The URL can be used to link to this page

Home My WebLink AboutOrd 2707 - Multi-Family Tax Exemption (MFTE)City of Tukwila Washington Ordinance No. 23 (1.1i-- AN � AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 2462, AS CODIFIED IN VARIOUS SECTIONS OF TUKWILAMUNICIPAL CODE (TMC) CHAPTER 3.90, AND ORDINANCE NOS. 2538 §1 AND 2665 §2, AS CODIFIED IN TMC SECTION 3.90.060; ESTABLISHING TMC SECTION 3.90.120; TO EXPAND THE RESIDENTIAL TARGETED AREA, AMEND ELIGIBILITY CRITERIA, AND ALLOW A NEW APPLICATION PERIOD FOR MULTI -FAMILY RESIDENTIAL PROPERTY TAX EXEMPTIONS; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, chapter 84.14 RCW authorizes cities to provide for exemptions from ad valorem property taxation on qualified multi -family housing developments located in designated residential targeted areas in order to encourage more desirable and convenient residential units in urban centers; and WHEREAS, the King County Countywide Planning Policies (KCCPP), developed pursuantto the Washington State Growth Management Act, have established standards for cities to plan for their share of regional growth and affordable housing; and WHEREAS, in order to establish a multi -family property tax exemption program, the City must designate one or more residential targeted areas within which qualified projects may apply for tax exemption; and WHEREAS, the Southcenterarea includes the Tukwila South Overlay zone, which has capacity for new development, and the Tukwila Urban Center zone, which is one of the region's designated urban growth centers and has access to high capacity transit; and WHEREAS, the City intends to assist in achieving its residential growth targets and goals in the City's Housing and Urban Center Element of the City's Comprehensive Plan by encouraging new multi -family housing in the Southcenterarea; and CC:\Legislative Development\Establish ingSouthcenterMFTE8-16-23 Derek Speck Review by Andy Youn Page 1 of 6 WHEREAS, the Southcenterarea currently lacks sufficient available, desirable, and convenientresidential housing available to all ages, including affordable housing, to meet the needs of the public who would be likely to live and work in the area, if affordable, desirable, attractive, and livable places were available; and WHEREAS, thousandsofpeoplewhowork in the Southcenterarea are unableto live neartheirjobs dueto a lack of qualityworkforce housing and, as a result, these individuals commute to and from work, resulting in additional vehicles on regional roadways and adding more greenhouse gas emissions to the atmosphere; and WHEREAS, the tax incentive provided bychapter 84.14 RCW encourages increased residential opportunities, including affordable housing opportunities, and will stimulatethe construction of new multi -family housing within the residential targeted area and will benefit and promote public health, safety, and welfare by encouraging residential development and redevelopment of that area of the City; and WHEREAS, a limited multi -family property tax exemption program in the Southcenter area may assist in allowing workers to live closer to their jobs; and WHEREAS, the City's multi -family property tax incentive regulations were adopted by the Tukwila City Council in Ordinance No. 2462 on December 1, 2014, and amended by the City Council on May 15, 2017 by Ordinance No. 2538 and on December 6, 2021 by Ordinance No. 2665; and WHEREAS, the City Council passed Resolution No. 2075 on July 24, 2023, stating its intent to expand the boundaries of the residential targeted area within the Tukwila Urban Center zone to include all of the Tukwila Urban Center zone and designate the Tukwila Urban Center zone and the Tukwila South Overlay zone as the "Southcenter residential targeted area," for the purposes of establishing a multi -family property tax exemption program per chapter 84.14 RCW; and WHEREAS, on August 14, 2023, the Tukwila City Council, after giving public notice consistent with RCW 84.14.040, held a public hearing to consider adoption of the proposed ordinance; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Designation of Residential Targeted Area. The City Council hereby designates the boundaries of the Tukwila Urban Center zone and the Tukwila South Overlay zone, as shown on maps attached hereto and incorporated herein by reference as ExhibitA and as further specified in Tukwila Municipal Code (TMC) Section 3.90.030, as the Southcenter residential targeted area. Section 2. TMC Section 3.90.010 Amended. Ordinance No. 2462 §3, as codified at Tukwila Municipal Code (TMC) Section 3.90.010, "Purpose," is hereby amended to read as follows: CC:\Legislative Development\EstablishingSouthcenterMFTE8-16-23 Derek Speck Review by Andy Youn Page 2 of 6 3.90.010 Purpose The purposes of this chapter are: 1. To encourage increased residential opportunities, including affordable housing opportunities, and to stimulate the construction of new multi -family housing within the Southcenter area. 2. To accomplish the planning goals required under the Washington State Growth Management Act, chapter 36.70A RCW, and the King County Countywide Planning Policies as implemented