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Ordinance No. 2021-39 Extending HDDP ProgramPage 1 of 4 ORDINANCE NO. 2021-39 AN ORDINANCE of the City of Bainbridge Island, Washington, amending Bainbridge Island Municipal Code Section 2.16.020.S. to extend the Housing Design Demonstration Project program. WHEREAS, on August 12, 2009, the City Council adopted Ordinance No. 2009-06, establishing a pilot Housing Design Demonstration Project (“HDDP”) program to allow for the development of projects to increase the variety of housing choices available to residents of all economic segments and to encourage sustainable development through the use of development standard incentives; and WHEREAS, Ordinance No. 2009-06 established a sunset date of August 26, 2012, for the HDDP program; and WHEREAS, on July 18, 2012, the City Council approved Ordinance No. 2012-09, extending the HDDP program until December 31, 2013, to allow time for the City to further evaluate the program; and WHEREAS, the City Council convened an Ad Hoc Committee made up of a Planning Commissioner, three City Councilmembers, a member of the Design Review Board, and a representative from the Housing Resources Board to evaluate and make recommendations on the HDDP program; and WHEREAS, the Ad Hoc Committee recommended changes to the HDDP program, including extending the HDDP program until the end of 2016 to allow time for the construction of approved projects; and WHEREAS, on December 11, 2013, the City Council adopted those recommendations with the approval of Ordinance No. 2013-25, extending the HDDP program to December 31, 2016; and WHEREAS, on September 27, 2016, the City Council adopted Ordinance No. 2016-27, extending the HDDP program until December 31, 2019, to allow time to review the program and compare it to other affordable housing tools the City may choose to utilize, as envisioned by the draft 2016 Comprehensive Plan; and WHEREAS, on February 28, 2017, the City Council adopted Ordinance No. 2017-01, approving the 2016 Comprehensive Plan; and WHEREAS, the 2016 Comprehensive Plan includes several policies related to promotion of sustainable development and affordable housing; and WHEREAS, the purpose of the existing HDDP program is to allow the development of housing design demonstration projects that increase the variety of housing choices available to residents across underserved portions of the socioeconomic spectrum, promote compact, low- Page 2 of 4 impact development where it is most appropriate, and encourage high quality and innovation in building design, site development, and “green” building practices; and WHEREAS, the Affordable Housing Task Force was created by the City Council on May 9, 2017, and was instructed to make recommendations for specific actions, programs, and strategies the City of Bainbridge Island and the City Council can take in the near-term to improve access to affordable housing across the economic spectrum; and WHEREAS, the City’s Affordable Housing Task Force issued a final report in July 2018 with many recommendations on how to increase housing affordability and diversity on Bainbridge Island, which include similar goals as the HDDP program described above; and WHEREAS, on October 1 and 22, 2019, a majority of the City Council indicated support for extending the HDDP program until December 31, 2021; and WHEREAS, on December 10, 2019, the City Council approved Ordinance No. 2019-32 which narrowed the program to only apply to projects that provided at least 50% of housing units as affordable housing and extended the HDDP program until December 31, 2021; and WHEREAS, the City continues to work on accomplishing many of the recommendations made by the Affordable Housing Task Force’s final report and to implement City green building standards, and both affordable housing and green building are required as part of the HDDP program; and WHEREAS, at the time Ordinance No. 2019-32 was approved, the City was working on preliminary design concepts for the Suzuki Affordable Housing project, which was being planned as an HDDP project with more than 50% affordable housing, however development at the Suzuki property was removed by the City Council from the City’s priority affordable housing work list in 2020; and WHEREAS, although the City has not received any formal development proposals that plan to utilize the HDDP program since the program was extended and narrowed at the end of 2019, there was public comment at the October 12, 2021 City Council meeting that there is at least one affordable housing project in a conceptual phase that would utilize the HDDP program; and WHEREAS, on October 12, 2021, the City Council voted 6-0 to support a two-year extension of the HDDP program until December 31, 2023 and referred the issue to the Planning Commission for consideration and a recommendation; and WHEREAS, the Planning Commission discussed a related ordinance, Ordinance No. 2021-35, on October 28, 2021 and held a public hearing on that ordinance on November 18, 2021; and WHEREAS, after closing the public hearing, the Planning Commission further discussed the HDDP program and voted to recommend approval to the City Council of a revised version of Page 3 of 4 Ordinance No. 2021-35, which would extend the HDDP program for two years and make other changes; and WHEREAS, in recommending approval of Ordinance No. 2021-35, the Planning Commission additionally recommended revising the HDDP program to require that affordable housing be targeted to low-income (or below) households, and further recommended converting the Innovative Site Development Scoring Method to a simple checklist; and WHEREAS, notice was given on November 4, 2021 to the Office of Community Development at the Washington State Department of Commerce in conformance with RCW 36.70A.106 related to Ordinance No. 2021-35; and WHEREAS, on December 7, 2021, the City Council considered a version of Ordinance No. 2021-35 that would have extended the program and which integrated the additional program changes recommended by the Planning Commission and City staff; and WHEREAS, during the City Council’s discussion on December 7, 2021, the Council passed two motions, and via the first motion the Council directed the City Manager to prepare this ordinance to extend the HDDP program in its current form for one year, and via the second motion the Council directed the City Manager to include an agenda item on the December 14, 2021 Council agenda to set a public hearing for a future date regarding Ordinance No. 2021-35; and WHEREAS, on December 14, 2021, the City Council considered setting a public hearing for February 8, 2022 regarding Ordinance No. 2021-35 to further consider the HDDP program changes recommended by the Planning Commission and City staff; and WHEREAS, on December 14, 2021, the City Council considered this Ordinance No. 2021-39, and took action via this ordinance to extend the HDDP program for one additional year in its current form while further changes to the program are being considered. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND, WASHINGTON, DOES ORDAIN AS FOLLOWS: Section 1. Section 2.16.020.S.10. of the Bainbridge Island Municipal Code is hereby amended to read as follows: 10. Demonstration Period. This subsection S and related provisions of BIMC Titles 2, 17, and 18 shall expire on December 31, 20212022. Section 2. Severability. Should any section, paragraph, sentence, clause, or phrase of this ordinance, or its application to any person or circumstance, be declared unconstitutional or otherwise invalid for any reason, or should any portion of this ordinance be preempted by state or federal law or regulation, such decision or preemption shall not affect the validity of the remaining portions of this ordinance or its application to other persons or circumstances. Page 4 of 4 Section 3. This ordinance shall take effect and be in force five (5) days from its passage and publication as required by law. PASSED BY THE CITY COUNCIL this 14th day of December, 2021. APPROVED BY THE MAYOR this 14th day of December, 2021 Rasham Nassar, Mayor ATTEST/AUTHENTICATE: Christine Brown, MMC, City Clerk FILED WITH THE CITY CLERK: December 10, 2021 PASSED BY THE CITY COUNCIL: December 14, 2021 PUBLISHED: December 24, 2021 EFFECTIVE DATE: December 29, 2021 ORDINANCE NUMBER: 2021-39