HomeMy WebLinkAbout09/04/2024 - Agenda Packet
AGENDA
Planning Commission Meeting
6:00 PM - Wednesday, September 4, 2024
Council Chambers, 7th Floor, City Hall – 1055 S. Grady Way
1. CALL TO ORDER
2. ROLL CALL
3. CORRESPONDENCE RECEIVED
4. AUDIENCE COMMENT - NON-AGENDA ITEMS
1. Virtual Attendees
2. In-person Attendees
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given an opportunity to speak before in-person (physical meeting at the City Hall, 7F Council
Chambers) comments are completed.
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behalf. Alternatively, interested parties are encouraged to provide written comments to
planningcommission@rentonwa.gov.
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there are others calling in, you can be called upon by the last 4 digits of your telephone
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5. COMMISSIONER COMMENTS
6. ADMINISTRATOR'S REPORT
7. BRIEFING DOCKET 19 GROUP A (D-233: MFTE AND WAIVE FEES, D-234:
SB290 LOCAL PROJECT REVIEW)
a) Docket 19A Staff Reports
Page 1 of 11
8. COMMISSIONER COMMENTS
9. ADJOURNMENT
Hearing assistance devices for use in the Council Chambers are available upon request.
For more information please visit rentonwa.gov/planningcommission
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CITY OF RENTON
Community and Economic Development Department
#D-234: MFTE and Waived Fees
Staff: Angelea Weihs, Associate Planner
Date: August 29, 2024
Applicant or Requestor: Staff
_____________________________________________________________________________________
GENERAL DESCRIPTION
The Multi-Family Housing Property Tax Exemption and Waived Fees programs are set to expire on
December 31, 2024, unless extended by City Council action. These housing incentives have been
instrumental in facilitating significant new multi-family housing development in the City’s highest
priority redevelopment and revitalization areas, as well as facilitating new affordable housing
development across the city. The purpose of proposed code amendment is to extend the sunset date by
3 years.
BACKGROUND – MULTI FAMILY HOUSING PROPERTY TAX EXEMPTION
As authorized by Chapter 84.14 of the Revised Code of Washington, the City Council established the
Multi-Family Housing Property Tax Exemption housing incentive in 2003. The Exemption provision
allows the value of qualified new housing construction to be exempt from ad valorem property tax for a
limited period of time after completion of the project. The purpose of the MFTE program is to
encourage development of qualified new multi-family housing located in designated residential target
areas by providing limited duration, 8, 10, 12, or 20 year exemptions from ad valorem property taxation,
as shown in the following table:
APPLICATION
SUBMITTAL DATE
DURATION OF
EXEMPTION
AFFORDABLE HOUSING
REQUIREMENT HOUSEHOLD MEDIAN INCOME
BEFORE JULY 22, 2007 10 years
BETWEEN JULY 22,
2007, AND DECEMBER
17, 2018
8 years* NA NA
12 years*
At least 20% of units shall be
reserved as affordable rental
or ownership housing for
low- and moderate-income
households.
Rental Housing: 80% or less of
median Income
Ownership Housing: 120% or less of
median income
AFTER DECEMBER 18,
2018
8 years* NA NA
12 years*
At least 20% of units shall be
reserved as affordable rental
or ownership housing for
low- and moderate-income
households.
Rental Housing: 60% or less of
median Income
Ownership Housing: 80% or less of
median income
AGENDA ITEM #7. a)
Page 3 of 11
20 years
At least 25% of units shall be
reserved as permanent
affordable ownership
housing.
Limited to Ownership Housing:
80% or less of median income.
*Exemption may be extended for an additional 12 years, with city approval, if 20% of units are reserved as
affordable units for low-income households.
The exemption does not apply to the value of the land, existing improvements or non-housing-related
improvements (e.g., commercial space). The exemption applies to all levels of the ad valorem property
tax, including the local jurisdiction, county, state, and all local taxing districts, and can be combined with
any other tax credits, grants, or incentives provided by law for the multi-family housing.
