HomeMy WebLinkAboutORD 5912CITY OF RENTON, WASHINGTON
ORDINANCE NO. 5912
AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING
SUBSECTIONS 4-1-210.A, 4-1-210.6, AND 4-1-210.0 OF THE RENTON MUNICIPAL
CODE, BY EXTENDING AND MODIFYING THE WAIVER OF CERTAIN
DEVELOPMENT AND MITIGATION FEES, AND PROVIDING FOR SEVERABILITY
AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, on August 27, 2001, the Renton City Council approved Ordinance No. 4913
(codified in RMC 4-1-210.13) to allow certain development and mitigation fees for housing that is
for sale to be waived to encourage new owner -occupied housing in Downtown Renton; and
WHEREAS, on February 1, 2010, the City Council approved Ordinance No. 5524 (codified
in RMC 4-1-210.13) to allow certain development and mitigation fees for housing that is for sale
to be waived to encourage new owner -occupied housing in the Sunset Area; and
WHEREAS, on August 1, 2011, the City Council approved Ordinance No. 5617 (codified in
RMC 4-1-210.C) to allow certain development and mitigation fees for rental housing to be waived
to encourage new multi -family rental housing in the Sunset Area; and
WHEREAS, these development and mitigation fee waivers will sunset on December 31,
2018, unless extended by City Council action; and
WHEREAS, on June 25, 2018, the City Council adopted Ordinance No. 5884 to establish
an emergency interim control to temporarily prohibit, subject to specified exceptions, the
acceptance of applications for multi -family housing incentives, including the development and
mitigation fee waivers, and formally requested staff recommendations for revisions to the multi-
family housing incentive regulations, including development and mitigation fee waivers; and
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ORDINANCE NO. 5912
WHEREAS, on August 13, 2018, the City Council held a duly noticed public hearing to
consider the interim control established in Ordinance No. 5884; and
WHEREAS, the emergency interim control measure will sunset on December 25, 2018,
unless subsequently amended by City Council; and
WHEREAS, the provisions of Subsection 4-1-210.13, Owner -Occupied Housing Incentive,
and Subsection 4-1-210.C, Rental Housing Incentive, have been successful in encouraging
increased residential opportunities and in stimulating new construction of multi -family housing
in Downtown Renton and the Sunset Area; and
WHEREAS, the Administration believes that the waived fees housing incentive should be
used as a tool to encourage more affordable housing in the City; and
WHEREAS, the City seeks to amend RMC 4-1-210.13 and 4-1-210.0 to extend, as modified,
the development and mitigation fee waivers to encourage the development of additional new
affordable housing in eligible zones throughout the City; and
WHEREAS, this matter was duly referred to the Planning Commission for investigation
and study, and the matter was considered by the Planning Commission; and
WHEREAS, pursuant to RCW 36.70A.106, on April 23, 2018, the City notified the State of
Washington of its intent to adopt amendments to its development regulations; and
WHEREAS, the Planning Commission held a public hearing on October 17, 2018,
considered all relevant matters, and heard all parties in support or opposition, and subsequently
forwarded a recommendation to the City Council;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO
ORDAIN AS FOLLOWS:
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ORDINANCE NO. 5912
SECTION I. All portions of the Renton Municipal Code in this ordinance not shown in
strikethrough and underline edits remain in effect and unchanged.
SECTION II. Subsections 4-1-210.A, 4-1-210.13, and 4-1-210.0 of the Renton Municipal
Code are amended as follows:
4-1-210 WAIVED FEES:
A. GENERAL:
The Renton City Council s4aa44 may in its discretion, upen stating an ,,,unable,
9F legal ' ^ 4 have the thGFot W waive any and all fees authorized
under this Chapter of Title 4.
