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ORD 2001-03 AFFORDABLE HOUSINGORDINANCE NO. 2001-03 (Formerly 2000-24A) AN ORDINANCE of the City of Bainbridge Island, Washington, related to affordable housing, and amending Section 18.90.020, Section 18.90.030, Section 18.90.040 and Section 18.90.050 of the City of 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 for the provision of affordable housing; and WHEREAS, on June 5, 1997, the City Council passed Ordinance 97-15, implementing the affordable housing policies of the Comprehensive Plan; and WHEREAS, on November 23, 1999, the City Council passed Ordinance 99-36, amending Comprehensive Plan policy H.4.7 related to the affordability requirement for affordable homeownership units: and WHEREAS, the City has identified other revisions to BIMC Chapter 18.90 that will result in increased clarity and consistency with the Comprehensive Plan; now, therefore THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Section 18.90.010 of the Bainbridge Island Municipal Code is amended as follows: 18.90.10 Purpose. The purpose of this chapter is to implement the policies contained in the housing element of the comprehensive plan. The Growth Management Act (GMA) requires the city to make adequate provisions tbr 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 recot,mizes 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 ~vhose incomes are at or below middle and lower income groups (as those terms are defined in BIMC 18.06.565). Section 2. Section 18.90.020 of the Bainbridge Island Municipal Code is amended as follows: 18.90.020 General provisions relating to optional residential bonus densit3' and required and optional affordable housing. A. Rounding of Fractions in Affordable Housing Calculations. In calculating the number of dwelling units or residential building lots that are required or permitted to be constructed pursuant to BIMC l 8.90.030 and 18.90.040, fractions of .5 or greater shall be rounded up to the nearest whole number. Prepared for City Council 1 01/25/01 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 is prohibited. C Duration of Affordability. Prior to the final approval of any land use application to which BIMC 18.90.030 or 18.90.040 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, requiring that the affordable dwellings that are created pursuant to those sections remain affordable housing for a period of 30 years from the commencement date. The commencement date for for purchase units shall be the date of settlement between the developer and the first owner in one of the applicable income groups. The commencement date for rental units shall be the date the first lease agreement with a tenter in one of thc applicable income groups become effective. The applicant shall be responsible for the cost and recording of the covenant. Rental Units. Affordable rental housing units created as a result of the provisions of this chapter shall remain aftbrdable 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. Homeownership Units. All affordable homeo~vnership 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. D__: Required Documentation. Prior to the final approval of any land use application to which BIMC 18.90.030 or 18.90.040 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. D:.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. t~ 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. re-- G. Unimproved Affordable 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. C.. 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 aftbrdable 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. Prepared for Ci,tv Council 2 01/25/0 / I. Definition of Benefit. Where the code limits benefits to those households whose incomes are at or beloxv a specified income, the purpose is to include all categories of income, as defined in BIMC 18.06.565, belo~v the category specified. For example, if the benefit limit is, "to those households whose incomes are at or below loxv-income". households who are extremely low-income. very-low income and low-income may benefit. Section 3. Section 18.90.030 of the Bainbridge Island Municipal Code is amended as follows: 18.90.030 040 Optional residential bonus density bonus for affordable housing (all zones). Applicability. This section applies to all land use applications, except the following: (a) the construction of one single-family dwelling on one lot that can accommodate only one dwelling based upon the underlying zoning designation, (b) the Mixed Use Town Center and the High School Road districts (provisions for these zones are contained in BIMC 18.40.040 and 18.40.050), (c) neighborhood service centers (NSCs) (affordable housing provisions for NSCs are contained in (.~:hapter 18.66 BIMC), and (d) the critical areas overlay districts identified in the comprehensive plan, which are not eligible for density bonuses. Residential Bonus 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 in-the extremely low, very low, or whose incomes are at or below low_-income groups (fractions of .5 or greater are rounded up to the nearest whole number). Co Residential Bonus Density Bonus for the Development of For-Purchase Affordable Housing. Density tbr land subject to the provisions of this section may be increased above the base density by the fbllowing amounts: (fractions of .5 or greater are rounded up to the nearest whole number): 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 in the extremely low, very low, or whose incomes are at or below low:income groups. 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 in the whose incomes are at or below-moderate- income group. 