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HomeMy WebLinkAboutMulti-Family Housing Property Tax Exemption (6/23/2008) r r,r Amends ORD 5400 CITY OF RENTON, WASHINGTON ORDINANCE NO. 5427 AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING CHAPTER 1, ADMINISTRATION AND ENFORCEMENT, OF TITLE IV (DEVELOPMENT REGULATIONS) OF ORDINANCE NO. 4260 ENTITLED "CODE OF GENERAL ORDINANCES OF THE CITY OF RENTON, WASHINGTON," BY MODIFYING THE APPLICATION DEADLINE FOR MULTI-FAMILY HOUSING TAX EXEMPTIONS. WHEREAS, on December 22, 2003, the Renton City Council adopted 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 provisions of Section 4-1-220, Property Tax Exemption for Multi- Family Housing in Residential Targeted Areas, have been useful in helping to encourage increased residential opportunities and stimulate new construction of multi-family housing in residential targeted areas; and WHEREAS, the Renton City Council desires to amend RMC 4-1-220 to modify the application deadline to provide greater flexibility; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES ORDAIN AS FOLLOWS: SECTION I. Subsection 4-1-220E, Application Procedure, of Chapter 1, Administration and Enforcement, of Title IV (Development Regulations) of Ordinance No. 4260 entitled "Code of General Ordinances of the City of Renton, Washington," is hereby amended to read as follows: 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 1 tose ORDINANCE NO. 5427 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 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 subsection (C)(1)(b)(ii) of this Section; 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 ORDINANCE NO. 5427 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 Administrator shall approve or deny an exemption application within ninety (90) days of receipt of a complete application. SECTION II. This ordinance shall be effective upon its passage, approval, and thirty (30) days after its publication. PASSED BY THE CITY COUNCIL this 17th day of November , 2008. Bonnie I. Walton, City Clerk APPROVED BY THE MAYOR this 17th day of November , 2008. ' 4./lite;0 Lay_ Dents Law, Mayor Appro d as to form: ituu.A44.k..qe?'k?6—P-"Ag%._- Lawrence J. Warren, City Attorney Date of Publication: 11/22/2008 (summary) ORD.1512:10/3 0/08:s cr 3 Ca a, > C O O O C 2,t bCA U C 00> O ci O O t-,.>, 4 L N _ C W a ti c c c onm o c 2 y azi = ° 8 ti oACV 3 0 LU c c c4 ,, c c o,4.0 _ o a ceN a 0 g 0 0 ��a bs.? ' Oz o— a, OU h C F 0:d•• C C C. O !ate o'er g, - coE m- ov°' a' 0. '"",4.,(Ni 4•.0 c-d °' c8 o O a p c c o.s 0• 0.. o O 0.00 g �� c :b- cs o o co °' Z Q U,0 o U w ocn-o >'.6 d c . ,v 0, on.= c.7 P °J 5 V c CY. O� oU Y wo 'yU ..oo-8 ao� a �� 0 o74 0 o 2,-,, zUF Cv c�'a a> c• 0, E zU.c-o° =6 `' Soo•- Nx-5 a� c-� 3 sd o adU E c wL4w �')oa�� w.8 <4 °Cw3 S. ,-ocn >,1-4 acci cv 6•cU� G.T. Z Z 0 U aCi c E S y o ''. Qj `° oo U ❑ t 0 c an a`>oo a,.w U 0., o w ❑ >, vi 0 � °i d o `9 ov g E -38d 0 d F3 goo cb o.ro s 0 ° n. N c°aO�Us1:3, FOw =. 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C..) 4-'';V, 1-51).9, n/ 0 Z M °\\ k,..j 7:i CU . -cy �•° °' o -� � rn �.� 0 0 ;� QUO a ,_ d ct oA a. U cz E-1 0 2 E'l 3 E-4� ► l.- v> ., 04 July 14,2008 Renton City Council Minutes _, Page 236 Fire: 2006 International Fire An ordinance was read amending Chapter 5, Building&Fire Prevention Code Adoption Standards,and Chapter 11, Definitions, of Title IV(Development Regulations), of City Code, to adopt the 2006 International Fire Code, and to amend the definitions of medical institutions and vehicle fueling stations. MOVED BY TAYLOR, SECONDED BY BRIERE,COUNCIL REFER THE ORDINANCE FOR SECOND AND FINAL READING ON 7/21/2008. CARRIED. The following ordinance was presented for second and final reading and adoption: Ordinance #5400 An ordinance was read amending Chapter 1, Administration and Enforcement, CED: Multi-Family Housing of Title IV (Development Regulations), of City Code, by modifying the Property Tax Exemption designated residential targeted areas, implementing the provisions of House Bill Modifications 1910, incorporating affordable housing, and modifying project eligibility and fees. MOVED BY PARKER, SECONDED BY ZWICKER, COUNCIL ADOPT THE ORDINANCE AS READ. ROLL CALL. ALL AYES. CARRIED. Ordinance #5401 n ordinance was read amending Chapter 2, Zoning Districts - Uses and Planning: Development Standards, of Title IV (Development Regulations), of City Code, to add Regulations (Title IV) Docket egulations regarding the required location for parking for properties that abut Review ,q. an alley in the Residential 8 (R-8) single family residential zoning designation. MOVED BY PARKER, SECONDED BY ZWICKER, COUNCIL ADOPT THE ORDINANCE AS READ. ROLL CALL. ALL AYES. CARRIED. EXECUTIVE SESSION MOVED BY PALMER, SECONDED BY PERSSON, COUNCIL RECESS AND ADJOURNMENT INTO EXECUTIVE SESSION FOR APPROXIMATELY 30 MINUTES TO DISCUSS LITIGATION WITH NO OFFICIAL ACTION TO BE TAKEN AND THAT THE COUNCIL MEETING BE ADJOURNED WHEN THE EXECUTIVE SESSION IS ADJOURNED. CARRIED. Time: 8:59 p.m. Executive session was conducted. There was no action taken. The executive session and the Council meeting adjourned at 9:25 p.m. Bonnie I. Walton, CMC, City Clerk Recorder: Jason Seth July 14, 2008 236 July 7,2008 Renton City Council Minutes „ Page 224 c. Incorporating affordable housing; and d. Modifying project eligibility and fees The Committee further recommended that the ordinance regarding this matter be presented for first reading. MOVED BY PARKER, SECONDED BY ZWICKER, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. (See later this page for ordinance.) Council: Planning& Planning&Development Committee Parker presented a Planning& Development Committee Development Committee clean-up report recommending the following referrals Agenda Item Clean-up Report be closed: 1. Item#2308, "Multiple-Story Building Within the Height Limitation." This issue will be handled as part of the 2006 Title IV Docket housekeeping (#2397). ?. Item#2393, "Public Right of Way,Political Sign Placement." The Committee met to discuss this issue on 6/21/2007, 8/9/2007, and 9/6/2007. The City Attorney prepared a preliminary draft,but at this time the Committee recommends no further action be taken. ✓LOVED BY PARKER, SECONDED BY ZWICKER, COUNCIL CONCUR N THE COMMITTEE REPORT. CARRIED. RESOLUTIONS AND The following resolutions were presented for reading and adoption: ORDINANCES Resolution#3954 A resolution was read authorizing the Mayor and City Clerk to execute the Transportation: I-405 (at Memorandum of Understanding between the State of Washington Department Talbot Rd S) Cooperative of Transportation and the City of Renton,regarding the cooperative operation Traffic Signal Operation, of traffic signals at the I-405 ramp located on Talbot Rd. S. MOVED BY WSDOT PERSSON, SECONDED BY CORMAN, COUNCIL ADOPT THE RESOLUTION AS READ. CARRIED. Resolution#3955 A resolution was read authorizing the Mayor and City Clerk to enter into a Fire: 2008 Basic Life Support contract with King County regarding funding for Basic Life Support services Services,King County for the Renton Fire and Emergency Services Department. MOVED BY TAYLOR, SECONDED BY PERSSON, COUNCIL ADOPT THE RESOLUTION AS READ. CARRIED. The following ordinances were presented for first reading and referred to the Council meeting of 7/14/2008 for second and final reading: CED: Multi-Family Housing ' An ordinance was read amending Chapter 1, Administration and Enforcement, Property Tax Exemption of Title IV (Development Regulations) of City Code,by modifying the Modifications designated residential targeted areas, implementing the provisions of House Bill j) 1J. 1910, incorporating affordable housing, and modifying project eligibility and fees. MOVED BY PARKER, SECONDED BY ZWICKER, COUNCIL REFER THE ORDINANCE FOR SECOND AND FINAL READING ON 7/14/2008. CARRIED. Arse Are = ��� o = Gg. ov=� 4 go �� 8�=� �6 c 3zil .. , ai r , E > O E o 0 0 3= ,E E ' c- "Z raEM•pba 2, ° Ls. E f,cn U c 3 y vrJ c^U o Wcywo W�x c ^ ^ E v :`,D,�U = - . o go-6 e-8'°= .c -- =.0za�cs� 3c o o�cn _ E3 c :J.c vc vaox ..cc . F-2 •o > Vvs � . 0 OUK � o c ' 7-2a o ' sE ? . v == Ez0z� cE -crv. - . 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O.— C — �i C C r•r v oct C v 'c3 ❑ c� r .�. v )-c-- — V)A ���yy `� off, ° ow �.1 ,_ W . v, Q. v.. bA ° i~ O X 0.,b e; CJ t G a, n C o cd �, v - v v 4, :� -f O c, O O bA 0,z r/ O I �j =4 y C H~ �'a~-+ em s.. w .O Ci ° C � ;',) • "c ��' % v� O . c� s~ ..•C cn O �' O 'i. G a O •—J — W G a4 - -a cc; ,), 3 4, a g - -c v o� �;� L` v _ CAI-1 ...) 'I`) O bA RS O i•" C O Val Q, "� i 0 3 = aA;= O 0 O. CI s � � '. v ° W Oa, v) a.) ° a; ,A a, % GA.� ;` t� C� = '0 �" •..J v 0 ► a cC ,C OA,-C cis .� v = v Qw � Q c3 OVA0,� C� :c3 . � O i6,. E'- E-, 1 , fit/; 4 1— •— June 23,2008 Renton City Council Minutes *..e' Page 210 Concluding, Deputy Chief Flora stated that the goals of the plan are to educate and explain the fireworks ban to citizens. He affirmed that voluntary compliance is very important and encouraged citizens to attend the City- sponsored event at Gene Coulon Memorial Beach Park. Councilmember Taylor commended the Fire Department for reaching out to citizens and noted that citizens should call 911 if they hear fireworks in their neighborhood. Councilmember Corman stated that the ordinance approving the fireworks ban was passed in 2005 and was challenged by an initiative to overturn the ban. He clarified that Renton voters had affirmed the ban. PUBLIC HEARING This being the date set and proper notices having been posted and published in Planning: Multi-Family accordance with local and State laws; Mayor Law opened the public hearing to Housing Property Tax consider proposed modifications to the existing multi-family housing property Exemption Modifications tax exemptions. Alex Pietsch, Economic Development Administrator, stated that Renton's property tax exemption incentive has been utilized by numerous multi-family projects. He stated that staff has been working on modifications this year to take advantage of an additional incentive for affordable housing put in place by the state legislature. Senior Economic Development Specialist Mark Santos-Johnson stated that the tax exemption incentives were adopted in 2003 in three designated areas: South Lake Washington,the Highlands, and Downtown. He noted that these areas lacked sufficient available, desirable and convenient residential housing. Mr. Santos-Johnson stated that to be eligible, a project has to be located in one of the three designated targeted areas,be a new multi-family housing project with four or more units per building,and has to have a minimum of ten or thirty attached dwelling units, depending on the zoning. Mr. Santos-Johnson explained that the tax exemption applies only to the building, not the land or appurtenances, and it applies to all local, county and " state taxes, including taxing districts like hospitals. He stated that seven projects had been approved providing 1,602 affordable housing units. Mr. Santos-Johnson summarized the proposed modifications to the multi-family housing property tax exemption into four categories: modifications to the designated"residential targeted areas;"modifications to implement the provisions of House Bill 1910; modifications to incorporate affordable housing; and modifications to project eligibility requirements and fees. Continuing, Mr. Santos-Johnson stated that proposed modifications to the designated "residential targeted areas"includes removing"South Lake Washington"as a residential targeted area, and modifying the"Highlands" residential targeted area to change the"R-10"zone to the"R-14"zone and revise the residential targeted areas map to reflect the expanded Center Village (CV) Comprehensive Plan designation area for the Highlands. He reported that proposed modifications to implement the Engrossed Second Substitute House Bill 1910 adopted by the Washington State Legislature in 2007 and to incorporate affordable housing includes: 1. Changing the 10-year exemption for projects submitted on or after July 22, 2007,to an 8-year exemption, or a 12-year exemption if the project provides at least 20% of the housing units as affordable rental or for-sale housing as follows: June 23,2008 N..+ Renton City Council Minutes Page 211 a. For rental projects, at least 20%of the units in the project must be affordable to low income households at 80%or less of median income. b. For ownership projects, at least 20% of the units in the project must be affordable to moderate income households at 120% or less of median income. 2. Add definitions for"Affordable Housing", "Household", "Low income Household", "Median Income Household", and"Moderate Income Household", and designate the residential targeted areas as "targeted for low-income housing serving households at or below 80%of median income." 3. Modify the application, final certificate, and annual certification material in order to administer the affordable housing element of the Exemption and comply with the additional reporting requirements included in House Bill 1910. Concluding, Mr. Santos-Johnson reported that modifications to project eligibility and fees include increasing the minimum number of housing units for eligible projects in the Residential Multi-Family Urban Center(RM-U) zone from 10 to 30 units, omitting the Special Design Regulations now integrated into the Development Regulations for all eligible zones, increasing the project application, final certificate, and contract amendment fees, and adding a definition of"mixed-use" for Exemption projects to further refine eligibility. Public Comment was invited. David Halinen (Fircrest) stated that he is the attorney for AnMarCo, owner of the old Stoneway site located along the SE Maple Valley Hwy(SR 169). He expressed support for the modifications and submitted a letter via the City Clerk requesting that the Stoneway site and adjacent properties be added to the "residential targeted areas" list. Council discussion ensued regarding the opportunities available to develop the site, adding the site as a future work program, consideration of the currently proposed modifications, the impact of implementing measures to comply with House Bill 1910, and moving the currently proposed modifications forward. Garrett Huffman (Bellevue), President, Master Builders Association, stated that his membership generally supports the modifications and would like to see the South Lake Washington area remain a"residential targeted area." He also noted that any fee increases would be passed on to customers. Councilmember Parker remarked that the tax exemption is a strong incentive that would help the City meet density issues needed to comply with the Growth Management Act. He also opined that the incentives would stimulate economic development and that the fees were fair and just. Dorothy Lengyel (Bellevue), representing Downtown Action to Save Housing (DASH), voiced support for the proposed modifications. She noted that providing housing close to transit hubs is critical during rough economic times. Greg James (Sammamish) expressed support for the proposed addition of the Stoneway site and adjacent properties to the"residential targeted areas" list. June 23,2008 Renton City Council Minutes .,.. Page 212 LRobert O'Wiley (Burien) stated that he supports the proposed modifications and expressed pleasure with the ease of dealing with City officials and staff while working on local projects. Councilmember Corman remarked that the exemption is targeted for areas already zoned for multi-family, and it is an incentive to get developers to build multi-family housing projects in specific areas. He commented that the exemption is not being used in areas that are already developed. There being no further public comment, it was MOVED BY PARKER, SECONDED BY ZWICKER, COUNCIL CLOSE THE PUBLIC HEARING. CARRIED. MOVED BY PARKER, SECONDED BY ZWICKER, COUNCIL REFER MR. HALINEN'S LETTER TO THE PLANNING& DEVELOPMENT COMMITTEE. CARRIED. (See page 216 for further discussion regarding this matter.) AUDIENCE COMMENT Arland"Buzz"Johnson(Renton)requested that Council recommend to Sound Citizen Comment: Johnson - Transit that they increase the frequency of the 101 buses from 30 minutes to 20 Sound Transit& Bus Service minutes during off peak times. Mr. Johnson also inquired about bus lanes on side streets. Chief Administrative Officer Covington responded that bus lanes had traffic signal priority and that the City would welcome more bus traffic in Renton. Citizen Comment: Davis- Dina Davis(Renton), Renton Hill representative to the Airport Advisory Excessive Helicopter Noise Committee,reported excessive levels of helicopter noise late at night and at early morning hours emanating from the Renton Airport due to graduation ride events. She requested that the City adopt an Airport"quite time"and consider the amount of complaints a tenant receives when negotiating lease renewals. Mayor Law agreed that the noise was excessive and stated that he will be meeting with the owners to emphasize the importance of being good neighbors. He also responded that the FAA allows the flights and the City has little recourse. CONSENT AGENDA Items on the consent agenda are adopted by one motion which follows the listing. At the request of Councilmember Zwicker, item 7.i. was removed for separate consideration. Council Meeting Minutes of Approval of Council meeting minutes of 6/16/2008. Council concur. 