HomeMy WebLinkAboutOrd 2665 - Multi-Family Tax ExemptionCity of Tukwila
Washington
Cover page to Ordinance 2665
The full text of the ordinance follows this cover page.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, AMENDING ORDINANCE NOS: 2462
AND 2538, AS CODIFIED AT TUKWILA MUNICIIAL CODE
SECTIONS 3.90,050 AND .90.060, TO AMEND ELIGIBILITY
CRITERIA AND TO ALLOW NEW APPLICATIONS FOR MULTI-
FAMILY RESIDENTIAL PROPERTY TAX EXEMPTIONS TO BE
SUBMITTED; PROVIDING FOR SEVERABILITY; AND
ESTABLISHING AN EFFECTIVE (DATE,.
Ordinance 2665 was amended or repealed by the
following ordinances.
ion(s) Arnend
2
vended by Ord #
2707
ion(s)
pealed Repealed by Ord
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, AMENDING ORDINANCE NOS. 2462
AND 2538, AS CODIFIED AT TUKWILA MUNICIPAL CODE
SECTIONS 3.90.050 AND 3.90.060, TO AMEND ELIGIBILITY
CRITERIA AND TO ALLOW NEW APPLICATIONS FOR MULTI-
FAMILY RESIDENTIAL PROPERTY TAX EXEMPTIONS TO BE
SUBMITTED; PROVIDING FOR SEVERABILITY; AND
ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, chapter84.14 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, affordable,
and convenient residential units in urban centers; and
WHEREAS, the King County Countywide Planning Policies (KCCPP), developed
pursuantto the Washington State Growth ManagementAct, have established standards
for cities to plan for theirshare 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, with access to high capacity transit; and
WHEREAS, the City intends to assist in achieving its residential growth targets and
goals in the City's Housing and Urban Center Element of the City's Comprehensive
Plan by encouraging new multi -family housing in the Tukwila Urban Center; and
WHEREAS, three projects utilized the Multi -Family Tax Exemption between 2014
and 2017, including two age -restricted projects; and
WHEREAS, the Tukwila Urban Center currently lacks sufficientavailable, desirable
and convenient residential housing available to all ages, including affordable housing, to
meet the needs of the publicwhowould be likelyto live and work in the urban center, if
affordable, desirable, attractive, and livable places were available; and
WHEREAS, King County is currently facing a housing shortage, with a lack of
workforce housing; and
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WHEREAS, thousands of people who work in the Tukwila Urban Center are unable
to live near their jobs due to a lack of quality workforce housing and, as a result, these
individuals commute to and from work, resulting in additional vehicles on regional
roadways and adding more greenhouse gas emissions to the atmosphere; and
WHEREAS, the Tukwila Urban Center qualifies as an urban center for purposes of
RCW 84.14.010, and Tukwila has a desire to stimulate construction of new multi -family
housingwithin thatportion of the Tukwila Urban Center's Transit Oriented Development
District that lies west of the Green River; and
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 developmentand redevelopmentof that area of the City; and
WHEREAS, a limited Multi -Family Tax Exemption Program in the Tukwila Urban
Center may assist in allowing workers to live closer to their jobs; and
WHEREAS, the City's tax incentive regulations were adopted by the Tukwila City
Council in Ordinance No. 2462 on December 1, 2014, and amended bythe City Council
on May 15, 2017, by Ordinance No. 2538; and
WHEREAS, under Tukwila Municipal Code Section 3.90.060, applications for a multi-
familytax exemption were no longeraccepted after December 31, 2017, and the Tukwila
City Council desires to allow new projects to take advantage of the incentive to sti mu late
the construction of new housing open to all ages to supportthe developmentof affordable
and quality workforce housing within a portion of the Tukwila Urban Center Transit
Oriented Development Districtfora limited period of time; and
WHEREAS, on November 22, 2021, the Tukwila City Council, after giving public
notice consistentwith RCW 84.14.040, held a public hearing to consider adoption of th e
proposed ordinance;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. TMC Section 3.90.050 Amended. Ordinance No. 2462 §7, as codified
at Tukwila Municipal Code (TMC) Section 3.90.050, is hereby amended to read as
follows:
3.90.050 Project Eligibility
A. To be eligible for exemption from property taxation under this chapter, the
residential units mustsatisfy all of the following criteria:
1. The units mustbe located in the residential targeted area.
2. The units mustbe within a residential ormixed-use structure containing at
least fourdwelling units.
3. The units must have an average size of at least 500 square feet per unit.
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4. A minimum of 15 percentof the units mustbe at least 900 square feet and
contain at least two bedrooms.
5. The units must be designed and used for permanent residential
occupancy made available to residents of all ages to promote workforce housing.
6. Each unit must have its own private bathroom and private kitchen.
Residential projects that utilize common kitchens and/or common bathrooms are not
eligible.
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.
B. 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 identifywhich units meet the affordability criteria.
Section 2. TMC Section 3.90.060 Amended. Ordinance Nos. 2462 §8 and 2538
§1, as codified at TMC Section 3.90.060, are hereby amended 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
ownershall verifythe 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 forthe exemption and whether the request is for
or 12 years.
2. Preliminary schematic site and floor plans of the multi4amily u nits and the
structure(s) in which theyare 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 forthe exemption.
4. If applicable, information describing how the applicantwill comply with the
affordability requirements in TMC Sections 3.90.040 and 3.90.050.
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5. A statement from the owner acknowledging the potential tax liability when
the property ceases to be eligible for exemption underthis chapter.
6. Any other information deemed necessary or useful bythe Administrator.
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 orresole tion .
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 anytime 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, 2022, the City will no longer accept applications.
Section 3. Corrections by City Clerk or Code Reviser Authorized. Upon
approval of the City Attorney, the City Clerk and the code reviser are authorized to
make necessary corrections to this ordinance, including the correction of clerical errors;
references to other local, state or federal laws, codes, rules, or regulations; or ordinance
numbering and section /subsection numbering.
Section 4. 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 anyother person or situation.
Section 5. Effective Date. This ordinance ora 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 (6� dayof —0e-0ery00i!--r _,2021.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
Office of the City Attom ey
Allan Ekberg, Mayor
Filed with the City Clerk: 11-3 '0
0-2-\
Passed by the City Council: — t2 - (o' 2-1
Published: 12-- ) - 2-k
Effective Date: 1'2--ILA-Z\
Ordinance Number: 2665
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City of Tukwila Public Notice of Ordinance Adoption for Ordinances 2665-2666.
On December 6, 2021 the City Council of the City of Tukwila, Washington, adopted the
following ordinances, the main points of which are summarized by title as follows:
Ordinance 2665: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, AMENDING ORDINANCE NOS. 2462 AND 2538, AS
CODIFIED AT TUKWILA MUNICIPAL CODE SECTIONS 3.90.050 AND 3.90.060, TO
AMEND ELIGIBILITY CRITERIA AND TO ALLOW NEW APPLICATIONS FOR MULTI-
FAMILY RESIDENTIAL PROPERTY TAX EXEMPTIONS TO BE SUBMITTED;
PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
Ordinance 2666: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, REPEALING ORDINANCE NO. 1916 RELATING TO THE
CITY'S INVESTMENT POLICY, THEREBY ELIMINATING TUKWILA MUNICIPAL CODE
CHAPTER 3.28; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN
EFFECTIVE DATE.
The full text of this ordinance will be provided upon request.
Christy O'Flaherty, MMC, City Clerk
Published Seattle Times: December 9, 2021