HomeMy WebLinkAboutCOW 2016-11-28 Item 4F - Ordinances - Affordable Housing: Development and Land Use Fees / Impact Fee Deferral Process for Single Family Residential ConstructionCOUNCIL AGENDA SYNOPSIS
---- ----- ------------------- - -- - -- Initials
Meelin Date
19
Prepared ! y
Y,4E's review
Council review
11/28/16
NG
❑ Resolution
Atg Date
Z Ordinance
MtS Date 1219116
12/05/16
NG
IF
SPONSOR ❑ Council ❑ Mayor E].HR Z DCD [].Finance ❑ Eire ❑ TS [:] P&R [:] Police [:] PIVI
SPONSOR'S Reductions in City permit and impact fees could be used as an incentive to promote the
SUMMARY construction of affordable housing. Recent State legislation requires that jurisdictions
allow for deferral of impact fees for single family houses. The Council is being asked to
consider and approve these ordinances.
R i,N71 1 WED BY ❑ cow mtg. Z CA&P Cmte ❑ F&S Cmte ❑ Transportation Cmte
❑ Utilities Cmte ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm.
DATE: 11/14/16 COMMITTEE CHAIR: QUINN
RECOMMENDATIONS:
SPONSOR /ADMIN. Department of Community Development
COmm"17"I" Unanimous Approval; Forward to Committee of the Whole
COST IMPACT / FUND SOURCE
AMOUNT BUDGETED APPROPRIATION REQUIRED
i
i
RECORD OF COUNCIL ACTION
i 771
11119:4 LVIN III, 101:1,TAY-11 111ME
ITEM NO.
4.F.
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203
STAFF SPONSOR: NoRA GIERLOFF
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A(,, I :ND,\ I,n,"m Ti,i,j.,j Affordable Housing Fee Reductions
CA"TE "GORY Z Dist-ussion
Mt g Date 11128116
❑ Motion
Mtg Date
❑ Resolution
Atg Date
Z Ordinance
MtS Date 1219116
[:]BidAward
ft g Date e
F-1 Public kfeariq
Alig Date
F-1 Other
Mt g Date
SPONSOR ❑ Council ❑ Mayor E].HR Z DCD [].Finance ❑ Eire ❑ TS [:] P&R [:] Police [:] PIVI
SPONSOR'S Reductions in City permit and impact fees could be used as an incentive to promote the
SUMMARY construction of affordable housing. Recent State legislation requires that jurisdictions
allow for deferral of impact fees for single family houses. The Council is being asked to
consider and approve these ordinances.
R i,N71 1 WED BY ❑ cow mtg. Z CA&P Cmte ❑ F&S Cmte ❑ Transportation Cmte
❑ Utilities Cmte ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm.
DATE: 11/14/16 COMMITTEE CHAIR: QUINN
RECOMMENDATIONS:
SPONSOR /ADMIN. Department of Community Development
COmm"17"I" Unanimous Approval; Forward to Committee of the Whole
COST IMPACT / FUND SOURCE
AMOUNT BUDGETED APPROPRIATION REQUIRED
Fund Source:
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
11/28/16
12/5/16
MTG. DATE
ATTACHMENTS
11/28/16
Informational Memorandum dated 11/3/16
A. Existing Impact Fee Regulations
B. Draft Development Fee Reduction Ordinance
C. Draft Impact Fee Reduction and Deferral Ordinance
Minutes from the Community Affairs and Parks Committee meeting of 11/14/16
j 12/5/16
j
203
204
City of Tukwila
Allan Ekberg, Mayor
TO: Community Affairs and Parks Committee
FROM: Jack Pace, DCD Director
Bob Giberson, PW Director
BY: Nora Gierloff, Deputy DCD Director
CC: Mayor Ekberg
DATE: November 3, 2016
SUBJECTS: Fee Reductions for Affordable Housing Developments and Impact Fee
Deferrals
ISSUES
Should certain Tukwila permit and impact fees be reduced to encourage development of
affordable housing?
Recent State legislation requires that cities and counties create an impact fee deferral process
for single family construction.
BACKGROUND
During the Comprehensive Plan outreach we heard repeatedly about the unmet need for
affordable family-sized housing and housing for those with very low incomes. Tukwila could
reduce certain permit fees to incentivize the development of these housing types.
In 2015, the state legislature enacted ESB 5923, which requires counties, cities, and towns to
adopt a deferral system for the collection of impact fees for new single-family residential
construction. Upon developer request, payment of impact fees would be delayed until the time
of:
1. Final inspection;
2. Issuance of the certificate of occupancy or equivalent certification; and/or
3. The closing of the first sale of the property.
DISCUSSION
Affordable Housing Development Fee Reduction
Some communities have adopted exemptions, waivers or reductions of charges normally
assessed to residential development when those units are made affordable to low-income
owners or renters. Examples include discounted building or planning fees, or reduced sewer
and water connection fees. This is a way for the jurisdiction to reduce costs and increase
feasibility for affordable housing projects without spending existing general fund money, though
it would reduce permit revenue.
Affordability is defined as monthly housing costs that do not exceed 30% of the household's
monthly income. It is usually expressed as a percentage of the King County median income.
205
INFORMATIONAL MEMO
Page 2
2016 King County Median Income by Household Size
1 Person
Proposal
Unit Size
[2Person
[3Person
[4Person 5 Person
6 Person
$63,210
$72,240
$81,270
$90,300 1 $97,524
F$104,748
i
Proposal
Unit Size
Affordability Target
Fee Reduction
2 or more bedrooms
80%
40%
2 or more bedrooms
60%
60%
Any size
50%
80%
• Certain development and land use permit fees for the entitlement, construction, and
substantial improvement of dwelling units may be reduced by the Public Works and /or
DCD Director when requested by the property owner prior to permit submittal.
• If the project contains a mix of dwelling units that qualify for fee reduction and units that
do not qualify due to unit size or expense, the fee reduction shall be pro -rated to reflect
the proportion of qualifying low- income units in the project.
• If more than 15% of the total project square footage is devoted to commercial use the
fee reduction shall be pro -rated by the commercial percentage.
• If converted to market rate housing within 10 years of the issuance of the certificate of
occupancy, the full applicable permit fees at the time of conversion shall be paid to the
city.
