a comprehensive toolkit with a variety of different solutions designed to meet each community’s unique housing needs. Recognizing the guidance offered by relevant state, regional, county, and city plans within Auburn’s planning context helps to set the stage for housing actions and policy development. This summary of existing plans and policies is divided into two sections: the first describes the “planning pyramid” and the associated roles of the Growth Management Act, PSRC, and King and Pierce Countywide Policies as it relates to comprehensive planning at the local level (the City of Auburn is located in both counties). The next section provides a summary of Auburn’s existing policies key to promoting housing goals. The Planning Pyramid The “planning pyramid” in Figure 31 below illustrates how the planning scale is broader and less detailed at the top tiers of plans while at the bottom of the pyramid, the scale tends to be smaller and the regulatory detail more extensive and specific. While this Housing Action Plan and its associated implementation steps will be less binding than the other types of planning documents listed in the pyramid, as a subject-focused plan, its detail sits between a jurisdiction’s Comprehensive Plan and its Development Regulations (such as zoning codes). Growth Management Act At the top of the pyramid is the role of the state. The Washington State Legislature adopted the Growth Management Act (GMA, adopted in 1990, as amended) to plan for population and employment growth by establishing urban growth areas and critical/natural resource areas to avoid impacting. The GMA requires cities and counties to develop Comprehensive Plans to coordinate urban growth and this plan should include a Housing Element (RCW 36.70A.070(2)). Essentially, a Housing Element provides goals and policies for promoting the preservation and improvement, and to provide for the development of housing and the identification of adequate land for all housing needs. A jurisdiction’s Housing Element must include adequate provisions for existing and projected housing needs of all the economic segments of the community and these needs should be identified through an inventory and analysis of existing and projected housing needs. Based on the analysis, strategies should be developed to meet the housing needs and their performance should be measured to allow for continual adjustment to meet evolving housing needs. In addition, the Washington State Growth Management Act requires that zoning regulations and districts be consistent with Comprehensive Plans. Page 67 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 28 Figure 31. The Growth Management “Planning Pyramid” Source: ECONorthwest PSRC Housing Planning Documents At the regional level, PSRC has established multi-county housing policies in VISION 2050. The cities and unincorporated areas within King, Kitsap, Pierce, and Snohomish Counties are part of the Puget Sound region and thus, are subject to VISION 2050 (adopted in 2020). VISION 2050 encourages local jurisdictions to adopt best practices and innovative techniques to advance the delivery of affordable, healthy, and safe housing for all the region’s residents and includes guidance on growth. The newly adopted plan expects that by 2050 an additional 1.8 million people will move to the region and that this population will be older, more diverse, and living in smaller households than today’s regional population. The plan emphasizes advancing housing choices, homeownership opportunities, and affordability particularly for lower income housing and calls for cities to support the building of more diverse housing types, especially near transit, services, and jobs. A new aspect of this plan is the recognition of displacement risk (cultural, economic, and physical) and the need for jurisdictions to mitigate and minimize displacement. PSRC expects to update the new housing, job, and population targets by 2021 and after release, cities will need to recalibrate their capacity to accommodate this expected growth. Countywide Planning Documents The King County Countywide Planning Policies (CPPs, amended June, 2016) advises cities in King County to consider strategies to address affordable housing needs of all economic and demographic groups, as well as strategies that can help overcome housing affordability barriers HAP Page 68 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 29 (policy H-7).16 The King County CPPs in the Housing Chapter emphasize that cities should share in the responsibility of increasing the supply of housing affordable to households earning less than 80% AMI (policy H-1), noting that housing for households earning less than 30% AMI can be the most challenging to develop – often requiring interjurisdictional cooperation and support from public agencies (policy H-2). Policy H-3 outlines the housing inventory and existing and projected housing needs analysis requirements (mandated by statewide Growth Management Act policies) for each local jurisdiction’s Comprehensive Plan Housing Element. The remaining policies describe a range of strategies for meeting diverse housing needs. Examples of these CPP strategies are listed below: § Within designated Urban Growth Areas, include sufficient zoning capacity to accommodate the development requirements for a range of housing types and densities in a way that supports attainment of overall housing targets (policy H-4), § Preserve, maintain, and rehabilitate the existing housing stock including affordable housing to ensure housing conditions are safe and livable (policies H-6, H-11), § Adopt incentive programs to encourage the development of low-income housing, § Adopt strategies, regulations, and goals promoting housing diversity, affordability, and supply (diversity in tenure, affordability, types, sizes, and accommodations for special needs, universal design, sustainable development, policy H-5), § Plan for neighborhoods supporting the health and well-being of residents (policy H-12), § Plan for housing (particularly for middle-income households or lower) with reasonable access to employment centers (policy H-9) and in coordination with transit, bicycle, and pedestrian plans and investments (policy H-10), and § Promote fair housing to help meet the diverse needs of residents with a range of abilities, ages, races, ethnicities, incomes, and characteristics (policy H-13). A small southern section of the City of Auburn is located in Pierce County and as such, the area is subject to the Pierce County Countywide Planning Policies. Pierce County’s CPPs (amended in 2018) offer similar guidance as King County particularly in adequately providing housing affordable to all economic segments of the city population along with sufficiently providing housing for special needs. In addition, Pierce County promotes innovative housing techniques to promote higher-density affordable housing, the use of funding opportunities and incentives to subsidize affordable housing development, and inclusionary zoning techniques. In the CPPs, Pierce County also requires that jurisdictions set a goal to satisfy at a minimum, 25% of the growth allocation, through affordable housing (defined as earning up to 80% of the county AMI). Pierce County’s 2006-2031 Housing Growth Target for Auburn, designated a core city, is 3,634 net new housing units by 2030 (Table 1, Exhibit A to Ordinance No. 2017-24s, Growth Targets 2008-2030, by Vision 2040 Regional Geography). 16 Source: King County Countywide Planning Policies. (2012, Amended June, 2016). Page 69 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 30 Local Planning Documents At the bottom of the “planning pyramid” sits local planning documents and policies, but their location at the bottom belies their importance. This section steps through the most relevant housing focused planning documents and highlights the goals and policies that are most important to the Auburn Housing Action Plan. Over the course of the past several decades and with annexations in the late 1990s and early 2000s, Auburn has grown from a small town to a mature city of regional significance. Auburn has varied assets to build upon including many parks and trails, a solid business core and an ideal location along the Sound Transit commuter line. City of Auburn Comprehensive Plan The City of Auburn Comprehensive Plan (referred to as Imagine Auburn, amended in 2015, first adopted in 1986) meets the regional responsibilities to manage urban growth for current and future residents between 2015 to 2035.17 This plan establishes a framework from which to identify specific programmatic actions for affordable housing. Among the eight primary plan elements, policy guidance within the Housing Element (Volume 2) was reviewed. Auburn’s Comprehensive Plan lays out a roadmap for navigating its 20-year horizon by articulating a vision and corresponding core values, policies to achieve the vision and actions to promote the core values. Auburn’s vision was based on seven value statements associated with character, wellness, service, economy, celebration, environment, and sustainability. Downtown Auburn, designated as an urban center, has become the thriving heart of the community and is poised for continued revitalization. The Housing Element themes provided below summarize guidance useful for the development of housing action strategies. Comprehensive Plan Housing Element Themes Essentially, the housing focused vision for Auburn is to gain attainable housing in a variety of styles meeting the needs of all ages, abilities, cultures, and incomes and establish safe and attractive neighborhoods. Managing the evolving housing needs of Auburn’s communities is guided by a set of seven goal-oriented themes that are summarized below. Along with this summary, an assessment of progress in achieving Comprehensive Plan goals/policies is provided for each theme along with an evaluation discussion to consider for 17 The Auburn Comprehensive Plan should be updated every eight years, by around 2024, as outlined in the periodic update schedule, mandated by the Growth Management Act. King and Pierce County jurisdictions must complete a review and evaluation of their “Buildable Lands Program” at least one year before the comprehensive plan update to provide data that will be used for the comprehensive plan update, per RCW 36.70A.215(2)(b). Auburn’s 2035 vision is to be an exciting, vibrant city attracting businesses, residents, and visitors and “a city of connected and cherished places, from a vibrant downtown to quiet