One of the many complex facets of subsidized affordable housing is the question of where it should be located. Ideally, every neighborhood should maximize equitable access to opportunity by accommodating a complete and balanced spectrum of household incomes. But the conversation can’t end there, because getting real about that ideal means grappling with thorny cost versus benefit choices.
The first cost reality to consider is that the more expensive the neighborhood, the more subsidy it takes to provide an affordable housing unit—in many cases a lot more. As an example, according to the Seattle Office of Housing, the maximum rent for a 1-bedroom apartment affordable to a household earning 80 percent of area median income (AMI) is $1301 per month. In a typical Seattle neighborhood a new market-rate 1-bedroom might rent for let’s say $1400 per month, which means the required subsidy is about $100 per month. But in an expensive neighborhood such as South Lake Union (SLU) in Seattle, a 1-bedroom unit is more likely to rent for something like $1800, which translates to a subsidy of $500 per month. Assuming a 50-year commitment, for a $300,000 investment the City gets either five subsidized units in a typical neighborhood, or just one subsidized unit in SLU.
On the benefits side, there is no question that when housing prices get too high in successful urban neighborhoods, people with lower incomes may lose access to a wide range of important resources, including jobs, transportation, education, health, safety, open space, community groups, entertainment, and recreation. Access to good transit is particularly important because the expense of relying on a car ownership sucks up a larger portion of the income of poor people (see footnote). These are all very real social justice issues.
The most commonly proposed solution is regulation that requires developers to include affordable units in their projects and absorb the cost of the subsidy—so called “inclusionary zoning.” Legal opinion differs on the legality of pure inclusionary zoning in Washington State, so the usual alternative is “incentive zoning” that grants “bonus” development capacity in exchange for including affordable housing in the project. Most programs also have the option of a fee “in-lieu” of including on-site affordable units, and in Seattle many advocates want fees raised so high that developers are compelled to choose the inclusionary option, since that is the only sure way to ensure economic integration in expensive neighborhoods. But given that in Seattle some developers are already deciding that the extra capacity is not worth the fee at the current fee levels, a major hike in the fee would all but guarantee that bonus capacity would be left on the table and no affordable units would be built.
The City of Seattle has a goal that 37 percent of all housing should be affordable to households with incomes at 80 percent of AMI and below. It’s a huge leap to assume that that goal should also apply to every Seattle neighborhood on an individual basis, but nevertheless Councilmembers Licata, O’Brien, and many others did just that when recently pushing for higher developer fees in SLU. That scenario might be best in an ideal world, but as discussed above, it’s going to cost a lot more to cover the subsidy for those units in SLU than it would for units located in less expensive neighborhoods. And if it means the City ends up with a lot more affordable housing elsewhere, would it really be such a terrible thing for people to commute to SLU from other neighborhoods, just like the tens of thousands from across the income spectrum who take the bus into downtown from all over Seattle every day?
Once that first dubious leap is made, it leads to another—that the burden of paying for all the affordable housing to be built in SLU should fall on private developers, in the form of either fees, or inclusionary affordable units built into market-rate projects. The City estimates a need of 4,200 affordable units for SLU’s workers by 2031, and if we assume for argument’s sake that these units would have to be subsidized by $500/month for 50 years, that comes out to about $1.3 billion that would have to be extracted from new development—in just this one neighborhood. For perspective, that $1.3 billion is about ten times Seattle’s 7-year housing levy that spreads the tax burden to every property owner in the City.
The above expectations are a recipe for counterproductive results: Incentive zoning simply doesn’t have the capacity to generate that scale of subsidy, and if requirements continue to be expanded in the vain hope of doing so, the resulting encumbrance on development will end up so high that most if not all developers will have no choice but to decline to build additional capacity. And that would result in either zero new inclusionary affordable housing, or zero in-lieu fee revenue to fund affordable housing, as well as reduced housing supply that would aggravate affordability across the board and compromise local and regional sustainable growth goals.
Seattle cannot hope to make real progress on affordable housing when there is such a massive gap between policy goals and the resources available to achieve them. While there is a strong consensus on the need and value of affordable housing, the path to that end remains unclear. Most of the basic questions are unresolved: How much do we need to subsidize and at what affordability levels? How much will it cost? Where will the money come from? What are realistic limits given budgetary constraints? What are costs versus benefits compared to other demands on public dollars? How do we even define what affordability means?
Closing the gap between aspirations and limitations calls for an integrated, system-oriented effort to set realistic goals, establish new funding sources for subsidy, and accelerate the production of housing supply in the private market.
The most straightforward piece of the puzzle is increased housing supply that puts downward pressure on prices across the board and reduces the gap that has to be covered by subsidy. And all it takes is avoidance of policies and regulations that place unnecessary encumbrances on development, so that the private market can do what it does best—innovating to meet demand with efficiency and reduced cost.
Given political sensitivities, recalibrating goals is likely to be more challenging. It might mean acknowledging that subsidy should be focused in less expensive neighborhoods to get the most housing for the money. Or reconsidering whether affordable housing for the 80% AMI income range should even be subsidized at all. Or redefining affordability to account for the reduced transportation costs in transit-rich locations.
But without a doubt, by far the most challenging piece of the puzzle is funding. Step number one for Seattle is to recognize that programs such as incentive zoning that tax new development are not only counterproductive to their own intent, but will never come anywhere close to meeting the need even in the ideal case (that doesn’t exist). The Housing Levy spreads the burden more fairly, but it too falls woefully short of the financial need.
It will be a massive undertaking to establish new sources of funding for affordable housing subsidy that are commensurate with the need, but the simple fact is it must be done. I don’t have all the answers, but hope to expand the conversation in future posts, and I want to challenge everyone to come up with innovative ideas. Because I am sure that Seattle will fail on affordable housing if we don’t start thinking much bigger than we have been.
Footnote: Another commonly cited reason to support inclusionary affordable housing is the reduction in greenhouse gas (GHG) emissions resulting from fewer low-income people having to commute long distances by car from places with cheaper housing. However, this reasoning overlooks the fact that when an inclusionary unit is produced through incentive zoning, it replaces a market-rate housing unit. And since the people that would have been living in the eliminated market-rate unit are potential car commuters too, the inclusionary unit is unlikely to result in a net reduction in driving or GHGs. It also overlooks the fact that in a city such as Seattle with good transit, commuting to a job center from another city neighborhood need not involve a car at all.
GHG reductions are primarily determined by the total amount of housing that is added to a transit-rich, mixed-used neighborhood. (And that’s one of the many reasons why it’s so important to minimize policies—such as taxing new development—that impede the production of housing.) At the scale of the entire City, a lack of affordable housing can be expected to lead to greater GHG emissions caused by longer car commutes from beyond Seattle. But at the individual neighborhood scale, climate change is not a defensible rationale for inclusionary requirements. Of course that doesn’t negate the potential equity benefits.
In a previous post I probed the dark depths of Seattle’s Land Use code to critique the convoluted, but lawyer-approved logic that is officially put forth to make the case that additional development capacity causes adverse impacts that must be mitigated by developer fees. But most people who support exacting developer fees to pay for public benefits have a rationale that’s less arcane, though trickier to unpack.
The basic idea is that when a city changes regulations or makes public investments that increase the value of development, then the public has a right to capture some of that value to use for much-needed public benefits such as affordable housing. It all sounds quite reasonable on the surface, but unfortunately, upon closer examination it becomes hard to ignore that this approach is likely to be self-defeating.
The most common instance is when a city changes zoning to allow more development capacity, which lets a developer build a larger building and presumably make more money. That value is a viewed as a public gift to the developer, which justifies the public taking some of it back in the form of a special fee.
One hole in the above rationale is that an upzone doesn’t really create any value at all—it merely removes regulations that were preventing value from being realized. The actual source of the value is demand for new buildings from people who want to better their lives by living and working in a great city. Furthermore, existing zoning was not written in the sky—it’s a more or less arbitrary restriction that destroyed potential value when it was enacted.
But the fundamental flaw in the rationale for charging a fee for additional development is that the reason upzones are done is not to benefit developers, but to enable outcomes that benefit everyone—at the local, regional, and even global scales.
The debate is over: Absorbing growth in urban centers is the first and foremost strategy for sustainable development in growing places such as the Puget Sound region. That’s why cities upzone.
But when we put a toll on the additional capacity granted by an upzone it totally contradicts the original intent. The reality is that such encumbrances can be expected to either drive up rents or, if the fees are high enough, cause developers to opt against building additional capacity. And every new housing unit that is not built in a dense, transit-rich urban center means one more housing unit that is likely to end up in a less sustainable place. And every potential housing unit that is not built in a high-demand market such as Seattle means housing supply becomes more restricted and prices rise faster, hurting everyone, especially the poor.
Likewise, public investments in roads, light rail, or parks benefit everyone, not just developers who have projects nearby. In fact, one could argue that businesses gain a lot more than developers do from mega road projects such as Seattle’s deep bore tunnel, since transportation improvements are all about providing better access to jobs for commuters. Of course all businesses—including development firms—already help pay for public investments through existing taxes. And the higher property value and new jobs that result from development projects generate even more revenue from those existing taxes, property tax in particular. Indeed, for any given piece of land, the greater the development capacity, the greater the potential tax revenue. Here again, developer fees discourage maximizing the public benefit from a given piece of land.
Seattle’s expanding light rail system will boost the value of surrounding property, but that doesn’t mean it should be a target for extraction. It’s actually a good thing if increased value makes development more attractive, because those areas are exactly where we want development to happen. Light rail investments remain vastly underutilized until there’s lots of housing and jobs built up around the stations. But at the future light rail station in Seattle’s Capitol Hill neighborhood, for example, the City has encumbered the adjacent properties with a heavy list of public benefits—including affordable housing—that will be required as a condition of additional development capacity. Time will tell how realistic those expectations are. (As an aside, a similar scenario of inflated expectations is currently playing out in Yesler Terrace, but that’s a long story.)
For some perspective on what Seattle’s current regulations require from private developers to subsidize affordable housing, the developers of a recently proposed downtown hotel/convention center project would have to write a check for $12.4 million to be allowed to build their desired additional capacity. For comparison, that $12.4 million burden on a single development project is equivalent to almost 10 percent of Seattle’s total seven-year Housing Levy. The burden of the Housing Levy—shared between all of the hundreds of thousands of property owners across the entire City of Seattle and spread over seven years—looks pretty puny in comparison.
All property owners in Seattle are seeing huge personal gains in terms of property value appreciation that is being driven by the success and desirability of Seattle. At the same time, that appreciation is the cause of Seattle’s housing affordability challenges. And that’s why the Housing Levy is a defensible source of affordable housing subsidy that ought to be expanded—it spreads the burden fairly among all those who are basically hanging around and benefiting from Seattle’s success just because they got in first. In contrast, taxing new development unfairly dumps the burden on a very small subset of newcomers who are actually part of the sustainability and affordability solution.
But guess what? Right now, the Seattle City Council is in the process of raising Seattle’s downtown developer fees even higher, just like they recently did as part of the South Lake Union rezone. Neither the Council nor the Mayor’s office seem to be interested in thinking about whether or not taxing new development is a sound policy, or if it could do more harm than good. The only debate is over how much more they can squeeze out of developers.
All in all, it’s pretty simple: A sustainable future hinges on accommodating as many people and jobs as possible in urban centers, and we have no choice but to rely on private developers to build what that requires. That means it’s just really not very smart to treat developers as adversaries. Yet the message Seattle’s policy makers are sending to developers is this: Please build our city so that we can meet our goals for sustainable growth, but we will behave as though your developments are adverse impacts that need to be mitigated, and while you take on all the financial risk, we will impose fees that determine how much profit you can make.