Options:
A. Waive all development fees for all types of affordable housing projects.
B. Add or exclude additional permit types from the reduction process
C. Allow a full waiver of development fees for projects at 30% or lower income levels.
D. Allow different fee reductions for ownership verses rental housing projects
E. Do not reduce development fees for affordable housing
Affordable Housing Impact Fee Reductions
Cities and Counties may provide for impact fee reductions (as authorized by RCW
82.02.060(3)), to encourage the development of low- income housing. Tukwila currently allows
exemptions from Fire and Parks impact fees for low- income housing developments, but does
not take advantage of the provision in the RCWs that allows for reductions of up to 80% of
impact fees without reimbursement from the City's general fund. Exemptions for traffic impact
fees are not currently allowed. Impact fee reductions would reduce funds available for the
infrastructure to accommodate growth.
20e: 016 Info MennosTee Reduction InfoMemo CAP 11- 14.docx
INFORMATIONAL MEMO
Page 3
Proposal:
Unit Size
Affordability Target
Impact Fee Reduction
2 or more bedrooms
80%
40%
2 or more bedrooms
60%
60%
Any size
50%
80%
Low-income housing developments may be partially exempted from Parks, Fire and
Traffic impact fees at the discretion of the Public Works Director when requested by the
property owner prior to permit submittal.
• Submittal of a fiscal impact analysis of the effect of impact fees upon the proposed low-
income housing and how exempting such housing from impact fees would contribute to
the creation of low-income housing is required.
The developer must record a covenant per RCW 82.02.060 (3) that prohibits using the
property for any purpose other than for low-income housing for a period of at least 10
years. At a minimum, the covenant must address price restrictions and household
income limits for the low-income housing, and that if the property is converted to a use
other than for low-income housing within 10 years, the property owner must pay the
applicable impact fees in effect at the time of conversion.
Options:
A. Exempt all types of affordable housing projects from 80% of impact fees
B. Allow a full exemption of impact fees for projects at 30% or lower income levels and
reimburse 20% of the impact fee from public funds as required by RCW 82.02.060
C. Do not include an exemption for Traffic impact fees
D. Allow different fee reductions for ownership verses rental housing projects
E. Do not exempt affordable housing from any impact fees
Single Family Impact Fee Deferral
The City desires to encourage the development of new single family housing so in accordance
with State law is allowing flexibility on the timing of parks, fire and traffic impact fee payments.
Proposal:
• Deferral applications must be made in writing at the earlier of preliminary plat or building
permit application.
• The term of the deferral is 18 months from the date of building permit issuance or the
final inspection, certificate of occupancy, or first sale whichever occurs first.
• An applicant seeking a deferral must grant and record a lien against the property in favor
of the municipality in the amount of the deferred impact fee.
• Fees may be deferred for up to twenty houses per applicant per year.
Options:
• None. Required by state law.
M2016 Info MernosTee Reduction InfoMerno CAP 11-14.docx 207
INFORMATIONAL MEMO
Page 4
FINANCIAL IMPACT
Fee reductions would reduce the permit revenue to the City associated with the development of
affordable housing projects. The amount of this reduction would depend on the waiver types
approved, the number of units and the affordability target of the given project.
As an example, the Homestead Community Land Trust single family project on the Riverton
United Methodist Church site proposes 34 family-sized homes at 80% median income
affordability. Under the proposal above they would be eligible for an approximate reduction of
$100,000 in DCD and PW development permit fees, $19,400 in Park Impact fees, $12,500 in
Fire Impact fees, and $13,800 in Traffic Impact fees from their total permit cost of $371,500.
In addition to Tukwila's fees, the project would be subject to an additional $875,000 in water,
sewer, and electrical connection fees from other agencies. The construction cost for the houses
and site work is approximately $4,565,000. Land costs would be a separate negotiation with the
Church. Without the proposed reduction, Tukwila's fees would amount to approximately 6% of
total project costs.
The impact on Tukwila's revenue would vary depending on the type of fee reductions approved
and the type of projects developed in Tukwila each year. DCD averages over two million dollars
annually in permit revenue of which a minor percentage is related to residential development.
Traffic impact fees for both residential and commercial development have averaged $113,752
annually over the past three years.
RECOMMENDATION
Council is being asked to select from the policy options above and consider ordinances with any
amendments at the November 28, 2016 Committee of the Whole meeting and subsequent
December 5, 2016 Regular Meeting.
ATTACHMENTS
A. Existing Impact Fee Regulations
B. Draft Development Fee Reduction Ordinance
C. Draft Impact Fee Reduction and Deferral Ordinance
208 W2016 Info MernosTee Reduction InfoMerno CAP 11-14.docx
Attachment A
TMC CHAPTER 16.26 - FIRE IMPACT FEES
16.26.120 Exemptions
6. Low - income housing developed by individuals, nonprofit corporations, or a housing authority may be exempted
from impact fees at the discretion of City staff subject to:
a. Submittal of a fiscal impact analysis of the effect of impact fees upon low- income housing and how
exempting such housing from impact fees would forward the goals for low- income housing in the City and
King County;
b. Submittal of adequate documentation showing that housing will remain available for low- income persons for
a 10 -year period of time at affordable rents; and
c. In the case of owner - occupied dwellings, submittal of adequate documentation showing that such housing
will be sold or leased at affordable rates to low- income households for a period of 10 years.
d. The impact fee for exempt development under this subsection shall be calculated as provided by this
ordinance and paid with public funds. Such payments may be made by including such amounts in the
public share of the system improvements undertaken within the City for fire protection services and facilities.
TMC CHAPTER 16.28 - PARKS IMPACT FEES
16.28.120 Exemptions
6. Low - income housing developed by individuals, nonprofit corporations, or a housing authority may be exempted
from impact fees at the discretion of City staff subject to:
a. Submittal of a fiscal impact analysis of the effect of impact fees upon low- income housing and how exempting
such housing from impact fees would forward the goals for low- income housing in the City and King County;
b. Submittal of adequate documentation showing that the housing will remain available for low- income persons
for a 10 -year period of time at affordable rents; and
c. In the case of owner - occupied dwellings, submittal of adequate documentation showing that such housing will
be sold or leased at affordable rates to low- income households for a period of 10 years.
d. The impact fee for exempt development under this subsection shall be calculated as provided by this
ordinance and paid with public funds. Such payments may be made by including such amounts in the
public share of the system improvements undertaken within the City for parks services and facilities.
