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6050CITYOFRENTON,WASHINGTONORDINANCENO.6050ANORDINANCEOFTHECITYOFRENTON,WASHINGTON,AMENDINGSECTION4-1-220OFTHERENTONMUNICIPALCODE,BYEXTENDINGTHEMULTI-FAMILYHOUSINGPROPERTYTAXEXEMPTION,ALLOWINGEXTENDEDPROPERTYTAXEXEMPTIONSUNDERCERTAINCONDITIONS,ALLOWINGEXEMPTIONSFORUPTOTWENTY(20)YEARSFORPERMANENTLYAFFORDABLEHOMEOWNERSHIP,MAKINGTECHNICALCHANGESCONSISTENTWITHCHAPTER84.14OFTHEREVISEDCODEOFWASHINGTONASAMENDED,PROVIDINGFORSEVERABILITY,ANDESTABLISHINGANEFFECTIVEDATE.WHEREAS,onDecember22,2003,theRentonCityCouncilpassedOrdinanceNo.5061(codifiedinRMC4-1-220)toestablishalimitedpropertytaxexemptiontoencouragemulti-familyhousingdevelopmentindesignatedresidentialtargetedareas;andWHEREAS,thepropertytaxexemptionhasbeenextendedseveraltimesandwillsunsetonDecember31,2021unlessextendedbyCityCouncilaction;andWHEREAS,in2021,thestateLegislatureadoptedEngrossedSecondSubstituteSenateBill(ESSSB)5287,amendingchapter84.14RCW,whichauthorizesmultifamilypropertytaxexemptionsundercertainconditions;andWHEREAS,chapter84.14RCW,asamended,authorizeslocaljurisdictionstoextendmultifamilypropertytaxexemptionsforanadditional12yearsif,ataminimum,theowneragreestomeetthelocallyadoptedrequirementsfornewprojectsreceivingapropertytaxexemption,asapplicableatthetimeofapplicationforanextension,andcommitstorentingorsellingatleast20%ofthemultifamilyhousingunitsasaffordablehousingunitsforlow-incomehouseholds;andWHEREAS,chapter84.14.RCW,asamended,providesa20-yearexemptiononadvalorempropertytaxesforthequalifyingvalueofnewhousingconstruction,conversion,and1 ORDINANCENO.6050rehabilitationimprovementsifatleast25%oftheunitsmustbebuiltbyorsoldtoaqualifiednonprofitorlocalgovernmentthatwillassurepermanentaffordablehomeownership;andWHEREAS,theprovisionsofRMC4-1-220,PropertyTaxExemptionforMulti-FamilyHousinginResidentialTargetedAreas,havebeensuccessfulinencouragingincreasedresidentialopportunitiesandinstimulatingnewconstructionofmulti-familyhousingintheCity’sprioritycommunityrevitalizationandredevelopmentareasandencouragingmoreaffordablemultifamilyhousingintheCity;andWHEREAS,theCityseekstoamendRMC4-1-220toextend,asmodified,thepropertytaxexemptiontoencourageadditionalfuturemulti-familyhousingprojectsintheresidentialtargetedareas;andWHEREAS,thismatterwasdulyreferredtothePlanningCommissionforinvestigationandstudy,andthematterwasconsideredbythePlanningCommission;andWHEREAS,pursuanttoRCW36.70A.106,onOctober20,2021,theCitynotifiedtheStateofWashingtonofitsintenttoadoptamendmentstoitsdevelopmentregulationsandrequestedexpeditedreview;andWHEREAS,thePlanningCommissionheldapublichearingonNovember17,2021,consideredallrelevantmatters,andheardallpartiesappearinginsupportorinopposition,andsubsequentlyforwardedarecommendationtotheCityCouncil;NOW,THEREFORE,THECITYCOUNCILOFTHECITYOFRENTON,WASHINGTON,DOORDAINASFOLLOWS:SECTIONI.AllportionsoftheRentonMunicipalCodeinthisordinancenotshowninstrikethroughandunderlineeditsremainineffectandunchanged.2 ORDINANCENO.6050SECTIONII.Section4-1-220oftheRentonMunicipalCodeisamendedasfollows:4-1-220PROPERTYTAXEXEMPTIONFORMULTI-FAMILYHOUSINGINRESIDENTIALTARGETEDAREAS:A.PURPOSE:Asprovidedforinchapter84.14RCW,thepurposeofthisSectionistoprovidelimited,eight(8),ten(10),of-twelve(12),ortwenty(20)yearexemptionsfromadvalorempropertytaxationforqualifiednewmulti-familyhousinglocatedindesignatedresidentialtargetareas.B.DEFINITIONS:InconstruingtheprovisionsofthisSection,thefollowingdefinitionsshallbeapplied:1.“Administrator”meanstheDepartmentofCommunityandEconomicDevelopmentAdministrator,oranyotherCityoffice,departmentoragencythatshallsucceedtoitsfunctionswithrespecttothisSection.2.“Affordablehousing”meansresidentialhousingthatisrentedbyalow-incomehouseholdwhosemonthlyhousingcosts,includingtentandutilitiesotherthantelephone,donotexceedthirtypercent(30%)ofthehousehold’smonthlyincome.Forthepurposesofhousingintendedforowneroccupancy,“affordablehousing”meansresidentialhousingthatiswithinthemeansofandpurchasedbylow-ormoderate-incomehouseholds.3.“Downtown”referstoageographicalareadepictedintheEligibleAreasforMulti-FamilyHousingIncentivesMap(“Map”),whichshallbemaintainedin3 ORDINANCENO.6050theOfficeoftheCityClerk,andwhichwasoriginallyadoptedasAttachmentAtoOrdinanceNo.5760.TheboundariesoftheDowntownEligibleAreashownontheMapareherebymadepartofthisSection,whichshallbereadandinterpretedinlightofthecontentsoftheMap.4.