Good evening everyone. We're going to call the January 22nd Planning Policy Commission meeting to order and it currently is right on the dot 6:30 p.m. Today's meeting is a hybrid meeting. The planning policy commission is in person, but staff or members of the public may be attending virtually or in person. Uh Kristen, do we have a quorum this evening? >> We do. And commissioners Zacharov and Patterson are excused. >> Okay. And we might see and I do see Commissioner Millinder Irwin. So, perfect timing. Okay. Give her a second to get settled and then we'll look at the minutes. All right. So, our first item of business this evening is to take action to approve the minutes for the January 8th, 2026 PPC meeting. Um, commissioners, and there any corrections to the draft minutes that were provided in your agenda packet? Hearing none. Seeing none, uh, those minutes are approved. We're going to move on right now to public comment. And tonight we're actually holding a public hearing. So, we're going to have two opportunities to speak. Right now, we just ask for uh those who would wish to speak speak in general terms, speak uh for the good of the order. Um, but if you actually are here to speak on the adoption of this year's amendments, you'll want to wait till we get to the public hearing. Has anyone signed up to speak this evening? >> I do have two um people that have signed up. I'm not sure if they are for the general public comments or um the public comments. >> Sure. Um I guess I'm looking and do we have any virtual speakers? >> We do not. >> Okay. So to those of you in the audience, are you here to speak generally or for the public hearing? I'm not sure who signed up. Oh, fair enough. That check-in sheet gets everybody. Okay. So, no general comments, specific ones for the public hearing. Perfect. Okay. All right. Um, then we're going to skip over the public comment guidelines for the moment so we can move on and we are going to begin that public hearing. This is our first item of regular business and we are holding a hearing regarding the docket of proposed comprehensive plan amendments. The purpose of this public hearing is to provide a formal opportunity for the public to comment on that docket. We'll open the public hearing which will be followed by a presentation from staff and then the PPC will have an opportunity to ask follow-up questions. After that, we'll take public testimony, close the public hearing, and then the planning policy commission will deliberate and make a recommendation on this item. Kate Kaney, our principal planner, will be presenting tonight. So, Kate, when you are ready, please go ahead. Okay. Apologies for the delay. Everything set up here. Okay. Um, thank you. Um, and good evening. My name is Kate Kaney and I am here to provide an overview of the proposed 2026 docket of comprehensive plan amendment. I will also discuss a little bit about the amendment process. So, we are here not only to uh have the public hearing on the 2026 docket of proposals, but also to provide an opportunity for the commission to deliberate and uh provide their recommendation on proposals to forward to council. Uh tonight is not uh for the commissioners. It's not about approving items on the docket. It's about uh forwarding a recommendation for council to establish the proposals on the final docket which will receive further analysis and consideration through an amendment process in the next in throughout this this year. So in terms of a little background um both the state and the city have requirements for amending the comprehensive plan. The state requires cities to establish a process so that the comprehensive plan can be open to the public and that changes can be made. Those changes are limited to one time a year. Amendments just once a year. Um the amendment process is sometimes called a docket process. Docket meaning list, reviewing the list of proposals. Um the city in the city's code um also establishes procedures and criteria for amending the comprehensive plan. The criteria is established for private the evaluation of privately initiated amendments and as discussed with the commissioners at their last meeting um there were no proposals received from uh private individuals or groups this year. So all of the proposed amendments are um initiated by the city. Um the code also um establishes uh procedures for how the docket will be reviewed um at this preliminary phase, how council will establish a final docket uh and it moves through the amendment process after that. So tonight um I will give an overview of the five city initiated proposals. Uh I will go through in the next slides each proposal one by one. Starting with this first amendment. Um this uh proposal uh has two goals really. Um and they both have to do with the land use designations that are in the comprehensive plan. So what is a land use designation? Um you can see on the screen uh the the brightly colored squares those are from the legend um of that comprehensive plan map that you see to the right. The land use designations and there are nine in Isiqua identify the type of development and land use that's allowed in certain areas and the comprehensive plan map that you see um illustrates where those land use designations allow those certain uses. So the the goals of this proposal are to um add descriptions full descriptions of the land use designations and also to add information that identifies um the land use designations and how they are implemented by specific zones um from the zoning map and from the land use um code. So whoops, sorry about that. um that table. Uh this is that second part uh of the amendment uh that lists those nine land use designations and their comparable zones. And the reason that this is important is to make sure that there's consistency between the type of land uses allowed through land use designations in the comprehensive plan and the types of zones and zoning that are in the zoning code. State law requires that development regulations implement the comprehensive plan. So this helps us increase consistency between those two things. Okay. Now uh the second amendment um also has to do with land use designations and zones. This proposal actually was on the docket in 2025 last year, but there were not enough staff resources to fully address and implement uh this amendment. So, the goal here is to clarify the names of the lowdensity and multifamily land use and zoning designations to ensure compliance with the state's middle housing requirements and also to clarify their role and their capabilities. Um what you can see in the table to the right is low density residential is one of the designations. That designation also allows middle housing uses but you don't see low to moderate or that kind of name change. So staff will be evaluating name changes uh for both the land designations and the zones to clarify the capabilities of both designations. Okay. So proposal number three um this proposal would um update uh the uh the goals and the plan actually would update uh the policies for Isiqua's regional growth center. So just uh to give folks an idea of where the growth center is. If you look at the map to the right, you can see the you can see Isiqua with the black boundary. And in that central area in the purple, that is the boundary identified in the central Isiqua plan for the central Isiqua neighborhood. Within that neighborhood, that green um shaded area is the city's designated regional growth center. And that growth center was designated by the Puet Sound Regional Council in 2015. That designation um is part of a uh larger system of regional growth centers across the region and with it are some requirements from Puget Sound Regional Council um that have been changed the last few years. And what this proposal is going to do is to address some of the the changes in the in the new plan or policy framework for the regional growth center from Puget Sound Regional Council. Um