Bothell planning commission studies broader incentives for affordable housing code

Senior Planner Ray Sosa told the Bothell Planning Commission on April 15 that staff is proposing a broader package of development incentives for the city's affordable housing code (BMC 12.07) and is seeking commissioner feedback before returning with detailed scales and pros and cons.

"Tonight, I'm here to talk about the proposed changes to our BMC 12.07 affordable housing code," Senior Planner Ray Sosa said, framing the study session as an informational step with no action required. Sosa said the city's comp plan shows nearly half of renters in Bothell spend more than 30% of their income on housing and that, in some cases, households pay up to 60% of income on rent.

Staff described a set of potential incentives'including height bonuses, reduced setbacks, changes to open-space requirements and process-focused incentives'that could be applied beyond existing small downtown overlays. Sosa said staff is exploring whether some or all of those incentives should remain voluntary or be made mandatory, and that the proposal would be brought back with examples and financial pro formas.

Sosa cited one market-rate project in the North Creek area as an example: "It's about 230 proposed units with 10% set aside, meaning that about 23 units will be created," he said, adding that only one project is currently looking to use the proposed incentives.

Commissioners generally supported the goal of increasing affordable units but emphasized practical barriers. Commissioner Westerbeck urged the commission to reduce what he called "regulatory friction" for small and medium projects, recommending that the city reconsider open-space, balcony and parking requirements as well as setbacks and floor-area ratios to help smaller developments pencil out. He cautioned that increased height can add significant costs beyond four stories because of elevator requirements.

"A lot of buildings without elevators are going to be kept to three stories because of that," Westerbeck said, noting that elevator costs can make taller apartments unaffordable to build.

Commissioner Liver raised questions about implementation, financing and neighborhood opposition, saying zoning changes alone may not close the final funding gap for developers. In response, Sosa and Deputy Director Gates said staff will explore long-term funding tools (grants or low-interest loans used in other cities), incorporate the housing action plan public outreach this summer, and work with architects and Public Works to test pro forma assumptions.

Deputy Director Gates reminded commissioners that state law requires mandatory affordability requirements to be "equal to or better than" market-rate feasibility and that staff will benchmark peer cities when proposing mandatory thresholds and AMI levels.

Commissioner Robson proposed studying a fee-in-lieu approach for sidewalks and other frontage improvements so small projects would not be killed by costly, isolated infrastructure upgrades; commissioners discussed whether fees paid into a city fund could be used to complete continuous sidewalks or bike lanes elsewhere.

Sosa said the proposed code changes would not be set in stone and could be updated periodically to reflect market conditions. Staff committed to returning with scale options, pro formas and examples, and to involving Public Works in cost and infrastructure discussions.

The commission took no formal vote on policy changes during the study session. Chair Kiernan closed the discussion and thanked staff; commissioners and staff noted the item will return for further review and public engagement.

The commission then moved on to routine reports and adjourned at 6:41 p.m., with the next meeting scheduled for May 6.