The message ought to be: How can we work with you so that everyone wins? And for one example of that approach look no further than Tacoma, where the lack of development gives quite a different perspective on developers, and where the City is pursuing downtown Subarea Plans that will provide State Environmental Policy Act (SEPA) pre-approval for all development projects. They also removed all off-street parking requirements in their downtown, and created a development authority for the Foss Waterway. In other words, Tacoma is being as proactive as possible to make it easier for developers. And that’s what it’s going to take if Seattle doesn’t want to wait a lifetime for significant development to happen in key locations such as the southeast Seattle LINK light rail station areas, for example, where the real estate market is marginal.
Will making it easier for developers increase developer profit? Yes. But if the increased potential for profit leads to more development projects moving forward, leads to more buildings going up in urban centers where they belong, leads to less underdevelopment of invaluable urban sites, leads to increased housing supply and the resultant downward pressure on housing prices, leads to greater tax revenue that can be used for public benefit such as affordable housing or other social services, leads to more efficient transit and reduced greenhouse gas emissions from cars, leads to a reduction in sprawl swallowing up farms and forests, well, maybe they deserve it?
Though I’ve done no small amount of keyboard clacking questioning the sanity of taxing new development to fund affordable housing (see here, here, here, and here), I’ve not delved much into the official rationale offered up to support it. Not pretty, that rationale. And for a prime example, check out this language on “incentive zoning” in the City of Seattle’s land use code:
The purpose of this section is to encourage development in addition to that authorized by basic zoning regulations (“bonus development”), provided that certain adverse impacts from the bonus development are mitigated. Two impacts from additional development are an increased need for low-income housing to house the families of downtown workers having lower-paid jobs and an increased need for child care for downtown workers.
Further down the page, the intent is restated:
[Affordable] housing provided through the bonus system is intended to mitigate a portion of the additional [affordable] housing needs resulting from increased density…
In other words, those who develop new buildings are being held responsible to help pay for housing and daycare for people who get downtown jobs that are created as a result of that new development. In other words, creating housing and jobs in downtown is a bad thing that must be mitigated by those who do it. Never mind that creating housing and jobs in transit-rich urban centers such as downtown Seattle happens to be a universally established imperative for sustainability.
For an analogy, it’s as if we exacted a special tax on computer manufacturers to subsidize internet service, the rationale being that an additional need for affordable internet service is an adverse impact caused by the production of computers.
In that scenario we’d no doubt hear plenty of protest over how such a tax would increase the cost of production and make computers more expensive for everyone, and how higher prices would hit poor people the hardest and negate the benefit of the subsidized internet service. And I suspect that people would also be a lot more likely to ask why computer manufacturers should be singled out to bear the burden of subsidizing internet service when they are already providing public benefit by making computers.
For the case of affordable housing parallel objections apply, but it’s even worse than the computer analogy because there’s also the risk that developer fees will impede development and suppress housing supply, which will drive up prices even further. Assuming the need for subsidy is real—which in the case of affordable housing I believe it clearly is—the obvious solution to both scenarios is to develop alternative sources of subsidy that don’t compromise the original intent. But since that is likely to involve significant effort, the first step is a come to Jesus about what’s wrong with the current approach (hence my recent obsession).
If downtown Seattle grows, math dictates that there will be more people with downtown jobs, including those with “lower-paid” jobs. Since the City of Seattle has adopted a plethora of goals and policies to promote growth in downtown, then the City of Seattle as a whole should bear the burden of “impacts” such as increased need for affordable housing. By building in Seattle’s urban centers, private developers are only doing what the City supposedly wants them to do, and the fact is, they are the only ones who can do it. In this light, regulations that penalize development—that essentially say “growth is bad” and ignore all the public benefits—are pure schizophrenia.
I acknowledge that the land use code quoted above was a well-intentioned effort to justify a source of much-needed affordable housing subsidy. But can we really afford to ignore the twisted paths down which that rationale leads us? In addition to the fundamental flaws described above, my mind goes dizzy with the implied questions: What would happen to all those “lower-paid” workers absent the new development? Would they be better off somewhere else? Would the City or region be better off if those jobs were somewhere else, say, low-density, car-dependent suburbs? On the other hand, does new development somehow coerce workers into taking downtown jobs? Why stop at housing and daycare? Pretty much everything is more expensive in downtown Seattle—should developers also be subsidizing parking, or lunch?
Another wacky feature of incentive zoning is that it only charges developer fees on the “bonus development.” That means the rest of the building gets off scot-free, even though any perceived adverse impacts related to affordable housing caused by the rest of the building are exactly the same as those caused by the bonus development. (There are legal reasons for this, but that doesn’t make it any less incongruous.) On top of that, in Seattle the relative portions of the building charged versus not charged a developer fee varies widely, depending on what particular zone you happen to be in.
Might it be that a policy that has a baseless rationale, an inherently inconsistent application, and the potential to exacerbate the very problem it’s intended to address, is a policy that needs to go the way of the dodo?
(In a future post I plan to address other commonly cited rationales for placing the burden of affordable housing on new development, including upzones, infrastructure investments, inclusive neighborhoods, and greenhouse gas emissions. Next step: a public discussion on better alternatives for funding affordable housing subsidy.)
If we want to actually make the city affordable for most people—a place where a young person or an immigrant can move to pursue their dreams, a place a parent can raise kids and not have to spend every minute at work—we have to fix the supply problem.
The city in question is San Francisco, but the same holds true for Seattle, except that it hasn’t played out to the same extreme—yet. The quote comes from a must-read piece by SPUR’s Gabriel Metcalf on San Francisco’s atronomical housing prices. It’s simple:
As long as this remains a desirable place to live in a region that is producing a lot of jobs—while at the same time we fail to produce enough housing to accommodate the demand—then housing prices will continue to rise.
And why has this been happening in San Francisco?
But the city did not allow its housing supply to keep up with demand. San Francisco was down-zoned (that is, the density of housing or permitted expansion of construction was reduced) to protect the “character” that people loved. It created the most byzantine planning process of any major city in the country. Many outspoken citizens did—and continue to do—everything possible to fight new high-density development or, as they saw it, protecting the city from undesirable change. Unfortunately, it worked: the city was largely “protected” from change. But in so doing, we put out fire with gasoline.
Here in Seattle the same forces have been at play suppressing the production of housing supply, albeit not to the crazy levels found in San Francisco—but all indications are we’re intent on getting there.
Seattle is a city in which it took eight years of process to implement a rezone in South Lake Union, a place where the City wants to focus growth, and where developers want to build. That kind of uncertainty and delay is the perfect recipe for suppressing supply.
When private developers figured out a way to produce relatively affordable high-density housing in the form of microhousing, Seattle’s kneejerk reaction was a cry for new regulations, nary a second thought given to the fact that regulations would make that housing both more expensive, and less likely to be produced.
In ongoing debates over fees on new development in exchange for increased capacity, Seattle’s electeds sometimes give the impression of being in a competition for who can be the hardest on “fat cat” developers by raising fees the highest. Is it possible that such fees actually do more harm than good because they suppress supply and increase the cost of market-rate housing? Never mind. The fact that some other cities might charge bigger fees is apparently all anyone needs to know.
And that brings us to another reason why we will never win the affordability battle without addressing supply: The cost of subsidized housing:
The problem is, subsidized, below-market-rate units are too expensive to build to help very many people. It costs around $250,000 in government subsidy per unit. You can get a sense of the scale of the cost based on how many people you want to help. Subsidizing affordable homes for 10,000 families comes at a price of tag of $2.5 billion.
Yep, that’s the magnitude of a financial burden we’d be placing on private developers if we enacted inclusionary zoning that requires affordable units in every market-rate housing project. Think that might have bit of an impact on the production and prices of new housing, perhaps?
For another point of reference, Seattle’s 2009 Housing Levy will bring in $145 million over seven years—enough to pay for just 580 housing units, equivalent to about 0.2% of Seattle’s 280,000 total housing units.
That doesn’t mean we shouldn’t try to subsidize what we can. But the huge expense of subsidy does make it all the more clear that increasing supply is an imperative—that is, if we want to have any hope at all of not ending up with a city in which housing is out of reach to a large swath of the populace.
The good news is that increasing housing supply is relatively easy: We mainly just have to get out of the way and let the private market respond to demand. Though some types of “getting out of the way” will take a little effort, as with upzones or streamlined permitting. And when it comes to the inevitable objections from those who oppose change, increasing supply should be given all the weight and priority of a vital social justice strategy, because that’s exactly what it is.
P.S. The other good news is that when we increase supply we’ll also get a more sustainable city, region, and planet… but you already knew that.
Editor’s Note: In debates on affordable housing, those who advocate for increasing housing supply as a solution are often criticized for neglecting social justice. But as Alex Steffen writes below, not only is the production of compact housing in urban centers a broad sustainability solution, it is also an essential strategy for addressing social justice in growing cities like Seattle.
Speculation is simply a bet that demand will outstrip supply and thus drive up the price of the investment in question. There *are* situations where speculation sends a signal to others that prices will rise, and so those others also make speculative investments: if those bets are irrational, we call it a bubble. But if those bets are not irrational—if people will pay those prices—that speculation simply shows that there is a massive gap between supply and demand. Speculation cannot itself raise prices artificially in any sustained way if supply is abundant or demand drops. It disturbs me that people discussing housing policy don’t understand these concepts (or at least think they don’t apply to housing). Increasing housing supply quickly is the only actual solution to rising housing costs.
That said, it’s worth noting that the market always serves the least profitable customers last and worst. If we’re concerned about low-income people (and I think we ought to be), then public housing and/or serious incentivization of non-market-rate housing has to be part or the mix… part of a mix, if we’re smart, that includes every possible incentive to develop more high-quality housing at all income levels as quickly as possible.
As I’ve said before, increasing housing supply is the most important structural social justice issue facing most successful cities.
Alex Steffen is one of the world’s leading voices on sustainability, social innovation and planetary futurism. You can follow Alex on Twitter at @AlexSteffen. This post originally appeared at AlexSteffen.com.
Photo of new market rate housing under construction in Seattle’s Capitol Hill neighborhood by Dan Bertolet. If the thousands of new units hitting the market in this neighborhood were not being built, housing demand would not go away, and the result would be more rapidly rising rents, and more renovation of the neighborhood’s older, cheaper housing stock to rent at higher rates.
With the latest reports of surging housing prices in Seattle, affordable housing is once again a hot topic in wonkland. Both the Mayor’s office and City Council have recently convened committees to explore affordable housing strategies, but unfortunately these efforts are largely focused on approaches that place the burden of providing affordable housing on new development. The problem is that exacting additional fees on new buildings discourages development and increases the cost of production, both of which run counter to the original intent of making housing more affordable.
If Seattle aspires to be truly progressive on affordable housing—and hopes to avoid the fate of insanely priced cities like San Francisco—a serious reassessment is in order, a key component of which must be proper consideration of the housing supply side.
First of all, it cannot be overstated that creating new multifamily housing in Seattle’s urban centers is a public benefit in itself. That a sustainable future depends on concentrating growth in dense urban centers is arguably the most agreed upon and defensible concept in the history of modern urban planning. That means when housing sites are developed below their potential in places like Seattle’s South Lake Union urban center, it’s a 50 to 100 year lost opportunity.
The stupid simple reason the supply side matters for affordability is that increasing housing supply puts downward pressure on prices. This relationship can be obscured, because in growing, high-demand cities prices may rise even as gobs of new housing is built, as is currently the case in Seattle. But despite claims that housing gets a magical exemption from basic principles of economics, it is an indisputable fact that housing prices are heavily influenced by supply and demand, as is verified over and over again by direct experience, e.g:
“More buyers and a limited supply of available homes have lifted prices in most cities across the country…”
“Whitworth manager Chris Garvin said the increases … are reflective of a high demand/low supply rental market in Capitol Hill. With a slew of new apartments coming online next year, Garvin said he expects rents in older buildings to level out.”