“Household”meansasingleperson,family,orunrelatedpersonslivingtogether.5.“Low-incomehousehold”meansasingleperson,family,orunrelatedpersonslivingtogetherwhoseadjustedincomeisatorbelowsixtypercent(60%)ofthemedianincome,asfurtherdefinedinsubsectionC.1.c.ii(a)ofthisSection.6.“Medianincome”meansthemedianfamilyincomeadjustedforfamilysizeforKingCounty,asreportedbytheUnitedStatesDepartmentofHousingandUrbanDevelopment(HUD).IntheeventthatHUDnolongerpublishesmedianincomefiguresforKingCounty,theCitymayuseordeterminesuchothermethodasitmaychoosetodeterminetheKingCountymedianincome,adjustedforhouseholdsize.7.“Mixed-use”meansamulti-familyhousingresidentialprojectwithatleastoneothernonresidentialuseinoneormoremulti-familyhousingbuildingsintheproject,suchasretail,office,entertainment,schools,conferencecentersorauseapprovedinwritingbytheAdministrator.Thepurposeofthemixed-userequirementistoimplementtheintentofthelandusedistrict,maximizetheefficientuseofland,supporttransituse,andencouragethedevelopmentofwellbalanced,attractive,convenient,andvibranturbanresidentialneighborhoods.4 ORDINANCENO.6050Theadditionaluseexcludesanyaccessoryfunctionsrelatedtotheresidentialuse.UnlessotherwisemodifiedorwaivedinwritingbytheAdministrator,thenonresidentialmixed-useshalloccupyataminimumthegroundflooralongthestreetfrontagewithadepthofatleastthirtyfeet(30’)foranybuildingintheproject.8.“Moderate-incomehousehold”meansasingleperson,family,orunrelatedpersonslivingtogetherwhoseadjustedincomeisatorbeloweightypercent(80%)ofthemedianincome,asfurtherdefinedinsubsectionC.1.c.ii(b)ofthisSection.9.“Multi-familyhousing”meansoneormorenewbuildingsdesignedforpermanentresidentialoccupancy,eachwithfour(4)ormotedwellingunits.10.“Permanentresidentialoccupancy”meansmulti-familyhousingthatprovideseitherowneroccupancy,orrentalaccommodationthatisleasedforaperiodofatleastonemonthbutexcludingtransientrentalaccommodationsthatpredominantlyofferaccommodationonadailyorweeklybasis,forexample,hotelsandmotels.11.“Permanentlyaffordablehomeownership”meansadwellingunitthatisaffordablehousingasdefinedaccordingtoRCW43.185A.010;includingbutnotlimitedtobuiltbyorsoldtoaqualifiednon-profitorganization;andsubjecttoaninety-nine(99)-yeargroundleaseordeedrestriction,tobeexecutedatinitialsaleandeachsuccessivesale.5 ORDINANCENO.60504412.“SunsetArea”referstoageographicalareadepictedintheEligibleAreasforMulti-FamilyHousingIncentivesMap(“Map”),asitexistsormaybeamended,whichshallbemaintainedintheOfficeoftheCityClerk,andwhichwasoriginallyadoptedasAttachmentAtoOrdinanceNo.5760.TheboundariesoftheSunsetEligibleAreashownontheMapareherebymadepartofthisSection,whichshallbereadandinterpretedinlightofthecontentsoftheMap.C.TAXEXEMPTION:1.DurationofExemption:ThevalueofimprovementsqualifyingundersubsectionDofthisSectionisexemptfromadvalorempropertytaxationasfollows:a.ForpropertiesforwhichapplicationsaresubmittedbeforeJuly22,2007,thevalueisexemptforten(10)successiveyearsbeginningJanuary1stoftheyearimmediatelyfollowingthecalendaryearofissuanceofthefinalcertificateoftaxexemption.b.ForpropertiesforwhichapplicationsaresubmittedonorafterJuly22,2007,throughDecember17,2018,thevalueisexempt:i.Foreight(8)successiveyearsbeginningJanuary1stoftheyearimmediatelyfollowingthecalendaryearofissuanceofthefinalcertificateoftaxexemption;orii.Fortwelve(12)successiveyearsbeginningJanuary1stoftheyearimmediatelyfollowingthecalendaryearofissuanceofthefinalcertificateoftaxexemption,ifthepropertyotherwisequalifiesfortheexemptionandthe6 ORDINANCENO.6050applicant/ownerrentsorsellsatleasttwentypercent(20%)ofthemulti-familyhousingunitsasaffordablehousingtolow-andmoderate-incomehouseholdsasfurtherdefinedinsubsectionsC.1.b.ii(a)and(b)ofthisSection.(a)Forrentalprojects,atleasttwentypercent(20%)ofthemulti-familyhousingunitsintheprojectshallberentedthroughoutthedurationofthetwelve(12)yearexemptionperiodasaffordablehousingtolow-incomehouseholdsateightypercent(80%)orlessofmedianincome.(b)Forownershipprojects,atleasttwentypercent(20%)ofthemulti-familyhousingunitsintheprojectshallbesoldasaffordablehousingtolow-ormoderate-incomehouseholdsatonehundredtwentypercent(120%)orlessofmedianincome.