H-4109

AN ACT Relating to housing; amending RCW 36.70A.030, 36.70A.020, 36.70A.070, 35.21.685, 36.32.415, and 82.02.050; adding a new section to chapter 36.70A RCW; and adding a new section to chapter 8.26 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. RCW 36.70A.030 and 1990 1st ex.s. c 17 s 3 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Adopt a comprehensive land use plan" means to enact a new comprehensive land use plan or to update an existing comprehensive land use plan.

(2) "Affordable housing" has the same meaning as in section 103, chapter ---, Laws of 1992 (HB 2484).

(3) "Agricultural land" means land primarily devoted to the commercial production of horticultural, viticultural, floricultural, dairy, apiary, vegetable, or animal products or of berries, grain, hay, straw, turf, seed, Christmas trees not subject to the excise tax imposed by RCW 84.33.100 through 84.33.140, or livestock, and that has long-term commercial significance for agricultural production.

((~~(3)~~)) (4) "City" means any city or town, including a code city.

((~~(4)~~)) (5) "Comprehensive land use plan," "comprehensive plan," or "plan" means a generalized coordinated land use policy statement of the governing body of a county or city that is adopted pursuant to this chapter.

((~~(5)~~)) (6) "Critical areas" include the following areas and ecosystems: (a) Wetlands; (b) areas with a critical recharging effect on aquifers used for potable water; (c) fish and wildlife habitat conservation areas; (d) frequently flooded areas; and (e) geologically hazardous areas.

((~~(6)~~)) (7) "Department" means the department of community development.

((~~(7)~~)) (8) "Development regulations" means any controls placed on development or land use activities by a county or city, including, but not limited to, zoning ordinances, official controls, planned unit development ordinances, subdivision ordinances, and binding site plan ordinances.

((~~(8)~~)) (9) "Fair share housing" means housing of various types and densities located within a city or county that is affordable and available to very low-income and low-income households, as defined in section 103, chapter ---, Laws of 1992 (HB 2484), and persons with special needs, to address the county or regional need.

(10) "Forest land" means land primarily useful for growing trees, including Christmas trees subject to the excise tax imposed under RCW 84.33.100 through 84.33.140, for commercial purposes, and that has long-term commercial significance for growing trees commercially.

((~~(9)~~)) (11) "Geologically hazardous areas" means areas that because of their susceptibility to erosion, sliding, earthquake, or other geological events, are not suited to the siting of commercial, residential, or industrial development consistent with public health or safety concerns.

((~~(10)~~)) (12) "Long-term commercial significance" includes the growing capacity, productivity, and soil composition of the land for long-term commercial production, in consideration with the land's proximity to population areas, and the possibility of more intense uses of the land.

((~~(11)~~)) (13) "Minerals" include gravel, sand, and valuable metallic substances.

((~~(12)~~)) (14) "New fully contained community" means a comprehensive development providing for a mixture of land uses which includes the following: (a) A mix of jobs, housing, and public facilities needed for a self-contained community including a fair share of affordable housing, as defined in section 103, chapter ---, Laws of 1992 (HB 2484); (b) preservation of open spaces within and around the community; (c) an internal and external transportation system supportive of pedestrian access and public transit; (d) the new infrastructure needed to serve the proposed community; and (e) the mitigation of off-site impacts.

(15) "Public facilities" include streets, roads, highways, sidewalks, street and road lighting systems, traffic signals, domestic water systems, storm and sanitary sewer systems, parks and recreational facilities, and schools.

((~~(13)~~)) (16) "Public services" include fire protection and suppression, law enforcement, public health, education, recreation, environmental protection, and other governmental services.

((~~(14)~~)) (17) "Urban growth" refers to growth that makes intensive use of land for the location of buildings, structures, and impermeable surfaces to such a degree as to be incompatible with the primary use of such land for the production of food, other agricultural products, or fiber, or the extraction of mineral resources. When allowed to spread over wide areas, urban growth typically requires urban governmental services. "Characterized by urban growth" refers to land having urban growth located on it, or to land located in relationship to an area with urban growth on it as to be appropriate for urban growth.

((~~(15)~~)) (18) "Urban growth areas" means those areas designated by a county pursuant to RCW 36.70A.110.

