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Home My WebLink AboutCOW 2017-05-08 Item 4A - Ordinance - Multi-Family Residential Property Tax Exemption AmendmentCOUNCIL AGENDA SYNOPSIS Im/tals £ leetitg Date Prepared by Al wr's review Council ninety 05/08/17 LM 411C_ .DLR 05115117 LM SPONSOR ❑Couto'I 0Me1,ynr ❑1--!R ®DCD ❑.Finance !Fare ❑T5 ❑P&R ❑Police ❑PZG' /Court SPONSOR'S Under TMC 3.90, applications for multi- family tax exemptions offered as an incentive to SUMMARY stimulate the construction of new housing in limited areas in the Tukwila Urban Center were no longer accepted after December 31, 2016. The Council is being asked to hold a public hearing, consider, and approve an ordinance amending TMC 3.90.060.D to extend the deadline to apply for the property tax exemption until December 31, 2017. RI.\'II:\vI:I] Ill• ❑ COAX!, Mtg. ® CDN Comm ❑ Finance Comm. ❑ Public Safety Comm. ❑ Trans &Infrastructure ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 04/24/17 COMMITTEE CHAIR: HOUGARDY RECOMMENDATIONS: SI NsoR/ADMIl. C(»[MI Department of Community Development I"rlcr: Unanimous Approval; Forward to C.D.W. COST IMPACT 1 FUND SOURCE ExPI•:\DI foal: RI:QL!IRl D AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ Fund Source: Comments: ITEM INFORMATION ITEM No. 3& 4.A. 1 , STAFF SPONSOR: LYNN MIRANDA ORIGINAL AGENDA DA'I'I:: 05/08/17 AGENDA I I I'M TI I I,I: An ordinance amending TMC 3.90 Multi- Family Residential Property Tax Exemption C. 1•I'1 ?[ t lR1' ® Dif ati /on III,g Dale 05/08/17 EA Iota on elfts Date ❑ Resolution MIA Dale ® Ordinance A 1 0 fate 05/15/17 ❑ Bid Award Mtg Dale ® Public I- leann,g ,lltg Dale 05/08/17 ❑ Other r1ftg, Date SPONSOR ❑Couto'I 0Me1,ynr ❑1--!R ®DCD ❑.Finance !Fare ❑T5 ❑P&R ❑Police ❑PZG' /Court SPONSOR'S Under TMC 3.90, applications for multi- family tax exemptions offered as an incentive to SUMMARY stimulate the construction of new housing in limited areas in the Tukwila Urban Center were no longer accepted after December 31, 2016. The Council is being asked to hold a public hearing, consider, and approve an ordinance amending TMC 3.90.060.D to extend the deadline to apply for the property tax exemption until December 31, 2017. RI.\'II:\vI:I] Ill• ❑ COAX!, Mtg. ® CDN Comm ❑ Finance Comm. ❑ Public Safety Comm. ❑ Trans &Infrastructure ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 04/24/17 COMMITTEE CHAIR: HOUGARDY RECOMMENDATIONS: SI NsoR/ADMIl. C(»[MI Department of Community Development I"rlcr: Unanimous Approval; Forward to C.D.W. COST IMPACT 1 FUND SOURCE ExPI•:\DI foal: RI:QL!IRl D AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 05/08/17 05/24/17 MTG. DATE ATTACHMENTS 05/08/17 Informational Memorandum dated 04/19/17 Figure 3 -1 Map of Targeted Residential Area Ordinance in draft form TMC 3.90 Minutes from the CDN Committee meeting of 04/24/17 5/15/17 1 2 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Community Development and Neighborhoods Committee FROM: Jack Pace, DCD Director BY: Lynn Miranda, Senior Planner CC: Mayor Ekberg DATE: April 19, 2017 SUBJECT: An Ordinance amending TMC 3.90 Multi - Family Residential Property Tax Exemption ISSUE Under TMC 3.90, applications for multi - family tax exemptions offered as an incentive to stimulate the construction of new housing in limited areas in the Tukwila Urban Center were no longer accepted after December 31, 2016. The Council is being asked to consider and approve an ordinance amending TMC 3.90 to extend the deadline to apply for the property tax exemption until December 31, 2017. BACKGROUND Tukwila City Council adopted Ordinance 2462 in 2014 allowing the use of the Multifamily Property Tax Exemption (MFTE) as an incentive to encourage residential development of market rate and affordable housing within a portion of the Southcenter area zoned Transit Oriented Development (TUC -TOD) located west of the Green River. if a project met certain State eligibility criteria set forth in RCW 84.14, the qualified residential units would be exempt from ad valorem property taxes for eight years; twelve years if providing affordable housing. The property tax exemption applies to the qualified housing units only, not on the value of land or commercial properties. Once the exemption period ends, the structures are placed on the property tax rolls based on their original new construction value. The intent was to stimulate the construction of pioneer multifamily developments in the urban center, not to provide an on -going subsidy. Per TMC 3.90.060.D, the deadline for applying for the property tax incentive was December 31, 2016. Washington Place is the only project that utilized the MFTE program. DISCUSSION The Southcenter Plan describes the TOD district as an emerging