Council holds public hearing on inclusionary‑zoning housekeeping ordinance; staff proposes fee-in-lieu adjustments

The Everett City Council opened a public hearing Jan. 14 on a housekeeping amendment to the Everett 2044 comprehensive plan (council bill 2512-91) that would, among other changes, add an inflation provision to fee-in-lieu rates and create an owner-occupancy fee-in-lieu option.

Planning staff explained the draft would index the fee-in-lieu to the CPI‑U and offered a reduced owner-occupancy fee ($9 per sq. ft.) versus the standard $15 per sq. ft. staff initially proposed. To ensure owner occupancy, staff originally included a 12‑year covenant but said that had raised concerns; alternatives proposed include requiring units be sold separately or other enforceable mechanisms to prevent bulk resale to rental operators.

Russell Joe of Master Builders spoke in the public hearing and urged council to approve lowering the owner-occupancy fee from $15 to $9 per sq. ft., saying it helps equalize opportunities for homeownership in South Everett. Several councilmembers asked detailed questions about how the reduced rate would interact with affordability standards (staff said ownership-product affordability would be set at 80% of area median income for 20% of units) and about displacement risk. Councilmember Ryan said he plans to bring an amendment next week that would make the homeownership fee-in-lieu applicable only to new housing developments within the identified subareas, not to tear-down/rebuild projects that could drive displacement.

The council closed the public hearing by voice vote and will consider amendments and next steps at subsequent meetings.