6/16/2008 Finance: Bad Debt Write Off Finance and Information Services Department requested approval to write off bad debt in the total amount of$41,462.21. Refer to Finance Committee. Finance: Business License Finance and Information Services Department recommended approval of Fees & Revocation Revisions proposed changes to the collection of business license fees and revocation of licenses. Refer to Finance Committee. Transportation: Duvall Ave Transportation Systems Division recommended approval of a construction NE Reconstruction Utility agreement with Qwest resulting in the reimbursement of$100,428 for Conversion, Qwest underground utility conversion as part of the Duvall Ave. NE Widening/Coal Creek Parkway SE Reconstruction project. Refer to Transportation(Aviation) Committee. , June 23,2008 `,r,,, Renton City Council Minutes _ Page 216 ORDINANCE #5393 An ordinance was read changing the zoning classification of certain property Rezone: Hudson Annexation (formerly the Hudson Annexation area) within the City of Renton from Property, R-10 to CN Residential Ten Dwelling Units per acre(R-10) to Commercial Neighborhood (CN). MOVED BY PERSSON, SECONDED BY ZWICKER, COUNCIL ADOPT THE ORDINANCE AS READ. ROLL CALL. ALL AYES. CARRIED. ORDINANCE#5394 An ordinance was read changing the zoning classification of certain property Rezone: Hudson Annexation (formerly the Hudson Annexation area) within the City of Renton from Property, R-10 to R-14 Residential Ten Dwelling Units per acre (R-10) to Residential Fourteen Dwelling Units per acre (R-14). MOVED BY PERSSON, SECONDED BY ZWICKER, COUNCIL ADOPT THE ORDINANCE AS READ. ROLL CALL. ALL AYES. CARRIED. ORDINANCE #5395 An ordinance was read changing the zoning classification of certain property Rezone: Hudson Annexation (formerly the Hudson Annexation area) within the City of Renton from Property, R-8 to R-14 Residential Eight Dwelling Units per acre(R-8) to Residential Fourteen Dwelling Units per acre(R-14). MOVED BY PERSSON, SECONDED BY ZWICKER, COUNCIL ADOPT THE ORDINANCE AS READ. ROLL CALL. ALL AYES. CARRIED. ORDINANCE #5396 An ordinance was read changing the zoning classification of certain property Rezone: Hudson Annexation (formerly the Hudson Annexation area)within the City of Renton from Property, R-8 to R-10 Residential Eight Dwelling Units per acre(R-8) to Residential Ten Dwelling Units per acre(R-10). MOVED BY PERSSON, SECONDED BY ZWICKER, COUNCIL ADOPT THE ORDINANCE AS READ. ROLL CALL. ALL AYES. CARRIED. ORDINANCE #5397 An ordinance was read changing the zoning classification of certain property Rezone: Hudson Annexation (formerly the Hudson Annexation area)within the City of Renton from Property, R-8 to CN Residential Eight Dwelling Units per acre(R-8) to Commercial Neighborhood (CN). MOVED BY PERSSON, SECONDED BY ZWICKER, COUNCIL ADOPT THE ORDINANCE AS READ. ROLL CALL. ALL AYES. CARRIED. AUDIENCE COMMENT iane Paholke (Renton) asked if the old Stoneway site and adjacent area had Citizen Comment: Paholke - een added as a"designated targeted area"to the multi-family housing property Multi-Family Housing tax exemption list and requested that adequate studies be done prior to Property Tax Exemption redeveloping the area. Modifications Council discussion ensued regarding the old Stoneway site, the need to analyze the situation, the potential impacts to traffic and schools any new development would have, the idea of redeveloping areas closer in to the City, the topics considered during the public hearing, and the incentives the tax exemption could provide. Annexation: Benson Hill Mayor Law thanked staff for a job well done at the Benson Hill Communities Communities Annexation area picnic held at Cascade Elementary School on Saturday,June 21. ADJOURNMENT MOVED BY PERSSON, SECONDED BY CORMAN, COUNCIL ADJOURN. CARRIED. Time: 8:26 p.m. Bonnie I. Walton, CMC, City Clerk Recorder: Jason Seth June 23, 2008 w Noir Department of Community & Exemption Background Information Economic Development ■ City Council established Exemption incentive in 2003 to encourage multi-family housing Modifications to the Multi-Familydevelopment in three designated residential targeted areas: Housing Property Tax Exemption — RMC 4-1-220 ("Exemption") ❑Highlands o Downtown June 23,2008 ❑South Lake Washington 1 2 Exemption Background Information Exemption Background Information ■ Eligible projects must: • Exemption applies to qualified new multi- family housing construction for limited time o Be located in a designated residential targeted period area • Exemption does not include the land,existing improvements or non-housing-related ❑Be new multi-family housing projects with four or improvements more units per building • Exemption applies to all levels of the ad ❑Have a minimum of 10 or 30 attached dwelling valorem property tax, including the City, units depending upon zoning county,state&all local taxing districts 3 4 Exemption Approved Projects Proposed Exemption Modifications (Major Categories) Housing Type of Project Name Units Targeted Area Housing Menill Gardens at Renton ■ Modify the residential targeted areas Centre 154 Downtown Rental Parkside at 95 Burnett 106 Downtown Rental • Implement provisions of state House Bill 1910 The Bristol II at Southport 195 South Lake WA Rental Chateau de Ville 50 Downtown For Sale The Reserve 440 South Lake WA Rental • Incorporate affordable housing The Sanctuary 440 South Lake WA Rental Harrington Square 217 Highlands Rental • Modify project eligibility and fees Total 1,602 5 6 Modify the Residential 4 ' Targeted Areas I " • Remove South Lake Washington targeted area ' rrr ❑ Exemption used by 3 projects with 1,075 units i ❑ Area no longer lacks sufficient available,desirable& 03 convenient housing x i 77 I • Modify the Highlands targeted area to change • ` 4 R-10 to R-14 zoning&reflect the expanded : Center Village Comp Plan designation area \ ""* P ) ❑ Conforms to zoning&Comp Plan changes approved by Council in 2007 r. 72. s 7 Implement House Bill 1910 & Implement House Bill 1910 & Incorporate Affordable Housing Incorporate Affordable Housing • Original Exemption applied to eligible projects for • Proposed affordability housing requirements ten years to qualify for 12-year exemption: • In 2007,the WA State Legislature passed House Bill 1910-changed the exemption for future ❑ Rental projects-at least 20%of units affordable projects to 8 years or(if at least 20%of the units to households at 80%or less of median income are affordable)12 years • State House Bill 1910 also includes new annual ❑ Ownership projects-at least 20%of units reporting requirements for Exemption project affordable to households at 120%or less of owners&local jurisdictions median income 9 10 Implement House Bill 1910 & Modify Project Eligibility& Fees Incorporate Affordable Housing • Increase the minimum number of units for • Establish the designated residential targeted areas projects in the Residential Multi-Family Urban as targeted areas for low-income housing serving Center(RM-U)zone from 10 to 30 units households at or below 80%of median income • Add new definitions for Exemption projects for ❑ Conforms with changes in Waived Fees(RMC 4-1- "Affordable Housin Household,""Low income 210)incentive adopted by Council in 2007 for for-sale g' housing in downtown Renton Household,""Median Income"&"Moderate Income Household" • Remove the Special Design Regulations • Modify application,final certificate&annual ❑ Unnecessary since now integrated into the certificate reporting requirements to secure Development Regulations for all eligible zones information about project affordability 11 12 Implement House Bill 1910 & Modify Project Eligibility & Fees Incorporate Affordable Housing Current Proposed Fee Description Fee Fee • Add a new"Mixed-Use"definition for Exemption projects to further refine eligibility Initial Application $500 $1,000 ❑ Existing mixed-use definition in RMC too general Amendment of Contract $250 $500 ❑ Definition would apply to Exemption projects in Extension of Conditional the CD zone,within the CV Comp Plan Certificate $250 $250(same) designation and in the CV zone,and in the RM-U zone Final Certificate Application $250 $1,000 13 14 Next Steps Questions? Comments? • Public Hearing tonight • No Council action needed at this timer t t itat ■ Matter to be reported out by the Planning& ( \ Development Committee for action by Council at the 7/7 meeting 15 16 Pedite: /4/6a4erte. HALINEN LAW OFFICES, P.S. A Professional Service Corporation David L. Halinen,P.E. 1019 Regents Blvd., Suite 202 Tacoma: (253)627-6680 davidhalinen@halinenlaw.com Fircrest, Washington 98466-6037 Seattle: (206)443-4684 Fax: (253)272-9876 June 23, 2008 HAND-DELIVERED OR I" I A L Renton City Council 1055 S. Grady Way, Seventh Floor Renton, Washington 98055 RE: The City Staff's Proposed Modifications to the Multi-Family Housing Property Tax Exemption("Exemption") Supplemental Public Hearing Testimony and Written Materials on Behalf of My Client AnMarCo Dear Council Members: On behalf of my client AnMarCo, I am writing to provide supplemental public hearing testimony and written materials concerning the City Staffs proposed modifications to the Multi- Family Housing Property Tax Exemption("Exemption"). In general, AnMarCo supports the Staff-proposed modifications as far as they go but requests that the City Council make further modifications to include the privately-owned COR- zoned properties along the Maple Valley Highway' within the designated residential targeted areas for the Exemption. (See Exhibit A, the attached 11" by 17" color copy of the City's proposed Targeted Areas Map, on which I have had those COR-zoned properties outlined with a black dotted line and shaded in yellow. See also Exhibit B, the attached 11" by 17" color aerial photo exhibit on which the privately-owned COR-zoned properties along the Maple Valley Highway have been outlined in red.) The privately-owned COR-zoned properties along the Maple Valley Highway need the encouragement that the Exemption would provide for redevelopment. Those properties have been zoned COR for 14 years and, to date, not one of them has yet been redeveloped. According to King County Assessor's records, the privately-owned COR-zoned properties along the Maple Valley Highway appear to have five different owners. My client AnMarCo owns the former Stoneway Concrete site, which lies at the northwest end of this grouping of COR properties. Ramac, Inc. owns three parcels to the southeast of the former Stoneway site: one parcel being the site of an existing two-story office building, another being the site of a hall that in the past has been used for bingo and the third being the site of the low- ' The Cedar River Park, which is located at the west end of this area of COR-zoned properties is also zoned COR. Because the park is in public ownership and has extensive improvements and use, AnMarCo does not suggest that the park be included within the area targeted for the Exemption. , Renton City Council June 23, 2008 Page 2 rise Riviera Apartments. (A very large parking lot that has no landscaping exists on the parcel that has the hall that has in the past been used for bingo.) Seung Sik and Eunsil Park own two small parcels in front of the east portion of the Riviera Apartments, one with a small retail store and one with parking. To the east of them is a row of three modest size parcels owned by Phyllis Larue, each with an older existing single family residence. Puget Sound Energy owns a tiny vacant parcel at the extreme east end of the COR properties. (See also Exhibit C, the attached 11" by 17" color parcel map on which the existing uses of these various parcels have been noted.) The City would benefit from having all of these already-developed privately owned COR properties redeveloped. These properties are located at one of the City's primary gateways, Maple Valley Highway. They were all developed long ago and redevelopment would bring this area into the twenty-first century. COR for the last 14 years has been insufficient to induce redevelopment. Adding these privately-owned COR-zoned properties along the Maple Valley Highway within the designated residential targeted areas for the Exemption would provide increased impetus for redevelopment. AnMarCo requests that you add these properties to the targeted areas for the Exemption. Sincerely, HALINEN LAW 0 ICES, P.S. C � David L. Hall en Enclosures (Exhibits A, B and C) cc: AnMarCo Attn: Donald J. Merlin Denis Law, Mayor(with copies of enclosures) Mark Santos-Johnson, City of Renton Department of Community and Economic Development (with copies of enclosures) Y:\cf\2558\004\City Council LT1 (6-23-08).doc \ .%,. \N --- ILL\ fa ...._ at:: '4E111111 ' '-'-q--S *'gra . _ . - i r c- i �Isew lF ,. _, �". NNW. • a is , ,,1! Vi .fft. - vit g��t /, ��y z i ( `'"'�.�' A��,IIr{�ii �i�I#r IN �t' r� .141 .1...ve..,.., .0-A.N.: :44 to - in 1 ram Q-sr.... gird .. 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L f► a w t rf N1f Ir/ 007c1v1-F Wtk •-e 1(-,-,-".-T.y1 ,BiE Y _ y Illilitli /1 .,,-'.":17: /I ' 98\-1 ';',41 ..‘ . \ ir,/,,,,, „. , . . „ , , ,.,.. , , s_ _ \\ ..'"Yf�sr.-s -�-i iIiti 11!�' , i r, ���*fi11114INIUN!1"? . f I MAPLE VALLEY "`�> ?