HomeMy WebLinkAboutORD 5911CITY OF RENTON, WASHINGTON
ORDINANCE NO. 5911
AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SECTION
4-1-220 OF THE RENTON MUNICIPAL CODE, BY EXTENDING AND MODIFYING THE
MULTI -FAMILY HOUSING PROPERTY TAX EXEMPTION, AND PROVIDING FOR
SEVERABILITY AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, on December 22, 2003, the Renton City Council approved Ordinance No. 5061
(codified in RMC 4-1-220) to establish a limited property tax exemption to encourage multi -family
housing development in designated residential targeted areas; and
WHEREAS, the property tax exemption will sunset on December 31, 2018, unless
extended by City Council action; and
WHEREAS, the provisions of Section 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 residential targeted
areas; and
WHEREAS, on June 25, 2018, the City Council approved 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 property tax exemptions
and formally requested staff recommendations for revisions to the multi -family housing incentive
regulations, including property tax exemptions; and
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
1
ORDINANCE NO. 5911
WHEREAS, the Administration believes that multi -family housing incentives should be
used as a tool to encourage more multi -family housing development in the City's priority
community revitalization and redevelopment areas and to encourage more affordable multi-
family housing in the City; and
WHEREAS, the Administration believes that an incentive should only be provided to
market -rate multi -family housing projects that represent the highest and best use of the
applicable zoned property; and
WHEREAS, the City seeks to amend RMC 4-1-220 to extend, as modified, the property tax
exemption to encourage additional future multi -family housing projects in the residential
targeted areas; 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 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
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. Section 4-1-220 of the Renton Municipal Code is amended as follows:
2
ORDINANCE NO. 5911
4-1-220 PROPERTY TAX EXEMPTION FOR MULTI -FAMILY HOUSING IN
RESIDENTIAL TARGETED AREAS:
A. PURPOSE:
As provided for in chapter 84.14 RCW, the purpose of this Section is to provide
limited; eight (8), ten (10), or twelve (12) year exemptions from ad valorem
property taxation for qualified new multi -family housing located in designated
residential targeted areas.
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"), which shall be maintained in
the Office of the City Clerk, and which was originally adopted as Attachment A to
3
ORDINANCE NO. 5911
Ordinance No. 5760. The boundaries of the Downtown 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 eig44W percent
(60 / 9"1 ) of the median income, as further defined in r� n RMC 4-1-
220.C.1.b.ii(a) of thus Seai ^
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 by the 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.
4
ORDINANCE NO. 5911
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 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 e-ne
percent (80 / 420%) of the median income, as further defined in
subseeRMC 4-1-220.C.1.b.ii(b) of this Seet*E ^.
9. "Multi -family housing" means one for 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. "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, which shall be maintained in the Office of the City Clerk, and which was
originally adopted as Attachment A to Ordinance No. 5760. The boundaries of the
Sunset 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.
5
ORDINANCE NO. 5911
C. TAX EXEMPTION:
1. Duration of Exemption: The value of improvements qualifying under
RMC 4-1-220.1) is exempt from ad valorem property taxation as follows:
a. For properties for which applications are submitted before July 22,
2007, the value is exempt for ten (10) successive years beginning January 1st of
the year immediately following the calendar year of issuance of the final
certificate of tax exemption.
b. For properties for which applications are submitted on or after July
221 2007 through December 17, 2018, the value is exempt:
i. For eight (8) successive years beginning January 1st of the year
immediately following the calendar year of issuance of the final certificate of tax
exemption; or
ii. For twelve (12) successive years beginning January 1st of the
year immediately following the calendar year of issuance of the final certificate of
tax exemption, if the property otherwise qualifies for the exemption and the
applicant/owner rents or sells at least twenty percent (20%) of the multi -family
housing units as affordable housing to low- and moderate -income households as
further defined in subse, ens RMC 4-1-220.C.1.b.ii(a) and (band
(a) For rental projects, at least twenty percent (20%) of the multi-
family housing units in the project shall must be rented throughout the duration of the
0
ORDINANCE NO. 5911
twelve (12) year exemption period as affordable housing to low-income households at
eighty percent (80%) or less of median income.
