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2021-04-08 PC APPROVED SIGNED MINUTESMeeting Minutes Spokane Valley Planning Commission Council Chambers — City Hall April 8, 2021 I. Planning Commission Chair Bob McKinley called the meeting to order at 6:01 p.m. The meeting was held remotely via ZOOM meeting. II. Administrative Assistant Taylor Dillard took roll and the following members and staff were present: Fred Beaulac Erik Lamb, City Attorney Karl Granrath Jenny Nickerson, Building Official Walt Haneke Mike Basinger, Economic Development Manager Bob McKinley Chaz Bates, Senior Planner Nancy Miller Taylor Dillard, Administrative Assistant Paul Rieckers Marianne Lemons, Administrative Assistant Sherri Robinson III. AGENDA: Commissioner Rieckers moved to approve the April 8, 2021 meeting agenda as presented. There was no discussion. The vote on the motion was seven in favor, zero against and the motion passed. IV. MINUTES: Commissioner Miller moved to approve the March 25, 2021 minutes as presented. There was no discussion. The vote on the motion was seven in favor, zero against and the motion passed. V. COMMISSION REPORTS: Commissioner Robinson expressed concern about the fire access being padlocked for the Revere Ridge apartments on Union Road. VI. ADMINISTRATIVE REPORT: There was no administrative report. VII. PUBLIC COMMENT: Connie Jensen, Spokane Valley: Ms. Jensen stated that there is an apartment complex being constructed next to the cul-de-sac where she lives and she is concerned that the new owner/developer of the apartment complex will not adhere to the original conditions of approval. She wants to make sure that the cul-de-sac will still receive the promised fire gate and that Pines Road will be widened to accommodate the additional traffic. VIII. COMMISSION BUSINESS: a. Findings Of Fact: CTA-2020-0004 — Title 24 Update Economic Development Manager Mike Basinger presented the Findings of Fact for CTA-2020-0004, Title 24 Update for approval. He explained that the code text 04-08-2021 Planning Commission Minutes Page 2 of 4 amendment was modifying Chapters 24.40 and 24.50 of the Spokane Valley Municipal Code and was approved for recommendation by the Planning Commission at the March 25, 2021 meeting. Commissioner Beaulac moved to approve the Planning Commission Findings of Fact for CTA-2020-0004 as presented. There was no discussion. The vote on the motion was seven in favor, zero against and the motion passed. b. Public Hearing: Housing Action Plan The public hearing was opened at 6:21 pm. Senior Planner Chaz Bates gave a presentation on the Housing Action Plan (HAP). He explained that Washington legislation passed a bill (E2SHB 1923) in 2019 encouraging increased residential capacity through adoption of regulatory mechanisms or adoption of a HAP. The City decided to develop a HAP and was awarded a $100,000 grant from the Department of Commerce to hire the consulting firm to assist in developing it. The HAP identifies strategies and implementing actions to promote housing for all income levels by providing housing diversity, housing affordability, and increased access to opportunity for housing. The plan was developed by the gathering of data and public input. However, the strategies and action are adopted at a later time. The HAP has four basic elements which includes a housing needs assessment, a housing policy review, proposed strategies and actions, and a proposed implementation plan. Mr. Bates explained that the housing needs assessment provides information on existing housing inventory, the projected housing needs, population trends, and employment trends. The assessment shows that the City is lacking diversity in housing stock and will need at least 6,660 new housing units by the year 2037 to handle new growth. However, 45% of these homes will be occupied by residents who make less than the Area Medium Income (AMI). This means that there is a growing need for affordable housing and the HAP is geared towards making sure that there are options for all residents. Mr. Bates stated that the housing policy review looks to see if the proposed strategies align with identified needs, align with community vision and engagement, identifies regulatory barriers, and evaluates available programs. The policy review identified that there is a need for housing for incomes below the AMI and housing that offer more affordable ownership options. Mr. Bates said that the housing strategies and actions outlined in the plan are based on five criteria. This includes zoning and other regulatory strategies, process improvements, affordable housing incentives, funding for affordable housing, and mitigating displacement. The three strategic goals outlined are to preserve affordable housing and mitigate displacement, increase both market -rate and affordable housing supply by creating focus zones that allow multifamily and missing -middle housing, and increase housing options and housing choice. Missing -middle housing includes duplexes, cottages and townhomes because they provide a spectrum of affordability options. The goal in the HAP to preserve affordable housing and mitigate