B. AFFORDABLE OWNER -OCCUPIED HOUSING INCENTIVE:
1. Purpose: To encourage the development of new affordable owner -
occupied housing In the
the Eligible Areas fer Multi Family--Healing—gees; by waiving certain
development and mitigation fees for eligible affordable "For Sale" housing
projects, subject to City Council approval.
she .on e_R the Map and ^ heFeby made .,an eIr th C tioni h l; shall he read
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ORDINANCE NO. 5912
2. Definitions: In construing the provisions of RMC 4-1-210.13the following
definitions shall be applied:
a. "Administrator' means the Department of Community and
Economic Development Administrator, or any other City office department or
agency that shall succeed to its functions with respect to RMC 4-1-210.6.
b. "Affordable housing" means, for the purposes of housing intended
for owner -occupancy, residential housing that is within the means of set -aside
for, and purchased by moderate -income households.
c. "Household" means a single person, family, or unrelated persons
living together.
d. "Median income" means the median household income adjusted for
household size for King County, as reported by the United States Department of
Housing and Urban Development (HUD). In the event that HUD no longer
publishes median income figures for King County, the City may use or determine
such other method as it may choose to determine the King County median income
adjusted for household size.
e. "Moderate -income household" means a single person family, or
unrelated persons living together whose adiusted income is at or below either
eighty percent (80%) or one hundred and twenty percent (120%) of the median
income, as implied by context.
ORDINANCE NO. 5912
3. Eligibility Criteria: To qualify for waived fees, projects shall consist
entirely of new construction with all of the housing units platted or condominium
"For Sale" housing, and either meet the following criteria:
a. The project will be shall include a minimum of ten (10) units; and +fR
b. The project shall designate and sell at least fifty percent (50%) of
total housing units as affordable housing for households at or below eighty
percent (80%) of median income, and designate and sell any remaining housing
units as affordable housing for households at or below one hundred twenty
percent (120%) of median income; and
c. Affordable housing units for households with income at or below
eighty percent (80%) of median income shall remain as affordable housing in
perpetuity through a community land trust or other similar model acceptable to
the City; and
d. The applicant/owner shall demonstrate their experience and/or
ability to provide affordable housing and identify a third -party entity who will
document compliance with the affordable housing requirements for the annual
reports described in RMC 4-1-210.13.9.
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ORDINANCE NO. 5912
4. Applicable Fees:
charges;
a. Fees which may be waived are:
ai. Building permit fees;
13LH. Building permit plan review fees;
eiii. Water, surface water, and wastewater system development
4iv. Public Works plan review and inspection fees; a444
ev_. irir�, Iransportation; and parks impact mitigation fees..
vi. Fire impact mitigation fees, to the extent such waiver is
authorized by interlocal agreement with the Renton Regional Fire Authority;
vii. Civil plan review and inspection fees; and
viiii. Technology surcharge fees.
b. Fees which may not be waived are all fees not listed in RMC 4-1-
210.B.4.a, including:
i. Fire plan review and permit fees.
S. Application Process: PeFseRs who ^ten *To apply for the ewner-
waived fees under RMC 4-1-210.13, the applicant/owner shall apply by sending a
written letter describing the project and requesting the fee waiver pf4*4941ie
applicatien fer waived fees must be -Fade to the Communit • and Eeene ^'-
DeyelepmeF* Administrator (er and ether Eity effiee, depaF+. ent ^ • that
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ORDINANCE NO. 5912
Sha" ` eed to `+` f RGti^^` With + to thisS+' ' at the time of the land
use application, unless otherwise approved by City Council.
6. Restrictive Covenant:.All units ,. hiGh ebtai„ successful fee
If the
waiYeF by +"^ City Council waives fees under RMC 4-1-210.13, all real property
subject to the waiver shall be encumbered by a
toe restrictive covenant requiring that the real property be platted or restricted
to condominium housing, that the housing units designated as affordable housing
for households at or below eighty percent (80%) of median income shall be
maintained and sold as affordable housing to households at or below eighty
percent (80%) of median income in perpetuity, and that the housing units
designated as affordable housing for households at or below one hundred twenty
percent (120%) of median income shall be initially sold as affordable housing to
households at or below one hundred twenty percent (120%) of median income.