this is kind of a limited update of things. It's really to um align the uh information on our regional growth center with the population, job and housing targets from the 2024 major update of Isiqua's comprehensive plan. Um and uh address any other issues that arise from uh our evaluation of the the new Puget Sound Regional Council goals for regional growth centers. Okay. So, the fourth proposal is an update related to the 2024 park system plan update. Um, that update uh changed some of the names uh for things like the name of this plan. Uh the park system plan uh it changed the name of the green necklace concept for open space and trails that was in just that isqua central plan. Now the creeks to peaks concept is a citywide concept and so there will be some kind of uh administrative work to change the names and make sure the nomenclature uh works across plans. Um there's also an issue uh that is being looked at by park staff regarding level of service for parks facilities. Uh currently it's very quantitative approach and uh the parks department is moving into a more qualitative approach. So we will be doing some learning and analyzing on that as uh we work with park staff on those amendments. Okay. The last proposal, amendment number five, um is really a placeholder uh for potential amendments that may arise from the work on the Isiqua climate action plan update that is taking place this year. So, we are working closely with the city sustainability manager on um that process and this uh set of potential amendments is available in case uh anything arises from that plan update that might lead to a policy change in the comprehensive plan. So, that was an overview of the five proposals um in the 2026 docket. Now I'm just going to talk through uh some process uh for this docket itself. Um tonight's public hearing also the recommendation from the commissioners uh is what it will be happening tonight. February 3rd is scheduled for the council committee. The planning development and environment committees review and recommendation. And then on February 23rd the uh proposals and recommendations will go to the full council for action. And what council will be doing is acting on a resolution to establish the final docket of proposals that will then be uh taken through an amendment process. And this slide outlines what that amendment process looks like. So after the final docket has been established, staff will go back and analyze uh different things as necessary and draft the full amendments uh related to each of those five proposals that I just went through. Um it will uh start uh immediately after we hear from council and go through uh this summer um August September uh uh probably um I am new here so I imagine that's when the process uh will come to a head with full drafts from um staff and then we will come back to the public and to the commission on this review process. Also a public hearing will be held. There will be another uh planning, development and environment committee review and then city council adoption by the end of 2026. Uh this is very important um because again uh cities can only uh amend their comprehensive plans once a year. So um some slides that we shared with the commission uh in advance of their deliberation at the last meeting um are included in this deck. considerations uh before you make your recommendation. Are the amendments uh proposed? Uh are there any that are not relevant or necessary? Um should refinements uh be made to the end of any of the amendments presented? Um recommendation uh from the commission can add, amend or delete the proposals. So, one last reminder, uh the uh goal today is not a recommendation on full amendments, but on the docket items that you want to forward for further consideration as part of the final docket that council will establish. So, I believe uh yes, that was it for my presentation. >> All right. Well, thank you, Kate. So, right now again, we're going to open this up for the commissioners for clarifying questions. Um, we'll have a opportunity to type to deliberate and debate the merits again, but right now before the public, we want to just make sure we get all their questions out there. So, when they make their public presentation, if they choose to, they will have all the same information that we have. So, again, right now, clarifying questions. Are there any Commissioner Malberu. >> Yes, Commissioner Voice. Last time I looked at the zoning the the city's zoning maps, I noticed that the that a uh table that is common in other urban areas, a table that talks about the various uses within each zone and for the commercial properties that was not a part of the isiqua uh comprehensive plan. That was not a part of the isiqua's system. for for knowing what goes where. Maybe it was fixed. I don't know. Maybe it is a part of the whatever this thing is we're looking at. But if it's not, it would seem that Isiqua should make sure that whatever it does that there's a formula so you can figure out what uses could go within what zones. >> Isiqua does have one. It's in our land use code. That's where that's where that's where all cities put them as into their land use or zoning codes. >> Okay. It was reintroduced then because it was I know it was missing for a period. >> No, it's it's it's always been in the land use code. >> Yes. >> The table. >> Yes. >> Okay. >> All right. Thank you. >> And it Sorry, just to clarify what what may have been confusing is that there was a table in the comprehensive plan that had land use designations and the zones that implemented them. That's what we're replacing as part of that first proposal. So maybe the maybe that was confusing. >> All right. Thank you, Commissioner Molber. Any other questions? >> Okay. Again, this is pretty technical stuff. The whole idea is to get this off the ground so once it's approved, then it does come back to PBC and we can deliberate on merits and other things like that. All right. Um, we're going to open the public hearing and it is currently 6:48 p.m. We're going to ask uh staff, has anyone signed up to speak? >> No, they haven't. >> Okay. So, no one online >> and there is no one online. >> Okay. Now, since we have a few people in the audience this evening, would anyone like to speak? Okay, seeing none, we're close the public hearing at 6:48 p.m. So, there is formal action that's requested on this agenda item. So, before we can even begin to talk about it, discuss it, we will need a member of the commission to make a motion. Uh, Commissioner. Yeah, Commissioner Kra, please. >> I make a motion to approve the docket as presented today. >> Is there a second? >> Commissioner, >> a second. >> Thank you, Commissioner Oler. Okay. So, the motion to recommend approval of the docket of proposed comprehensive planned amendments as presented. Now, we can have some time for discussion if there is any. And we should probably start with the person who made the motion, >> Commissioner Grass, if you'd like. >> Um, I think it's pretty straightforward and we went through this in our last meeting, so I I'm I feel comfortable having the staff move forward with what they present. >> Great. Thank you, Commissioner Crafts. >> Would anyone else like to speak? >> All right. So, to sum it up, again, this is basically uh just a process. This is part of it. Again, the idea we're not actually deliberating about the merits of this. This is giving the permission to for it to move forward for council to uh review it. Ultimately, if it does get okayed by council, then it does become staff work which eventually does come back to the PPC. So again, this is just a formal process that is undertaken. Um, all right. So, because there is a motion on the floor, we'll just repeat it one more time. Uh, this motion is to approve the approval of the docket of proposed comprehensive plan amendments as presented. All in favor, please say I. >> I. >> I. So, that was unanimous. Great. Thank