open spaces and everything in between, where a community of healthy, diverse, and engaged people live, work, visit, and thrive.” Page 70 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 31 future action. The City of Auburn faces growth pressures and various challenges and opportunities as it relates to housing development, some of which are newly emerging. This makes it important to continually review current conditions and progress towards achieving planning goals. As the City continues to grow and mature, creative approaches might be needed to accommodate growth and support diverse community needs. Figure 32. Auburn Housing Element Themes, Summary and Evaluation Source: ECONorthwest Analysis of Auburn Comprehensive Plan Housing Element 1) Healthy Homes and Neighborhoods This theme focuses on enhancing the safety and connections in Auburn’s neighborhoods along with improving the streetscapes. This theme also recognizes the need to provide housing for Auburn’s workforce to help balance the jobs-housing ratio. This theme also includes a policy objective to provide for housing choices in downtown and other designated mixed-use centers where infrastructure is more available or can be improved with regional and local funds. Evaluation Discussion: The jobs-to-housing ratio is another metric for describing the availability of housing for local workers. King County uses the jobs-to-housing assessment to improve the jobs/housing balance within the county, and as a factor in determining the allocation of residential and employment growth for different jurisdictions. Auburn too recognizes the need to balance jobs to housing as a way to ensure the attainment of an appropriate supply and mix of housing and affordability levels to meet the needs of people who work and desire to live in the City. Auburn’s jobs to housing ratio is slightly tilted towards jobs. In 2019, Auburn’s had around 1.5 jobs for each housing unit in the City. This metric is limited in not accounting for the number of wage-earners and is not necessarily fully reflective of true housing demand. However, it can generally be used to guide the planning of development to achieve efficient transit networks. An employment to housing ratio in the range of 0.75 to 1.5 is considered beneficial for reducing vehicle miles traveled (Cox, 2020). The ratio has slightly lowered overall in the last two decades as Auburn transitions from a suburban town to a thriving city offering broader housing options. Housing production should continue alongside job growth. Auburn has been effective in encouraging a variety of multifamily housing and infill development in its downtown area which could be partially attributed to Multifamily Tax Exemption (MFTE) incentives targeted for this area. As noted in the MFTE program review below approximately 680 market rate units were created or rehabilitated since 2003. The City has made progress in providing for more housing choices in the Downtown area; however other mixed-use areas with sufficient infrastructure in place or capable of improvement should be reviewed to determine whether housing variety has improved, particularly in terms of providing a range of housing at different price points. 2) Variety This theme calls for the City to broaden housing options. Objective H-10 notes the need to integrate a variety of land uses and densities for housing providers while other objectives support homeownership opportunities; mixed-uses integrating residential uses in the downtown area; ADUs as an affordable housing strategy; and manufactured, transitional, and multifamily housing in limited zones. Evaluation Discussion: Achieving a healthy mix of housing requires boosting housing production to broaden housing choices where supplies are limited, in a way that aligns with housing demand considerations. This goal promotes King County’s Regional Affordable Housing Task Force Goal 6 which supports greater housing growth and diversity to achieve a variety of housing types at a range of affordability and to improve the jobs/housing connections throughout King County. The majority of duplexes, triplexes and quad-plex housing in Auburn was built prior to the 2000’s (comprising 16% of the total housing stock) Page 71 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 32 and since 2010 single-family attached housing production has declined for this type of housing. About 23% of Auburn’s housing stock is characterized as multifamily, the majority of which was build pre- 1960, and in the 1990s and 2000s. Production of larger multifamily housing with over 100 units has picked up during the last decade since 2010. Auburn should continue supporting production of single- family attached and multifamily housing construction to continue integrating a variety of housing options. By 2025, the number of seniors in King County will double to comprise 23 percent of the population. Likely trends for the Baby Boomer generation: Household sizes will decrease (greater 1- person households) and demand could grow for missing middle-housing options allowing for “downsizing” and lower-maintenance living. Rising housing prices are increasingly making homeownership more out of reach. Over the last decade, housing prices have increased by 88%; consequently, more action could be needed to increase the availability of moderate and middle-income housing such as cottages, condominiums, and townhomes. Recent legislation passed reform to the state’s condominium liability law in support condo production. The implications of this new law should be monitored to see if it truly encourages more condo construction and associated homeownership. Auburn has adopted code updates over the last decade to support increased Accessory Dwelling Unit (ADU) production. The pace of ADU development has increased but is still somewhat low. The City should continue to track ADU development as time progresses and possibly revisit and augment actions promoting ADU affordable housing strategies. 3) Quality This theme aims to improve the quality and maintenance of the housing stock to help preserve affordable housing. Key objectives for this theme are to track rundown properties and improve code enforcement, educate property managers, and promote improvements of affordable housing possibly through possible tax exemptions. Objective H-21 includes specific steps to carry out home repairs and rehabilitation such as through loans, participation in the Emergency Home Repair Program, and green lending for improved energy efficiency. These home repair efforts can help preserve naturally occurring affordable housing (NOAH) units. Objective H-22f calls for the consideration of creating an Auburn- based Housing Authority. Evaluation Discussion: Affordable housing preservation strategies can range from increasing investments to preserve affordable properties to repairing homes to help keep people in affordable housing. The City could collect key data on rental housing to build a rental housing preservation inventory (including key information such as the age of housing, rental rates, number of bedrooms, conditions such as the CoStar housing condition star rating). The King County Housing Repair Program: Eligible low-income homeowners can gain a deferred loan or matching funds loan (up to $25,000) to cover housing repairs addressing health and safety concerns; and emergency grants covering life-threatening repairs for owner-occupied homes (up to $6,000). For renters with a disability, they also provide free financial assistance to make housing more accessible. Between 2018 and the second quarter of 2020, 17 applicants totaling approximately $320,135 from the City of Auburn participated in this program. Source: King County Housing Repair Program. This program does not necessarily provide weatherization home repairs or energy efficiency audits. A local energy-efficient, weatherization and rehabilitation grant program could help improve the livability and energy efficiency of existing owner-occupied homes. This program should complement the existing King County Housing Repair program. The Washington State Department of Commerce administers a Weatherization Program to help increase home energy efficiency for low-income families. This program is funding by the U.S. Department of Energy’s Weatherization Program among other sources: Page 72 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 33 https://www.commerce.wa.gov/growing-the-economy/energy/weatherization-and-energy- efficiency/weatherization-program-documents/ 4) Attainability This theme addresses the need for affordable housing to accommodate Auburn’s changing demographics and to meet the fair share housing objectives, outlined by King and Pierce Counties. Objective H-24a outlines King County’s share of housing by income levels: • Below 30% AMI (very low income) – 12% of total, • 30-50% AMI (low income) – 12% of total, and • 50-80% AMI (moderate income) – 16% of total housing supply. The city also aspires to lead and find new funding strategies to build more low-income housing. Other objectives include using surplus land (sales) for affordable housing, promoting fair housing laws, streamlining development regulations, and exploring the use of density bonuses. Evaluation Discussion: The housing growth targets should align with the adopted King County countywide targets that are being developed for the 2024 Comprehensive Plan update cycle and expected to be adopted by mid- 2021 (PSRC VISION 2050, King County, 2020). These housing production and income level targets for 2024 to 2044 could be adopted in mid 2021. In general, Auburn will likely need to increase annual housing production to help increase housing availability. As of 2020, Auburn has around 2,850 manufactured/mobile homes which is around 9% of the total housing stock. This type of naturally occurring affordable housing tends to be accessible to low to moderate-income households (earning less than 80% AMI). Consequently, housing preservation strategies could be considered such as mobile home park preservation, repair (see above discussion under theme 3), monitoring strategy, and assistance in establishing Mobile Home Parks into cooperatives. 