► . - N 1 11u ma . f IF HIGHWAY . y:.'d I - I II 41'- '� � `` I _ COR AREA ' �— t� �rl� �� i '_�. (PROPOSED BY Ali + --`` �; t___L_____i__ _/' I IMP 1 N ' t G � '-firs A MARCO) I I /r I ,t /_ =I C'{ JrrC I � *,� ��„ _ I }ma'EXHIBIT A Proposed Changes to the Residential Targeted Areas for Multi-Family Housing Property Tax Exemption Y Department of Community Legend <c O r"r Maple Valley Highway COR '4 & Economic Development JCityLimits •••U e (Commercial/Office/Residential)areaIti=• Alex Pietsch,Administrator Renton Parcels --AnMarCo's proposed addition March 31, 2008 N f0 Adriana Johnson,Planning Technician -Downtown N 14) OHighlands 0 500 1,000 2,000 Produced by City of Renton(c)2008,the C ty of rea Feet Renton all rights reserved. No warranties of any sort, 1:20,��0 including but not limited to accuracy,fitness or RHsi.gLhalaknedvvsaesxhpianngdtoendda eleted area merchantability,accompany this product. File Name:H:IEDNSP\GIS_projectsleconomic development\ • COR area shaded multi_family_tax_exemption\mxdslproposed_changes_residential_MF_tax_exemption.mxd ' 6/2 3/0 8 by DLH MAPLE VALLEY HIGHWAY COR -ZONED PROPERTIES IN PRIVATE OWNERSHIP „, , , , ,, , . 44* •r II • 4 y 9. .. 4. e , q - .4. k ,,, . ..4 , . mr ,r.„.... r� .., 0 , , a a <.... , M , /4„ -.. `* , ...E z,.. .w.a a F ..d " , . , . ,.\ .4---",,,or .0,-*-- - i ,40 , 4.= * . . „„ . ,_ . ...,*".**''',...,, ,,t, \ * * , tat; •.; A It. *-170, f�R 4410. . *It ' . .. , is* A *- ' :g.""...""""""."'".".' dr °'.. * • Of' , ) q t 104 , . �,"� � ft � , �» �pelip Tf. , Ore a4 - '* ,., 1,,, , , L i " ... k ., !0 ar "I4 .A: s ill.* "' # �Y ttlii .. .00 art .. .M-,�:+r' 24t .*y.t of^'1.'"s - ,�! 't *,PA•i let �' a''a . t . *116 ti�, � � RJ. AIIM! 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Name: / (I( CC ( I 0 QVj Name: Address: 10 I cr -5 f vO()#2oZ Address: City.-c.feJ Zip Code 9846 C City Zip Code Topic: ; j_4(2(_,fr.)a_c_41, Topic: 2 /� 6 r r Name. 0 e_. /v(,c, Name: Address: 335 //Cotft, ALA.._ Address: CitAcli LeU0-e_.. Zip Code 9e,C3 :34,l City Zip Code Topic: M -E Topic: 3, 7 Name: nQ NI/is Name: Address: 1733 < S Address: City Zip Code 9d-057 City Zip Code ic: pp t f 6.e Topic: 4 Name 1)o A,- Le 8 -- Name: Address: t k o;% 10 � 1 '- J — � Address: -- Cit Zip Code City Zip Code Topic: Topic: (CONTINUED ON REVERSE SIDE) rntinued from Reverse Side - Page RENTON CITY COUNCIL MEETING PUBLIC HEARING/MEETING SPEAKER SIGN-UP SHEET CITIZENS MUST PROVIDE NAME AND ADDRESS IN ORDER TO BE CONTACTED OR TO BE A PARTY OF RECORD WHEN APPROPRIATE PLEASE PRINT 5 Minute Time Limit 9 13 Name: Name: Address: Address: City Zip Code City Zip Code Topic: Topic: 10 14 Name: Name: Address: Address: City Zip Code City Zip Code Topic: Topic: 11 15 Name: Name: Address: Address: City Zip Code City Zip Code Topic: Topic: 12 16 Name: Name: Address: Address: City Zip Code City Zip Code Topic: Topic: SPEAKER CARD Hand to City Clerk prior to addressing Council In order to be contacted by City officials or staff, or to become a party of record to a certain issue, complete this card, providing your name, address, phone number, and/or email address. Name: Do r��-f'�y., L- c..t Phone# Address: ( 0 I ( ( E-mail o I cP '- s.N(.)►'\ City ) � State Zip Code % 0 0 VS-0 Topic: VIt • • To address the Renton City Council, please war tlo h fro , hand the sp eaker card to the City Clerk, stand at the podium microphones facing Council, and state your name and city of residence for the record, SPELLING YOUR LAST NAME. Each speaker is allowed five minutes. tiY O ADMINISTRATIVE, JUDICIAL, AND LEGAL SERVICES DEPARTMENT -NT0 MEMORANDUM DATE: June 27, 2008 TO: Mark Santos-Johnson, Senior Economic Development Specialist FROM: *Jason Seth, Records Management Coordinator SUBJECT: Legal Publication, The Seattle Times The attached billing for the public hearing on the proposed modifications to the multi- family property tax exemptions,published in the Seattle Times, is being forwarded to you for payment. If you have any questions, please call me at ext. 6521. Thank you. Attachment h:\city clerk\deputy city clerk files\deputy clerk\winword\doc\djcbill.doc vale aeaute emirs Ir Q E ' ; Qd alSa 06/15/08-06/21/08 RENTON CITY OF CLERK'S OFC REPRESENTING THE$CattkCf08f 3iltelll9EllCer 147*21 ali :IEEntAlairraf2POTPsi 2 1120 John Street,Seattle,WA 98109•P.O.Box 70,Seattle,WA 98111 729.00 .00 PAYMENT IN FULL IS DUE IMMEDIATELY ADVERTISING 21 Th „ti� . l4151ift n22 INVOICE AND STATEMENT 729.00 .00 .00 .01 olio]. 06/22/08 RENTON CITY OF CLERK'S OFC 6 Y 1055 S GRADY WAY The Seattle Times 039288303 RENTON WA 98055 PO BOX 84688 7 ,� �,; � _ SEATTLE WA 98124-5988 Advertising Balance, Payment & 729.00 BILLING INQUIRY: (206)464-3336 PLEASE NOTE ADDRESS CHANGES ABOVE TO PLACE an AD,Corrections&Cancellations: WA State: (206)624-SELL or 1 (800)542-0888 Outside ofWAState. 1 (800)62e-82e5 000000000+00392883030+000072900+2+1+ PLEASE DETACH AND RETURN UPPER PORTION WITH YOUR REMITTANCE 1� n §� 11 aE� € �x &� 3 �a3 • m• '1• • 20 A � d »• � , CURRENT PERIOD ACTIVITY - 06/11- J767872302 C8A CITY OF RENTONNOTICE OF 1 X 45L X 2 729.00 06/18 I444627001 386 AD# 03925419 1 AFFIDAVITS 729.00 TOTAL NET AMOUNT DUE 729.00 SUMMARY OF ACCOUNT ACTIVITY - CHARGES 729.00 CURRENT 729.00 ADJUSTMENTS .00 28 DAYS .00 PAYMENTS .00 49 DAYS .00 70 DAYS .00 105+DAYS .00 *411104 UNAPPLIED .00 TOTAL NET DUE 729.00 TOTAL DUE 729.00 THANK YOU FOR YOUR PROMPT PAYMENT. PLEASE RETAIN THE BOTTOM PORTION OF THIS STATEMENT FOR YOUR RECORDS. FACSIMILE COPIES CANNOT BE PRODUCED. A $25.00 FEE WILL BE CHARGED ON ALL CHECKS RETURNED FOR INSUFFICIENT FINDS. CUSTOMER PHONE # (425) 430-6510 STATEMENT OF ACCOUNT AGING OF PAST DUE AMOUNTS 21.:g .00 .00 729.00 THE SEATTLE TIMES PHONE(0)464 3336 TAX ID.k91-0403890 *UNAPPLIED AMOUNTS ARE INCLUDED IN TOTAL AMOUNT DUE 2 ' §0tAL'_...._ 2 t5 IT S tt l�> ems, Y � �' x D062100591 06/15/08-06/21/08 0392883 . RENTON CITY OF CLERK'S OFC •• !tt ' Sca1tteZIItuws REPRESENTING THE cattk4IOet ntell jcnce ' N...- PO Box 70, Seattle, WA 98111 • RENTON CITY OF CLERK'S OFC CITY OF RENTON 1055 S GRADY WAY .11.JN 2 5 2008 RENTON,WA 98055 RECEIVED CITY CLERK'S OFFICE Re: Advertiser Account#39288303 Ad#: 767872300 Affidavit of Publication 3925419/1 STATE OF WASHINGTON Counties of King and Snohomish The undersigned, on oath states that he/she is an authorized representative of The Seattle Times Company, publisher of The Seattle Times and representing the Seattle Post-Intelligencer, separate newspapers of general circulation published daily in King and Snohomish Counties, State of Washington. The Seattle Times and the Seattle Post-Intelligencer have been approved as legal newspapers by orders of the Superior Court of King and Snohomish Counties. The notice, in the exact form annexed, was published in the regular and entire issue of said paper or papers and distributed to its subscribers during all of the said period. The Seattle Times 06/11/08, 06/18/08 Agent Debbie Collantes Signature AIC-tG sir k= 4 � lv�NS�� ascribed and sworn to before me on tii-�- 3 , mud' • y' (DATA) .` Q o NOT A,R Y 9y:2 m G,Utvt,t,c_ 4\�NOT:A ' SIGNATURE) Notary Public itYMnd for the State of Washington, residing at Seattle PUB `be O .F Zvi i� "�"�� Z!Jt' Seaitte !ttm"s REPRESENTING THE CaI1le Po t 2lnIeuvencer Re Advertiser Account#39288303 Ad# 767872300 Ad TEXT:CITY OF RENTON NOTICE OF PUBLIC HEARING RENTON CITY COUNCIL NOTICE IS HEREBY GIVEN that the Renton City Council has fixed the 23rd day of June,2008,at 7:00 p.m.as the date and time for a public hearing to be held in the seventh floor Council Chambers of Renton City Hall, 1055 S.Grady Way, Renton,98057,to consider the following: Proposed modifications to the Multi-Family Housing Property Tax Exemption as follows: modify the residential targeted areas,implement provisions of House Bill 1910, incorporate affordable housing,and modify project eligibility and fees. The eligibility criteria and requirements for Multi-Family Housing Property Tax Exemption New projects are codified in Section 4-1-220 of the Renton Municipal Code. All interested parties are invited to attend the public hearing and present written or oral comments regarding the proposal.Written comments submitted to the City Clerk by 5:00 p.m.on the day of the hearing will be entered into the public hearing record. Renton City Hall is in compliance with the American Disabilities Act,and interpretive services for the hearing impaired will be provided upon prior notice. Call(425)430-6510 for additional information. NOW NNW . 0 h � 0il, , 30 o ll th '^ H o 0 U Q 0 m 0 It 5 /r+ m �' pzIo WI m C 0� ill m is C' m > 110 I tu, ao `° w ;t m w .1:41 jo-• .....4 C n � `,`�� - IU o Irl L., oQ - Cry) PRESORTED 0 Z HPI 0 FIRST CLASS - 0 ])<-1 - fir WIC µ .:, • in rzi 4 r,,�, Ut I I D Z :' C! .� ):••3 • omo rf __ .� 0 ED° .=.1 c--- f3 D o N UNIT o S' • ��� C)� Z -< m N- et'- 9 A • 0 O0 0m �' m pla 0 0 0 Wrn ry z 0 01 N 00 o z nL- 1 - oD I tli m mz CD 2 @@ 0 0 fDN. 1 111 N at CO n.�J1, W O A OD June 11, 2008 CERTIFICATE OF MAILING STATE OF WASHINGTON ) ) § COUNTY OF KING ) MICHELE NEUMANN, Deputy City Clerk for the City of Renton, being first duly sworn on oath, deposes and says that she is a citizen of the United States and a resident of the State of Washington, over the age of 21 and not a party to nor interested in this matter. That on the 11th day of June, 2008, at the hour of 5:00 p.m your affiant duly mailed and placed in the United States Post Office at Renton, King County, Washington,by first class mail to all parties of record, Notice of Public Hearing regarding proposed modification to the Multi-Family Housing Property Tax Exemption. (7\ Michele Neumann, Deputy City Clerk SUBSCRIBED AND SWORN TO BEFORE me this 11th day of June, 2008. \,_,, j1/4., Cynth R. Moya Notary P ublic in and for the State of Washington, residing in Renton My Commission expires: 8/27/2010 • CITY OF RENTON NOTICE OF PUBLIC HEARING RENTON CITY COUNCIL NOTICE IS HEREBY GIVEN that the Renton City Council has fixed the 23rd day of June, 2008, at 7:00 p.m. as the date and time for a public hearing to be held in the seventh floor Council Chambers of Renton City Hall, 1055 S. Grady Way, Renton, 98057, to consider the following: Proposed modifications to the Multi-Family Housing Property Tax Exemption as follows: modify the residential targeted areas, implement provisions of House Bill 1910, incorporate affordable housing, and modify project eligibility and fees. The eligibility criteria and requirements for Multi-Family Housing Property Tax Exemption projects are codified in Section 4-1-220 of the Renton Municipal Code. All interested parties are invited to attend the public hearing and present written or oral comments regarding the proposal. Written comments submitted to the City Clerk by 5:00 p.m. on the day of the hearing will be entered into the public hearing record. Renton City Hall is in compliance with the American Disabilities Act, and interpretive services for the hearing impaired will be provided upon prior notice. Call (425) 430-6510 for additional information. /Wide Ttarril-a4vrt Michele Neumann Deputy City Clerk Published: Renton Reporter June 14 and 18, 2008 Account No. 50640 Published: Seattle Times June 11 and 16, 2008 Account No. 39288303 6/11/2008 - Notice sent to 49 parties of Record per attached labels. C. Moya cc: Mark Santos-4ohnson Steven Friedman Douglas Spear June Wright Friedman Development Merrill Gardens,LLC Merrill Gardens, LLC P.O.Box 1018 1938 Fairview Avenue E Suite 300 1938 Fairview Avenue E Suite 300 Mercer Island WA 98040-1018 Seattle WA 98102 Seattle WA 98102 Judith Nielsen David Nielsen Richard Senseney Colpitts Development Company LLC Colpitts Development Company LLC Colpitts Development Company LLC 2256 38th Place East 2256 38th Place East 2256 38th Place East Seattle WA 98112 Seattle WA 98112 Seattle WA 98112 Michael Christ Lisa Collins Miriam Uhlig SECO Development, Inc. SECO Development, Inc. First Pacific Marketing,Ltd. 1083 Lake Washington Blvd N Suite 50 1083 Lake Washington Blvd N Suite 50 807 S Third Street Renton WA 98056 Renton WA 98056 Renton WA 98057 John Sugden First Pacific Marketing, Ltd. Melissa J.Lu Thach Nguyen 807 S Third Street 801 S Third Street 801 S Third Street Renton WA 98057 Renton WA 98057 Renton WA 98057 Mark Faulkner Dan Milich David Nielsen Fairfield Residential LLC Fairfield Residential LLC Colpitts Development Company LLC 19401 40th Avenue W Suite 280 5510 Morehouse Drive Suite 200 2256 38th Place East Lynnwood WA 98036 San Diego CA 92121 Seattle WA 98112 Richard Senseney lolanthe Chan McCarthy Camie Ng Colpitts Development Company LLC N&C Investments, LLC N&C Investments,LLC 2256 38th Place East 7432 SE 27th Street 7432 SE 27th Street Seattle WA 98112 Mercer Island WA 98040 Mercer Island WA 98040 Evan Chan Kevin Carl Dan Branham N&C Investments, LLC Urban Innovations Group John L. Scott Real Estate 7432 SE 27th Street 911 Western Avenue Suite 524 4735 NE 4th Street Mercer Island WA 98040 Seattle WA 98104 Renton WA 98059 Chris Cirillo Olie Wiley Chris Bennett Capital Homes LLC 835 S 143rd Place 16603-107th Place NE do 16603-107th Place NE Burien WA 98168 Woodinville WA 98072 Woodinville WA 98072 Trish Johanson Chris Bennett McCarthy GMAC Real Estate David Martin Keystone Properties , (' N/A 6161 NE 175th Street Suite 200 N/A ' ' \ Kenmore WA 98028 Dave Main Barbara Main Kyla Hagedorn Main Street Builders Main Street Builders Wiindermere Real Estate 40305 302nd Avenue SE 40305 302nd Avenue SE 14405 SE 36th Street Suite 100 Enumclaw WA 98022 Enumclaw WA 98022 Bellevue WA 98006 Matthew Huddleston Josh Klakring James Tjoa RE/MAX James Tjoa&Associates James Tjoa&Associates 13500 Lake City Way NE Suite#100 2312 Eastlake Ave E 2312 Eastlake Ave E Seattle WA 98125 Seattle WA 98102 Seattle WA 98102 Bryan Wrigley Tyson Feaster Murray Kahn Wasatch Acquisitions&Capital Inc. Wasatch Acquisitions&Capital Inc. South 2nd Street LLC t 399 N Main #200 833 108th Avenue NE #200 Q.k t,r ,.3L, L Logan UT 84321 Bellevue WA 98004 Christine Sandvik Tom Fields Steve Thomas Wasatch Development Associates Fields Realty TSA Architects PLLC 10621 NE 8th Street #201 P.O.Box 641 10800 NE 8th Street, Suite 300 Bellevue WA 98004 Renton WA 98057 Bellevue WA 98004 Kent Smutny Shaunta Hyde Jeff Adelson TSA Architects PLLC The Boeing Company Boeing Realty Corporation 10800 NE 8th Street, Suite 300 P.O.Box 3707 MS 14-49 P.O.Box 3707 MC 7H-AH Bellevue WA 98004 Seattle WA 98124-2207 Seattle WA 98124 Ed Hogan Connie Wilde Bill Taylor CB Richard Ellis CB Richard Ellis Greater Renton Chamber of Commerce 16400 South Center Parkway #100 1420 Fifth Avenue #1700 300 Rainier Avenue N Tukwila WA 98188 Seattle WA 98101-2384 Renton WA 98055 Garrett Huffman Jane Lanford Tom Tasa Master Builders Association Grubb&Ellis Company Renton Housing Authority 335 116th Avenue SE 10900 NE 4th Street Suite 908 2900 NE 10th Street Bellevue WA 98004 Bellevue WA 98004 Renton WA 98056-0316 Mark Gropper Len Brannen Joel Ing Renton Housing Authority Shelter Resources,Inc. Shelter Resources,Inc. 2900 NE 10th Street 1200 112th Avenue NE #C163 1200 112th Avenue NE #C163 Renton WA 98056-0316 Bellevue WA 98004 Bellevue WA 98004 Dorothy Lengyel DASH 11018 NE 11th Street Bellevue WA 98004 Page 1 of 2 Michele Neumann - Fwd: Multi-Family Exemption Public Hearing :_ r .,. -#• . .. _,_5: k.: n...: K , ,. .,.» N .s ue From: Mark Santos-Johnson To: Neumann, Michele Date: 6/10/2008 4:53 PM Subject: Fwd: Multi-Family Exemption Public Hearing CC: Dale Estey, Suzanne; Walton, Bonnie Attachments: MFHPTE interested parties list 6-10-2008.xls; MFHPTE Proposed Modifications - Public Notice Summary 6-10-08.pdf Hi Michele, Thanks for submitting the public hearing notices earlier today for publication. Attached please find an "interested parties" mailing list for your use. Please note that the file includes two lists, (1) a mailing list with addresses and(2)the e-mail distribution list. The mailing list includes all of the parties on the e-mail distribution list, except for the three highlighted parties for which we do not have a mailing