by the City's Comprehensive Plan. Section 3. TMC Section 3.90.020 Amended. Ordinance No. 2462 §4, as codified at Tukwila Municipal Code (TMC) Section 3.90.020, "Definitions," is hereby amended to read as follows: 3.90.020 Definitions As used in this chapter, unless the context or subject matter clearly requires otherwise, the words or phrases defined in this section shall have the indicated meanings: A. "Administrator" shall mean the Economic Development Administrator of the City of Tukwila or his/her designee. B. "Affordable housing" means residential housing that is rented by a person or household whose monthly housing costs, including utilities otherthan telephone, do not exceed 30 percent 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 low- or moderate -income households. C. "Household" means a single person, family, or unrelated persons living together. D. "Low-income household" means a single person, family, or unrelated persons living together whose adjusted income is at or below 80 percent of the median family income, adjusted for family size, for the county where the project is located, as reported by the United States Department of Housing and Urban Development. E. "Moderate -income household" means a single person, family, or unrelated persons living together whose adjusted income is more than 80 percent but is at or below 115 percent of the median family income, adjusted for family size, for the county where the project is located, as reported by the United States Department of Housing and Urban Development. F. "Multi -family housing" means a building having four or more dwelling units not designed or used as transient accommodations and not including hotels and motels. Multi -family units may result from new construction or rehabilitation or conversion of vacant, underutilized, or substandard buildings to multi -family housing. G. "Owner" means the property owner of record. H. "Owner occupied" means a residential u nitthat is rented for fewer than 30 days per calendar year. CC:\Legislative Development\Establish ingSouthcenterMFTE8-16-23 Derek Speck Review by Andy Youn Page 3 of 6 1. "Permanent residential occupancy" means multi -family housing that is either owner occupied or rented for periods of at least one month. J. "Residential targeted area" means the area within the boundary as designated by TMC Section 3.90.030. K. "Urban Center" means a compact, identifiable districtwhere urban residents may obtain a variety of products and services. An urban center must contain: 1. Several existing or previous, or both, business establishments that may include but are not limited to shops, offices, banks, restaurants, governmental agencies; 2. Adequate public facilities including streets, sidewalks, lighting, transit, domestic water, and sanitary sewer systems; and 3. A mixture of uses and activities that may include housing, recreation, and cultural activities in association with either commercial or office or both uses. Section 4. TMC Section 3.90.030 Amended. Ordinance No. 2462 §5, as codified at Tukwila Municipal Code (TMC) Section 3.90.030, "Residential Targeted Area – Criteria – Designation – Recession," is hereby amended to read as follows: 3.90.030 Residential Targeted Area — Criteria — Designation — Recession A. The boundaries of the residential targeted area are the Tukwila Urban Center zone and the Tukwila South Overlay zone, as shown in Figure 3-1. B. If a part of any legal lot is within the residential targeted area, then the entire lot shall be deemed to lie within such residential targeted area. Section 5. TMC Section 3.90.060 Amended. Ordinance Nos. 2462 §8, 2538 §1, and 2665 §2, as codified at TMC Section 3.90.060, "Application Procedure – Fee," are hereby amended to read as follows: 3.90.060 Application Procedure—Fee A. The owner of property applying for exemption underthis chapter shall submitan application to the Administrator, on a form established by the Administrator. The owner shall verify the contents of the application by oath or affirmation. The application shall contain the following information: 1. A brief written description of the project, including phasing ifapplicable, that states which units are proposed for the exemption and whether the request is for 8 or 12 years. 2. Preliminary schematic site and floor plans of the multi -family units and the structure(s) in which they are proposed to be located. 3. A table of all units in the project listing unit number, square footage, unit type (studio, one bedroom, etc.), and indicating those proposed for the exemption. CC:\Legislative Development\EstablishingSouthcenterMFTE8-16-23 Derek Speck Review by Andy Youn Page 4 of 6 4. If applicable, information describing how the applicantwill comply with the affordability requirements in TMC Sections 3.90.040 and 3.90.050. 5. A statement from the owner acknowledging the potential tax liability when the property ceases to be eligible for exemption under this chapter. 