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ORD 97-15 AFFORDABLE HOUSINGORDINANCE NO. 97-15 AN ORDINANCE of the City of Bainbridge Island, Washington, relating to the implementation of affordable housing goals and policies, and providing for required affordable housing and residential bonus density relating to affordable housing. WHEREAS, the State of Washington Growth Management Act, RCW Chapter 36.70A and related sections, (the "GMA"), requires the City to adopt a Comprehensive Plan, containing an element addressing the creation and preservation of affordable housing for the citizens of the City (the "Housing Element"); and WHEREAS, the City adopted a Comprehensive Plan on September 1, 1994, which contains a Housing Element that establishes goals and policies for the provision of housing for the citizens of the City; and WHEREAS, in accordance with RCW36.70A, the GMA requires that development regulations be adopted that implement the Plan. Now, therefore THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND, WASHINGTON, DO ORDAIN, as follows: Section 1. Section 18.06.565, "HUD-Defined Affordable Housing" is hereby repealed and replaced as follows: 18.06.565 Affordable housing. "Affordable housing" or "affordable dwelling unit" (formerly "HUD-Defined Affordable Housing") means a dwelling unit for use as primary residence by a household in any of the income groups described below, which may be rented or purchased without spending more than 30% of monthly household income including utilities other than telephone and cable TV. The Department of Planning and Community Development shall calculate and publish annually the maximum purchase prices and maximum rents applicable to each of the following income groups: Extremely Low Income Very Low Income Low Income Moderate Income Middle Income <30% of median household income 31% - 50% of median household income 51% - 80% of median household income 81% - 95% of median household income 96% -120% of median household income "Median household income" means the amount calculated and published by The United States Department of Housing and Urban Development CHUD") each year for the Bremerton Metropolitan Statistical Area (MSA) as the median household or family income, adjusted by HUD for household size. Density Bonus Ordinance - June 6, 1997 1 Section 2. Section 18.40.040 is amended to read as follows: Section 18.40.040 Affordable Housing Requirement in the Mixed Use Town Center and High School Road Districts Section 3. Section 18.40.050 is amended to read as follows: Section 18.40.050 Optional Residential Bonus Density in the Mixed Use Town Center and High School Road Districts Section 4. The following new Chapter 18.90 is added to Title 18 of the Bainbridge Island Municipal Code: Chapter 18.90 AFFORDABLE HOUSING 18.90.010 Purpose. The purpose of this chapter is to implement the policies contained in the Housing Element of the Comprehensive Plan. The Growth Management Act (GMA) requires the City to make adequate provisions for existing and projected housing needs of all economic segments of the community as determined by the Housing Needs Assessment, contained in the Housing Element. The Housing Element reflects the City's goal of dispersing affordable housing throughout all geographic and economic segments of the community, and providing a mixture of housing types, to discourage the development of economic enclaves. The City recognizes that the marketplace is the primary supplier of adequate housing for those in the upper economic groups, but that some combination of appropriately zoned land, regulatory incentives and innovative planning techniques will be necessary to make adequate provisions for the needs of middle and lower income groups (as those terms are defined in 18.06.565). 18.90.020 General provisions relating to optional residential bonus density and required affordable housing. A. Rounding of fractions in affordable housing calculations. In calculating the number of dwelling units or residential building lots that are required or permitted to be constructed pursuant to sections 18.90.030 and 18.90.040, fractions of .5 or greater shall be rounded up to the nearest whole number. B. Siting of affordable dwelling units or residential building lots. The affordable units constructed under the provisions of this chapter shall be included within the parcel of land for which the density bonus is granted. Segregation of affordable housing units from market rate housing units is prohibited. Density Bonus Ordinance - June 6, 1997 2 C. Duration of Affordability. Prior to the final approval of any land use application to which section 18.90.030 or 18.90.040 is applicable, the owner of the affected parcels shall deliver to the city a duly executed covenant running with the land, in a form approved by the city attorney, requiring that the affordable dwellings that are created pursuant to those sections remain affordable housing for a period of thirty years from the commencement date. The commencement date for for-purchase units shall be the date of settlement between the developer and the first owner in one of the applicable income groups. The commencement date for rental units shall be the date the first lease agreement with a renter in one of the applicable income groups become effective. The applicant shall be responsible for the cost and recording of the covenant. D. Construction of Affordable Units. When dwelling units subject to this chapter will be constructed in phases, or over a period of more than 12 months, a proportional amount of affordable housing units must be completed at or prior to completion of the related market rate dwellings, or as approved by the director. E. Phased Development. If a project is to be phased, the proportion of affordable units or residential building lots to be completed with each phase shall be determined as part of the phasing plan approved by the director. F. In subdivisions where the applicant intends to sell the individual unimproved lots, it is the responsibility of the applicant to arrange for the affordable units to be built. G. Attached Housing. In single family developments where there are two (2) or more affordable units, sideyard setbacks may be waived to allow for attached housing units for affordable units only. The placement and exterior design of the attached units must be such that the units together resemble as closely as possible a single-family dwelling. 