address. In addition, attached please find a PDF copy of the Multi-Family Housing Property Tax Exemption - Proposed Modifications Public Notice Handout (i.e., a one-page summary of the changes plus the related map) which you can send or provide to any interested parties. We will be sending an electronic copy of this material to all of the parties on the e-mail distribution list tomorrow. If anyone has additional questions or wants further information, please refer them to me. Michele, please let me know if you have any questions. Thanks for your help. Mark ext 6584 >>> Mark Santos-Johnson 06/09/2008 4:27 PM >>> Hi Michele, Thanks for sharing your draft public hearing notice attached with me. Please include the area code (425) in the phone number on the last line and modify the publication reference at the bottom of the page to conform with the information described below. Otherwise, the notice looks good. Per our discussion a few moments ago, thank you for publishing the public hearing notice (after Council's adoption tonight of the related resolution) in the Renton Reporter on 6/14 and 6/18 and in the Seattle Times on 6/11 (or 6/12) and 6/16. This is the public hearing notifications that Bonnie and I discussed last week to comply with the requirements of RCW 84.14.040 attached (emphasis added). Per our conversation, I will provide you tomorrow with: (1) a summary of the proposed changes to provide to people who call the City Clerk's office for more information in response to the public hearing notice; and (2) our "interested parties" address list as we discussed. I will also provide you later with a list of the e-mail distribution list that we plan to use tomorrow or Wednesday to notify "interested parties" regarding the changes to the modifications since we initially distributed related material to the group last month. Finally, I will provide you with a public hearing handout by 6/18. Michele, thanks much for your help. If you have any questions,please let me know. file://C:ADocuments and Settings\MNeumann\Local Settings\Temp\XPgrpwise\484EB18C... 6/10/2008 CITY OF RENTON NOTICE OF PUBLIC HEARING RENTON CITY COUNCIL NOTICE IS HEREBY GIVEN that the Renton City Council has fixed the 23rd day of June, 2008, at 7:00 p.m. as the date and time for a public hearing to be held in the seventh floor Council Chambers of Renton City Hall, 1055 S. Grady Way, Renton, 98057, to consider the following: Proposed modifications to the Multi-Family Housing Property Tax Exemption as follows: modify the residential targeted areas, implement provisions of House Bill 1910, incorporate affordable housing, and modify project eligibility and fees. The eligibility criteria and requirements for Multi-Family Housing Property Tax Exemption projects are codified in Section 4-1-220 of the Renton Municipal Code. All interested parties are invited to attend the public hearing and present written or oral comments regarding the proposal. Written comments submitted to the City Clerk by 5:00 p.m. on the day of the hearing will be entered into the public hearing record. Renton City Hall is in compliance with the American Disabilities Act, and interpretive services for the hearing impaired will be provided upon prior notice. Call (425) 430-6510 for additional information. n14f/f'n'd/It/Yl Michele Neumann Deputy City Clerk Published: Renton Reporter June 14 and 18, 2008 Account No. 50640 Published: Seattle Times June 11 and 16, 2008 Account No. 39288303 Page 1 of 2 Michele Neumann - Fwd: Multi-Family Exemption Public Hearing From: Mark Santos-Johnson To: Neumann, Michele Date: 6/10/2008 4:53 PM Subject: Fwd: Multi-Family Exemption Public Hearing CC: Dale Estey, Suzanne; Walton, Bonnie Attachments: MFHPTE interested parties list 6-10-2008.xls; MFHPTE Proposed Modifications - Public Notice Summary 6-10-08.pdf Hi Michele, Thanks for submitting the public hearing notices earlier today for publication. Attached please find an "interested parties" mailing list for your use. Please note that the file includes two lists, (1) a mailing list with addresses and (2) the e-mail distribution list. The mailing list includes all of the parties on the e-mail distribution list, except for the three highlighted parties for which we do not have a mailing address. In addition, attached please find a PDF copy of the Multi-Family Housing Property Tax Exemption - Proposed Modifications Public Notice Handout(i.e., a one-page summary of the changes plus the related map) which you can send or provide to any interested parties. We will be sending an electronic copy of this material to all of the parties on the e-mail distribution list tomorrow. If anyone has additional questions or wants further information, please refer them to me. Michele, please let me know if you have any questions. Thanks for your help. Mark ext 6584 >>> Mark Santos-Johnson 06/09/2008 4:27 PM >>> Hi Michele, Thanks for sharing your draft public hearing notice attached with me. Please include the area code (425) in the phone number on the last line and modify the publication reference at the bottom of the page to conform with the information described below. Otherwise, the notice looks good. Per our discussion a few moments ago, thank you for publishing the public hearing notice (after Council's adoption tonight of the related resolution) in the Renton Reporter on 6/14 and 6/18 and in the Seattle Times on 6/11 (or 6/12) and 6/16. This is the public hearing notifications that Bonnie and I discussed last week to comply with the requirements of RCW 84.14.040 attached (emphasis added). Per our conversation, I will provide you tomorrow with: (1) a summary of the proposed changes to provide to people who call the City Clerk's office for more information in response to the public hearing notice; and (2) our "interested parties" address list as we discussed. I will also provide you later with a list of the e-mail distribution list that we plan to use tomorrow or Wednesday to notify "interested parties" regarding the changes to the modifications since we initially distributed related material to the group last month. Finally, I will provide you with a public hearing handout by 6/18. Michele, thanks much for your help. If you have any questions, please let me know. file://C:\Documents and Settings\MNeumann\Local Settings\Temp\XPgrpwise\484EB 18C... 6/10/2008 Email sfried613(a�comcast.net dougs(a�merril Igardens.com junew(a�merril Igardens.com coldevco(a�msn.com coldevcomsn.com richsenseneycomcast.net mchrist(cr�secodev.com Icollins@secodev.com fpacific(a�gwest.net fpacificgwest.net jlu@pshm.com thachnmailyahoo.com mfaulkner(a7ffres.com dmilich(@,fairfieldresidential.com coldevco@msn.com richsenseney@comcast.net iolanthe(a)urbanpacificre.com thachnmail(a7yahoo.com evanchanmanaqement.com kmcarl(a�urbaninnovationsgroup.com danbran(a�lohnIscott.com dansellsfast ,,comcast.net olewilley(a7comcast.net CC9790(c�att.com chrisgbennett(a�hotmail.com chrisb@microsoft.com trish(c�mccarthygmac.com davekeystoneprops.com davemain a(�main-street-builders.com barbmain(cr�main-street-builders.com kyla a(�windermere.com matt@ditoproperties.com joshna jamestjoa.com jamesamestjoa.com murray(c�gordiandevelopment.com bwrigley(a7netwasatch.com tfeaster@netwasatch.com csandvik(a�netwasatch.com izavagliahotmail.com tom(a�fieldsrealty.com stevethomas a(3tsaarchitects.com kents(a�tsaarchitects.com shaunta.r.hyde(a�boeinq.com jeffrey.r.adelson(a�boeinq.com ehogan(a�cbre.com cwilde(a�cbre.com btaylor(a,gorenton.com ghuffman(c�mbaks.com Jane.Lanford@Grubb-Ellis.com tlt@rentonhousing.org mrg@rentonhousing.org lenb@shelterresourcesinc.com Joeli@shelterresourcesinc.com dorothyl(a�dashhousinq.com metedwa@comcast.net PROPOSED MODIFICATIONS AND AMENDMENTS TO THE MULTI-FAMILY HOUSING PROPERTY TAX EXEMPTION PROGRAM (6-10-2008) Staff proposes the following changes to the Multi-Family Housing Property Tax Exemption (Exemption) as reflected in Renton Municipal Code 4-1-220: A. Modify the designated "residential targeted areas" for eligible projects as follows: 1. Remove "South Lake Washington" as a residential targeted area 2. Modify the "Highlands" residential targeted area to change the "R-10" zone to the "R-14" zone and revise the residential targeted areas map to reflect the expanded Center Village (CV) Comprehensive Plan designation area for the Highlands (See map on reverse side) B. Make modifications to implement the Engrossed Second Substitute House Bill 1910 adopted by the Washington State Legislature in 2007 and incorporate affordable housing as follows: 1. Change the 10-year exemption for projects submitted on or after July 22, 2007, to an 8-year exemption, or a 12-year exemption if the project provides at least 20% of the housing units as affordable rental or for-sale housing as follows: a) For rental projects, at least 20% of the units in the project must be affordable to low income households at 80% or less of median income. b) For ownership projects, at least 20% of the units in the project must be affordable to moderate income households at 120% or less of median income 2. Add definitions for "Affordable Housing," Household," "Low income Household," "Median Income," and "Moderate income household" 3. Designate the residential targeted areas as "targeted for low-income housing serving households at or below 80% of median income" 4. Modify the application, final certificate, and annual certification material in order to administer the affordable housing element of the Exemption and comply with the additional reporting requirements included in House Bill 1910 C. Modify project eligibility and fees as follows: 1. Increase the minimum number of housing units for eligible projects in the Residential Multi-Family Urban Center (RM-U) zone from 10 to 30 units 2. Omit the Special Design Regulations now integrated into the Development Regulations for all eligible zones 3. Increase the project application, final certificate, and contract amendment fees 4. Add a definition of"mixed-use"for Exemption projects to further refine eligibility For more information, contact Mark Santos-Johnson in the Department of Community and Economic Development at 425-430-6584 or msantosiohnsonna ci.renton.wa.us . . . NNW Immie 1 \ 4.1 . . I NE 22nd St e \ it.; NE 20th S: .- 1 Ys•• •-,. a---, -N? -- -, c-,.; --,,s. O NE 19th -.3 ••••.rir ;Wt)3." — '-'" 0 [1';'1 - 111::' ,"1.13_ '''''2 4: ?"2 ,gf-1 61 ,t't''',..'-'1'.' : •7.,,,,, / 0... ,' -7, _,,,, Or 77,1. :-.•f• N 1. , . - NE"12tti St t '6 , "•,-; / ......o.•••••..... ''.;; ').V ‘ ,,,,,,D , ,, 4). zt,,,,,„ , c ' ,.9'. U1' NE 10th PI ( , „„., _.,,,•:". 1 !i NE 1 tith St - _ 1v5 loth , ... 7 -9 2 NEN - Nt07 St Lt, ..-,-..: , 4/6 ij ..-, ,-----' , , ..., ',‹ tt , 8th CI "c] NE Eri PI ci ' :ff-..., u-' NE 5th St , . .., i 2,, ..; -,•7 <c, N :',-, ti3d .-,- . r ._--._ . ..... ..-;" .:... `-' '' N 17.1 2-,- ....—.„ 1...“,,J.3/ •"" ' ,,,,, T"-Irruzaf j '' 1.14 tt • '7'1111 i 1 C, Lj .,. ) 1 ..:.. ,„- f ill -0 ,,.., ,...., SE ry, ;2?' 811;DC. __ — Proposed Changes to the Residential Targeted Areas for Multi-Family Housing Property Tax Exemption 1 ,___„"--\, -: , ,,,,- -,r. De\,;•?; prrerit. -----xC „' R,: • , P.. -,. Marc, 31 2003 .. rj H T 1-11, I) './OU 1 1)00 2 000 r 1 1 20 000 ' I . CITY OF RENTON NOTICE OF PUBLIC HEARING RENTON CITY COUNCIL NOTICE IS HEREBY GIVEN that the Renton City Council has fixed the 23rd day of June, 2008, at 7:00 p.m. as the date and time for a public hearing to be held in the seventh floor Council Chambers of Renton City Hall, 1055 S. Grady Way, Renton, 98057, to consider the following: Proposed modifications to the Multi-Family Housing Property Tax Exemption as follows: modify the residential targeted areas, implement provisions of House Bill 1910, incorporate affordable housing, and modify project eligibility and fees. The eligibility criteria and requirements for Multi-Family Housing Property Tax Exemption projects are codified in Section 4-1-220 of the Renton Municipal Code. All interested parties are invited to attend the public hearing and present written or oral comments regarding the proposal. Written comments submitted to the City Clerk by 5:00 p.m. on the day of the hearing will be entered into the public hearing record. Renton City Hall is in compliance with the American Disabilities Act, and interpretive services for the hearing impaired will be provided upon prior notice. Call (425) 430-6510 for additional information. Michele Neumann Deputy City Clerk Published: Renton Reporter June 14 and 18, 2008 Account No. 50640 Page 1 of 2 Michele Neumann - RE: Legal Ad for 6/11/08 Publication From: Michele Neumann To: Legals Date: 6/10/2008 8:55 AM Subject: RE: Legal Ad for 6/11/08 Publication You have my approval to publish. Thanks, Michele >>> "Legals" <legals@seattletimes.com> 6/10/2008 8:48 AM >>> I'm sorry Michele. I scheduled your notice for Wednesday 6/11 & 6/18. The cost for both days is $729.00. Please send your approval to publish. Thaill. on. J utli� lial(l«in I:nal� \ccouut accuti�c �r�3t t.le Time, The I'o:i Intcll0ci1ccr 6-652-6O 18 I`ay: 206-515-5.)95 -rat tie!iiric .corn From: Michele Neumann [mailto:Mneumann@ci.renton.wa.us] Sent: Tuesday, June 10, 2008 8:45 AM To: Legals Subject: RE: Legal Ad for 6/11/08 Publication Will it run on both June 11 and June 18 as requested and is that the cost for both? -Michele >>> "Legals" <legals@seattletimes.com> 6/10/2008 8:42 AM >>> Hi Michele, Your legal notice is scheduled to run on Wednesday 6/11 in the Seattle Times on Ad# 3925419 costing $364.50. I'hanl, rou. Iyatl Iial(k‘iii I.� alp \n, ouul I'.ynculiNe cal l le Time rcpre-cut 'Tile Post I nt.nlligencnr 206-652-60 I8 I'a : `206-515-5595 file://C:ADocuments and Settings\MNeumann\Local Settings\Temp\XPgrpwise\484E4165... 6/10/2008 Page 2 of 2 li,! ,il,((/ -rat I Ictiiiic,.coui From: Michele Neumann [mailto:Mneumann@ci.renton.wa.us] Sent: Tuesday, June 10, 2008 8:39 AM To: Legals Subject: Legal Ad for 6/11/08 Publication Hello: Attached is a legal advertisement to be published on June 11 and 16, 2008. Our account number is 39288303. Please send us an affidavit of publication. Thank you, Michele Neumann City Clerk Office City of Renton 1055 S Grady Way Renton, WA 98057 425-430-6504 file://C:\Documents and Settings\MNeumann\Local Settings\Temp\XPgrpwise\484E4165... 