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ORD 2005-08 AFFORDABLE HOUSING (RESIDENTIAL DEVELOPMENTS)ORDINANCE 2005-08 An Ordinance of the City of Bainbridge Island, pertaining to requirements for affordable housing in residential developments, repealing Sections 18.40.040, 18.90.030 and 18.90.060, and amending Sections 18.40.050, 18.90.010, 18.90.020, 18.90.040 and 18.90.050 of the Bainbridge Island Municipal Code. WHEREAS, the City adopted a Comprehensive Plan on September 1, 1994, subsequently amended, which contains a Housing Element that establishes goals and policies to encourage the availability of affordable housing to all economic segments, promote a variety of densities and housing types, and encourage preservation of existing housing stock; and WHEREAS, the City Council adopted Ordinance 97-15 on June 5, 1997, establishing BIMC Chapter 18.90, Affordable Housing, which requires that new residential developments include a percentage of affordable housing; and adopted Ordinance 99-17 on September 8, 1999, which amended BIMC Sections 18.40.040 and 18.40.050 to create affordable housing requirements specific to the Mixed Use Town Center and High School Road Zones; and WHEREAS, BIMC Chapter 18.90 and BIMC Section 18.40.050 also provide for an optional affordable housing program; and WHEREAS, the City now has had sufficient time and experience to assess the affordable housing requirements contained in BIMC Chapter 18.90 and BIMC Section 18.40.040, and determined that the program is not working as originally intended; and WHEREAS, in September 2003 the Mayor appointed the Ninety-Day Affordable Housing Task Force, charged with reviewing the City's housing program; and City Council First Reading 1 March 9, 2005 WHEREAS, the Task Force has recommended a number of revisions to the City's housing program, as well as new housing initiatives, and the City's 2005 work program includes a commitment to strengthening and broadening the housing program; and WHEREAS, the City has determined that the affordable housing requirements contained in BIMC 18.40 and 18.90 should be repealed in the interim, but that the optional affordable housing program will remain in place; and WHEREAS, the repeal of the affordable housing requirement will not affect the City's policies and regulations that address Growth Management Act housing issues and implement goals and policies of the Housing Element by allowing for accessory dwelling units, manufactured homes, multi-family housing, and a variety of housing types and sizes; and WHEREAS, through its Housing Trust Fund, the City will continue to partner with non-profit housing agencies to provide housing for low-income households and special needs citizens; now therefore, THE CITY COUNCIL OF THE CITY OF BAINBRDGE ISLAND, WASHINGTON DOES ORDAIN, AS FOLLOWS: Section 1. Section 18.40.040 of the Bainbridge Island Municipal Code is repealed as follows: proposed bas: reaidentia! ~ ~ TM r~. affordable housing City Council First Reading 2 March 9, 2005 18.90.020. affcrda5!: :quar: fcctag: h~,,~;~ ..... ;~+~ ~g ~,,~+;~ A o~A ~ ~F +~; .... +;~ ~ .... 1~;~ ~ ~ .... ;ol it ....... + .r ~. app!i ati .................................................... ~.. square foot shall be e;tcblizh~d b~ City Council First Reading 3 March 9, 2005 Section 2. Section 18.40.050 of the Bainbridge Island Municipal Code is amended as follows: ~ 18.40.040 Optional residential and commercial FAR bonus in the Mixed Use Town Center and High School Road districts. Eligible properties may achieve a maximum level of development above thc base FAR, as provided for in BIMC 18.40.030, by using one, or a combination of, the following FAR bonus provisions. The FAR bonus provisions may be combined to achieve the maximum level of development established for each district. In no case shall the total commercial, residential or mixed use FAR exceed the maximum FAR as provided for in BIMC 18.40.030. A. Optional Affordable Housing. 1. FAR Bonus. Up to 100 percent of the maximum residential FAR bonus may come from providing affordable housing as defined in BIMC 18.06.565; provided, that the difference between the base residential FAR and the maximum residential FAR shall be dedicated to affordable housing Rz:identia! portion of the total floor area that is of common use and benefit to the entire residential development (for example, interior halls, stairwells, laundry rooms, exercise rooms) may be included in the calculation of the affordable housing component. This portion shall be the same percentage as the affordable housing provided. For example, if 20 percent of the living unit floor area is for affordable housing, then 20 percent of the common floor area may be included in the total affordable housing calculation. Development of the optional affordable housing shall be in accordance with BIMC 18.90.020. a. Residential development less than 10,000 square feet. Any