6. Any other information deemed necessary or useful by the Administrator. B. At the time of application underthis section, the applicant shall pay to the City an initial application fee of $1,000 or as otherwise established by ordinance or resolution. If the application is denied, the City may retain that portion of the application fee attributable to its own administrative costs and refund the balance to the applicant. C. The complete application shall be submitted any time before, but no later than, the date the certificate of occupancy is issued under Title 16 of the Tukwila Municipal Code. D. The City will no longer accept applications after December 31, 2028, or if the total number of proposed units in pending and approved applications exceeds 800. Section 6. TMC Section 3.90.070 Amended. Ordinance No. 2462 §9, as codified at TMC Section 3.90.070, "Application Review — Issuance of Conditional Certificate — Denial — Appeal," subparagraph A, is hereby amended to read as follows: 3.90.070 Application Review— Issuance of Conditional Certificate — Denial — Appeal A. The Administrator shall approve or deny an application under this chapter within 90 days of receipt of the complete application. The Administrator shall use the criteria listed in TMC Chapter 3.90 and Chapter 84.14 RCW to review the proposed application. If the application is approved, the owner shall enter into a contract with the City regarding the terms and conditions of the project and eligibility for exemption underthis Chapter. The Mayor shall be the authorized signatory to enter into the contract on behalf of the City. Following execution of the contract, the Administrator shall issue a conditional certificate of acceptance of tax exemption. The certificate must contain a statement by the Administrator that the property has complied with the required finding indicated in RCW 84.14.060. The conditional certificate shall expire 18 months from the date of approval if the applicant has not submitted a complete building permit application (as determined by the City) and shall expire 3 years from the date of approval unless an extension is granted as provided in this chapter. Section 7. Regulations Established. TMC Section 3.90.120 is hereby established to read as follows: 3.90.120 Reporting The Administrator shall maintain a list of all pending and approved applications and shall notify the City Council: (1) each time the list is updated; and (2) at least six months prior to the time limit established in TMC Section 3.90.060.D. CC:\Legislative Development\EstablishingSouthcenterMFTE8-16-23 Derek Speck Review by Andy Youn Page 5 of 6 Section 8. Corrections by City Clerk or Code Reviser Authorized. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/su bsection nu mbering. Section 9. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 10. Effective Date. This ordinance ora summary thereof shall be published in the official newspaperof the City and shall take effect and be in full force five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this Z151- day of AlVSA-- , 2023. ATTEST/AUTHENTICATED: DocuSigned by: Claisft 02FLaLtifti 8867848 CB594E7... Christy O'Flaherty, MMC, City Clerk Allan Ekberg, a or APPROVED AS TO FORM BY: Filed with the City Clerk: .3 -15'23 DocuSigned by: L SaAAL 5E499CA4165E452... Office of the City Attorney Passed by the City Council: 8 -at -Z3 Published: $ -2-4- 23 Effective Date: 8' - 21 - Z 3 Ordinance Number: zit* Exhibit A: Figure 3-1, "City of Tukwila multi -family property tax exemption residential targeted area — Southcenter Residential Targeted Area." CC:\Legislative Development\Establishing SouthcenterMFTE8-16-23 Derek Speck Review by Andy Youn Page 6 of 6 Southcenter Residential Targeted Area Vra..--..11111ionid.. 11 li!I!tL.1 1 I1n7r Ire Final ratimieur,-; , no 0 7m NI up_ i.ions ilk Idital 21111trli"�1!� F. C :111111 p11111 :Ma jC :C ::1_►!uu C=` ]'4 �� quill• ir D !N! , :,ICJ .lI■. tiva 1 i EPii- Oi: ••.•-i. IIIA,, uI�11O ha ESI/� �al�ri 1:11! �•� 10 ii ��fll�ii. �i IM mg Now Con - NO 1= Ma.. ..._IIII.- w B_ r, lincente, 156th z ro ngacres Micken eights = S 17InSI Pow r Part S 1 'NO, sr Scania Canaan!, School V.n Tukwila South Overlay M. Bona* Company S 19Oth St 1 to c l• -111r rl J 1'a.lh JI S I93rd St S 186th PI,. S 78BIh SI Parcels Zoning Overlays I I City Limits - - TUC Streets TUC Zoning Pond Regional Center IIIII Transit Oriented Development City of Renton, Bureau of Land Managt Commercial Corridor INCRE Workplace City of Tukwila Public Notice of Ordinance Adoption for Ordinance 2707. On August 21, 2023 the City Council of the City of Tukwila, Washington, adopted the following ordinance, the main points of which are summarized by title as follows: Ordinance 2707: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 2462, AS CODIFIED IN VARIOUS SECTIONS OF TUKWILA MUNICIPAL CODE (TMC) CHAPTER 3.90, AND ORDINANCE NOS. 2538 §1 AND 2665 §2, AS CODIFIED IN TMC SECTION 3.90.060; ESTABLISHING TMC SECTION 3.90.120; TO EXPAND THE RESIDENTIAL TARGETED AREA, AMEND ELIGIBILITY CRITERIA, AND ALLOW A NEW APPLICATION PERIOD FOR MULTI -FAMILY RESIDENTIAL PROPERTY TAX EXEMPTIONS; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. The full text of this ordinance will be provided upon request. Christy O'Flaherty, MMC, City Clerk Published Seattle Times: August 24, 2023