5) Special Needs These policies call for the City’s support of programs that offer funding, housing, and supportive services to keep persons with special needs housed. These populations include veterans, single-parent households, seniors, disabled households, and those experiencing homelessness. Assisting low- income persons displaced by redevelopment in accordance with relevant laws is also recognized under this theme. Other policies support seniors aging in place (encouraging development to adhere to universal design principles) and the availability of transitional housing and assisted living facilities. Evaluation Discussion: The existing conditions analysis highlighted gradation of displacement risk across the city and this information could inform affordable housing preservation and anti-displacement measures. The City likely will be updating its comprehensive plan by June 2024 and during this update process, the plan policies will be reviewed to ensure they are consistent with state, regional, and countywide policies. A new aspect of PSRC’s VISION 2050 plan is the recognition of displacement risk (cultural, economic, and physical) and the need for jurisdictions to mitigate and minimize displacement. Consequently, the City of Auburn should consider anti-displacement policy and code updates. 6) Supportive Services This theme focuses on providing education, training, engagement opportunities, and human services associated with affordable housing and homeownership. Evaluation Discussion: Page 73 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 34 There are a range of options in support of education and engagement associated with affordable housing and homeownership. Here are a few education examples: Education on tenant rights, fair housing laws, and homebuyer’s class/credit counseling training. 7) Partnership and Monitoring This theme supports a variety of partnerships to collectively work on challenging topics such as homelessness, affordable housing financing, and housing assistance. Policy H-50 calls for Auburn to evaluate possible modifications to these housing policies and strategies every five years. Evaluation Discussion: The City of Auburn has joined a regional affordable housing consortium in partnership with various other south King County cities (Burien, Covington, Des Moines, Federal Way, Kent, Normandy Park, Renton, and Tukwila) and King County. The South King Housing and Homelessness Partners (SKHHP) was recently formed through an interlocal agreement to share resources to preserve and increase access to affordable housing. Effective in 2019, the interlocal agreement outlines the role, purpose, structure, and other details of SKHHP. Essentially, SKHHP will share technical information and resources to promote sound housing policy, coordinate public resources to attract greater private and public investment, and support advocacy. SKHHP has the potential to help the City of Auburn in a variety of ways including possibly expanding housing assistance, facilitating greater partnerships, and increasing the availability of affordable housing. A list of Housing Element outcomes, indicators, and example tools that are useful for monitoring progress is provided below (Auburn Comprehensive Plan, 2015). Revisiting the progress (or lack thereof) towards achieving outcomes can help to lay the groundwork for potential areas of improvement. Page 74 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 35 Figure 33. Auburn Comprehensive Plan Housing Element Goal Outcomes and Indicators Source: Auburn Comprehensive Plan Housing Element Page 75 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 36 South King County Subregional Housing Action Framework As noted, this report builds off the existing conditions work that was developed through the South King County Subregional Housing Action Framework. The City of Auburn participated in this regional effort, along with the cities of Burien, Federal Way, Kent, Renton, and Tukwila. As part of the South King County Subregional Housing Action Framework, the following affordable housing regulations and incentives were evaluated: Multifamily Tax Exemptions (MFTE), Incentives for Accessory Dwelling Units (ADUs), Fee Waivers, Density and Height Bonuses, and Planned Action Environmental Impact Statements.18 Figure 34 below builds on Evermost Consulting’s evaluation of these five affordable housing incentive programs in the South King County Subregional Housing Action Framework, and assesses Auburn’s success and possible areas of improvement. 18 This analysis of past planning policies was conducted by Evermost Consulting as part of the ECONorthwest consulting team on the South King County Subregional Housing Action Framework. Page 76 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 37 Figure 34. Evaluation of Key Existing Affordable Housing Incentive Programs in Auburn Source: ECONorthwest building on Evermost Consulting, 2020, data provided by City of Auburn Policy How it Works Auburn Findings Evaluation Multifamily Tax Exemptions (MFTE) RCW chapter 84.14, allows cities with more than 15,000 people to establish a multifamily tax exemption program for 8-years or 12-years if the housing development includes 20% of its units as affordable housing. By waiving taxes, housing developments have lower operating costs, which affects the project’s overall feasibility by making it easier to build new units. Programs can exempt eligible new construction or rehabilitated housing and the housing development must be located in an urban center and include at least four housing units. Auburn established its program in 2003 and has had four contracts take advantage of the tax waiver to date. These properties created or rehabilitated 680 units under the 8-year exemption. The MFTE incentive is available only for new construction or for the rehabilitation of multifamily housing located in the Downtown Urban Center. Tax exemptions are available for 8 years for new multi- family or rehabilitated housing units constructed downtown (market-rate) or for 12 years for qualified affordable housing units (Auburn City Code 3.94). The 8-year exemption does not require affordable housing units. At the time when this program was adopted, the Downtown Center area targeted for the program was lacking market rate housing. Unsurprisingly, this program has not yet generated affordable housing and the program has resulted in an average of 40 units created/ rehabilitated per year for 17 years. Accessory Dwelling Units Accessory dwelling units (ADUs) provide an additional dwelling unit— typically with its own sleeping, bathing, and cooking facilities—on properties with existing single-family homes. ADU policies attempt to increase housing density in ways that do not change the character, look, and feel of existing neighborhoods, and put more housing in areas with access to amenities such as jobs, schools, and retail centers. In theory, because they are smaller than single-family homes, ADUs can be cheaper housing options – but this is not always the case. According to data provided by the city, Auburn has issued 36 building permits for ADUs since 2005. It is important to note that this summary does not encompass unpermitted ADUs (an estimate for Seattle indicated that up to three-quarters of what appeared to be ADUs was unpermitted). In Auburn, ADUs are permitted outright in all residential zones that allow single-family homes. The homeowner must successfully gain an ADU building permit. One attached ADU or detached ADU is allowed on a parcel and each ADU is limited to no more than two bedrooms. The style of the ADU should match the primary residence and cannot exceed 50 percent of the primary unit or 950 square feet, whichever is less. Until recently, the City of Auburn was requiring ADUs to pay school and traffic impact fees along with utility system development charges, which could have contributed to lower development. Since removing this requirement a few years ago, the pace of ADU development has increased but is still somewhat low. Auburn’s Zoning Code has a fair amount of flexibility for ADU construction and density. The size, parking, and owner- occupancy requirements are somewhat restrictive but are not too burdensome. Possible areas of improvement to consider: pre-approved ADU/DADU plans to streamline the process (Renton and Seattle example), ADU guidebook (Tacoma example), removal of owner- Page 77 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 38 Policy How it Works Auburn Findings Evaluation One additional parking space beyond what is required for the single-family home must be provided for the ADU. The home or ADU must be the principal place of residence for the homeowner. (Source: Auburn Code Section 18.31.120, last amended in 2012 by Ord. 6419 § 4). occupancy requirement in exchange for affordability (below 80% AMI), and opportunities to reduce fees and allow shared/off-street parking. ADU permitting requirements and ADU development scenarios could be analyzed for the accumulative effect of layered requirements (including site coverage) to identify possible areas to add more flexibility. In terms of providing housing options, there is a level of uncertainty as to whether these units are actually rented long-term versus short-term or used for off-market purposes such as for family guests, if their rents are lower than other units, and the extent that ADUs are provided in amenity-rich locations. The City could address short-term rental use of ADUs by evaluating regulatory options to limit potential conversions of ADUs serving as long-term rentals (RCW 64.37 provides new Short-term Rentals legislature to consider). Fee Waivers The list of potential fees when entitling a new building often includes, but is not limited to, zoning application fees, mitigation fees, building permit fees, plan check review fees, utility connection charges, building inspection fees, and impact fees. While these fees are important funding sources for their respective municipal departments and special districts, they can add up and Auburn had established several fee waiver incentives. The City has fee waivers for the Downtown Catalyst and Downtown Plan Areas which were implemented in 2001 (more detail in Auburn Code Section 19.04). These fee waivers have all expired and the last exemption for the Downtown Catalyst area was extended through Ordinance No. 6637 was scheduled to The reinstatement of select fee waivers, even over a temporary period of time, could be considered when city revenue sources are plentiful to target underproduced housing and the construction of more affordable housing. Relaxing fees can help incentivize affordable housing development in the City. While careful calibration is needed to ensure the public benefit of reduced Page 78 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 39 Policy How it Works Auburn Findings Evaluation effectively discourage new housing development–particularly at lower price points. Fee waivers for affordable housing development or other qualified development projects. sunset on December 31, 2017. 