you, commissioners. Um, we are going to move along and the next item of regular business is we're going to have a housing 101 session. It's probably why everybody's here. This should be a lot of fun introduction to how uh the city looks at planning and things like this. So, Kristen Leon, our planning manager, and Mike Stanganger, a senior planner with the regional coalition housing will be presenting on this topic. Kristen, when you are ready, please go ahead. >> Good evening. I'm Kristen Leon, planning manager with the city of Isiqua. And yes, it's a it's a housing 101. Uh we anticipate this year that there will be several discussions and potentially many amendments regarding housing and bringing more housing development into the city. And so in order to have informed discussions when those come to you, we needed to make sure that you all understand what's behind it all and what's what's involved in housing in this area. So first of all, um topics tonight we're going to talk about what is affordable housing, who needs it, why are we this involved in it, what is the state and regional planning context and where do we fit in? and then the arch arch a regional coalition for housing and is our relationship and the roles that we play in housing. Before we get started, most of this tonight is going to be focused on affordable housing, but we need to recognize that it's not just about affordable housing. Everybody needs a housing that they can afford. So, you run the continuum. The city, we have our planning department. We work on the policies and the regulations and the programs and we work with Arch who helps us do all of this and to monitor and so forth and we permit those developments that come in. We also have our human services element of this and they work with homeless and underserved populations to help them find places to live to help them find services that they need. And then we also have our economic development group who monitors our investment program that we have that we call IHIP and they and other funding that we have to work with developers to bring developers into the city to see what we can do to get housing. So that is all a part of what we like to call our housing continuum in the city. So what is affordable housing? And I'm going to let Mike take over for a while. So this is Mike Stanganger. Um I will jump back in in a bit and Feel free to raise your hands and ask questions along the way because I will settle in. Um, this is gonna it's going to be a long discussion so feel free to ask questions along the way. >> Hi and good evening. Um, again my name is Mike Stanger. I'm a a longtime planner with a regional coalition for housing. um helped city staff and uh city council on a number of uh issues over the years and um I'm glad to be back with you and um orienting you toward this work. This I will say upfront that there this is a lot of information. And I know you probably already feel, you know, the fire hose effect. And so I'll echo what Kristen said about feeling very comfortable to ask questions. Um, even if we don't get through everything tonight or you still have questions, we're happy to come back as often as you need to or or help as much as as we can. Usually when um I give presentations of this nature, the most common the first question out of people's mouths is what do we mean by affordable housing? And so I think there's really two ways that we uh commonly think of it. the more general um uh definition to it and the one that's standardized in state, local, and federal programs is to think of what any given household can afford for a given home. So if there if you're spending more than 30% of your income on housing and expenses directly related to the home then uh the government considers that to be too much then then you would be housing cost burdened. And so we we think a home is affordable if uh to uh households who can spend less than 30% to live there, but is unaffordable if they uh have to spend more than their than that to live there. And so affordability really depends on the cost of the home that you're talking about and the h the income of the household. But there's a second definition that uh depending on the context that uh you may consider you may hear used in a different way which is that u it's used to refer specifically to housing that is cost controlled meaning the there's a limit on the rent or the uh purchase price of the home and it's reserved for people of certain income levels and uh so that there's a wide range of these things. Some of them are are we're all familiar with the um public housing, but there are other types of subsidized housing. There are there's affordable housing uh that is privately owned, but has uh formal agreements on it to keep it um cost controlled. And so, and we'll get into those later. So in some contexts if I or Chris talk about the number of affordable housing units we may be talking about the ones that are cost controlled with a formal agreement. But in other context, if we're showing you data, for example, from the uh that shows that includes market rate prices, we may be talking about that uh the cost of those homes relative to um a household income. So, um, I hope I didn't make that more confusing, but um, it this leads us into a term that may you may have heard called AMI or area median income. And so, it's a standard for comparing the housing costs and household incomes. As I was mentioning, the median, of course, is where whatever you're counting, half of them are below that number and half are above. So in this context the median income is one is where half of the households earn less and half earn more. Um and that is a number that we use to um not only to measure the affordability of housing in the housing supply. It's also used in housing programs to set uh income limits uh for that determine who's eligible for the housing and the uh maximum prices. That median number is determined by HUD every year and they do it statistically um using uh recent data and we will take that number then and uh turn it into uh income and expense limits that are for the current year are shown here. So the current uh area median income for a fourperson household in our area that is King and Snowomage County is $157,100 and then we u scale it from 100% down to 80% or 50% or 30% or whatever level uh we're interested in. Um and then according to the size of the household. Um so um there are you know um factors to multiply to get these figures uh according to the number of people in the household. So a fourperson household as I said the median income would be 157,000 dollars. But if it was a oneperson household at 100% a median then that income limit would be $110,000. Now, um, we in a similar way, we take that $157,000 to set housing prices in our programs. And the expense limits are based on that 30% maximum that you should spend towards housing. And if the um home has two bedrooms and the maximum is 100% a median, then the maximum monthly cost would be 3535 a month. But if it was a studio, it would be 27.49. Or if that studio was a maximum of 50% of median income, then it would be 1375. Again, I don't expect you to get all this all at once and u or maybe maybe you're way ahead of me, but um feel free to ask questions or we can talk about it, clarify it. That will help explain the next um set of uh slides and information. As Kristen said, everyone needs housing that's affordable to them. Um but we find that the uh the lower the income, the harder it is to find that affordable housing. Uh when we were talking about uh percentages of the AMI, then that um as I said uh determines who would be eligible for different affordable housing programs. So, we're interested uh from a planning perspective on who is served by those at those income levels. And this data from the uh state employment security division tells us who um what are typical wages or earnings for um jobs that are common in our communities. often