When housing demand is very high, it may not be possible to increase supply fast enough to completely turn around rising prices. But even in such cases, greater supply will keep prices lower than they would have been absent that increased supply, and that benefits everyone in the housing market, those on the lower end of the income spectrum in particular.
Still, some affordable housing advocates balk at the supply side because they know that even with limitless supply the private market cannot deliver housing at deep affordability levels. What they are missing is that it doesn’t have to be an either/or scenario: Supply and subsidy can be mutually beneficial. When supply keeps prices in check, it reduces the amount of subsidy required to make up the difference between market rents and rents that lower-income households can afford. The availability of new units also reduces competition for older housing, thereby helping to preserve that lower-cost option.
What those who are inclined to ignore the supply side are also missing is that trying to maintain sufficient affordable housing through subsidy when housing supply is constrained in a high-demand market is like trying to hold back the incoming tide with a broom. How much does suppressing supply aggravate affordability? Consider San Francisco:
Over the last 20 years, San Francisco has added an average of 1,500 new housing units per year— to keep up with demand, we should have built two or three times that many. The inevitable result is a matter of high school economics: With too few apartments and too many people, prices keep going up.
“That didn’t have to happen,” says Enrico Moretti, a UC Berkeley professor whose book, The New Geography of Jobs, argues that restrictive zoning and land-use policies are a prime reason for San Francisco’s housing affordability crisis. He likes to cite a study by economists at the University of Pennsylvania’s Wharton School of Business, which found that, of nearly 2,500 municipal areas across the country, San Francisco is the most restrictive large city of all. That’s no surprise to anyone who follows local politics, where every new development is subject to endless lawsuits, petitions, and NIMBY-funded opposition.”
Many Seattle policy makers like to point out that San Francisco has more stringent requirements on developers to provide affordable housing—including “inclusionary zoning” that requires low rent housing units in new development—not to mention rent control. The implication is that San Francisco is doing a better job than Seattle at tackling affordable housing, and therefore Seattle needs to catch up by emulating them. How’s that working out for ya down there, San Francisco?
What’s lacking in Seattle’s assessment of San Francisco is a recognition of the blatant truth that, with the exception of a tiny percentage of residents who are lucky enough to score a subsidized unit, San Francisco has failed spectacularly at maintaining affordability. And that has everything to do with neglect of the supply side. The suppression of supply has led to an increase in housing prices across the board that dwarfs any gains that may have been made through subsidies derived from “incentive” fees on development or inclusionary units. This is not an outcome a smart city would want to emulate.
Addressing the supply side means rezoning to allow greater development capacity, easing onerous development regulations, cutting fees and delays on permitting, reducing construction costs and developer risk, and generally allowing for more flexibility, options, and variety in the housing market. It also means having the backbone not to pander to naysayers who will always find some reason to oppose pretty much any proposed development project.
Requiring subsidized units or increasing the “incentive” fees charged in exchange for allowing the development of larger buildings are perfect examples of how to work against the supply side. In the best case, these requirements result in the production of a relatively small number of low-rent units with a commensurate price increase in the market-rate units, and that offsetting of expense from one unit to another does not make for a net improvement of overall affordability.
More typically, however, we can expect such encumbrances to constrict housing production because they undermine financial feasibility. Currently there are at least half a dozen proposed multifamily projects in South Lake Union that are opting to leave significant development capacity on the table because the “incentive” fees are in reality a disincentive. Again, when housing sites are underdeveloped, the sacrificed supply sets back progress on both affordability and sustainable growth.
And given all there is to be gained, do we really need to be worried about developers making money? If potential profits are high, it will attract more private developers into the game and more housing will get built, providing the dual benefit of putting downward pressure on price while also helping us meet our smart growth goals. If development is allowed to respond to the market, eventually supply and demand will move toward a healthy balance, and profits will fall accordingly.
As is widely recognized, even if the supply side is cultivated, subsidies will still be necessary to provide housing that is affordable to very low income households. Seattle’s affordability mission should be to establish innovative new funding sources for subsidy that (1) don’t restrain supply, (2) don’t favor existing residents over newcomers, and (3) don’t sabotage smart growth. Seattle’s Housing Levy and Multifamily Tax Exemption are good existing options. In contrast, taxing new development with “incentive” fees fails on all three counts.
I believe that one appropriately fair new tax revenue source for subsidizing affordable housing would be an additional assessment on single family homes. Seattle has about 2/3 of its land area zoned for single family houses only, which amounts to a huge constraint on increasing housing supply that pumps up prices across the board. Or how about a capital gains tax on the sale of land, which would have the added benefit of tempering land speculation? Seattle is overflowing with smart people. Let’s avoid repeating the mistakes of other cities, accept the challenge to think outside the box, and get this figured out.
Efforts to provide affordable housing are motivated by the desire to foster equitable access to all the valuable advantages offered by vibrant cities such as Seattle. But if the supply side is left out of the equation, you can be sure that equity is going to take the hit.
Dan Bertolet lives in Seattle and is a socialist at heart.
Note: Gerding Edlen’s “Pine + Minor” market-rate apartment building shown in the photo above is participating in Seattle’s Multifamily Tax Exemption program. Twenty-three of its 111 total units are required to be rent-restricted. Sixteen of its 75 studios must be set aside for households earning less than 65%AMI at a total housing cost of less than $986/mo. Seven of its 36 one-bedroom units must be set aside for households earning less than 75%AMI at a total housing cost of less than $1,301/mo. The market-rate units are expected to rent for an average of $1,487 (studios) and $1,792 (1-bedrooms). Thanks to reader Mike Kent for pointing this out. It is also important to remember that the building is also playing a positive role for affordability in Seattle by simply providing new market-rate supply to help meet Seattle’s voracious demand for housing.
Perhaps the most remarkable thing about the image above is just how unremarkable it is. All around the country there are places that look like this; in fact, this is probably a more common situation than the tree-lined sidewalk that we hold up as our ideal infrastructure.
Public health practitioners look at streets like the one above and have gradually come to the conclusion–based on reams of studies–that exposure to streetscapes like it are one of the causes of Americans’ ever-increasing rise chronic disease. In fact, the New England Health Care Institute estimates that our environments influence as much as 20% of our public health outcomes.
As with contagious diseases, researchers have also found that the more proximate you live to this type of environment, the more likely you are to be negatively affected by it. For example, we take it as a given that residents of tropical regions are more likely to get a variety of mosquito borne illnesses if they live near a fetid pool of water. Similarly, Americans are much more likely to have a harder time avoiding chronic diseases that “account for seven of every 10 deaths and affect the quality of life of 90 million Americans” if they are exposed to streets like the one above. As exposure increases, risk increases.
Dr. David Fleming, the Director of Public Health-Seattle & King County (PHSKC), emphasized these points during testimony to the Robert Wood Johnson Foundation in June:
Most deaths today result from diseases and conditions that are shaped by our social and environmental surroundings. Poor health almost any way you measure it is increasingly concentrated in the same locations, making it easy to identify which communities are making people unhealthy and underscoring the importance of place to health. What makes these neighborhoods unhealthy? While the role of clinical health services is vital, medical care alone accounts for only about 10 percent of premature deaths.Neighborhoods create ill health because of their intrinsic community characteristics. Houses and rental units are substandard and contaminated with mold and toxins like lead, streets aren’t safe for walking to school or work because of crime or just a lack of sidewalks, and healthy food isn’t easily available, though high-fat, sugar-loaded processed food is for sale at the corner convenience store.
All of this evidence begs the question: if the built environment is a significant determinant of our public health outcomes, why aren’t health entities–hospitals, HMO’s and clinics–helping to build a better infrastructure that supports sound health outcomes? While public health agencies like PHSKC and the CDC have been leading the way, the private sector has been generally hesitant to directly intervene in the built environment. Yet, public health indicators will continue to decline unless the built environment is changed and cities are already financially constrained.
Dr. Fleming offers some hope, arguing that the Affordable Care Act may have unlocked a key to force the private sector to recalibrate their own financial calculus and compel them to directly intervene in reducing their patients’ exposure to unwalkable streets, unsafe speeds and overly toxic emissions.
In a future of capitated payment for individual health care, health care systems may find that remaining agnostic to the community from which their patients come weakens their bottom line. Instead, targeted investments in neighborhoods with the poorest health may begin to make both good health and good business sense.
So does that mean that we’ll see Group Health sidewalks, Kaiser Permanente greenways and BlueCross/BlueShield skateboard parks in our communities? As a new business paradigm sets in, the data suggests these interventions may become a cost effective way to control private sector costs and improve public health outcomes, resulting in a win for everyone involved.
Brice Maryman tries to stay exposed to healthy environments in his job as a landscape architect with SvR Design.
The design and treatment of the lower floors of buildings have a decisive influence on the life of an urban space. This is something we feel intuitively as we walk along a well-designed block with a variety of uses and plenty of visual interest. To paraphrase the preeminent urban designer Jan Ghel, building frontages are the city’s edge zones that you see closely and experience intensely and where buildings meet and mix with the city. If the ground floors of buildings are designed in porous, transparent and interesting ways, the simple experience of walking down a city street can be energizing.
Accordingly, there are strong reasons for city policy to promote active and interesting ground floors, particularly in our neighborhood centers. Seattle recognizes this in its Design Review Program, which reviews the architecture and design of new developments throughout the city. One of the key Design Review guidelines is the pedestrian environment, which states that “buildings should avoid large blank walls facing the street, especially near sidewalks.”
Though this objective is often met in the development and construction of new buildings, in the actual operation and tenanting of buildings it is occasionally severely lacking. This is no more evident than in the recent wave of bank branch openings in Seattle’s neighborhood centers, many of which are deliberately designed to have large blank facades that make for an unattractive and uninteresting streetscape. I’ve come to think of these new spaces as b(l)anks.
A b(l)ank is a bank branch in a prominent location that is deliberately designed and operated to function more as a billboard than a part of the commercial community of the neighborhood, with large ATM walls and street facing windows obscured by blinds or ads. A prime example of this is at the corner of Fremont Avenue and 34th Street in the heart of the city’s iconic Fremont, where three bank branches now define what should be a lively and interesting intersection.
Given how much time and effort goes into designing, reviewing and constructing buildings to promote transparent and interesting storefronts, it is unfortunate that poor tenant selection can negate much of the benefit of good design and end up being detrimental to the streetscape and consequently the care and commitment people have to their shared space. Having banks in our urban centers is of course quite useful, and building owners are obviously attracted to the income and credit that come with bank tenants. But one can only hope that many building owners and banks will begin to recognize that in an era in which walkable urbanity is increasingly prized, tenanting buildings with uninteresting uses that deliberately create blank facades and turn their backs on the street may be bad business in the long run.
Gabriel Grant is Vice President at HAL Real Estate Investments and is currently an Affiliate Fellow of the UW’s Runstad Center for Real Estate. All photos by the author.
#5. We shop at the same place for clothes.
When I ran into the Mayor at City Hall on the way to sit in on a PLUS committee meeting there, we were both locking up our bicycles and talking about riding in street clothes, and it came out he’d bought his suit at the same place I’d gotten my wool pants — Goodwill. I like a government official who is as thrifty in his personal life as he is in office. McGinn, working collaboratively with Council, has balanced the City’s budget and restored the City’s “rainy day fund.”
#4. He can admit where there is room for improvement.
At the going-away party for a Cascade Bicycle Club employee, a friend asked me about my post here on Citytank, “How Seattle Thwarts Innovative Building“. The Mayor overheard, stepped over and said, “Let me summarize: We suck!” That opened a great conversation on the subject of the Living Building Deep Green Pilot Program in which the Mayor allowed that I was right, that there could be better ways to get more ultra-low energy buildings built in Seattle, and that we seriously needed to make that happen. Humility is an admirable quality in anyone, but especially impressive in an elected official.
#3. Mike is the best candidate.
