HomeMy WebLinkAboutContractAFTER RECORDING, MAIL TO:
City Clerk's Office
City of Renton
1055 S Grady Way
Renton,WA 98055
DOCUMENT TITLE: EXTENDED MULT I-FAMILY HOUSING PROPERTY TAX
EXEMPTION AGREEMENT FOR LIBERTY SQUARE APARTMENTS
REFERENCE NUMBER(S) OF DOCUMENTS RELATED DOCUMENT:
20090622001667
GRANTOR: RENTON FIFTH AND WILLIAMS LIMITED PARTNERSHIP
GRANTEE: CITY OF RENTON
LEGAL DESCRIPTION:
LOTS 11 THROUGH 17, INCLUSIVE, BLOCK 27, TOWN OF RENTON, ACCORDING TO
THE PLATTHEREOF RECORDED IN VOLUME 1 OF PLATS, PAGE 135, IN KING
COUNTY, WASHINGTON; EXCEPT THE WEST 5FEET OF SAID LOTS FOR ALLEY
PURPOSES;
(ALSO KNOWN AS ADJUSTED PARCEL A, CITY OF RENTON LOT LINE ADJUSTMENT
NUMBER LUA-00-168-LLA, RECORDED UNDER RECORDING NUMBER
20020502900015, IN KING COUNTY.WASHINGTON.}
ASSESSOR'S PROPERTY TAX PARCEUACCOUNT NUMBER(S):
723150-2430
The Auditor/Recorder will rely on the information provided on the form. The staff will not
read the document to verify the accuracy or completeness of the indexing information
provided herein.
Extended Multi-Family Housing Property Tax Exemption Agreement
Recording Cover Sheet
Liberty Square Apartments
EXTENDED MUL TI-FAMIL V HOUSING PROPERTY TAX EXEMPTION
AGREEMENT FOR LIBERTY SQUARE APARTMENTS
THIS AGREEMENT is entered into this __ day of ______ , 2022 by
and between RENTON FIFTH AND WILLIAMS LIMITED PARTNERSHIP, a
Washington limited partnership (hereinafter referred to as the "Applicant'), and the CITY
OF RENTON, a Washington municipal corporation (hereinafter referred to as the "City").
Recitals.
1.WHEREAS, in January 2009, the Applicant applied to the City for a limited property
tax exemption (the "Original Exemption") as provided for in Chapter 84.14 RCW and
RMC 4-1-220 for multi-family housing residential rental housing located in the Center
Downtown (CD) zone as part of the Downtown designated residential target area
and the Department of Community and Economic Development Administrator
approved the application; and
2.WHEREAS, the Parties entered into a Multi-Family Housing Property Tax Exemption
Agreement for Liberty Square Apartments on May 28th , 2009, and recorded at King
County Recorder's File No. 20090622001667(" Original Exemption"); and
3.WHEREAS, the Applicant has completed construction of the Liberty Square
Apartments with ninety-two (92) housing units (hereinafter referred to as the
"Project') on property located at 415 and 417 Williams Ave S, Renton, Washington,
and more fully described in Exhibit A attached hereto, (hereinafter referred to as the
"Property"); and
4.WHEREAS, the Applicant successfully completed the requirements of the twelve
(12)-year Multi-Family Housing Property Tax Exemption for the Original Exemption;
and
5.WHEREAS, in 2021, the Washington State Legislature adopted Engrossed Second
Substitute Senate Bill (ESSSB) 5287, amending Chapter 84.14 RCW, which
authorizes multifamily property tax exemptions under certain conditions; and
6.WHEREAS, Chapter 84.14 RCW, as amended, authorizes local jurisdictions to
extend multi-family property tax exemptions for an additional twelve (12) years if, at
a minimum, the owner agrees to meet the locally adopted requirements for new
projects receiving a property tax exemption, as applicable at the time of application
for an extension, and commits to renting or selling at least twenty percent (20%) of
the multi-family housing units as affordable housing units for low-income
households; and
Extended Multi-Family Housing Property Tax Exemption Agreement
Liberty Square Apartments 1
CAG-22-205
15th June
7.WHEREAS, on December 13, 2021, the Renton City Council adopted Ordinance No.