RCW 82.02.060 Impact fees —Local ordinances — Required provisions.
The local ordinance by which impact fees are imposed:
(3) May provide an exemption from impact fees for low- income housing. Local governments that grant exemptions
for low- income housing under this subsection (3) may either: Grant a partial exemption of not more than eighty
percent of impact fees, in which case there is no explicit requirement to pay the exempted portion of the
fee from public funds other than impact fee accounts; or provide a full waiver, in which case the remaining
percentage of the exempted fee must be paid from public funds other than impact fee accounts. An exemption
for low- income housing granted under subsection (2) of this section or this subsection (3) must be conditioned
upon requiring the developer to record a covenant that, except as provided otherwise by this subsection,
prohibits using the property for any purpose other than for low- income housing. At a minimum, the covenant
must address price restrictions and household income limits for the low- income housing, and that if the property
is converted to a use other than for low- income housing, the property owner must pay the applicable impact fees
in effect at the time of conversion. Covenants required by this subsection must be recorded with the applicable
county auditor or recording officer. A local government granting an exemption under subsection (2) of this
section or this subsection (3) for low- income housing may not collect revenue lost through granting an exemption
by increasing impact fees unrelated to the exemption. A school district who receives school impact fees must
approve any exemption under subsection (2) of this section or this subsection (3);
For purposes of this section, "low- income housing" means housing with a monthly housing expense, that is no
greater than thirty percent of eighty 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.
209
210
Attachment B
10 M Gl G Tf
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, ESTABLISHING NEW REGULATIONS
TO REDUCE DEVELOPMENT AND LAND USE FEES FOR
CERTAIN - AFFORDABLE HOUSING PROJECTS, TO BE
CODIFIED IN TUKWILA MUNICIPAL CODE CHAPTERS 16.04,
16.54, AND 18.88; PROVIDING FOR SEVERABILITY; AND
ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, while updating its Comprehensive Plan the City determined that Tukwila
has a shortage of housing affordable to larger families and-those households earning less
than the King County median income; and
WHEREAS, the housing shortage is especially acute for those households earning less
than 30% of the King County median income; and
WHEREAS, the City wishes to incentivize the development of affordable housing by
reducing City development and land use fees for selected projects; and
WHEREAS, the ordinance amendments are procedural in nature, and are therefore
categorically exempt from the State Environmental Policy Act (SEPA) review pursuant to
WAC 197-11-800(19);
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
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Section 1. Regulations Established. Tukwila Municipal Code (TMC) Section
16.04.260, "Affordable Housing Fee Reductions," is hereby established to read as follows:
16.04.260 Affordable Housing Fee Reductions
Development permit fees for the construction or substantial improvement of dwelling units
may be reduced by the DCD Director. Development permits include building, mechanical,
electrical and plumbing permits. "Substantial improvement" is a repair, reconstruction or
rehabilitation of a building or structure the cost of which exceeds 50 percent of the building
or structure's assessed value. The property owner must request the reduction in writing
prior to permit submittal and when all of the following conditions are met:
Fee reduction table.
Unit Size
Affordability Target
Fee Reduction
2 or more bedrooms
80%2
40%
2 or more bedrooms
60%2
60%
Any size
50%2
80%
Units to be sold or rented to a person or household whose monthly housing
costs, including utilities other than telephone, do not exceed 30% of the
household's monthly income.
2 Percentage of King County Median family income adjusted for family size as
reported by the U.S. Department of Housing and Urban Development.
2. If the project contains a mix of dwelling units that qualify for fee reduction per
the table in subparagraph 1 above and units that do not qualify due to unit size or
expense, the fee reduction shall be pro-rated to reflect the proportion of low-income units
in the project.
3. If converted to market rate housing within 10 years of the issuance of the
Certificate of Occupancy, the full applicable permit fees at the time of conversion shall be
paid to the City.
4. If the project contains commercial tenant space that occupies more than 15%
of the building, along with dwelling units that qualify for fee reduction per the table in
subparagraph 1 above, the fee reduction shall be pro-rated to reflect the proportion of the
total building square footage occupied by the low-income units. Commercial spaces that
occupy less than 15% of the building are considered accessory and will not affect the fee
reduction.
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Section 2. Regulations Established. TMC Section 16.54.110, "Affordable Housing
Fee Reductions," is hereby established to read as follows:
16.54.110 Affordable Housing Fee Reductions
Type C permit fees for the construction of dwelling units may be reduced by the Public
Works Director when requested in writing by the property owner prior to permit submittal
and when all of the following conditions are met:
Fee reduction table.
Unit Size
Affordability Target
Fee Reduction
2 or more bedrooms
80%2
40%
2 or more bedrooms
60%2
60%
Any size
50%2
80%
' — Units to be sold or rented to a person or household whose monthly housing
costs, including utilities other than telephone, do not exceed 30% of the
household's monthly income.
2 — Percentage of King County Median family income adjusted for family size as
reported by the U.S. Department of Housing and Urban Development.
2. If the project contains a mix of dwelling units that qualify for fee reduction per
the table in subparagraph 1 above and units that do not qualify due to unit size or
expense, the fee reduction shall be pro -rated to reflect the proportion of low- income units
in the project.
3. If converted to market rate housing within 10 years of the issuance of the
Certificate of Occupancy, the full applicable permit fees at the time of conversion shall be
paid to the City.
4. If the project contains commercial tenant space that occupies more than 15%
of the building, along with dwelling units that qualify for fee reduction per the table in
subparagraph 1 above, the fee reduction shall be pro -rated to reflect the proportion of the
total building square footage occupied by the low- income units. Commercial spaces that
occupy less than 15% of the building are considered accessory and will not affect the fee
reduction.
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Section 3. Regulations Established. TIVIC Section 18.88.020, "Affordable Housing
Fee Reductions," is hereby established to read as follows:
18.88.020 Affordable Housing Fee Reductions
Design review, reasonable use exception, platting, planned residential development,
SEPA, conditional use and shoreline permit fees for the entitlement of dwelling units may
be reduced by the DCD Director when requested in writing by the property owner prior to
permit submittal and when all of the following conditions are met:
Fee reduction table.
