Loading...
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. I 203 STAFF SPONSOR: NoRA GIERLOFF �ORI(',]N,\].A(31?Nt).,\DA'1'1,": 11/28/16 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: W: Word Processing\Ordinances\Fee reductions for affordable housing 10-18-16 NG:bjs Page 1 of 5 211 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. W: Word Processing\Ordinances\Fee reductions for affordable housing 10-18-16 NG:bjs Page 2 of 5 212 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. W: Word Processing \Ordinances \Fee reductions for affordable housing 10 -18 -16 NG:bjs Page 3 of 5 213 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. W: Word Processing\0rdinancesTee reductions for affordable housing 10-18-16 NG:bjs Page 4 of 5 214 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: W: Word Processing\Ordinances\Fee reductions for affordable housing 10-18-16 NG:bjs Page 5 of 5 215 216 011"'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 W: Word Processing\Ordinances\ResidentiaI impact fee deferral 10-20-16 BG:bjs Page 1 of 15 217 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 W: Word Processing\Ordinances\ResidentiaI impact fee deferral 10-20-16 BG:bjs Page 2 of 15 218 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. W: Word Processing\Ordinances\ResidentiaI impact fee deferral 10-20-16 BG:bjs Page 3 of 15 219 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. W: Word Processing\Ordinances\ResidentiaI impact fee deferral 10-20-16 BG:bjs Page 4 of 15 220 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). W: Word Processing\Ordinances\ResidentiaI impact fee deferral 10-20-16 BG:bjs Page 5 of 15 221 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. W: Word Processing\Ordinances\ResidentiaI impact fee deferral 10-20-16 BG:bjs Page 6 of 15 222 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. W: Word Processing \Ordinances \Residential impact fee deferral 10 -20 -16 BG:bjs Page 7 of 15 223 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. W: Word Processing\Ordinances\ResidentiaI impact fee deferral 10-20-16 BG:bjs Page 8 of 15 224 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: W: Word Processing\Ordinances\ResidentiaI impact fee deferral 10-20-16 BG:bjs Page 9 of 15 225 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: W: Word Processing\Ordinances\ResidentiaI impact fee deferral 10-20-16 BG:bjs Page 10 of 15 226 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. W: Word Processing\Ordinances\ResidentiaI impact fee deferral 10-20-16 BG:bjs Page 11 of 15 227 911. "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 W: Word Processing\Ordinances\ResidentiaI impact fee deferral 10-20-16 BG:bjs Page 12 of 15 228 • • • • • �• ••. 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: W: Word Processing \Ordinances \Residential impact fee deferral 10 -20 -16 BG:bjs Page 13 of 15 229 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. W: Word Processing\Ordinances\ResidentiaI impact fee deferral 10-20-16 BG:bjs Page 14 of 15 230 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: W: Word Processing \Ordinances \Residential impact fee deferral 10 -20 -16 BG:bjs Page 15 of 15 231 232 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