residential development less than 10,000 square feet that utilizes the affordable housing FAR bonus provision shall provide all of the bonus square footage for households in the moderate or lower income groups. b. Residential development of 10,000 square feet but less than 60,000 square feet. Any residential development project of 10,000 square feet but less than 60,000 square feet shall allocate the bonus square footage as follows: i. All of the bonus square footage may be provided for households in the moderate income group; or City Council First Reading 4 March 9, 2005 ii. The bonus square footage may be provided in the following proportions: 50 percent for households in the moderate income groups; 20 percent for households in the extremely low, very low or low income groups; and 30 percent for households in the middle income group. c. Residential development of 60,000 square feet or more shall allocate the bonus square footage in the following proportions: 10 percent shall be provided for households in the lower income groups; 60 percent shall be provided for households in the moderate income group; and 30 percent shall be provided for households in the middle income group. The optional affordable housing bonus is summarized in the table below. Optional Affordable Housing Bonus Residential developmentResidential development of 10,000 Residential development less than 10,000 sq. ft. sq. ft. but less than 60,000 sq. ft. more than 60,000 sq. ft. AFFORDABLE 100 percent of bonus for all .1 of bonus for low or HOUSING moderate lower FAR BONUS 100 percent of bonus for OR .6 of bonus for moderate moderate or lower .2 of bonus for low or lower .3 of bonus for middle .5 of bonus for moderate .3 of bonus for middle Section 3. Section 18.90.010 of the Bainbridge Island Municipal Code is amended as follows: 18.90.010 Purpose. The purpose of this chapter is to implement the policies contained in the housing element of the comprehensive plan, by providing an optional program for the construction of affordable housing in new single-family and multifamily residential developments. 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 households whose incomes are at or below middle income (as those terms are defined in BIMC 18.06.565). Section 4. Section 18.90.020 of the Bainbridge Island Municipal Code is amended as follows: 18.90.020 General provisions relating to required an~ optional affordable housing. A. Rounding of Fractions in Affordable Housing Calculations. In calculating the number of dwelling units or residential building lots that are ~ permitted to be City Council First Reading 5 March 9, 2005 constructed pursuant to BIMC 18.90.030 and !$.99.9~.9 fractions of .5 or greater shall be rounded up to the nearest whole number. B. Siting of Affordable Dwelling Units or Residential Building Lots. The affordable units constructed under the provisions of this chapter shall be included within the parcel of land for which the density bonus is granted. Segregation of affordable housing units within the development from market rate housing units~ shall be avoided whenever practical. C. Duration of Affordability. 1. Rental Units. Affordable rental housing units created as a result of the provisions of this chapter shall remain affordable for a period of 30 years from the time of first occupancy and shall be secured by recorded agreement and covenant running with the land, binding all the assigns, heirs and successors of the applicant. 2. Home Ownership Units. All affordable homeownership units created as a result of the provisions of this chapter shall be initially sold to income qualified households and thereafter subject to a mechanism that is specified in an appropriate administrative procedure adopted by resolution by city council allowing the city to capture a share of the appreciation when the unit is sold at market rate. The city's share of the proceeds shall be placed in its housing trust fund. 3. A unit that is owned, or sponsored by a public or private nonprofit agency that already restricts benefit and resale is exempt from the above provisions C. 1 and C.2. D. Required Documentation. Prior to the final approval of any land use application to which BIMC 18.90.030 er !$.99.9~.9 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, identifying the units or parcels and acknowledging their obligation under this section. The applicant shall be responsible for the cost and recording of the covenant. E. 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. F. 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. G. Unimproved Lots To Be Sold. 