Residential Target Areas
To qualify for the Multi-Family Housing Property Tax Exemption, projects must be located within one of
the designated “residential targeted areas” and zones:
• Sunset Area: In the Sunset Area and within the Center Village (CV), Residential Multi-Family
(RMF), or the Residential-14 (R-14) Zone;
• Downtown: In the Downtown and within the Center Downtown (CD) Zone or Residential-14 (R-
14) Zone;
• Rainier/Grady Junction TOD Subarea: In the Rainier/Grady Junction TOD Subarea and within
the Commercial Arterial (CA) or Commercial Office (CO) Zone; or
• South Lake Washington: In the South Lake Washington and within the Urban Center-1 (UC-1),
or the Urban Center-2 (UC-2) Zone.
MFTE Eligibility
In addition to project (Residential Target Areas) location requirements, project proposals must also
comply with size and residential occupancy limitations to qualify for the Multi-Family Housing Property
Tax Exemption, as indicated in the following table:
RESIDENTIAL TARGET AREA ZONE UNIT MININMUM PERMANENT OCCUPANCY
SUNSET AREA
CV 30*
At least 50% of project intended for
permanent residential occupancy
RMF, R-14 10
DOWNTOWN
CD 30*
R-14 10
RAINIER/GRADY JUNCTION CA, CO 100*
SOUTH LAKE WA UC-1, UC-2 100*
*If 100% affordable homeownership, then project has 10 unit minimum; affordable means at least 50% of units
designated for <80%; and remainder designated at <120% AMI
AGENDA ITEM #7. a)
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Conclusion:
The City of Renton established the Exemption incentive to encourage additional multi-family housing in
residential targeted areas. Extending the sunset date for this incentive is in alignment with the goals and
objectives of the 2021-2026 Business Plan, the recommendations of the Rainier/Grady Junction TOD
Subarea Plan, and the Housing Action Plan.
BACKGROUND – WAIVED FEES
The City Council established the Waived Fees housing incentive in 2001. Currently, the Waived Fees
program includes two elements: an affordable owner-occupied housing incentive (RMC 4-1-210B) and
an affordable rental housing incentive (RMC 4-2-210C). The purpose of the program is to encourage the
development of new rental and affordable owner-occupied housing in the city by waiving certain
development and mitigation fees for eligible affordable housing projects, subject to City Council
approval.
The incentive applicability has been amended several times since it was established in 2001, as shown in
the following timeline:
2001 2010 2018 2020
City Council
approved Ordinance
No. 4913 (Waived
Fees – Owner-
Occupied Housing
Incentive) to allow
certain development
and mitigation fees
for “For Sale” multi-
family housing to be
waived to encourage
owner-occupied
housing in
Downtown Renton.
City Council
extended the
incentive to include
eligible owner-
occupied and rental
housing in the Sunset
Area.
City Council
restricted the waived
fees to affordable
rental or
homeownership
projects and
extended the
incentive to include
eligible affordable
owner-occupied or
rental housing
citywide.
City Council defined
applicable fees as a
maximum of 80% of
applicable impact
fees and up to 100%
of all other
applicable fees for up
to 100 dwelling units
may be waived.
Applicable Fees
Based on current code, the City Council may grant, partially grant, or deny a request to waive no more
than 80% of applicable impact fees and up to 100% of all other applicable fees. The Waived Fees
affordable housing incentive currently includes the following applicable fees which may be waived for an
eligible project:
• Building permit fees;
AGENDA ITEM #7. a)
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• Building permit plan review fees;
• Water, surface water, and wastewater system development charges;
• Public Works plan review and inspection fees;
• Transportation and parks impact mitigation fees (up to 80%);
• Fire impact mitigation fees (up to 80%; if approved by the Renton Regional Fire Authority);
• Civil plan review and inspection fees;
• Technology surcharge fees; and
• Administrative fees for collecting, processing, and handling school impact fees. (May be waived
only for owner-occupied housing)
Eligibility – Owner-Occupied Housing
The owner-occupied Waived Fees incentive applies to eligible new construction projects that include a
minimum of 10 units and designate and sell at least 50% of the total housing units as permanent
affordable housing for households at or below 80% of median income. The remaining housing units
must be designated and sold as affordable for households at or below 120% of median income.