(b) For ownership projects, at least twenty percent (20%) of the multi-
family housing units in the project shall must be sold as affordable housing to low or
moderate income households at one hundred twenty percent (120%) or less of median
income.
JcJ-The owner may use any combination of studio, one (1)
bedroom, two (2) bedroom, and/or three (3) bedroom units to comply with the
minimum twenty percent (20%) requirement in suhs^r�i^^s and
rr�r� �rh�r;;vh► of this Sec;tieR RMC 4-1-220.C.1.b.ii(a) or (b).
jdJ- If, in calculating the minimum twenty percent (20%) of the
multi -family housing units in the project for affordable housing in subsectieR
(C)( )(b)(i;) „f this Seed,,., RMC 4-1-220.C.1.b(ii), the number contains a fraction,
then the minimum number of multi -family housing units for affordable housing
shall be rounded up to the next whole number.
Jet- When the project includes more than one (1) building with
multi -family housing units, all of the affordable housing units required in
„h.-ectieR rrv, vh►r;► of this Seetffie RMC 4-1-220.C.1.b(ii) may not be located in
the same building.
c. For properties for which applications are submitted on or after
December 18, 2018, the value is exempt:
7
ORDINANCE NO. 5911
i. For eight (8) successive years beginning January 1st of the year
immediately following the calendar year of issuance of the final certificate of tax
exemption; or
ii. For twelve (12) successive years beginning January 1st of the
year immediately following the calendar year of issuance of the final certificate of
tax exemption, if the property otherwise qualifies for the exemption and the
applicant/owner rents or sells at least twenty percent (20%) of the multi -family
housing units as affordable housing to low- and moderate -income households as
further defined in RMC 4-1-220.C.1.c.ii(a) and (b).
(a) For rental projects, at least twenty percent (20%) of the
multi -family housing units in the project shall be rented throughout the duration
of the twelve (12) year exemption period as affordable housing to low-income
households at sixty percent (60%) or less of median income.
(b) For ownership projects, at least twenty percent (20%) of the
multi -family housing units in the project shall be sold as affordable housing to low
or moderate income households at eighty percent (80%) or less of median income.
(c) The owner may use any combination of studio one (1)
bedroom, two (2) bedroom, and/or three (3) bedroom units to comply with the
minimum twenty percent (20%) requirement in RMC 4-1-220.C.1.c.ii(a) or (b).
(d) If, in calculating the minimum twenty percent (20%) of the
multi -family housing units in the project for affordable housing in RMC 4-1-
220.C.1.c(ii), the number contains a fraction, then the minimum number of multi-
ORDINANCE NO. 5911
family housing units for affordable housing shall be rounded up to the next whole
number.
L1 When the proiect includes more than one (1) building with
multi -family housing units, all of the affordable housing units required in RMC 4-
1-220.C.1.c(ii) may not be located in the same building.
2. Limits on Exemption: The exemption does not apply to the value of land
or to the value of nonhousing-related improvements not qualifying under RMC 4-
1-220.1), nor does the exemption apply to increases in assessed valuation of land
and nonqualifying improvements. This Section also does not apply to increases in
assessed valuation made by the County Assessor on nonqualifying portions of
building and value of land, nor to increases made by lawful order of a County
Board of Equalization, the Department of Revenue, or a county, to a class of
property throughout the county or specific area of the county to achieve the
uniformity of assessment or appraisal required by law.
D. PROJECT ELIGIBILITY:
To qualify for exemption from property taxation underthis Section, the project
must shall satisfy all of the following requirements:
1. Location: The property must shall be located in one of the designated
"residential targeted areas" listed below in subseetieR.RIVIC 4-1-220.D.1.a or 1)4b
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
ORDINANCE NO. 5911
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 WwthoR the Sunset Area and within iR 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 -(-R-14).
