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Home My WebLink AboutORD 6056CITY OF RENTON, WASHINGTON ORDINANCE NO. 6056 AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SUBSECTIONS 4-1-220.B AND 4-1-220.13 OF THE RENTON MUNICIPAL CODE, BY EXTENDING TO THE RAINIER/GRADY JUNCTION TOD SUBAREA AND SOUTH LAKE WASHINGTON SUBAREA THE MULTI -FAMILY HOUSING PROPERTY TAX EXEMPTION, ADOPTING THE ELIGIBLE AREAS FOR MULTI -FAMILY HOUSING INCENTIVES MAP, AUTHORIZING CORRECTIONS, PROVIDING FOR SEVERABILITY, AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, on December 22, 2003, the Renton City Council passed Ordinance No. 5061 (codified in RMC 4-1-220) establishing a limited property tax exemption to encourage multi- family housing development in designated residential targeted areas; and WHEREAS, the provisions of RMC 4-1-220, Property Tax Exemption for Multi -Family Housing in Residential Targeted Areas, have been successful in encouraging increased residential opportunities and in stimulating new construction of multi -family housing in the City's priority community revitalization and redevelopment areas and encouraging more affordable multi- family housing in the City; and WHEREAS, the City seeks to amend RMC 4-1-220 to extend, as modified, the property tax exemption to additional residential targeted areas to encourage additional future multi -family housing projects; 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 January 7, 2022, the City notified the State of Washington of its intent to adopt amendments to its development regulations and requested expedited review; and 1 ORDINANCE N0. 6056 WHEREAS, the Planning Commission held a public hearing on January 19, 2022, considered all relevant matters, and heard all parties appearing in support or in opposition, and subsequently forwarded a recommendation to the City Council; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO 10l:]17_11►KV1Is] IX61►TWT&II 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 4-1-220.13 and 4-1-220.D of the Renton Municipal Code are amended as shown below. All other provisions in 4-1-220 remain in effect and unchanged. B. DEFINITIONS: In construing the provisions of this Section, the following definitions shall be applied: 1. "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 this Section. 2. "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. For the purposes of housing intended for owner occupancy, "affordable housing" means residential housing that is within the means of and purchased by low- or moderate -income households. 3. "Downtown" refers to a geographical area depicted in the Eligible Areas for Multi -Family Housing Incentives Map ("Map"), a copy of which shall be 2 ORDINANCE NO. 6056 wed kept in the Office of the City Clerk, and which was eFiginally „ epted as Attachment A to OF614nancee.5760. The boundaries of the Downtown Eligible Area shown on the Map are hereby made part of this Section, which shall be read and interpreted in light of the contents of the Map. 4. "Household" means a single person, family, or unrelated persons living together. 5. "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, as further defined in subsection C.1.c.ii(a) of this Section. 6. "Median income" means the median family income adjusted for family 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. 7. "Mixed -use" means a multi -family housing residential project with at least one other nonresidential use in one or more multi -family housing buildings in the project, such as retail, office, entertainment, schools, conference centers, or a use approved in writing bythe Administrator. The purpose of the mixed -use requirement is to implement the intent of the land use district, maximize the efficient use of land, support transit use, and encourage the development of well-balanced, attractive, convenient, and vibrant urban residential neighborhoods. The additional use excludes any accessory functions related to the residential use. Unless otherwise modified or waived in writing by the Administrator, the nonresidential mixed -use 3 ORDINANCE N0. 6056 shall occupy at a minimum the ground floor along the street frontage with a depth of at least thirty feet (30') for any building in the project. 8. "Moderate -income household" means a single person, family, or unrelated persons living together whose adjusted income is at or below eighty percent (80%) of the median income, as further defined in subsection C.1.c.ii(b) of this Section. 9. "Multi -family housing" means one or more new buildings designed for permanent residential occupancy, each with four (4) or more dwelling units. 10. "Permanent residential occupancy" means multi -family housing that provides either owner occupancy, or rental accommodation that is leased for a period of at least one month but excluding transient rental accommodations that predominantly offer accommodation on a daily or weekly basis, for example, hotels and motels. 11. "Permanently affordable homeownership" means a dwelling unit that is affordable housing as defined according to RCW 43.185A.010; including but not limited to built by or sold to a qualified non-profit organization; and subject to a ninety-nine (99)-year ground lease or deed restriction, to be executed at initial sale and each successive sale. 12. "Rainier/Grady Junction TOD Subarea" refers to a geographical area depicted in the Eligible Areas for Multi -Family Housing Incentives Map ("Map" ), as it exists or may be amended. a coov of which shall be keat in the Office of the Clerk. The boundaries of the Rainier/Grady Junction TOD Subarea shown on the Map are herebv made Dart of this Section. which shall be read and interpreted in lieht of the contents of the Map. rd ORDINANCE NO. 6056 13. "South Lake Washineton" refers to a eeoeraphical area depicted in the Eligible Areas for Multi -Family Housing Incentives Map ("Map"), as it exists or may be amended, a copy which shall be kept in the Office of the City Clerk. The boundaries of the South Lake Washineton shown on the Map are herebv made part of this Section, which shall be read and interpreted in light of the contents of the Map. 14. "Sunset Area" refers to a geographical area depicted in the Eligible Areas for Multi -Family Housing Incentives Map ("Map"), as it exists or may be amended, a copy of which shall be maid -kept in the Office of the City Clerk, and which —. 