ORD NO. 2018-30 ESTABLISHING A FEE-IN-LIEU OPTION FOR CERTAIN LOTS WITH AFFORDABLE HOUSING RESTRICTIONSORDINANCE NO. 2018-30
AN ORDINANCE of the City of Bainbridge Island,
Washington, relating to the City's voluntary affordable
housing program; adding a new section to Chapter 18.21
BIMC to provide for an optional fee -in -lieu for certain lots
with affordable housing restrictions; addressing the
development of certain unimproved lots; and granting
interpretative authority.
WHEREAS, former Chapter 18.90 BIMC contained an optional program for the construction of
affordable housing in new single-family and multifamily residential developments; and
WHEREAS, on November 9, 2011, the City Council adopted Ordinance No. 2011-02, repealing
Chapter 18.90 BIMC and replacing it with a Chapter 18.21 BIMC that provides for substantially the
same optional program for the construction of affordable housing in new single-family and
multifamily residential developments; and
WHEREAS, at least one developer has taken advantage of the optional program to obtain bonus
density in exchange for creating affordable residential building lots as part of its development; and
WHEREAS, several affordable residential building lots created pursuant to the optional program
have remained unsold for lack of finding an income -qualified buyer; and
WHEREAS, Chapter 3.38 BIMC provides for the City of Bainbridge Island Housing Trust Fund,
which may accept funds or revenues to support the development and preservation of affordable
housing on Bainbridge Island; and
WHEREAS, the City Council may direct specific funding or revenues to the City of Bainbridge
Island Housing Trust Fund; and
WHEREAS, a goal of the Housing Element of the City's Comprehensive Plan is for the City to
increase support for the Housing Trust Fund and explore new sources of funding for the
development and preservation of affordable housing; and
WHEREAS, on September 13, 2018, the Planning Commission discussed Ordinance No. 2018-
30, and set a public hearing on Ordinance No. 2018-30 for September 27, 2018; and
WHEREAS, on September 27, 2018, the Planning Commission lacked a quorum and was
unable to hold the public hearing on Ordinance No. 2018-30; and
WHEREAS, on October 25, 2018, the Planning Commission conducted a public hearing on
Ordinance No. 2018-30 and, after closing the public hearing, recommended approval to the City
Council; and
WHEREAS, on November 13, 2018, the City Council discussed Ordinance No. 2018-30 and set
a public hearing on Ordinance No. 2018-30 for November 27, 2018; and
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WHEREAS, on November 27, 2018, the City Council conducted a public hearing on Ordinance
No. 2018-30; and
WHEREAS, notice was given on October 26, 2018, 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 18.21.0201 of the Bainbridge Island Municipal Code is amended to read as
follows:
Unimproved Lots to Be Sold. in subdivisions wWhere the applicant intends to sell
the individual unimproved lots created as a result of the provisions of this chapter, it
is the responsibility of the applicant to arrange for the affordable units to be built.
Section 2. A new section is added to chapter 18.21 of the Bainbridge Island Municipal Code to read
as follows:
18.21.040 Optional Fee -In -Lieu.
A. The owner of an affordable residential building lot constructed or created as a
result of the provisions of this chapter, as now or previously codified, as part of a
land use application approved on or before June 1, 2008, may make a financial
contribution, as described in this section, to the city's housing trust fund instead of
complying with the requirements of BIMC 18.21.020, as now or previously
codified, to obtain or maintain the bonus density allowed under this chapter, as now
or previously codified.
B. The amount of such financial contribution to the city's housing trust fund shall be
set by the City Manager, subject to the following restrictions:
1. The amount must be at least 60% of the fair market value of the affordable
residential building lot at the time of sale. A certified appraiser shall
determine the affordable residential building lot's fair market value. The
appraisal will assume that sale of the lot will not be restricted to only
income -qualified individuals. The owner will pay for the appraisal by a
certified appraiser acceptable to the city.
2. The amount must be deposited into the city's housing trust fund within 14
days of the closing of the sale of the affordable residential building lot.
3. In circumstances where development of the the affordable residential
building lot is restricted by conditions on the face of a plat or short plat, the
owner must initiate and pay for a plat amendment to remove or modify such
conditions. Approval of such a plat amendment must be obtained before the
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lot may be sold to an individual who is not income -qualified, and such
approval will be conditioned upon a financial contribution to the city's
housing trust fund under this section.
4. Prior to initiating a plat amendment, the owner must demonstrate that they
attempted, in good faith, to locate an income -qualified buyer interested in
purchasing the affordable residential building lot and were unsuccessful.
Section 3. Interpretive Authority. The City of Bainbridge Island Director of Planning and
Community Development, or designee, is hereby authorized to issue official interpretations
arising under or otherwise necessitated by this ordinance.
Section 4. This ordinance shall take effect and be in force five (5) days from its passage,
approval, and publication as required by law.
PASSED BY THE CITY COUNCIL this 27th day of November, 2018.
APPROVED BY THE MAYOR this 27th day of November, 2018.
Kol Medina, Mayor
ATTEST/AUTHENTICATE:
Christine Brown, erk
FILED WITH THE CITY CLERK: November 9, 2018
PASSED BY THE CITY COUNCIL: November 27, 2018
PUBLISHED: November 30, 2018
EFFECTIVE DATE: December 5, 2018
ORDINANCE NUMBER: 2018-30
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