2. Size and Structure:
a. If the project is located in the Downtown and within the Residential-
14 (R-14) Zone, or w+th*n in the Sunset Area and io within either the Residential
Multi -Family (RMF) Zone or the Residential-14 (R-14) Zone, the project must 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 located in the Downtown and within the Center
Downtown (CD) Zone, or is within in the Sunset Area and is within the Center
Village (CV) Zone, the project must shall (i) consist of a minimum total of thirty
(30) new dwelling units of multi -family housing and (ii) be located within a new
mixed -use development, unless otherwise waived by the Administrator. If the
Administrator waives the mixed -use development requirement, the multi -family
housing must shall be located in a new residential structure(s). At least fifty
10
ORDINANCE NO. 5911
percent (50%) of the space within the project shall be intended for permanent
residential occupancy.
c. If one hundred percent (100%) of the housing units in a
homeownership project are affordable housing and 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 project shall (i) consist of a minimum of
ten (10) new dwelling units of multi -family housing and 00 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. Market -rate townhome projects located in the Downtown and
within the Center Downtown (CD) Zone, or in the Sunset Area and within the
Center Village (CV) Zone are not eligible for the exemption.
3. Compliance Monitoring: Any applicant/owner with affordable housing
units in the proiect shall demonstrate experience and/or ability to provide
11
ORDINANCE NO. 5911
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.
3A. 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 must 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
„b.-eetieR (D)(2) of this SeetieR RMC 4-1-220.D.2.
46. Completion Deadline: The project must shall be completed within
three (3) years from the date of approval of the contract by the City Council as
provided in RMC 4-1-220.F.2 or by any extended deadline granted by the
Administrator as provided in RMC 4-1-220.1.
E. APPLICATION PROCEDURE:
1. Form: The owner of property applying for exemption under this Section
shall submit an application to the Administrator on a form established by the
Administrator. The owner shall verify the correctness of the information
contained in the application by his/her signature and affirmation made under
kv)
ORDINANCE NO. 5911
penalty of perjury under the laws of the State of Washington. The application shall
contain such information as the Administrator may deem necessary or useful,
which at a minimum shall include:
a. A completed City application form, including information setting
forth the grounds for tax exemption and whether the owner elects to rent or sell
at least twenty percent (20%) of the multi -family housing units as affordable
housing to low- and moderate -income households to qualify for the twelve (12)
year exemption defined in subsee<ien— ;r1 fa iiTef this Seet RMC 4-1-
220.C.1.b.ii;
b. A brief written description of the project, and schematic site and
floor plans of the multi -family dwelling units and the structure(s) in which they are
proposed to be located;
c. Floor and site plans of the proposed project, which plans may be
revised by the owner provided such revisions are made and presented to the
Administrator prior to the City's final action on the exemption application;
d. A statement from the owner acknowledging the potential tax
liability when the property ceases to be eligible for exemption under this Section.
2. Fee: At the time of initial application under this Section, the owner shall
pay to the City an initial application fee of one thousand dollars ($1,000.00).
3. Deadline: The application shall be submitted prior to the issuance of the
building permit for the project, unless otherwise approved by the Council. The
13
ORDINANCE NO. 5911
Administrator shall approve or deny an exemption application within ninety (90)
days of receipt of a complete application.
F. APPLICATION APPROVAL:
1. Approval: The Administrator may approve an application if he or she
finds that:
a. The owner has complied with all of the requirements of this Section,
including but not limited to the project eligibility requirements contained in
RMC 4-1-220.1) and the application requirements contained in RMC 4-1-220.E;
and
b. The proposed project is, or will be at the time of completion, in
conformance with all approved plans, and all applicable requirements of the
Renton Municipal Code or other applicable requirements or regulations in effect
at the time the application is approved.