Unit Size
Affordability Target
Fee Reduction
2 or more bedrooms
80%2
40%
2 or more bedrooms
60%2
60%
Any size T
50%2
80%
Units to be sold or rented to a person or household whose monthly housing
costs, including utilities other than telephone, do not exceed 30% of the
household's monthly income.
2— Percentage of King County Median family income adjusted for family size as
reported by the U.S. Department of Housing and Urban Development.
2. If the project contains a mix of dwelling units that qualify for fee reduction per
the table in subparagraph 1 above and units that do not qualify due to unit size or
expense, the fee reduction shall be pro-rated to reflect the proportion of low-income units
in the project.
3. If converted to market rate housing within 10 years of the issuance of the
Certificate of Occupancy, the full applicable permit fees at the time of conversion shall be
paid to the City.
4. If the project contains commercial tenant space that occupies more than 15%
of the building, along with dwelling units that qualify for fee reduction per the table in
subparagraph 1 above, the fee reduction shall be pro-rated to reflect the proportion of the
total building square footage occupied by the low-income units. Commercial spaces that
occupy less than 15% of the building are considered accessory and will not affect the fee
reduction.
Section 4. Corrections by City Clerk or Code Reviser. 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/subsection numbering.
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Section 5. Severabillity. 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 6. Effective Date. This ordinance or a summary thereof shall be published
in the official newspaper of 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 — day of 2016.
ATTEST /AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
Rachel B. Turpin, City Attorney
Allan Ekberg, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
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216
011"'al
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, ESTABLISHING REGULATIONS
FOR A RESIDENTIAL IMPACT FEE DEFERRAL, TO BE
CODIFIED IN TUKWILA MUNICIPAL CODE CHAPTERS 9.48,
16.26 AND 16.28; AMENDING AND/OR ADDING SECTIONS
IN EACH OF THE AFOREMENTIONED CHAPTERS
RELATING TO EXEMPTIONS AND DEFINITIONS (AMENDING
ORDINANCE NOS. 2366 §1 (PART), 2365 §1 (PART), 2305 §1
AND 2111 §1 (PART) AS DELINEATED; PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City of Tukwila ("City") is authorized by Chapter 82.02 RCW to
require new growth and development within the City to pay a proportionate share of the
cost of new facilities to serve such new growth and development through the
assessment of impact fees; and
WHEREAS, pursuant to such authority and the police powers of the City, the City
has enacted Chapters 9.48, 16.26 and 16.28 of the Tukwila Municipal Code to establish
such impact fees; and
WHEREAS, the current impact fee provisions provide flexibility for developers by
staggering some payments for various impact fees, which creates an administrative
burden on City staff; and
WHEREAS, the State recently amended RCW 82.02.050, requiring that all
counties, cities, and towns provide a mechanism for which impact fees for single-family
detached and single-family attached residential construction may be deferred to either
final inspection, issuance of a Certificate of Occupancy or equivalent certification, or the
closing of the first sale of the property; and
WHEREAS, the City desires to encourage new growth and development in the City,
to ease the financial burden on individual home builders, and to promote economic
recovery in the construction industry, and finds that adopting an impact fee deferral
mechanism provides the needed flexibility on the timing of impact fee payments and is
in the public interest; and
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WHEREAS, City staff has proposed the addition of a new Tukwila Municipal Code
section entitled "Exemptions" (Section 9.48.120) for transportation impact fees, while
similar sections currently exist in Tukwila Municipal Code Chapters 16.26, "Fire Impact
Fees," and 16.28, "Parks Impact Fees"; and
WHEREAS, the ordinance amendments are procedural in nature, and are therefore
categorically exempt from the State Environmental Policy Act (SEPA) review pursuant
to WAC 197-11-800(19);
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. TMC Section 9.48.020 Amended. Ordinance Nos. 2305 §1 and 2111
§1 (part), as codified at Tukwila Municipal Code (TMC) Section 9.48.020, "Definitions,"
is hereby amended to read as follows:
9.48.020 Definitions
The words and terms contained in this chapter shall have the following meanings for the
purposes of this chapter, unless the context clearly requires otherwise. Terms or words
not defined herein shall be defined pursuant to RCW 82.02.090 when given their usual
and customary meaning.
1. The "Act" means the Growth Management Act, Chapter 17, Laws of 1990,
First Extraordinary Session, Chapter 36.70A RCW et seq., and Chapter 32, Laws of 1991,
First Special Session, as now in existence or hereinafter amended.
2. "Building permit" means an official document or certification of the City of
Tukwila issued by the City's building official which authorizes the construction, alteration,
enlargement, conversion, reconstruction, remodeling, rehabilitation, erection, placement,
demolition, moving, or repair of a building or structure.
3. "City" means the City of Tukwila, Washington.
4. "Development" means the construction, reconstruction, conversion, structural
alteration, relocation or enlargement of any structure that requires a building permit.
5. "Development activity" means any construction of a building or structure that
creates additional demand and need for transportation facilities.
6. "Development approval" means any written authorization from the City, which
authorizes the commencement of the "development activity."
97. "Fee payer" is a person, corporation, partnership, an incorporated association
or governmental agency, municipality, or similar entity commencing a land development
activity, which requires a building permit and creates a demand for additional facilities.
P8. "Impact fee" means the payment of money imposed by the City on
development activity pursuant to this chapter as a condition of granting development
approval, in order to pay for the transportation facilities needed to serve new growth and
development that is a proportionate share of the cost of the capital facilities that is used for
facilities that reasonably benefit new development. Impact fees are independent of a
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permit fee, an application fee, a concurrency test fee, and the administrative fee for
collecting and handling impact fees or cost of reviewing independent fee calculations.
79. "Letter encumbered" means to reserve, set aside, or earmark the impact fees
in order to pay for commitments, contractual obligations, or other liabilities incurred for the
provision of transportation facilities.
10. "Low-income housing" means housing where monthly costs, including
utilities other than telephone, do not exceed 30% of the resident's household monthly
income and where household monthly income must be 80 percent or less of the King
County Median family income adiusted for family size as reported by the U.S.
Department of Housing and Urban Development.
4011. "Owner," means the owner of record of real property, as found in the
records of King County, Washington, or a person with an unrestricted written option to
purchase property, provided, that if the real property is being purchased under a recorded
real estate contract, the purchaser shall be considered the owner of the property.
