Kirkland Planning Commission Special Meeting – May 31, 2023: Affordable Housing Requirements for NE 85th St Station Area Plan

The Kirkland Planning Commission held a special study session on May 31, 2023, to discuss affordable housing requirements for the NE 85th Street Station Area Plan. No decisions were made; the commission directed staff on which options to draft into the code for the public hearing scheduled for June 8, 2023. The meeting included public testimony, staff presentations, and extensive deliberation among commissioners.

Public Comments & Testimony

• Jessie Clawson, McCullough Hill, representing MainStreet Property Group, urged the Commission to get incentive zoning right to ensure affordable development. She expressed concern that the current proposal at 50% AMI would not result in economically feasible projects and noted that Seattle’s MHA program is not mandatory inclusionary but has a fee-in-lieu option that successfully funded affordable housing.
• Cliff Cawthon, Advocacy & Policy Manager, Habitat for Humanity Seattle-King and Kitsap Counties, and Co-Chair, Eastside Affordable Housing Coalition, highlighted the opportunity to incentivize more affordable housing, including future homeownership, and advocated for multiple tiers of affordability, including at least 80% AMI and below.
• Kim Faust, MainStreet Property Group, presented an option of 10% at 50% AMI or 20% at 80% AMI, which she argued would provide housing for more people (e.g., teachers, firefighters) who qualify at 80% AMI but not at 50% AMI.

Discussion Items

The primary agenda item was a study session on the NE 85th St Station Area Plan Affordable Housing Requirements. Deputy Planning Director Allison Zike introduced the topic, and Planning Director Adam Weinstein framed the discussion, emphasizing the long-term (20-year) buildout, the staff recommendation of 15% at 50% AMI, and the challenge of balancing short-term feasibility with long-term affordability. Mike Stanger from ARCH presented case studies from other cities (Seattle, Redmond, Bellevue) and answered questions on housing subsidies, progressive affordability, and inclusionary zoning effects.

Commissioners debated various options:

• Staff recommendation: 15% set-aside at 50% AMI for rental units, with alternative compliance options.
• Developers’ suggested option: 10% at 50% AMI or 20% at 80% AMI.
• Pioneer/catalyst provisions: first 10% of units (about 624 units) subject to existing 10% at 50% AMI, then a new requirement.
• Commissioner proposals for flexibility, caps on 80% units, and gradual phase-in.

Key points from commissioners:

• Commissioner Allen supported deep affordability at 50% AMI, arguing that many workers (teachers, service workers) earn below 50% AMI.
• Vice Chair Reusser favored flexibility and a tiered approach (e.g., 10% at 50% or 20% at 80%) to encourage development.
• Commissioner Heiser expressed concern that higher requirements could deter development entirely, noting Kirkland already has a strict requirement (10% at 50%) compared to Redmond (10% at 80%).
• Commissioner Tymczyszyn favored a phased approach (Option A: pioneer provision with 10% at 50% for first 10% of units, then 15% at 50%) but also supported a flexible option with a cap on 80% units to ensure some 50% units.
• Commissioner Rutherford suggested a gradual increase over time to avoid a sharp jump.
• Chair Rozmyn emphasized the need for both 50% and 80% units and a city funding mechanism to bridge gaps.

Key Outcomes

The Commission adopted two motions to direct staff on drafting the code for the public hearing:

1. Main Motion (Rozmyn, seconded by Tymczyszyn): Require flexible affordable housing set-asides for Station Area projects: either 10% of units at 50% AMI or 20% of units at 80% AMI (or a mix calculated by staff). Additionally, recommend that the City explore using Station Area revenue to fund housing grant programs for residents earning below 80% AMI.
2. Amendment (Tymczyszyn, seconded by Rozmyn): Establish a cap on the number of units that can be provided at 80% AMI, with the final number left to staff discretion. The amendment passed 5-1 (opposed: Heiser).
3. Final Vote on Main Motion as Amended: Passed 6-0.

The commission also noted that additional information, including regional comparison slides and examples of unit mixes, would be provided at the public hearing on June 8, 2023.