Title
Housing Research Study Phase 2
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Direct staff to move forward with Phase 2 of the housing study, deciding which housing elements should be considered, and other requirements outlined in the Request for Proposals.
Report
Issue:
Whether to move forward on a Phase 2 of the housing study, deciding which housing elements should be considered, and other requirements outlined in the Request for Proposals.
Staff Contact:
Darian Lightfoot, Housing Programs Manager, 360.280.8951
Presenter(s):
Darian Lightfoot, Housing Programs Manager
Background and Analysis:
In January, the City of Olympia sought proposals from qualified consultant teams for research and recommendations to forward objectives of Olympia’s Housing Action Plan. The plan recognizes an urgent need for more housing supply in the city, including increasing the number of units affordable to low-income households. The City wants to structure its zoning, regulations and incentives in a way that encourages needed housing development.
This request for proposals was for the first phase of this work effort. This request was for a study to help the City determine how best to structure the City’s Multi Family Tax Exemption (MFTE)(see Olympia Municipal Code 5.86) and understand its effect on the likelihood of encouraging private sector development, including both market rate and low-income affordable units, within specific areas. The Phase 2 study would aim to support partners and housing projects that involve land trusts, cooperatives, cottage housing, or other models that boost homeownership or stabilize the long-term affordability of the property for low to moderate income households.
Community Planning and Development Department staff have identified several elements of the Olympia Municipal Code that may create barriers to these housing models. The City aims to support developers in creating housing that will meet the needs of current and future residents. This study, if funded during the budget development process, will identify models and partners to address these issues and work towards meeting the goals of the Housing Action Plan and Climate Action Plan, providing clear pathways to increase units created and decrease miles traveled for residents in the City.
Neighborhood/Community Interests (if known):
Potential changes to the Olympia Municipal Code related to housing are a topic of significant interest to residents and contractors within the city. Any work on this topic will draw a great deal of local and regional attention and public engagement.
Options:
1. Provide staff with guidance and feedback regarding next steps in scoping phase 2 of a housing study. Direct staff come back to Land Use for final review of the Request for Proposals.
2. Provide staff with guidance and feedback regarding next steps in scoping phase 2 of a housing study. Direct staff move forward with recommendations for Phase 2 and release the Request for Proposals upon budget approval.
Financial Impact:
The contract with ECONorthwest for Phase 1 of the housing study was executed in March and not to exceed $50,000 for services. These funds were a direct appropriation from the City Council out of discretionary funds for the market study. A budget enhancement request was submitted in July 2022 for an additional $50,000 to fund a Phase 2 of this study to better research diversified housing development options in the City.
Attachments:
None