Here is my take on the others:
Ed Murray: I can’t tell what Ed Murray believes in. Though his message is all “I’ll be collaborative and get things done,” his campaign has been mean and divisive, and from what I can tell about what’s coming out of Olympia these days, he’s not getting a whole lot of done down there. Sorry, not buyin’ it. The fact he’s gay doesn’t mean he should be mayor any more than it means he shouldn’t, though I admit that was a point in his favor for me before I checked out his campaign website and found, well, no vision. I’m more than a bit concerned about his Big Coal and Big Oil major backers.
Peter Steinbrueck: I like Peter a lot. He’s super intelligent and he’s an ARCHITECT, for Pete’s sake. (And an urban planner!) Several friends whose judgment I respect are backing Peter. I do think he’s been painted a little too swiftly and broadly with the NIMBY brush by writers looking to pigeonhole the various candidates for easy reader consumption. That said: Seattle absolutely needs intelligent urban planners…doing urban planning! The skill set for running a city is a different one, I think, than what I’ve seen expressed in his campaign so far, which has been at times stumbling and amateurish. (Going after the dog-owner constituency? Seriously?) An urban planner absolutely ought to have exactly the kind of nuanced views that Peter has. More importantly and unfortunately though, Peter has come down on the wrong side of a couple of issues that are big deals for me. The idea that retaining views of the Space Needle ought to be considered in zoning seems off the wall. And then there’s his endorsement by John Fox of the Seattle Displacement Coalition. The views that Peter would have to have to get Fox’s endorsement are deal-breakers. I was there at the Mt. Baker Community Council meeting where Fox cronies handed out pictures of the slums of Mumbai to illustrate what would happen if the area was rezoned to allow higher density. Peter did–and would again–make a fantastic City Council member. I will get behind him 100% if he ever runs for that office.
Bruce Harrell: I met Bruce when he came to speak just after I did at the Cascadia Green Building Council’s Come Rain/Shine event, a day-long charrette on getting to net-zero water in development and in buildings. He came late, looked kinda bored, said his bit, and left. He seems like a nice guy, but I was not impressed with his commitment to my issues. I don’t know why he’s running.
Joey Gray: I really like Joey. She’s earnest, and principled, and committed to working hard on what I think are exactly THE super-important issues. I wish she was running for Council instead of Mayor. If she was I’d vote for her in a heartbeat.
I listened to the others at AIA Seattle’s Mayoral Forum, and have read about their positions in various articles, but I don’t think Kate Martin, Mary Martin, Charlie Staadecker or Doug McQuaid are particularly contenders in this race.
#2. As a bicycle commuter and ardent advocate for everyday bicycle riding, how could I NOT vote for a candidate nicknamed “Mayor McSchwinn”?
I’ve been car-free for more of my adult life than I’ve not been; I share my office with Cascade Bicycle Club; I ride to work every day; I want my son and his friends to be able to ride on the street safely; I want to live in a city where there are other ways of getting around besides the automobile. Michael McGinn has advanced this cause consistently and well over the last four years, as evidenced by his endorsements from Cascade Bicycle Club, Seattle Bike Blog, and Seattle Transit Blog among others, and I want more of this. (Faster, of course.)
#1. Mike McGinn has put addressing climate change at the forefront of his policies.
This is the central issue of our time. If we act decisively on climate change now, Seattle can lead and export innovative solutions to the rest of the US. If we don’t act now we’ll be playing catch-up, and all of the other issues we’re talking about now in this race will fade into the background as our financial and intellectual resources become increasingly dedicated to adaptation and mitigation of the effects of climate disruption.
McGinn spoke eloquently about climate change at the fundraiser I co-sponsored with Alan Durning of Sightline Institute, Brice Maryman of SvR Design, and Chuck Wolfe, author of Urbanism Without Effort, (paraphrasing): “We are the last generation who can do something about climate change. In 20 years, when my kids ask me what I did about it, do you think I’ll want to say ‘I got along with other politicians’?”
I first met Mike McGinn at the Carbon Neutral Unconference at Mithun, (organized by Alex Steffen and Justus Stewart) not long after he was elected. (Councilmembers Richard Conlin and Mike O’Brien were there too!) The Mayor has been at the leading edge of so many initiatives in the realm of climate change: the Carbon Neutral Seattle study that followed that initial day’s work; developing the Carbon Neutral Action Plan; divesting Seattle from fossil fuel holdings; light rail expansion; road diets; bicycle infrastructure improvement; fighting against the Deep Bore Tunnel. (Which I personally think is certainly showing signs of being a A Very Big No Good Terrible Bad Idea™ — how about those eight lanes of traffic on the waterfront?)
Mike McGinn is a man with principles. He is not a politician, and as such he has taken a lot of flak about that from, well, mostly politicians. McGinn’s principles are my principles, and I deeply believe that those principles ARE worth fighting for, that we must act NOW or pay a price in human suffering later that we cannot bear.
I have learned something about endorsements hanging out with my friends at Cascade Bicycle Club. They base their endorsements solely on how the candidates stand on issues that will affect members of the club. My “club” is climate change. Climate Change has been the central issue of my work in architecture for 20+ years. It continues to be the lens through which I view candidates for office. In those terms, no one else is running for Mayor. I heartily and unequivocally endorse Mike McGinn.
Rob Harrison, AIA, is a Seattle architect and Certified Passive House™ Consultant.
The State of Washington’s Growth Management Act is an important local and regional planning tool, but beyond that, the State plays a minimal role in promoting smart growth. Over in Massachusetts, State lawmakers recently proposed legislation that provides good examples of how Washington State could do more. The Boston Globe editorial board frames the issues well:*
Tidy downtown Winchester, just 20 minutes by train from North Station, should be a prime target for new development. According to one recent study, Greater Boston may need 19,000 new housing units every year just to keep pace with demand. And Winchester would welcome new residents: Town Manager Richard Howard says downtown restaurants and stores are eager to see new residential development on the city-owned lots, and that a planned upgrade to the commuter rail station next year could bring new vitality to downtown. The style of transit-oriented housing would also fall in line with the state’s environmental goals, which call for concentrating residential and commercial development near rail stations.
The obstacle, though, is the state’s dysfunctional ’70s-era zoning code, which sets the parameters for how individual cities and towns plan for development — and, in practice, sets up complex permitting rules and creates numerous opportunities for litigation. The process of securing approval to build new housing in downtown Winchester is so onerous, Howard says, that developers simply won’t bother…
What it amounts to is the worst of all worlds. Sensible, smart-growth housing plans often languish, while single-family homes proliferate on large lots in sprawling suburban subdivisions — one of the few types of housing that can be easily built in Massachusetts under current law. State officials rightly fear that the housing market dynamics squeeze middle-class families so much that they’re endangering the state’s economic health. It also ensures that much of the growth that does occur is unplanned, expensive, and environmentally harmful.
It’s pretty much the same story in greater Seattle, except that it’s more local rather than State regulations that are getting in the way. Another difference is that numerous rail systems are already in place across greater Boston, while much of the planning for growth around transit in the central Puget Sound region is for future stations. In any case, effective planning at the regional scale requires a regional authority that has both big “sticks” and big “carrots,” and that typically means the State. The State legislation proposed in Massachusetts would:
…offer municipalities a raft of enticements to align their zoning policies with the state’s housing needs. Communities that opt to designate a dense-growth zone would get access to state planning money and a leg up in competition for billions of dollars in state sewer and water aid. Crucially, the bill would also allow towns with dense-growth zones to assess extra impact fees on developers to account for the burden new residents create for schools and libraries; easing the common worry that new residents will burden public services should make towns more receptive to new housing. The bill also gives towns that accept dense development zones more authority to prevent construction in other areas. That will deter sprawl-style development, and locals who fear the impact of new construction on open space will have an incentive to support dense-growth zones in their towns.
It would also give towns new authority to limit subdivisions, encourage municipalities to simplify their permitting processes to make approval more predictable, and expand an existing program that awards cash to towns and cities that designate neighborhoods for dense, mixed-income housing.
“Top-down planning” is a dirty word to many who follow urban planning issues—the 2009 Washington State House Bill 1490 (the “TOD bill”) is a notorious recent example of overblown concerns. But the reality is that regional land use planning cannot succeed without programs that apply to the region as a whole. And the most powerful strategy is funding—i.e. a carrot—offered to municipalities that align local planning with established regional policies, as do many of the Massachusetts proposals noted above.
Though more likely to be contentious, the State “stick” should also play a role. Since 1969 Massachusetts has had one of the more extreme examples of that stick applied to affordable housing in its Comprehensive Permit Act, a.k.a. “40B.” 40B allows developers to circumvent local zoning if they are proposing to build affordable housing in a municipality that has a shortage. 40B is far from perfect, and it seems highly unlikely that such a law could be passed in Washington State today, or pretty much anywhere else in America for that matter. But if we’re serious about tackling our region’s housing challenges, we ought to be considering bold, State-level strategies along the same lines as 40B.
As an example of how the State’s carrots and sticks could be applied, consider the widely agreed upon goal in the central Puget Sound region to ensure sufficient affordable housing in locations with access to high-quality transit. Today there are few effective tools to make this happen. What if State funds were made available to subsidize housing in transit station areas, but only for municipalities that zone their station areas to accommodate significant growth? Or how about 40B-style law that applies only to the construction of new affordable housing located within a station area? (One of the flaws of 40B is that it doesn’t regulate where within a given city the affordable housing can be located.)
With its Growth Management Act, Washington State has pushed further than most States to promote smart growth. But local, regional, and global conditions have changed massively in the 22 years since it was enacted. The State—and the central Puget Sound region in particular—is growing up. It’s time for the State and its municipalities to play nice together like grown ups for the good of us all.
*Must be nice to have a newspaper with an editorial board that isn’t stuck in the Leave It To Beaver era.
Boston or Seattle?
…a bright-eyed focus on micro-units and bike sharing and restaurant-driven redevelopment might seem overly idealistic — a distraction from the realities of many neighborhoods.
Boston has an upcoming mayoral election, and the above quote is taken from a Boston Globe editorial on what the next mayor should focus on. The main issues called out in the piece have so many parallels with Seattle it’s worth excerpting a big chunk of it here:
Working through parking anxieties. When Boston was hemorrhaging residents to its suburbs, the city bent over backwards to provide something suburbanites take for granted: free, convenient parking. In addition to launching resident-only sticker programs for street parking in neighborhoods, the city also required developers of new housing to build spaces for cars. Yet minimum-parking rules push up housing costs significantly and squeeze out other amenities, such as outdoor space or extra storage, that tenants might value more. The rules also send an odd message: that Boston won’t accept newcomers if they make it harder for current residents to park for free.These rules are being overtaken by events. Once-utopian ideas like car- and bike-sharing have become part of the local transportation system. Even as the population grows, the number of vehicles being registered in the city keeps falling. Recognizing all this, the Boston Redevelopment Authority has wisely eased up on parking requirements. Will the next mayor go further, or reverse course amid criticism from some neighborhood groups?
Using the market to make housing affordable. In theory, minimum-square-footage rules keep unscrupulous landlords from keeping tenants in Dickensian squalor. In practice, fears that smaller apartments will turn into flophouses aren’t warranted, especially in a city where soaring housing costs pose a far greater danger than urban blight. Allowing smaller units onto the market cuts costs by squeezing more units into the same pricey lots.
Reinventing civic life. In the 1960s, when urban planning meant bulldozing some parts of town and blasting highways through others, Boston’s historic neighborhoods had much to fear from grand schemes from on high. The city learned from that, and now gives neighbors and neighborhood associations a strong voice in decisions that might affect them.