Eligibility – Rental Housing
The rental Waived Fees incentive applies to new construction projects that include and have a minimum
of 8 dwelling units if located in the R-1, R-4, R-6, R-8, R-10, R-14, or RMF zones, or a minimum of 30
dwelling units if located in the CN, CA, CV, CD, or CO zones. Projects must designate and rent 100% of
housing units (or the greatest number of affordable housing units allowed if in the CV zone) as
affordable for households making at or below 60% median income.
Conclusion
The City of Renton has used the Waived Fees incentive to facilitate new affordable housing
development. Extending the incentive is in alignment with the goals and objectives of the 2021-2026
Business Plan and the recommendations of the Housing Action Plan.
PROPOSED CODE AMENDMENTS
Staff proposes to extend the sunset date an additional 3 years for both the Multi-Family Housing
Property Tax Exemption and Waived Fees programs in the following code sections:
• RMC 4-1-220 PROPERTY TAX EXEMPTION FOR MULTI-FAMILY HOUSING IN RESIDENTIAL
TARGETED AREAS
• RMC 4-1-210 WAIVED FEES
STAFF RECOMMENDATION
Amend city code, as described above, to extend the sunset date for both the Multi-Family Housing
Property Tax Exemption and Waived Fees programs by an additional 3 years.
IMPACT ANALYSIS
Effect on rate of growth, development, and conversion of land as envisioned in the Plan
There are no anticipated effects on the rate of growth, development, and conversion of land envisioned
in the Plan.
AGENDA ITEM #7. a)
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Effect on the City’s capacity to provide adequate public facilities
There are no anticipated effects on the City’s capacity to provide adequate public facilities.
Effect on the rate of population and employment growth
There are no anticipated effects on the rate of population and employment growth created by the
proposed changes.
Whether Plan objectives are being met as specified or remain valid and desirable
Objectives of the Plan would remain valid and desirable.
Effect on general land values or housing costs
There are no anticipated effects on general land values or housing costs.
Whether capital improvements or expenditures are being made or completed as expected
There are no anticipated effects on capital improvements or expenditures created by the proposed
changes.
Consistency with GMA and Countywide Planning Policies
The proposed amendments are consistent with the GMA and Countywide Policies.
Effect on critical areas and natural resource lands
There are no anticipated effects on critical areas and natural resource lands.
AGENDA ITEM #7. a)
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CITY OF RENTON
Community and Economic Development Department
#D-234: SB 5290 – Local Project Review
Staff: Angelea Weihs, Associate Planner
Date: August 29, 2024
Applicant or Requestor: Staff
_____________________________________________________________________________________
GENERAL DESCRIPTION
The purpose of the proposed code amendments is to update the city’s permit review procedures and
time period regulations in accordance with Second Substitute Senate Bill (SB) 5290, which includes
major changes to the Local Project Review Act related to streamlining and consolidating local permit
review processes.
BACKGROUND
The Local Project Review Act was established in 1995, after the passage of the Growth Management Act
(GMA), and acts as the statewide framework for local government land use planning review and
development permitting. The Local Project Review Act applies to all local governments planning under
the Growth Management Act (GMA).
The Local Project Review Act was established by the state in response to the regulatory burden created
by the increasing complexity of laws and regulations for land development, as well as the growing
number of land use permits required by agencies, which generates potential for conflict, overlap, and
duplication between the various permit and review processes.
In May of 2023, the state passed Senate Bill (SB) 5290, which requires several major changes to the
project review processes and timelines provided in the Local Project Review Act. The updates required
by SB 5290 are intended to consolidate, streamline and further improve local permit review processes
for improved outcomes for applicants, customers, planners, builders and designers. It is also intended to
increase permit review timeliness and hold jurisdictions accountable in the event the review time
periods are exceeded.
Most of the amendments of SB 5290 went into effect in the summer of 2023, except for new permit
time period requirements which will be effective January 1, 2025.
PERMIT REVIEW TIME PERIODS
Based on the Local Project Review Act, development regulations must establish and implement time
periods for local governments to take action on each type of project permit application. Prior to the
required amendments of SB 5290, the established time period for review was 120 days from the date of
complete application, unless the local government makes written findings that additional time is
needed.
