Housing needs report; Comprehensive plan progress report; Housing Updates; Upcoming workshops



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Nov. 18, 2024

2024 November Planners' Newsletter
Washington state map depicting housing needs data

"Housing needs for Washington counties through 2044"

New report offers insight into Washington’s housing landscape

The Washington Center for Real Estate Research at the University of Washington has published The State of the State’s Housing 2024: Supply and Affordability in Washington State (PDF) [ [link removed] ]. [ [link removed] ] The report gives an overview of housing in Washington, focusing on recent legislation, demographic and economic conditions, homeownership, house prices, apartment rents, housing affordability, and homelessness.

Key findings in this year’s report include:


* After a decade of steady increases, the price of the median house in Washington leveled off between 2022 and 2024.
* A surge in new construction slowed rent growth to an average of 3.6% annually from 2022 to 2024.
* Nearly half of renter households pay more than 30% of income on housing costs.

Washington’s median household income reached $99,000 in 2024, up 18% in three years.

The 2024 report also provides a review of the Buildable Lands reports prepared by seven counties in preparation for the current round of comprehensive plan updates.

Help shape the Comprehensive Plan Implementation Progress Report

Keeping the comprehensive plan centered in local decision-making is essential for effective implementation. Commerce is beginning work on the implementation progress report, as outlined in RCW 36.70A.130(9) [ [link removed] ], and we want your input to ensure it captures both the challenges and successes in your community.

Please consider sharing details or links to help shape the implementation progress report. Complete this form [ [link removed] ] to share your input.

Public outreach will begin in early 2025, and we’re eager to hear your perspectives during this important process.

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Remember to sign Periodic Update Grant contracts

Award notifications and instructions for the Periodic Update Grant (PUG) have been sent to counties and cities with updates due in 2026.* Jurisdictions awarded grants for 2026 updates must sign their Year 1 contracts by Jan. 24, 2025. *Once signed, these jurisdictions can request reimbursement for all eligible work outlined in the PUG grant agreements.

For questions or assistance, please contact Contracts Coordinator Ashley Murphy <[email protected]>.

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Housing Updates

New housing laws may soon preempt local codes

Several state-level preemption clauses impacting infill housing development were enacted during the 2023-24 legislative sessions. These affect areas such as middle housing, accessory dwelling units, and the conversion of commercial buildings to multifamily and co-living spaces. On specified dates, state codes will preempt and supersede local codes unless jurisdictions adopt consistent regulations.

To explore available options as your jurisdiction approaches these statutory deadlines, please review our Preemption Fact Sheet (PDF) [ [link removed] ].

 

MFTE has helped create 6,000 housing units

The Multi-Family Housing Property Tax Exemption (MFTE) incentivized the creation of nearly 6,000 housing units in 2023 with a total development value estimated at $1.8 billion across 67 projects.

Those are just some of the takeaways from the latest MFTE annual report.

View MFTE Annual Report (PDF) [ [link removed] ].

The MFTE provides a property tax exemption in exchange for the development of multifamily and affordable housing in designated “residential targeted areas.” Across the state, 58 jurisdictions now offer MFTE programs.

The report also details a 22% decrease for MFTE projects in 2023, which is in line with the decrease in overall housing starts across the state – likely due to higher interest rates and construction costs.

 

Learn more [ [link removed] ].

 

CHIP sees high demand for remaining funds

The Connecting Housing to Infrastructure Program (CHIP) saw significant demand in the latest application round that closed Oct. 31.

Cities, counties and public utility districts from across the state submitted 62 applications requesting a total of $48 million (PDF) [ [link removed] ]. The program has $12.7 million remaining for the 2023-2025 biennium.

 

Read more [ [link removed] ].

 

Proportionate impact fee study gets underway

Commerce has selected Harris & Associates, Inc. to develop guidance on calculating proportional impact fees. Under RCW 82.020.060(1) [ [link removed] ], local governments and utilities must adopt a schedule of proportional impact fees within six months of their periodic update.  

Commerce is seeking participants for a workgroup running from January to March 2025, and engaging reviewers as well. If you are interested in participating as a stakeholder or reviewer, please send your contact information and experience to [email protected] by Dec. 15, 2024.

 

We’re hiring!

The Local Government Division is hiring for two positions on the housing team:

*Middle Housing Planner [ [link removed] ]*: This position will work with other members of the housing team to provide comments on comprehensive plan and regulatory changes related to housing for the periodic update, manage housing contracts, train growth management staff to address housing topics, and work with consultants to develop support materials for local government as they conduct housing work. This position will also analyze legislation related to zoning, fee structures and planning for housing.

*Assistant Housing Planner [ [link removed] ]*: This position provides technical and financial assistance on growth management planning and implementation for housing to cities and counties. This position uses expertise in the principles, practices and techniques of land use as detailed in the Growth Management Act (GMA). This position will analyze proposed local comprehensive plans, regulations and incentives related to GMA housing implementation, periodic update and grants, especially related to planning for the lowest income segments.

