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HomeMy WebLinkAbout071122as01 1 JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST TO: Board of Commissioners Mark McCauley, County Administrator FROM: Brent A. Butler, AICP, Director of Community Development Josh D. Peters, AICP, Planning Manager DATE: July 11, 2022 RE: WORKSHOP on Long-Range Planning Projects with a focus on Housing Programs, Policies, and Plans STATEMENT OF ISSUE: The purpose of this agenda request is multi-fold. First, the Department of Community Development("DCD") would like to update the Board of County Commissioners ("BoCC") on long-range workplan progress prior to completion of several projects. The goal would be to reallocate human capital (staff) when available. Second, DCD would like to discuss the impact of local housing supply and demand on the department through a summary of local permit activity that impacts the availability of human capital. Third, the department would like to explore alternative options to advance the BoCC's desired workplan. DCD's human capital is limited to twenty-three staff who primarily respond to applications for permits to construct, repair, or remodel single family housing. As a result of both the complexity and number of permits, DCD began advising applicants in February 2022 that the turnaround for most permits increased to 8-10 weeks from 6-8 weeks. Redirecting long-range planning work items to current planners (i.e., planners who review development applications) without identifying and implementing continuous process improvement, commonly referenced to as LEAN, will further increase the current eight to ten-week turnaround time.Nonetheless, this option remains one among others available to the BoCC to increase the long-range planning output. In the past year, DCD has relied on outside consultants to augment staffing capacity or project delivery. This option remains the most viable option available to the BoCC if funding permits. ANALYSIS: The Washington Center for Real Estate Research's (WCRER) Washington Market Highlights: First Quarter 2022 illustrates that the housing inventory remains at an all-time low in Jefferson County. This encourages the development of unimproved land. Consequently, DCD continues to receive a large number of permits for new housing construction despite U.S. 2 Census data documenting that housing starts slowed in May, possibly as a result of material and mortgage interest rate increases, supply chain challenges, and inflation. Most significantly, as buyers seek unimproved land, DCD is seeing more permits on lands encumbered by critical areas such as steep slopes and wetlands. These are more labor intensive partly because they require intergovernmental collaboration that reduces time available for long-range planning. The shortage of housing available for rent or purchase argues for a robust and multifaceted approach to alleviate the supply shortages. Moreover, the appreciation of Jefferson County's median home value, which is now the fourth highest in Washington State after San Juan, King, and Snohomish counties, led to a doubling of median values by 2016, and potentially increased housing cost burden on both renters and homeowners. On a positive note, housing starts nationally reached a post-great recession peak in April 2022, which is slightly lower than the last housing boom's peak in April 2006. The next release of new residential construction data(housing starts) occurs July 19, 2022. Long-Range Planning Work Plan DCD's Interim Director Austin Watkins and Interim Planning Manager David Johnson discussed the department's long-range planning projects at a regular meeting of the BoCC on May 2021 (see Attachment 1 —Discussion of Community Development's FY2021-2022 Long- Range Work Program). The list of projects, while not exhaustive, includes many of the housing activities that the community identified as important. May 2021 - Project List Description Status 1) Affordable Housing/Community Development a. Port Hadlock/Irondale Urban Growth *Assigned to Planner Peterson Area Sub-Area Plan Overview: While this project initially sought to develop a sub-area plan analyzing current and future conditions to align development regulations (zoning) with implementation, DCD sees the opportunity to incorporate a range of housing incentives including tax exemptions in a new"missing middle" housing overlay. Currently, commercial zoning within the Port Hadlock Urban Growth Area(UGA) does not classify residential housing as a permitted use so the multifamily housing there will become nonconforming upon the transition to urban zoning. Additionally, the county provides no tax exemptions for farm/aqua-worker(RCW 82.08.02745), historic preservation(RCW 84.26.040), or multifamily housing(RCW 84.14), as authorized by state law. As envisioned, this overlay could include those exemptions authorized by state law, a new bonus density that increases as house size decreases, or alternatively require workforce housing in return for bonus densities. Should Jefferson County establish a housing overlay that makes "missing middle" housing a permitted use and provides for tax exemptions and enhanced bonus densities? 