((~~(16)~~)) (19) "Urban governmental services" include those governmental services historically and typically delivered by cities, and include storm and sanitary sewer systems, domestic water systems, street cleaning services, fire and police protection services, public transit services, and other public utilities associated with urban areas and normally not associated with nonurban areas.

((~~(17)~~)) (20) "Wetland" or "wetlands" means areas that are inundated or saturated by surface water or ground water at a frequency and duration sufficient to support, and that under normal circumstances do support, a prevalence of vegetation typically adapted for life in saturated soil conditions. Wetlands generally include swamps, marshes, bogs, and similar areas. Wetlands do not include those artificial wetlands intentionally created from nonwetland sites, including, but not limited to, irrigation and drainage ditches, grass-lined swales, canals, detention facilities, wastewater treatment facilities, farm ponds, and landscape amenities. However, wetlands may include those artificial wetlands intentionally created from nonwetland areas created to mitigate conversion of wetlands, if permitted by the county or city.

Sec. 2. RCW 36.70A.020 and 1990 1st ex.s. c 17 s 2 are each amended to read as follows:

The following goals are adopted to guide the development and adoption of comprehensive plans and development regulations of those counties and cities that are required or choose to plan under RCW 36.70A.040. The following goals are not listed in order of priority and shall be used ((~~exclusively~~)) for the purpose of guiding the development of comprehensive plans and development regulations:

(1) Urban growth. Encourage development in urban areas where adequate public facilities and services exist or can be provided in an efficient manner.

(2) Reduce sprawl. Reduce the inappropriate conversion of undeveloped land into sprawling, low-density development.

(3) Transportation. Encourage efficient multimodal transportation systems that are based on regional priorities and coordinated with county and city comprehensive plans.

(4) Housing. Encourage ((~~the availability of affordable~~)) housing ((to)) for all economic segments of the population of this state, participate in making available a fair share of affordable housing, including affordable housing for people with special needs, promote a variety of residential densities and housing types, ((~~and~~)) encourage preservation of existing housing stock, and assure that housing complies with applicable federal, state, and local health and safety laws.

(5) Economic development. Encourage economic development throughout the state that is consistent with adopted comprehensive plans, promote economic opportunity for all citizens of this state, especially for unemployed and for disadvantaged persons, and encourage growth in areas experiencing insufficient economic growth, all within the capacities of the state's natural resources, public services, and public facilities.

(6) Property rights. Private property shall not be taken for public use without just compensation having been made. The property rights of landowners shall be protected from arbitrary and discriminatory actions.

(7) Permits. Applications for both state and local government permits should be processed in a timely and fair manner to ensure predictability.

(8) Natural resource industries. Maintain and enhance natural resource-based industries, including productive timber, agricultural, and fisheries industries. Encourage the conservation of productive forest lands and productive agricultural lands, and discourage incompatible uses.

(9) Open space and recreation. Encourage the retention of open space and development of recreational opportunities, conserve fish and wildlife habitat, increase access to natural resource lands and water, and develop parks.

(10) Environment. Protect the environment and enhance the state's high quality of life, including air and water quality, and the availability of water.

(11) Citizen participation and coordination. Encourage the involvement of citizens in the planning process and ensure coordination between communities and jurisdictions to reconcile conflicts.

(12) Public facilities and services. Ensure that those public facilities and services necessary to support development shall be adequate to serve the development at the time the development is available for occupancy and use without decreasing current service levels below locally established minimum standards.

(13) Historic preservation. Identify and encourage the preservation of lands, sites, and structures, that have historical or archaeological significance.

Sec. 3. RCW 36.70A.070 and 1990 1st ex.s. c 17 s 7 are each amended to read as follows:

The comprehensive plan of a county or city that is required or chooses to plan under RCW 36.70A.040 shall consist of a map or maps, and descriptive text covering objectives, principles, and standards used to develop the comprehensive plan. The plan shall be an internally consistent document and all elements shall be consistent with the future land use map. A comprehensive plan shall be adopted and amended with public participation as provided in RCW 36.70A.140.