6050, amending the Renton Municipal Code to allow for extended multi-family
property tax exemptions for an additional twelve ( 12) years if the owner agrees to
provide at least twenty percent (20%) of the multi-family housing units as affordable
housing for low-income households making at or below sixty percent (60%) of Area
Median Income as provided for in RMC 4-1-220.C.1.c.ii(a); and
8.WHEREAS, the Applicant's last year of exempted property tax for the Original
Exemption was 2021 ; and
9.WHEREAS, the Applicant applied to the City for an extended limited property tax
exemption on January 20, 2021; and
10.WHEREAS, the City has determined that the Project will, if operated and
maintained as proposed, satisfy the requirements for an Extended Certificate of Tax
Exemption.
NOW, THEREFORE, the City and Applicant do mutually agree as follows:
1.Agreement to Issue Extended Certificate of Tax Exemption.
The City agrees to file an Extended Certificate of Tax Exemption with the King
County Assessor within forty ( 40) days of receipt of evidence of recording of this
Agreement, if Applicant has:
a.Continued to successfully operate and maintain the Project in accordance
with the terms of this Agreement and RMC 4-1-220;
b.Filed a request with the City for an Extended Certificate of Tax Exemption
with the Department of Community and Economic Development Administrator
("Administrator");
c.Paid the City a fee in the amount of one thousand dollars ($1,000.00); and
d.Met all other requirements provided in RMC 4-1-220 for issuance of the
Extended Certificate of Tax Exemption.
2.Duration of the Property Tax Exemption
Subject to the terms of this Agreement and the requirements of RMC 4-1-220,
the value of improvements qualifying under RMC 4-1-220 is exempt from ad valorem
property taxation for twelve ( 12) successive years beginning January 1st of the year
Extended Multi-Family Housing Property Tax Exemption Agreement
Liberty Square Apartments 2
immediately following the calendar year of the final year of the Original Exemption,
subject to approval by the King County Department of Assessments.
For the duration of the twelve (12)-year exemption period, the Applicant agrees
to rent at least twenty percent (20%) of the Project's new multi-family housing units (i.e.,
a minimum of eighteen (18) new multi-family housing units) as affordable housing to low
income households at sixty percent (60%) or less of median income.
The Applicant 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 above.
If the Project includes more than one ( 1) building with multi-family housing units,
all of the affordable housing units required above shall not be located in the same
building.
The following definitions apply to the requirements in this Section 2:
a."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.
b."Household" means a single person, family, or unrelated persons living
together.
c."Low income household" means a single person, family, or unrelated
persons living together whose adjusted income is at or below sixty percent (60%) of the
median income.
d."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.
3.Annual Certification and Report.
Within thirty (30) days after the first anniversary of the date the City issued the
Extended Certificate of Tax Exemption and each year thereafter for the duration of the
tax exemption period noted in Section 2 above, Applicant agrees to file an annual report
with the Administrator. The report 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:
Extended Multi-Family Housing Property Tax Exemption Agreement
Liberty Square Apartments 3
a.A statement of the occupancy and vacancy of the multi-family housing
units during the twelve (12) months ending with the anniversary date;
b.A certification that the multi-family housing units, Project, and Property
have not changed use since the date the City issued the Extended Certificate of Tax
Exemption,
c.A statement that the multi-family housing units, Project, and Property
continue to be in compliance with this Agreement and the requirements of RCW 84.14
and RMC 4-1-220;
d.A description of any improvements or changes to the Project made after
the City issued the Extended Certificate of Tax Exemption;
e.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;
f.The income of each renter household at the time of initial occupar:icy and
the income of each initial purchaser of owner-occupied multi-family housing units at the
time of purchase during the twelve (12) months ending with the anniversary date;
g.A certification that the Project has been and continues to be in compliance
with the affordable housing requirements included in Section 2 above since the date the
City issued the Extended Certificate of Tax Exemption;
h.A breakdown of the number, type, and specific multi-family housing units
rented or sold during the twelve (12) months ending with the anniversary date to meet
the affordable housing requirements included in Section 2 above;
i.Any additional information requested by the City pursuant to meeting any
reporting requirements under RCW 84.14; and
j.Any such further information that the Administrator deems necessary or
useful to evaluate the Applicant's compliance with this Agreement and the requirements
of RCW 84.14 and RMC 4-1-220.
4.No Violations for Duration of Exemption.