4412. "Proportionate fair share" means that portion of the cost for transportation
facility improvements that are reasonably related to the service demands and needs of
new development.
Section 2. Regulations Established. TIVIC Section 9.48.125, "Exemptions," is
hereby established to read as follows:
9.48.125 Exemptions
A. The impact fees are generated from the formula for calculating the fees as set
forth in this chapter. The amount of the impact fees is determined by the information set
forth in the Public Works Fee Schedule adopted by resolution of the City Council and
related documents. All development activity located within the City shall be charged a
transportation impact fee, provided that the following exemptions shall apply.
B. The following shall be exempt from transportation impact fees:
1. Replacement of a structure with a new structure having the same use, at
the same site and with the same gross floor area when such replacement is within 12
months of demolition or destruction of the previous structure.
2. Alteration, expansion, or remodeling of an existing dwelling or structure
where no new units are created and the use is not changed.
3. Construction of an accessory residential structure..
4. Miscellaneous improvements including, but not limited to, fences, walls,
lls-,
swimming pools and signs that do not impact the transportations ystem.
5. Demolition of or moving an existing structure within the City from one site
to another.
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6. Transportation impact fees for the construction of low-income housing may
be reduced at the discretion of the Public Works Director when requested by the
property owner in writing prior to permit submittal and subject to the following criteria:
Submittal of a fiscal impact analvsis of how a reduction in impact fees
for the project would contribute to the creation of low-income housing
b. Fee reduction table.
Unit Size
Affordability Target'
Fee Reduction
2 or more bedrooms
80%2
40%
2 or more bedrooms
60%2
60%
Any size T
50%2
80%
Units to be sold or rented to a person or household whose monthly housing
costs, including utilities other than telephone, do not exceed 30% of the
household's monthly income.
2 Percentage of King County Median family income adjusted for family size as
reported by the U.S. Department of Housing and Urban Development.
c. The developer must record a covenant per RCW 82.02.060 (3) that
prohibits using the property for any purpose other than for low-income housing at the
original income limits for a period of at least 10 years. At a minimum, the covenant
must address price restrictions and household income limits for the low-income housing,
and that if the property is converted to a use other than low-income housing within 10
vears, the propertv owner must pav the Citv the applicable impact fees in effect at the
time of conversion.
7. Change of Use. A development permit for a change of use that has less
impact than the existing use shall not be assessed a transportation impact fee.
8. A fee payer required to pay for system improvements pursuant to RCW
43.21C.060 shall not be required to pay an impact fee for the same improvements
under this ordinance.
Section 3. Regulations Established. TIVIC Section 9.48.130, "Residential Impact
Fee Deferral," is hereby established to read as follows:
9.48.130 Residential Impact Fee Deferral
A. Purpose. The purpose of this chapter is to comply with the requirements of
RCW 82.02.050, as amended by ESB5923, Chapter 241, Laws of 2015, to provide an
impact fee deferral process for single-family residential construction in order to promote
economic recovery in the construction industry.
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ID • • M Olin
1. The provisions of this chapter shall apply to all impact fees established and
adopted by the City pursuant to Chapter 82.02 RCW, including transportation system
impact fees assessed under Tukwila Municipal Code Chapter 9.48.
2. Subiect to the limitations imposed in the Tukwila Municipal Code, the
provisions of this chapter shall apply to all building permit applications for single-family
detached and single-family attached residential construction. For the purposes of this
chapter, an "applicant" includes an entity that controls the named applicant, is controlled
by the named applicant, or is under common control with the named applicant.
C. Impact Fee Deferral.
1. Deferral Request Authorized. Applicants for single-family attached or
single - family_ detached residential building permits may request to defer payment of
required impact fees until the sooner of:
a. final inspection; or
b. the closing of the first sale of the property occurring after the issuance
of the applicable building permit;
which request shall be granted so long as the requirements of this chapter are
satisfied.
2. Method of Request. A request for impact fee deferral shall be declared at
the time of preliminary plat application (for platted development) or building permit
application (for non - platted development) in writing on a form or forms provided by the
City, along with applicable application fees.
3. Calculation of Impact Fees. The amount of impact fees to be deferred
under this chapter shall be determined as of the date the request for deferral is
submitted.
D. Deferral Term. The term of an impact fee deferral granted under this chapter
may not exceed 18 months from the date the building permit is issued ("Deferral Term').
If the condition triggering payment of the deferred impact fees does not occur prior to
the expiration of the Deferral Term, then full payment of the impact fees shall be due on
the last date of the Deferral Term.
E. Deferred Impact Fee Lien.
1. Applicant's Duty to Record Lien. An applicant requesting a deferral under
this chapter must grant and record a deferred impact fee lien, in an amount equal to the
deferred impact fees, against the property in favor of the City in accordance with the
requirements of RCW 82.02.050(3)(c).
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2. Satisfaction of Lien. Upon receipt of final payment of all deferred impact
fees for the property, the City shall execute a release of deferred impact fee lien for the
property. The property owner at the time of the release is responsible, at his or her own
expense, for recording the lien release.
F. Limitation on Deferrals. The deferral entitlements allowed under this chapter
shall be limited to the first 20 single - family residential construction building permits per
applicant, as identified by contractor registration number or other unique identification
number, per year.
Section 4. TMC Section 16.26.030 Amended. Ordinance No. 2365 §1 (part), as
codified at TIVIC Section 16.26.030, "Definitions," is hereby amended to read as follows:
16.26.030 Definitions
Terms or words not defined herein shall be defined pursuant to RCW 82.02.090 when
given their usual and customary meaning. For the purposes of this ordinance, unless
the context or subject matter clearly requires otherwise, the words or phrases defined in
this section shall have the following meanings:
1. "Building permit" means an official document or certification of the City of
Tukwila issued by the City's building official which authorizes the construction,
alteration, enlargement, conversion, reconstruction, remodeling, rehabilitation, erection,
placement, demolition, moving, or repair of a building or structure.
2. "City" means the City of Tukwila, Washington, County of King.
3. "Development activity" means any construction, reconstruction, or
expansion of a building, structure, or use, or any changes in use of a building or
structure, or any changes in the use of land, requiring development approval.