6/10/2008 CITY OF RENTON NOTICE OF PUBLIC HEARING RENTON CITY COUNCIL NOTICE IS HEREBY GIVEN that the Renton City Council has fixed the 23rd day of June, 2008, at 7:00 p.m. as the date and time for a public hearing to be held in the seventh floor Council Chambers of Renton City Hall, 1055 S. Grady Way, Renton, 98057, to consider the following: Proposed modifications to the Multi-Family Housing Property Tax Exemption as follows: modify the residential targeted areas, implement provisions of House Bill 1910, incorporate affordable housing, and modify project eligibility and fees. The eligibility criteria and requirements for Multi-Family Housing Property Tax Exemption projects are codified in Section 4-1-220 of the Renton Municipal Code. All interested parties are invited to attend the public hearing and present written or oral comments regarding the proposal. Written comments submitted to the City Clerk by 5:00 p.m. on the day of the hearing will be entered into the public hearing record. Renton City Hall is in compliance with the American Disabilities Act, and interpretive services for the hearing impaired will be provided upon prior notice. Call (425) 430-6510 for additional information. Michele Neumann Deputy City Clerk Published: Seattle Times June 11 and 16, 2008 Account No. 39288303 Nov CITY OF RENTON, WASHINGTON RESOLUTION NO. 3950 A RESOLUTION OF THE CITY OF RENTON, WASHINGTON, SETTING A PUBLIC HEARING DATE FOR PROPOSED MODIFICATIONS TO THE MULTI-FAMILY HOUSING PROPERTY TAX EXEMPTION. WHEREAS, the City is required by RCW 84.14.040 to hold a public hearing when designating a residential targeted area associated with the multi-family housing property tax exemption; and WHEREAS, the City seeks to afford interested parties the opportunity to be heard regarding other proposed modifications to the multi-family housing property tax exemption; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES RESOLVE AS FOLLOWS: SECTION I. The above findings are true and correct in all respects. SECTION II. That June 23, 2008, at the hour of 7:00 p.m. at the City Council chambers at City Hall, Renton, King County, Washington is hereby fixed as the date, time, and place for a public hearing to consider the proposed modifications to the multi-family housing property tax exemption. SECTION III. The City Clerk is hereby authorized and directed to give notice of the time and date of this hearing. PASSED BY THE CITY COUNCIL this 9th day of June , 2008. %/JL&Lf Michele Neumann, Deputy City Clerk 1 ' " RESOLUTION NO. 3950 APPROVED BY THE MAYOR this 9th day of June , 2008. k4/1,04 Denis Law, Mayor Approved as to form: CL:6411#111064.4:17106.4.m"......„ Lawrence J. Warren, City Attorney RES.1347:6/2/08:scr 2 June 9,2008 Renton City Council Minutes Page 193 Utilities Committee Utilities Committee Chair Zwicker presented a report recommending Utility: Sewer Service concurrence with the staff recommendation to amend City Code, Section 4-6- • Connection Outside City 040C, to limit connections outside Renton's city limits and exclude connection Limits, City Code Amend for properties desiring to develop through further subdivision of their land. The Committee further recommended that the ordinance regarding this matter be presented for first reading. MOVED BY ZWICKER, SECONDED BY TAYLOR, COUNCIL CONCUR IN THE COMMITTEE REPORT.* Responding to an inquiry from Councilmember Parker, Councilmember Briere stated that only single-family residences,not developments, located outside the City limits can hook up to City's sewer system. *MOTION CARRIED. (See later this page for ordinance.) SAD: White Fence Ranch Utilities Committee Chair Zwicker presented a report recommending Sanitary Sewer concurrence in the staff recommendation to approve the preliminary White Fence Ranch Sanitary Sewer Extension Special Assessment District. The Committee further recommended staff to proceed with the establishment of the final Special Assessment District upon completion of the construction of the White Fence Ranch Sanitary Sewer Extension project. MOVED BY ZWICKER, SECONDED BY TAYLOR, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. RESOLUTIONS AND The following resolution was presented for reading and adoption: ORDINANCES Resolution#3950 A resolution was read setting a public hearing date on 6/23/2008 to consider the CED: Multi-Family Housing proposed modifications to the multi-family housing property tax exemption. Property Tax Exemption MOVED BY PARKER, SECONDED BY BRIERE, COUNCIL ADOPT THE Modifications n'\ RESOLUTION AS READ. CARRIED. J(�( The following ordinances were presented for first reading and referred to the Council meeting of 6/16/2008 for second and final reading: Budget: 2008 Amendment, An ordinance was read amending the 2008 Budget by transferring funds from Firemen's Pension Fund the 2007 Year-End Fund Balance to the Firemen's Pension Fund in the amount of$75,000, for the purpose of meeting pension obligations. MOVED BY PERSSON, SECONDED BY CORMAN, COUNCIL REFER THE ORDINANCE FOR SECOND AND FINAL READING ON 6/16/2008. CARRIED. Budget: 2008 Amendment, An ordinance was read amending the 2008 Budget by allocating contract Maintenance Custodian payments from Fire District#40 in the amount of$66,541 to Fund 001 Position Community Services Fund; authorizing the addition of a Maintenance Custodian Position; adding the position to the 2008 Budget index of positions; and authorizing appropriation authority to support contracted landscaping costs and hire maintenance staff. MOVED BY CORMAN, SECONDED BY PALMER, COUNCIL REFER THE ORDINANCE FOR SECOND AND FINAL READING ON 6/16/2008. CARRIED. Utility: Sewer Service An ordinance was read amending Chapter 6, Street and Utility Standards, of Connection Outside City Title IV (Development Regulations) of City Code by revising policies by which Limits, City Code Amend the City allows connection to its sanitary sewer system by property owners outside of the current City limits. MOVED BY ZWICKER, SECONDED BY TAYLOR,COUNCIL REFER THE ORDINANCE FOR SECOND AND FINAL READING ON 6/16/2008. CARRIED. June 9,2008 swrie Renton City Council Minutes „,,,,, Page 191 drill, located at 4518 Talbot Rd. S., was donated by the John C. Radovich Development Company. Annexation: New Life- Aqua Mayor Law welcomed approximately 2,200 new residents who joined the City Barn, Maple Valley Hwy as a result of the New Life -Aqua Barn annexation. He noted that the City's population is now just under 80,000. Streets: Duvall Ave NE Noting that Duvall Ave. NE was closed on June 5 for construction, Mayor Law Closure, Road Improvements acknowledged the impact the temporary full closure will have on residents and Project motorists. He thanked staff for their work with residents to mitigate the impacts. Reporting on the closure, Deputy Public Works Administrator- Transportation Hahn noted that the City, responding to concerned citizens, has and will place additional directional and informational signs. He stressed that staff will continuously monitor the situation and follow-up on citizen concerns. Mr. Hahn also reported the contractor's proposal to work occasional Saturdays to reduce the amount of time the road will be closed. He indicated that the contractor will refrain from activities prior to 8 a.m. on Saturdays that create additional noise. Mayor Law assured that citizen complaints will be addressed. Council discussion ensued regarding the contractor working on Saturdays, the local access signage, and the importance of updating the City's website. AUDIENCE COMMENT Howard McOmber(Renton) announced a Highlands Community Association Citizen Comment: McOmber- emergency preparedness event on June 12 at the Highlands Neighborhood Emergency Preparedness Center, and asked for volunteers to help assemble the kits that are being handed Event out to senior citizens and disabled residents. Citizen Comment: Gitchel - Chuck Gitchel (Renton) questioned who is responsible for removing excessive Pavement Paint Markings spray painted pavement markings left by T-Mobile utility locaters at Anacortes Removal, SE 3rd PI Ave. SE and SE 3rd Pl. Public Works Administrator Zimmerman said the matter will be investigated. CONSENT AGENDA Items on the consent agenda are adopted by one motion which follows the listing. Council Meeting Minutes of Approval of Council meeting minutes of 6/02/2008. Council concur. 6/02/2008 CAG: 08-059, Thomas City Clerk reported bid opening on 5/22/2008 for CAG-08-059,Thomas Teasdale Park Playfield& Teasdale Park Playfield and Irrigation Improvements; two bids; engineer's Irrigation Improvements, estimate $249,988; and submitted staff recommendation to award the contract to Spiritridge Construction the low bidder, Spiritridge Construction, Inc., in the amount of$264,664.30. Refer to Finance Committee for discussion of funding. CED: 2007 Countywide Community and Economic Development Depat'Anent recommended adoption of Planning Policies Amendments a resolution ratifying the 2007 Buildable Lands amendment to the Growth Management Planning Council's Countywide Planning Policies. Refer to Planning and Development Committee. Comprehensive Plan: 2008 Community and Economic Development Department submitted proposed 2008 Amendments Comprehensive Plan amendments (three map amendments and two text amendments). Refer to Planning and Development Committee and Planning Commission. CED: Multi-Family Housing Community and Economic Development Department recommended approval to Property Tax Exemption modify'the designated residential targeted areas for the multi-family housing Modifications property tax exemption; implement the provisions of House Bill 1910; June 9,2008 lore Renton City Council Minutes -.rr Page 192 incorporate affordable housing; and modify project eligibility and fees. Refer to Planning and Development Committee; set public hearing on 6/23/2008. (See page 193 for resolution setting public hearing.) Transportation: Duvall Ave Transportation Systems Division recommended approval of a construction NE Reconstruction Utility agreement in the amount of$170,240 with Puget Sound Energy for Conversion, Puget Sound underground utility conversion as part of the Duvall Ave. NE Widening/Coal Energy Creek Parkway SE Reconstruction project. City's net cost is $114,920. Refer to Transportation(Aviation) Committee. MOVED BY PALMER, SECONDED BY CORMAN, COUNCIL APPROVE THE CONSENT AGENDA AS PRESENTED. CARRIED. UNFINISHED BUSINESS Finance Committee Chair Persson presented a report recommending approval of Finance Committee Claim Vouchers 272313 - 273225 and four wire transfers totaling Finance: Vouchers $8,716,772.98; and approval of 309 Payroll Vouchers, two wire transfers, and 1558 direct deposits totaling $5,441,755.70. MOVED BY PERSSON, SECONDED BY BRIERE, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. CAG: 08-072, Community Finance Committee Chair Persson presented a report recommending approval to Center Readerboard, award the contract for the replacement of the electronic readerboard in Cedar Daktronics River Park to the sole bidder Daktronics, Inc. The contract amount is $115,546.54 and funds are available in Fund 316. The Committee further recommended that the Mayor and City Clerk be authorized to sign the contract.* Councilmember Persson reported that this state-of-the-art replacement readerboard has a ten-year warranty and will use less energy. *MOVED BY PERSSON, SECONDED BY BRIERE, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. Budget: 2008 Amendment, Finance Committee Chair Persson presented a report recommending Maintenance Custodian concurrence in the staff recommendation to amend the 2008 Budget by$66,541. Position The Finance Committee additionally recommended concurrence with the staff recommendation to approve a full-time Maintenance Custodian position related to the additional maintenance requirements of Fire District#40, and $15,000 designated for associated landscaping expenses. Funds from the revenue account of 000.000000.000.3380.0022.00.000001 to be dispersed to the following accounts: $ 1,000 001.000000.020.5760.0010.48.000000 $14,000 001.000000.020.5760.0010.48.000003 $51,541 001.000000.020.5180.0010.10.000000 The Committee further requested that the ordinance regarding this matter be presented for first reading. MOVED BY PERSSON, SECONDED BY CORMAN, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. (See page 193 for ordinance.) Budget: 2008 Amendment, Finance Committee Chair Persson presented a report recommending Firemen's Pension Fund concurrence with the staff recommendation to amend the 2008 Budget by $75,000 to meet the Firemen's Pension Fund obligation for 2008. The Committee further recommended that the ordinance regarding this matter be presented for first reading. MOVED BY PERSSON, SECONDED BY BRIERE, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. (See page 193 for ordinance.) C, OF RENTON COUNCIL AGENDA.,.,LL AI#: , ee a Submitting Data: For Agenda of: 6/9/2008 Dept/Div/Board.. CED Staff Contact Mark Santos-Johnson Agenda Status Ext. 6584 Consent X Subject: Public Hearing.. X Multi-Family Housing Property Tax Exemption Correspondence.. Program—Designated Residential Targeted Areas Ordinance X Modifications and Text Amendments Resolution X Old Business Exhibits: New Business Issue Paper Study Sessions Ordinance Information Resolution Recommended Action: Approvals: 1) Refer to the Planning and Development Committee. Legal Dept 2) Adopt a resolution to set a public hearing on June 23, Finance Dept 2008, for the proposed modifications to the Multi- Other Family Housing Property Tax Exemption. Fiscal Impact: Expenditure Required... N/A Transfer/Amendment N/A Amount Budgeted N/A Revenue Generated N/A Total Project Budget N/A City Share Total Project.. N/A SUMMARY OF ACTION: The City has used the Multi-Family Housing Property Tax Exemption since 2003 to encourage increased residential opportunities within designated urban centers that lack sufficient, desirable, and convenient residential housing. To date, the City has approved seven multi-family housing projects with a total of 1,602 housing units in all three designated residential targeted areas, including three projects Downtown (310 housing units), three projects in South Lake Washington (1,075 housing units), and one project in the Highlands (217 housing units). Based on the City's administration of the Exemption, staff recommends removing South Lake Washington as a residential targeted area and modifying the Highlands residential targeted area to conform to zoning and Comprehensive Plan changes adopted by the City Council last year. Staff also recommends amending the Exemption to implement the provisions of House Bill 1910, incorporate affordable housing, and modify project eligibility and fees. STAFF RECOMMENDATION: (1)Adopt a resolution to set a public hearing on June 23, 2008, for the proposed modifications to the Multi-Family Housing Property Tax Exemption; (2)Approve the modifications to the designated residential targeted areas for eligible projects for the Exemption; and (3) Adopt an ordinance to amend the Exemption(RMC 4-1-220)by: (a)modifying the designated residential targeted areas; (b) implementing the provisions of House Bill 1910, (c) incorporating affordable housing, and (d)modifying project eligibility and fees. A,cy O DEPARTMENT OF COMMUNITY & ECONOMIC a• c DEVELOPMENT MEMORANDUM• DATE: May 29, 2008 TO: Council President Marcie Palmer Members of the Renton City Council VIA: . Denis Law, Mayor FROM: Alex Pietsch, Administrator Nye STAFF CONTACT: Mark Santos-Johnson, Senior Economic Development Specialist- ext. 6584 SUBJECT: Multi-Family Housing Property Tax Exemption Modifications and Amendments ISSUE: Should the City(a)modify the designated"residential targeted areas" for eligible projects for the Multi-Family Housing Property Tax Exemption (Exemption)provided for in RMC 4-1-220 and (b) amend the Exemption to implement the provisions of House Bill 1910, incorporate affordable housing, and modify project eligibility and fees? RECOMMENDATION: (1) Adopt a resolution to set a public hearing on June 23, 2008, for the proposed modifications to the Multi-Family Housing Property Tax Exemption; (2) Approve the modifications to the designated residential targeted areas for the Exemption; and (3) Adopt an ordinance to amend the Exemption(RMC 4-1-220) by: (a) modifying the designated residential targeted areas; (b) implementing the provisions of House Bill 1910, (c) incorporating affordable housing, and(d) modifying project eligibility and fees. BACKGROUND SUMMARY: Overview of Current Exemption Program As authorized by Chapter 84.14 RCW, the City Council established a property tax exemption incentive in 2003 (codified in RMC 4-1-220 as subsequently amended) to encourage multi-family housing development in the following three designated residential targeted areas: May 29, 2008 