RES 99-39 INTERIM ADMINISTRATIVE RULES FOR IMPLEMENTATION OF AFFORDABLE HOUSING PROGRAMRESOLUTION No. 99-39
A RESOLUTION OF THE CITY OF BANBRDGE ISLAND,
WASHINGTON E'STABLISHNG INTERN ADM]]NISTRATWE
RULES FOR THE IMPLEMENTAION OF THE AFFORDABLE
HOUSNG PROGRAM.
WHEREAS, the City amended its Comprehensive Plan by Ordinance 99-36 eliminating
the requirement that affordable homeownership units created under the City of Bainbridge
Island Comprehensive Plan remain affordable for thirty years; and
WHEREAS, there are several affordable homeownership units already approved; and
WHEREAS, there axe no current administrative guidelines to implement the program
now, therefore,
THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND, WASHINGTON,
DOES RESOLVE AS FOLLOWS:
It is the intent of the City of Bainbridge Island to provide timely guidance for the
implementation of Ordinance 99-36, adopted November 23, 1999, amending the Housing
Element of the Comprehensive Plan eliminating the 30-year affordability requirement for
affordable housing units.
These interim administrative regulations, as outlined in Exhibit A, attached, will be in
effect for six months from the date of adoption of this resolutibn.
PASSED by the City Council this 22 th day of December, 1999.
APPROVED by the Mayor this 23 th day of December, 1999.
ATTEST/AUTHENTICATE:
~per, City Clerk
FILED WITH THE CITY CLERK:
PASSED BY THE CITY COUNCIL:
RESOLUTION No. 99- 39
December 1,7,1999
December 22 .... 1999.
December 15, 1999
Exhibit A (Resolution 99-39)
The interim administrative procedures implementing 99-36 shall include the following
requirements:
All affordable homeownership units created as a result of BIMC 18.90 or 18.40 shall be
initially sold to income qualified households.
o
The sale shall be subject to a note secured by a Deed of Trust allowing the City to capture
the difference between the 'initial appraised value and the actual sales price ("the subsidy")
at the time of resale. In addition the City will capture a prorated share of the appreciation
attributable to "the subsidy", provided the purchaser retains ownership for five years from
the date of initial closing.
,
If the initial purchaser sells prior to the end of the five years, the City will capture an
additional portion of the seller's share of the appreciation based on the following sliding
scale, exclusive of any out-of pocket expenses, including actual cash down payments and
the portion of the payments credited to principal:
ao
Within the first year, 80%.
Within the second year, 60%
Within the third year, 20%
Within the fourth year, 15%
Within the fifth year, 10%
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The Deed of Trust will be generally subordinate to the primary financing and may be
subordinate to other financing upon the review and approval of the City.
5. The note shall become due at the time of a change in ownership.
,
The note shah become due at the time the unit is no longer the primary residence of the
qualified owner during the first five years. The unit may not be rented to others within the
first five years.
,
The owner of an affordable housing unit shah not be required to payto the City any
shortfall resulting from the resale of the unit.
,
Any proceeds resulting from the sale of affordable housing shall be placed in the City's
Housing Trust Fund.
Projects owned by public and private non-profits already restricting benefit and resale are
exempt from the above provisions.