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ORD NO. 2018-31 LIMITING THE HOUSING DESIGN DEMONSTRATION PROJECT PROGRAM TO AFFORDABLE HOUSINGORDINANCE NO. 2018-31 AN ORDINANCE of the City of Bainbridge Island, Washington, limiting the Housing Design Demonstration Project program to projects consisting entirely of affordable housing. 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 Page 1 of 4 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 socio-economic spectrum, promote compact, low -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 goals of the existing HDDP program are to increase the housing supply and the choice of housing styles available in the community, to promote socio- economic diversity by adding to the stock of income -qualified housing, to encourage development of smaller homes, at reasonable prices, in neighborhoods attractive to a mix of income and age levels, and to demonstrate that innovative design and building techniques (conserving water and energy, using sustainably sourced materials, limiting environmental impacts) are compatible with market considerations; and WHEREAS, the Affordable Housing Task Force (AHTF) 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 Council has expressed significant concerns about development and growth in the City under current regulations in the context of the vision and goals of the City's Comprehensive Plan, and wishes to revise development regulations to best accommodate growth and development in both general and specific ways; and WHEREAS, Ordinance No. 2018-02 imposed a temporary six-month moratorium on the acceptance of certain development (development moratorium), stating the City Council's concerns regarding likely adverse impacts related to growth and development under existing regulations; and WHEREAS, Tier 3 HDDP projects require 50% of dwelling units be designated for affordable housing and these Tier 3 HDDP projects are exempt from the development moratorium; and WHEREAS, the Planning Commission and Design Review Board are working on revisions to Title 17 of the Bainbridge Island Municipal Code (BIMC) relating to subdivisions to improve consistency between subdivision development and the City's Comprehensive Plan; and WHEREAS, the Planning Commission expressed concern during project review and recommendation meetings related to HDDP land use applications that the existing Page 2 of 4 HDDP program is difficult to implement and is not achieving its stated purpose and goals; and WHEREAS, on June 21, 2018, the Planning Commission recommended that the City Council suspend the existing HDDP program until work on revisions to Title 17 BIMC are completed; and WHEREAS, the AHTF Final Report, as accepted by the City Council on July 24, 2018, contains several priority recommendations including amending the BIMC to facilitate an increase in the diversity of housing types and supply of affordable housing; and WHEREAS, on August 28, 2018, the City Council discussed the issue of suspending the HDDP program, as recommended by the Planning Commission, and held a public hearing on Ordinance No. 2018-31; and WHEREAS, on August 13, 2018, notice was given to the Office of Community Development at the Washington State Department of Commerce in conformance with RCW 36.70A.106. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND, WASHINGTON, DOES ORDAIN AS FOLLOWS: Section 1. Section 2.16.020.Q.2 of the Bainbridge Island Municipal Code is hereby amended to read as follows: 2. Applicability. This subsection Q is applicable to all properties located within the Winslow sanitary sewer system service area. An application for a housing design demonstration project may be applied to single-family residential subdivisions, mixed-use/multifamily and multifamily developments. The city will only accept applications for housingdesin demonstration projects where 100% of the housing units created will constitute affordable housing. as defined by BIMC 18.36.030.16. for one or more of the income groLips defined in BIMC 18.21.020.A. Since the purpose is to provide housing projects as demonstrations, the city will accept projects for consideration and approval prior to the sunset date of the ordinance codified in this chapter. The city will limit acceptance of Tier 3 and 4 projects outlined in this section to three projects in each tier. Section 2. This ordinance shall take effect and be in force five (5) days from its passage, approval, and publication as required by law. Page 3 of 4 PASSED BY THE CITY COUNCIL this 28th day of August, 2018. APPROVED BY THE MAYOR this 28th day of August, 2018. Kol Medina, Mayor ATTEST/AUTHENTICATE: i •� FILED WITH THE CITY CLERK: August 24, 2018 PASSED BY THE CITY COUNCIL: August 28, 2018 PUBLISHED: September 7, 2018 EFFECTIVE DATE: September 12, 2018 ORDINANCE NUMBER: 2018-31 Page 4 of 4