Page 2 • Highlands: Within the Center Village Comprehensive Plan designation and in one of the following: the Center Village (CV)zone, the Residential Multi-Family(RM-F) zone, or the Residential 10 Dwelling Units/Acre (R-10) zone; • Downtown: In the Center Downtown (CD) zone, Residential Multi-Family Urban Center (RM-U) zone, or Residential Multi-Family Traditional (RM-T) zone; and • South Lake Washington: In the Urban Center North District 1 (UC-N1) zone or properties within the Urban Center North District 2 (UC-N2) zone that were designated as eligible for exemption by Council Ordinance 5151 and developed with a residential multi-family project vested to the requirements of the Commercial Office Residential 3 (COR 3) zone. (Please see Attachment 1 for a map of the current designated residential targeted areas for the Exemption.) In addition to being located in one of the designated residential targeted areas noted above, eligible multi-family housing projects must, for example, be newly constructed and have a minimum of 30 attached dwelling units if located in the CD zone, the South Lake Washington targeted area, or within the Center Village Comprehensive Plan designation and in the Center Village (CV) zone. Eligible projects must currently have a minimum of ten attached dwelling units if located in one of the other zones noted above. As outlined in Chapter 84.14 RCW and originally codified in RMC 4-1-220, the provision allows the value of qualified new housing construction to be exempt from ad valorem property taxation for ten successive years after completion of the project. However, the exemption does not include the value of the land, existing improvements or non-housing-related improvements (e.g., commercial space). The multi-family property tax exemption is in addition to any other tax credits, grants or incentives provided by law for the multi-family housing. (See changes below for the duration of the property tax exemption for future projects.) As noted above, the Exemption applies to all levels of the ad valorem property tax, including the local jurisdiction, county, state, and all local taxing districts. For projects in Renton, this amounts to a total of$9.77752 per$1,000 of assessed value for 2008. The value of the property tax exemption will of course be determined by the nature, quality, and cost of the multi-family housing(e.g., size, type,parking, and amenities). For example, the estimated property tax exemption for the 154-unit Merrill Gardens at Renton Centre completed in 2007 is approximately$113,592 per year, or $1,135,924 over 10 years (based on the 2007 post-construction assessed values and the 2007 property tax rate). This equates to a potential property tax savings of approximately$738 per year per housing unit($7,376 per housing unit for the 10-year period) for the project. The City of Renton's portion of the above estimated potential property tax savings would equal approximately$29,946 per year($299,457 for the ten-year period) for the 154-unit multi-family housing project (based on the 2007 assessed value and property tax rates). The City will receive $4,616 per year in property taxes for the project's land(based on the 2007 assessed value and property tax rates), but the City will not receive property tax revenue for the residential improvements until after the 10-year property tax exemption period ends. H:\EDNSP\Council\Issue Papers-Agenda Bills-Ctte Reports\2008\Multi-Family Housing Property Tax Exemption Modifications\IssuePaper- MFHPTE Modifications 5-29-08.doc May 29, 2008 Page 3 (Please see Attachment 2 for the projected Exemption for the Merrill Gardens at Renton Centre, plus a breakdown of the local ad valorem property tax rate and how the tax rates apply to the various taxing entities.) Exemption Projects Approved to Date As noted in Figure 1 below, the City has approved seven multi-family housing projects to date with a total of 1,602 housing units, including 1,552 rental apartments and 50 for-sale condominiums. The projects are located in all three designated residential targeted areas, including three Downtown (310 housing units),three in South Lake Washington(1,075 housing units), and one in the Highlands (217 housing units). The projects range in size from 50 housing units to 440 housing units with an average of 229 housing units per project. Figure 1 -Multi-Family Housing Property Tax Exemption—Approved Project Applications Number of Designated Application Housing Residential Type of Approval Project Name Units Targeted Area Housing Date Project Status Merrill Gardens at Renton Centre 154 Downtown Rental 5/13/2005 Completed 2007 Parkside at 95 Burnett 106 Downtown Rental 5/13/2005 Completed 2007 The Bristol II at Southport 195 South Lake WA Rental 2/28/2006 Under construction Chateau de Ville 50 Downtown For Sale 6/13/2006 Under construction The Reserve 440 South Lake WA Rental 1/26/2007 Under construction The Sanctuary 440 South Lake WA Rental 1/26/2007 Under construction Harrington Square 217 Highlands Rental 9/27/2007 Under construction Total 1,602 RECOMMENDATION ANALYSIS: Proposed Modifications to the Designated Residential Targeted Areas The Department of Community and Economic Development(CED)proposes the following changes to the designated residential targeted areas for the Exemption: 1) Remove South Lake Washington as a designated residential targeted area. As initially adopted by the Washington State Legislature in 1995 as Chapter 84.14 RCW, the primary purpose of the Exemption is to encourage increased residential opportunities within designated urban centers that lack sufficient, desirable, and convenient residential housing. Since the Exemption has now been used by three projects in the South Lake Washington designated residential targeted area with a total of 1,075 housing units (67% of all Exemption housing units approved to date), CED believes that with the completion of the three projects the South Lake Washington area no longer qualifies as an area that lacks sufficient, desirable, and convenient residential housing opportunities. Consequently, CED recommends removing South Lake Washington as a designated residential targeted area. H:\EDNSP\Council\Issue Papers-Agenda Bills-Ctte Reports\2008\Multi-Family Housing Property Tax Exemption Modifications\IssuePaper- MFHPTE Modifications 5-29-08.doc f May 29, 2008 Page 4 2) Modify the Highlands designated residential targeted area to change the "R-10" zone to the"R- 14"zone and revise the designated residential targeted areas map to reflect the expanded Center Village (CV) Comprehensive Plan designation. As part of the Highlands Comprehensive Plan and zoning review completed in 2007,the City Council changed the Residential 10 Dwelling Units/Acre (R-10) zone to the Residential 14 Dwelling Units/Acre (R-14) zone and expanded the Center Village (CV) Comprehensive Plan designation to include additional R-14 zoned property on the north and Residential Multi-Family (RM-F) zoned property on the south. Since the original Highlands designated residential targeted area included the entire CV Comprehensive Plan designation area, CED recommends changing the current references to the "R-10"zone to the "R-14"zone and revising the designated residential targeted areas map to reflect the expanded Center Village (CV) Comprehensive Plan designation area for the Highlands. As required by RCW 84.14.040, CED is requesting that the Council adopt a resolution to set a public hearing on June 23, 2008, to modify the existing designated residential targeted areas for the Exemption as noted above. (Please see Attachment 3 for a map of the proposed modified designated residential targeted areas for the Exemption.) Proposed Modifications to Implement House Bill 1910 and Incorporate Affordable Housing The City has used the Multi-Family Housing Property Tax Exemption("Exemption") incentive since 2003 to help stimulate new residential construction in the City's designated residential targeted areas: Downtown Renton, South Lake Washington, and the Highlands. As provided for originally in Chapter 84.14 RCW, the provision allows the value of qualified new housing construction to be exempt from ad valorem property taxation for ten successive years after completion of the project. In 2007,the Washington State Legislature passed the Engrossed Second Substitute House Bill 1910 amending Chapter 84.14 RCW which limited the property tax exemption for future eligible projects to either eight years or 12 years, the longer term being available if the project provides at least 20%of the units as affordable rental or for-sale housing. The City has not had any prior affordability requirements related to the Exemption incentive. However, to allow potential developers to access the longer 12-year exemption and to use the exemption to help create more affordable housing, CED staff recommends revising the program to allow a 12-year property tax exemption for projects where the owner agrees to rent or sell at least 20%of the multi-family housing units as affordable housing to low and moderate income households. If the owner elects not to provide the affordable housing, the property tax exemption would be limited to eight years (as opposed to the current ten years) for future eligible Exemption projects. House Bill 1910 includes maximum household median income percentages for the affordable housing units, but allows local jurisdictions to adopt lower household median income percentages to respond to the community's affordable housing needs. In order to help respond to the affordable housing needs in Renton, CED proposes to establish the affordability targets noted below for eligible projects to qualify for the 12-year property tax exemption. H:\EDNSP\Council\Issue Papers-Agenda Bills-Ctte Reports\2008\Multi-Family Housing Property Tax Exemption Modifications\IssuePaper- MFHPTE Modifications 5-29-08.doc May 29, 2008 Page 5 For your reference, the current estimated maximum monthly housing expenses (including rent and tenant-paid utilities for the rental apartment units and the mortgage payment, property taxes, mortgage insurance, and homeowner's dues/insurance for for-sale units) are listed in parenthesis below for each unit size and applicable affordability levels. The maximum monthly housing expenses will change each year as King County's median household income changes. (Please refer to Attachment 4 for a Breakdown of Household Median Incomes and Maximum Monthly Housing Costs by Household Median Income and Unit Size.) • For rental projects, at least 20% of the units in the project must be affordable to low income households at 80% or less of median income. The current estimated maximum monthly housing expenses (including rent and tenant-paid utilities) follow: studio apartments ($1,140); one-bedroom apartments ($1,220); two-bedroom apartments ($1,466); and three- bedroom apartments ($1,692). • For ownership projects, at least 20% of the units in the project must be affordable to moderate income households at 120% or less of median income. The current estimated maximum monthly housing expenses follow: studio units ($1,709); one-bedroom units ($1,831); two-bedroom units ($2,198); and three-bedroom units ($2,539). By way of comparison, the current apartment and townhouse rents (excluding tenant-paid utilities) at the 95 Burnett are $950 for studios, $1,085 - $1,250 for one-bedroom units, $1,465 - $1,580 for two-bedroom units, and $1,695 - $1,705 for three-bedroom units. As part of the City's efforts to incorporate affordable housing into the Exemption, CED proposes to establish the designated residential targeted areas as targeted areas for low-income housing serving households at or below eighty percent(80%) of the median income. As noted in Attachment 5, CED has also included definitions in subsection RMC 4-1-220(B) for"Affordable Housing," Household," "Low income Household,""Median Income," and"Moderate income household" for Exemption projects as part of the changes to incorporate affordable housing in to the Exemption. CED also House Bill 1910 also includes new annual reporting requirements for Exemption project owners and local jurisdictions. CED submitted the first such report to the State of Washington Department of Community, Trade and Economic Development(CTED) in January 2008. In order to administer the affordable housing element of the Exemption and to comply with the additional reporting requirements included in House Bill 1910, CED has also included proposed modifications for the Exemption application material in subsection RMC 4-1-220(E), the final certificate material in subsection RMC 4-1-220(J), and the annual certification material in subsection RMC 4-1-220(K) . For illustration purposes,the estimated maximum monthly housing expense figures are based one person for the studio units and 1.5 persons per bedroom for the one,two,or three-bedroom units. The actual maximum monthly housing expense figures will be based on the actual number of people in each household. H:\EDNSP\Council\Issue Papers-Agenda Bills-Ctte Reports\2008\Multi-Family Housing Property Tax Exemption Modifications\IssuePaper- MFHPTE Modifications 5-29-08.doc %iire 'lief May 29,2008 Page 6 Proposed Modifications to Project Eligibility and Fees Based on the City's administration of the Exemption program since 2003, CED also recommends the following text modifications related to project eligibility and fees for the Exemption: 1) Increase the minimum number of housing units for eligible projects in the Residential Multi- Family Urban Center(RM-U) zone from ten to 30 units In 2007 the City Council amended RMC 4-1-210 in part to increase the minimum number of housing units to 30 units for new multi-family housing projects in the RM-U to be eligible for the Waived Fees for for-sale housing in downtown Renton. To conform to the eligibility provisions for the Waived Fees, CED proposes to modify subsection 4-1-220(D)(2) to increase the minimum number of housing units for eligible projects in the RM-U zone from ten to 30 housing units— similar to eligible projects in the CD or CV zones. 2) Remove the Special Design Regulations now integrated into the Development Regulations for all eligible zones As adopted earlier, RMC 4-1-220 included special design regulations for projects located in the following areas that did not have specific design regulations included elsewhere in the City's Development Regulations: the CV Comprehensive Plan designation or within the Urban Center North District 2 (UC-N2) and vested to the requirements of the Commercial Office Residential 3 (COR 3) zone. As part of the Highlands Comprehensive Plan and zoning review completed in 2007, the City Council adopted design regulations for the area included in the Highlands designated residential targeted area. As part of the current proposed changes, the UC-N2 area referenced above will be eliminated as part of the removal of the South Lake Washington designated residential targeted area. Consequently, CED recommends that the Special Design Regulations included in subsection 4-1-220(D)(3)be removed. 