Liberty Lake staff say city has adequate zoning capacity but ADU, topography and fees limit affordable options

Lisa, the city planner, presented a draft Land Capacity Analysis (LCA) and told the Liberty Lake City Council on Feb. 4 that the document must remain a draft until county adoption of the housing allocation and related environmental review. She said the LCA is foundational to the comprehensive plan and will inform utilities, schools, parks and transportation planning.

The presentation laid out how the Department of Commerce housing allocation tool (HAP) apportions need: roughly 60% for future growth, 30% for cost‑burdened households and 10% for homelessness. Lisa said the city’s allocation implies roughly 3,500 housing units across income bands for 2020–2046 and that the city has already permitted or built a substantial share: 902 units constructed since 2020 and about 4,200 units counted as entitled. After applying Spokane County’s 30% market factor and other deductions, Lisa reported an estimated 636 potential units on vacant residential and mixed‑use parcels.

Lisa cautioned that physical constraints reduce realistic build‑out in some areas. She cited eastern parcels with 30% slopes that will require reasonable‑use demonstrations and could be difficult to develop. She also noted data issues in parcel records that make distinguishing zero‑lot‑line townhomes from single‑family homes difficult.

Council members pressed staff on specific program types. On accessory dwelling units, Lisa said ADUs are allowed citywide but face a major disincentive: the sewer and water purveyor charges a separate connection fee of about $10,000, which often leads owners to install kitchenettes instead of full kitchens. “It’s pretty pricey,” Lisa said, explaining this helps explain the low number of recent ADU permits and that code changes could reduce non‑zoning barriers.

Lisa underscored the LCA’s role as a demonstration of zoning capacity, not a mandate to build housing. She outlined potential tools if the market does not deliver needed units, including tax increment financing and a small city affordable housing fund (roughly $47,000–$50,000 annually). The city is also required to review progress after five years and will include implementation measures in the final comprehensive plan.

The planning commission recommended the draft LCA for adoption for planning purposes; staff asked council to approve dissemination of the draft to partner agencies for review of utilities, energy and school capacity.

The council asked staff to return with follow‑up on ADU permit data, specific site constraints, and how the LCA integrates with upcoming transportation and parks studies.

The city stressed the analysis remains a draft while the county completes its environmental process.