HomeMy WebLinkAboutORD 5956 CITY OF RENTON, WASHINGTON
ORDINANCE NO. 5956
AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING 4-1-
220.D.2 OF THE RENTON MUNICIPAL CODE, MODIFYING PROJECT ELIGIBILITY
REQUIREMENTS TO.QUALIFY FOR AN EXEMPTION FROM PROPERTY TAXATION,
PROVIDING FOR SEVERABILITY,AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the Multi-Family Property Tax Exemption (MFTE) is an important economic
development tool in the effort to increase the amount of new housing being constructed in the
Sunset and Downtown areas; and
WHEREAS, the emphasis of the MFTE is the creation of new housing units, and updating
the City's MFTE provisions will further encourage the creation of new housing units; 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,the Planning Commission held a public hearing on October 2, 2019, considered
all relevant matters, and heard all parties in support or opposition, and subsequently forwarded
a recommendation to the City Council; and
WHEREAS, pursuant to RCW 36.70A.106, on October 16, 2019,the City notified the State
of Washington of its intent to adopt amendments to its development regulations;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO
ORDAIN AS FOLLOWS:
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. Subsection 4-1-220.D.2 of the Renton Municipal Code is amended as
shown below. All other provisions in 4-1-220.D remain in effect and unchanged.
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ORDINANCE NO. 5956
D. PROJECT ELIGIBILITY:
To qualify for exemption from property taxation under this Section,the project
shall satisfy all of the following requirements:
1. Location: The property shall be located in one of the designated
"residential targeted areas" listed below in subsection D1a or b of this Section
which are targeted for low-or moderate-income housing serving households at or
below eighty percent(80%)of the median income. If a part of any legal lot is within
a residential targeted area, then the entire lot shall be deemed to lie within the
residential targeted area.
a. Sunset Area: In the Sunset Area and within the Center Village (CV),
Residential Multi-Family(RMF), or the Residential-14 (R-14) Zone; or
b. Downtown: In the Downtown and within the Center Downtown (CD)
Zone or Residential-14 (R-14) Zone.
2. Size and Structure:
a. If the project is located in the Downtown and within the Residential-
14 (R-14) Zone, or in the Sunset Area and within either the Residential Multi-
Family (RMF) Zone or the Residential-14 (R-14) Zone, the project shall (i) consist
of a minimum total of ten (10) new dwelling units of multi-family housing, and (ii)
be located within a new residential structure(s) or a new mixed-use development
as allowed by the RMC for the specific zone. At least fifty percent (50%) of the
space within the project shall be intended for permanent residential occupancy.
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ORDINANCE NO. 5956
b. If the project is located in the Downtown and within the Center
Downtown (CD) Zone, or in the Sunset Area and within the Center Village (CV)
Zone, the following applies.
(1) If the project is located in the Downtown and within the Center
Downtown (CD) Zone, or is in the Sunset Area and within the Center Village (CV)
Zone, the project shall (i) consist of a minimum total of thirty (30) new dwelling
units of multi-family housing and (ii) be located in a new structure(s) and (iii) be a
mixed-use development, unless othcrwi c waived by the Administrator waives
one or more of these requirements. If the Administrator waives the mixed-use
development requirement, the multi-family housing shall be located in a new
residential structure(s). At least fifty percent (50%) of the space within the project
shall be intended for permanent residential occupancy.
(2) If the project is located in the Sunset Area and within the Center
Village (CV)Zone,the project shall (i) consist of a minimum total of thirty(30) new
dwelling units of multi-family housing and (ii) be located in a new structure(s) and
(iii) be a mixed-use development, unless the Administrator waives the minimum
number of new units requirement or the mixed-use development requirement.
The Administrator cannot waive the new structure(s) requirement. If the
Administrator waives the mixed-use development requirement, the multi-family
housing shall be located in a new residential structure(s). At least fifty percent
(50%) of the space within the project shall be intended for permanent residential
occupancy.
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ORDINANCE NO. 5956
j31 If one hundred percent (100%) of the housing units in a
homeownership project are affordable housing and the project is leted in the
Downtown and within the Center Dewnt. .. (CD) Zone o n the Sunset Area and
within the Center Village (CV) Zone, the project shall (i) consist of a minimum of
ten (10) new dwelling units of multi-family housing and (ii) be located within a new
residential structure(s) or a new mixed-use development as allowed by the RMC
for the specific zone. At least fifty percent (50%) of the space within the project
shall be intended for permanent residential occupancy. The project shall
designate and sell at least fifty percent (50%) of total housing units as affordable
for households at or below eighty percent (80%) of median income, and designate
and sell any remaining housing units as affordable for households at or below one
hundred twenty percent (120%) of median income. In addition, the housing units
affordable for households at or below eighty percent (80%) of median income
shall remain affordable in perpetuity through a community land trust or other
similar model acceptable to the City.
d-(4) Market-rate townhome projects
within the Center Downtown (CD) Zone, or in the Sunset Arcs and within the
Ccntcr Village (CV)Zonc are not eligible for the exemption.
3. Compliance Monitoring: Any applicant/owner with affordable housing
units in the project shall demonstrate experience and/or ability to provide
affordable housing and provide a third-party entity to document compliance with
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ORDINANCE NO. 5956
the affordable housing requirements for the annual reports further defined in
subsection K of this Section.
4. Exception for Existing Residential Structure: In the case of an existing
occupied residential structure that is proposed for demolition and redevelopment
as new multi-family housing, the project shall provide as a minimum number of
dwelling units in the new multi-family housing project, the greater of:
a. Replace the existing number of dwelling units and, unless the
existing residential rental structure was vacant for twelve (12) months or more
prior to demolition, provide for a minimum of four (4) additional dwelling units in
the new multi-family housing project; or
b. Provide the number of dwelling units otherwise required in
subsection D2 of this Section.
5. Completion Deadline: The project shall be completed within three (3)
years from the date of approval of the contract by the City Council as provided in
subsection F2 of this Section or by any extended deadline granted by the
Administrator as provided in subsection I of this Section.
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.
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ORDINANCE NO. 5956
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.
PASSED BY THE CITY COUNCIL this 9th day of December, 2019.
Jaso A. Seth, Clerk
APPROVED BY THE MAYOR this 9th day of December, 019.
21eAMI j-7447
Denis Law, Mayor
Approved as to form:
.06
Shane Moloney, City Attorney
SEAL ; * _
Date of Publication: 12/13/2019 (Summary) RpORAPED
ORD:2098:11/15/19
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