3) Increase project fees for the Exemption Based on the City's administration of the Exemption since 2003 and the additional reporting requirements included in House Bill 1910 as referenced above, CED recommends increasing the fees as reflected in the following chart: Multi-Family Housing Property Tax Exemption—Current& Proposed Fees Fee Description Current Fee Proposed Fee Initial Application $500 $1,000 Amendment of Contract $250 $500 Extension of Conditional Certificate $250 $250 (Same) Final Certificate Application $250 $1,000 H:\EDNSP\Council\Issue Papers-Agenda Bills-Ctte Reports\Z008\Multi-Family Housing Property Tax Exemption Modifications\IssuePaper- MFHPTE Modifications 5-29-08.doc May 29, 2008 Page 7 4) Add a definition of"mixed-use" for Exemption projects to further refine Project eligibility Eligible Exemption projects in the CD zone or within the CV Comprehensive Plan designation and in the CV zone (plus projects in the RM-U zone if the proposed modifications to project eligibility above are approved)must be located in a new mixed-use development, unless otherwise waived by the CED Administrator. The City's Development Regulations (RMC 4-11-130) includes the following mixed-use definition: "Mixed Use: A building or site with two (2) or more different uses such as residential, office,manufacturing, retail,public or entertainment." To clarify the desired mixed-uses for Exemption projects, CED recommends adding the following definition to subsection RMC 4-1-220(B): For the purposes of RMC 4-1-220, "Mixed-use means a multi-family housing residential project with at least one (1) other non-residential use in one (1) 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 (CED) 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 (CED) Administrator, the non-residential 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." (Please refer to Attachment 5 for a complete redline version of the proposed text amendments for RMC 4-1-220. Please note that only the text that is marked by an underline or strikethrough is different from the current code.) CONCLUSION: The City has used the Multi-Family Housing Property Tax Exemption since 2003 to encourage increased residential opportunities within designated urban centers that lack sufficient, desirable, and convenient residential housing. To date, the City has approved seven multi-family housing projects with a total of 1,602 housing units in all three designated residential targeted areas, including three projects Downtown(310 housing units), three projects in South Lake Washington (1,075 housing units), and one project in the Highlands (217 housing units). Based on the City's administration of the Exemption, CED recommends removing South Lake Washington as a residential targeted area and modifying the Highlands residential targeted area to conform to zoning and Comprehensive Plan changes adopted by the City Council last year. CED also recommends amending the Exemption to implement the provisions of House Bill 1910, incorporate affordable housing, and modify project eligibility and fees. In order to make the proposed changes outlined above, the City must hold a public hearing to consider the modifications to the designated residential targeted area for eligible projects, approve H:\EDNSP\Council\Issue Papers-Agenda Bills-Ctte Reports\2008\Multi-Family Housing Property Tax Exemption Modifications\IssuePaper- MFHPTE Modifications 5-29-08.doc May 29, 2008 Page 8 the modified designated residential targeted areas, and adopt an ordinance that modifies RMC 4-1- 220 to reflect the modifications noted in Attachment 5. Attachments: 1) Current Residential Targeted Areas for Multi-Family Housing Property Tax Exemption map 2) Merrill Gardens at Renton Centre—Projected Multi-Family Housing Property Tax Exemption 3) Proposed Changes to the Residential Targeted Areas for Multi-Family Housing Property Tax Exemption map 4) Breakdown of Household Median Incomes and Maximum Monthly Housing Costs by Household Median Income and Unit Size 5) Redline Version of Proposed Modifications to RMC 4-1-220 6) Draft Ordinance cc: Jay Covington,CAO Bonnie Walton,City Clerk Linda Parks,Interim FIS Administrator Terry Higashiyama,Community Services Administrator Gregg Zimmerman,PW Administrator Suzanne Dale Estey,Economic Development Director Neil Watts,Development Services Director Rebecca Lind,Strategic Planning Manager Jennifer Henning, Current Planning Manager Karen Bergsvik,Human Services Manager H:\EDNSP\Council\Issue Papers-Agenda Bills-Ctte Reports\2008\Multi-Family Housing Property Tax Exemption Modifications\IssuePaper- MFHPTE Modifications 5-29-08.doc Attachment 1 • •%it I.iT:ali �i i� ■r : l6th Downtown �� ma ,y. _ .11 - ® Highlands t ■�.�: _ .'. ♦ r Ili C.■111I Yht■.Old■.■.■ u n. 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File Name.H'\EDNSP\GIS_projects\economic developments multi_famity_tax_exemptiommxds\proposed_changes_residential_MF_tax_exemption mxd Attachment 4 Breakdown of Household Median Incomes and Maximum Monthly Housing Costs by Household Median Income and Unit Size King County 2008 Median Income: $81,400 Household Income based on Percentage of Median Income and Household Size of Median Income 1 Person 2 People 3 People 4 People 5 People 6 People 7 People 8 People 100% $57,000 $65,100 $73,300 $81,400 $87,900 $94,400 $100,900 $107,400 90% $51,300 $58,590 $65,970 $73,260 $79,110 $84,960 $90,810 $96,660 80% $43,050 $49,200 $55,350 $61,500 $66,400 $71,350 $76,250 $81,200 60% $34,200 $39,060 $43,980 $48,840 $52,740 $56,640 $60,540 $64,440 50% $28,500 $32,550 $36,650 $40,700 $43,950 $47,200 $50,450 $53,700 45% $25,650 $29,295 $32,985 $36,630 $39,555 $42,480 $45,405 $48,330 40% $22,800 $26,040 $29,320 $32,560 $35,160 $37,760 $40,360 $42,960 35% $19,950 $22,785 $25,655 $28,490 $30,765 $33,040 $35,315 $37,590 30% $17,100 $19,500 $21,950 ' $24,400 $26,350 $28,300 $30,250 $32,200 Maximum Monthly Housing Cost based on Percentage of Median Income and Unit Size (Includes rent and tenant-paid utilities for apartment units and mortgage payment, property taxes, mortgage insurance, and homeowner's dues/insurance for for-sale units) % of Median 1 2 3 4 5 Income Studio Bedroom Bedroom Bedroom Bedroom Bedroom 100%% $1,424 $1,526 $1,832 $2,116 $2,360 $2,602 90% $1,282 $1,373 $1,649 $1,904 $2,124 $2,342 80% $1,140 $1,220 $1,466 $1,692 $1,888 $2,082 60% $855 $915 $1,099 $1,269 $1,416 $1,562 50% $712 $763 $916 $1,058 $1,180 $1,301 45% $641 $686 $824 $952 $1,062 $1,171 40% $570 $610 $733 $846 $944 $1,041 35% $498 $534 $641 $740 $826 $911 30% $427 $457 $548 $634 $707 $780 Note: For illustration purposes, the estimated maximum monthly housing expense figures are based one person for the studio units and 1.5 persons per bedroom for the one, two, and three-bedroom units. The actual maximum monthly housing expense figures will be based on the actual number of people in each household. Sources: U.S. Department of Housing and Urban Development and Washington State Housing Finance Commission (2008) Attachment 5 REDLINE VERSION OF PROPOSED MODIFICATIONS TO RMC 4-1-220— PROPERTY TAX EXEMPTION FOR MULTI-FAMILY HOUSING IN RESIDENTIAL TARGETED AREAS May 29, 2008 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 Administrator of the Renton Department of Community and Economic Development, Planning Department, or any other City office, department or agency that shall succeed to its functions with respect to this Section, or his or her authorized designee. 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. "Household" means a single person, family, or unrelated persons living together. 4. "Low 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)(b)(ii)(a) below. 5. "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 1 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. 6. "Mixed-use" means a multi-family housing residential project with at least one (1) other non-residential use in one (1) 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 (CED) 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 non-residential 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. 7. "Moderate income household" means a single person, family, or unrelated persons living together whose adjusted income is at or below one hundred twenty percent (120%) of the median income, as further defined in subsection (C)(1)(b)(ii)(b) below. 8. "Multi-family housing" means one or more new buildings designed for permanent residential occupancy, each with four (4) or more dwelling units. 93. "Permanent residential occupancy" means multi-family housing that provides either owner occupancy or rental accommodation on a nontransient basis. This definition includes rental accommodation that is leased for a period of at least one (1) month but excludes, for example, hotels and motels that predominantly offer rental accommodation on a daily or weekly basis. C. TAX EXEMPTION: 1. Duration of Exemption: The value of improvements qualifying under RMC 4-1-220D is exempt from ad valorem property taxation as follows:fer ten (10) successive years beginning January 1st of the year immediately exemption. (a) For properties for which applications are submitted before July 22, 2007, the value is exempt for ten (10) successive years beginning January 1 of the year immediately following the calendar year of issuance of the final certificate of tax exemption; and (b) For properties for which applications are submitted on or after July 22, 2007. the value is exempt: 2 (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 subsection (C)(1)(b)(ii)(a) and (C)(1)(b)(ii)(b) below. (a) For rental projects, at least twenty percent (20%) of the multi- family housing units in the project must be rented throughout the duration of the 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 must be sold as affordable housing to low or moderate income households at one hundred twenty (120%) 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 subsection (C)(1)(b)(ii)(a) and (C)(1)(b)(ii)(b) above. (d) If. in calculating the minimum twenty percent (20%) of the multi- family housing units in the project for affordable housing in subsection (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. (e) When the project includes more than one building with multi- family housing units, all of the affordable housing units required in subsection (C)(1)(b)(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 4-1-220D, 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 3 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 under this Section, the project must satisfy all of the following requirements: 1. Location: The property must be located in one of the designated "residential targeted areas" listed below in subsection (D)(1)(a) or; (D)(1)(b) or (D)(1)(c) of this Section which are targeted for low-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. Highlands: Within the Center Village Comprehensive Plan designation and in one of the following: the Center Village (CV) zone, the Residential Multi-Family (RM-F) zone, or the Residential 141-0 Dwelling Units/Acre (R-141-0) zone; or b. Downtown: In the Center Downtown (CD) zone, Residential Multi- Family Urban Center (RM-U) zone, or Residential Multi-Family Traditional (RM-T) zone_;-er N1) zone or properties within the Urban Center North District 2 (UC-N2) vo ted to the requirements of the Commercial Office Residential `2 (COR 3) zone. 2. Size and Structure: a. If the project is located in the (RM U) zone or Residential Multi-Family Traditional (RM-T) zone or within the Center Village Comprehensive Plan designation and in either the Residential Multi-Family (RM-F) zone or the Residential 1440 Dwelling Units/Acre (R-141-0) zone, the project must (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%) percent of the space within the project shall be intended for permanent residential occupancy. b. If the project is located in the Residential Multi-Family Urban Center (RM-U) zone, the Center Downtown (CD) zone, Urban Center North 4 New .410 District 1 (UC-N1) zone, or in the Urban Center North District 2 (UC-N2) Residential 3 (COR 3) zone requirements, or is within the Center Village Comprehensive Plan designation and in the Center Village (CV) zone, the project must (i) consist of a minimum total of thirty (30) new dwelling units of multi-family housing and (ii) be located in 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 be located in a new residential structure(s). At least fifty percent (50%) percent-of the space within the project shall be intended for permanent residential occupancy. 3. Special Design Regulations for Projects Located in the Center Village (UC N2) and Vested to the Requirements of the Commercial Office Residential 3 (COR 3) Zone: a. If the project is located in the Center Village (CV) zone or District 2 ( IG N2) and-vested in the Commercial Office Residential standards and guidelines in RMC 1 3 100 for District 'C', even though the project is not located in the Urban Center North b. If the project is located in the Residential 10 Dwelling Units/Acre „ (471 zone, „nless othe ise , dived by the dministrator If the provisions therein. 34. 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 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 5 (4) additional dwelling units in the new multi-family housing project; or b. Provide the number of dwelling units otherwise required in subsection (D)(2) of this section. 45. Completion Deadline: The project must be completed within three (3) years from the date of approval of the contract by the City Council as provided in RMC 4-1-220F2 or by any extended deadline granted by the Administrator as provided in RMC 4-1-2201. (Ord. 5151, 8-1-2005; Amd. Ord. 5192, 1-23-2006) 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 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 subsection (C)(1)(b)(ii) above; 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 five hundred one thousand dollars ($1,000.00500.00). 6 tome 440 3. Deadline: The application shall be submitted prior to the issuance of the building permit for the project. The 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 4-1-220D and the application requirements contained in RMC 4- 1-220E; 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 4-1-2201. G. APPLICATION DENIAL: 1. Denial: The Administrator shall deny an application if the criteria in RMC 4-1-220F1 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: 7 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 two-kw-rid-red fift dollars ($500.002-50.00), at any time within three (3) years of the date of the approval of the contract as provided for in RMC 4-1-220G2. 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 4-1-2201 are met. I. 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. 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 4-8-110E. 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: 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 ($1,000.00500.00250.00) and file with the Administrator 8 NioBe Noe 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; and 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 subsection (C)(1)(b)(ii) above, along with the number, type, and specific multi-family housing units rented or sold to date, as applicable, to meet the affordable housing requirements, f. Any additional information requested by the City pursuant to meeting any reporting requirements under RCW 84.14: 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 4-1-220J1, the City shall file a final certificate of tax exemption with the 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 Department of Records and Elections, the contract with the City required under RMC 4-1-220F2, as amended under RMC 4-1-220H, 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. 9 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 4-8-110E. 