(c)Theownermayuseanycombinationofstudio,onebedroom,two(2)bedroom,and/orthree(3)bedroomunitstocomplywiththeminimumtwentypercent(20%)requirementinsubsectionC.1.b.ii(a)or(b)ofthisSection.(d)If,incalculatingtheminimumtwentypercent(20%)ofthemulti-familyhousingunitsintheprojectforaffordablehousinginsubsectionC.1.biiofthisSection,thenumbercontainsafraction,thentheminimumnumberofmulti-familyhousingunitsforaffordablehousingshallberoundeduptothenextwholenumber.7 ORDINANCENO.6050(e)Whentheprojectincludesmorethanonebuildingwithmulti-familyhousingunits,alloftheaffordablehousingunitsrequiredinsubsectionC.1.b.iiofthisSectionmaynotbelocatedinthesamebuilding.c.ForpropertiesforwhichapplicationsaresubmittedonorafterDecember18,2018,thevalueisexempt:i.Foreight(8)successiveyearsbeginningJanuary1stoftheyearimmediatelyfollowingthecalendaryearofissuanceofthefinalcertificateoftaxexemption;orii.Fortwelve(12)successiveyearsbeginningJanuary1stoftheyearimmediatelyfollowingthecalendaryearofissuanceofthefinalcertificateoftaxexemption,ifthepropertyotherwisequalifiesfortheexemptionandtheapplicant/ownerrentsorsellsatleasttwentypercent(20%)ofthemulti-familyhousingunitsasaffordablehousingtolow-andmoderate-incomehouseholdsasfurtherdefinedinsubsectionsC.1.c.ii(a)and(b)ofthisSection.(a)Forrentalprojects,atleasttwentypercent(20%)ofthemulti-familyhousingunitsintheprojectshallberentedthroughoutthedurationofthetwelve(12)yearexemptionperiodasaffordablehousingtolow-incomehouseholdsatsixtypercent(60%)orlessofmedianincome.(b)Forownershipprojects,atleasttwentypercent(20%)ofthemulti-familyhousingunitsintheprojectshallbesoldasaffordablehousingtolowormoderateincomehouseholdsateightypercent(80%)orlessofmedianincome.8 ORDINANCENO.6050(c)Theownermayuseanycombinationofstudio,onebedroom,two(2)bedroom,and/orthree(3)bedroomunitstocomplywiththeminimumtwentypercent(20%)requirementinsubsectionC.1.c.ii(a)or(b)ofthisSection.(d)If,incalculatingtheminimumtwentypercent(20%)ofthemulti-familyhousingunitsintheprojectforaffordablehousinginthissubsectionC.1.c.ii,thenumbercontainsafraction,thentheminimumnumberofmulti-familyhousingunitsforaffordablehousingshallberoundeduptothenextwholenumber.(e)Whentheprojectincludesmorethanonebuildingwithmulti-familyhousingunits,alloftheaffordablehousingunitsrequitedinsubsectionC.1.c.iiofthisSectionmaynotbelocatedinthesamebuilding.iii.Fortwenty(20)successiveyearsbeginningJanuary1stoftheyearimmediatelyfollowingthecalendaryearofissuanceofthefinalcertificateoftaxexemption,ifthepropertyotherwisequalifiesfortheexemptionandtheapplicant/ownersellsatleasttwenty-fivepercent(25%)ofthemulti-familyhousingunitsaspermanentlyaffordablehomeownershipforeligiblehouseholdswithannualincomesatorbeloweightypercent(80%)ofmedianincome.2.LimitsonExemption:Theexemptiondoesnotapplytothevalueoflandortothevalueofnonhousing-relatedimprovementsnotqualifyingunderRMC4-1-220.D,nordoestheexemptionapplytoincreasesinassessedvaluationoflandandnonqualifyingimprovements.ThisSectionalsodoesnotapplytoincreasesin9 ORDINANCENO.6050assessedvaluationmadebytheCountyAssessoronnonqualifyingportionsofbuildingandvalueofland,nortoincreasesmadebylawfulorderofaCountyBoardofEqualization,theDepartmentofRevenue,oracounty,toaclassofpropertythroughoutthecountyorspecificareaofthecountytoachievetheuniformityofassessmentorappraisalrequiredbylaw.D.PROJECTELIGIBILITY:ToqualifyforexemptionfrompropertytaxationunderthisSection,theprojectshallsatisfyallofthefollowingrequirements:1.Location:Thepropertyshallbelocatedinoneofthedesignated“residentialtargetareas”listedbelowinsubsectionD.1.aorbofthisSectionwhicharetargetedforlow-ormoderate-incomehousingservinghouseholdsatorbeloweightypercent(80%)ofthemedianincome.Ifapartofanylegallotiswithinaresidentialtargetarea,thentheentirelotshallbedeemedtoliewithintheresidentialtargetarea.a.SunsetArea:IntheSunsetAreaandwithintheCenterVillage(CV),ResidentialMulti-Family(RMF),ortheResidential-14(R-14)Zone;orb.Downtown:IntheDowntownandwithintheCenterDowntown(CD)ZoneorResidential-14(R-14)Zone.2.SizeandStructure:a.IftheprojectislocatedintheDowntownandwithintheResidential14(R-14)Zone,orintheSunsetAreaandwithineithertheResidentialMultiFamily(RMF)ZoneortheResidential-14fR-14)Zone,theprojectshall(i)consist10 