4. "Development approval" means any written authorization from the City,
which authorizes the commencement of the "development activity."
5. "Encumber" means to reserve, set aside, or earmark the fire impact fees in
order to pay for commitments, contractual obligations, or other liabilities incurred for the
provision of fire protective services.
6. "Fee payer" is a person, corporation, partnership, an incorporated
association or governmental agency, municipality, or similar entity commencing a land
development activity that requires a building permit and creates a demand for additional
fire capital facilities.
407. "Fire protection facilities" means all publicly owned apparatus and
buildings within the City that are used for fire protection and/or emergency response
and aid.
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78. "Impact fee" means the payment of money imposed by the City on
development activity pursuant to this ordinance as a condition of granting development
approval in order to pay for the fire facilities needed to serve growth and development
that is a proportionate share of the cost of fire capital facilities used for facilities that
reasonably benefit development. Impact fees do not include reasonable permit fees,
application fees, administrative fees for collecting and handling fire impact fees, or the
cost of reviewing independent fee calculations.
9. "Low- income housing" means housing where monthly costs, including
utilities other than telephone, do not exceed 30% of the resident's household monthly
income and where household monthly income must be 80 percent or less of the King
County Median family income adjusted for family size as reported by the U.S.
Department of Housing and Urban Development.
910. "Owner" means the owner of record of real property, as found in the
records of King County, Washington, or a person with an unrestricted written option to
purchase property; provided, that if the real property is being purchased under a
recorded real estate contract, the purchaser shall be considered the owner of the
property.
911. "Proportionate share" means that portion of the cost for fire facility
improvements that are reasonably related to the service demands and needs of
development.
Section 5. TMC Section 16.26.120 Amended. Ordinance No. 2365 §1 (part), as
codified at TMC Section 16.26.120, "Exemptions," is hereby amended to read as
follows:
16.26.120 Exemptions
A. The fire impact fees are generated from the formula for calculating the fees as
set forth in this ordinance chapter. The amount of the impact fees is determined by the
information contained in the adopted fire department master plan and related
documents, as appended to the City's Comprehensive Plan. All development activity
located within the City shall be charged a fire impact fee, provided that the following
exemptions shall apply. Any develep
teGhniGaI!y GGrnplete building permit appliGation prier to the effective date of this
ordinanGe shall be exempt from the payment of fire imn�nf f .,os
B. The following shall be exempt from fire impact fees:
1. Replacement of a structure with a new structure having the same use, at
the same site, and with the same gross floor area, when such replacement is within 12
months of demolition or destruction of the previous structure.
2. Alteration, expansion, or remodeling of an existing dwelling or structure
where no new units are created and the use is not changed.
3. Construction of an accessory residential structure.
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4. Miscellaneous improvements including, but not limited to, fences, walls,
swimming pools, and signs that do not create an increase in demand for fire services.
Demolition of or moving an existing structure within the City from one site
to another.
6. Low inGOrn• hGUsing developed by individuals, nORPFGfit GGFPOFations, • a
nv,=-&sna+=,a! fnzxx C=nc nf +'aic a!icA--riz,+ta,-& ■
i I i Ill W NO- I ON
..... ...... ......
6. Fire impact fees for the construction of low-income housing may be
reduced at the discretion of the Fire Chief when requested by the property owner in
writing prior to permit submittal and subject to the following criteria:
a. Submittal of a fiscal impact analysis of how a reduction in impact fees
for the proiect would contribute to the creation of low-income housing;
b. Fee reduction table.
Unit Size
Affordability _jill- �et
Fee Reduction
2 or more bedrooms
80%2
40%
2 or more bedrooms
60%2
60%
AEy_�size
50% 2
80%
Units to be sold or rented
to a person or household whose monthly housing
costs, including utilities other than telephone, do not exceed 30% of the
household's monthly income.
2 Percentage of King County Median family income adjusted for family size as
reported by the U.S.
Department of Housing and Urban Development.
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c. The developer must record a covenant per RCW 82.02.060 (3) that
prohibits using the property for any purpose other than for low-income housing at the
original income limits for a period of at least 10 years. At a minimum, the covenant
must address price restrictions and household income limits for the low-income housing,
and that if the property is converted to a use other than low-income housing within 10
years, the property owner must pay the City the applicable impact fees in effect at the
time of conversion.
7. Change of Use. A development permit for a change of use that has less
impact than the existing use shall not be assessed a fire impact fee.
8. A fee payer required to pay for system improvements pursuant to RCW
43.21C.060 shall not be required to pay an impact fee for the same improvements
under this ordinance.
9. A fee payer installing a residential fire sprinkler system in a single family
home shall not be required to pay the fire operations portion of the impact fee. The
exempted fire operations impact fee shall not include the proportionate share related to
the delivery of emergency medical services.
Section 6. Regulations Established. TIVIC Section 16.26.125, "Residential
Impact Fee Deferral," is hereby established to read as follows:
16.26.125 Residential Impact Fee Deferral
A. Purpose. The purpose of this chapter is to comply with the requirements of
RCW 82.02.050, as amended by ESB5923, Chapter 241, Laws of 2015, to provide an
impact fee deferral process for single - family residential construction in order to promote
economic recovery in the construction industry.
1-30 =A. 0 M
1. The provisions of this chapter shall apply to all impact fees established and
adopted by the City pursuant to Chapter 82.02 RCW, including impact fees for fire
facilities assessed under Tukwila Municipal Code Chapter 16.26.
2. Subhect to the limitations imposed in the Tukwila Municipal Code, the
provisions of this chapter shall apply to all building permit applications for single- family
detached and single- family attached residential construction. For the purposes of this
chapter, an "applicant" includes an entity that controls the named applicant, is controlled
bV the named applicant, or is under common control with the named applicant.
C. Impact Fee Deferral.
1. Deferral Request Authorized. Applicants for single- family attached or
single-family detached residential building permits may request to defer payment of
required impact fees until the sooner of:
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a. final inspection; or
b. the closing of the first sale of the property occurring after the issuance
of the applicable building permit--
which request shall be granted so long as the requirements of this chapter are
satisfied.
2. Method of Request. A request for impact fee deferral shall be declared at
the time of preliminary plat application (for platted development) or building permit
application (for non-platted development) in writing on a form or forms provided by the
City, along with applicable application fees.