mixed -use, residential neighborhood. The City has invested in this vision with improvements such as the transit center, the pedestrian bridge over the Green River, and upcoming changes to Baker Boulevard including new sidewalks, on- street parking, and bike lanes. These public improvements combined with the MFTE incentive served to catalyze the first residential project for the urban center, Washington Place. Staff believes extending the multifamily property tax exemption application period for a limited time is a necessary incentive to construct additional housing in the urban center. Recently, 3 4 INFORMATIONAL MEMO Page 2 developers have expressed interest in constructing Class A market rate apartments in the TOD district. However, there are no existing rents on new apartments or condos near this area, making it difficult to get financing. Washington Place, currently under construction, cannot provide comparables as it will not lease up for at least 18 months. Consequently, the developers have requested that the MFTE program be extended through 2017 to increase the feasibility of their project. The only change being requested is extension of the application period for the remaining year. All other aspects of the TMC 3.90 Multi- family Residential Property Tax Exemption, including duration of exemption, project eligibility, application procedures and review, and annual certification, remain the same. After one or two additional projects are completed and rented, we may learn that the rents are high enough to justify additional development without needing the incentive. FINANCIAL IMPACT If the multifamily residential property tax exemption was approved for a project, it would delay when the City and other taxing districts would start receiving property tax on the new construction by eight or twelve years. RECOMMENDATION The Council is being asked to hold a public hearing on the ordinance at the May 8, 2017 Committee of the Whole and consider this item at the subsequent May 15, 2017 Regular Meeting. ATTACHMENTS Draft Ordinance Figure 3 -1 Map of Targeted Residential Area W:IUsersILYNNMIMFTE revisionUnfoMemo MFTE FlNAL.doc Figure 3-1 Map of Targeted Residential Area :171111:1 City of Tukwila Multi-Family Property Tax Exemption Residential Targeted Area EZI Target Parcels Zon IngCode TUC-TOD Zone 5 6 DRAFT AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 2462 §8, AS CODIFIED AT TUKWILA MUNICIPAL CODE CHAPTER 3.90, "MULTI- FAMILY RESIDENTIAL PROPERTY TAX EXEMPTION," TO EXTEND THE DEADLINE TO APPLY FOR THE PROPERTY TAX EXEMPTION; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, Chapter 84.14 RCW authorizes cities to provide for exemptions from ad valorem property taxation on qualified multi - family housing developments located in designated residential targeted areas in order to encourage more desirable and convenient residential units in urban centers; and WHEREAS, the King County Countywide Planning Policies (KCCPP), developed pursuant to the Washington State Growth Management Act, have established standards for cities to plan for their share of regional growth and affordable housing; and WHEREAS, the Tukwila Urban Center is one of the region's designated urban centers and lies within an urban growth area; and WHEREAS, the City intends to assist in achieving its residential growth targets and goals in the City's Housing and Urban Center Element of the City's Comprehensive Plan by encouraging new multi - family housing in the Tukwila Urban Center; and WHEREAS, the Tukwila Urban Center currently lacks sufficient available, desirable and convenient residential housing, including affordable housing, to meet the needs of the public who would be likely to live in the urban center, if the affordable, desirable, attractive, and livable places to live were available; and WHEREAS, the Tukwila Urban Center qualifies as an urban center for purposes of RCW 84.14.010 and Tukwila has a desire to stimulate new construction of multi - family housing within that portion of the Tukwila Urban Center's Transit Oriented Development district that lies west of the Green River; and W: Word Processingl0rdinanceslProperty tax exemption for qualified multi - family housing extended 4- 11- 17.doc LM:bjs Page 1 of 3 7 WHEREAS, the tax incentive provided by Chapter 84.14 RCW encourages increased residential opportunities, including affordable housing opportunities, and will stimulate the construction of new multi - family housing within the residential targeted area and will benefit and promote public health, safety, and welfare by encouraging residential development and redevelopment of that area of the City; and WHEREAS, the tax incentive regulations were adopted by the Tukwila