ORD 99-14 AFFORDABLE HOUSINGORDINANCE NO. 99-14
AN ORDINANCE of the City of Bainbridge Island,
Washington, relating to affordable housing and amanding
Section 18.06.56S of the City of Bainbridge Island Municipal
WHEREAS, on June 5, 1997, the city council adopted Ordinance 97-15, impl~nxenting
policies of the housing element of the comprehensive plan and creating Chapter 18.90,
Affordable Housing, relating to density bonus provisions; and
WHEREAS, Section 18.06.565 of Chapter 18.06, De~ntions, defines "median household
income" and specifies that it means the Bremerton Metropolictan Statistical Area (MSA)
median household income; and
WHEREAS, recent research indicates that for the purposes of creating affordable housing,
Bainbridge Island income~ and housing costs correlate more closely to Seattle/King County
than to Bremerton/Kitsap County. Now, therefore
THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND, WASHINGTON, DO
ORDAIN, as follows:
Section 1. Section 18.06.565, "Affordable housing" is hereby mended as follows:
"Affordable housing" or "affordable dwelling unit" (formerly '~tUD-Defined
AffordableHousing") 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 DeparUnent of Planning and Comnlunity Development shall
calculate and publish annually the maxima purchase prices and maximum rents
applicable to each of the following income groups:
Extrcrncly Low Income
Very Low Income
Low Income
Moderate Income
Middle Income
<30% of median household income
31% - 50% of median household income
51% - gO°/o of median household income
81% - 95% of median household income
96% - 120% of median household income
"Median household income" means the mount calculated and published by The
United States Department of Housing and Urban Development ("HUD") each year for the
Bz_..~a:n Seattle Metropolitan Statistical Area (MSA) as the median household or family
income, adjusted by HUD for household size.
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.
pASSl~.r~ by the City Council this 28 day of April ,1999.
APPROVED by the Mayor tiffs 29 day of April ,1999.
ATTEST/AUTHENTICATE:
~~, ity Cl~k
APPROVED AS TO FORM:
Rod P, KasoSuma, City Attorney
FILED WITH THE CITY CLERK: March 10, 1999
PASSED BY THE CITY COUNCIL: April 28, 1999
PUBLISHED: May 5, 1999
EFFBCTIVE DATE: May 10, 1999
POSTED: l~iay 5, 1999
ORDINANCE NUMBER:
99-14
2
City of Bainbridge Island
PLANNING AND COMMUNITYDEVELOPMENT
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TO: City Council
FROM: Marti Stave, Senior Planner
DATE: March 18, 1999
RE: Affordable Housing program assumptions
Since adopting the Affordable Housing ordinance (97-15) in 1997, there has been some progress
in getting units on the ground. The first units are now being built and we have encountered the
first problems with the program. When preparing the ordinance in 1996, we relied on data that
had been gathered for the needs assessment of the Housing Element of the comprehensive plan.
Since then conditions have changed considerably. While the cost of housing on Bainbridge
Island has risen steadily, the cost of housing in some areas of Kitsap County has actually
declined. At the same time median household incomes have risen more slowly in Kitsap County
than on Bainbridge Island. The problem comes when we try to use Kitsap County incomes to set
sales prices for affordable units on Bainbridge Island. The resulting figures are artificially low
for our area.
I have had conversations with Heather Ballash of the Department of Community, Trade and
Economic Development about this problem. She tells me that other jurisdictions use whatever
figures fit there needs as long as they can be justified. The reason we would use the Seattle
PMSA median household incomes is that the figures are readily available from the USHUD
office is Seattle, whereas Bainbridge Island figures are developed by the Puget Sound Regional
Council and they are estimated for the 2 years previous.
For 1997, the median incomes were as follows: (the comparison is made for 1997 because that is
the latest figure we have for Bainbridge Island.)
Statistical Area Bremerton MSA Bainbridge Island Seattle PMSA
1997 Median HH Income $48,100 $58,981 $59,000
1997 Median Home Sales price $136,000 $229,077 $199,000
In addition, developers tell us that development costs are 12% - 15% higher on Bainbridge Island
than in the rest of the County.
In order for our affordable housing program to work and to provide housing for Bainbridge
Island residents we need to adjust our assumptions about income. This is an urgent matter.
In the interest of timing on this ordinance, if you have any questions please call me ahead
of time so we can discuss it. I am at 780-3763.