ORDINANCENO.6050ofaminimumtotaloften(10)newdwellingunitsofmulti-familyhousing,and(ii)belocatedwithinanewresidentialstructure(s)oranewmixed-usedevelopmentasallowedbytheRMCforthespecificzone.Atleastfiftypercent(50%)ofthespacewithintheprojectshallbeintendedforpermanentresidentialoccupancy.b.IftheprojectislocatedintheDowntownandwithintheCenterDowntown(CD)Zone,orintheSunsetAreaandwithintheCenterVillage(CV)Zone,thefollowingapplies:i.litheprojectislocatedintheDowntownandwithintheCenterDowntown(CD)Zone,theprojectshall(a)consistoiaminimumtotalofthirty(30)newdwellingunitsofmulti-familyhousingand(b)beanewstructure(s)and(c)beamixed-usedevelopment,unlesstheAdministratorwaivesoneormoreoftheserequirements.IftheAdministratorwaivesthemixed-usedevelopmentrequirement,themulti-familyhousingshallbelocatedinanewresidentialstructure(s).Atleastfiftypercent(50%)ofthespacewithintheprojectshallbeintendedforpermanentresidentialoccupancy.ii.litheprojectislocatedintheSunsetAreaandwithintheCenterVillage(CV)Zone,theprojectshall(a)consistofaminimumtotalofthirty(30)newdwellingunitsofmulti-familyhousingand(b)belocatedinanewstructure(s)and(c)beamixed-usedevelopment,unlesstheAdministratorwaivestheminimumnumberofnewunitsrequirementorthemixed-usedevelopmentrequirement.TheAdministratorcannotwaivethenewstructure(s)requirement.IftheAdministratorwaivesthemixed-usedevelopmentrequirement,themulti-family11 ORDINANCENO.6050housingshallbelocatedinanewresidentialstructure(s).Atleastfiftypercent(50%)ofthespacewithintheprojectshallbeintendedforpermanentresidentialoccupancy.iii.Ifonehundredpercent(100%)ofthehousingunitsinahomeownershipprojectareaffordablehousing,theprojectshall(a)consistofaminimumoften(10)newdwellingunitsofmulti-familyhousingand(b)belocatedwithinanewresidentialstructure(s)oranewmixed-usedevelopmentasallowedbytheRMCforthespecificzone.Atleastfiftypercent(50%)ofthespacewithintheprojectshallbeintendedforpermanentresidentialoccupancy.Theprojectshalldesignateandsellatleastfiftypercent(50%)oftotalhousingunitsasaffordableforhouseholdsatorbeloweightypercent(80%)ofmedianincome,anddesignateandsellanyremaininghousingunitsasaffordableforhouseholdsatorbelowonehundredtwentypercent(120%)ofmedianincome.Inaddition,thehousingunitsaffordableforhouseholdsatorbeloweightypercent(80%)ofmedianincomeshallremainaffordableinperpetuitythroughacommunitylandtrustorothersimilarmodelacceptabletotheCity.iv.Market-ratetownhomeprojectsarenoteligiblefortheexemption.3.ComplianceMonitoring:Anyapplicant/ownerwithaffordablehousingunitsintheprojectshalldemonstrateexperienceand/orabilitytoprovideaffordablehousingandprovideathird-partyentitytodocumentcompliancewith12 ORDINANCENO.6050theaffordablehousingrequirementsfortheannualreportsfurtherdefinedinsubsectionKofthisSection.4.ExceptionforExistingResidentialStructure:Inthecaseofanexistingoccupiedresidentialstructurethatisproposedfordemolitionandredevelopmentasnewmulti-familyhousing,theprojectshallprovideasaminimumnumberofdwellingunitsinthenewmulti-familyhousingproject,thegreaterof:a.Replacetheexistingnumberofdwellingunitsand,unlesstheexistingresidentialrentalstructurewasvacantfortwelve(12)monthsormorepriortodemolition,provideforaminimumoffour(4)additionaldwellingunitsinthenewmulti-familyhousingproject;orb.ProvidethenumberofdwellingunitsotherwiserequiredinsubsectionD.2ofthisSection.5.CompletionDeadline:Theprojectshallbecompletedwithinthree(3)yearsfromthedateofapprovalofthecontractbytheCityCouncilasprovidedinsubsectionF.2ofthisSectionorbyanyextendeddeadlinegrantedbytheAdministratorasprovidedinsubsectionIofthisSection.E.APPLICATIONPROCEDURE:1.Form:TheownerofpropertyapplyingforexemptionunderthisSectionshallsubmitanapplicationtotheAdministratoronaformestablishedbytheAdministrator.Theownershallverifythecorrectnessoftheinformationcontainedintheapplicationbyhis/hersignatureandaffirmationmadeunderpenaltyofperjuryunderthelawsoftheStateofWashington.Theapplicationshall13 