2. Contract Required: If the application is approved, the owner shall enter
into a contract with the City, approved by the City Council, regarding the terms
and conditions of the project under this Section.
3. Issuance of Conditional Certificate: Following Council approval of the
contract, the Administrator shall issue a conditional certificate of acceptance of
tax exemption. The conditional certificate shall expire three (3) years from the
date of Council approval of the contract unless an extension is granted as provided
in RMC 4-1-220.1.
G. APPLICATION DENIAL:
14
ORDINANCE NO. 5911
1. Denial: The Administrator shall deny an application if the criteria in
RMC 4-1-220.F.1 are not met. The Administrator shall state in writing the reasons
for the denial and send notice of denial to the owner's last known address within
ten (10) days of the denial.
2. Appeal: An owner may appeal a denial of a tax exemption application to
the City Council by filing a notice of appeal with the City Clerk within thirty (30)
calendar days of receipt of notice of the denial. The appeal before the City Council
shall be based upon the record before the Administrator, and the Administrator's
decision will be upheld unless the owner can show that there is no substantial
evidence on the record to support the Administrator's decision. The City Council's
decision on appeal is final.
H. AMENDMENT OF CONTRACT:
An owner may request an amendment(s) to the contract by submitting a
request in writing to the Administrator, together with a fee of five hundred dollars
($500.00), at any time within three (3) years of the date of the approval of the
contract as provided for in RMC 4-1-220.F.36-;�. The date for expiration of the
conditional certificate shall not be extended by contract amendment unless all the
conditions for extension set forth in RMC 4-1-220.1 are met.
1. EXTENSION OF CONDITIONAL CERTIFICATE:
1. Application: The conditional certificate may be extended by the
Administrator for a period not to exceed twenty-four (24) consecutive months.
15
ORDINANCE NO. 5911
The owner shall submit a written request stating the grounds for the extension
together with a fee of two hundred fifty dollars ($250.00).
2. Approval: The Administrator may grant an extension if the
Administrator finds that:
a. The anticipated failure to complete construction within the required
time period is due to circumstances beyond the control of the owner;
b. The owner has been acting, and could reasonably be expected to
continue to act, in good faith and with due diligence; and
c. All the conditions of the original contract between the owner and
the City will be satisfied upon completion of the project.
3. Denial — Appeal: If an extension is denied, the Administrator shall state
in writing the reason for denial and shall send notice to the owner's last known
address within ten (10) calendar days of the denial. An owner may appeal the
denial of an extension to the Hearing Examiner by filing a notice of appeal with
the City Clerk within fourteen (14) calendar days after issuance of the notice of
the denial. The appeal before the Hearing Examiner shall follow the provisions of
RMC 4-8-110.E. The owner may appeal the Hearing Examiner's decision to the
King County Superior Court according to the procedures contained in
RCW 34.05.510 through 34.05.598, as provided in RCW 84.14.090(6), within thirty
(30) days of notification by the City to the owner of the decision.
J. FINAL CERTIFICATE:
16
ORDINANCE NO. 5911
1. Application: Upon completion of the construction as provided in the
contract between the owner and the City, and upon issuance of a temporary
certificate of occupancy, or a permanent certificate of occupancy if no temporary
certificate is issued, the owner may request a final certificate of tax exemption.
The owner shall pay a fee of one thousand dollars ($1,000.00) and file with the
Administrator such information as the Administrator may deem necessary or
useful to evaluate eligibility for the final certificate, which shall at a minimum
include:
a. A statement of expenditures made with respect to each multi -family
housing unit and the total expenditures made with respect to the entire property;
b. A description of the completed work and a statement of
qualification for the exemption;
c. The total monthly rent or total sale amount of each multi -family
housing unit rented or sold to date;
d. The income of each renter household to date at the time of initial
occupancy and the income of each initial purchaser of owner -occupied multi-
family housing units to date at the time of purchase;
e. If applicable, a statement that the project meets the affordable
housing requirements in sabsestien— 1 f3 iiTof this SeEtien RMC 4-1-
220.C.1.b.ii, along with the number, type, and specific multi -family housing units
rented or sold to date, as applicable, to meet the affordable housing
requirements;
17
ORDINANCE NO. 5911
f. Any additional information requested by the City pursuant to
meeting any reporting requirements under Chapter 84.14 RCW; and
g. A statement that the work was completed within the required three
(3) year period or any approved extension.