After review and approval of the fee waiver by the City Council and review and
approval of the restrictive covenant by the remmanity—and_ €se„emie
^^••^'^^•„^^+ Administrator, the restrictive covenant rust shall be executed and
recorded at the applicant/owner s expense prior to the issuance of toe any
building permit for the project, unless otherwise approved by City Council. Failure
If the applicant/owner fails to timely execute and record the covenant, the fee
waiver shall be revoked and the applicant/owner shall pay 4-•i" ^S„l+ in the
ORDINANCE NO. 5912
applicant beingre3pen Ale few -aid all applicable fees aR4 plus interest
accrued as a Fesult of the delay at the statutory rate from the date of the City
Council's fee waiver.
andJoF the Festrietiye esevenaRt if the +ype f heusiRg + be ff ,-
altered frem owner eceepied "Eer Sale" new heasin , all applieable fees must"
7. Contract: If the City Council waives fees for a project the
applicant/owner shall enter into a contract with the City, approved by the City
Council, regarding the terms and conditions of the project under RMC 4-1-210 B
The contract shall be executed and recorded against the subject real property at
the applicant/owner's expense before the project is entitled to issuance of a
Certificate of Occupancy. If the applicant/owner fails to timely execute and record
the contract, the fee waiver shall be revoked and the applicant/owner shall pay all
applicable fees plus interest accrued at the statutory rate from the date of the City
Council's fee waiver.
8. Cancellation: If the applicant/owner or project fails to meet any
requirement of RMC 4-1-210.6 after the City Council waives fees the fee waiver
shall be revoked and the applicant/owner shall pay all applicable fees plus interest
accrued at the statutory rate from the date of the City Council's fee waiver.
ORDINANCE NO. 5912
9. Annual Certification and Report: Within thirty (30) days after the first
anniversary of issuance of the project's Certificate of Occupancy and each year
thereafter for thirty (30) years, the applicant/owner shall file an annual report
with the Administrator. The report shall contain such information as the
Administrator may deem necessary or useful and shall at a minimum include the
following information:
a. A certification that the proiect has been in compliance with the
affordable housing requirements as described in RMC 4-1-210.B.3.b and c since
the date the City issued the project's Certificate of Occupancy and that the project
continues to be in compliance with the contract with the City and the
requirements of RMC 4-1-210.13;
b. A breakdown of the number and specific housing units sold during
the twelve (12) months ending with the anniversary date as applicable to meet
the affordable housing requirements in subsections RMC 4-1-210.B.3.b and c
c. The total sale amount of each affordable housing unit for households
at or below eighty percent (80%) and/or one hundred twenty percent (120%) of
median income sold during the twelve (12) months ending with the anniversary
date, as applicable;
d. The income of each purchaser (at the time of purchase) of a
affordable housing unit for households at or below eighty percent (80%) and/or
one hundred twenty percent (120%) of median income during the twelve (12)
months ending with the anniversary date, as applicable• and
ORDINANCE NO. 5912
e. Documentation that a third -party entity has monitored the proiect's
compliance with the affordable housing requirements in RMC 4-1-210 B 3 b and
c, as applicable.
108. €ffest+ve —gated- Sunset: The City will accept applications for
waived fees under RMC 4-1-210.6 until These fee ^•^ s aFe effeetive fE)F bUildiRg
peFFnitsissued -,4e August 13, 200 .� well + t theclose of business on
,
December 31,g2021, unless extended by City Council action.
C. AFFORDABLE RENTAL HOUSING INCENTIVE:
1. Purpose: To encourage development of new affordable rental housing
in the City CV, RMF, and R 14 Zones within the Sunset,4Fea by waiving certain
development and mitigation fees for eligible affordable rental housing may
waive' feF eligible projects, subject to City Council approval.
2. Definitions: In construing the provisions of thus subs^,.t'^^ RMC 4-1-
210.C, the following definitions shall be applied:
a. "Administrator" means the Department of Community and
Economic Development Administrator, or any other City office department or
agency that shall succeed to its functions with respect to RMC 4-1-210.C.
b.a: "Affordable housing" means residential housing that is rented by
a low-income household whose monthly housing costs, including rent and utilities
other than telephone, do not exceed thirty percent (30%) of the household's
monthly income. However, if the housing project is funded with
federal low-income housing tax credits (LIHTC) as provided for in Section 42 of the
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ORDINANCE NO. 5912
Internal Revenue Code, a unit will be considered affordable housing if it is rented
at or below the rental rate for a household at sixty percent (60%) of the King
County median income under the LIHTC program rules with a deduction for utility
costs, if applicable. The King County LIHTC rents are published annually by the
Washington State Housing Finance Commission and are based on unit size
assuming occupancy of one (1) person for a studio unit and one and one-half (1.5)
persons per bedroom.
c.b: "Household" means a single person, family, or unrelated persons
living together.