19 These fee waivers have been utilized in conjunction with MFTE. fees is offset by the lost revenue to the City, these programs can meaningfully reduce the cost of development and help incentivize lower-cost housing. Expedited Permitting Some cities such as Kirkland, Lacey and Vancouver offer streamlined review or expedited permitting processes for qualified development projects. The state of Washington Local Project Review law (RCW 36.70B) supports the establishment of a predictable and timely review process by setting time limits on application review and permit decisions and a maximum time period of 120 days unless the jurisdictions makes written findings that additional time is needed. Auburn could define criteria for qualification of expediting permitting to include things such as rent or price restricted affordable housing, projects that utilize the 12-year MFTE program, for targeted development types such as infill development or podium development, or for development projects in specific areas such as the Downtown area. Concurrent review of preliminary plat and civil plans is being explored by Auburn (with the applicant assuming the risk). The Master Builders Association (2020) estimates that this could save up to a year on the permit process.20 (See incentives described in the next row.) Outside of this, Auburn does not have an expedited permit review process for affordable housing or qualified development. A common area of continuous improvement for many cities is to adjust the permitting processes to be more predictable, efficient, accessible, and transparent. Possible areas of improvement to make the process more predictable particularly for affordable housing development could be identified and examined for trade-offs. A pilot program can be implemented as a way to test out different techniques and work out process tweaks. A key area of improvement is to examine ways to reduce upfront fees and requirement barriers such as the possibility of review process efficiencies and/or integrating payment deferment options. Other measures to consider: Additional online permitting and tracking improvements to reduce trips to the permit counter, cross-departmental coordination enhancements, ameliorating design review 19 “Downtown catalyst accessory area” means the area defined by the boundary of 1st Street NW to the south, “A” Street NW to the west, 2nd Street NW to the north, and North Division Street to the east (Auburn Code Section 19.04.020 Definitions, GG: https://auburn.municipal.codes/ACC/19.04.020). 20 Master Builders Association of King and Snohomish Counties Housing Toolkit, 2020: https://www.mbaks.com/docs/default-source/documents/advocacy/issue- briefs/mbaks-housing-toolkit-2020.pdf Page 79 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 40 Policy How it Works Auburn Findings Evaluation Safeguards could be added to expedited permitting measures such as including negotiated deadlines for the applicant and permitting staff to each meet, respectively. requirements, and enhanced staff training. The following cities enacted permitting efficiencies: Kirkland and Tacoma. Density and Height Bonuses Most cities offer some manner of incentives or bonuses in exchange for additional exactions on the developer; these incentives can often result in better design or substantially advancing public interest while making the project more profitable for the developer. Policies are often put in place when a jurisdiction wants to encourage a type of development that the market is not delivering (for a variety of reasons), so the jurisdiction makes it easier, less costly, or more profitable to build the desired type of project. In the City of Auburn, development standard bonus incentives may be awarded to residential developers in exchange for recognized public benefits pursuant to Chapter 18.25 (infill development) or 18.49 ACC (flexible development alternatives). Eligible infill development (section ACC 18.25.020 provides more guidance) can gain density increases by up to 10 percent, increased building height by up to five feet, reduced/alternative setbacks, and a 10 percent reduction in the minimum on-site parking when designed to be shared (Code Section 18.25.040). The flexible development alternative (adopted in 2009) allocates incentives for residential and mixed-use development with features/ benefits such as sustainability, urban design, neighborhood safety features, housing, cultural/ historical, transportation/mobility, and open space/recreational features and benefits (Code Section 18.49). The incentives range from expedited review (90 days or less), density bonus (135 to 150 percent above base zoning), and reduced parking by up to 25 percent. These incentives are high along with the The overall effectiveness of these policies in spurring housing development is yet to be seen. Additional analysis on the types and uses of these incentives is an area of further study. Other opportunities for incentives should be identified to help encourage affordable housing development in the City. The City should consider developing policy incentives that are easy-to- understand with low complexity. Many local jurisdictions are also offering incentives to encourage green building such as Tacoma, Everett, and Kirkland. Page 80 of 111 Auburn Housing Action Plan – Existing Conditions – Revised Draft ECONorthwest 41 Policy How it Works Auburn Findings Evaluation policy complexity for applicant participation. Planned Action Environmental Impact Statements Under the Washington State Environmental Policy Act (SEPA), a planned action—such as rezoning, development agreement, subarea plan, etc.—can pre-analyze the predicted impacts of a certain level of development. Jurisdictions may implement these policies to encourage development by allowing projects to avoid costly SEPA analyses, by increasing certainty around mitigation requirements, and by avoiding lengthy delays due to SEPA challenges. According to data provided by the City in spring 2020, Auburn has planned action coverage for 708 residential dwelling units in planned action environmental impact statements, thereby helping to reduce the cost of development (SEPA analysis), and increase both the certainty and speed of development. While this coverage may expedite review and increase certainty of development, Auburn staff –along with most of the South King County Cities – noted that few SEPA challenges were filed so the benefits of this program (reducing the cost of development by avoiding a SEPA analysis) are limited. It is unclear how many units have been developed under this program, and if it has truly helped to incentivize market rate or affordable housing. Page 81 of 111 Auburn Housing Action Plan – DRAFT Existing Conditions ECONorthwest 42 5) Methodology, Data Sources, and Assumptions A) Housing Needs Analysis Data Sources To conduct this existing conditions assessment we primarily relied on 2019 data from the Washington Office of Financial Management (OFM) to evaluate housing and demographic trends. Where OFM data was unavailable we relied on the U.S. Census Bureau’s Public Use Micro Sample (PUMS) data from 2012 through 2018 and the U.S. Census Bureau’s 2012-2016 Comprehensive Housing Affordability Strategy (CHAS) Data. To supplement OFM data on housing trends and existing housing types by size, we supplemented this analysis with King County Assessor data. For housing market data on rents and sales prices we relied on data from the King County Assessor and CoStar. For the housing demand analysis we relied on Puget Sound Regional Council’s 2040 population forecast for Auburn. We used the best available data sources to assess the housing inventory and future needs, analyze employment trends, and analyze demographic trends in Auburn. Because Auburn has more than 65,000 people, it is surveyed in the American Community Survey every year and thus has data in 1-year samples. The most recent survey data is for 2018. To get more granular data on key variables of interest, we also rely on PUMS data. As noted in footnote 7 on page 6, PUMS data are only available at the PUMA geography, which contain about 100,000 people. The Auburn PUMA includes the City of Auburn and Lakeland. Housing Needs Analysis Methodology Future Housing Needs We estimate Auburn’s future housing needs based on the forecasted household growth through 2040 from PSRC. PSRC does not forecast housing units, but instead forecasts the estimated number of households. To calculate Auburn’s future housing need, we use a target ratio of developing 1.14 housing units per new household. This ratio is the national average of housing units to households in 2019. It is important to use a ratio greater than 1:1 since healthy housing markets allow for vacancy, demolition, second/vacation homes, and broad absorption trends. Use of the national ratio is a reasonable target, particularly for larger areas and regions. Using this ratio suggests that at a minimum, jurisdiction should be hitting the national average and is preferred as the existing regional ratio may capture existing issues in the housing market (such as existing housing shortages). Total Units Needed by Income The next step is to allocate the needed units by income level. We first look at the most recent distribution of households by income level (using PUMS to determine area median income or “AMI”) in Auburn and the South King County subregion. This distribution is displayed for the South King County subregion and King County as a whole in Figure 35, below. We then account for current and future household sizes at the city level to better understand nuances of Page 82 of 111 Auburn Housing Action Plan – DRAFT Existing Conditions ECONorthwest 43 how housing need by income can shift over time as household sizes change and subsequent changes to housing affordability. Because forecasting incomes at the household level over time can be challenging at best, and misleading at worst, this data evaluates housing need using current income distributions forecast forward. The forecast housing need by income category at both the city level and at the subregion is likely to vary depending on policy choices made over the next 20 years. That is to say that if cities choose to take less action on increasing housing production, and affordability worsens due to demand outpacing supply, the forecast need for lower income