ORDINANCENO.6050containsuchinformationastheAdministratormaydeemnecessaryoruseful,whichataminimumshallinclude:a.AcompletedCityapplicationform,includinginformationsettingforththegroundsfortaxexemptionandwhethertheownerelectstorentorsellatleasttwentypercent(20%)ofthemulti-familyhousingunitsasaffordablehousingtolow-andmoderate-incomehouseholdstoqualifyforthetwelve(12)yearexemptiondefinedinsubsectionC.1.bc.iiofthisSection;b.Abriefwrittendescriptionoftheproject,andschematicsiteandfloorplansofthemulti-familydwellingunitsandthestructure(s)inwhichtheyareproposedtobelocated;c.Floorandsiteplansoftheproposedproject,whichplansmayberevisedbytheownerprovidedsuchrevisionsaremadeandpresentedtotheAdministratorpriortotheCity’sfinalactionontheexemptionapplication;d.AstatementfromtheowneracknowledgingthepotentialtaxliabilitywhenthepropertyceasestobeeligibleforexemptionunderthisSection.2.Fee:AtthetimeofinitialapplicationunderthisSection,theownershallpaytotheCityaninitialapplicationfeeofonethousanddollars($1,000.00).3.Deadline:Theapplicationshallbesubmittedpriortotheissuanceofthebuildingpermitfortheproject,unlessotherwiseapprovedbytheCouncil.TheAdministratorshallapproveordenyanexemptionapplicationwithinninety(90)daysofreceiptofacompleteapplication.F.APPLICATIONAPPROVAL:14 ORDINANCENO.60501.Approval:TheAdministratormayapproveanapplicationifheorshefindsthat:a.TheownerhascompliedwithalloftherequirementsofthisSection,includingbutnotlimitedtotheprojecteligibilityrequirementscontainedinsubsectionDofthisSectionandtheapplicationrequirementscontainedinsubsectionEofthisSection;andb.Theproposedprojectis,orwillbeatthetimeofcompletion,inconformancewithallapprovedplans,andallapplicablerequirementsoftheRentonMunicipalCodeorotherapplicablerequirementsorregulationsineffectatthetimetheapplicationisapproved.2.ContractRequired:Iftheapplicationisapproved,theownershallenterintoacontractwiththeCity,approvedbytheCityCouncil,regardingthetermsandconditionsoftheprojectunderthisSection.3.IssuanceofConditionalCertificate:FollowingCouncilapprovalofthecontract,theAdministratorshallissueaconditionalcertificateofacceptanceoftaxexemption.Theconditionalcertificateshallexpirethree(3)yearsfromthedateofCouncilapprovalofthecontractunlessanextensionisgrantedasprovidedinsubsectionIofthisSection.G.APPLICATIONDENIAL:1.Denial:TheAdministratorshalldenyanapplicationifthecriteriainsubsectionFlofthisSectionarenotmet.TheAdministratorshallstateinwriting15 ORDINANCENO.6050thereasonsforthedenialandsendnoticeofdenialtotheowner’slastknownaddresswithinten(10)daysofthedenial.2.Appeal:AnownermayappealadenialofataxexemptionapplicationtotheCityCouncilbyfilinganoticeofappealwiththeCityClerkwithinthirty(30)calendardaysofreceiptofnoticeofthedenial.TheappealbeforetheCityCouncilshallbebasedupontherecordbeforetheAdministrator,andtheAdministrator’sdecisionwillbeupheldunlesstheownercanshowthatthereisnosubstantialevidenceontherecordtosupporttheAdministrator’sdecision.TheCityCouncil’sdecisiononappealisfinal.H.AMENDMENTOFCONTRACT:Anownermayrequestanamendment(s)tothecontractbysubmittingarequestinwritingtotheAdministrator,togetherwithafeeoffivehundreddollars($500.00),atanytimewithinthree(3)yearsofthedateoftheapprovalofthecontractasprovidedforinsubsectionF.3ofthisSection.ThedateforexpirationoftheconditionalcertificateshallnotbeextendedbycontractamendmentunlessalltheconditionsforextensionsetforthinsubsectionIofthisSectionaremet.I.EXTENSIONOFCONDITIONALCERTIFICATE:1.Application:TheconditionalcertificatemaybeextendedbytheAdministratorforaperiodnottoexceedtwenty-four(24)consecutivemonths.Theownershallsubmitawrittenrequeststatingthegroundsfortheextensiontogetherwithafeeoftwohundredfiftydollars($250.00).16 ORDINANCENO.60502.Approval:TheAdministratormaygrantanextensioniftheAdministratorfindsthat:a.Theanticipatedfailuretocompleteconstructionwithintherequiredtimeperiodisduetocircumstancesbeyondthecontroloftheowner;b.Theownerhasbeenacting,andcouldreasonablybeexpectedtocontinuetoact,ingoodfaithandwithduediligence;andc.AlltheconditionsoftheoriginalcontractbetweentheownerandtheCitywillbesatisfieduponcompletionoftheproject.3.Denial—Appeal:Ifanextensionisdenied,theAdministratorshallstateinwritingthereasonfordenialandshallsendnoticetotheowner’slastknownaddresswithinten(10)calendardaysofthedenial.AnownermayappealthedenialofanextensiontotheHearingExaminerbyfilinganoticeofappealwiththeCityClerkwithinfourteen(14)calendardaysafterissuanceofthenoticeofthedenial.TheappealbeforetheHearingExaminershallfollowtheprovisionsofRMC4-8-110.E.TheownermayappealtheHearingExaminer’sdecisiontotheKingCountySuperiorCourtaccordingtotheprocedurescontainedinRCW34.05.510through34.05.598,asprovidedinRCW84.14.090(6),withinthirty(30)daysofnotificationbytheCitytotheownerofthedecision.J.FINALCERTIFICATE:1.Application:UponcompletionoftheconstructionasprovidedinthecontractbetweentheownerandtheCity,anduponissuanceofatemporary17 