City Council in Ordinance No. 2462 on December 1, 2014; and WHEREAS, under Tukwila Municipal Code Section 3.90.060, applications for a multi- family tax exemption were no longer accepted after December 31, 2016, and the Tukwila City Council desires to continue offering an incentive to stimulate the construction of new housing within a portion of the Tukwila Urban Center Transit Oriented Development district fora limited period of time; and WHEREAS, on May 8, 2017, the Tukwila City Council, after giving public notice as required by RCW 84.14.040, held a public hearing to consider adoption of the proposed ordinance; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Ordinance No. 2462 §8, as codified at Tukwila Municipal Code Section 3.90.060, is hereby amended to read as follows: 3.90.060 Application Procedure — Fee A. The owner of property applying for exemption under this chapter shall submit an application to the Administrator, on a form established by the Administrator. The owner shall verify the contents of the application by oath or affirmation. The application shall contain the following information: 1. A brief written description of the project, including phasing if applicable, that states which units are proposed for the exemption and whether the request is for 8 or 12 years. 2. Preliminary schematic site and floor plans of the multi- family units and the structure(s) in which they are proposed to be located. 3. A table of all units in the project listing unit number, square footage, unit type (studio, one bedroom, etc.), and indicating those proposed for the exemption. 4. If applicable, information describing how the applicant will comply with the affordability requirements in TMC Sections 3.90.040 and 3.90.050. 5. A statement from the owner acknowledging the potential tax liability when the property ceases to be eligible for exemption under this chapter. 6. Any other information deemed necessary or useful by the Administrator. W: Word ProcessinglordinanceslProperty tax exemption for qualified multi - family housing extended 4 -1 1- 17.doc LM:bjs 8 Page 2 of 3 B. At the time of application under this section, the applicant shall pay to the City an initial application fee of $500 or as otherwise established by ordinance or resolution. If the application is denied, the City may retain that portion of the application fee attributable to its own administrative costs and refund the balance to the applicant. C. The complete application shall be submitted any time before, but no later than, the date the certificate of occupancy is issued under Title 16 of the Tukwila Municipal Code. D. After December 31, 2-04-62017, the City will no longer accept applications. Section 2. 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 3. 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 4. 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 , 2017. 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 Processinglordinances\Property tax exemption for qualified multi - family housing extended 4- 11- 17.doc LM :bjs Page 3 of 3 9 10 TITLE 3 -- REVENUE AND FINANCE CHAPTER 3.90 MULTI - FAMILY RESIDENTIAL PROPERTY TAX EXEMPTION Sections: 3.90.010 3.90.020 3.90.030 3.90.040 3.90.050 3.90.060 3.90.070 3.90.080 3.90.090 3.90.100 3.90.110 Purpose Definitions Residential Targeted Area — Criteria — Designation -- Recession Tax Exemption for Multi - Family Housing in Residential Targeted Areas Authorized Project Eligibility Application Procedure — Fee Application Review — Issuance of Conditional Certificate — Denial — Appeal Extension of Conditional Certificate Final Certificate — Application — Issuance — Denial — Appeal Annual Certification Appeals to the Hearing Examiner 3.90.010 Purpose The purposes of this chapter are: 1. To encourage increased residential opportunities, including affordable housing opportunities, and to stimulate the construction of new multi - family housing within a portion of the Tukwila Urban Center's Transit Oriented Development district. 2. To accomplish the planning goals required under the Washington State Growth Management Act, Chapter 36.70A RCW and Countywide Planning Policies as implemented by the City's Comprehensive Plan. {Ord. 2462 §3. 