households is likely to be less because those low income households that are most at risk from housing price changes are more likely to be displaced from the subregion. The ultimate income distribution in 2040 will be the result of regional housing trends and policy decisions made at the local level. Figure 35. Household Income Distribution in Auburn, South King County Subregion, and King County Source: ECONorthwest analysis of 2018 Census 1-year PUMS data AMI Level Auburn South King County King County 0-30% of AMI 17% 18% 18% 31-50% of AMI 16% 16% 15% 51-80% of AMI 25% 23% 16% 81% of AMI 11% 12% 11% 100%+ of AMI 30% 31% 40% 17%16% 25% 11% 30% 18% 16% 23% 12% 31% 18% 15%16% 11% 40% 0% 10% 20% 30% 40% 50% 0-30% of AMI 31-50% of AMI 51-80% of AMI 81-100% of AMI 100%+ of AMI Auburn South King County King County Page 83 of 111 Auburn Housing Action Plan – DRAFT Existing Conditions ECONorthwest 44 We then apply Auburn’s distribution of households by income (right column) to the total units needed to get the share of new units needed by income level. Figure 36. Total Units Needed by 2040 by Area Median Income Distribution in Auburn and South King County Source: ECONorthwest analysis of 2018 Census 1-year PUMS data AMI Level Auburn Total Units Needed by 2040 South King County Total Units Needed by 2040 0-30% of AMI 16% 1,669 18% 11,207 31-50% of AMI 10% 1,043 16% 10,288 51-80% of AMI 24% 2,503 23% 14,552 81-100% of AMI 12% 1,251 12% 7,603 100%+ AMI 38% 3,963 31% 19,440 TOTAL 100% 10,429 100% 63,090 As shown in Figure 36, the City has the highest need over the period for units that are affordable to households earning more than 100% of AMI, and the next greatest need for units affordable at the 51%-80% of AMI level. B) Employment Analysis An employment analysis and an analysis of trends in job growth by industry are requirements for local housing action plans. We developed city-level employment estimates by 2-digit North American Industry Classification System (NAICS) codes using a combination of the U.S. Census Bureau’s Longitudinal Employer-Household Dynamics (LEHD) Origin-Destination Employment Statistics (LODES) data, and PSRC’s Covered Employment Estimates. The employment estimates show the total number of Auburn residents working in different 2-digit NAICS industries, the change in employment in that industry since 2008, and the 2018 median wages for Auburn residents in that sector. Access to Employment We measured access to employment for both transit and auto use, using a preset limit of 45 minutes to generate isochrones (travel sheds). We used ESRI Services to create drive-time isochrones, simulating traffic conditions typical of 8:00AM, Wednesday. We created transit isochrones using OpenTripPlanner and the consolidated Puget Sound General Transit Feed Specification (GTFS) database that is created and maintained by Sound Transit. This GFTS database allows users to model possible transfers between the region’s multiple transit agencies. For each 2-digit NAICS industry, the data summarize the share of jobs across the four-county region that are accessible within a 45-minute transit or auto commute from Auburn. Transit Isochrones We created isochrones originating from every transit stop within the jurisdiction. Each transit stop was also weighted by the population within a half-mile distance (straight-line). These isochrones were then joined to LODES job points at the Census Block Level, and the total number of jobs by NAICS industry was calculated for each isochrone. The total number of jobs Page 84 of 111 Auburn Housing Action Plan – DRAFT Existing Conditions ECONorthwest 45 reachable by transit (and walking) within 45 minutes was calculated as the weighted mean number of jobs within the isochrones, using the transit-stop population as weights. Auto Isochrones For drive-time isochrones, we used a similar method as the transit isochrones. Instead of transit stops, however, we used block group centroids as the isochrone origin points, and the associated block group population estimates provided the weights with which we calculated the average number of jobs reachable by the “average resident.” Number of Jobs We derived the number of jobs by industry from PSRC’s Covered Employment Estimates for 2018 and 2008. PSRC provides job totals by city and NAICS 2-digit industry categories, but will censor an estimate if that number represents fewer than three reporting firms, or when a single employer accounts for more than 80 percent of jobs in an industry within a jurisdiction. In these instances, we have provided an internally calculated estimate of employment in that industry based on the uncensored totals for each industry. Average wages by industry were calculated using the 2018 5-yr ACS estimates at the city level. Caveats The auto isochrones may be overly optimistic in terms of traffic. Since we are limited in terms of other tools that even claim to model travel sheds with traffic congestion, there are few alternative options. Wage estimates by industry from ACS are not available for every industry, usually due to low numbers of survey samples. Many of these estimates, especially for industries with low numbers of workers, show relatively high margins of error and should be treated as rough approximations. C) Displacement Risk Analysis The displacement risk analysis on page 16 was modeled after PSRC’s Displacement Risk Mapping Tool. PSRC’s tool compiles 15 different demographic and socioeconomic datasets (using ACS 5-year tract-level data), standardizes and weights them equally, compiling them into a composite, three-tiered index score (“high”, “medium”, and “low”) for every tract in the four-county Puget Sound region. However, this tool is only available at the Census Tract level, which is not granular enough for this analysis. This analysis builds off the PSRC tool, using the following variables which were available at the Census Block Group level, to estimate displacement risk in Auburn. 1. Percent of population that is a race other than non-Hispanic White 2. Percent of households that speak a language other than English at home 3. Percent of population ≥25 who lack a bachelor’s degree 4. Percent of households that are renters 5. Percent of households paying >30% or more of their gross income on housing Page 85 of 111 Auburn Housing Action Plan – DRAFT Existing Conditions ECONorthwest 46 6. Per capita income In Figure 23 on page 18, the color palette of the map visualizes the six levels of displacement vulnerability based on how many variables were present in each block group. Page 86 of 111 AUBURN SOUTH KING COUNTY SUB-REGIONAL HOUSING ACTION PLAN FRAMEWORK 2020 Page 87 of 111 2 City of Auburn | South King County Sub-Regional Housing Action Plan Framework This document provides trends in demographic, employment, housing, and housing affordability along with housing projections for the City of Auburn. Auburn is a participant of the South King County Sub-regional cities who are coordinating a comprehensive Housing Action Plan Framework for South King County which includes the cities of: • Auburn • Burien • Federal Way • Kent • Renton • Tukwila Given that the participating communities are impacted by many common market trends and demands, cooperation is necessary to address these issues. Providing for the sub-regional coordination of Housing Action Plans through a common Framework will allow all the partners to address housing issues holistically and ensure housing-related burdens are not simply shifted around between cities. The sub-region differs from East King County and Seattle, where housing markets and income levels significantly skew the Area Median Income as it relates to how affordability is defined, and therefore how successful south King County cities are in providing affordable housing for their communities. A sub-regional framework that captures broad factors impacting housing choice, cost burden, and existing conditions of housing stock in South King County will set the stage to evaluate and incorporate appropriate policies, tools and incentives for increasing residential capacity. This document and analyses were produced by: Page 88 of 111 South King County Sub-Regional Housing Action Plan Framework | City of Auburn 3 Executive Summary › Auburn needs 10,429 new housing units by 2040 when its population is expected to reach more than 95,000 people (see page 7). › Auburn needs to produce about 521 units per year to reach this goal (pg. 7). This is a significant increase from the 390 units produced annually over the 2011-2019 timeframe (pg. 4). › In the 2010-2019 timeframe, Auburn only produced 7.8 housing units for every 10 new households that formed in the city. The majority of these new units were built at the end of this development cycle - in 2017, 2018 and 2019 (pg. 4). › Average 2-bedroom rents increased about 50% since 2010, and home prices increased 88% between 2010 and 2020 (pg. 6). › In 2018, 88% of renters and 80% of homeowners earning less than 30% of AMI were cost burdened, along with 71% of renters and 60% of homeowners earning between 30% and 50% of AMI (pg. 6). › Auburn appears to have received an influx of high-income renters living alone while the numbers of large households and lower- income households have declined (pg. 5). This corresponds to Auburn’s large increase in new multifamily units in recent years (pg. 4), which have trended smaller throughout the region. › As a result of these new households, the median renter household income grew by 46% between 2012 and 2018 while the median homeowner income only grew 17% (pg. 5), far below the rise in median home sales prices. › Still, Auburn’s renter households have much lower incomes than its homeowners. In 2018, 82% of renter households earned less than 80% of AMI compared to 44% of homeowners (pg. 5). › Auburn saw a decline in the number of households earning less than 50% of AMI between 2012 and 2018, while the number of households earning between 50% and 80% of AMI grew (pg. 5). › The majority of new households are small: Auburn saw a 21% increase in households, but only a 13% increase in population from 2012 to 2018. This included about 5,140 new 1-person households (pg. 5). › As a result of Auburn’s changing demographics, the bulk of the housing units needed by 2040 are needed at the 50%-80% AMI and over 100% AMI affordability ranges (pg. 7). Results and data are for City of Auburn inclusive of areas in King County and Pierce County. The 2018 HUD Area Median Income (AMI) for King County is $103,400 for a 4-person household. Data discussing “% AMI” are proportioned off of this median and are also for 4-person households. Page 89 of 111 4 City of Auburn | South King County Sub-Regional Housing Action Plan Framework Housing Trends Number of Units Built Per Year, 2011-2019 Source: OFM, 2019 Source: King County Assessor’s Office, 2020 Housing Units Built by Decade, 1960-2020 Decade % of Units Before 1960’s 11% 1960’s 15% 1970’s 9% 1980’s 14% 1990’s 20% 2000’s 18% 2010’s 12% 31,345 Number of total housing units in 2018 Source: OFM, 2019 3,511 Number of housing units built since 2011 Source: OFM, 2019 390 New housing units built on average every year since 2011 Source: OFM, 2019 7.8 New housing units per every 10 new households› Between 2010-2019 Source: OFM, 2019, ECONorthwest calculations Scale of Housing Built by Decade, 1960-2020 Source: King County Assessor’s Office, 2020 Page 90 of 111 South King County Sub-Regional Housing Action Plan Framework | City of Auburn 5 Change in Household Type, 2012 & 2018 Income Distribution by AMI, 2012 & 2018 Income Distribution by AMI and Tenure, 2018 2010 2018 Population 70,180 80,615 2012 2018 Households 36,191 43,665 2012 2018 Median Income $34,347 $50,250 2012 2018 Median Income $77,079 $90,186 Demographics Source: PUMS (2012, 2018) Source: PUMS (2012, 2018) Source: PUMS (2012, 2018) Source: PUMS (2012, 2018) Source: OFM, 2019 Source: PUMS (2012, 2018) Source: PUMS, 2018 15% Change in population › Between 2010 and 2018 21% Change in number of households› Between 2012 and 2018 46% Change in median renter household income› Between 2012 and 2018 17% Change in median owner household income› Between 2012 and 2018 Page 91 of 111 6 City of Auburn | South King County Sub-Regional Housing Action Plan Framework Cost Burdened› A household who pays more than 30% of their income on housing (inclusive of households with severe cost burdening). Severely Cost Burdened› A household who pays more than 50% of their income on housing. Cost Burdened and Severely Cost Burdened by Tenure, 2018 Housing Units Affordable by AMI and Tenure, 2018 2010 2020 Average Rent $934 $1,393 2010 2020 Median Sales Price $222,750 $418,300 Source: PUMS, 2018 Source: PUMS, 2018 Source: Costar Source: Zillow 49% Change in average rent for 2-bedroom apartment› Between 2010 and 2020 88% Change in median home sales price› Between 2010 and 2020 Housing Affordability 2,784 Number of income restricted units› Total units as of 2020 Source: ECONorthwest analysis of public affordable housing data Page 92 of 111 South King County Sub-Regional Housing Action Plan Framework | City of Auburn 7 Housing Need Forecast 95,461 Projected population by 2040 703 Average annual population growth projected through 2040 10,429 Projected number of units needed by 2040 521 Average number of new units needed per year through 2040 34% Increase in annual housing production to reach 2040 housing need target Housing Units Needed Through 2040 Housing Units Needed as a Share of Existing Stock Housing Units Needed by AMI, 2040 HUD Affordability Level by Housing Type, 2018 Underproduction Future Need Housing Need 2,361 8,068 10,429 Existing Units Housing Need % of Existing Units 31,345 10,429 33% AMI # of Units % of Units 0-30%1,669 16% 30-50%1,043 10% 50-80%2,503 24% 80-100% 1,251 12% 100%+3,963 38% AMI Studio 1-bed 2-bed 30%$542 $582 $698 50%$904 $970 $1,164 80%$1,448 $1,552 $1,862 100%$1,810 $1,938 $2,326 Source: OFM, 2019; PSRC, 2017; ECONorthwest Calculation Source: OFM, 2019; PSRC, 2017; ECONorthwest Calculation Source: OFM, 2019; PSRC, 2017; ECONorthwest Calculation Source: HUD, 2018 Source: PSRC, 2017 Source: PSRC, 2017, ECONorthwest calculations Source: OFM, 2019; PSRC, 2017; ECONorthwest Calculation Source: OFM, 2019; PSRC, 2017; ECONorthwest Calculation Source: ECONorthwest calculation Underproduction › Housing units needed to satisfy existing households today. Future Need › PSRC 2040 population forecast translated into housing units. Page 93 of 111 8 City of Auburn | South King County Sub-Regional Housing Action Plan Framework Employment Profile Source: PSRC, ECONorthwest Auburn Employment Numbers Regional Access to Employment Industry (2-digit NAICS Code)Employees (2018) # Change (2008-2018) % Change (2008-2018) Median Salary (2018) % Jobs by Auto % Jobs by Transit Agriculture, Forestry, Fishing and Hunting 38 25 192%$37,612 24%1% Mining, Quarrying, and Oil and Gas Extraction 0 -14 100%NA 52%4% Utilities 0 -21 -100%$110,841 22%1% Construction 4,091 848 26%$51,862 43%2% Manufacturing 8,764 136 2%$60,862 44%2% Wholesale Trade 4,308 943 28%$44,896 50%3% Retail Trade 5,091 -761 -13%$41,658 36%3% Transportation and Warehousing 2,983 1,034 53%$54,195 63%1% Information 548 13 2%$62,540 7%0% Finance and Insurance 824 440 115%$79,375 24%2% Real Estate and Rental and Leasing 604 252 72%$49,524 33%1% Professional, Scientific, and Technical Services 761 -4 -1%$66,150 14%1% Management of Companies and Enterprises 136 6 5%$60,938 27%1% Administrative and Support and Waste Management and Remediation services 1,672 566 51%$36,250 37%3% Educational Services 3,446 465 16%$56,393 35%3% Health Care and Social Assistance 4,925 2,033 70%$49,320 36%2% Arts, Entertainment, and Recreation 665 2 0%$44,708 35%2% Accommodation and Food Services 2,329 322 16%$32,451 36%2% Other Service 1,490 89 6%$36,831 33%2% Public Administration 3,314 -455 -12%$74,804 36%3% Page 94 of 111 South King County Sub-Regional Housing Action Plan Framework | City of Auburn 9 * Transit and drive time of 45 minutes, departing at 8:00 AM, midweek Source: PSRC, ECONorthwest Access to Employment* Employment Profile These city-level employment estimates by 2-digit NAICS codes were derived using a combination of the U.S. Census Bureau’s Longitudinal Employer-Household Dynamics (LEHD) Origin-Destination Employment Statistics (LODES) data, and Puget Sound Regional Council’s Covered Employment Estimates. These employment estimates show the total number of residents working in each 2-digit NAICS sector in that city, the change in employment in that sector in that city since 2008, and the 2018 median wages for the residents in that city in that sector. Transit and auto access to regional employment was derived using 45-minute travel sheds for each mode. We calculated the number of jobs available within these travel sheds in each 2-digit NAICS category for the four-county region (King, Pierce, Snohomish, and Kitsap). Page 95 of 111 AGENDA BILL APPROVAL FORM Agenda Subject: Election of Officers Date: January 21, 2021 Department: Community Development Attachments: No Attachments Av ailable Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: Background Summary: Rev iewed by Council Committees: Councilmember:Staff: Meeting Date:February 2, 2021 Item Number: Page 96 of 111 AGENDA BILL APPROVAL FORM Agenda Subject: Annual Review of Planning Commission Rules of Procedure Date: January 21, 2021 Department: Community Development Attachments: Planning Commision Election & Rules of Procedure Memo Draft Rules of Procedure 2021 Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: Background Summary: Rev iewed by Council Committees: Councilmember:Staff:Dixon Meeting Date:February 2, 2021 Item Number: Page 97 of 111 MEMORANDUM TO: Judi Roland, Chair, Planning Commission Vice-Chair / Roger Lee Planning Commission Members FROM: Jeff Dixon, Planning Services Manager DATE: January 14, 2021 RE: February 2, 2021 Planning Commission Agenda Topics: • Election of Officers • Annual Review of PC Rules of Procedure Distribution of Rules and Procedures The Planning Commission’s (PC) Rules of Procedure were last amended on March 3, 2020. Annually, the Planning Commission reviews the Planning Commission Rules of Procedure as a content reminder and to consider any modifications. Election of Officers for 2021 – Section III Pursuant to the Planning Commission’s adopted Rules of Procedure (provided as Attachment A), Subsection III.2 states that the Planning Commission shall elect officers at the first regular meeting of each calendar year, or as soon thereafter, as possible. Since the Planning Commission did not meet in January 2021, staff requests that before the close of the February 2nd meeting, officers should be elected for year 2021. The results of the election will take effect at the following meeting so that new appointees are prepared to serve in their new capacity. The term of office of each officer shall run until the subsequent election. Modifications to PC Rules of Procedures Staff Recommendation: Planning and Legal Dept. staff reviewed the latest adopted Rules of Procedure document and noted a minor addition that is recommended and that is attached and shown in strike-through (deletions) and underline (additions). This change on the last page includes amending the language in Section XIII to provide the Planning Commission the ability to suspend their Rules of Procedure in response to unusual Page 98 of 111 circumstances or to suspend the rules of procedure in response to unusual topics calling for a different process. An example of unusual circumstances includes the COVID-19 Pandemic and that in accordance with Governor Inslee's Emergency Proclamation 20-28 and Healthy Washington - Roadmap to Recovery plan, the City of Auburn is prohibited from holding in-person meetings at the present time. The location for public meetings will be virtual until the Governor of Washington State authorizes local governments to conduct in - person meetings and therefor the language in Section X, (Public Hearings), about person providing testimony to “step up to the podium . . .” to make their remarks and “filling out the speaker sign in sheet . . .” doesn’t apply in this virtual format of public meetings. The proposed change/addition is: XIII. AMENDMENT AND SUSPENDING THE RULES: The Rules of Procedure may be amended at any regular meeting of the Commission by a majority vote of the entire membership. The proposed amendment should be presented in writing at a preceding regular meeting. By a minimum five-member affirmative vote, the Commission may suspend the rules as authorized in Robert’s Rules of Order, except when such suspension would conflict with state law or city ordinance. If the Planning Commission has additional changes, these can be discussed, captured by staff, and then these changes can be presented in writing and provided at the next regular meeting as provided in Section XIII, Amendment. Attachment A – Planning Commission Rules of Procedure as amended March 3, 2020 & with staff recommended changes shown in strike-through (deletions) & underline (additions). Page 99 of 111 CITY OF AUBURN PLANNING COMMISSION RULES OF PROCEDURE ADOPTED NOVEMBER, 1983 REVISED NOVEMBER, 1988 UPDATED APRIL, 2000 REVISED FEBRUARY, 2007 REVISED APRIL 2, 2013 REVISED MARCH 8, 2016 REVISED May 2, 2017 REVISED February 6, 2018 REVISED , 2018 REVISED June 5, 2018 REVISED March 5, 2019 REVISED March 3, 2020 REVISED XX, 2021 Page 100 of 111 Page 2 PLANNING COMMISSION - RULES OF PROCEDURE TABLE OF CONTENTS SECTION SUBJECT PAGE I. NAME .............................................................. 