ORDINANCENO.6050certificateofoccupancy,orapermanentcertificateofoccupancyifnotemporarycertificateisissued,theownermayrequestafinalcertificateoftaxexemption.Theownershallpayafeeofonethousanddollars($1,000.00)andfilewiththeAdministratorsuchinformationastheAdministratormaydeemnecessaryorusefultoevaluateeligibilityforthefinalcertificate,whichshallataminimuminclude:a.Astatementofexpendituresmadewithrespecttoeachmulti-familyhousingunitandthetotalexpendituresmadewithrespecttotheentireproperty;b.Adescriptionofthecompletedworkandastatementofqualificationfortheexemption;c.Thetotalmonthlyrentortotalsaleamountofeachmulti-familyhousingunitrentedorsoldtodate;d.Theincomeofeachrenterhouseholdtodateatthetimeofinitialoccupancyandtheincomeofeachinitialpurchaserofowner-occupiedmultifamilyhousingunitstodateatthetimeofpurchase;e.Ifapplicable,astatementthattheprojectmeetstheaffordablehousingrequirementsinsubsectionC.1.cbiiofthisSection,alongwiththenumber,type,andspecificmulti-familyhousingunitsrentedorsoldtodate,asapplicable,tomeettheaffordablehousingrequirements;f.AnyadditionalinformationrequestedbytheCitypursuanttomeetinganyreportingrequirementsunderChapter84.14RCW;and18 ORDINANCENO.6050g.Astatementthattheworkwascompletedwithintherequiredthree(3)yearperiodoranyapprovedextension.2.Determination:Withinthirty(30)daysofreceiptofallmaterialsrequitedforafinalcertificate,theAdministratorshalldeterminewhetherthecompletedworkisconsistentwiththecontractbetweentheCityandowner,whetheralloraportionofthecompletedworkisqualifiedforexemptionunderthisSectionand,ifso,whichspecificimprovementssatisfytherequirementsofthisSection.3.FilingwithCountyAssessor:Forprojectsthatcomplywiththerequirementsofsubsection].1ofthisSection,theCityshallfileafinalcertificateoftaxexemptionwiththeKingCountyAssessorwithinten(10)daysoftheexpirationofthethirty(30)dayperiodprovidedinthepriorsubsection.4.Recording:TheAdministratorisauthorizedtocausetoberecorded,attheowner’sexpense,intherealpropertyrecordsoftheKingCountyRecorder’sOffice,thecontractwiththeCityrequiredundersubsectionF.2ofthisSection,asamendedundersubsectionHofthisSection,ifapplicable,and/orsuchotherdocument(s)aswillidentifysuchtermsandconditionsofeligibilityforexemptionunderthisSectionastheAdministratordeemsappropriateforrecording.5.Denial:TheAdministratorshallnotifytheownerinwritingthattheCitywillnotfileafinalcertificateif:(a)theAdministratordeterminesthattheprojectwasnotcompletedwithintherequiredthree(3)yearperiodoranyapprovedextension,orwasnotcompletedinaccordancewiththecontractbetweenthe19 ORDINANCENO.6050ownerandtheCityandtherequirementsofthisSection,ortheowner’spropertyisotherwisenotqualifiedforthelimitedexemptionunderthisSection;or(b)theownerandAdministratorcannotcometoanagreementontheallocationofthevalueoftheimprovementsallocatedtotheexemptportionoftheproject.6.Appeal:TheownermayappealtheAdministrator’sdecisiontotheHearingExaminerbyfilinganoticeofappealwiththeCityClerkwithinfourteen(14)calendardaysafterissuanceofthenoticeofthedenial.TheappealbeforetheHearingExaminershallfollowtheprovisionsforappealcontainedinRMC4-8-110.E.TheownermayappealtheHearingExaminer’sdecisiontotheKingCountySuperiorCourtaccordingtotheprocedurescontainedinRCW34.05.510through34.05.598,asprovidedinRCW84.14.090(6),withinthirty(30)daysofnotificationbytheCitytotheownerofthedecision.K.ANNUALCERTIFICATIONANDREPORT:Withinthirty(30)daysafterthefirstanniversaryofthedatetheCityissuedthefinalcertificateoftaxexemptionandeachyearthereafterforthedurationofthetaxexemptionperiod,thepropertyownershallfileanannualreportwiththeAdministrator.Foraprojectwithanyaffordablehousingunits,thepropertyownershallalsoprovidedocumentationaspartoftheannualreportthatathird-partyentityhasverifiedtheproject’scompliancewiththeaffordablehousingrequirementsinsubsectionsC.1.cbiiandD.2eofthisSection,asapplicable.Failuretosubmittheannualreportmayresultincancellationofthetaxexemption.Thecertificationshallcontainsuchinformationasrequiredby20 