2. Determination: Within thirty (30) days of receipt of all materials
required for a final certificate, the Administrator shall determine whether the
completed work is consistent with the contract between the City and owner,
whether all or a portion of the completed work is qualified for exemption under
this Section and, if so, which specific improvements satisfy the requirements of
this Section.
3. Filing with County Assessor: For projects that comply with the
requirements of RMC 4-1-220.J.1, the City shall file a final certificate of tax
exemption with the King County Assessor within ten (10) days of the expiration of
the thirty (30) day period provided in the prior subsection.
4. Recording: The Administrator is authorized to cause to be recorded, at
the owner's expense, in the real property records of the King County Recorder's
Office Depfftment. of ReG9FdS ,.,H Emler-tie%, the contract with the City required
under RMC 4-1-220.F.2, as amended under RMC 4-1-220.H, if applicable, and/or
such other document(s) as will identify such terms and conditions of eligibility for
exemption under this Section as the Administrator deems appropriate for
recording.
18
ORDINANCE NO. 5911
5. Denial: The Administrator shall notify the owner in writing that the City
will not file a final certificate if: (a) the Administrator determines that the project
was not completed within the required three (3) year period or any approved
extension, or was not completed in accordance with the contract between the
owner and the City and the requirements of this Section, or the owner's property
is otherwise not qualified for the limited exemption under this Section; or (b) the
owner and Administrator cannot come to an agreement on the allocation of the
value of the improvements allocated to the exempt portion of the project.
6. Appeal: The owner may appeal the Administrator's decision to the
Hearing Examiner by filing a notice of appeal with the City Clerk within fourteen
(14) calendar days after issuance of the notice of the denial. The appeal before the
Hearing Examiner shall follow the provisions for appeal contained in RMC 4-8-
110_E. The owner may appeal the Hearing Examiner's decision to the King County
Superior Court according to the procedures contained in
RCW 34.05.510 through 34.05.598, as provided in RCW 84.14.090(6), within thirty
(30) days of notification by the City to the owner of the decision.
K. ANNUAL CERTIFICATION AND REPORT:
Within thirty (30) days after the first anniversary of the date the City issued
the final certificate of tax exemption and each year thereafter for the duration of
the tax exemption period, the property owner shall file an annual report with the
Administrator. For a project with any affordable housing units, the property owner
shall also provide documentation as part of the annual report that a third -party
19
ORDINANCE NO. 5911
entity has verified theyroject's compliance with the affordable housing
requirements in RMC 4-1-220.C.1.b.ii and 4-1-220.D.2.c as applicable Failure to
submit the annual report may result in cancellation of the tax exemption. The
certification shall contain such information as required by Chapter 84.14 RCW and
as the Administrator may deem necessary or useful, and shall at a minimum
include the following information:
1. A statement of occupancy and vacancy of the multi -family dwelling units
during the twelve (12) months ending with the anniversary date;
2. A certification that the property has not changed use and, if applicable,
that the property has been in compliance with the affordable housing
requirements as described in subseetieR (c)( vb)(ii) „f this Seetie RMC 4-1-
220.C.1.b.ii since the date the City issued the final certificate of tax exemption and
that the project continues to be in compliance with the contract with the City and
the requirements of this Section;
3. A description of any improvements or changes to the property made
after the City issued the final certificate of tax exemption;
4. The total monthly rent of each multi -family housing unit rented or the
total sale amount of each multi -family housing unit sold to an initial purchaser
during the twelve (12) months ending with the anniversary date;
5. The income of each renter household at the time of initial occupancy
and the income of each initial purchaser of owner -occupied multi -family housing
20
ORDINANCE NO. 5911
units at the time of purchase during the twelve (12) months ending with the
anniversary date;
6. If applicable, a breakdown of the number, type, and specific multi -family
housing units rented or sold during the twelve (12) months ending with the
anniversary date, as applicable, to meet the affordable housing requirements in
subs ,,. ien „f this Seetie RMC 4-1-220.C.1.b.ii; and
7. Any additional information requested by the City pursuant to meeting
any reporting requirements under Chapter 84.14 RCW.