2014) 3.90.020 Definitions As used in this chapter, unless the context or subject matter clearly requires otherwise, the words or phrases defined in this section shall have the indicated meanings: A. "Administrator" shall mean the Economic Development Administrator of the City of Tukwila or his/her designee. B. "Affordable housing" means residential housing that is rented by a person or household whose monthly housing costs. including utilities other than telephone. do not exceed 30 percent of the household's monthly income. For the purposes of housing intended for owner occupancy, "affordable housing" means residential housing that is within the means of low- or moderate - income households. C. "High cost area' means a county where the third quarter median house price for the previous year as reported by the Washington Center for Real Estate Research at Washington State University is equal to or greater than 130 percent of the statewide median house price published during the same time period. D. "Household" means a single person. family, or unrelated persons living together. E. "Low- income household" means a single person, family, or unrelated persons living together whose adjusted income is at or below 80 percent of the median family income, adjusted for family size, for the county where the project is located, as reported by the United States Department of Housing and Urban Development. For cities located in high - cost areas, "low- income household" means a household that has an income at or below 100 percent of the median family income adjusted for family size, for the county where the project is located. F. "Moderate- income household" means a single person, family, or unrelated persons living together whose adjusted income is more than 80 percent but is at or below 115 percent of the median family income. adjusted for family size, for the county where the project is located, as reported by the United States Department of Housing and Urban Development. For cities located in high -cost areas, "moderate - income household' means a household that has an income that is more than 100 percent, but at or below 150 percent, of the median family income adjusted for family size, for the county where the project is located. G. "Multi- family housing" means a building having four or more dwelling units not designed or used as transient accommodations and not including hotels and motels. Multi- family units may result from new construction or rehabilitation or conversion of vacant. underutilized, or substandard buildings to multi - family housing. H. "Owner" means the property owner of record. I. "Owner occupied" means a residential unit that is rented for fewer than 30 days per calendar year. J. "Permanent residential occupancy" means multi- family housing that is either owner occupied or rented for periods of at least one month. K. "Residential targeted area means the area within the boundary as designated by TMC Section 3,90.030. L. "Urban Center' means a compact, identifiable district where urban residents may obtain a variety of products and services. An urban center must contain: 1. Several existing or previous, or both, business establishments that may include but are not limited to shops, offices, banks, restaurants, governmental agencies; 2. Adequate public facilities including streets, sidewalks, lighting, transit, domestic water, and sanitary sewer systems; and 3. A mixture of uses and activities that may include housing, recreation, and cultural activities in association with either commercial or office or both uses. (Ord. 2462 §4. 2014j Produced by the City of Tukwila, City Clerk's Office Page 3-31 11 TUKWILA MUNICIPAL CODE 3.90.030 Residential Targeted Area — Criteria — Designation — Recession A. The boundary of the residential targeted area is that portion of the Tukwila Urban Center zone's Transit Oriented Development district that lies west of the Green River as shown below in Figure 3-1. B. If a part of any legal lot is within the residential targeted area, then the entire lot shall be deemed to lie within such residential targeted area. (Ord. 2462 §5, 2014) Figure 3-1: Map of Targeted Residential Area R Andtavei 1� r City of Tukwila Multi - Family Property Tax Exemption Residential Targeted Area Target Parcels ZoningCode 11.1C -1070 Zone N Page 3-32 12 Produced by the City of Tukwila, City Clerk's Office 3.90.040 Tax Exemption for Multi- Family Housing in Residential Targeted Areas Authorized A. Duration of Exemption. The value of improvements qualifying under this chapter will be exempt from ad valorem property taxation, as follows: 1. For 8 successive years beginning January 1 of the year immediately following the calendar year of issuance of the certificate of tax exemption; or 2. For 12 successive years beginning January 1 of the year immediately following the calendar year of issuance of the certificate of tax exemption, if the property otherwise qualifies for the exemption under Chapter 84.14 RCW and meets the conditions in this subsection. For the property to qualify for the 12 -year exemption under this subsection, the applicant must commit to renting or selling at least 20 percent of the multi - family housing units as affordable housing units to low- and moderate - income households. In the case of the projects intended exclusively for owner occupancy, the minimum requirement of this subsection may be satisfied solely through housing affordable to moderate - income households. B. Limits of Exemption. 