ORDINANCENO.6050Chapter84.14RCWandastheAdministratormaydeemnecessaryoruseful,andshallataminimumincludethefollowinginformation:1.Astatementofoccupancyandvacancyofthemulti-familydwellingunitsduringthetwelve(12)monthsendingwiththeanniversarydate;2.Acertificationthatthepropertyhasnotchangeduseand,ifapplicable,thatthepropertyhasbeenincompliancewiththeaffordablehousingrequirementsasdescribedinsubsectionC.1.cb.iiofthisSectionsincethedatetheCityissuedthefinalcertificateoftaxexemptionandthattheprojectcontinuestobeincompliancewiththecontractwiththeCityandtherequirementsofthisSection;3.AdescriptionofanyimprovementsorchangestothepropertymadeaftertheCityissuedthefinalcertificateoftaxexemption;4.Thetotalmonthlyrentofeachmulti-familyhousingunitrentedorthetotalsaleamountofeachmulti-familyhousingunitsoldtoaninitialpurchaserduringthetwelve(12)monthsendingwiththeanniversarydate;5.Theincomeofeachrenterhouseholdatthetimeofinitialoccupancyandtheincomeofeachinitialpurchaserofowner-occupiedmulti-familyhousingunitsatthetimeofpurchaseduringthetwelve(12)monthsendingwiththeanniversarydate;6.Theannualhouseholdincomeandhouseholdsizeforeachoftheaffordableunitsreceivingataxexemption;21 ORDINANCENO.6050Z&Ifapplicable,abreakdownofthenumber,size,andtypeofunitsproduced,andspecificmulti-familyhousingunitsrentedorsoldduringthetwelve(12)monthsendingwiththeanniversarydate,asapplicable,tomeettheaffordablehousingrequirementsinsubsectionC.1.c.iiofthisSection;and8Z.AnyadditionalinformationrequestedbytheCitypursuanttomeetinganyreportingrequirementsunderChapter84.14RCW.1.CANCELLATIONOFTAXEXEMPTION:1.Cancellation:IfatanytimetheAdministratordeterminesthat:(a)thepropertynolongercomplieswiththetermsofthecontractorwiththerequirementsofthisSection;(b)theuseofthepropertyischangedorwillbechangedtoausethatisotherthanresidential;(c)theprojectviolatesapplicablezoningrequirements,landusereguIationsorbuildingcoderequirements;or(d)thepropertyforanyreasonnolongerqualifiesforthetaxexemption,thetaxexemptionshallbecanceledandadditionaltaxes,interestLandpenaltiesimposedpursuanttoStatelaw.Upondeterminingthatataxexemptionshallbecanceled,theAdministratorshallnotifythepropertyownerbycertifiedmail,returnreceiptrequested.2.Appeal:ThepropertyownermayappealthedeterminationbyfilinganoticeofappealwiththeCityClerk,withinthirty(30)daysafterissuanceofthedecisionbytheAdministrator,specifyingthefactualandlegalbasisfortheappeal.TheappealbeforetheHearingExaminershallfollowtheproceduressetforthinRMC4-8-110.E.Attheappealhearing,allaffectedpartiesmaybeheardandall22 ORDINANCENO.6050competentevidencereceived.TheHearingExaminershallaffirm,modify,orrepealthedecisiontocanceltheexemptionbasedontheevidencereceived.TheHeatingExaminershallgivesubstantialweighttotheAdministrator’sdecisiontocanceltheexemption,andtheburdenofproofandtheburdenofovercomingtheweightaccordedtotheAdministrator’sdecisionshallbeupontheappellant.AnaggrievedpartymayappealtheHeatingExaminer’sdecisiontotheKingCountySuperiorCourtinaccordancewiththeproceduresinRCW34.05.510through34.05.598,asprovidedinRCW84.14.110(2),withinthirty(30)daysafterissuanceofthedecisionoftheHearingExaminer.3.ChangeofUse:litheownerintendstoconvertthemulti-familyhousingtoanotheruse,theownershallnotifytheAdministratorandtheKingCountyAssessorwithinsixty(60)daysofthechangeinuse.Uponsuchchangeinuse,thetaxexemptionshallbecanceledandadditionaltaxes,interestLandpenaltiesimposedpursuanttoStatelaw.M.EXTENSIONOFTAXEXEMPTION:PursuanttoRCW84.14.020(6),theAdministratormayapproveanextendedexemptionoftheprojectthatsatisfiedtheconditionsof,andutilizedtheexemptionasprovidedinsubsectionCofthisSectionfromadvalorempropertytaxationforuptoatotaloftwelve(12)successiveyearsbeginningJanuary1oftheyearimmediatelyfollowingthecalendaryearthattheoriginalexemptionexpires.23 