ORD 2000-40 AFFORDABLE HOUSINGORDINANCE NO. 2000-40
AN ORDINANCE of the City of Bainbridge Island, Washington,
relating to affordable housing, and authorizing affordable home
ownership units to be covered by BIMC Chapter 18.90 or the
requirements of this Ordinance, at the option of certain
developers, first owners and applicants.
WHEREAS, by Ordinance No. 99-36, passed on November 23, 1999, the City Council
amended Housing Element Policy H 4.7 of the Comprehensive Plan to replace the 30-year
home ownership affordability requirement with an alternative mechanism; and
WHEREAS, the alternative mechanism provides that the affordable home ownership
units shall be sold initially to income qualified households, shall allow the City to capture the
difference between the initial appraised value and the initial sales price, plus a prorated share
of the appreciation when the unit is sold at market rate, and shall provide for the City's share
of the proceeds to be placed in the City's Housing Trust Fund; and
WHEREAS, by Resolution No. 99-39, adopted on December 22, 1999 and effective for
six months, the City Council adopted interim administrative regulations for implementing
Ordinance No. 99-36; and
WHEREAS, on September 13, 2000, the City Council decided not to pass proposed
Ordinance No. 2000-24, which would have implemented Housing Element Policy 4.7.1 as
adopted by Ordinance No. 99-36; and
WHEREAS, the City Council desires to review and consider further proposed
Ordinance No. 2000-24 and the implementation of Housing Element Policy 4.7.1; and
WHEREAS, many developers and owners of lots on which affordable home ownership
units will be constructed have relied upon Ordinance No. 99-36 and Resolution No. 99-39
either to plan for construction of such units or to prepare land use applications for submittal to
the City; and
WHEREAS, the City Council desires to allow such developers and owners to utilize the
requirements and mechanisms stated in Resolution No. 99-39, if they so choose; now,
therefore
THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND, WASHINGTON,
DO ORDAIN AS FOLLOWS:
Section 1. All affordable home ownership units constructed or required to be
constructed by BIMC Chapter 18.90 as pan of a land use application that was complete on or
before September 25, 2000 shall, at the option of the developer, first owner or applicant, be
subject to (1) BIMC Chapter 18.90, as in effect on the date of passage of this Ordinance, or (2)
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BIMC Chapter 18.90, as in effect on the date of passage of this Ordinance, as amended or
supplemented by the following requirements:
1. All affordable homeownership units ("units") shall be initially sold to income
qualified households.
The sale shall be subject to a note secured by a Deed of Trust, allowing the City
to capture, at the time of resale, the difference between the initial appraised
value and the initial actual sales price (the "subsidy") at the time of resale. In
addition, the City shall 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 shall
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:
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 %
The Deed of Trust shall 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 shall 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 a unit shall not be required to pay to the City any shortfall
resulting from resale of the unit.
,
Any proceeds resulting from the sale of a unit shall be placed in the City's
Housing Trust Fund.
A unit shall not be required to remain affordable for 30 years.
10.
A unit that is owned, or sponsored, by a public or private non-profit agency
that already restricts benefit and resale is exempt from the above provisions.
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Section 2.
its passage, approval and publication as required by law.
PASSED by the City Council this 2 9 day of Novmeber ,2000.
APPROVED by the Mayor this 30 day of November ,2000.
Dwihht Rutton, Mayor
This ordinance shall take effect and be in force five days from and after
ATTEST/AUTHENTICATE:
SUsan P. Kasper, City Clerk
APPROVED AS TO FORM:
Rod P. Kaseguma, City Attorney
FILED WITH THE CITY CLERK:
PASSED BY THE CITY COUNCIL:
PUBLISHED:
EFFECTIVE DATE:
ORDINANCE NUMBER:
October 18, 2000
November 29, 2000
December 6, 2000
December 11, 2000
2000-40
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