1. The property tax exemption does not apply to the value of land or to the value of non- housing - related improvements not qualifying under RCW 84,14. 2. This chapter does not apply to increases in assessed valuation made by the assessor on non - qualifying portions of building and value of land, nor to increases made by lawful order of the King County Board of Equalization, the Department of Revenue, or King County, to a class of property throughout the county or specific area of the county to achieve uniformity of assessment of appraisal required by law. 3. The property tax exemption only applies to the value of improvements used for permanent residential occupancy. «),d. 2462 §6, 2014) 3.90.050 Project Eligibility A. To be eligible for exemption from property taxation under this chapter, the residential units must satisfy all of the following criteria: 1, The units must be located in the residential targeted area. 2. The units must be within a residential or mixed - use structure containing at least four dwelling units. 3. The units must have an average size of at !east 500 square feet per unit. 4. A minimum of 15 percent of the units must be at least 900 square feet and contain at least two bedrooms. 5. The units must be designed and used for permanent residential occupancy. 6. Each unit must have its own private bathroom and private kitchen. Residential projects that utilize common kitchens andfor common bathrooms are not eligible. Produced by the City of Tukwila, City Clerk's Office TITLE 3 — REVENUE AND FINANCE 7, The entire property shall comply with all applicable zoning requirements, land use regulations, environmental requirements. building codes and fire code requirements, as outlined in the Tukwila Municipal Code. 8, The units must be constructed and receive a certificate of occupancy after this ordinance takes effect 9. The units must be completed within 3 years from the date of issuance of the conditional certificate of acceptance of tax exemption by the City, or within authorized extension of this time limit. 8. In addition to the requirements listed in TMC Section 3.90.050 (A), residential units that request the 12 -year property tax exemption, as permitted by TMC Section 3.90.040 (A)(2). must also satisfy the following requirements: 1. The mix and configuration of housing units (e.g.. studio, one - bedroom, two - bedroom, etc.) used to meet the requirement for affordable units under TMC Section 3.90.050 shall be substantially proportional to the mix and configuration of the total housing units in the project. 2. For owner - occupied projects, the contract with the City required under TMC Section 3.90.070 shall identify which units meet the affordability criteria. pro'. 2452 y7. 2011 3.90.060 Application Procedure --- Fee A. The owner of property applying for exemption under this chapter shall submit an application to the Administrator, on a form established by the Administrator. The owner shall verify the contents of the application by oath or affirmation. The application shall contain the following information: 1. A brief written description of the project, including phasing if applicable, that states which units are proposed for the exemption and whether the request is for 8 or 12 years. 2. Preliminary schematic site and floor plans of the multi - family units and the structure(s) in which they are proposed to be located. 3. A table of all units in the project listing unit number, square footage, unit type (studio, one bedroom, etc.), and indicating those proposed for the exemption. 4. If applicable, information describing how the applicant will comply with the affordability requirements in TMC Sections 3.90.040 and 3.90.050. 5, A statement from the owner acknowledging the potential tax liability when the property ceases to be eligible for exemption under this chapter. 6. Any other information deemed necessary or useful by the Administrator. 