4 II. MEETINGS................................................... 4-5 III. ELECTION OF OFFICERS ............................. 5 IV. CHAIR ............................................................. 5 V. SECRETARY .................................................. 6 VI. QUORUM ........................................................ 6 VII. ABSENCE OF MEMBERS .............................. 6 VIII. ACTIONS DEFINED ........................................ 7 IX. AGENDA ...................................................... 7-8 X. PUBLIC HEARING ..................................... 8-10 XI. CONDUCT .................................................... 11 XII. CONFLICT OF INTEREST ....................... 11-13 XIII. AMENDMENT ............................................... 13 Page 101 of 111 Page 3 CITY OF AUBURN PLANNING COMMISSION RULES OF PROCEDURE We, the members of the Planning Commission of the City of Auburn, do hereby adopt, publish, and declare the following Rules of Procedure: I. NAME: The official name of the City of Auburn advisory planning agency shall be "The City of Auburn Planning Commission." The membership and terms of office of the members of the Planning Commission shall be as provided in Chapter 2.45 of the Auburn City Code (ACC). II. MEETINGS: 1. All meetings will be held at the Auburn City Hall, Auburn, Washington , unless otherwise directed by the Secretary or Chair of the Planning Commission. 2. Regular meetings shall be held on the Tuesday following the first Monday of each month, and shall be open to the public. The meeting shall convene at 7:00 P.M. unless otherwise directed by the Secretary or the Chair. 3. If the first Monday of the month is a legal holiday, the regular meeting shall be held on the following Wednesday. If a regular meeting day (Tuesday) falls on a legal holiday or on the November General Election, the Commission will convene on the following Wednesday. 4. Special meetings of the Planning Commission may be called by the Chair. Special meetings of the Planning Commission may also be called by any three members of the Commission. A minimum notice of 24 hours shall be provided for special meetings in accordance with State law. 5. If no matters over which the Planning Commission has jurisdiction are pending upon its calendar, a meeting may be canceled at the notice of the Secretary or Chair provided at least 24 hours in advance. 6. Except as modified by these Rules of Procedure, Robert's Rules of Order, Newly Revised, most current version, shall govern the conduct of the meetings. Page 102 of 111 Page 4 7. Meetings of the Planning Commission shall be conducted in conformity with the requirements of the Washington State Open Public Meetings Act, Chapter 42.30 of the Revised Code of Washington (RCW). Executive sessions can only be held in accordance with the provisions of Section 42.30.110 RCW. 8. The Planning Commission may conduct business in closed session as allowed in conformity with Section 42.30.140 RCW. 9. An agenda shall be prepared in advance of every regular and special meeting of the Planning Commission. Meeting agendas and materials on items on an agenda for a regular meeting shall be provided to members of the Planning Commission not less than five (5) days in advance of the regular meeting. Meeting agendas and materials on items on an agenda for a special meeting shall be provided to members of the Planning Commission as promptly in advance of the meeting as can reasonably be accomplished. III. ELECTION OF OFFICERS: 1. The officers of the Commission shall consist of a Chair and Vice Chair elected from the appointed members of the Commission and such other officers as the Commission may, by the majority vote, approve and appoint. 2. The election of officers shall take place once each year at the Commission’s first regular meeting of each calendar year, or as soon thereafter as possible. The term of office of each officer shall run until the subsequent election. 3. If the Chair or Vice-Chair vacates their position mid-term, the Planning Commission will re-elect officers at their next scheduled meeting and as their first order of business. If it is the Chair position that has been vacated, the Vice-Chair will administer the election proceedings. IV. CHAIR: 1. The Chair shall preside over the meetings of the Commission and may exercise all the powers usually incident of the office. The Chair shall be considered as a member of the Commission and have the full right to have his/her own vote recorded in all deliberations of the Commission. Unless stated otherwise, the Chair's vote shall be considered to be affirmative for the motion. Page 103 of 111 Page 5 2. The Chair shall have power to create temporary committees of one or more members. Standing committees of the Commission shall be created at the direction of the Commission and appointed by the Chair. Standing or temporary committees may be charged with such duties, examinations, investigations and inquiries relative to one or more subjects of interest to the Commission. No standing or temporary committee shall have the power to commit the Commission to the endorsement of any plan or program without the approval at the regular or special meeting of the Commission. 3. The Vice Chair shall in the absence of the Chair, perform all the duties incumbent upon the Chair. 4. In the event of the absence of the Chair and Vice Chair, the senior member of the Commission present shall act as Chair for that meeting or may delegate the responsibility to another member. V. SECRETARY: The Community Development Director (“Director”), or his/her appointee, shall act as the Secretary for the Planning Commission and shall keep a record of all meetings of the Commission and its committees. These records shall be retained at the Community Development Department. All public hearings shall be electronically recorded verbatim and may be transcribed upon request of the Director, City Attorney, the majority of the Commission, or City Council. Transcriptions may be requested by other parties, in which case, the costs of transcription shall be borne by the requesting party. VI. QUORUM: A simple majority of the appointed members shall constitute a quorum for the transaction of business. A simple majority vote of the quorum present shall be sufficient to take action on the matters before the Commission; provided that if at any time during the meeting, a quorum is no longer present, the meeting may only continue for the time and duration necessary to fix a time for adjournment, adjourn, recess or take measures to obtain a quorum . VII. ABSENCE OF MEMBERS: Participation in Planning Commission responsibilities is essential; not only so that a quorum can be established, but to also ensure that discussions and decision making are as representative of the community as possible. Recurring absence also diminishes a member’s ability to vote on matters discussed during prior meetings. It is therefore important for all appointed members to participate to the maximum extent possible . If a member is Page 104 of 111 Page 6 unable to participate on a regular basis, it may be appropriate for a member to be replaced. This section of the rules is intended to provide standards that ensure that the regular absence of one member does not become disruptive to, or impede the work of, the full Commission. In the event of a member being absent for two (2) consecutive regular meetings, or being absent from 25% of the regular meetings during any calendar year, without being excused by the Chair, the Chair may request that the Mayor ask for his or her resignation. To be excused, members must inform the planning commission’s secretary in advance if they cannot attend a scheduled meeting. VIII. ACTIONS DEFINED: The rules of the Commission impose different requirements according to the type of action before the Commission. 1. Legislative actions are those which affect broad classes of people of the whole City. These actions include adopting, amending, or revising comprehensive, community, or neighborhood plans, or other land use planning documents or the adoption of area wide zoning ordinances or the adoption of a zoning ordinance amendment that is area wide in significance. 2. Quasi-judicial actions of the Planning Commission are those actions which determine the legal rights, duties, or privileges of specific parties in a hearing or other contested case proceeding. Quasi-judicial actions include actions that would otherwise be administrative or legislative if applied more widely or city-wide, rather than affecting one or a small number of persons or properties. Quasi-judicial actions do not include the legislative actions adopting, amending, or revising comprehensive, community, or neighborhood plans or other land use planning documents or the adoption of area-wide zoning ordinances or the adoption of a zoning amendment that is of general or area-wide significance. 3. Organizational actions are those actions related to the organization and operation of the Commission. Such actions include adoption of rules, directions to staff, approval of reports, election of officers, etc. IX. AGENDA: An agenda shall be prepared for each meeting consisting of the following order of business: 1. CALL TO ORDER a) Roll Call/Establishment of Quorum Page 105 of 111 Page 7 b) Pledge of Allegiance 2. Approval of Minutes 3. Public Hearings 4. Other Business Items as Appropriate 5. Community Development Report 6. Adjournment Additional items may be added to the agenda by the Planning Commission. The Chair shall have the discretion to amend the order of business. X. PUBLIC HEARINGS: The procedure for conducting all public hearings will be as follows: 1. Chair opens the public hearing and establishes whether the proponent, if applicable, is in attendance. 2. Staff Report. 