d.E "Low-income household" means a single person, family, or
unrelated persons living together whose adjusted income is at or below sixty
percent (60%) of the median income.
e.d-: "Median income" means the median household fad income
adjusted for household fav+l-y size for King County, as reported by the United
States Department of Housing and Urban Development (HUD). In the event that
HUD no longer publishes median income figures for King County, the City may use
or determine such other method as it may choose to determine the King County
median income, adjusted for household size.
e. "Multi family heesin " Fneans ene 9F Fn9Fe new buildingsdesigned
fer rental hewsin^, ^,r" with fGUF (4) GF FR9Fe dwel!*Rg uRits.
f. "Rental housing" means multi -family housing that provides rental
accommodation on a nontransient basis. This definition includes rental
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ORDINANCE NO. 5912
accommodation that is leased for a period of at least one month but excludes, for
example, hotels and motels that predominantly offer rental accommodation on a
daily or weekly basis.
3. Eligibility Criteria: To qualify for waived fees projects shall consist
entirely of new construction and must meet the following criteria:
a. The ^-..w
#a. The project will he shall include a minimum of eight (8) units if in
the RMF er R-14 Zone and within the Sunset Area; 6F Residential-1 (R-1),
Residential-4 (R-4), Residential-6 (R-6) Residential-8 (R-8) Residential-10 (R-10)
Residential-14 (R-14), or Residential Multi -Family (RMF)• or the project shall
include a minimum of thirty (30) units if in the Center Neighborhood (CN)
Commercial Arterial (CA), Center Village (CV) Center Downtown (CD) or
Commercial Office (CO) Zone;
_ PF_ c vv'be a Mii �iiiraM vi chii ca (vv) an�co ,rT
within the SuRse+ AFea. The project shall designate and rent one hundred percent
(100%) of the housing units as affordable housing for households at or below sixty
percent (60%) of median income;
c. For projects funded by the federal low-income housing tax credit
program (LIHTC), income averaging is permitted provided all units are affordable
housing for households with income at or below eighty percent (80%) of median
income, and the average rent for all housing units does not exceed the rate
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ORDINANCE NO. 5912
affordable for households with income at or below sixty percent (60%) of median
income;
d. Affordable housing units for households with income at or below
sixty percent (60%) of median income shall remain as affordable housing for a
minimum of thirty (30) years; and
e. The applicant/owner shall demonstrate experience and/or ability to
provide affordable housing and identify a third -party entity who will document
compliance with the affordable housing requirements for the annual reports
described in RMC 4-1-210.C.9.
4. Fees:
charges;
a. Fees which may be waived are:
i. Building permit fees;
ii. Building permit plan review fees;
iii. Water, surface water, and wastewater system development
iv. Public Works plan review and inspection fees; and
v. Transportation; and parks impact mitigation fees..
vi. Fire impact mitigation fees, to the extent such waiver is
authorized by interlocal agreement with the Renton Regional Fire Authority;
vii. Civil plan review and inspection fees; and
viii. Technology surcharge fees.
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ORDINANCE NO. 5912
b. PeFtiee-efFees which may not be waived are all fees not listed in
RMC 4-1-210.C.4.a, including:
fr
aside as afferdafale heasing; eT Fire plan review and permit fees.
U of the abevn fen Fnay 4 waived f
5. Application Process: PeFSGRS wh ;„+nnrl +To apply for the FeRtal
.lir=atien fnr .. .,n,a fnn9; must he Fnad waived fees under RMC 4-1-210.C, the
applicant/owner shall apply by sending a written letter describing the project and
requesting the fee waiver to the Gemmanity—and €ee .emie Develepmem
Administrator (er and-etheF Gi#-y-effise, dn.,-..+...,n„+ n RG that hall SUGG
+n ;+,. f1,.,,.+c9AS With r t to this Sn,.+;en) at the time of the land use application,
unless otherwise approved by City Council.