3 b. Affordable Housing Study and *Unassigned Implementation Strategies Overview: This project envisioned a holistic study to analyze potential DCD strategies and implementation actions to address affordable housing in the county. The study will analyze regulatory revisions, policy changes, incentives and innovative pilot programs as set forth below in items (i) to (iv). i. Unified Development Code *Assigned to Planner Peterson Revisions Overview: Planning staff identified the need for approximately 174 amendments to the Unified Development Code (UDC) that governs growth and development in Jefferson County. These amendments range from scrivener's errors to more substantial corrections some of which implement regulatory reform by improving the code's clarity with regards to condominiums, transitional/urban zoning, lot combinations, parking stall standards, and density bonus provisions for affordable housing on land owned by religious institutions. ii. Policy changes—code *Assigned DCD Director interpretations and building policies Overview: DCD has identified the need to provide greater clarity regarding the definition of habitable area for accessory dwelling unit so that applicants clearly understand how to measure the 1,250 square feet of gross floor area. Additionally, DCD should consider adoption of the 2018 International Residential Code (IRC) Appendix Q for Tiny Homes or some variation thereof. iii. Incentive programs *Unassigned Overview: Common incentives include density bonuses, expedited permitting, and fee waivers or reductions. Currently, Jefferson County has no policy in place to provide for fee waivers or reductions. Other governments such as the City of Bainbridge Island established a local Housing Trust Fund, which covers the costs for permits benefiting the poor and the infirm. So long as these funds go to those individuals identified as poor or infirm as outlined in the Washington State Constitution Article 8, Section 7, it shall not be considered a gift of public funds in violation of state law. iv. Voluntary/innovative programs *Assigned to DCD Director& Planning (stock plans) Commissioners Overview: Several projects are currently underway to develop stock plans. In 2022, the Planning Commission established a subcommittee consisting of Commissioners Coker, Sircely, and Alen to assist the DCD Director in the review of stock plans. As envisioned, the Planning Agency would identify accessible stock plans from the list online with the City of Seattle. See https://aduniverse-seattlecitygis.hub.arcgis.com/pages/gallery. Additionally, a standard operating procedure for stock plans was reviewed by the Planning Commission in June 2022. Second, the DCD Director has met with the Clallam County DCD Director with the goal of using their stock plans within Jefferson County later this year. Finally, the county is partnering with the City of Port Townsend and the Housing Solutions Network to develop locally produced plans. 4 c. Transient (Vacation) Housing Code *Unassigned Revisions Overview: While staff has not had the capacity to launch an effective analysis, Commissioners Dean and Eisenhour have identified critically relevant resources. Commissioner Eisenhour identified Chelan County Commissioner Bob Bugert as a resource, as he was instrumental in developing a tiered approach to regulating vacation rentals. Commissioner Dean has identified a way to measure the quantity of rentals within the county through a third party, Granicus. d. Development Regulations for *Assigned Planner Peterson Temporary Housing Facilities Overview: On June 13, 2022,the BoCC adopted an ordinance with development regulations for temporary housing facilities. Because June 13, 2022 was the last opportunity for the BoCC to act before the interim control expired, the adopted ordinance is going through additional review spearheaded by Commissioner Brotherton, who is meeting community partners to identify additional edits that are responsive to local needs. 2) Regulatory Reform a. Lot of Record Code Revisions *Assigned Planner Benjamin Overview: There are three review groups associated this project: 1) A Technical Advisory Team was formed consisting of the Assessor's Office, Central Services,the Prosecuting Attorney's Office, Environmental Public Health, and the Department of Community Development; 2) The Planning Commission elected to form a body of the whole to assist in this issue; and 3) Jefferson County Brokers and Agents meet regularly with staff. At this juncture, DCD has scheduled a workshop with the BoCC for the same day as this workshop to obtain additional direction regarding the Communications Plan. 3) State-Mandated Shoreline Master Program Periodic Update a. Shoreline Master Program Periodic *Assigned Planners Johnson, Uemura, and Review and Update Frostholm Overview: In November 2021, DCD submitted a draft Shoreline Master Program (SMP)to the Department of Ecology. On July 2022, the Department of Ecology reached out to the DCD to discuss their suggested edits to the SMP. Under the direction of Planning Manager Peters, a departmental policy review team consisting of Planners Johnson, Frostholm, Uemura, and Hunt are working together to complete the SMP update process through the Planning Commission and BoCC. 5 4) Existing Comprehensive Plan Docket a. Mineral Resource Land Overlay *Assigned Planner Peterson Designation Overview: This project extends the existing mineral overlay within the Wall Lake Extraction Area by