For the duration of the property tax exemption granted under RMC 4-1-220 and
noted in Section 2 above, Applicant agrees that the Project and the Property will have
no violations of applicable zoning requirements, land use regulations, and building and
housing code requirements, including but not limited to the development regulations in
Title IV of the RMC, for which the Department of Community and Economic
Extended Multi-Family Housing Property Tax Exemption Agreement
Liberty Square Apartments 4
Development or its functional successor shall have issued a notice of violation, citation,
or other notification that is not resolved by a certificate of compliance, certificate of
release, withdrawal or otherwise, within the time period for compliance, if any, provided
in such notice of violation, citation, or other notification or any extension of the time
period for compliance granted by the Department of Community and Economic
Development.
5.Notification of Transfer of Interest or Change in Use.
Applicant agrees to notify the Administrator within thirty (30) days of any transfer
of Applicant's ownership interest in the Project, the Property, or any improvements
made to the Property. Applicant further agrees to notify the Administrator and the King
County Assessor within sixty (60) days of any change of use of any or all of the multi
family housing units on the Property to another use. Applicant acknowledges that a
change in use may result in cancellation of the property tax exemption and imposition of
additional taxes, interest, and penalty pursuant to State law.
6.Cancellation of Exemption -Appeal.
a.The City reserves the right to cancel the Extended Certificate of Tax
Exemption if at any time the multi-family housing units, the Project, or the Property no
longer complies with the terms of this Agreement or with the requirements of RMC 4-1-
220, or for any other reason no longer qualifies for a property tax exemption.
b.If the property tax exemption is canceled for non-compliance, Applicant
acknowledges that state law requires that an additional real property tax is to be
imposed in the amount of: [a] the difference between the property tax paid and the
property tax that would have been paid if it had included the value of the nonqualifying
improvements, dated back to the date that the improvements became nonqualifying; [b]
a penalty of twenty percent (20%) of the difference calculated under paragraph (a) of
this Section 6; and [c] interest at the statutory rate on delinquent property taxes and
penalties, calculated from the date the tax would have been due without penalty if the
improvements had been assessed without regard to the exemptions provided by
Chapter 84.14 RCW and RMC 4-1-220. Applicant acknowledges that, pursuant to RCW
84.14.110, any additional tax owed, together with interest and penalty, become a lien on
the Property and attach at the time the Property or portion of the Property is removed
from multi-family housing use, and that the lien has priority to and must be fully paid and
satisfied before a recognizance, mortgage, judgment, debt, obligation, or responsibility
to or with which the Property may become charged or liable. Applicant further
acknowledges that RCW 84.14.110 provides that any such lien may be foreclosed in the
manner provided by law for foreclosure of liens for delinquent real property taxes.
Extended Multi-Family Housing Property Tax Exemption Agreement
Liberty Square Apartments 5
c.Upon detennining that a tax exemption is to be canceled, the
Administrator shall notify the property owner by certified mail, return receipt requested.
The property owner may appeal the detennination in accordance with RMC 4-1-220.L.2.
7.Amendments.
No modffication of this Agreement shall be made unless mutually agreed upon by
the parties in writing and unless in compliance with the provisions of RMC 4-1-220.H,
including but not limited to the Applicant's payment of a five hundred dollars ($500)
contract amendment fee.
8.Binding Effect.
The provisions, covenants, and conditions contained in this Agreement are
binding upon the parties hereto and their legal heirs, representatives, successors,
assigns, and subsidiaries.
9.Recording of Agreement.
The Administrator shall cause to be recorded at the Applicant's expense, or
require Applicant to record, in the real property records of the King County Recorder's
Office, this Agreement and any other documents as will identify such tenns and
conditions of eligibility for exemption as the Administrator deems appropriate for
recording.
10.Audits and Inspection of Records.
Applicant agrees to maintain, retain, and make available for inspection upon
seven (7) days' written request from the City, any records pertaining to this Agreement.
Applicant understands and agrees that the City has the right to audit or review
appropriate records to assure compliance with this Agreement and RMC 4-1-220 and to
perfonn evaluations of the effectiveness of the multi-family housing property tax
exemption program.
11.Notices.
All notices to be given pursuant to this Agreement shall be in writing and shall be
deemed given when hand-delivered within nonnal business hours, when actually received
by facsimile transmission, or two (2) business days after having been mailed, postage
prepaid, to the parties hereto at the addresses_ set forth below, or to such other place as a
party may from time to time designate in writing.