displacement includes monitoring regulated properties, retaining affordable market rate units, using caution when proposing land use changes in areas at risk for displacement, providing tenant support, and providing homeowner assistance. The HAP proposes to increase market -rate and 2 04-08-2021 Planning Commission Minutes Page 3 of 4 affordable housing supplies in zones that allow multifamily and missing -middle housing by modifying the Spokane Valley Municipal Code to encourage production of townhomes and cottages, adopt a multifamily tax exemption program, create incentives to produce additional affordable housing, and adopt a planned action ordinance that allows large, mixed use phased developments to occur. In order to increase housing options and housing choices, the HAP proposes updating regulations for Accessory Dwelling Units (ADU), allowing for tiny homes, planning for homeless shelters and transitional housing, and developing a housing fund program. The implementation plan identifies steps to achieve strategies and a monitoring program. Commissioner Miller asked how tiny homes will fit into the character of Spokane Valley and how the approval process will work. Mr. Bates answered that tiny homes are not currently allowed in the City limits so a code -text amendment would have to go through the public process of approval. Commissioner Miller also asked who monitors the Cities rent restricted properties. Mr. Bates answered that the City does not have anyone who monitors these properties so this proposal is to create a program or adopt an existing program. Commissioner Beaulac asked if the HAP is consistent with the other Cities in the area. He feels that they should be similar throughout the County. Mr. Bates answered that he has been in constant contact with the City of Spokane and the consulting agency that produced the HAP also created the one for the City of Spokane. Commission Beaulac also asked about the tax exemption program. Mr. Bates answered that the exemption could exempt the improvements done on the property but will retain the base value of the property for taxes. The exemption would last for either eight or twelve years but if a property is granted a twelve-year exemption, it would have to have an affordable housing component. Commissioner Haneke asked if there is enough land available in the City limits to meet the housing requirements based on current zoning and density. Mr. Bates answered that the projections are based on the land capacity analysis that was done in 2016. However, changes will have to occur in order to allow for the additional housing types to be incorporated onto the available land. The matter was opened to the public for comment. Darin Watkins, Government Affairs Director for the Spokane Association of Realtors: Mr. Watkins stated that the Association is disappointed in the projections that were made in the HAP. He feels that the data is too old to provide adequate numbers and the information is already outdated. He stated that the Association developed an assessment of the Spokane region outlining the market -based needs throughout the area. It outlines a 94% reduction in housing availability since 2010, escalating home prices (70% increase in home prices over the last five years), and a lack of inventory that leads to more people renting. Currently, there are only 106 homes for sale in Spokane County and only five of those are under $250,000.00. He expressed that the solutions proposed are similar between the Association's assessment and the HAP but he would like to make sure that all housing gaps are addressed and are based on current numbers of the 2020 census. Jennifer Wilcox, Spokane Valley: Ms. Wilcox stated that she is a proponent of the HAP because she feels that the there are many encouraging solutions proposed to 3 04-08-2021 Planning Commission Minutes Page 4 of 4 address the lack of housing availability. She feels that the goals outlined are good representations of the strategies needed for a growing city. One of the action items is to provide housing assistance and she feels that will help residents to be more receptive to affordable housing options. She stated that she is also a proponent of the proposed housing fund because it would provide a source of flexible funding specifically for housing needs. The public hearing was closed at 7:12 p.m. Commissioner Granrath commented that he would like to see the HAP updated regularly with current numbers when they become available. Commissioner Haneke moved to approve and forward to City Council a recommendation of approval of the Housing Action Plan. There was no discussion. The vote on the motion was seven in favor, zero against and the motion passed. Mr. Bates explained that the Findings of Fact will be returned to the Commission at the April 22, 2021 meeting. IX. GOOD OF THE ORDER: There was nothing for the good of the order. X. ADJOURNMENT: Commissioner Beaulac moved to adjourn the meeting at 7: 32 p.m. There was no discussion. The vote on the motion was seven in favor, zero against, and the motion passed. Bob McKinley, Chair Marianne Lemons, Secretary Date signed 11