3. Calculation of Impact Fees. The amount of impact fees to be deferred
under this chapter shall be determined as of the date the request for deferral is
submitted.
D. Deferral Term. The term of an impact fee deferral granted under this chapter
may not exceed 18 months from the date the building permit is issued ("Deferral Term').
If the condition triggering payment of the deferred impact fees does not occur prior to
the expiration of the Deferral Term, then full payment of the impact fees shall be due on
the last date of the Deferral Term.
E. Deferred Impact Fee Lien.
1. Applicant's Duty to Record Lien. An applicant requesting a deferral under
this chapter must grant and record a deferred impact fee lien, in an amount equal to the
deferred impact fees, against the property in favor of the City in accordance with the
requirements of RCW 82.02.050(3)(c).
2. Satisfaction of Lien. Upon receipt of final payment of all deferred impact
fees for the property, the City shall execute a release of deferred impact fee lien for the
property. The property owner at the time of the release is responsible, at his or her own
expense, for recording the lien release.
F. Limitation on Deferrals. The deferral entitlements allowed under this chapter
shall be limited to the first 20 single-family residential construction building permits per
applicant, as identified by contractor registration number or other unique identification
number, per year.
Section 7. TMC Section 16.28.030 Amended. Ordinance No. 2366 §1 (part), as
codified at TIVIC Section 16.28.030, "Definitions," is hereby amended to read as follows:
16.28.030 Definitions
Terms or words not defined herein shall be defined pursuant to RCW 82.02.090 when
given their usual and customary meaning. For the purposes of this ordinance, unless
the context or subject matter clearly requires otherwise, the words or phrases defined in
this section shall have the following meanings:
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1. "Building permit" means an official document or certification of the City of
Tukwila issued by the City's building official which authorizes the construction,
alteration, enlargement, conversion, reconstruction, remodeling, rehabilitation, erection,
placement, demolition, moving, or repair of a building or structure.
2. "City" means the City of Tukwila, Washington, County of King.
3. "Development activity" means any construction, reconstruction, or
expansion of a building, structure, or use, or any changes in use of a building or
structure, or any changes in the use of land, requiring development approval.
4. "Development approval" means any written authorization from the City,
which authorizes the commencement of the "development activity."
5. "Encumber" means to reserve, set aside, or earmark the parks impact fees
in order to pay for commitments, contractual obligations, or other liabilities incurred for
the provision of parks services.
6. "Fee payer" is a person, corporation, partnership, an incorporated
association or governmental agency, municipality, or similar entity commencing a land
development activity that requires a building permit and creates a demand for additional
parks capital facilities.
7. "Impact fee" means the payment of money imposed by the City on
development activity pursuant to this ordinance as a condition of granting development
approval in order to pay for the parks facilities needed to serve growth and development
that is a proportionate share of the cost of parks capital facilities used for facilities that
reasonably benefit development. Impact fees do not include reasonable permit fees,
application fees, administrative fees for collecting and handling parks impact fees, or the
cost of reviewing independent fee calculations.
8. "Low-income housing" means housing where monthly costs, including
utilities other than telephone, do not exceed 30% of the resident's household monthly
income and where household monthly income must be 80 percent or less of the King
County Median family income adjusted for family size as reported by the U.S.
Department of Housing and Urban Development.
,99. "Owner" means the owner of record of real property, as found in the
records of King County, Washington, or a person with an unrestricted written option to
purchase property; provided, that if the real property is being purchased under a
recorded real estate contract, the purchaser shall be considered the owner of the
property.
10. "Parks facilities" means those capital facilities identified as park and
recreational facilities in the City's Capital Facilities Plan.
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911. "Proportionate share" means that portion of the cost for parks facility
improvements that are reasonably related to the service demands and needs of
development.
Section 8. TMC Section 16.28.120 Amended. Ordinance No. 2366 §1 (part), as
codified at TIVIC Section 16.28.120, "Exemptions," is hereby amended to read as
follows:
16.28.120 Exemptions
A. The parks impact fees are generated from the formula for calculating the fees
as set forth in this ordinanGe chapter. The amount of the impact fees is determined by
the information contained in the adopted parks master plan and related documents, as
appended to the City's Comprehensive Plan. All development activity located within the
City shall be charged a parks impact fee, provided that the following exemptions shall
apply. Any develep-rnent activity or project whiGh has submitted a teGhniGally GOMple
building .1 1 1 "cation prier to the effeGtive date of this eFdinanGe shall be exempt,
from the payment of paFks irnpaGt fees.
B. The following shall be exempt from parks impact fees:
1. Replacement of a structure with a new structure having the same use, at
the same site, and with the same gross floor area, when such replacement is within 12
months of demolition or destruction of the previous structure.
2. Alteration, expansion, or remodeling of an existing dwelling or structure
where no new units are created and the use is not changed.
3. Construction of an accessory residential structure.
4. Miscellaneous improvements including, but not limited to, fences, walls,
swimming pools, and signs that do not create an increase in demand for parks services.
5. Demolition of or moving an existing structure within the City from one site
to another.
6. Low-inGGme housing develeped by individuals, RenpFOfit GOrporatioRS, or-a
housing autherity may be exempted from impact fees at the discretion of City staff
subjeGt tO-.L
a. Submittal of a fisGal impact analysis of the effeGt of impaGt fees Upon
10W "RGOme housing and how exempting Such housing from impaGt fees would fepw
the goals for low inGOrne hGUSiRg in the City and King COURty;
b Submittal of adequate dOGUmentation showing that the housing
remain available foF low inG9me-persons f--,. a4O-year-W ed of time at afferdable-�,�
and
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• • • • • �• ••. 22-13MMMM-n i M MMM a 0 •M-
6. Parks impact fees for the construction of low- income housing may be
reduced at the discretion of the Parks and Recreation Director when requested by the
property owner in writing prior to permit submittal and subject to the following criteria:
a. Submittal of a fiscal impact analysis of how a reduction in impact fees
for the project would contribute to the creation of low- income housing;
b. Fee reduction table.
Unit Size
Affordability Target
Fee Reduction
2 or more bedrooms
80%2
40%
2 or more bedrooms
60%2
60%
Any size
50% 2
80%
1 — Units to be sold or rented to a person or household whose monthly housing
costs including utilities other than telephone, do not exceed 30% of the
household's monthly income.