But fending off ill-conceived planning schemes is only a small part of what keeps a neighborhood vital; filling it with a varied mix of people, businesses, buildings, and attractions is the bigger part. Yet in discussions of business licenses, proposals for new housing, and other ideas, neighbors often wield their veto reflexively, and it’s easier for authorities to say no to unusual proposals than to say yes. Weekday Licensing Board meetings or early-evening planning meetings don’t draw in the full range of public opinion; would-be mayors should seek out additional ways — from online forums to social media — to gather input from a broader range of Bostonians.
Encouraging late-night business. Even before all the recent attention on tech workers with 24-hour schedules, people in many long-established occupations — late-shift cops, medical residents, emergency-room nurses — needed places to eat, shop, and work out after the city rolls up its sidewalks at night.
From the perspective of Seattle, two key urban planning issues missing from the above discussion are transit and density, and that’s because Boston is out ahead in both of those departments. In addition to a robust bus system, Boston has an extensive subway, as well as numerous commuter train lines. Boston has almost twice the population density as Seattle, and that not only supports a wonderful walking city, but also makes Boston’s transit systems inherently more viable than Seattle’s.
While it’s important for the future mayors of both Boston and Seattle to take on the objectives quoted above, Seattle’s mayor will have the additional burden of addressing the critical need to expand transit and raise density. For those who believe Boston is a good model for a city, these two core issues should be the primary lenses through which to evaluate Seattle’s candidates.
“I got rid of my car because I was tired of parking,” the Southie resident said, “and now I have a new kind of problem.”
Maybe some day people in cities like Seattle and Boston will get as incensed about a lack of parking for bicycles as they do today about a shortage of parking for cars. That “some day” would indicate major progress toward sustainable urbanism, but it’s still a long way off—no doubt the above front page story in the Boston Globe isn’t generating much sympathy from the average reader.
As a daily bike rider in Seattle for the better part of two decades, the lack of a convenient place to lock my bike has been an occasional minor annoyance, never a major issue. If enough people start riding bikes in Seattle that could change, but I would file that scenario under a good problem to have. A parking shortage problem is a lot easier to solve for bikes than for cars.
As demand for bike parking increases, one solution I would hope to see more of is on-street car parking spaces converted to bike parking, as the City of Seattle has done in a handful of locations. As Sightline’s Alan Durning recently pointed out, it’s perversely unfair that space in the publicly owned right-of-way can only legally be used to store cars.
The Boston bike stats quoted in the Globe article are impressive: from less than a mile to 65 miles of bike lanes in six years. As more and more cities throughout the nation have begun to recognize how investments in bicycle infrastructure can promote economic development, even unlikely cities are getting in on the action, such as Lincoln, Nebraska, where a grade separated bike lane is in the works.
Meanwhile back in Seattle, the private developers are also starting to respond to increasing interest in bikes. As an indicator of future trends, the new Via6 apartments in Seattle have a bike shop at the street level, and biking is a big part of the lifestyle that’s being marketed to potential renters.
If cities hope to stay ahead of the urban biking wave, they’ll have to make ongoing investments in all components of bike infrastructure, including bike parking. And that, as is so often the case for proposed change that challenges the status quo, will come down to electeds having the political backbone to say no the naysayers.
In the world of contemporary urban planning nothing is more universal than battles over parking. Travel 3,000 miles east from Seattle on I-90 and you’ll find familiar debates raging over how much parking should be built with new development.
You’ll also find a similar pro-car bias:
[Boston officials] are deliberately discouraging construction of new spaces.
No! They are only relaxing regulations that require developers to build parking. Nothing is being proposed to actually penalize developers for building parking if they want to.
Not until after the issue has been framed as heavy-handed social engineering does the second paragraph explain all the important reasons why a City might not want to mandate the construction of too much parking:
The goal is to encourage the use of public transportation, and to devote more land and money to affordable housing, open spaces, and other amenities. Officials also say the city’s youthful population is becoming more accustomed to life without a car.
Yes! Though they might have added that cars are also one of the largest sources of greenhouse gas emissions.
The Globe article also provides the obligatory claim by a resident that “the reality is that people here are going to have cars…,” contradicting the demographic trends cited in the article itself. Similarly, in an apparent effort to pander to that misinformed, selfish concern, Seattle mayoral candidate Peter Steinbrueck said at a recent forum that “many of us still have to drive … and I don’t think the City should be in denial about that.”
In a City where the vast majority of public transportation dollars are still spent on car infrastructure, such a claim is laughable, not to mention a straw man insult to those who hope to rebalance a dysfunctional transportation system that has been manipulated to favor cars for half a century.
The people truly in denial are those who don’t understand the importance of transforming our cities away from car dependence, and who cannot recognize that excess parking is one of today’s biggest barriers to sustainable urban development.
There are going to be tipping points: thresholds where we decide that the rutted road we’ve been traveling has, inadvertently, led us astray. Last week certainly saw some cultural tipping points. But recent readings on two fronts in the built environment have us thinking that interesting new constituencies are coalescing around some interesting themes that will reset past assumptions to strategically position us for the future.
More Constrained Ex-Urban Growth
The limitless sprawl of various American urban areas into surrounding farms and resource lands has long been derided for its impacts to the environment (deforestation, species loss, polluted waterways, etc), but more recently, fiscal conservatives like Charles Marohn of Strong Towns have been giving the financial model supporting this type of growth pattern a serious, well-argued drubbing. This week, Charles began digging deeper with a series called Dumb Money. It is wonky, but fantastic.
The hard-nosed fiscal analysis by Strong Towns, based in the heartland, resonates well with the coastal capitalists who read Fast Company. Covering a new report from Smart Growth America, FC reports that the smart growth model, by concentrating growth and capital, has a higher return on investment and offers better economic resilience.
It finds, on average, that smart growth costs 38% less in upfront infrastructure (roads, water, sewers, libraries, and so on). For example, Champaign, Illinois, concluded that smart growth could save $52 million, or 42%, over 20 years.
Then, the report looks at the relative cost of services like fire, police, and ambulances. It finds a 10% saving, on average. Charlotte, North Carolina, for example, worked out that a “smart growth neighborhood” would cost a quarter of a conventional one.
Accelerating this more constrained growth condition may be the loss of one of the economic drivers for the sprawling suburban housing market: the mortgage interest tax deduction, or, as Streetsblog recently called it, The Granddaddy of Sprawl Subsidies. In recent budget negotiations in Washington, repealing this deduction has found resonance across party lines, so we may soon be seeing it disappear from our tax forms.
The opposite ideological flip is happening amongst progressive environmental urbanists. Influenced by more libertarian-leaning writers like Edward Glaeser, writers like Slate’s Matt Yglesias and Sightline Institute’s Alan Durning have recently been calling for “less-regulated urbanism” that would “allow taller buildings, which would accommodate dramatically more people, office space, and shops in the most efficient and desirable locations: close to city centers.”
Sightline’s most recent exploration of how excessive(?) regulations create less-desirable built environments focuses on parking. First, Alan unpacks the perverse parking economics along his Seattle single-family street:
The net effect—one mandatory off-street parking space plus one car-less household—is a one-space reduction of parking supply on my block. Repeat: my obligatory driveway and garage deprive the universe of one on-street slot. This is ironic, but it’s only the tip of the irony iceberg where car-storage is concerned.
If I did own a car to keep in my garage, the net effect would no longer be a net reduction. It would be zero. My driveway subtracts one on-street space; my garage adds it back. Think about that for a while. The 4.6 million single-family houses in cities across the Northwest, and tens of millions more elsewhere, are each required to have at least one off-street parking space. Yet many of these city rules add no net parking spaces to their cities’ supplies. Worse, if you’ve ever narrowly escaped a car backing out of a garage, or almost backed into someone while you were driving, you can quickly grasp the fact that all these millions of mandated off-street parking spaces turn sidewalks into danger zones, especially for children and the disabled.
Then Sightline contributor Alyse Nelson provides a wide-ranging photo essay, entitled Ugly by Law, about the aesthetic impacts of parking lots on the built landscape. Warning: you can’t un-see some of these things.
Brice Maryman is an ideological urbanist landscape architect with SvR Design.
Photo of Seattle’s Capitol Hill neighborhood celebrating the passage of the Washington State gay marriage bill, Nov. 6, 2012, by Dan Bertolet.
Seattle prides itself on its forward green thinking. However, it lags terribly behind on forward green doing. Why is that? There may be other factors endemic to the banking system in the US and the financing of projects, but here are two Seattle-specific issues:
- The City’s most valuable incentive to developers of deep green buildings, the additional height bonus, is at odds with the wishes of many immediate neighbors of these buildings. Thus, each new deep green building is greeted with opposition, instead of excitement and encouragement.
- Because of this opposition, the City sets up barriers to the granting of these incentives instead of providing technical or financial assistance to design teams and developers to help them achieve their deep green goals and grant them the incentives.
Those barriers add time and cost to projects that are pushing the envelope, making it less likely that design teams and owners will pursue the construction of innovative buildings.
City of Seattle rightly grants an incentive for something we desperately want and need, deep green buildings. However, in classic Seattle passive-aggressive style, while the incentive is saying “Yes, please go ahead and do this! We want you to do this!” the path to achieving that incentive is filled with pain and trouble. Why would the City choose to offer a height bonus instead of a financial award? Because height bonuses are free. It doesn’t cost the City anything to allow a developer to increase the height of their building. Once the building is built though, the increased property taxes from the larger building will help to pay for other needed city services.
Councilmember Nick Licata’s Resolution 31400 to establish a Sustainable Building Advisory Board illustrates my second point. On his blog, Licata writes:
In response to concerns raised over the Skanska project [Stone 34] by the surrounding community, the Bullitt Foundation, and Living Building Challenge representatives, I have introduced Resolution 31400. It calls on the City to provide updates and enhancements to its Living Building Challenge and Seattle Deep Green pilot programs. Resolution 31400 also requests the Department of Planning and Development (DPD) to form a standing Green Building Advisory Board to advise the City on sustainable building practices; to screen proposals for eligibility; and to assist in developing new or updated sustainable building programs.
In other words, according to Councilmember Licata’s expressed intentions, the Sustainable Building Advisory Board will be a watchdog group of green building professionals and community representatives charged with making sure no unworthy buildings are granted the height bonus, arousing the ire of neighbors. The Sustainable Building Advisory Board will be punitive in function rather than helpful and educational.
At the meeting of the Planning, Land Use and Sustainability Committee for Resolution 31400 on May 8th, Diane Sugimura, head of Seattle’s Department of Planning and Design (DPD) said that “a handful” of projects are “in the pipeline” that would be affected by the Resolution over the next two years–that is, three or four. Three or four buildings out of how many that will be built in the City of Seattle over the same period?
This is a program that is not working.
This is in stark contrast to Brussells, Belgium, where their extraordinarily successful Exemplary Buildings program has, since 2007, facilitated the construction of 117 ultra-low-energy green buildings–totalling nearly 3 million square feet. Over twenty-three buildings per year! Nearly half of those buildings are Passivhaus. There, winners of the three competitions held since the inception of the program have been given cash awards of $12 per square foot, technical assistance in achieving their goals, and their projects have been massively publicized. (Including a nice book.) Ninety per cent of the financial award goes to the owner of the building, and ten per cent goes to the design team. (See my previous blog post on the head of the Exemplary Buildings program Joke Dockx’s visit to Seattle for more.) For the Bullitt Center, the award would have been about $600,000.
As a result of the success of this program, the government of the Brussells region has mandated that as of January 1, 2015, Passivhaus will be required for all office, institutional and residential buildings, both single- and multi-family built in the 62-square-mile region. (Resolution 31400, like Seattle’s Climate Action Plan, makes no mention of Passivhaus.)
