2020/12/16 Council Agenda Packet

MASTER BUILDERS ASSOCIATION of King and Snohomish Counties 0 MBAKS.COM I OFFICE 425.451.7920 335 116TM AVENUE SE 1 BELLEVUE, WASHINGTON 98004 December 16, 2020 Everett City Council 2930 Wetmore Ave. Suite 9-A Everett, WA 98201 RE Traffic Mitigation Fees Dear Councilmembers, The Master Builders Association of King and Snohomish Counties takes pride in building communities Our members are professional homebuilders, architects, remodelers, trades people, planners and engineers, suppliers, manufacturers, and sales and marketing professionals in your community. We are committed to ensuring that all people can attain housing and have a safe and healthy place to call home. MBAKS is not opposed to builders and developers paying their "fair share" of fees associated with systematic improvements needed from development. However, we do encourage the council to make practical amendments to the traffic fee ordinance. For example, Snohomish County is also proposing traffic fee increases. The county's proposal provides for a phased -in approach to its fee increase over two years (50% the first year and 50% the next) to incrementally implement the increase. It also includes a later effective date (February 1, 2021) to allow developers who have already planned the feasibility of a potential project according to the current fees, to have time to vest under those fees. The addition of these changes would provide more predictability and feasibility for those looking to build homes in Everett. Our region is in a housing crisis and the housing market is price sensitive. Housing affordability is a challenge vital to Everett and its residents. Research from the National Association of Homebuilders (NAHB) estimates that total developer and builder costs increase by 137 percent of the impact fee. This is because payment of an impact fee typically occurs during development. An impact fee paid early in the production process has associated carrying costs and can substantially increase the costs builders and developers pay. This additional cost is typically passed through to the buyer. NAHB research also states that for every $1 increase in fees incurred, the final price of a new home to its final customer rises by $1.20. Alternatively, every $833 increase in fees imposed at the time of the building permit results in a $1,000 increase in house prices. Our region needs more housing and more types of housing at all income levels. We respectfully ask the council to consider the reasonable measures of a phased approach and a later effective date within Everett's proposed traffic mitigation fee increase. MBAKS looks forward to continued collaboration on housing actions, efforts, and challenges in Everett. Sincerely,