2 — Percentage of King County Median family income adjusted for family size as
reported by the U.S. Department of Housing and Urban Development.
c. The developer must record a covenant per RCW 82.02.060 (3) that
prohibits using the property for any pose other than for low- income housing at the
original income limits for a period of at least 10 years. At a minimum, the covenant
must address price restrictions and household income limits for the low- income housing,
and that if the property is converted to a use other than low- income housing within 10
vears. the DrODertv owner must pav the City the applicable impact fees in effect at the
time of conversion.
7. Change of Use. A development permit for a change of use that has less
impact than the existing use shall not be assessed a parks impact fee.
8. A fee payer required to pay for system improvements pursuant to RCW
43.21C.060 shall not be required to pay an impact fee for the same improvements
under this ordinance.
Section 9. Regulations Established. TMC Section 16.28.125, "Residential
Impact Fee Deferral," is hereby established to read as follows:
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16.28.125 Residential Impact Fee Deferral
A. Purpose. The purpose of this chapter is to comply with the requirements of
RCW 82.02.050, as amended by ES135923, Chapter 241, Laws of 2015, to provide an
impact fee deferral process for single-family residential construction in order to promote
economic recovery in the construction industrv.
B. Applicability.
The provisions of this chapter shall aDDIV to all impact fees established and
adopted by the City pursuant to Chapter 82.02 RCW, including parks impact fees
assessed under Tukwila Municipal Code Chapter 16.28.
Subiect to the limitations imposed in the Tukwila Municipal Code. the
provisions of this chapter shall apply to all building permit applications for single-family
detached and single- family attached residential construction. For the purposes of this
chapter, an "applicant" includes an entity that controls the named applicant, is controlled
bV the named applicant, or is under common control with the named applicant.
C. Impact Fee Deferral.
1. Deferral Request Authorized. Applicants for single-family attached or
single-family detached residential building permits may request to defer payment of
required impact fees until the sooner of:
a. final inspection; or
b. the closing of the first sale of the property occurring after the issuance
of the applicable building permit.-
which request shall be granted so long as the requirements of this chapter are
satisfied.
2. Method of Request. A request for impact fee deferral shall be declared at
the time of preliminary plat application (for platted development) or building permit
application (for non-platted development) in writing on a form or forms provided by the
CitV, along with applicable application fees.
3. Calculation of Impact Fees. The amount of impact fees to be deferred
under this chapter shall be determined as of the date the request for deferral is
submitted.
D. Deferral Term. The term of an impact fee deferral granted under this chapter
may not exceed 18 months from the date the building permit is issued ("Deferral Term").
If the condition triggering payment of the deferred impact fees does not occur prior to
the expiration of the Deferral Term, then full payment of the impact fees shall be due on
the last date of the Deferral Term.
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E. Deferred Impact Fee Lien.
1. Applicant's Duty to Record Lien. An applicant requesting a deferral under
this chapter must grant and record a deferred impact fee lien, in an amount equal to the
deferred impact fees against the property in favor of the City in accordance with the
requirements of RCW 82.02.050(3)(c).
2. Satisfaction of Lien. Upon receipt of final payment of all deferred impact
fees for the property, the City shall execute a release of deferred impact fee lien for the
property. The property owner at the time of the release is responsible, at his or her own
expense, for recording the lien release.
F. Limitation on Deferrals. The deferral entitlements allowed under this chapter
shall be limited to the first 20 single- family residential construction building permits per
applicant as identified by contractor registration number or other unique identification
number, per year.
Section 10. Corrections by City Clerk or Code Reviser. 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 /subsection numbering.
Section 11. 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 12. Effective Date. This ordinance or a summary thereof shall be
published in the official newspaper of 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 day of 12016.
ATTEST /AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
Rachel B. Turpin, City Attorney
Allan Ekberg, Mayor
Filed with the City Clerk:_
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
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Community Affairs and Parks Committee Minutes ....................................................................... ....................November14, 2016
C. Resolution: Study of the Landscape Conservation and Local Infrastructure Program (LCLIP)
As directed by the Committee at its August 8, 2016 meeting, staff returned with a resolution that
would initiate the process to implement LCLIP by formally expressing the City's interest.
Adoption of the resolution will give direction to staff to continue conversations with Forterra
and King County regarding LCLIP but does not commit the City to future implementation.
UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 28, 2016 COMMITTEE OF THE WHOLE.
D. Affordable Housing _Legislation
Ordinance: Reducing Fees for Certain Affordable Housing Projects
Staff is seeking Council approval of an ordinance that would establish regulations to allow the
DCD Director to reduce development and land use fees for certain affordable housing projects
as follows:
Unit Size
Afford ability Target
Fee Reduction
2 or more bedrooms
80% King County Median
40%
2 or more bedrooms
60% King County Median
60%
Any size
50% King County Median
80%
The types of fees that could be reduced include design review, reasonable use exception,
platting, planned residential development, SEPA, conditional use, and shoreline. Fee
reductions will be pro -rated to accommodate mixed rate units or commercial tenant space.
UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 28, 2016 COMMITTEE OF THE WHOLE.
Ordinance: Providing an Impact Fee Deferral Process for Single- Family Residential Construction
Staff is seeking Council approval of an ordinance that would adopt a deferral system for the
collection of impact fees for new single- family construction as required by state law. Upon
developer request, payment of park, fire, and traffic impact fees would be delayed until final
inspection, issuance of certificate of occupancy, or closi ng of the fi rst sale. The ordinance would
also establish fee reductions for affordable housing projects at the same ratios described
above. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 28, 2016 COMMITTEE OF THE
WHOLE.
E. Discussion regarding Expansion of the Multi - Family Tax Exemption Program (MFTE)
Staff is seeking Committee input into continuation, expansion, or revision of the city's Multi -
Family Tax Exemption (MFTE) program. The existing program was adopted to incentivize
residential development in the Southcenter District and will sunset on December 31, 2016. The
Council should consider household income levels, household size, geographic areas, and built
environment goals. The Committee requested that staff return in 2017 with a proposal for
Council review. UNANIMOUS APPROVAL. FORWARD TO OCTOBER 17, 2016 REGULAR
CONSENTAGENDA.
233