'g+i pted as TttachmeRt-/ate-Ordlipape^ "'^ 5760. The boundaries of the Sunset Eligible Area shown on the Map are hereby made part of this Section, which shall be read and interpreted in light of the contents of the Map. 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 target areas" listed below in subsection D.1.a 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 target area, then the entire lot shall be deemed to lie within the residential target 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 0 ORDINANCE NO. 6056 b. Downtown: In the Downtown and within the Center Downtown (CD) Zone or Residential-14 (R-14) Zone. c. Rainier/Grady Junction TOD Subarea: In the Rainier/Grady Junction TOD Subarea and within the Commercial Arterial (CA) or Commercial Office (CO) Zone. d. South Lake Washington: In the South Lake Washington and within the Urban Center-1 (UC-1), or the Urban Center-2 (UC-2) 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. 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: i. If the project is located in the Downtown and within the Center Downtown (CD) Zone, the project shall (a) consist of a minimum total of thirty (30) new dwelling units of multi -family housing and (b) be a new structure(s) and (c) be a mixed -use development, unless the Administrator waives one or more of these requirements. If the Administrator waives the mixed -use development requirement, ORDINANCE NO. 6056 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. ii. If the project is located in the Sunset Area and within the Center Village (CV) Zone, the project shall (a) consist of a minimum total of thirty (30) new dwelling units of multi -family housing and (b) be located in a new structure(s) and (c) 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. iii.If one hundred percent (100%) of the housing units in a homeownership project are affordable housing, the project shall (a) consist of a minimum of ten (10) new dwelling units of multi -family housing and (b) 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 II ORDINANCE N0. 6056 remain affordable in perpetuity through a community land trust or other similar model acceptable to the City. iv. Market -rate townhome projects are not eligible for the exemption. c. If the project is located in the Rainier/Grady Junction TOD Subarea and within the Commercial Arterial (CA), Commercial Office (CO) Zone, or in the South Lake Washington and within the Urban Center-1 (UC-1), or the Urban Center-2 (UC- 2) Zone, the following applies: i. If the proiect is located in the Rainier/Gradv Junction TOD Subarea or South Lake Washington and within the Commercial Arterial (CA), Commercial Office (CO). Urban Center-1 (UC-1). or the Urban Center-2 (UC-2) Zone. the Droiect shall (a) consist of a minimum total of one hundred (100) new dwelling units of multi- familv housing, subiect to subsection D.2.c.ii of this Section. and (b) be a new structure(s) and (c) be a mixed -use development, unless the Administrator waives one or more of these reauirements. 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 Dercent (50%) of the saace within the Droiect shall be intended for permanent residential occupancy. ii. If one hundred Dercent (100%) of the housine units in a homeownership project are affordable housing, the project shall (a) consist of a minimum of ten (10) new dwelline units of multi-familv housine and (b) be located within a new residential structure(s) or a new mixed -use development as allowed by the RMC for the saecific zone. At least fifty Dercent (50%) of the saace within the project shall be intended for permanent residential occupancy. The protect shall E:3 ORDINANCE NO. 6056 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. iii. Market -rate townhome proiects are not eli.Qible 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 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 01 ORDINANCE NO. 6056 b. Provide the number of dwelling units otherwise required in subsection D.2 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 F.2 of this Section or by any extended deadline granted by the Administrator as provided in subsection I of this Section. SECTION III. The amended Eligible Areas for Multi -Family Housing Incentives Map ("Map"), as shown on Attachment A. is adopted by reference as if fully set forth herein. A copy of Map shall be kept in the City Clerk's office. SECTION IV. Upon approval of the City Attorney, the City Clerk is authorized to direct the codifier to make necessary corrections to this ordinance, including the corrections of scriveners or clerical errors; references to other local, state, or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering and references. SECTION V. 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 VI. 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. 10 ORDINANCE NO. 6056 PASSED BY THE CITY COUNCIL this 28th day of February APPROVED BY THE MAYOR this 28th day of Approved as to form: ,,d�`l- n Shane Moloney, City Attorney Date of Publication: 3/3/2022 Summary ORD-EH HS:2203:2/2/2022 11 uary 2022. 2022. OF R J L * SEAL =* ORDINANCE NO. 6056 ATTACHMENT A HOUSING INCENTIVES MAP 12 Eligible Areas for Multi -Family Tax Exemption Incentives W Z r , v _ 4 T 1 I V -A 7.001 Q . I 0 / QNE 16th St — ^ 7-Sunset Z NE 12th St / o I I I J L —I I I J�4 °j4 \\9�og44S 0 r�'o• / S�! Rd Os °f e�6 d _L -- — / / NEQOtkDI outh Lake I- ashington tL N 10tb St 0 � Z 0 % 2 m y c N8 1 Airport Way i s 4 Z 7 w m 6th St > T 3 v N 4th St 2 0 m > Z N E Q h a — 3 3 s°r Way N oc 0� St Ale ,6 St Z MFTE Eligible Areas Downtown 0 South Lake Washington Sunset Rainier/Grady Junction TOD Subarea Parks & Open Space j— j City limits 0 0 750 1,500 I--�� Feet