Planning Commission favors aggressive impact-fee reductions for affordable housing, backs change-of-use exemptions

Bothell staff presented a draft update to the city's transportation impact fee (TIF) study at the Planning Commission meeting on Oct. 1, seeking guidance on (1) whether to adopt more aggressive fee reductions for affordable housing and (2) whether to exempt minor "change in use" projects from impact fees. Commissioners indicated general support for the more aggressive reductions and for creating a limited change-of-use exemption aimed at small, non-structural conversions that activate downtown and neighborhood commercial spaces.

What staff proposed: Boyd Benson, utilities and development services manager, and Steve Morikawa (city engineer), with consultant Carmen Quan, explained that the draft study identifies about $370 million in candidate transportation projects from the 2024 comprehensive plan and estimates roughly $99 million in fee-eligible costs for a 12-year planning horizon. Using that project list and trip-generation assumptions, the consultant calculated a per-person-trip fee equivalent to roughly $9,900. That calculation produces draft per-unit fees similar to today’s rates: approximately $13,000 for a single-family home (about an 11% increase from current) and $5,400 for a multifamily unit, with a 10% reduction applied in areas near frequent transit or inside growth centers.

Affordable-housing reductions: Staff presented two reduction packages for affordable units. The "lower" package proposed a 10%…