approximately 200 acres. Because this overlay will cross Thorndyke Creek, which is a fish bearing steam of importance to the Tribes, the county must ensure that all impacts to the stream and groundwater are avoided. b. Green Burials Text Amendment *Assigned Planner Benjamin Overview: The applicant requested a UDC text amendment to allow green burials in designated Forest Land. DCD concluded that there were substantive barriers to allow regulatory changes that would permit cemeteries in Forest Lands via natural resource protection standards required by the Growth Management Act and the special relationship between Washington State and cemetery districts. The applicant has agreed to withdraw their UDC text amendment request and the department's work on the project has concluded. New Projects During the past year, several projects were discussed with the BoCC and subsequently considered for addition to DCD's workplan. These include the Fee Ordinance update, C- PACER program, and Permanent Supportive Housing Facilities. Fee Ordinance Update Jefferson County's existing fees excludes certain recoverable costs and fails to implement critically relevant 'best practices' to enable community members to clearly understand the cost for services. To improve transparency, DCD plans to move the fee schedule to an annual adopting resolution. Equally important, local governments often perform work in advance of payment. Sometimes this work far exceeds the fees collected to reimburse the county's costs. To reduce the county's exposure to loss, DCD proposes collecting a retainer for large projects; additionally, the fee schedule creates new entries for mitigation monitoring, as there are currently no fees in place and therefore mitigation monitoring is therefore simply not done after a certain period of time even though many of the shoreline permits require a vegetated buffer into perpetuity. C-PACER (Commercial Property Assessed Clean Energy and Resilience) - C-PACER allows property owners to access financing for qualifying energy efficiency, renewable energy, water conservation, and resiliency improvements for their buildings. The financing stays with the property, rather than with the building owner. The program requires an administrative manager, including the monitoring of ownership changes for liens. All model documents have been drafted by Shift Zero, a non-profit alliance funded in part by the 6 NW Energy Coalition(NWEC),whose membership is composed of for-profit organizations, nonprofit organizations, Indian tribal organizations, and local governments.Nonetheless, the Municipal Research& Services Center("MSRC")recommends that counties consider nine issues before adoption, including: 1)does it violate the prohibition in Article XIII, Sec. 7 of the Washington State Constitution against gifts of public funds; 2) what is the effect of this priority lien on liens for regulatory fees,prior non-property tax liens, etc.; 3) should the model assessment agreement be a two-party or three-party agreement including lender, property owner and the county; 4) How will the county determine who is responsible for allocating the model assessment among parties in the event of a subdivision, e.g., should the lender or the county be responsible; 5) how can an equity lens be incorporated in the model ordinance; 6) how does the county eliminate liability arising out of due process by acting in its official capacity; 7) should the indemnity agreement incorporate both the lender and the property owner; 8) since the notice portion of the `assignment of notice of assessment interest and lien and assignment of assessment agreement' has no legal effect, should the two documents be separated; 9) does the statute puts the lender in the shoes of the county for all of the functions outlined in RCW 86.64 or if some of them are non-delegable. Permanent Housing Facilities— The BoCC directed staff to investigate how best to create permanent housing facilities throughout the county. This project will enable a supportive housing provider to transition a temporary site to a permanent one. As it currently envisioned,the BoCC will have two options to approve the permitting of housing facilities on a permanent bases, which includes identifying them as either an essential public facility or a public purpose facility as set forth in the June 27, 2022 agenda request. Soon to be Completed Projects Several projects shall soon be removed from the May 2021 project list including: ld— Temporary Housing Facilities; 4b—Green Burials Text Amendment. What about other incentive programs such as tax exemptions for multifamily, historic buildings, or farmworker housing, and inclusionary zoning. Should DCD incorporate these in the above list of investigative areas for potential inclusion in UGA Overlay zone? FISCAL IMPACT: The above referenced projects require extensive community outreach and ongoing participation. Given limited number of Long-Range Planning staff, DCD senior management team is innovating by partnering broadly with other organizations and governments to implement the BoCC's direction. Given the numbers of persons participating in these projects across the County, it's estimated that 3 Full-Time Employees (FTE) are currently necessary to maintain the status quo,meaning keeping the projects moving ahead as outlined above. Any additional work relies exclusively upon the completion of an existing team member of the securing of additional funding. 