comes up in conversations of those that we want to make sure are um able to find affordable housing. If we apply the those um some of those standard uh income limits or or um such as 80% AMI for one person or 50 for one person. So we're just talking about the income of one person here. registered nurse, for example, typically makes u more than 80% of median income and so does a typical firefighter. But a typical construction worker uh makes less than 80 but more than 50% of AMI. Same for a waitress or a waiter. uh retail salespeople and home health care personal aids in this survey uh make less than 50% of median income if they're a oneperson household uh but more than 30% of median income and minimum wage is set so that if a person is making minimum wage and living alone then their income is just above 30% AMI does that make sense Now, this uh chart uh is meant to illustrate across our sub region, our East King County, which arch uh encompasses um and compare the affordability of housing units and the incomes of households. Oops. So, um down here there are um about 8% of the households in East King County make less than 10% of AMI and only about 2% of the housing units in East King County are affordable at that level. that follow. Um, similarly at between 30 and 50% of median income, you're looking at about 6% of the households uh fit into that income group, but only about 4% of the housing units are affordable. between 50 and 80 AMI, those numbers are pretty similar. But when you get above 80% of median, what we start to think of as moderate or higher income, then you've got more housing units that are um that are affordable at higher income levels and fewer households. So what ends up happening, as you can imagine, is that because there's more households with lower incomes, they're going to have to buy up. In other words, they're paying more. They're living in more expensive housing. And the result of that is that if you look at the households grouped by income level, you find that you can find how many are paying more than 30% or in some cases more than 50% of their incomes on housing. Again, this is across East King County. And in that lowest income group below 30% AMI, 77% are paying more than half of their income for their housing and nine another 9% are paying more than uh 30%. So that's a total of 86% are housing cost burden. If you're paying more than 50% of your income on housing, that's known as severe housing cost burden and that's a level which is can be really unsustainable. Those are people who are in danger of losing their housing. Um the higher up you go on the income scale, the better that picture looks, not surprisingly. But even um at 50% of median or 80% of median, we still have high uh percentages of um households who are cost burdened. If you break that down even further, you find that that cost burden uh falls uh frequently on single parents with children, uh senior renters, um and uh we could also look at people of color and so on. Um the typical rent uh was less than $1,700 10 years ago and uh it's increased more than $1,000 since then. And if you're interested in Isqua, which of course you are, um you'll see that the data are very similar to East King County overall. And so we then start thinking about um what kind of housing can address the needs of people at various incomes and particularly what kinds of affordable housing. Um that is the ones that have the cost controls and income limits. At the lowest income levels, uh 0 to 30 especially and 30 to 50 typically uh uh require some sort of um subsidy, public subsidy often. And so, and that's where you'll also find um housing for people with uh special needs, as it's often called, permanent supportive housing that provides services, emergency transitional housing, um other subsidized rental housing. Um we won't go into what uh tax credit housing is, but those that's a federal uh tax incentive program. Most anything up to 50% of median uh most affordable housing is created through some sort of subsidy uh program. Now, you can achieve 50% AMI with land use incentives and t local tax incentives, and we'll talk about that, but it's it's um it's not as common. When you get into the 50 to 80% range, then um that's where uh land use and tax incentives at the local level the city of Isqua could control um uh come into play. And then from 80 to 120% of median um we also see some uh land use programs helpful for that. and uh Kristen will be able to show you uh where that's been done in Isqua. So if we stack all these things on top then you might think that um for instance if you wanted to to uh provide more housing for people in that 50 to 80 group such as waiters weight people uh retail sales construction workers and so forth. Then um uh um sorry, land use and tax incentive programs can help with that. Um at lower incomes, uh we can do some things with land use and tax incentives, but uh it will typically take some public money to help uh create that. Um now backing up to a bigger picture uh as um as to what the city can do, what the city is authorized to do, why the city uh needs to do it. Um then uh we want to talk a little bit about this from the uh growth management planning framework that's established in the state of Washington. And so there's this uh foundation that starts with the Growth Management Act, which I'm sure you've you're familiar with already. Um layered on top of that are multi-county planning policies that are established at the um Central Puget Sound Regional Council that guide in turn the the counties, the four counties in the region including King County to set countywide planning policies which are directive toward local comprehensive plans which were just updated uh in the last year. and regulations as well. So those all of your comprehensive planning and uh land use regulations and so forth are all acting to uh help fulfill the guidance of the uh growth management act and particularly countywide planning policies and uh countywide planning policies recently have taken a more uh prescriptive turn and um specified in numerical terms terms the uh numbers of units that each uh city must plan for and accommodate in their comp plans and regulations. So, it's uh I want to stress here um because there's often a lot of confusion that the um GMA and countywide planning policies do not require that the units be built at a certain affordability level. they require that your plans and and regulations support that kind of development. Um but numerically these two charts show um uh what those numbers look like and um corresponding to the the um cost burden analysis that I showed earlier. the greatest uh requirements are at or greatest needs are at the lowest income levels. This um below 30 PSH stands for again uh permanent supportive housing and nonPSH means um ordinary uh or housing without permanent supportive uh services. And then um and the the uh hatched uh parts of the bars show um what the city has had to plan for in this most recent update. And the solid green bars are the um the units as they existed uh in 2020. So you can see that the vast majority of the um the change or increases so to speak uh need to be planned for at the lower income levels. And so that's what makes this a particularly acute challenge. Um this slide shows the as a table with the specific numbers. Um, so the countywide planning policies again requiring ISQUA to plan for at least or nearly 3,000 housing units affordable to households with incomes below 80% of median income. Huge challenge. >> Mike, may I jump in real quick? It's just our growth targets citywide are 3,500 units and of those all except for 363 have to be within that affordable uppercase affordable housing range and the rest can be at market rate. That's a big number. >> But again, the challenge is to to plan for and accommodate them. You can't control what happens to the market, but you can be held uh accountable as a city for