2013/10/16 Council Agenda Packet

Strategy 17: Leverage Market Value through Incentives for Affordability Incentives help achieve affordability in rental and ownership housing development, in both multi- family and single-family projects. Statute allows jurisdictions to create required or optional incentive zoning programs for affordable housing when additional development capacity is provided through .14 , zoning changes or density bonus programs, thereby ensuring that new development contributes to maintaining and expanding the supply of affordable units. Additionally, other voluntary incentives, such as multi-family tax exemption or fee waivers, may also be used to encourage affordable housing production and preservation.Although these incentive strategies were not a central component of the Growing Transit Communities Partnership work program,they are critical to the long-term success of these communities and should be a focus area for future work. Puget Sound Regional Council 17.1 Provide guidance and technical assistance to support adoption, where appropriate, of incentives for affordable housing in transit communities. Provide ongoing staff support to a broad stakeholder effort to further develop tools for the effective use of required and optional incentive programs tied to an increase in development capacity,through research,education,and state and local statutory changes. 17.2 Include in a regional station area plan implementation grant program the option of funding selected feasibility studies for local implementation of required and optional incentive programs for affordable housing. pLocal Governments 117.1 17.3 Conduct a feasibility study to evaluate the costs and benefits of potential land use actions and incentives. Based on the feasibility study, adopt regulations that leverage the provision of additional development capacity, such as density or height, to produce and preserve affordable housing units. There are a range of ways to implement such provisions that are sensitive to local conditions and markets. For example, requiring = affordability in all developments when increased development capacity is granted outright, or voluntary y provisions where additional development capacity is gained in exchange for providing affordable housing. E 17.4 In all transit communities planning for residential growth, adopt additional incentives for private developers to £ include affordable units in new residential projects. In determining the appropriate mix of incentives for each ucommunity, consider market conditions, housing needs, and existing regulations. Incentives that should be 47 considered for adoption in all transit communities include: CC • Reduced parking requirements for projects that include affordable units • Impact or permit fee waivers for projects that include affordable units • Use of multifamily tax exemption conditioned to provision of long-term affordability • Expedited permitting for projects that include affordable units Developers and Financiers 17.5 Contribute industry knowledge to the analysis and design of inclusionary and incentive tools by local jurisdictions. Priority Transit Communities for this Strategy • Required or optional incentive zoning programs can be effective in transit communities undergoing updates to plans or regulations which result in added development capacity, especially in transit communities where market strength for TOD is emerging or strong. Additionally, incentive zoning programs may be more appropriate at a larger scale than the half-mile station area. • Voluntary incentives can be effective in all transit communities where jurisdictions seek to attract residential growth to accompany existing or future high capacity transit service. 46 The Growing Transit Communities Strategy I Public Review Draft I May 2013