6. Restrictive Covenant: Allpre}ests which el3tairF a #ee vv�a;�e�—es
afferd-able w,,,,. ing , i;deF subseetien C4►,; of t-h + FRUst r:entaiA If the City
Council waives fees under RMC 4-1-210.C, all real property subject to the waiver
shall be encumbered by a restrictive covenant *ndeeating requiring that the real
property shall be maintained at least fifty -percent (50%) of the-anits;.vill -he Se
aside and rented as affordable housing as described in RMC 4-1-210.C.3.b c and
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ORDINANCE NO. 5912
d. After review and approval of the fee waiver by the City Council and the review
and approval of the restrictive covenant by the Cemmwt;=- and €se„emie
Develepm^"+ Administrator, the restrictive covenant must shall be executed and
recorded at the applicant/owner s expense prior to the issuance of t4e any
building permit for the project, unless otherwise approved by City Council. PaiIWFe
If the applicant/owner fails to timely execute and record the covenant, Will
" the "Bean+ be*Hg . sable feF any d the fee waiver shall be revoked and
the applicant/owner shall pay all applicable fees a -Rd plus interest accrued at the
statutory rate from the date of the City Council's fee waiver _ reS It of the „Ielay.
7. Contract: If the City Council waives fees for a proiect the
applicant/owner shall enter into a contract with the City, approved by the City
Council, regarding the terms and conditions of the proiect under RMC 4-1-210.C.
The contract shall be executed and recorded against the subiect real property at
the applicant/owner's expense before the issuance of the Certificate of
Occupancy. If the applicant/owner fails to timely execute and record the contract
the fee waiver shall be revoked and the applicant/owner shall pay all applicable
fees plus interest accrued at the statutory rate from the date of the City Council's
fee waiver.
-78. Cancellation or Modification: If the applicant/owner or project fails to
meet toe any requirements of this Subser-AieR C, RMC 4-1-210.0 after the City
Council waives fees, the fee waiver shall be revoked and the applicant/owner shall
pay all applicable fees must be paid with plus interest accrued at the statutory rate
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ORDINANCE NO. 5912
from the date of the Citv Council's fee waiver. After the
apPF9ved and eF the FeStFietive ^ Rt M s Fer=9Fded City Council waives fees, the
project may not be modified to owner -occupied "For Sale" housing without the
advance approval of the City Council.
9. Annual Certification and Report: Within thirty (30) days after the first
anniversary of issuance of the project's Certificate of Occupancy and each year
thereafter for thirty (30) years, the applicant/owner shall file an annual report
with the Administrator. The report shall contain such information as the
Administrator may deem necessary or useful and shall at a minimum include the
following information:
a. A certification that the property has been in compliance with the
affordable housing requirements in RMC 4-1-210.C.3.b c and clas applicable
since the date the City issued the Certificate of Occupancy and that the project
continues to be in compliance with the contract with the City and the
requirements of RMC 4-1-210.C;
b. A statement of occupancy and vacancy of the dwelling units during
the twelve (12) months ending with the anniversary date;
c. A breakdown of the number and specific housing units rented during
the twelve (12) months ending with the anniversary date;
d. The total monthly rent of each housing unit rented during the twelve
(12) months ending with the anniversary date;
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ORDINANCE NO. 5912
e. The income of each renter household at the time of initial occupancy
during the twelve (12) months ending with the anniversary date; and
f. Documentation that a third -party entity has monitored the proiect's
compliance with the affordable housing requirements in RMC 4-1-210.C.3.b c
and d, as applicable.
810. Effective Date and- Sunset: The City will accept applications for
waived fees under RMC 4-1-210.0 until These fee wanveFs aFe .,#.dive f49r building
permit3 issued after September 5z011, and will close of business
on December 31, 29192021, unless extended by City Council action.
SECTION III. If any section, subsection, sentence, clause, phrase or work of this
ordinance should be held to be invalid or unconstitutional by a court or competent jurisdiction,
such invalidity or unconstitutionality thereof shall not affect the constitutionality of any other
section, subsection, sentence, clause, phrase or word of this ordinance.
SECTION IV. This ordinance shall be in full force and effect five (5) days after publication
of a summary of this ordinance in the City's official newspaper. The summary shall consist of this
ordinance's title. If this ordinance comes into effect prior to the December 25, 2018 sunset date
of Ordinance No. 5884, the terms of this ordinance shall control over Ordinance No. 5884.
PASSED BY THE CITY COUNCIL this loth day of December, 2018.
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ORDINANCE NO. 5912
APPROVED BY THE MAYOR this loth day of December, 2018.
Approved as to form:
Shane Moloney, City A rney
Date of Publication: 12/14/2018 (summary)
ORD:2045:11/28/18:scr
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Denis Law, Mayor
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