In order to comply with the SB 5290 state mandates, the city must revise the existing 120-day time
period for permit review. Rather than a one-size-fits-all approach to permit review, the revised time
periods will be based on permit types as follows:
AGENDA ITEM #7. a)
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PERMIT TYPE MAXIMUM REVIEW TIME PERIOD
No public notice is required for permit type. 65 days
Public notice is required for permit type. 100 days
Public notice and public hearing(s) are required
for permit type.
170 days
The default review time periods established above are based on calendar days, rather than business
days. Furthermore, these time periods apply automatically if the city does not adopt an ordinance
setting or changing the time periods.
OTHER SB 5290 REQUIREMENTS
In addition to the revised permit review time periods, the City of Renton must also comply with the
following SB 5290 state mandates:
• The city must update permit refund code and procedures. For example, if the city does not
comply with the required time limits, the city must refund the application review fees on a pro-
rated basis up to 20%, depending on the length of delay.
• The city must report annual permit review data, including data on compliance with the new
permit time periods. This annual report must be posted on the city website and must include
the number of permits issued by type, length of processing decisions, and several other metrics
as set forth in the amended Local Project Review Act.
• The update requires clarification regarding the procedural requirements for project application
determination of completeness. For example, the determination must be based on the
procedural requirements as outlined on the project permit application.
• Lastly, the update requires minor revisions to city public notice requirements and procedure,
such as clarification that the notice of application include information, such as:
o Date of application,
o Date of the notice of completion for the application,
o Date of the notice of application,
o Identification of other permits not included in the application to the extent known by
the local government, and
o Identification of existing environmental documents that evaluate the proposed project.
PROPOSED CODE AND PROCEDURAL AMENDMENTS
The following summarized key amendments are proposed for consistency with SB 5290:
• Update city permit review time periods.
• Update permit refund code and procedures.
• Update reporting procedure for annual permit review data to demonstrate compliance with
new permit time period requirements.
AGENDA ITEM #7. a)
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• Update code regarding procedural requirements for project application determination of
completeness.
• Update public notice requirements and procedures for project applications.
The required code amendments impact the following code sections:
• RMC 4-8-080, PERMIT CLASSIFICATION.
• RMC 4-1-140, REFUND OF DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT FEES
• RMC 4-8-090, PUBLIC NOTICE REQUIREMENTS
• RMC 4-8-010, PURPOSE AND INTENT
• RMC 4-8-050, EXEMPTIONS FROM STATE PROCESS REQUIREMENTS
• RMC 4-6-070, TRANSPORTATION CONCURRENCY REQUIREMENTS
STAFF RECOMMENDATION
Amend the city’s permit review procedures and time period regulations, as described above, to comply
with the Second Substitute Senate Bill (SB) 5290.
IMPACT ANALYSIS
Effect on rate of growth, development, and conversion of land as envisioned in the Plan
Not applicable. The proposed amendments are intended to streamline the development permit
processes. There is no anticipated direct effects on the rate of growth, development, and conversion of
land envisioned in the Plan.
Effect on the City’s capacity to provide adequate public facilities
Not applicable. There are no anticipated effects on the City’s capacity to provide adequate public
facilities.
Effect on the rate of population and employment growth
Not applicable. There are no anticipated effects on the rate of population and employment growth
created by the proposed changes.
Whether Plan objectives are being met as specified or remain valid and desirable
Objectives of the Plan would remain valid and desirable.
Effect on general land values or housing costs
The proposed amendments are intended to streamline the development permit processes. There will
likely be no direct effects on general land values or housing costs.
Whether capital improvements or expenditures are being made or completed as expected
Not applicable. There are no anticipated effects on capital improvements or expenditures created by the
proposed changes.
AGENDA ITEM #7. a)
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Consistency with GMA and Countywide Planning Policies
The purpose of the proposed amendments are to remain consistent with the Growth Management Act
and Local Project Review Act. The proposed amendments are consistent with the Plan and Countywide
Policies.
Effect on critical areas and natural resource lands
Not applicable. There are no anticipated effects on critical areas and natural resource lands.
AGENDA ITEM #7. a)
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