3. Up to a maximum of 20 percent above the underlying base density ~vhen 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 each of the additional units or residential building lots are provided for households in the middle z income group. Prepared for Ci,tv Council 3 01/25/01 AFFORDABLE HOUSING - OPTIONAL (New) For Purchase AFFORDABLE HOUSING- OPTIONAL Up to 50% density bonus if each of the bonus units are affordable to households whose incomes are at or below low-income. Up to a 40% density bonus if each of the bonus units are affordable to households whose incomes are at or below moderate-income. Up to a maximum of 20 percent above the underlying base density when the first ! 0 percent of the housin~ units are affordable to households with incomes at or below moderate-income. The remaining i 0 percent may be affordable to households whose incomes are at or below middle - income. For Rent Up to 50% density bonus when each of the bonus units are affordable to households with incomes at or below low- income. Section 4. Section 18.90.040 of the Bainbridge Island Municipal Code is amended as follows: 18.90.040 030 Required affordable housing (all zones). A. Applicability. This section applies to all land use applications, except those that are located in the critical areas overlay districts and neighborhood service centers identified in the comprehensive plan. With respect to land located within the Mixed Use Tmvn Center and High School Road districts, BIMC 18.40.040 and 18.40.050 shall apply. For purposes of this section, any land included within a single application or related applications at one location in one or more subdivisions, parts of subdivisions, resubdivisions, or stages of development, regardless of whether any part of the land has been transferred to another party, shall be deemed a single parcel. B. Required Affordable Housing - Developments of Eight or More D~velling Units or residential Building Lots. Any land use application to construct eight or more, but fewer than 50, dwelling units or residential building lots on the land subject to the application, must provide at least 10 percent of the number of market rate dwelling units constructed pursuant to that application as affordable housing for households in the whose incomes are at or below moderate-income:gr-eu-p or lowcr income groups, The density may be increased by one market rate bonus unit for each affordable unit provided:, up to the maximum density provided for in BIMC 1 g.90.030(B) and (C). Co Required Affordable Housing - Developments of 50 or More Dwelling Units. If a land use applicant seeks a permit to construct 50 or more dwelling units on a given parcel, then at least 10 percent of the number of market rate dwelling units constructed pursuant to that land use application must be a~brdable housing for households in the whose incomes are at or below middle income group or !owerz income groups. Allowable density shall be deemed increased by the amount necessary to construct the required number of affordable dwelling units. In addition, the affordable dwelling units must be constructed in the following proportions: at least 10 percent for households whose incomes are at or below extremely low, very low or low_-income households, plus or minus 60 percent for households whose incomes are at or below moderate-income houscholds; and not more than 30 percent for households whose incomes are at or below middlezincome households. Prepared for City,' Council 4 o 1/25/o / D. Duration of Applicability. When a new application is filed within five years of the date of an approved land use application that is subject to the affordable housing requirement such that further development ~vill result in eight or more total dwelling units or residential building lots as in subsection (B) of this section or in 50 or more total dwelling units or residential building lots as in subsection (C) of this section, this affordable housing requirement section shall apply. AFFORDABLE HOUSING - REQUIRED (New) Fewer than 8 units More than 8 units AFFORDABLE HOUSING - REOUIRED No requirement Applies to both rental and for-purchase housing. 50 units or more Applies to both rental and for-purchase housing 10% of units must be affordable. The affordable housing must be in the following proportion: 10% of units must be affordable to households with incomes at or below moderate-income. . Density may be increased by one market rate unit for every affordable unit At least 10% affordable to households with incomes at or below low- income. +/- 60% affordable to households with incomes at or below moderate-income. Not more than,30% affordable to households with incomes at or below middle-income. Section 5. Section 18.90.050 of the Bainbridge Island Municipal Code is amended as follows: 18.90.50 Review process. A. A preapplication conference will be required for any land use application that includes a proposal for density bonus. B. Residential bonus density bonus proposals will be reviewed concurrently with the primary land use application. C--:. 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(C). The applicant shall enter into a third party contract with the consultant and the city to retain a wetland biologist to address the requirements of BIMC 16.20.090(C). Prepared for City Council 5 01/25/0/ Section 6. This ordinance shall take effect and be in force five days from and after its passage, approval and publication as required by law. PASSED by the City Council this 24th day of January 2001. APPROVED by the Mayor this 2Yh day of January 2001. D~iwi~ht~~tton, )ayor~~ "-. ATTES T/A UTHENTICATE: sa~n 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: December 6, 2000 January 24, 2001 January 31, 2001 February 5, 2001 2001-03 Prepared for City Council 01/25/0/