Extended Multi-Family Housing Property Tax Exemption Agreement
Liberty Square Apartments 6
15.Severability.
APPLICANT:
Kim Loveall Price
Downtown Action to Save Housing
11018 NE 11th St.,
Bellevue WA 98004
Phone:425-646-9053
CITY: City of Renton
Department of Community and Economic Development
1055 South Grady Way
Renton, Washington 98055
Phone: (425) 430-6592 Fax: (425) 430-7300
Attention: Adm inistrator
In the event that any term or clause of this Agreement conflicts with applicable
law, such conflict shall not affect other terms of this Agreement which can be given
effect without the conflicting terms or clause, and to this end, the terms of the
Agreement are declared to be severable.
[Signatures and notary acknowledgements appear on the following pages.]
Extended Multi-Family Housing Property Tax Exemption Agreement
Liberty Square Apartments 7
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day
and year written above.
RENTON FIFTH AND WILLIAMS LIMITED PARTNERSHIP
A Washington Limited Partnership
�: Renton Fifth and Williams, LP, a Washington Limited Partnership
�: DASH Development, LLC, a Washington Corporation, its
general partner.
�: Downtown Action to Save Housing, a Washington non
profit corporation, its sole member and manager
CITY OF RENTON
§y: Kim oveall Price
Executiv Director
Downtown Action to Save Housing
Armando Pavone, Mayor
ATTEST:
Jason Seth, City Clerk
APP ROVED AS TO LEGAL FORM:
Shane Moloney, City Attorney (SM/MPK -Legal Ref #1866)
Extended Multi-Family Housing Property Tax Exemption Agreement Liberty Square Apartments 8
(approved via email from Patrice Kent on 3/17/2022)
06/15/2022
STATE OF WASHINGTON )
) ss.
COUNTY OF KING )
On this 6 \'sl!= day of fl/\� , 202 2-. , before the
undersigned, a Notary Public in and for state of Washington, duly commissioned
and sworn, personally appeared before me KIM LOVEALL PRICE, to me known to be
the EXECUTIVE DIRECTOR of DOWNTOWN ACTION TO SAVE HOUSING that
executed the within and foregoing instrument and acknowledged said instrument to be
the free and voluntary act and deed of said party, for the uses and purposes therein
mentioned, and on oath stated that she was authorized to execute said instrument.
In witness whereof I have hereunto set my hand and affixed my official seal the
day and year first above written.
My commission expires�
Extended Multi-Family Housing Property Tax Exemption Agreement
Liberty Square Apartments 9
STATE OF WASHINGTON )
) ss.
COUNTY OF KING )
On this 15th day of June , 2022 , before the
undersigned, a Notary Public in and for the state of Washington, duly commissioned
and sworn, personally appeared before me Armondo Pavone, to me known to be the
Mayor of the City of Renton, the municipal corporation that executed the within and
foregoing instrument, and acknowledged said instrument to be the free and voluntary
act and deed of said municipal corporation for the uses and purposes therein mentioned
and on oath stated that he was authorized to execute said instrument.
In witness whereof I have hereunto set my hand and affixed my official seal the
day and year first above written.
`—' Lat-t-r:
[notary seal]
`\\‘••‘"" Ilit, NOTARY PUBLIC)
h,�
J Ij// Printed Name: Sandra J. Weir
N
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ozARs. ',,'�% Residing at Kent
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u 17$T67
�, , .e�e��� My commission expires 06/19/2023
OF W AO\
Extended Multi-Family Housing Property Tax Exemption Agreement
Liberty Square Apartments 10
MULTI-FAMILY HOUSING PROPERTY
TAX EXEMPTION AGREEMENT
EXHIBIT A
LEGAL DESCRIPTION
LOTS 11 THROUGH 17, INCLUSIVE, BLOCK 27, TOWN OF RENTON, ACCORDING TO
THE PLATTHEREOF RECORDED IN VOLUME 1 OF PLATS, PAGE 135, IN KING
COUNTY, WASHINGTON; EXCEPT THE WEST 5 FEET OF SAID LOTS FOR ALLEY
PURPOSES;
(ALSO KNOWN AS ADJUSTED PARCEL A, CITY OF RENTON LOT LINE ADJUSTMENT
NUMBER LUA-00-168-LLA, RECORDED UNDER RECORDING NUMBER
20020502900015, IN KING COUNTY.WASHINGTON.)