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. H. Attached Housing. In single-family developments where there are two or more affordable units, side yard 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. I. Definition of Benefit. Where the code limits benefits to households whose incomes are at or below a specified income, the purpose is to include all categories of income, as defined in BIMC 18.06.565 below the category specified. For example, if the benefit limit is, "to those households whose incomes are at or below low-income," households who are extremely low-income, very-low income and low-income may benefit City Council First Reading 6 March 9, 2005 Section 5. follows: Section 18.90.030 of the Bainbridge Island Municipal Code is repealed as .... ~+h ..... ~ ~-n cA. 10% of un!ts must be affordable. The purchase housing, affordable housing must be in the moderate income, houeehcld: with income: at cr be!~':,' Deazi%' may be increased ~ ..... 1 .... ' City Council First Reading 7 March 9, 2005 - Not more than 20% affcrdab!e to households with incomes at or he!c;;' middle income. Section 6. Section 18.90.040 of the Bainbridge Island Municipal Code is amended as follows: 141491h040 18.90.030 Optional residential density bonus for affordable housing ~-" A. Applicability. This section applies to all land use applications, except the following: (1) the construction of one single-family dwelling on one lot that can accommodate only one dwelling based upon thc underlying zoning designation, (2) the Mixed Use Town Center and the High School Road districts (provisions for these zones are contained in BIMC 18.40.040 ~nd !E.4O.O50, (3) neighborhood service centers (NSCs) (affordable housing provisions for NSCs are contained in Chapter 18.66 BIMC), and (4) the critical areas overlay districts identified in the comprehensive plan, which are not eligible for density bonuses. B. Residential Density Bonus 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 percent above the underlying base density when each of the additional units is provided for households whose incomes are at or below low-income~.~.v..~rc~*; .... var C. Residential Density Bonus 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: (~act;.ens ^*' < or ~, ................ up to the nearest ':,'hole n-~x'~er): 1. Up to a maximum of 50 percent above the underlying base density when each of the additional units or residential building lots are provided for households whose incomes are at or below low-income. 2. Up to a maximum of 40 percent above the underlying base density when each of the additional units or residential building lots are provided for households whose incomes are at or below moderate-income. 3. Up to a maximum of 20 percent above the underlying base density when the first 10 percent of the housing units are affordable to households with incomes at or below moderate-income. The remaining 10 percent may be affordable to households whose incomes are at or below middle-income. Affordable Housing - Optional Affordable For Purchase For Rent Housing - Up to 50% density bonus if each of the bonus units are Up to 50% density bonus when Optional affordable to households whose incomes are at or below each of the bonus units are low-income, affordable to households with Up to a 40% density bonus if each of the bonus units are incomes at or below low- affordable to households whose incomes are at or below income. moderate-income. Up to a maximum of 20% above the underlying base density when the first 10% of the housing units are affordable to households with incomes at or below moderate-income. The remaining 10% may be affordable City Council First Reading 8 March 9, 2005 to households whose incomes are at or below middle- income. Section 6. follows: Section 18.90.050 of the Bainbridge Island Municipal Code is amended as 18.99.959 18.90.040 Review process. A. A preapplication conference will be required for any land use application that includes a proposal for density bonus. B. Residential density bonus proposals will be reviewed concurrently with the primary land use application. 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. Section 7. follows Section 18.90.060 of the Bainbridge Island Municipal Code is repealed as All affordable home e. wnerzhip units conztracted or required to be con:,tracted l~y thig aa ~enfie~ zr z"4p!emente~ Ey the fc!!cwing requirements: 2. City Council First Reading 9 March 9, 2005 Section 8. To the extent that the requirements set forth in the provisions of this ordinance are inconsistent with requirements set forth in other City code provisions, the requirements set forth in this ordinance shall supersede the requirements in the other City code provisions. Section 9. This ordinance shall take effect 5 days after its passage, approval and publication as required by law. PASSED by the City Council this 13th day of April 2005. APPROVED by the Mayor this 13th day of April, 2005. DARLENE KO13,D(SNOWY, Mayor APPROVED AS TO FORM: ROD P. KASEGUMA, City Attorney FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: PUBLISHED: EFFECTIVE DATE: ORDINANCE NUMBER: March 1,2005 Apfil13,2005 April20,2005 April25,2005 2005-08 City Council First Reading March 9, 2005 10