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Council Roundup: Planning for affordable housing sales tax

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    Published February 3 2021

    Housing construction

    Plus, Land Use Code Amendments related to the Affordable Housing Strategy

    On Monday, the City Council unanimously approved an interest statement that provides a framework to utilize a tenth of a percent sales tax for affordable housing and mental/behavioral health services in Bellevue. The state Legislature adopted House Bill 1590 in 2020 to allow for a sales and use tax to be imposed at the county or city level for housing and related services. The council adopted the Bellevue ordinance in October and approved development of a work plan in December. 

    The interest statement outlines nine principles that guide the process of prioritizing where to utilize the tax funds in the community. The prioritization process will include input and engagement from regional partners, housing and human services providers, developers and other stakeholders. The statement consolidates current city housing and human services data and policies. Its principles include closing the affordability gap, increasing housing types and opportunities, enhancing equitable and accessible housing services, and using collaborative, regional approaches to address the housing affordability crisis.

    The sales tax is designed to provide funding for affordable housing units and facilities that provide housing-related services, as well as supporting mental and behavioral health and other housing-related services. A portion of the tax focuses on serving people earning 0-60% of the area’s annual median income from historically underserved populations including people with disabilities, families experiencing homelessness, senior citizens and veterans.

    Updates on plan development and priority refinement over a series of study sessions will begin this spring. The full details are available in the meeting agenda item.

    Land Use Code Amendments related to the Affordable Housing Strategy

    In other business, councilmembers reviewed the Planning Commission recommendations for two Land Use Code Amendments (LUCAs) designed to provide opportunities for new housing units and increase housing choices in Bellevue. Both LUCAs were in response to the city’s Affordable Housing Strategy.

    The LUCAs recommended by the Planning Commission include removing the three-year wait period to establish an Accessory Dwelling Unit (ADU) in a new single-family home and allowing Unit Lot Subdivisions in Land Use Districts where multifamily development is currently permitted. 

    ADUs help provide additional housing diversity, including multi-generational households and residents who are downsizing and wish to “age in place.” The proposed LUCA is expected to add more ADUs in the near-term based on the number of new single-family building permits that contain elements to accommodate a future ADU. 

    The second proposed amendment is intended to minimize barriers for infill development by providing an alternative to condominium development. This LUCA is expected to broaden homeownership opportunities by expanding fee-simple ownership through Unit Lot Subdivisions, commonly used to produce townhomes. Bellevue is estimated to have significant zoning capacity for this type of multifamily development.  

    After an extensive public outreach process, a study session, and public hearings, the Planning Commission voted 5-1 to adopt the LUCA removing the “3-Year Wait” for ADUs and 4-1 to adopt provisions in the Land Use Code for Unit Lot Subdivisions. 

    The presentation and full council discussion are available on video replay through Bellevue Television and the LUCA details are available in the meeting materials. Potential final action and adoption on the proposed LUCAs will occur at a future meeting. 
     

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