Each comprehensive plan shall include a plan, scheme, or design for each of the following:

(1) A land use element designating the proposed general distribution and general location and extent of the uses of land, where appropriate, for agriculture, timber production, housing, commerce, industry, recreation, open spaces, public utilities, public facilities, and other land uses. The land use element shall provide for sufficient developable land and densities for a range of housing types. The land use element shall include population densities, building intensities, and estimates of future population growth. Each county shall include urban growth areas as established in RCW 36.70A.110 in its comprehensive land use plan. The land use element shall provide for protection of the quality and quantity of ground water used for public water supplies. Where applicable, the land use element shall review drainage, flooding, and storm water run-off in the area and nearby jurisdictions and provide guidance for corrective actions to mitigate or cleanse those discharges that pollute waters of the state, including Puget Sound or waters entering Puget Sound.

(2) A housing element recognizing the vitality and character of established residential neighborhoods that: (a) Includes an inventory and analysis of existing and projected housing needs including a jobs-housing balance consisting of at least a comparison between the supply of housing and the number of jobs projected in the next ten years in the county or sub-county area, as well as an assessment of whether the housing is affordable to the workers; (b) includes a statement of goals, policies, ((~~and~~)) objectives, and a five-year financing plan for the preservation, improvement, and development of housing and for ensuring that a community's fair share housing responsibility is met within either the county or the jurisdictions; (c) identifies sufficient land for housing, including, but not limited to, government-assisted housing, housing for very low-income and low-income ((~~families~~)) households, manufactured housing, multifamily housing, and group homes and foster care facilities; ((~~and~~)) (d) makes adequate provisions for existing and projected needs of all economic segments of the community; and (e) identifies regulatory barriers to the development and placement of affordable housing.

(3) A capital facilities plan element consisting of: (a) An inventory of existing capital facilities owned by public entities, showing the locations and capacities of the capital facilities; (b) a forecast of the future needs for such capital facilities; (c) the proposed locations and capacities of expanded or new capital facilities; (d) at least a six-year plan that will finance such capital facilities within projected funding capacities and clearly identifies sources of public money for such purposes; and (e) a requirement to reassess the land use element if probable funding falls short of meeting existing needs and to ensure that the land use element, capital facilities plan element, and financing plan within the capital facilities plan element are coordinated and consistent.

(4) A utilities element consisting of the general location, proposed location, and capacity of all existing and proposed utilities, including, but not limited to, electrical lines, telecommunication lines, and natural gas lines.

(5) Counties shall include a rural element including lands that are not designated for urban growth, agriculture, forest, or mineral resources. The rural element shall permit land uses that are compatible with the rural character of such lands and provide for a variety of rural densities.

(6) A transportation element that implements, and is consistent with, the land use element. The transportation element shall include the following subelements:

(a) Land use assumptions used in estimating travel;

(b) Facilities and services needs, including:

(i) An inventory of air, water, and land transportation facilities and services, including transit alignments, to define existing capital facilities and travel levels as a basis for future planning;

(ii) Level of service standards for all arterials and transit routes to serve as a gauge to judge performance of the system. These standards should be regionally coordinated;

(iii) Specific actions and requirements for bringing into compliance any facilities or services that are below an established level of service standard;

(iv) Forecasts of traffic for at least ten years based on the adopted land use plan to provide information on the location, timing, and capacity needs of future growth;

(v) Identification of system expansion needs and transportation system management needs to meet current and future demands;

(i) An analysis of funding capability to judge needs against probable funding resources;

(ii) A multiyear financing plan based on the needs identified in the comprehensive plan, the appropriate parts of which shall serve as the basis for the six-year street, road, or transit program required by RCW 35.77.010 for cities, RCW 36.81.121 for counties, and RCW 35.58.2795 for public transportation systems;

(iii) If probable funding falls short of meeting identified needs, a discussion of how additional funding will be raised, or how land use assumptions will be reassessed to ensure that level of service standards will be met;

(d) Intergovernmental coordination efforts, including an assessment of the impacts of the transportation plan and land use assumptions on the transportation systems of adjacent jurisdictions;

(e) Demand-management strategies.