uh regulations that would not allow that to happen. I see a question. So if based on what you just said, 90% of the housing that gets built in isqua in the in the near term needs to be for the lowest uh income sector. Then what do they do? Say we're stopping now that you've we've built the 350. >> No, the requirement is that the city's uh plans and policies regulations make it possible for that to happen. not for it to actually happen. I'm I struggle as a lot of planners do with uh making this um more clear. >> Do you have something you want to >> Sure. >> add to it? Sure. >> Yeah. So, we're not we're not developers and we can't make people build things. >> We just have to make sure that we have a big enough sandbox to hold all of the toys, if that makes any sense. We're not going to put the toys in there, but we have to make sure that there's enough space to hold all of those toys. So, we have to make sure that all of our zoning will allow for um you know 868 units at 30 to 50% AMI. However, a market rate developer may come in and put um you know 868 market rate units in there. We can't control that, but we did accommodate for it. I understand. >> Okay. >> Now, if if the city uh changed all its zoning to allow only single family homes, that would clearly not accommodate >> I understand >> uh housing below 80 AMI. So, that's where you would be vulnerable to appeals at the growth management hearing port and things of that nature. So um why am I here and uh what is ARCH exactly? So ARCH is a partnership of cities on the east side. Most of those that are captured in this uh uh blue or purple line, whatever it is, um not Snowqualami, Northbend, some the cities toward the east are not members at this time, but um ARCH was begun at uh in 1993 uh as a partnership with Belleview, Redmond, Kirkland, and King County because at that time, just as now Um people were up in arms about housing affordability and and the uh leaders of those communities thought that uh you know none of them could handle it on their own and maybe it would be a good idea to think about housing economies as a regional or a subreional system and not something that uh individual cities could do on their own. Maybe we could pull some money together and fund some affordable housing projects. Maybe we could share policies and ideas for incentivizing affordable housing, things of that nature. And so that's what they did. And at um uh through the rest of the 90s um uh 12 other cities joined Arch and so now we have 15 cities in King County um as members. our uh main um lines of business, if you will, or uh focus uh fall into what we might consider these four areas. The pooling of funding uh for investing in affordable housing is a big one. And uh the second one um that uh directly involves uh production and preservation of affordable housing is uh land use and tax incentives. That's the area that I know most about. I know a lot less about the investment side of it, but um if we go on, you have questions about that, I'll do the best I can. Um then monitoring um and this is an area that we've uh boosted up in the last several years. So I just mentioned that to assure you that once these units are getting created, we're not just letting them go loose. We continue to provide the staffing and oversight to make sure that those homes are are serving eligible households and uh not exceeding the the amount that they can charge and things of that nature. So for the for the monitoring just to let you all know that every house that is under the arch jurisdiction or every unit that is under the heart arch jurisdiction and has been funded by ARCH has a covenant tied to it and all of these covenants in our in our land use code we list minimum requirements for the affordable housing. So um you know about materials used inside it has to be comparable to what is on the market rate units if it's mixed use on the materials on the outside. Um, and then there are, as Mike mentioned, you know, maximum rental rates and ownership rates. And so all these covenants are in place typically for the if they're rental for the lifetime of the building. And Arch monitors uses these covenants to help monitor um and make sure that they're in compliance with these. >> And we're always we're always working for the city. Um we're not an independent. In fact, we don't we're not incorporated. We don't the only charter we have is an interlocal agreement uh with the city. So uh if I'm here work talking to you I try to be a um a staff support for Kristen and for you as if I'm an Isqua employee and and uh not just you know some outsider advocate or something. I'm I'm formerly I'm we are all City of Belleview employees because somebody needs to sign our paychecks. But um but that's how we look at our role is being extended staff for each of the members. And then the fourth area that um which we've uh really focused on a lot in the last few years is to do more outreach and engagement with communities that uh need affordable housing in particular. Um especially communities uh of people who may not have uh regular or be accustomed to interacting with government services or know how to um uh you know what's available and things like that. So um a lot of engagement activities I think have uh opened up our uh programs to a much wider audience. Um I know this is getting long so I'll step through the next couple uh quickly. um of the of all the the investment programs, land use tax incentive programs are both rental and um home ownership. Um right now we have upwards of 2600 uh affordable apartments that we monitor. Um and uh I think the number is about 900 uh units in the home ownership program. A great number of those are in as well. On the investment side, um the pool pooling of funding that I mentioned began with the housing the arch trust fund uh on a voluntary basis. Arch members will contribute to th to that annually. Sometime some of that comes from general funding. Some of it comes from other sources. Um, it's collected over $120 million since 1992 and helped fund over 6,000 units across the region. Um, Isiqua uh just a couple of years ago established the IHIP that Kristen mentioned earlier and that is funded by a a tenth of a penny on the sales tax established through state law and uh another sales tax s funding source uh mentioned there is HB1406 uh development bonus program also collects some inlies and um so that's another local pool that is uh that the city um controls directly. Do you want to add anything to that right now? >> Last year was the first year we were able to use those funds through applications and it went to uh LEO the life enrichment options and they purchased a house in Isiqua and we paid for half of that. that was used I hit funds and then this year we had three applicants for IHIT funds and those are actually going to city council soon. Um, I don't want to uh go through this uh step by step, but this kind of maps out different tools or or funding sources and uh what they what income levels they typically help support. LIHTC is that um low-income housing tax credit program uh of the federal government that is operated through the state of Washington um that I mentioned earlier and the uh arch trust fund IHIP King County has its own sources um and typically when we're talking about subsidized housing uh they want a single project will layer several of these sources along with their own other uh uh investments um independent of outside of government uh oftentimes and uh in order to make a subsidized project work. Um now the idea of the uh uh arch trust fund long-term is I said that the the um the contributions by the members were made voluntarily each year and um uh projects are awarded each year um based on proposals that we get from the um developers And um the idea long term is that where the money comes in and goes back out um in proportion to where to its sources. But um any given project in Isiqua for example will be funded