3. Testimony of Proponent, if applicable. Persons addressing the Commission, who are not specifically scheduled on the agenda, will be requested to step up to the podium, give their name and address for the record, and limit their remarks to three (3) minutes, in addition to filling out the speaker sign in sheet available at the Secretary’s desk. All remarks will be addressed to the Commission as a whole. The Secretary shall serve as timekeeper. The Presiding Officer may make exceptions to the time restrictions of persons addressing the Commission when warranted, at the discretion of the Presiding Officer. 4. Chair calls for other testimony, either for or against. Testimony must be called for three times. The Chair shall have the discretion to set time limits on individual public testimony. 5. All testimony and comments by persons addressing the Commission shall be relevant and pertinent to issues before the Commission’s public hearing. The Chair shall have the discretion to rule on the relevance of individual public testimony. 6. Questions of staff or persons presenting testimony. Questions by Planning Commissioners that are intended for persons who have provided testimony shall be directed through the Chair. Questions to persons who have provided testimony shall be relevant to the testimony that was provided. 7. Chair closes public hearing. Page 106 of 111 Page 8 8. A public hearing may be reopened by motion duly seconded and approved by a majority vote to accept additional testimony. 9. Deliberation. 10. Voting: A. The Chair shall call for a vote. B. Any member, including the Chair, not voting or not voting in an audible voice shall be recorded as voting in the negative. C. The Chair or a Commission member may request that the Secretary take a roll call vote or a vote by show of hands. Also, to ensure an accurate record of voting, the Secretary may take either on his/her own initiative. D. A member may abstain from discussion and voting on a question because of a stated conflict of interest or appearance of fairness. If any member of the Planning Commission wishes to abstain, or has disclosed a conflict of interest and must abstain from a vote , that member shall so advise the Commission, shall remove and absent himself/herself from the deliberations, and considerations of the matter, and shall have no further participation in the matter. The member should make this determination prior to any discussion or participation on the subject matter or as soon thereafter as the member perceives a need to abstain. A member may confer with the City Attorney to determine if the member is required to abstain. If the intended abstention can be anticipated in advance, any conference with the City Attorney should occur prior to the meeting at which the subject matter would be coming before the Planning Commission. If that cannot be done, the member should advise the Chair that he/she has an "abstention question" that he/she wants to review with the City Attorney, in which case, the Chair shall call a brief recess for that purpose before proceeding further. E. If a tie vote exists, after recording the Chair's vote, the motion fails. However, a motion for denial that fails on a tie vote shall not be considered an approval. F. No member may participate in any decision if the member had not reviewed the staff reports and testimony presented at the Page 107 of 111 Page 9 hearing on the matter. Such member may, however, listen to the recording of the hearing in order to satisfy this requirement. 11. Continuing an Item: If the Commission wishes to continue a public hearing item, the Chair should open the public hearing, solicit testimony, and request a motion from the Commission to continue the public hearing item to a time, place, and date certain. If any matter is tabled or postponed without establishing a date, time, and place certain, the matter shall be scheduled for a hearing pursuant to Auburn City Code (ACC) Section 18.68.040 before the matter may be considered again. 12. Findings of Fact: The Commission should adopt findings of fact and conclusions for actions taken involving public hearing items. The findings and conclusions may be approved by any one of the following methods: A. The Commission may adopt in whole, in part, or with amendments, the written findings prepared by staff. Motions to approve the staff recommendations shall be deemed to incorporate such findings and conclusions unless otherwise indicated. Such findings and conclusions do not have to be read in order to be deemed a part of the record. B. The motion to take action may adopt oral finding of fact statements made by Commission members or staff during the hearing or deliberation. C. The motion to take an action may direct that additional written findings and conclusions be developed based on the hearing and deliberation of the Commission. D. Findings and conclusions may be approved or amended at any time by the Planning Commission, but all such actions shall be based on the record of the matter at hand. 13. Order of Hearings: Normally the order of hearings shall be as published in the agenda. However, the Chair in order to avoid unnecessary inconvenience to people wishing to testify, or the late arrival of a proponent, may change the order as may be necessary to facilitate the meeting. If the proponent does not appear at the public hearing, the Planning Commission may continue the public hearing until the next meeting in Page 108 of 111 Page 10 order to ensure adequate consideration of the proposal. However, in such case the Chair shall take whatever testimony that may be given before accepting a motion to continue pursuant to Section (8). XI. CONDUCT: 1. These rules are intended to promote an orderly system of holding public meetings and public hearings. 2. Any person who causes a disruption by making personal, impertinent or slanderous remarks or noises, by using speech intended to incite fear of violence, by failing to comply with the allotted time established for the individual speaker’s public comment, by yelling or screaming in a manner that prevents the Commission from conducting the meeting, or by other disruptive conduct while addressing the Commission at a public hearing may be barred from further participation by the Presiding Officer, unless permission to continue is granted by a majority vote of the Commission. 3. No comments shall be made from any other location other than the podium, lectern or table set up for people to address the Commission at a public hearing, unless approved in advance by the Chair, and anyone making irrelevant, distracting, or offensive comments or noises that are disruptive may be subject to removal from the meeting. 4. Demonstrations, disruptive applause, other disruptive behavior, or audience interruption during anyone’s presentation are prohibited. It is distracting to the Commission, the audience, and persons testifying. XII. CONFLICT OF INTEREST: 1. Any member of the Commission who in his or her opinion has an interest in any matter before the Commission that would tend to prejudice his or her actions shall publicly indicate, step down and leave the meeting room until the matter is disposed. A member need only be excused from legislative or organizational action if the potential conflict of interest is direct and substantial. A. No member of the Planning Commission may use his or her position to secure special privileges or exemptions for himself, herself, or others. B. No member of the Planning Commission may, directly or indirectly, give or receive or agree to receive any compensation, gift, reward, or gratuity from a source except the employing municipality, for a matter connected with or related to the Page 109 of 111 Page 11 officer's services as such an officer unless otherwise provided for by law. C. No member of the Planning Commission may accept employment or engage in business or professional activity that the officer might reasonably expect would require or induce him or her by reason of his or her official position to disclose confidential information acquired by reason of his or her official position. D. No member of the Planning Commission may disclose confidential information gained by reason of the officer's position, nor may the officer otherwise use such information for his or her personal gain or benefit. E. No member of the Planning Commission may take any action that is prohibited by Chapter 42.23 RCW or any other statutes identifying conflicts of interest. 2. Appearance of Fairness: Commission members shall strive to follow, in good faith, the Appearance of Fairness Doctrine as established under Washington State Law as it applies to quasi-judicial decisions (RCW 42.36) even for legislative actions before the Commission. The doctrine includes but is not limited to the following: A. Members shall avoid communicating in respect to any proposal with any interested parties, other than staff, outside of public hearings. Written communication from an interested party to a member may be permitted provided that such communication is made part of the record. B. Members shall avoid drawing conclusions regarding decisions until after the public hearing is closed. C. Members shall avoid participating in decisions which affect their or any family member's property, personal or business interest, or organization. D. Members shall avoid participating in decisions in which a preconceived bias or conclusion has been formed in the mind of the member prior to the hearing. E. If any concern relating to Items A through D- should arise, the affected member shall declare at the start of the public hearing on the matter, the extent of such concern and whether the Page 110 of 111 Page 12 member's decision has been influenced. If the member has been influenced, or if the extent of the concern is significant, the member shall be excused by the Chair from the meeting room and his vote recorded as an abstention. If, under these rules, a quorum would be excused from the meeting, the Chair in order to establish a quorum, shall under the rule of necessity, permit sufficient members (beginning with those who are least affe cted by these rules) to participate in the decision. These rules are intended to be consistent with RCW 42.36. In the case of any conflict, RCW 42.36 or applicable case law shall govern. XIII. AMENDMENT AND SUSPENDING THE RULES: The Rules of Procedure may be amended at any regular meeting of the Commission by a majority vote of the entire membership. The proposed amendment should be presented in writing at a preceding regular meeting. By a minimum five member affirmative vote, the Commission may suspend the rules as authorized in Robert’s Rules of Order, except when such suspension would conflict with state law or city ordinance. Page 111 of 111