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HomeMy WebLinkAboutReg 2016-12-05 Item 5G - Ordinances - Affordable Housing Legislation: Development and Land Use Fees / Residential Impact Fee DeferralCOUNCIL AGENDA SYNOPSIS ---------------------------------- Initiab Meeliq Dale Pte ared by Mpfors review Council review 11/28/16 NG [:] Resolution Mtg Date Z Ordinance Mt ,g Date 1215116 12/05/16 NG [:1 Other M1 ,g Date SPONSOR ❑ Council ❑ Mayor ❑ I-JR Z DCD E]Finance ❑ -Fire ❑ TS E]P& R ❑ Police ❑ PIV 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. RI \,irwr'li) iw ❑ cow mtg. Z CA&P Cmte ❑ F&S Cmte ❑ Transportation Cmte ❑ Utilities Cmte ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 11/14/16 COMMITTEE CI-LAIR: QUINN RECOMMENDATIONS: SPONSOR /ADMIN. Department of Community Development Comm'T"Tll Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE Exl)l�-NDI'FUIUERi.,,QLJIIZI:"Il) AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments.- MTG. DATE RECORD OF COUNCIL ACTION 11/28/16 ITEM NO. 5.G. ISTAFFSPONSoR: NORA GIERLOFF ORIG ANAL A(-; F'Nix\ DATL,": 11/28/16_ A(,',i,'NI)A 1'rrm Trri,h, Affordable Housing Fee Reductions CATEGORY Z Discussion Mtg Date 11128116 [:] motion Mtg Date [:] Resolution Mtg Date Z Ordinance Mt ,g Date 1215116 ❑ BidAward MIS Dale ❑.Public.Hearing All ,g Date [:1 Other M1 ,g Date SPONSOR ❑ Council ❑ Mayor ❑ I-JR Z DCD E]Finance ❑ -Fire ❑ TS E]P& R ❑ Police ❑ PIV 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. RI \,irwr'li) iw ❑ cow mtg. Z CA&P Cmte ❑ F&S Cmte ❑ Transportation Cmte ❑ Utilities Cmte ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 11/14/16 COMMITTEE CI-LAIR: QUINN RECOMMENDATIONS: SPONSOR /ADMIN. Department of Community Development Comm'T"Tll Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE Exl)l�-NDI'FUIUERi.,,QLJIIZI:"Il) AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments.- MTG. DATE RECORD OF COUNCIL ACTION 11/28/16 Forward to next Regular Meeting 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 12/5/16 Ordinances 317 318 City of Tukwila Washington Ordinance No. 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 �Gw, 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: 1. 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. 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 Page 2 of 5 NG:bjs 320 Section 2. Regulations Established. TIVIC 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 500/0 280%�� 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. 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 Page 3 of 5 NG:bis 321 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 50%2 0-0—/0 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. 2. If the project contains a mix of dwelling units that qualify for fee reduction per the table in subparagraph I 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\Ordinances\Fee reductions for affordable housing 10-18-16 Page 4 of 5 NG:bjs 322 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 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 5 323 324 City of Tukwila Washington Ordinance No. 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\Residential impact fee deferral 11 -29 -16 Page 1 of 14 BG:bjs 325 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. TIVIC 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." 7. "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. 8. "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 11-29-16 Page 2 of 14 BG:bjs 326 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. 9. "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 adjusted for family size as reported by the U.S. Department of Housing and Urban Development. 11. "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. 12. "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, swimming pools and signs that do not impact the transportation system. 5. Demolition of or moving an existing structure within the City from one site to another. W: Word Processing\Ordinances\ResidentiaI impact fee deferral 11 -29 -16 BG:bjs Page 3 of 14 327 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: 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 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 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 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 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 industry. W: Word Processing\Ordinances\ResidentiaI impact fee deferral 11 -29 -16 Page 4 of 14 BG:bjs 328 M. 11�, - ..� 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. Subject 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 11 -29 -16 Page 5 of 14 BG:bjs 329 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 TMC 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. 7. "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. 8. "Impact fee" means the payment of money imposed by the City on development activity pursuant to this ordinance as a condition of granting development W: Word Processing\Ordinances\ResidentiaI impact fee deferral 11-29-16 Page 6 of 14 BG:bjs 330 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. 10. "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. 11. "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 TIVIC 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 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. 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. 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. 5. Demolition of or moving an existing structure within the City from one site 'to another. W: Word Processing\Ordinances\ResidentiaI impact fee deferral 11-29-16 Page 7 of 14 BG:bjs 331 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 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 % NO 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 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 ES135923, Chapter 241, Laws of 2015, to provide an W: Word Processing\Ordinances\ResidentiaI impact fee deferral 11-29-16 Page 8 of 14 BG:bjs 332 impact fee deferral process for single-family residential construction in order to promote economic recovery in the construction industry. B. Applicability. 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. Subject 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 W: Word Processing\Ordinances\ResidentiaI impact fee deferral 11 -29 -16 Page 9 of 14 BG:bjs 333 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 TMC 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: 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 W: Word Processing\Ordinances\ResidentiaI impact fee deferral 11-29-16 Page 10 of 14 BG:bjs 334 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. 9. "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. 11. "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 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. 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. W: Word Processing\OrdinanGes\ResidentiaI impact fee deferral 11 -29 -16 BG:bjs Page 11 of 14 335 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. 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 1 Fee Reduction 2 or more bedrooms 80%2 40% 2 or more bedrooms 60%2 60% Any size 50%2 -0/0 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 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 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. TIVIC Section 16.28-125, "Residential Impact Fee Deferral," is hereby established to read as follows: W: Word Processing\Ordinances\ResidentiaI impact fee deferral 11 -29 -16 Page 12 of 14 BG:bjs 336 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 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. B. Applicability. 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 parks impact fees assessed under Tukwila Municipal Code Chapter 16.28. 2. Subject 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. W: Word Processing\Ordinances\ResidentiaI impact fee deferral 11 -29 -16 Page 13 of 14 BG:bjs 337 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 fiveda -- after passage and publication as provided by law. .7 PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this - day of 72016. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk MW 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\ResidentiaI impact fee deferral 11 -29 -16 BG:bjs 338 Page 14 of 14