by not only Isiqua but Belleview, Redmond, Kirkland who you know what uh and usually we try um now we try to get a little bit from every city into every project. There's a little mapping to show uh not only the location of the projects but where um units of different types or are serving different populations I I should say uh have turn out. So, um although my color vision isn't that great, but um uh many projects will be a mix of family uh housing reserved for families for people with special needs or people exiting homelessness and or seniors. Um and so you can see how those are distributed geographically. Just a few pictures of of u these are mostly garden apartments. Although the Cambridge Court project in Belleview is actually um uh housing built by a church-based um a church-based nonprofit in Belleview that serves seniors. I talked about uh well actually I'm gonna Where' the land use one go? Inclusionary zoning. Yeah, I'd like to to do this and then come back. Is that all right? Um Oh, this is yours. Sorry. Well, I was going to say that um from a land use perspective, there are there are voluntary approaches and mandatory approaches. And voluntary meaning that the city will offer an incentive of some sort to a developer to make some of the units in the project affordable. Maybe you give uh the city would give, okay, your height limit is five stories now, but we'll let you build six stories or seven stories if you make 10% of the afford units affordable at some percentage of AMI. That's a voluntary approach. It's up to the developer whether to accept it or not. The mandatory approach is to say, you know, we're going to give you the right to build to six or seven stories and in exchange you will have to give us 10% of the units at that affordability level. So now the choice is has been made by the city and um this city's authorized to do that because uh as long as the value that you're giving uh in that up zone is equal or greater than the value that you're getting back in the affordable housing. So, we're very careful when we uh do analysis for cities to um to uh measure what those values are and recommend um levels of uh incentives that and affordability so that it's not just taking from the value of the project, but it's actually that it's a win-win that and the developer can gain some value through the exchange as well as uh ensuring that there's some affordability from the project. Now a multif family tax exemption program is a little bit the same but instead of um giving additional development capacity, height, density, whatever. Now the city is again through um by authorized by the state is able to exempt the building the residential improvements value from tax exemption for 8, 12 or 20 years um depending on what the conditions are uh affordability conditions are in exchange. And so um um this is another way to get you know this is a voluntary thing uh strictly speaking but it's another way to to say um we'll allow the developer to save or gain so much value and we will reserve or in a sense take back some of that value in the form of affordable housing. Uh what a couple of our cities have done very uh astutely and effectively I would say is to layer both the land use incentives and tax exemption programs and in a way that um brings affordability down as low as 50% of median income. And um and again we go through a a lot of rigorous analysis to be able uh recommend something based on uh that we think will work. Um now I'll bring Kristen back up. >> Thank you, Mike. So I'm going to talk about some of the different tools that the city of Isiqua uses. And while I was sitting over there, I realized um weirdly because I'm working on two things to take to council about this that I didn't include one of our tools in here. And it's huge. Um back in 2002, we waved well 2002 initially and then again in 2008 started in the villages and then moved citywide. But we wave all parks, fire and traffic impact fees, school impact fees for all units assoc. We wave all plan review fees, building review fees, some connection fees that we can wave everything. So, it saves depending on your project, it can save up to millions of dollars on that project. So, that's a huge incentive that the city provides. Um, we are actually going to take this to the planning, development, and envir environment committee uh to maybe potentially make some changes to this on February 3 if you're interested in tuning in for that. Development development agreements thus far are one of the biggest tools that we have used to get affordable housing. Out of development agreements, we've gotten 277 units at or below 80% of the AMI 650 units. all of those located in Isiqua Highlands that are uh between 80% and 120%. In the pipeline, we currently have development agreements that will allow or require 350 plus units at or below 80% area median income. Um we also this does not include under the developed it does not include the transit oriented development trail head that's coming in which will have 159 affordable units that are there some because of inclusionary some because of another program I'll talk about but those will those are not included in this right here. Mike also mentioned briefly our density bonus program and this is a voluntary program and the development agreement is also sort of voluntary. You can do a development development agreement but nine and a half times out of 10 we are going to require affordable housing in that development agreement develop uh density bonus which is actually now development bonus program was adopted in 2013 as part of the central isqua plan. It is voluntary and we have a base height. Let me say you can build up to 50 feet and nothing there has to be affordable. But if you want to build up above 50 feet and go to 85 feet, then a certain percentage 20% of that overage has to be affordable. And then another so one-third of that has to be 20% of one third has to be affordable and then there's another portion it's very complicated um that can either be affordable or a fee in L or open space. No one's chosen that option yet, but either affordable or fe. So, since we adopted this, and it's only in Central Isqua, and since we adopted this, we've yielded 14 units, but we've yielded about a little over $2 million in fee and Lou that are now in our IHIP fund that was mentioned earlier. Inclusionary zoning is something else that Mike mentioned. This was adopted in 2017. And it was as a result of the m mor moratorum that was done uh started in 2016. There were six items associated with the moratorum and one of them was that we had just had a 350 unit development go up and not one of those units was affordable and city council said nope we want affordable. So now if you are going to build in central Isiqua in the zones that are shown here. So the urban core urban core vertical mixed use or the mixed use and it's you just look at the colors up there and you can tell which it doesn't matter which is which. Then you are required no matter how high you build no matter what you put in there if there is residential you are required to put in affordable housing. And it's a sliding scale. So it'll go anywhere from 7 and a half of your units say at 50% area median income up to 15% of your units at 80% area median income. It and when you when you develop you get to choose those options but essentially the lower the AMI the fewer units. The higher the AMI the more units that you have to put in. And our first two projects that are doing it came in last year. So, we have Trail Head is one of those. Trail Head, if you aren't familiar with it, is going next to our transit station, and it's going to have the 159 units that I mentioned along with about 200 units of market rate next to that. So, it's between Maple and Newport and next to the transit center. And the other one is called Parkplace. It's over off of 221st and 51st Street where the old Microsoft offices used to be. They're