18.90.030 Optional residential bonus density for affordable housing (all zones). A. Applicability. This section applies to all land use applications, except the following: (a) the construction of one single-family dwelling on one lot that can accommodate only one dwelling based upon the underlying zoning designation, (b) the Mixed-Use Town Center and the High School Road districts (provisions for these zones are contained in sections 18.40.040 and 18.40.050), (c ) Neighborhood Service Centers (NSCs) (affordable housing provisions for NSCs are contained in Chapter 18.66), and (d) the critical areas overlay districts identified in the Comprehensive Plan, which are not eligible for density bonuses. B. Residential bonus density for the development of rental affordable housing. Density for land subject to the provisions of this section may be increased by up to a maximum of 50% above the underlying base density when each of the additional units is provided for households in the extremely low, very low, or low income groups (fractions of 0.5 or greater are rounded up to the nearest whole number): Density Bonus Ordinance - June 6, 1997 3 C. Residential bonus density for the development of for-purchase affordable housing. Density for land subject to the provisions of this section may be increased above the base density by the following amounts: (fractions of 0.5 or greater are rounded up to the nearest whole number): Up to a maximum of 50% above the underlying base density when each of the additional units or residential building lots are provided for households in the extremely low, very low, or low income groups. Up to a maximum of 40% above the underlying base density when each of the additional units or residential building lots are provided for households in the moderate income group. Up to a maximum of 20% above the underlying base density when each of the additional units or residential building lots are provided for households in the middle income group. 18.90.040 Required affordable housing (all zones). A. Applicability. This section applies to all land use applications, except those that are located in the critical areas overlay districts and neighborhood service centers identified in the Comprehensive Plan. With respect to land located within the Mixed Use Town Center and High School Road districts, sections 18.40.040 and 18.40.050 shall apply. For purposes of this section, any land included within a single application or related applications at one location in one or more subdivisions, parts of subdivisions, resubdivisions, or stages of development, regardless of whether any part of the land has been transferred to another party, shall be deemed a single parcel. B. Required affordable housing - developments of eight or more dwelling units or residential building lots. Any land use application to construct eight or more, but fewer than 50, dwelling units or residential building lots on the land subject to the application, must provide at least ten percent (10%) of the number of market-rate dwelling units constructed pursuant to that application as affordable housing for households in the moderate income group or lower income groups. The density may be increased by one market rate bonus unit for each affordable unit provided, up to the maximum density provided for in Sections B & C above. C. Required affordable housing - developments of fifty or more dwelling units. If a land use applicant seeks a permit to construct fifty or more dwelling units on a given parcel, then at least ten percent of the number of market-rate dwelling units constructed pursuant to that land use application must be affordable housing for households in the middle income group or lower income groups. Allowable density shall be deemed increased by the amount necessary to construct the required number of affordable dwelling units. In addition, the affordable dwelling units must be constructed in the following proportions: at least 10% for extremely low, very low or low-income households; plus (+) or minus (-) 60% for moderate-income households; and not more than 30% for middle-income households D. Duration of Applicability. When a new application is filed within 5 years of the a date of an approved land use application that is subject to the affordable housing requirement such that further development will result in 8 or more total dwelling units or residential building lots as in B. of this section or in 50 or more total dwelling units or residential building lots as in C. of this section, this affordable housing requirement section shall apply. 18.90.050 Review Process. A. A preapplication conference will be required for any land use application that includes a proposal for density bonus. B. Residential bonus density proposals will be reviewed concurrently with the primary land use application. C. All land use applications for which the applicant is seeking to include the area of a wetland in the density calculation, shall satisfy the requirements of BIMC 16.20.090(C). The applicant shall enter into a third party contract with the consultant and the City to retain a wetland biologist to address the requirements of BIMC 16.20.090(C). Section 5. This ordinance shall take effect and be in force five days from and after its passage, approval and publication as required by law. PASSED by the City Council this 5t:h day of June , 1997. APPROVED by the Mayor this 9th day of June , 1997. 3 Janet K. West, l~Iayor ATTEST/AUTHENTICATE: Sue Kasper, City Clerk Density Bonus Ordinance - June 6, 1997 5 APPROVED AS TO FORM: Rod P, Kaseguma, City Attorney FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: PUBLISHED: June !1, 1997 EFFECTIVE DATE: June 16, 1997 April 11, I997 June 5, 1997 POSTED: June 11, 1997 ORDINANCE NLgVH3ER: 97-15 Density Bonus Ordinance - June 6, 1997 6