8, At the time of application under this section, the applicant shall pay to the City an initial application fee of $500 or as otherwise established by ordinance or resolution. If the application is denied, the City may retain that portion of the application fee attributable to its own administrative costs and refund the balance to the applicant. Page 3-33 13 TUKWILA MUNICIPAL CODE C. The complete application shall be submitted any time before, but no later than, the date the certificate of occupancy is issued under Title 16 of the Tukwila Municipal Code. D. After December 31, 2016, the City will no longer accept applications. (Ord. 2462 §8, 20141 3.90.070 Application Review — Issuance of Conditional Certificate — Denial — Appeal A. The Administrator shah approve or deny an application under this chapter within 90 days of receipt of the complete application. The Administrator shall use the criteria listed in TMC Chapter 3.90 and Chapter 84.14 RCW to review the proposed application. If the application is approved, the owner shall enter into a contract with the City regarding the terms and conditions of the project and eligibility for exemption under this Chapter. The Mayor shall be the authorized signatory to enter into the contract on behalf of the City. Following execution of the contract, the Administrator shall issue a conditional certificate of acceptance of tax exemption. The certificate must contain a statement by the Administrator that the property has complied with the required finding indicated in RCW 84.14,060. The conditional certificate shall expire 3 years from the date of approval unless an extension is granted as provided in this chapter. B. If the application is denied, the Administrator shall issue a Notice of Denial stating in writing the reasons for the denial and send the Notice of Denial to the applicant's last known address within 10 days of the denial. C. An applicant may appeal the Administrator's notice of denial of the application to the City Council by filing a notice of appeal with the City Clerk within 30 days of receipt of the Administrator's notice of denial and paying a fee of $500 or as otherwise established by ordinance or resolution. The appellant shall provide a statement regarding the basis for the appeal. The closed record appeal before the City Council shall be based upon the record before the Administrator, and the Administrator's decision shall be upheld unless the applicant can show that there is no substantial evidence on the record to support the Administrator's decision. The City Council decision on appeal is final. (Ord. 2462 §9, 2014) 3.90.080 Extension of Conditional Certificate The conditional certificate may be extended by the Administrator for a period not to exceed 24 consecutive months. The applicant shall submit a written request stating the grounds for the extension, together with a fee as established by ordinance or resolution. The Administrator may grant an extension if the Administrator determines that: 1. The anticipated failure to complete construction or rehabilitation within the required time period is due to circumstances beyond the control of the owner; Page 3-34 14 2. The owner has been acting and could reasonably be expected to continue to act in good faith and with due diligence: and 3. All the conditions of the original contract between the owner and the City will be satisfied upon completion of the project. {Ord. 2482 00, 2014) 3.90.090 Final Certificate — Application — Issuance — Denial — Appeal A. After completion of construction as provided in the contract between the owner and the City, after issuance of a certificate of occupancy and prior to expiration of the conditional certificate of exemption, the applicant may request a final certificate of tax exemption. The applicant shall file with the Administrator such information as the Administrator may deem necessary or useful to evaluate eligibility for the final certificate, and shall include: 1. A statement of expenditures made with respect to each multi - family housing unit, including phasing if applicable, and the total expenditures made with respect to the entire property. 2. A description of the completed work and a statement of qualification for the exemption. 3. A statement that the work was completed within the required 3 -year period or any approved extension. 4, If applicable, information on the applicant's compliance with the affordability requirements in TMC Sections 3.90.040 and 3.90.050. B. Within 30 days of receipt of all materials required for a final certificate, the Administrator shall determine whether the completed work is consistent with the application and contract approved by the Mayor and is qualified for limited exemption under Chapter 84.14 RCW, and which specific improvements completed meet the requirements of this chapter and the required findings of RCW 84.14.060. C. If the Administrator determines that the project has been completed in accordance with TMC Section 3.90.090 (A). the City shall file a final certificate of tax exemption with the assessor within 10 days of the expiration of the 30 -day period provided under TMC Section 3.90.090 (B). D. The Administrator is authorized to cause to be recorded, or to require the applicant or owner to record, in the real