building 74 units and a percentage of those is going to be affordable at 80%. Another one that hasn't come up was the pioneer program which we adopted 2024. This allows for two projects in the same zones as the inclusionary zoning mixed mixed use central isqua and urban core with 100 to 400 units each. They can be rent or ownership does not matter. The developer can choose the scale again very much like the sliding scale. They can do 8% of all of their units at 60% or 10% of their units at 80%. And this program is not intended for affordable housing. This is simply to get more housing in this area where we want our growth to occur. So part of this is that they are not required to do the de development bonus program. They can build up to the maximum height without having to do that, but they still have to include the affordable units. There will be lifetime covenants associated with these and they are also elig eligible for the um multif family tax exemption MFTTE. Haven't had any biters yet. We almost did but hanging on there. Uh so that was my very short piece of this. So that was very long. So yes, I see questions already but um I'm we're open. >> Commissioner Dair. >> Hi. Hi. So the lifetime covenants on the arch properties they extend even. So if I were to buy an arch property when I sell it I have to sell it to another person who qualifies quickly. >> Yes. When it is being sold the the owner has to notify Arch. Arch then will help to advertise that property but they also set the price. They say it cannot be sold above this. >> Yes. >> And then followup question. So does somebody have to apply to Arch directly? and then prove that they qualify or how would that work with a buyer? >> You don't apply to ARCH, but for sales they do have a list of it's not an application process, but they do have a list of I believe owners and rentals, but they have to you have to prove to ARCH that you qualify and there's a lot of paperwork that's required. The the way it worked practically is that uh if it's a resale u then uh the seller can use a broker uh a real estate agent and so can the buyer and they work out um the the agreement to sell it. But once a a buyer has been chosen then they'll be referred to us for the income verification. >> Commissioner D. Commission Moru >> um in initially when you started speaking you said there's all these to to get lowincome housing we've waved all of these fees and some of the fees that you mentioned I thought um required staff labor. So if you're and and you went through the list very quickly, so I'm I could be mistaken, but it seemed to me that there were certain things that required staff labor. Where do you shift? How do you shift the burden of that expense? Where is that put? >> We don't um >> you do it for nothing. >> We do it for nothing. H >> how But you're you're hired for a certain amount. Mhm. >> I mean, you don't work overtime in order to provide that service. You have You can only be so productive. Does do other PE do other is it sort of uh wishy? In other words, it's not specified from anywhere. It's because you can't do it for nothing. We we are just we get our salaries and when these things come in we review them just like we review any other projects. Now if it goes out to a consultant then sometimes yes we have to repay the consultant. We do not repay ourselves though. So if but let me clarify too though if so the traffic impact fees and the park impact fees if we wave as we do 100% of those fees 20% of those fees we have to find a way to repay 20% of those fees that go toward parks and traffic and so forth but they don't go toward staff. >> Okay. But and maybe I'm not making myself clear, but I'm I guess what I'm saying is you have to you have to spend your time. Your time has value. >> The city is paying you, but somewhere the city needs to receive that income so that it can pay you. Where does that income come from? >> I am not in the finance department. I come in and I I you I really I don't know the answer to that question. >> Your salary >> I mean we're we're salary. Yeah. Our our salaries come from the general fund and we make what we make >> no matter what the project is. So are you thinking that we >> I'm saying that the city has a budget. It has income and it has expenses. >> Right. >> Your the amount of work that your your your labor is an expense. If you're not charging the If you are not charging these developers and you still have the expense, the income's got to come from somewhere. >> Where's it coming from? >> We get we get we get a two week, you know, we get paid every two weeks for no matter what the workload is. >> So, you know, if I need that's >> Yeah, it is. It's that's our contribution to the city or to the to the developer. I guess I'm not making this clear. >> Commissioner Grass, >> I have a very different question. Um, if uh from the chart that you showed at the beginning showed the biggest gaps over the next 20 years or so are going to be at the under 50 um percent um median income. So, we we always talk about like rental and also ownership. I assume those are all rental and because people under those are not buying or qualifying for if you're if you're barely making it, you can't buy. So I assume those are higher all percent going to be rental type units. Are you finding that the um the ability to build those the the developers want to build those and all the codes across this is more broad than just are set up to be able to achieve those because those the biggest if you look at those little hashmark graphs they're all at the lower end and those are going to be rentals. Let's be realistic about that. are all the pieces in place to be able to get that both from the supply and demand the dem the supply of the cities having the ability to have the right rules in place not just as but broadly and then the um on the other side the builders have interest in actually building those more of a broader question yeah uh a lot of uh possible ways to to answer it I think the the general the approach to solving that to creating those units in my mind has got to be a combination of the things you mentioned the uh the subsidies the uh regulations that make it possible for a developer to only get you know to to sell or rent some homes homes for below market rent and make up for it by the bonuses or the tax savings that they get on the other end. That's what pays for for those from on the market rate side. But >> so um if I I guess it's maybe more a question for Kristen, the the things that are being built at least what we see in ESCO right now are more sold units, not rental units. I see lots of town houses all over million million five and all that. Um that could just be a snapshot in time. Um the the bigger apartment I mean are are the developers wanting to build apartments or are they wanting to build condos? And is there a place of how this could all work where a new development can be a mixture where the developer sells market rate condos but they hold back that percentage and they continue to own those as rental apartments. So you have a mixed type because otherwise if a developer is in the condo business they're they're just not going to play um for these under 50 the 50% and below. But is there are you seeing any mixed type of developments that have both owned and rental in the same thing? And you're you're shaking your head. I assume that's >> No, no, we're not. And you know, traditional stack condominiums, we're not seeing those at all in Isiqua. And part of that is because of some regulations that were set by the state that provide that um result in liability issues for condominium developers. So the condo type development we are seeing is town homes and those are all sold and there are some rental a while ago it was all rentals coming in. It was all apartments that were coming in and then over the last three years or so it's been town home after town home after town home. We just talked to