7 RECOMMENDATION: After hearing public comment, DCD requests that the BoCC prioritize the projects listed above that will move directly to planners once the other workplan projects are completed. Additionally, DCD requests the BoCC to identify which, if any of the projects should benefit from the additional resources obtained through a request for proposals. REVIEWED BY: ifr/zz Mark McCaul , County Administrator Date 1 July 11, 2022Community Development DepartmentJosh D. Peters, AICP, Planning ManagerBrent Alfred Butler, AICP, Director Policies, and PlansFocus on Housing Programs, Range Planning Projects-Long 2 Agenda Alternative Options to Implement Workplan4)Summary of Housing Programs, Projects, and Plans3)Summary of Permit Activity2)Range Planning Workplan Update on Long1)economy, sound communities, and a healthy environment.""To preserve and enhance the quality of life in Jefferson County by promoting a vibrant Mission Statement Mission StatementRange Planning Workplan-Update on LongAgenda Item 1: Existing Comprehensive Plan Amendment Docket4)Mandated Updates-State3)Regulatory Reform2)Affordable Housing / Community Development1)Workplan Areas Outlined May 2021 economy, sound communities, and a healthy environment.""To preserve and enhance the quality of life in Jefferson County by promoting a vibrant 3 Mission StatementSummary of Permit ActivityAgenda Item 2: Jefferson County Permitting–Local Data 3)WCRER–Washington State Data 2)Housing Supply and Demand–U.S. Census –National Data 1)economy, sound communities, and a healthy environment.""To preserve and enhance the quality of life in Jefferson County by promoting a vibrant 4 Mission StatementNational–Summary of Permit Activity Agenda Item 2: Date: June 16, 2022; Next Release: July 19, 2022 National Data on Monthly New Residential Construction"To preserve and enhance the quality of life in Jefferson County by promoting a vibrant economy, sound communities, and a 5 6 Source: UW, Washington Center for Real Estate Research Washington State Summary of Permit Activity Agenda Item 2: 7 Jefferson County Summary of Permit Activity Agenda Item 2: 8 TOTALMobile HomesAccessory Dwelling UnitsSingle Family Homes six months compared st 1–Construction Jefferson County, Washington 20222021202020192018 1009080706050403020100 Jefferson County Summary of Permit Activity Agenda Item 2: Agenda Item 3: sewer developmentamendments, as need to coincide with Port Hadlock UGA zoning/code c)Green Burial Text Amendmentb)DesignationMineral Resource Land Overlay a)4) Existing Comprehensive Plan DocketProgram (SMP) UpdateMandated Shoreline Master -3) StateOther areas?b)Lot of Recorda)2) Regulatory Reform 9(Unhoused)Temporary Housing Facilities 4 6)Transient Housing Code Revisions5)(stock plans)Voluntary/Innovative Programs 4)Incentive Programs3)Policy Changes2)RevisionsUnified Development Code (UDC) 1)Study/Implementation StrategiesAffordable Housing and b)AreaPort Hadlock/Irondale Urban Growth a)DevelopmentAffordable Housing/Community 1)Summary of Programs, Projects, and Plans Agenda Item 3: UGA zoning/code amendmentsc)Green Burial Text Amendmentb)DesignationMineral Resource Land Overlay a)4) Existing Comprehensive Plan Docketa) Periodic Review and UpdateProgram3) State Mandated Shoreline Master Other areas?b)Lot of Recorda)2) Regulatory Reform 10(Unhoused)Temporary Housing Facilities 4 6)Transient Housing Code Revisions5)(stock plans)Voluntary/Innovative Programs 4)Incentive Programs3)Policy Changes2)RevisionsUnified Development Code 1)Study/Implementation StrategiesAffordable Housing and b)AreaPort Hadlock/Irondale Urban Growth a)DevelopmentAfforda ble Housing/Community 1)Programs, Projects and PlansHousingSummary of Fee Ordinance Update focus on new proposals, projects, or programsSummary of Housing Programs, Projects, and Plans with a Agenda Item 3: 11 Permanent Supportive Housing FacilitiesCommercial Property Assessed Clean Energy and Resilience 12 Prioritization Programs, and PlansHousing Projects, Existing Workplan 13(Free as of January 1, 2022)Customer Assistance Meetings b)Eight to ten weeks?Acceptable level of service standardsa)Current Planning•Is this correct?–Priority Number 1 Current Planning– Existing Workplan 14 State Environmental Policy Actd)Planning Areas, Commissioner Districts–Participatory Planning & Code Drafting c)Zoning Districts, Critical Areas, Shorelines–b)visualize density, FAQ, and Flowchart–Communications Plan a)Scope of Work•Statement of Problem•Subdivisions, Plats, Lots (Lot of Record), and Parcels–Definitions •Is this correct?–Priority Number 2 Lot of Record– 15 Options to reorient work to meet deficitd)Changes to Existing Workplanc)Review of Existing Workplanb)Overview of Efforts to Obtain Consultantsa)Management of Workload Priorities Issues 16 Climate Change Grant (NODC)11)SMP Implementation10)Development (LAMIRDs)Explore Limited Areas of More Intensive Rural 9)Building Code Updates8)Subdivision Code Updates7)dateUpFee Schedule 6)Migrate to EnerGov permit system5)Shoreline Master Program (SMP) Update4)Affordable HousingUDC Amendments / DCD Programs to Support 3)Port Hadlock UGA Implementation2)Update Countywide Planning Policies (CPPs)1)b) Review of Existing Workplan from 5/24/2021 QUESTIONS?17