After adoption of the comprehensive plan by jurisdictions required to plan or who choose to plan under RCW 36.70A.040, local jurisdictions must adopt and enforce ordinances which prohibit development approval if the development causes the level of service on a transportation facility to decline below the standards adopted in the transportation element of the comprehensive plan, unless transportation improvements or strategies to accommodate the impacts of development are made concurrent with the development. These strategies may include increased public transportation service, ride sharing programs, demand management, and other transportation systems management strategies. For the purposes of this subsection (6) "concurrent with the development" shall mean that improvements or strategies are in place at the time of development, or that a financial commitment is in place to complete the improvements or strategies within six years.

The transportation element described in this subsection, and the six-year plans required by RCW 35.77.010 for cities, RCW 36.81.121 for counties, and RCW 35.58.2795 for public transportation systems, must be consistent.

NEW SECTION. Sec. 4. A new section is added to chapter 36.70A RCW to read as follows:

(1) The department shall establish by rule in consultation with local governments the process for determining a fair share housing responsibility for each city and unincorporated area within a county. The process shall use county-wide data provided by the office of financial management and the department, except that the department may aggregate data from more than one county where it deems appropriate. The process shall include, but is not limited to, an assessment of the existing housing stock, the projected needs for affordable housing in the local community and county wide, the population density, the amount of developable land in the urban growth area, and the projected number of jobs to be created in the community in the next ten years. Each community's fair share affordable housing responsibility shall include housing that is affordable to very low-income and low-income households, and persons with special housing needs.

(2) The department shall require each city and county to submit an annual report that describes the progress being made to meet its fair share affordable housing responsibility. Cities and counties that exceed their fair share affordable housing responsibility shall receive preference points in applications for loan or grant assistance through the public works trust fund under chapter 43.155 RCW, the housing assistance program under chapter 43.185 RCW, and the affordable housing program under chapter 43.185A RCW. In determining whether a city or county is making a good faith effort to meet its fair share affordable housing responsibility, the department may consider a city's or county's effort in reducing minimum lot and frontage sizes, the amount of local effort compared to tax capacity, the submission of any bond and levy measures to the voters for affordable housing, the identification and elimination of regulatory barriers that restrict the development and placement of affordable housing, the enactment of laws controlling demolition, abandonment, and conversion of existing very low-income and low-income housing, the enactment of density bonuses and land use techniques such as cluster housing and planned unit developments, the adoption of a current use classification for assessing low-income housing, and efforts to preserve federally assisted housing developments.

NEW SECTION. Sec. 5. A new section is added to chapter 8.26 RCW to read as follows:

Whenever the state or local public agency demolishes or otherwise eliminates affordable housing as defined in section 103, chapter ‑‑‑, Laws of 1992 (HB 2484) for a public works project, it shall deposit moneys in a local jurisdiction housing replacement fund in an amount equal to the cost of providing an equal number of new affordable housing units for very low-income and low-income households in the same area. The moneys shall be used for acquiring, constructing, or rehabilitating housing units for very low-income and low-income households. Nothing in this section shall require a state or local public agency to pay an impact fee for demolishing housing that constitutes a nuisance or a health or safety hazard to the community.

Sec. 6. RCW 35.21.685 and 1986 c 248 s 1 are each amended to read as follows:

A city or town may assist in the development or preservation of publicly or privately owned housing for persons of low income by providing loans or grants ((~~of general municipal funds~~)) to the owners or developers of the housing. The loans or grants shall be made pursuant to a plan or program authorized by the legislative authority of the city or town((~~. They may be made~~)) to finance all or a portion of the cost of construction, reconstruction, acquisition, or rehabilitation of housing that will be occupied by ((a)) one or more persons or ((~~family~~)) families of low income or relocation assistance for such persons or families. As used in this section, "low income" ((~~means income that does not exceed eighty percent of the median income for the standard metropolitan statistical area in which the city or town is located~~)) has the same meaning as in section 103, chapter ‑‑‑, Laws of 1992 (HB 2484). For the purposes of this section, "owner" includes a lessee under a ground lease or master lease. Housing constructed, acquired, or rehabilitated with loans or grants made under this section shall not be considered public works or improvements subject to competitive bidding or a purchase of services subject to the prohibition against advance payment for services: PROVIDED, That whenever feasible the borrower or grantee shall make every reasonable and practicable effort to utilize a competitive public bidding process.