property records of the King County Department of Records and Elections, the contract with the City required under TMC Section 3.90.070 and such other document(s) as will identify such terms and conditions of eligibility for exemption under this chapter as the Administrator deems appropriate for recording, including requirements under this chapter relating to affordability of units. Produced by the City of Tukwila, City Clerk's Office E. The Administrator shall notify the applicant in writing that the City will not fife a final certificate if the Administrator determines that the project was not completed within the required 3 -year period or any approved extension, or was not completed in accordance with TMC Section 3.90.090 (B): or if the Administrator determines that the owner's property is not otherwise qualified under this chapter or if the owner and the Administrator cannot agree on the allocation of the value of the improvements allocated to the exempt portion of rehabilitation improvements, new construction and multi -use new construction, F. The applicant may appeal the City's decision to not file a final certificate of tax exemption to the City's Hearing Examiner within 30 days of issuance of the Administrator's notice as outlined in TMC Section 3,90.110. (Ord. 2462 411. 1!r 4) 3.90.100 Annual Certification A. A residential unit or units that receive a tax exemption under this chapter shall continue to comply with the contract and the requirements of this chapter in order to retain its property tax exemption. B. Within 30 days after the first anniversary of the date the City filed the final certificate of tax exemption and each year for the tax exemption period, the property owner shall fife a certification with the Administrator, verified upon oath or affirmation, which shall contain such information as the Administrator may deem necessary or useful, and shall include the following information: 1. A statement of occupancy and vacancy of the multi - family units during the previous year. 2. A certification that the property has not changed use since the date of filing of the final certificate of tax exemption and continues to be in compliance with the contract with the City and the requirements of this chapter. 3. A description of any improvements or changes to the property made after the filing of the final certificate or last declaration, as applicable. 4. If applicable, information demonstrating the owner's compliance with the affordability requirements of TMC Sections 3.90.040 and 3.90.050. including: a. The total monthly rent or total sale amount of each unit; and b. The income of each renter household at the time of initial occupancy and the income of each initial purchaser of owner - occupied units at the time of purchase for each of the units receiving a tax exemption. 5. The value of the tax exemption for the project. 6. Any additional information requested by the City in regard to the units receiving a tax exemption (pursuant to meeting any reporting requirements under Chapter 84.14 ROW). C. Failure to submit the annual declaration may result in cancellation of the tax exemption pursuant to this section. Produced by the City of Tukwila, City Clerk's Office TITLE 3 — REVENUE AND FINANCE D. For the duration of the exemption granted under this chapter, the property shall have no violation of applicable zoning requirements, land use regulations, building codes, fire codes, and housing codes contained in the Tukwila Municipal Code for which the designated City department shall have issued a Notice and Order and that is not resolved within the time period for compliance provided in such Notice and Order. E. For owner - occupied affordable units, in addition to any other requirements in this Chapter, the affordable owner - occupied units must continue to meet the income eligibility requirements of TMC Section 3.90.040. In the event of a sale of an affordable owner - occupied unit to a household other than an eligible household, or at a price greater than prescribed in the contract referenced in TMC Section 3.90.070, the property tax exemption for that affordable owner - occupied unit shall be canceled pursuant to this section. F. For property with renter- occupied dwelling units, in addition to any other requirements in this chapter, the affordable renter - occupied units must continue to meet the income eligibility requirements of TMC Section 3.90.040. In the event of a rental of an affordable renter - occupied unit to a household other than an eligible household, or at a rent greater than prescribed in the contract referenced in TMC Section 3.90.040, the property tax exemption for the property shall be canceled pursuant to this section. G. If the owner