It’s been six months since the Bainbridge City Council voted to develop the Suzuki property with an emphasis on affordable housing, and picked Olympic Property Group as the developer. With the housing crisis raging on throughout the Puget Sound region (see, e.g., here, here, and here, and the island’s Housing Needs Assessment, here), Bainbridge Island has made little progress toward easing its affordability problems. And that lack of progress comes after more than a decade of inattention, as I wrote in March, when I noted that since 2003, the island has increased its income-qualified affordable housing stock by only 66 units.
But maybe there’s some good news after all. While progress on the Suzuki property has been bogged down in the particulars of an ecological study, the drafters of the Housing Element of the Comprehensive Plan update have done some promising work of their own.
The drafting committee has come up with concrete programs with a track record for helping to alleviate the housing cost burdens embedded in a community where the median single-family home price exceeds $750,000 and rental vacancies are near zero.
Among the ideas: amend the City’s development rules to encourage innovation such as tiny houses, micro units and cottage housing; expand opportunities for infill in Winslow and the Neighborhood Centers; and allow the creation of small lots and smaller footprint homes.
One idea in the draft Comp Plan has been especially popular in other communities: the Multi-Family Property Tax Exemption (MFTE) program. Established by state statute, this program allows local governments to exempt multi-family housing developments from property tax for 12 years if at least 20% of the units are rent-restricted for income-qualifying tenants. This program has been adopted by cities across Washington, both large—Seattle, Tacoma, Spokane, Bellevue—and small—Bellingham, Moses Lake, Yakima, Shoreline, Bremerton. (more…)