L. CANCELLATION OF TAX EXEMPTION:
1. Cancellation: If at any time the Administrator determines that: (a) the
property no longer complies with the terms of the contract or with the
requirements of this Section; (b) the use of the property is changed or will be
changed to a use that is other than residential; (c) the project violates applicable
zoning requirements, land use regulations or building code requirements; or (d)
the property for any reason no longer qualifies for the tax exemption, the tax
exemption shall be canceled and additional taxes, interest and penalties imposed
pursuant to State law. Upon determining that a tax exemption shall be canceled,
the Administrator shall notify the property owner by certified mail, return receipt
requested.
2. Appeal: The property owner may appeal the determination by filing a
notice of appeal with the City Clerk, within thirty (30) days after issuance of the
decision by the Administrator, specifying the factual and legal basis for the appeal.
21
ORDINANCE NO. 5911
The appeal before the Hearing Examiner shall follow the procedures set forth in
RMC 4-8-110.E. At the appeal hearing, all affected parties may be heard and all
competent evidence received. The Hearing Examiner shall affirm, modify, or
repeal the decision to cancel the exemption based on the evidence received. The
Hearing Examiner shall give substantial weight to the Administrator's decision to
cancel the exemption, and the burden of proof and the burden of overcoming the
weight accorded to the Administrator's decision shall be upon the appellant. An
aggrieved party may appeal the Hearing Examiner's decision to the King County
Superior Court in accordance with the procedures in
RCW 34.05.510 through 34.05.598, as provided in RCW 84.14.110(2), within thirty
(30) days after issuance of the decision of the Hearing Examiner.
3. Change of Use: If the owner intends to convert the multi -family housing
to another use, the owner must shall notify the Administrator and the King County
Assessor within sixty (60) days of the change in use. Upon such change in use, the
tax exemption shall be canceled and additional taxes, interest and penalties
imposed pursuant to State law.
M. SUNSET OF EXEMPTION FOR APPLICATIONS FOR CONDITIONAL
CERTIFICATES:
The City shall not accept new applications for conditional certificates as
provided in RMC 4-1-220.E after the close of business on December 31, 24182021,
unless extended by City Council action. The City shall process (1) pending complete
applications for a conditional certificate submitted before the close of business on
22
ORDINANCE NO. 5911
December 31,82021, and (2) applications for an extension of the conditional
certificate and/or a final certificate received after the close of business on
December 31,82021, as provided in subsections D through J of this Section.
Subsections C and J through L of this Section shall continue to apply to all
properties that have been or are issued a final certificate of tax exemption under
RMC 4-1-220 until expiration, termination or cancellation of the tax exemption.
Incomplete applications for conditional certificates as of the close of business
on December 31, 24182021, shall be denied and/or returned to owners.
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 101h day of December, 2018.
Jas A. Seth, 9ty Clerk
23
ORDINANCE NO. 5911
APPROVED BY THE MAYOR this 10' day of December, 2018.
Approved as to form:
Shane Moloney, City orney
Date of Publication: 12/14/2018 (summary)
ORD:2046:11/27/18:scr
Denis Law, Mayor
24