somebody the other day who wants to do apartments and some of that's coming back. But to your other point earlier, I think yes, you know, the lower the lower the income level, it's going to be mostly rental and ownership probably doesn't start till closer to 70% or above. >> I think that's even optimistic in this area. I mean, >> you think that's I'm pardon me. >> I think it's you're to qualify for to buy something, you have to be much higher than that, I would assume. Just pure math. We do have uh some um units in our programs from and they mostly come out of Redmond but um at 50% of median and we do we are able to find buyers uh who qualify. So some of it is supported by down payment assistance programs but um at 80% of median uh it's it's not that difficult at all. All right. Uh, Commissioner Oler, I see a hand. >> Just a question. Uh, can you make that slide deck available to the commissioners? >> Absolutely. Yes, that'd be great. >> We've had a request recently to try and get these out earlier, but we have a lot of meetings, so we'll we're going to try and get these out a little earlier, but hasn't worked so far. >> It's great. Thank you. >> Follow-up question. When somebody in the ARCH program buys a condo or townhouse, a lot of times there are HOAs and the HOAs have monthly fees. Are those regulated at all or are they considered is part of the covenant that they have to be lower? Um, when we initially price the home, uh, we build in what the actual HOA fees are, including the, um, the if there's an upfront contribution to the HOA. Um, over time, of course, HOAs tend to raise their fees in order to support capital improvements and maintenance and so forth. that's become a problem because the often the fees will go up faster than the um than the prices themselves. Um so we don't have a great solution to that yet. Um but it's it's something that we're trying to deal with. >> Great job, Commissioner D. I think we stumped them. Uh, Commissioner Matthews, >> I had a question about the urban core, sorry, the urban village f versus the mixed juice because I know that centraliz where you want the most growth. So if say QFC they decide, oh, we're going to sell this, you know, Kroger, and somebody wants to redevelop it as apartments, is there a requirement because it's not mixed juice, it's urban village. Do they have to bring in another retail or I mean, I'm trying to figure out what the difference is between mixed use. Urban village doesn't seem like you need to do that. Is that right? >> So, excuse me. The urban villages are Isiqua Highlands and Talis and Lakeside and where we require the housing is urban core which is the red up here and then the purple striped which is the mixeduse central Isiqua. So if someone was to come in and tear down the Safeway or the Town and Country and want to put in residential there and the that's uh yes that's urban core. Yes, they would be required to put in affordable housing. But if they're up in Isqua Highlands now or Talis, no, they have met their obligations for affordable housing. >> So, follow-up question. Sorry about that. Um, can I do they have to provide the retail again? Because it's looking like we're looking at a food desert coming our way if we start redeveloping the core and not have the retail available. So, I'm just kind of seeing into the future. >> Yes. So we actually we have a developer obligation in our central Isiqua plan that says you need to replace if you come in and you take a business out. >> You need to replace find a way to replace those employees or give them opportunities for employment one for one or you know whatever we this transit engineer transportation engineering manual says we have not found a legal way to codify that yet. So that is actually something that we are working on right now and we actually came across something the other day. So we'll we'll see how that pans out. >> Yeah, >> great questions everyone. Uh Commissioner Miller Irwin. >> Thank you Chair Boyce. I have a question about uh the arch model with respect to um um office building conversions. Um if um converting those to um uh different types of either affordable housing um a small A uh of big A, would that work with your um ARCH model? Well, we would defer to whatever the city's uh regulations are on that, but we >> Yeah, we could make we could administer it. >> Yeah, we we have two potential projects coming in that would be commercial or office conversions to multif family residential and yes, they would be required to comply with the arch covenants. >> Yeah. >> Interesting. Thank you. >> Great discussion everyone. Uh, Commissioner Mulberu, do you have a question? >> I was just praising her for a really interesting question. Sorry. >> Yes. Welld deserving. Um, go ahead and turn off your microphone, otherwise you're going to give me So, I think we move on. All right. So, sorry. Yes, that was it. >> I'm sorry. >> That was exactly right. Okay. Uh I didn't realize that was the end of the presentation. Well, good way to end and such thoughtful questions from the commissioners. Great discussion. want to thank um senior planner Mike Stanger and obviously planning manager Kristen Leon and also uh senior planner Kate Kaney for the great presentations this evening. We're going to move along because that concludes our regular business and we're looking for reports and our first report is city council updates. I mentioned one that we're going to be talking about impact fees at the February 3rd um planning development and environment committee and you all might want to tune in to that one just to see how that goes. We will also be taking to that meeting, sorry, we'll also be taking to that meeting the docket that you all made the recommendation on tonight. And just in case you're interested, there will also be an Isiqua climate action plan update uh given to the committee at that time as well. And then I mentioned this last week I believe, but on March 9th, potentially March 2nd, but right now it's scheduled for March 9th, we will be taking a topic called barriers, removing barriers to development to the city council to have them help us identify. Um, we're going to talk about different ways that we think that can be done. And from that will come amendments that we'll be bringing to you next year. So, you might want to tune in to that one as well. Is that something that's worked out through the city and just developers over time? >> Uh it's we are talking devel to developers right now. There's a meeting coming up in February between staff and developers and that's why we're going in March so that we can have that meeting first but we're also working it out internally just things that we've heard things that we've seen that how the way things function inside as well as what we've seen comments that we've received from outside. >> Okay, great. Stay tuned. >> All right. Any other updates? >> No, I think that's it. Uh, for those of you, there are three of you whose term limits are up this year and the applications are out if you are interested in applying again. >> And it also, sorry, just a note to all of you out there and all of you, there are not just positions open here, but there are positions open all over the city and all different boards and commissions. So, if you know anyone that might be interested, let them know. >> All right. Uh, basically our our final business on the agenda is just any other business or announcements. >> None. >> Okay. And senior planner Kaney, I got that right. I looked at my notes after everything. I don't think I mentioned how many people said no because there was no no, but we want to make it official. It was official, right? >> Okay, perfect. always scares me when it comes to the formalities up here sometimes. All right. Well, thank you everybody for being with us this evening. Uh that does it for us. We're going to conclude this meeting of the Planning Policy Commission tonight at 7:56 p.m. Thank you.