Regional plan assigns large low-income housing need to Yelm; TRPC allocation adopted

Thurston Regional Planning Council adopted a regional housing allocation that assigns Yelm a large portion of the county’s projected low-income housing need and identifies a gap of about 2,000 units the city must address during its comprehensive-plan update.

The allocation, presented to the Yelm City Council by Thurston Regional Planning Council planning manager Lisonbee Osterberg, translates a countywide need of roughly 54,000 housing units for 2020–2045 into jurisdiction-level targets by income bracket. "The law says jurisdictions must plan for and accommodate housing affordable to all economic segments of the population," Osterberg said. The regional council recommended — and adopted last December — a distribution that accounts for population growth rates, existing local capacity and each jurisdiction’s past contributions.

Why it matters: Yelm is growing faster than other jurisdictions in Thurston County, the TRPC analysis showed, and it has proportionally less existing low-income housing stock than larger cities such as Lacey, Olympia and Tumwater. That combination produces the city’s roughly 2,000-unit shortfall in the TRPC estimate.

TRPC staff described the method: the council started with countywide needs by income tier (using 2023 area median income and state guidance from House Bill 1220, 2021) and apportioned those needs across cities and the county. Then TRPC compared each jurisdiction’s existing zoning and development capacity to the assigned need. "We didn't see deficits in most areas; we did find deficits in Yelm, Tenino and Grand Mound," Osterberg said.

Council discussion focused on local impacts and possible responses. Council member Kaminski and others discussed the potential role of condominiums and for-sale product in increasing entry-level supply. Osterberg and TRPC staff cautioned that much new low-income housing requires multifamily capacity and utility infrastructure that is not widely permitted in rural or unincorporated areas, which is one reason the plan concentrates future low-income capacity in urban areas.

Actions and next steps: TRPC’s allocation was adopted at the regional level last December, and Yelm staff must document the regional housing need in the city’s housing element. TRPC recommended that jurisdictions with deficits include strategies in their comprehensive plans — e.g., zoning changes, incentives, or partnerships — to address the gap. "Jurisdictions need to document this need in their housing elements and include policies to promote housing affordability," Osterberg said.

What the city will do next: City staff indicated the housing element will be drafted as part of the comprehensive-plan update and that the city and county will coordinate on the urban growth area. The council did not take a formal vote on policy changes during this meeting.

Ending: TRPC’s allocation frames a clear numerical target for Yelm’s planners and elected officials as they complete the city’s comprehensive-plan update later this year; the council will review draft chapters piece by piece and consider policy options to respond to the deficit.