Sec. 7. RCW 36.32.415 and 1986 c 248 s 2 are each amended to read as follows:

A county may assist in the development or preservation of publicly or privately owned housing for persons of low income by providing loans or grants ((~~of general county funds~~)) to the owners or developers of the housing. The loans or grants shall be made pursuant to a plan or program authorized by the legislative authority of a county((~~. They may be made~~)) to finance all or a portion of the cost of construction, reconstruction, acquisition, or rehabilitation of housing that will be occupied by ((a)) one or more persons or ((~~family~~)) families of low income or relocation assistance for such persons or families. As used in this section, "low income" ((~~means income that does not exceed eighty percent of the median income for the standard metropolitan statistical area in which the county is located~~)) has the same meaning as in section 103, chapter ---, Laws of 1992 (HB 2484). For the purposes of this section, "owner" includes a lessee under a ground lease or master lease. Housing constructed, acquired, or rehabilitated with loans or grants made under this section shall not be considered public works or improvements subject to competitive bidding or a purchase of services subject to the prohibition against advance payment for services: PROVIDED, That whenever feasible the borrower or grantee shall make every reasonable and practicable effort to utilize a competitive public bidding process.

Sec. 8. RCW 82.02.050 and 1990 1st ex.s. c 17 s 43 are each amended to read as follows:

(1) It is the intent of the legislature:

(a) To ensure that adequate facilities are available to serve new growth and development;

(b) To promote orderly growth and development by establishing standards by which counties, cities, and towns may require, by ordinance, that new growth and development pay a proportionate share of the cost of new facilities needed to serve new growth and development and that new development that reduces the supply of housing for very low-income and low-income households contribute to the cost to the community of developing replacement housing for low-income households; and

(c) To ensure that impact fees are imposed through established procedures and criteria so that specific developments do not pay arbitrary fees or duplicative fees for the same impact.

(2) Counties, cities, and towns that are required or choose to plan under RCW 36.70A.040 are authorized to impose impact fees on development activity as part of the financing for public facilities, provided that the financing for system improvements to serve new development must provide for a balance between impact fees and other sources of public funds and cannot rely solely on impact fees.

(3) The impact fees:

(a) Shall only be imposed for system improvements that are reasonably related to the new development;

(b) Shall not exceed a proportionate share of the costs of system improvements that are reasonably related to the new development; and

(4) Impact fees may be collected and spent only for the public facilities defined in RCW 82.02.090 which are addressed by a capital facilities plan element of a comprehensive land use plan adopted pursuant to the provisions of RCW 36.70A.070 or the provisions for comprehensive plan adoption contained in chapter 36.70, 35.63, or 35A.63 RCW or for replacement housing. After July 1, 1993, continued authorization to collect and expend impact fees shall be contingent on the county, city, or town adopting or revising a comprehensive plan in compliance with RCW 36.70A.070, and on the capital facilities plan identifying:

(a) Deficiencies in public facilities serving existing development and the means by which existing deficiencies will be eliminated within a reasonable period of time;

(b) Additional demands placed on existing public facilities by new development; and

If the capital facilities plan of the county, city, or town is complete other than for the inclusion of those elements which are the responsibility of a special district, the county, city, or town may impose impact fees to address those public facility needs for which the county, city, or town is responsible.

(5) Any jurisdiction authorized to impose impact fees under this section may also impose, on any development activity that involves the demolition of a structure previously used as low-income housing, or the conversion of any such structure to use other than low-income housing, a housing replacement fee. The housing replacement fee may not exceed the estimated cost to the jurisdiction of offsetting the impact of the development activity on the supply of low-income housing in the area in which the development is located. Any housing replacement fee shall be calculated by the jurisdiction in accordance with standards adopted by ordinance or regulation. All replacement housing fees shall be used to provide or finance low-income housing in the manner authorized by RCW 35.21.685 or 36.32.415.

After July 1, 1993, continued authorization to collect housing replacement fees shall be contingent on the jurisdiction adopting or revising a comprehensive plan in compliance with RCW 36.70A.070, and in compliance with the local jurisdiction's fair share affordable housing goal pursuant to chapter 36.70A RCW.