As of this writing in Seattle we have two Living Building Challenge Buildings (out a total of four in the entire United States) and one Seattle Deep Green building under construction. Seattle does have a fair number of LEED-certified buildings, but at 85% of current code, the energy-conserving bar is set very low for City-required-for City-projects-over-5,000-SF LEED Silver, and four out of five of those LEED Silver buildings will have to be renovated by 2050 if we are going to achieve carbon neutrality. (Yes, virtually all. Stockholm Environment Institute’s Carbon Neutral Plan for Seattle postulated that 80% of Seattle’s building stock would have to be renovated to something like Passivhaus standard– that is, to 10% of current code–by 2050.)
How can we encourage projects that meet that carbon neutral goal NOW; that do not have to be expensively renovated within the next 37 years? I suggest a new program similar to Brussells’ Exemplary Buildings program, combined with Passivhaus.
Image credit: Brussels, Sustainable City
The idea that increasing housing supply—building more housing units of all kinds—has a beneficial impact on housing price is still very controversial in Seattle. Intuitively, people know that when there is more of something for sale, the price of it naturally begins to fall. Even so, there is a stubborn view here that making more housing doesn’t have the same effect on housing price. But the fact is, when developers make decisions about when, what, and where to build, the studies they use are based on an analysis of housing supply and demand, and how those factors affect price.
I’ve written elsewhere about academic studies that found reducing or holding supply constant in the face of increased demand definitely results in higher prices.
Still, there is no way to do a side-by-side controlled study of supply and demand on two comparable cities. One can’t take a city and impose limits on supply and hold demand constant while in an adjacent city turn up supply with the same level of demand over five years, then analyze the data. The world can’t always be a laboratory, nor does it want to be.
However, each and every day real estate decisions worth thousands and even millions of dollars are made based on forecasts about housing supply and demand. Where do developers turn when they try to figure out what to build? With lots of money at stake they aren’t likely to just wing it, and even if they wanted to gamble, risk-averse banks and investors wouldn’t let them.
Developers and real estate people use data in studies done by agencies that analyze supply and demand. One local firm, Kidder Matthews, just released a top-line analysis of the apartment market in Seattle. What does their forecast say about housing supply and demand?
Vacancy rates generally have an inverse relationship with changes in rent; as vacancy rates increase the rate of rent growth generally decreases. Over the past twelve months the average regional rent on a per square foot basis increased from $1.21 to $1.28/s.f./month (5.8% increase) in tandem with vacancy falling by 90 basis points.
The basic assumption advisers and decision makers in real estate share is that when it comes to housing (apartments in this case), excess supply—empty units—means lower price. It’s also what real, local, actual, retrospective data show.
What’s the future look like for Seattle and the region for apartments?
Rental rates have returned to historic highs and use of concessions is minimal in most markets. In response, new development has ramped up with an estimated 8,277 new units expected during 2013. Currently, there are more than 13,301 units under construction and a total of 21,989 targeting 2013 and 2014 delivery. Although vacancy has remained at very low levels for the past two years, accelerating future apartment deliveries should begin to put upward pressure on the market vacancy.
When price goes up the financial incentives to develop housing go up too. More people want the product, the price is higher, and new producers want to get a piece of that business. Vacancy rates drop, prices go up, more suppliers enter the market, competition ensues, prices fall, suppliers hold back, prices go up, repeat. That’s how the cycle works, at least for people who put real money into housing.
Market studies are used by developers, lenders, and investors as a map to decide what to build and where and when to build it. How housing supply and demand affects price is not an academic exercise for them—it’s their financial future. Real estate studies based on supply and demand are not dactylomancy; these studies are the most conservative time-tested measure used by the real estate industry to invest and build.
As the economy in Seattle improves more jobs will be created, and with those jobs comes increased demand for housing. Development of more housing—of all kinds—we will positively impact price. It will. Whether we should relax regulation, incentivize new development, and encourage a variety of housing types isn’t debatable anymore—it is a mandate, especially if Seattle intends to sustainably welcome growth and economic recovery.
Roger Valdez is the director of Smart Growth Seattle, where this post originally appeared.
No, this isn’t a minimum security prison, it’s the courtyard at Washington Middle School in Seattle’s Central Area. I asked my daughter if anyone ever goes out there and she said, “I don’t think we’re allowed to.” Sigh.
Dismal, neglected spaces like this send a message to our young people that we don’t care about the time they spend in school. And that’s just one particular instance of an overall lack of quality in the public schools that sends a message to parents that they should look to the burbs for something better.
The people who run diverse urban schools like Washington have a Herculean task just to keep things up and running, so this is no diss on them. But seriously folks, can’t we as a community do better than this?
Photo by the author. This post is part of a series.
The City of Seattle is currently weighing the options for an upgrade to 23rd Ave in the Central Area, the outcome of which will say everything about whether or not the City walks its own talk about creating places for people instead of cars. There is no room for compromise, literally. Due to space constraints, the only way that 23rd Ave can become a street that isn’t a hostile place for people and a dividing gash across the neighborhood is through removal of travel lanes. And to do so means car capacity will be sacrificed.
The choice is clear: people or cars? What’s it going to be, Seattle?
As shown in the video above shot at 23rd and Marion, much of 23rd Ave has four travel lanes squeezed into a 60-foot right-of-way that only leaves room for narrow sidewalks and no buffer between pedestrians and cars. It’s a scary, dangerous, and wretched place to walk. To parents of small children, a road like this is a constant source of anxiety, and for good reason.
I live half a block off 23rd Ave and for 15 years have experienced first hand how it severely degrades quality of life and compromises the City’s goals to create walkable neighborhoods. As I wrote in 2008:
Because walking along 23rd is a such a totally miserable experience, very few people do it, street life is dead, and 23rd is like a black hole cutting across the neighborhood. Pedestrian-oriented businesses fail. And street environments that repel pedestrians have a tendency to become havens for street crime — it is no coincidence that 23rd and Union, as well as 23rd and Cherry and other areas further south on 23rd Ave have had troubled histories.
23rd Ave is one of the City’s most important north-south arterials. But if the City decides that all four travel lanes must be preserved to maintain vehicular capacity, there is pretty much nothing significant that can be done to make 23rd Ave a more people-friendly street—there simply isn’t space.
The only way that 23rd Ave can be tamed is through the removal of travel lanes to open up space for wider sidewalks, bike lanes, or other buffers between moving cars and people on the sidewalk. Such a reconfiguration would also be expected to reduce speeding, which is rampant under current conditions.* But there is no question that removing travel lanes will also reduce capacity and increase traffic backups during peak periods. Complicating the issue further, a lane reduction could also increase travel times for Metro’s #48 bus line.
We can all acknowledge that this will be a difficult decision. Some folks will be outraged over the potential for worse traffic on 23rd Ave. But though it may be difficult, to me the right choice is obvious. Because creating neighborhoods where life without a car is an attractive option is one of the most important strategies for ensuring Seattle will be a city that can thrive through the coming decades of increasing resource constraints and climate change. We need places that are less about enabling cars to tear through on the way to somewhere else, and more about supporting human beings with feet on the ground.
*After I petitioned the City for a crosswalk on 23rd at Marion St about ten years ago the City clocked cars passing through the area and found frequent speeding.
Having recently returned from a trip to Taiwan, including a number of days spent exploring Taipei, I came away with a few personal insights related to urban issues currently being discussed in Seattle. I acknowledge that Taipei and Seattle are quite different. Taipei is a big Asian metropolis that fully embraces its high-density neon-hued 24-hour urbanity. It is the capital of Taiwan and has almost 7 million people in the metro area. The Seattle metro area has half of Taipei’s population and remains, in my estimation, a reluctant big city where emerging urban and longstanding provincial cultural values collide. We embrace certain features of city living (arts, professional sports, a vibrant high-end culinary scene) but simultaneously still seem to fear population density, revere retro-agrarian hobbies like backyard chicken raising and hold sacrosanct inexpensive (or free) on-street parking. Taipei is unabashedly urban. Seattle is moving in that direction, but slowly.
All cities draw on their historic, cultural and political patterns to find their own unique form and organization, which evolve over time, but for millennia urban planners, politicians and developers have drawn lessons from other places to inform and ultimately improve their own cities. As Seattle continues its evolution as a city, here are a few lessons I think we could learn from Taipei.
1. Density requires open space. An inevitable consequence of Seattle’s continued economic and population growth is increasing population density – more people living in multi-family residential (condo, townhouse or apartment) buildings in close walkable proximity to transit and amenities. A key feature of dense but highly livable urban living is open space, where city dwellers can get out and play. Taipei does this very well, with one prominent and relevant example being the vast assemblage of park, bike and walking paths and wetlands that stretches for miles along the Danshuei and Sindian rivers in central Taipei. On a weekend day, the paths are packed with cyclists, walkers, bird watchers, Tai Chi practitioners, families at playgrounds and many sports teams. In many ways it feels much less like a tourist attraction than like the city’s back yard, where citizens come to recreate, relax and enjoy a respite from the crowded city. With the redevelopment of Seattle’s waterfront, we have a generational opportunity to create a similar amenity for our city – not just a place primarily for tourists like our current waterfront, but a place for Seattleites to recreate and consider their own.
2. Don’t be afraid of signage. A city’s primary function, indeed what makes the city humankind’s greatest invention, is to bring people together to exchange ideas, goods and services. Commerce is at the very heart of urbanity. Building signage is nothing more than the city’s various merchants visually announcing what they have on offer. It adds vibrancy, color and life to the streets and in some cases is like a table of contents for buildings – telling you what is inside and inviting you in to explore. Some of Seattle’s best-loved icons are bright signs – the Pink Elephant and the P.I. Globe come to mind – so we have a tradition of embracing signage. Why not let our buildings better express their contents and embrace the fact that our city is a thriving commercial hub with businesses we are proud of?
3. Embrace street food. Far from detracting from the success of sit-down restaurants, Taipei’s street food provides a tantalizingly interesting and appealing feature to the sidewalk (adding new and appealing sensory dimensions of smell and taste) and creates an almost block party like feel as people evaluate, discuss and stand in line for various snacks. These street food carts serve to invite people to be a part of the interesting street life, where they are naturally inclined to shop and eat at other establishments. Further, this sort of homegrown micro-enterprise entails far less cost and risk than opening a bricks and mortar restaurant, meaning street food carts can also allow small entrepreneurs to get a start. Take, for instance, the food cart pod on First and Pike, which has transformed a surface parking lot into an active and interesting sidewalk. Why not encourage more of this?
4. Unconventional retail configurations can not only survive, but succeed in unexpected and appealing ways. One of Taipei’s most striking features is the unexpected variety of retail shops – both their content and configuration. Unlike Seattle, where retail is traditionally found on the ground floor in spaces of at least a few hundred square feet (and often much larger) located on arterial streets, Taipei has many small and narrow retail shops (in some cases just six or eight feet wide and ten to twelve feet deep), narrow shopping alleys with no car traffic, and restaurants and retail on the second and third floors (and in some cases much higher than that). To a large extent, this diverse and finely detailed retail pattern is a reflection of population density. Clearly, Seattle’s current population cannot support the same quantity or diversity of retail as a city like Taipei. But, in many ways, by not fitting into a formulaic retail pattern, these spaces are more interesting, intriguing and inviting. An example here in Seattle is Post Alley or the warren of shops in the Market. Most retail consultants would describe locations with these characteristics are sure failures, yet they work because the adjacent activity, scale and interest draw people in. And, as with street food, small retail footprints and one-off locations allow small businesses to set up shop, with lower gross rent, increasing employment and the retail mix in the city.
One of the most delightful things about travel is that it opens one’s eyes to new realities and possibilities. Though Taipei and Seattle have a great deal that differentiates them and many features of the culture and built environment simply do not translate, there is much we in Seattle could learn and apply to our own city.
Gabriel Grant is Vice President at HAL Real Estate Investments and is currently an Affiliate Fellow of the UW’s Runstad Center for Real Estate. All photos by the author (click on some of them to enlarge).