Explore these and more positions at Commerce on the Washington state job board [ [link removed] ].

Outside of Commerce

New Federal Flood Risk Management Standard now in effect

FEMA logo

The Federal Flood Risk Management Standard (FFRMS) [ [link removed] ] is a new regulation that all federal agencies and federally funded projects must meet to improve resilience against current and future flood risks. Effective Sept. 9, 2024, this standard requires federal agencies to establish specific dimensions—height, width and scope—for federally funded buildings or projects to address potential flood hazards, as outlined by FEMA.

Important to note is that the FFRMS applies to all federal agencies and therefore will apply to Housing and Urban Development projects and Federal Housing Authority mortgages.

Starting Jan. 1, 2025, properties in the special flood hazard zone must have a lowest floor elevation at least 2 feet above base flood elevation to qualify for FHA loans. Communities without a 2-foot freeboard requirement in their floodplain regulations may face limitations on homeownership opportunities, per the Association of State Floodplain Managers [ [link removed] ].

For more information, see the “Resources” section of Ecology’s recent newsletter on the impacts of the FFRMS [ [link removed] ].

 



Ecology to accept applications for Flood Control Assistance Program starting Jan. 1

Dept of Ecology logo

As the rainy season returns to Washington, communities statewide are reminded to prepare for potential flooding —a natural hazard that incurs greater costs here than any other. Established by the Legislature in 1984, the Flood Control Assistance Account Program (FCAAP) [ [link removed] ] provides critical funding to help local governments plan for and mitigate flood risks.

*Ecology will begin accepting applications for FCAAP 2025-2027 planning grants Jan. 1, 2025*. Funding and applications for emergency flood response projects will also be available from July 1, 2025, to June 30, 2027. Ecology anticipates the Legislature will appropriate approximately $1.5 million for all FCAAP projects.

Ecology recently expanded the range of eligible activities and added federally recognized tribes as eligible applicants for this grant program. See Ecology’s Guide for Flood Hazard Management Planning [ [link removed] ] for details.

 



Ecology welcomes Sam Weinstein to SEA program

Sam Weinstein (she/her) has joined the Washington Department of Ecology as state and federal policy manager in the Shorelands and Environmental Assistance program.

Sam will coordinate the program’s legislative and policy efforts, lead federal legislative issues, and engage with interested parties across various environmental sectors. She will also serve as the Department’s Growth Management Act coordinator, ensuring that new and existing initiatives align with Washington’s mission to protect and enhance our environment for future generations.

 

WGS publishes new walk-time evacuation maps

Department of Natural Resources Logo

The Washington Geological Survey has published five new tsunami evacuation walk-time maps for communities along Washington’s Pacific Coast and the Strait of Juan de Fuca. The maps are based on a tsunami that originates from a Cascadia Subduction Zone earthquake. You can click the name of a community below to view its new map as a PDF:


* Tsoo-Yess River [ [link removed] ]
* Neah Bay [ [link removed] ]
* Lower Elwha Klallam [ [link removed] ]
* Kalaloch [ [link removed] ]
* Dungeness [ [link removed] ]

The maps show the tsunami inundation zone and paths of tsunami evacuation routes. Colors indicate how many minutes it takes to walk to safety from any given location within the inundation zone. The maps assume a slow walk at 2.46 miles per hour, the same pace used for the timing of crosswalks.

An interactive map through which you can access all WGS published evacuation maps is available on the WGS Tsunami webpage [ [link removed] ].



Upcoming Events

Capital facilities workshop set for Nov. 20

Join Commerce on Wednesday, Nov. 20, 2024, for a virtual workshop on updating the capital facilities element of the periodic update. Hear from experts on best practices and goals for updating this element, plus planning for housing and stormwater, and other useful tools and resources.

See the workshop flyer (PDF) [ [link removed] ] for more information.

Register for the capital facilities workshop [ [link removed] ] (Zoom)

 

The Short Course on Local Planning

The Short Course on Local Planning offers an overview of land use planning laws in Washington, an introduction to comprehensive planning and plan implementation under the Growth Management Act, and a review of roles in planning and mandatory training on the Open Public Meetings Act for local government officials. All courses are online, free and open to the public.

*Online (Zoom) courses:*


* Dec.17, 2024 at 6 p.m. Register for the virtual Short Course (Zoom) [ [link removed] ]

*Ask about local presentations*

Commerce also offers e-visits to local planning commissions or other meetings. Topics include, but are not limited to, comprehensive plan basics and roles in the planning process.

Contact your regional planner [ [link removed] ] to request a presentation.

 






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About Commerce

Commerce works with local governments, businesses, community-based organizations and tribes to strengthen communities. The department’s diverse portfolio of more than 100 programs and effective public and private partnerships promote sustainable community and economic development to help all Washingtonians thrive. For more information, visit [link removed]. For information on locating or expanding a business in Washington, visit choosewashingtonstate.com [ [link removed] ].

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