RES 2001-01 AFFORDABLE HOUSING (ESTABLISHING ADMINISTRATIVE RULESRESOLUTION 2001-01 (Formerly 2000-44)
A RESOLUTION OF THE CITY OF BAINBRIDGE ISLAND,
WASHINGTON, ESTABLISHING ADMINISTRATIVE RULES
FOR THE IMPLEMENTATION OF THE AFFORDABLE HOUSING
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, the City Council has adopted Ordinance 2001-01, implementing the
comprehensive plan amendment and amending BIMC 18.90, Affordable Housing; and
WHEREAS, the amendments to BIMC 18.90.020 (C) require an appropriate
administrative procedure which is adopted by resolution, and
WHEREAS, the City Council now desires to adopt the administrative procedure that
provide the program guidelines for Affordable housing; now, therefore,
THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND, WASHINGTON,
DOES RESOLVE AS FOLLOWS:
The following administrative procedures shall guide all transactions for affordable
housing units created as a result of the requirements of Section 18.90.020C (2) of the
Bainbridge Island Municipal Code, except those described in number 7 below:
All affordable homeownership units created as a result of BIMC 18.90 or 18.40
shall be initially sold to income qualified households.
2. Upon initial sale, the income qualified purchaser shall execute the following
documents:
a. Subsidy Agreement, setting the amount and terms of the subsidy.
b. Promissory Note, detailing the requirements for repayment of the subsidy.
c. Deed of Trust, securing the City's interest in the property.
3. The income qualified purchaser shall give the Housing Resources Board a right of
first refusal to purchase the Property.
4
4
5
6
Upon resale at market rate the City will capture a percentage of the appreciation,
net of sales costs, described in the Subsidy Agreement as follows:
1 S` year
93-%97%
2nd year
94%
3r`' Year
90%
4"' Year
87%
5" Year
83%
6" Year
79%
7" Year
75%
8"' Year
71%
9`' Year
67%
10`'' Year
63%
11 "' Year
59%
12`" Year
55%
13"' Year
51%
14`" Year
47%
15" year
42%
16" Year
35%
17`" Year
27%
18"' Year
19%
19`" Year
11%
20`►' — 30``1
0%
The Deed of Trust will be generally subordinate to the primary financing and may
be subordinate to other financing upon the review and approval by the City.
The note shall become due at the time of a change in ownership.
The owner of an affordable housing unit shall not be required to pay to 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.
7. Affordable housing units created, owned, or sponsored by public and private non-
profits already restricting benefit and resale are exempt from the above provisions.
PASSED by the City Council this 24"' day of January 2001.
APPROVED by the Mayor this 25`h day of January 2001.
S
Dwig t Sutton, Mayor
ATTEST/AUTHENTICATE:
usan P. Kasper, City Clerk
FILED WITH THE CITY CLERK: December 6, 2000
PASSED BY THE CITY COUNCIL: January 24, 2001
RESOLUTION NO.: 2001-01