converts the multi- family housing to another use, the owner shall notify the Administrator and the County Assessor within 60 days of the change in use. Upon such change in use, the tax exemption shall be canceled pursuant to this section. H. The Administrator shall cancel the tax exemption for any property or individual unit that no longer complies with the terms of the contract or with the requirements of this chapter. Upon cancellation, additional taxes, interest and penalties shall be imposed pursuant to state law. Upon determining that a tax exemption shall be canceled, the Administrator shall notify the property owner by certified mail, return receipt requested. The property owner may appeal the determination by filing a notice of appeal within 30 days of the date of notice of cancellation, specifying the factual and legal basis for the appeal. The appeal shall be heard by the Hearing Examiner pursuant to TMC Section 3.90.110. (Ord. 2462 §12. 2014i Page 3-35 15 TUKWILA MUNICIPAL CODE 3.90.110 Appeals to the Hearing Examiner A. The City's Hearing Examiner is provided jurisdiction to hear appeals of the decisions of the Administrator to deny issuance of a final certificate of tax exemption or cancel tax exempt status. All appeals shall be closed record and based on the information provided to the Administrator when the administrative decision was made. B. The Hearing Examiner's procedures, as adopted by City Council resolution, shall apply to hearings under this chapter to the extent they are consistent with the requirements of this chapter and Chapter 84.14 RCW. The Hearing Examiner shall give substantial weight to the Administrator's decision and the burden of proof shall be on the appellant. The decision of the Hearing Examiner constitutes the final decision of the City. An aggrieved party may appeal the decision to Superior Court under RCW 34.05,510 through 34.05.598 if the appeal is properly filed within 30 days of the date of the notification by the City to the appellant of that decision. Page 3-36 16 iOr I. 2462 513, 2014) Produced by the City of Tukwila, City Clerk's Office Figure 3 -1 City of Tukwila Multi- Family Property Tax Exemption Residential Targeted Area Target Parcels ZoningCode TUC -TOD Zone 18 City of Tukwila City Council Community Development & Neighborhoods Committee COMMUNITY DEVELOPMENT & NEIGHBORHOODS COMMITTEE Meeting Minutes April 24, 2017 - 5:30 p. m. - Hazelnut Conference Room, City Hall Councilmembers: Kathy Hougardy, Chair; Verna Seal, Dennis Robertson (Absent: Kate Kruller) Staff: David Cline, Jack Pace, Lynn Miranda, Derek Speck, Nora Gierloff, Bob Giberson, Laurel Humphrey CALL TO ORDER: Committee Chair Hougardy called the meeting to order at 5:30 p.m. I. BUSINESS AGENDA A. Ordinance: Amending the Multi - Family Residential Property Tax Exemption Staff is seeking Council approval of an ordinance that would amend Tukwila Municipal Code Chapter 3.90 to extend the deadline to apply for multi - family tax exemptions as a housing incentive in the Tukwila Urban Center until December 31, 2017. The previous exemption period expired in December 2016 and Washington Place is the only project that applied and qualified for the program. Another developer has recently expressed interest in constructing Class A market rate apartments in the TOD but financing is difficult as there are no comparable rents in the area. Extension of the MFTE program may increase the feasibility of this and other projects. Once additional projects are completed, the availability of rental data may prove that the incentive is no longer needed. UNANIMOUS APPROVAL. FORWARD TO MAY 8, 2017 COMMITTEE OF THE WHOLE FOR PUBLIC HEARING AND DISCUSSION. B. Tukwila International Boulevard Implementation Update Staff briefed the committee on a preliminary work program for implementation of the Tukwila International Boulevard Plan and recommendations from the Congress for New Urbanism (CNU) recommendations. CNU will be presenting its final report to the City Council at its May 1, 2017 meeting and will be recommending that the City change development standardsto make the TIB corridor more land use, pedestrian and bike friendly. Implementation of any changes desired by Council will require ordinance development, public outreach, environmental analysis, and review by the Planning Commission and City Council. The draft schedule shows completion of all steps by early December, but this is subject to change as the plan progresses and may go into 2018. TIB Plan implementation was given a high priority by the City Council at its recent Housing Policy workshop. Committee members stated they look forward to greater details, including budget analysis and recommendations. DISCUSSION ONLY. 19