Having grown up in the suburbs, and as my husband and I consider starting a family of our own, my interest in this topic continues to grow. It seems to peak when I travel to other cities and countries where there is a stronger presence of children downtown than the average American city. For example, seeing Italian mothers toting their children to daycare through the heart of Milan on bicycles made me reflect on my childhood mode of transportation to school. My school bus ride or trip in the family car courtesy of my parents certainly didn’t include a bike ride past a cathedral. Additionally, seeing young Japanese elementary school children, crisply dressed in their school uniforms, independently navigating the Tokyo subway system on their way to school made me think of the first time I independently rode public transportation . . . in college. And seeing high school students run their track workouts through Grant Park in downtown Chicago made me consider the land use ramifications of the typical one-story suburban school and surrounding playfields and single-family homes.
Today, however, certain North American cities are seeing a growing number of parents choose to stay downtown after they have children rather than immediately flee to the suburbs. Thanks to the Seattle Chapter of the American Institute of Architects and their Emerging Professionals Travel Scholarship, I was able to dive head first into my passion and travel to a handful of these cities to see what, if anything, was the secret to creating a family-friendly downtown. I dug into issues of neighborhood design, urban housing, recreation, and transportation. I also looked carefully at the incredibly important link between education and housing for parents, as Jon Scholes recently described on this blog.
After my bags were put away and I had time to synthesize the neighborhoods I visited and interviews I conducted, I noticed a series of trends that are happening nationwide. One such trend is that these new urban parents are organizing to change cities, hoping that they can stay in the downtown neighborhood they love while still supporting the needs of their growing family. They are using their collective power to fundraise for playgrounds and to make their voices heard at school board meetings and city council meetings. I also came away from my travels with a number of suggested policy and design solutions to help make cities, including Seattle, more family-friendly. Those research findings are compiled in a Family-Friendly Urbanism exhibit, currently on display at AIA Seattle’s gallery space through the end of April. (1911 First Avenue, open Tuesday through Friday from 9 am to 5 pm).
Additionally, and most importantly for the future of Seattle’s family-friendliness, AIA Seattle, the Seattle Department of Planning and Development, the Seattle Planning Commission and the Downtown Seattle Association are co-hosting a day-long forum about the topic. Ingredients for Designing a Family-Friendly Downtown will take place at City Hall on April 11th. International, national, and local speakers will be in attendance to discuss housing, education, recreation, transportation, and the market realities of retaining families with children in urban neighborhoods.
Will you join us on April 11th to further the conversation?
Sarah Snider Komppa is an architectural and urban designer and former Seattle Planning Commissioner. She recently finished a year-long research project about family-friendly cities thanks to AIA Seattle’s Travel Scholarship and the support of her employer, LMN Architects.
All photos by the author (click to enlarge).
There’s sharing in our future:
The very thing that makes cities so powerful – their ability to agglomerate – will only be enhanced by the sharing economy. Academics tell us that great things grow out of dense human interaction. Picture what’s possible when those same people are further connected to each other through networks modeled in the digital age and built on the real-world sharing of cars, spare bedrooms and whisks.
I’m already hooked on Car2Go. It has probably nudged up my carbon footprint, but I have no doubt that new carsharing systems like Car2Go will lead to an overall reduction of humanity’s overall environmental impact. Parking guru Donald Shoup is fond of pointing out that the average car is only operating (i.e. not parked) about five percent of the time. Double that to just 10 percent through carsharing, and we might only need half the number of cars.
The building in the photo above houses flex space, including a new shared art workshop called ALTSpace. Coworking spaces are popping up all over the city. Okay, so the bike in the photo isn’t shared, but it soon could be.
And have you heard about Yerdle? Founded by a former Walmart executive and a former Sierra Club president, the goal of Yerdle is to enable peer-to-peer sharing of stuff that could reduce the consumption of new stuff by an estimated $200 billion per year.
More sharing means more bang for the buck, and less stuff means less greenhouse gas emissions—two things that are going to matter more and more in our resource-constrained future.
Photo by the author. This post is part of a series.
Two decades ago Seattle set off on a path to preserve neighborhood mojo, attract jobs, and ensure neighborhoods had a robust supply of urban housing. Neighborhood planning efforts in the 1990’s were predicated on the assumption that to preserve Seattle’s single family neighborhoods, we were going to have to maximize development in our Urban Village neighborhoods and Urban Center neighborhoods to accommodate future population and job growth. After decades of striving towards perfection in transportation planning, we also added that funding transit infrastructure needed to be a core element of neighborhoods designed to absorb the most density.
Creating dense urban housing that attracts families—in the same way a Wallingford Craftsman attracts families—will require a rich mix of affordability, design, and amenities. And I am certainly not the first to point out the logic that more housing inventory makes cities more affordable by offering supply to meet demand. A broader city-wide conversation about the types of housing we want to incentivize to meet our city’s needs over the next 30 years is overdue. But that conversation shouldn’t be shoe-horned in at the eleventh hour, as some Councilmembers are now attempting to do with the South Lake Union rezone. Rather, it should happen with thoughtfulness, technical specialists, and a clearly articulated vision for what we seek to achieve. Housing is a critical component of a carbon efficient, affordable, and livable Seattle, and addressing the challenge is going to take our best thinking, innovation, and leadership.
As our Seattle City Council considers the long awaited South Lake Union rezone, I encourage neighborhood planning advocates to get involved. Density in South Lake Union and other urban centers means preservation of a single family home lifestyle in other parts of our City. It means less sprawl, less regional traffic, and more equity for our infrastructure investments. Now is the time to move the South Lake Union rezone forward and finally enable the kind of development that will bring all these benefits. Lackluster, underdeveloped “bread loaf” projects will fill the void in the short term if we once again make perfection the enemy of good.
Photo of South Lake Union from Eastlake Ave by Dan Bertolet – click to enlarge.
Once upon a time, there was a state that faced an obesity epidemic. In particular, many economically disadvantaged people who lived there were struggling with their weight and as a result they suffered disproportionately from Type 2 diabetes and heart disease. At the same time, the population of the state was growing, and prices for healthy foods – such as fruits and vegetables – were increasing, making them less affordable to poor people.
The State decided to start a subsidized healthy lunch program in schools to make sure that economically disadvantaged children were developing healthy eating habits. At the same time, they granted more land to fruit and vegetable farmers to help them grow more food and meet demand.
When the legislators met to decide this, one of them asked: “But won’t the farmers make more profit if we grant them more land?”
“Yes, potentially,” replied another. “We had better tax the fruit and vegetable production from that new land to make sure that the farmers don’t make too much money.”
“I know,” chimed in a third, “let’s use the money we get from taxing fruit and vegetable production to pay for the healthy lunch program!”
As you might imagine, the farmers were somewhat surprised by this policy decision but for a while they went along with it.
Some years later, the healthy school lunch program was struggling to meet growing demand from a steadily increasing population. The legislators went back to the farmers to announce that they were tripling the level of the tax on additional farmland grants. “But wait,” said the farmers, “if you keep raising the taxes on this additional land, you are working directly against fruits and vegetables being affordable. In the limit, you may make it unprofitable for us to farm this land, and that is not good for our state’s fruit and vegetable supplies.”
So the legislators hired a consultant (who was on the board of the school lunch program) to ask them how much money the program needed, and how much the farmers should provide in extra taxes. The consultant had the very difficult assignment of telling the legislators how much profit farmers should be allowed to make.
One farmer came to see the legislators and said: “Don’t you see, taxing us is not making healthy foods any more affordable to the population as a whole. Growing affordable fruits and vegetables needs to be part of your health policy. You can’t do it all by just giving more money to the school lunch program!”
Another farmer suggested that health is really a systemic challenge. It depends on widespread access to affordable healthy food, a great school lunch program, access to preventive care, and land use planning that makes walkable neighborhoods and healthy lifestyles possible. “We need all these things,” she said. “You need to look at these things all together, and not get less of one, and more of another.”
One of the legislators was not convinced: “Let’s set up a task force of people from the lunch program, and ask them what they need, and how they see the problem.”
“No,” replied the farmers. “The point is, you need to set up a task force that looks at all of these things together, and challenge your task force to come up with a plan and policy that optimizes around health outcomes, not around only the metric of how many students are served by the lunch program.”
Here are some other thoughts the farmers had:
- The task force should have lots of different kinds of people on it: macro-economists, health policy experts, preventive care specialists, grocers, land use planners, farmers, and people from the school lunch program.
- One of the questions the task force should consider is asking farmers what it would take for them to grow more food on the land they have: are there any regulatory barriers that prevent them from maximizing their yield?
- To the extent that revenue streams are needed to fund the recommendations of the task force, it should look at multiple sources of revenue in addition to taxes on fruit and vegetable production. These might include taxes on soda-pop as well as other sugary and fatty foods, or taxes on people who keep their land fallow and unproductive for many years thereby restricting land supply for growing food.
The legislators thought this over. Now this systemic kind of change was not very sexy stuff. It was definitely harder to model and quantify. It was going to take a long time. It was going to be really hard to get front page coverage in the Seattle Times.
But it also made sense. So they did it. And their State was able to grow, and deal with the complexities of that growth without making myopic mistakes. And the State thrived, and its people ate healthier, and they were healthier.
And they all lived happily ever after.
Above image of Politics, Law, and Farming in Missouri by Thomas Hart Benson taken from the cover of Wendell Berry’s What Are People For?
In spite of its name, incentive zoning is a tax and taxes are the opposite of an incentive. We tax cigarettes partially for the revenue, but as a public health intervention it is very successful. The higher the taxes on cigarettes, the lower the smoking rate. By taxing new development we’re sending a message: building more housing is a bad thing and we’ll make it more costly if you do it.
The premise of incentive zoning is like something out of Joseph Heller’s Catch-22. According to the Seattle Municipal Code, building more housing creates negative impacts, especially “an increased need for low-income housing to house the families of downtown workers having lower-paid jobs.”
More housing is a bad thing that has to be offset by taxing that new housing to create housing at a lower price. That’s right, the Seattle Municipal Code, the DNA of the city’s development, is built on the premise that more housing actually makes things worse in the city, so bad in fact that we have to tax it to create, well, more housing.
For some of us it’s clear that this premise is utterly false. What we really need is a true incentive that would coax developers to build more units even though they and their bank might not be sure there is demand for those units. In the real world, developers try to build just enough units to ensure low vacancies and steady rent revenue, no more and no less. True incentive zoning would reduce the risk of building too many units, encouraging an outcome that has broad benefits for the City and region.
But we have it completely backwards. Developers want to build more housing, and we’re discouraging them. If they built more housing, rents would be more competitive and people who earn “workforce” wages might choose to rent in South Lake Union, give up one of their cars, and skip home ownership for a while, setting aside their savings for a home purchase later.
Seattle City Council should back away from the proposals they are now considering to increase the taxes on new development in South Lake Union and possibly throughout downtown as well. Implementing such measures now, when housing demand is rising, will end up turning more newcomers to the region away from Seattle: exactly what we don’t want.
Roger Valdez is a blogger and Seattle resident.
For too long, we’ve been doing it wrong.
Thanks to powerful corporations pushing for a roads-only approach, for decades we have spent most of our money on costly new roads instead of making our existing ones safer for everybody. New roads meant new subdivisions, splattered across our region’s hinterlands.
We forced ourselves into our cars and made our cities less livable for working families and less safe for kids. Families who want to drive less don’t have any options and our neighborhood streets aren’t safe for our kids.
It doesn’t have to be this way.
For nearly a decade people in South Lake Union have been working together on a plan to make their neighborhood better. They have worked with our elected leaders on a plan to invest in making streets safer for everybody and provide everyone with the freedom to get around without a car.
The proposed South Lake Union rezone would create a neighborhood where people can easily and safely walk, bike or take transit to work, school, shops, restaurants, and places of worship.
This is our opportunity to do it right. Our City representatives should stand up for what families need and approve the proposed rezone.