ORDINANCENO.60501.Form:TheownerofpropertyapplyingforextendedexemptionunderthissubsectionshallsubmitanapplicationtotheAdministratoronaformestablishedbytheAdministrator.Theownershallverifythecorrectnessoftheinformationcontainedintheapplicationbyhis/hersignatureandaffirmationmadeunderpenaltyofperjuryunderthelawsoftheStateofWashington.TheapplicationshallcontainsuchinformationastheAdministratormaydeemnecessaryoruseful,whichataminimumshallinclude:a.astatementfromtheowneracknowledgingthepotentialtaxliabilitywhenthepropertyceasestobeeligibleforexemption,equivalenttosubsectionE.1.dofthisSection,andb.informationrequiredfortheFinalExemptionCertificatepursuanttosubsectionJ.1.cthroughi.1.fofthisSection,andc.InformationrequiredfortheannualreportpursuanttosubsectionK.1ofthisSection.2.Fee:AtthetimeofextensionapplicationunderthisSection,theownershallpaytotheCityanextensionapplicationfeeofonethousanddollars($1,000.00).3.Deadline:TheextensionapplicationshallbesubmittedtotheAdministratorbythedatesnotedbelow,unlessotherwiseapprovedbytheCouncil.24 ORDINANCENO.6050a.ForpropertieswithexemptionsscheduledtoexpireonDecember31,2021,nolaterthanthirty(30)daysfromtheeffectivedateoftheordinance;andb.ForpropertieswithexemptionsscheduledtoexpireafterDecember31,2021,nolaterthanAugust31oftheyearoftheoriginalexemptionexpires.N.ENDOFAFFORDABILITYREQUIREMENTS:1.Attheendofboththetenthandeleventhyearsofanextension,fortwelve(12)-yearextensionsoftheexemptionauthorizedundersubsectionMofthisSection,ownersmustprovidetenantsofrent-restrictedunitswithnotificationofintenttoprovidethetenantwithrentalrelocationassistanceasprovidedinsubsectionN.2.aofthisSection,below.2.Foranytwelve(12)-yearexemptionauthorizedundersubsectionC.1.c.iiofthisSectionaftertheeffectivedateofJuly25,2021,orforanytwelve(12)-yearexemptionextensionauthorizedundersubsectionMofthisSection,attheexpirationoftheexemptiontheownermustprovidetenantrelocationassistanceinanamountequaltoonemonth’srenttoaqualifiedtenantwithinthefinalmonthofthequalifiedtenant’slease.Tobeeligiblefortenantrelocationassistanceunderthissubsection,thetenantmustoccupyanincome-restrictedunitatthetimetheexemptionexpiresandmustqualifyasalow-incomehouseholdunderRCW84.14atthetimerelocationassistanceissought.a.Ifaffordabilityrequirementsconsistent,ataminimum,withthoserequiredundersubsectionC.1.c.iiofthisSectionremaininplacefortheunitafter25 ORDINANCENO.6050theexpirationoftheexemption,relocationassistanceinanamountequaltoonemonth’srentmustbeprovidedtoaqualifiedtenantwithinthefinalmonthofaqualifiedtenant’sleasewhooccupiesanincome-restrictedunitatthetimethoseadditionalaffordabilityrequirementsceasetoapplytotheunit.OM.SUNSETOFEXEMPTIONFORAPPLICATIONSFORCONDITIONALCERTIFICATESANDAPPLICATIONSFOREXEMPTIONEXTENSIONS:TheCityshallnotacceptnewapplicationsforconditionalcertificatesasprovidedinsubsectionEofthisSectionornewapplicationsforexemptionextensionsasprovidedinsubsectionMofthisSectionafterthecloseofbusinessonDecember31,20242021,unlessextendedbyCityCouncilaction.TheCityshallprocess(1)pendingcompleteapplicationsforaconditionalcertificatesubmittedbeforethecloseofbusinessonDecember31,20242021,and(2)pendingcompleteapplicationsforanextensionsubmittedbeforethecloseofbusinessonDecember31,2024,and13)applicationsforanextensionoftheconditionalcertificateand/orafinalcertificatereceivedafterthecloseofbusinessonDecember31,20242021,asprovidedinsubsectionsDthroughJofthisSection.SubsectionsCandJthroughLofthisSectionshallcontinuetoapplytoallpropertiesthathavebeenorareissuedafinalcertificateoftaxexemptionorextensionunderthisSectionuntilexpiration,terminationLorcancellationofthetaxexemption.IncompleteapplicationsforconditionalcertificatesasofthecloseofbusinessonDecember31,20242021,shallbedeniedand/orreturnedtoowners.26 ORDINANCENO.6050SECTIONIII.Ifanysection,subsection,sentence,clause,phraseorworkofthisordinanceshouldbeheldtobeinvalidorunconstitutionalbyacourtorcompetentjurisdiction,suchinvalidityorunconstitutionalitythereofshallnotaffecttheconstitutionalityofanyothersection,subsection,sentence,clause,phrase,orwordofthisordinance.SECTIONIV.Thisordinanceshallbeinfullforceandeffectfive(5)daysafterpublicationofasummaryofthisordinanceintheCity’sofficialnewspaper.Thesummaryshallconsistofthisordinance’stitle.PASSEDBYTHECITYCOUNCILthis13thdayofDecember,2021.Jaso21XSetC,Y’IerkAPPROVEDBYTHEMAYORthis13thdayofDecember,2021.Approvedastoform:ShaneMoloney,CityAttorneyDateofPublication:12/16/2021(Summary)ORD:2194:11/30/21ArPavone,Mayor27