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 filed-issued the final certificate of tax exemption and each year thereafter; for a period of ten (10) y ar,,the duration of the tax exemption period, the property owner shall file an annual report certification with the Administrator, Failure to submit the annual reportcertifieation may result in cancellation of the tax exemption. The certification shall contain such information as required by RCW 84.14 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 previous 'artwelve 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 subsection (C)(1)(b)(ii) above since the date of filing of 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; acid 3. A description of any improvements or changes to the property made after the films-of-City issued the final certificate of tax exemptions or most recent 10 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 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 units at the time of purchase during the twelve 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 months ending with the anniversary date, as applicable to meet the affordable housing requirements in subsection (C)(1)(b)(ii) above: and 7. Any additional information requested by the City pursuant to meeting any reporting requirements under RCW 84.14. 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. The appeal before the Hearing Examiner shall follow the procedures set forth in RMC 4-8-110E. 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. 11 3. Change of Use: If the owner intends to convert the multi-family housing to another use, the owner must notify the Administrator and the 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 4-1-220E after December 31, 2009, unless extended by City Council action. Incomplete applications for conditional certificates as of December 31, 2009, shall be returned to owners. Notwithstanding the above, the City shall process (1) pending complete applications for a conditional certificate as of December 31, 2009, and (2) applications for an extension of the conditional certificate and/or a final certificate received after December 31, 2009, as provided in this Section under RMC 4-1-220D through 4-1-220J. RMC 4-1-220C and 4-1-220J through 4-1-220L shall continue to apply to all properties that have been or are issued a final certificate of tax exemption under this Section until expiration, termination or cancellation of the tax exemption. (Ord. 5061, 12-22- 2003; Ord. 5249, 12-11-2006) 12 Attachment 6 CITY OF RENTON, WASHINGTON ORDINANCE NO. AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SECTION 4-1-220, PROPERTY TAX EXEMPTION FOR MULTI-FAMILY HOUSING IN RESIDENTIAL TARGETED AREAS, OF CHAPTER 1, ADMINISTRATION AND ENFORCEMENT, OF TITLE IV (DEVELOPMENT REGULATIONS) OF ORDINANCE NO. 4260 ENTITLED "CODE OF GENERAL ORDINANCES OF THE CITY OF RENTON, WASHINGTON" BY MODIFYING THE DESIGNATED RESIDENTIAL TARGETED AREAS, IMPLEMENTING THE PROVISIONS OF HOUSE BILL 1910, INCORPORATING AFFORDABLE HOUSING,AND MODIFYING PROJECT ELIGIBILITY AND FEES. WHEREAS, on December 22, 2003, the Renton City Council adopted 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 provisions of Section 4-1-220, Property Tax Exemption for Multi- Family Housing in Residential Targeted Areas, have been useful in helping to encourage increased residential opportunities and stimulate new construction of multi-family housing in residential targeted areas; and WHEREAS,the Renton City Council desires to modify the residential targeted areas for future multi-family housing projects eligible for the property tax exemption; WHEREAS, the State Legislature passed House Bill 1910 in 2007 amending Chapter 84.14 RCW relating to the multi-family housing property tax exemption; and WHEREAS, the Renton City Council desires to amend RMC 4-220 to implement the changes from House Bill 1910 and revise the project eligibility and fees; and WHEREAS, the Renton City Council desires to incorporate affordable housing into the property tax exemption program and establish the designated residential targeted areas as areas 1 .., ORDINANCE NO. ...r targeted for low-income housing serving households at or below eighty percent (80%) of the median income; WHEREAS, on June 23, 2008, the Renton City Council conducted a public hearing and considered all testimony; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES ORDAIN AS FOLLOWS: SECTION I. Section 4-1-220., Property Tax Exemption for Multi-Family Housing in Residential Targeted Areas, of Chapter 1, Administration and Enforcement, of Title IV (Development Regulations) of Ordinance No. 4260 entitled"Code of General Ordinances of the City of Renton, Washington" is hereby entirely amended to read as follows: 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 Administrator of the Renton Department of Community and Economic Development, or any other City office, department or agency that shall succeed to its functions with respect to this Section, or his or her authorized designee. 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 2 ilow ORDINANCE NO. 14.00 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. "Household" means a single person, family, or unrelated persons living together. 4. "Low 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)(b)(ii)(a)below. 5. "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. 6. "Mixed-use"means a multi-family housing residential project with at least one (1) other non-residential use in one (1) 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 (CED) 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 non-residential 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. 3 ORDINANCE NO. 7. "Moderate income household" means a single person, family, or unrelated persons living together whose adjusted income is at or below one hundred twenty percent(120%) of the median income, as further defined in subsection(C)(1)(b)(ii)(b)below. 8. "Multi-family housing"means one or more new buildings designed for permanent residential occupancy, each with four(4) or more dwelling units. 9. "Permanent residential occupancy"means multi-family housing that provides either owner occupancy or rental accommodation on a nontransient basis. This definition includes rental accommodation that is leased for a period of at least one (1) month but excludes, for example, hotels and motels that predominantly offer rental accommodation on a daily or weekly basis. C. TAX EXEMPTION: 1. Duration of Exemption: The value of improvements qualifying under RMC 4-1-220D 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 1 of the year immediately following the calendar year of issuance of the final certificate of tax exemption; and (b) For properties for which applications are submitted on or after July 22, 2007, 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 4 ORDINANCE NO. least twenty percent(20%) of the multi-family housing units as affordable housing to low and moderate income households as further defined in subsection(C)(1)(b)(ii)(a) and (C)(1)(b)(ii)(b)below. (a) For rental projects, at least twenty percent(20%) of the multi-family housing units in the project must be rented throughout the duration of the 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 must be sold as affordable housing to low or moderate income households at one hundred twenty percent (120%) 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 subsection (C)(1)(b)(ii)(a) and (C)(1)(b)(ii)(b) above. (d) If, in calculating the minimum twenty percent(20%) of the multi-family housing units in the project for affordable housing in subsection(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. (e) When the project includes more than one building with multi-family housing units, all of the affordable housing units required in subsection(C)(1)(b)(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 4-1-220D, nor does the exemption apply to increases in assessed valuation of land and nonqualifying 5 `., ORDINANCE NO. 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 under this Section, the project must satisfy all of the following requirements: 1. Location: The property must be located in one of the designated "residential targeted areas" listed below in subsection(D)(1)(a) or(D)(1)(b) of this Section which are targeted for low-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. Highlands: Within the Center Village Comprehensive Plan designation and in one of the following: the Center Village (CV) zone, the Residential Multi-Family(RM-F) zone, or the Residential 14 Dwelling Units/Acre (R-14) zone; or b. Downtown: In the Center Downtown(CD) zone, Residential Multi-Family Urban Center(RM-U)zone, or Residential Multi-Family Traditional (RM-T) zone. 2. Size and Structure: a. If the project is located in the Residential Multi-Family Traditional (RM-T)zone or within the Center Village Comprehensive Plan designation and in either the Residential Multi-Family(RM-F) zone or the Residential 14 Dwelling Units/Acre (R- 14) zone, the project must(i) consist of a minimum total of ten (10)new dwelling units 6 ORDINANCE NO. rrrr►' 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 Residential Multi-Family Urban Center(RM-U) zone, the Center Downtown (CD) zone or is within the Center Village Comprehensive Plan designation and in the Center Village (CV) zone, the project must (i) consist of a minimum total of thirty(30)new dwelling units of multi-family housing and (ii)be located in 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 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. 3. 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 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(D)(2) of this section. 7 ... ORDINANCE NO. 4. Completion Deadline: The project must be completed within three(3) years from the date of approval of the contract by the City Council as provided in RMC 4-1-220F2 or by any extended deadline granted by the Administrator as provided in RMC 4-1- 220I. (Ord. 5151, 8-1-2005; Amd. Ord. 5192, 1-23-2006) 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 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 subsection (C)(1)(b)(ii) above; 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; 8 1160 ORDINANCE NO. 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. The 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 4-1-220D and the application requirements contained in RMC 4-1-220E; 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 4-1-220I. 9 •. ORDINANCE NO. G. APPLICATION DENIAL: 1. Denial: The Administrator shall deny an application if the criteria in RMC 4-1-220F1 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 4-1-220G2. 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 4-1-220I are met. I. 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. 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: 10 ORDINANCE NO. 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 4-8-110E. 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: 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: 11 ..� ORDINANCE NO. ... 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 subsection(C)(1)(b)(ii) above, along with the number, type, and specific multi- family housing units rented or sold to date, as applicable, to meet the affordable housing requirements; f. Any additional information requested by the City pursuant to meeting any reporting requirements under RCW 84.14; 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. 12 ORDINANCE NO. 4400 3. Filing with County Assessor: For projects that comply with the requirements of RMC 4- 1-220J1, the City shall file a final certificate of tax exemption with the 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 Department of Records and Elections, the contract with the City required under RMC 4-1-220F2, as amended under RMC 4-1-220H, 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. 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 4-8-110E. The owner may appeal the Hearing Examiner's decision to the King County Superior Court according to the procedures 13 ORDINANCE NO. •.w 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. Failure to submit the annual report may result in cancellation of the tax exemption. The certification shall contain such information as required by RCW 84.14 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 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 subsection (C)(1)(b)(ii) above 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 months ending with the anniversary date; 14 ORDINANCE NO. *1460 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 units at the time of purchase during the twelve 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 months ending with the anniversary date, as applicable, to meet the affordable housing requirements in subsection(C)(1)(b)(ii) above; and 7. Any additional information requested by the City pursuant to meeting any reporting requirements under RCW 84.14. 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. The appeal before the Hearing Examiner shall follow the procedures set forth in RMC 4-8-110E. 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 15 ORDINANCE NO. 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 notify the Administrator and the 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- 220E after December 31, 2009, unless extended by City Council action. Incomplete applications for conditional certificates as of December 31, 2009, shall be returned to owners. Notwithstanding the above, the City shall process (1)pending complete applications for a conditional certificate as of December 31, 2009, and (2) applications for an extension of the conditional certificate and/or a final certificate received after December 31, 2009, as provided in this Section under RMC 4-1-220D through 4-1-220J. RMC 4-1-220C and 4-1-220J through 4-1- 220L shall continue to apply to all properties that have been or are issued a final certificate of tax exemption under this Section until expiration, termination or cancellation of the tax exemption. (Ord. 5061, 12-22-2003; Ord. 5249, 12-11-2006) 16 ORDINANCE NO. SECTION II. This ordinance shall be effective upon its passage, approval, and five (5) days after its publication. PASSED BY THE CITY COUNCIL this day of , 2008. Bonnie I. Walton, City Clerk APPROVED BY THE MAYOR this day of , 2008. Denis Law, Mayor Approved as to form: Lawrence J. Warren, City Attorney Date of Publication: 17 CITY OF RENTON, WASHINGTON RESOLUTION NO. A RESOLUTION OF THE CITY OF RENTON, WASHINGTON, SETTING A PUBLIC HEARING DATE FOR PROPOSED MODIFICATIONS TO THE MULTI-FAMILY HOUSING PROPERTY TAX EXEMPTION. WHEREAS, the City is required by RCW 84.14.040 to hold a public hearing when designating a residential targeted area associated with the multi-family housing property tax exemption; and WHEREAS, the City seeks to afford interested parties the opportunity to be heard regarding other proposed modifications to the multi-family housing property tax exemption. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO RESOLVE AS FOLLOWS: SECTION I. That June 23, 2008, at the hour of 7:00 p.m. at the City Council chambers at City Hall, Renton, King County, Washington is hereby fixed as the date, time, and place for a public hearing to consider the proposed modifications to the multi-family housing property tax exemption. SECTION II. The City Clerk is hereby authorized and directed to give notice of the time and date of this hearing. Nor PASSED BY THE CITY COUNCIL this day of , 2008. Bonnie I. Walton, City Clerk APPROVED BY THE MAYOR this day of , 2008. Denis Law,Mayor Approved as to form: Lawrence J. Warren, City Attorney RES. [number]:[date]:ma