When I moved to Seattle in 1989, I was 22. My first apartment was a studio on Capitol Hill at Malden Avenue East and East Mercer Street. I lived there for six months, then moved into a series of group houses in Montlake and Green Lake. My rent in the group houses was all I could pay back then. Living alone was out of the question on my income. Sharing a room in a house of people met through Seattle Weekly or other classified ads was the way most of my friends were living as well. We were fresh out of college and working multiple jobs to get by.
Today, I live in a single-family house with my kids, and we all enjoy the privacy and space that we are fortunate to be able to have. However, I have not forgotten what it was like to be young, poor, and struggling to find safe, affordable housing.
Choices in Seattle have grown since I first moved here. In recent years, an old model of housing, congregate housing (also known as aPodments) – small, affordable private apartments with some shared living space, such as kitchens — has become popular with builders. Conventional one-bedroom apartments on Capitol Hill run $1,100 or more per month while rents in these units start at about $500-$600 per month including utilities. Property owners have realized that there is a large market of people who can’t afford to rent a conventional house or apartment. These may be students, recent graduates, people going through life transitions, or people who just don’t have the large incomes that are needed to live in conventional, market-rate Seattle housing. Many in this group are happy to live in newly constructed, safe, affordable, small apartments with some shared space.
Congregate housing is privately-developed, de facto affordable housing being built throughout Seattle without public subsidies. Recently, six congregate houses were built on a single-family street near my home in Pinehurst. The buildings are simply constructed and are not beautiful. However, they are new, safe, and affordable, and they give nearly 50 people homes along a bus line near shopping and jobs.
Unfortunately, some well-connected and persistent homeowners in Capitol Hill and Eastlake either never experienced the struggle of finding safe, affordable housing in Seattle or have forgotten what it was like. They have called on Seattle Council Member Tom Rasmussen, who is now considering emergency legislation prohibiting any new congregate housing. They demand for neighbors to have input on what any future congregate housing looks like, where it can be located, and more.
All of the measures that these neighbors are asking for, especially full design review, will only result in the increase in the cost of these units and will likely delay new units from being built. This is at a time when Seattle employers are hiring new workers and rental rates are rising and Seattle City Council is working hard to support affordable and workforce housing. A moratorium on the private development of affordable housing that is working is not what we need right now.
Having many housing options available at a range of rent levels is a simple equity issue. It allows people choices to select their best living arrangement. These small, affordable apartments are a success story. They are working at providing the housing we need. We don’t need to fix them, we need to make it easier to build them.
If you have concerns about the possible loss of affordable housing in Seattle, please reach out to the city council now and share your thoughts.
Renee Staton is a neighborhood activist who lives in North Seattle.
This post originally appeared on SLOG.
Whether from an economic, transportation, housing, or ecological perspective, the central Puget Sound is interconnected. Yet we often divide our region into its component parts—from counties to neighborhoods—to achieve focused outcomes. Doing so is not without reason, but too often we overlook opportunities for achieving goals at multiple scales. The Landscape Conservation and Local Infrastructure Program is an exception; it links urban infrastructure financing with incentives for rural conservation. The City of Seattle is on the verge of showing the region how it’s done in its South Lake Union rezone.
Advocates for the rezone want a great urban place with compact development, mixed-use buildings, housing that is affordable, transportation options, public spaces, and beautiful design that complements preserved landmarks. Thanks to its form of tax increment financing, the Landscape Conservation and Local Infrastructure Program supports this vision by financing infrastructure investments. In South Lake Union it will provide $27.5 million for a community center, green streets, and/or pedestrian, bike, and transit projects.
In exchange, the neighborhood’s growth will generate rural conservation using a real estate tool called transfer of development rights. Development in South Lake Union is expected to conserve over 25,000 acres of farms and forests over the next 25 years, making a local rezone regionally transformative.
We all deserve the opportunity to live and work in a great neighborhood where we have a chance to succeed.
But for much of the 20th Century, thoughtless sprawl consumed our region’s farms and forests. Middle class families were pushed to rural subdivisions, creating longer commutes, more expensive household and infrastructure costs, disconnected communities, and loss of open space.
To change the sprawling patterns of our past, two decades ago the state adopted the state Growth Management Act to encourage growth in our cities while protecting our farmland and forests.
Now is a pivotal moment for our region and the success of our state’s most effective policy in creating livable communities. Over the next 30 years, another 1.5 million people will move to our region. To rise to our climate challenge and to create more equitable communities, we must now build housing, jobs, and services near one another while also maintaining good design practices.
The South Lake Union rezone does this. Thousands of new jobs and housing – including affordable housing — get created. An estimated 25,000 acres of farms and forests get protected. Historic buildings get protected. $27.5 million gets invested in street and community infrastructure.
South Lake Union is a realization of our statewide and regional planning legacy. And now it’ll be part of our legacy to the future. Let’s get it done.
American suburbs are a particularly bad place to be poor. Though poverty poses dire and unjust challenges no matter where it exists, sprawling and auto-dependent land use patterns can exacerbate these difficulties. And this problem is gaining urgency, as more and more of America’s low-income individuals now live in suburbs (or are being pushed there), a phenomenon the Brookings Institute has called “the suburbanization of poverty”.
There are many reasons suburbs make the experience of poverty worse, but first among them is that automobiles are really expensive. Purchasing, maintaining, repairing, insuring, and fueling a car can easily consume 50% or more of a limited income. For someone struggling to work themselves out of poverty, these expenses can wreck havoc on even the most diligent efforts to maintain a monthly budget. With gas now approaching or exceeding $4.00/gallon, a full day’s work at minimum wage sometimes won’t pay for a single tank of gas. The burdens of sprawl weigh heaviest on the poor.
The lower one’s income, the greater is the proportional advantage of living in a walkable, “car-optional” neighborhood. Those with limited financial resources can benefit from walkability the most. But due to the scarcity and cost of urban housing, low-income people are being driven away from walkable urbanism and into auto-dependent sub-urbanism.
In the tables below I have compiled data to illustrate this. I have used walkability ratings from Walkscore.com, and neighborhood apartment rent averages from Zillow.com. The first table shows the walkability vs. cost of Seattle’s most walkable neighborhoods. The second table shows the same info for less-walkable cities in South King County.
The Cost of Seattle’s Most Walkable Neighborhoods
Area Median Monthly Rent
The Cost of Less-Walkable Suburban King County Cities
Area Median Monthly Rent
Low-income individuals and families, those who need it most, are being prohibited from living in walkable neighborhoods in Seattle. We are becoming what economist Ryan Avent has called a “Gated City”.
The reason housing costs are so high in Seattle is simple: lots of people want to live here and there aren’t enough available homes. As we know from basic economics, when the supply of any good is inelastic, and demand rises, so do prices. Accordingly, when housing supply is held constant, or not allowed to grow fast enough, and demand for that housing is high, rents will rise. And poor people will continue to be driven from the city.
The only way to slow this process is to build enough housing to meet the demand, preferably near transit. Incumbent property owners who seek to limit development and additional housing in their neighborhoods are therefore also supporting the de-facto eviction of the poor from the city. They are the “haves” excluding the “have-nots” once again. Though their intentions are not evil, the consequences of their actions are. And opportunistic politicians who position themselves as populist defenders of “neighborhood character” must be defeated. We must intensify our efforts to build this city. It is a just cause.
David Moser is Employment and Housing Coordinator at Neighborhood House. He is also studying public policy in the MPA program at Seattle University.
Photo of pedestrians on Pacific Highway in Seatac by Dan Bertolet.
Dear Seattle City Councilmembers,
In light of the current council considerations regarding the South Lake Union rezone legislation, I’d like to share my thoughts and concerns as a professional and committed stakeholder in this process.
- The proposed legislation is the result of a thorough eight-year stakeholder and technical process: Eight years of public engagement, intensive workshops, a thorough EIS process and a well-received urban design framework all contributed to proposed legislation for the district. Many compromises have already been made since the EIS, including removing height increases in the Cascade neighborhood and panhandle area, and reducing height limits throughout the district. The council was continuously informed and briefed during the process, and several council members participated and contributed as well. While the council needs to conduct a thorough review of the proposal, I encourage you to seriously consider the results of the stakeholder process as well as the comments from the Planning and Design Commissions.
- Timing and economics: Other cities would certainly embrace the fantastic job creation, improved tax base and vitality we are fortunate to have in South Lake Union. The re-zone is crafted to build on this vibrancy and economic success to ensure a complete, sustainable and diverse community. Also Seattle is one of the nation’s top life science and research markets that needs the support this legislation provides. Eight years of hard work have gone into this, and it should move forward while the economic momentum is strong.
- Tower bulk standards: Towers per block, height limits, floor-plate limits, setbacks, view corridors and floor area ratios have been carefully crafted by DPD to create an appropriate urban form specific to this district and less intensive than downtown zones. The stakeholders who were involved during the eight-year process, the South Lake Union Community Council, the Planning Commission and the Design Commission have all endorsed the current proposal. These standards are highly technical and appropriately balance the desire for community benefits from additional allowed development with the desire to encourage the very development that has transformed the South Lake Union neighborhood. While I encourage the council to conduct a thorough review, appropriate consideration needs to be given to the thorough process and the recommendations from the organizations who have been intimately involved in the issue and specifically asked by the council for input. Added requirements are likely to result in fewer, if any projects, proceeding and providing the desired public benefits
- Incentives vs. inclusionary housing: The proposed legislation highly rewards affordable housing as the primary beneficiary in the incentive program. As housing director Rick Hooper says, incentive zoning alone will only meet about 10 percent of the desired affordability goal. New construction cannot carry the burden alone. All neighborhoods and Seattle residents need to contribute, and more time is needed to explore and define the appropriate solution. The council should examine affordable housing incentive criteria on a level playing field across the whole city. While this is an important issue, it should not delay the approval of a single neighborhood’s eight-year process. The current legislation can also have a provision added to accommodate fee-in-lieu adjustments on a regular basis.
In general all of these issues are intertwined with each other. If the rezone criteria and incentives are made too onerous and not taken up by developers, we will simply get less housing in this district. This would be disappointing since one of the greatest concerns of the stakeholders was getting a better balance of residential and commercial development. If we believe in walkable, sustainable urban development that leverages infrastructure investment, we should not create more barriers to developing residential properties in the South Lake Union neighborhood. Alternatively, accommodating future growth in other, less central and development-ready neighborhoods, such as Laurelhurst, Seward Park and Magnolia, will certainly be more difficult and contentious.
The recent reports from Spectrum and Heartland show the lack of consensus on inclusionary and fee-in-lieu programs. Should we consider requiring a single-family home owner adding a detached accessory dwelling unit (this was a recent up-zone) to rent one bedroom out to someone with 60 to 80 percent median income? If not, then why would we ask the more urban, sustainable and responsible form of dense multi-family housing in South Lake Union to be the only one required to be inclusionary? This imbalanced approach must be addressed holistically across the city.
I understand the council wants to secure appropriate public benefit for allowing greater development capacity; however, the proposed legislation already accomplishes this goal. Requiring more will likely cause developers to not take advantage of the added height, and no housing benefits will be realized. Just going to a high-rise construction type can add $50.00 per square foot over wood frame projects. Further fees beyond those proposed or creating mandatory inclusionary housing are likely to jeopardize the financial viability of any tower project, which effectively means most developments will only build to the current “bread-loaf” base capacity. No affordable housing will be the outcome.
Already two developers with large sites have decided to only build to the current zoning and not pursue the proposed rezone option. Only two office buildings are in the advanced queue to take advantage of the re-zone. No developer yet has formally proposed a residential tower. That is a strong indication of the limited market for residential high-rise. If the council creates even less incentive, then the eight-year effort by so many stakeholders will be for naught.
Please pass the legislation as proposed. It’s well vetted and balanced.
Matt Roewe, AIA