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ORD 2003-20 AFFORDABLE HOUSING REQUIREMENTS ORDINANCE 2003-20 AN ORDINANCE of the City of Bainbridge Island, Washington, relating to the affordable housing requirements in the Mixed Use Town Center and High School Road Districts; providing for an interim fee in-lieu of program; amending Section 18.40.040 of the Bainbridge Island Municipal Code. WHEREAS, the City adopted a Comprehensive Plan on September I, 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 adopted Ordinance 97-15, implementing policies of the Housing Element and establishing an affordable housing program as specified in Chapter 18.90 of the Bainbridge Island Municipal Code; and WHEREAS, BIMC Chapter 18.90 includes requirements for the provision of affordable housing in iesidential zones and in the Mixed Use Town Center and High School Road Districts; and WHEREAS; the City Council has determined that establishing an optional fee in-lieu of program that would allow affordable housing requirements to be met through a financial contribution ~o the City's Housing Trust Fund would benefit the affordable housing program and the community at large; and WHEREAS, the City has further determined that it would be beneficial to establish a pilot progran~ in order to allow all participants to assess the effectiveness of the proposed fee in-lieu program; now, therefore THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND, WASHINGTON DO ORDAIN AS FOLLOWS: Section 1. Section 18.40.040 of the Bainbridge Island Municipal Code is amended as follows: Affordable housing requirement in the Mixed Use Town Center and High Scho°l Road districts. A. Required Affordable Housing - Residential Development of 10,000 Square Feet but Less Than 60,000 Square Feet. Any proposed development containing 10,000, or more square feet but less than 60,000 square feet of market rate dwellings shall provide at least 10 percent of the proposed base residential FAR for affordable housing as del'reed in BIMC 18.06.565. Affordable housing constructed pursuant to the provisions in this section shall provide housing for Third Reading May 14, 2003 households in the moderate income groups or lower income groups. The total allo~able residential FAR may be increased by an amount equivalent to the squa/~e footage provided for affordable housing. This increase in FAR may be used ifor market rate dwellings. A maximum of 10 percent of the total floor area of cbmmon space that is of common use and benefit to the residential development (for example, interior halls, stairwells, laundry rooms, exercise roo~s) may count toward the affordable housing requirement. B. Residential Affordable Housing - Residential Development of 60,000 Square Feet or More. Any proposed development containing 60,000 square feet or more of market rate dwellings shall provide at least I0 percent of the prop6sed base residential FAR for affordable housing as defined in BIMC 18.06.565. The affordable housing component of the development must be constructed in the following proportions: at least 10 percem for extremely low, very low or low income households; plus or minus 60 percent for moderate income households; and not more than 30 percent for middle income households. The total allowable residential FAR may be increased by an amount equivalent to the square footage provided for affordable housing. This increase in FAR may be used for market rate dwellings. A maximum of 10 percent of the total ~loor area of common space that is of common use and benefit to the residential development (for example, interior halls, stairwells, laundry rooms, exerc!se rooms) may count toward the affordable housing requirement. Development of the required affordable units shall be in accordance with BIMC 18.90.020. The affordable housing requirement is summarized in the table below: Third Reading May 14, 2003 Affordable ~Iousing Requirement ~ Residential development Residential development Residential development , less than 10,000 sq. ft. of 10,000 sq. ft. and less more than 60,000 sq. ft. AFFORDABLE than 60,000 sq. ft. HOUSING ~ No requirement 10 percent of residential 10 percent of residential | REQUIREMENT FAR for moderate or FAR constructed as lower household groups follows: 0.1 for extremely low, Equivalent residential very low or low income market rate FAR in households exchange for affordable 0.6 for moderate income i square footage provided household 0.3 for middle income households Equivalent residential market rate FAR as bonus in exchange for affordable square footage provided C. C ~tional Fee In-lieu of Program. As part of a land use application that was comp ete on or after March 1, 2001, the applicant may choose to meet thc affortable housing requirements of BIMC 18.40.040A and B by making a finan iai contribution to the City's Housing Trust Fund ("fee in-lieu of progr tm"). The owner of property that on the effective date of BIMC 18.40 040C is subject to a site plan approval or building permit conditioned on compl lance with the affordable housing requirements of BIMC 18.40.040A and B ma choose to participate in the fee in-lieu of program if the approval or permi: arose out of an application that was complete on or after March 1, 2001. The mount of the financial contribution shall be based on the amount of resi_d~tial FAR that is required to be provided for affordable housing under BIM¢4 18.40.040A and B. The financial contribution per square foot shall ~c established by resolution. 1. i The applicant or owner shall provide the Plannin~o Department with written notice of intent to participate in the fee in-lieu of program. For land use applications that are submitted after the effective date of BIMC 18.40.040C, the applicant shall provide the notice of intent to participate in the fee in-lieu of program at the time of filin~ the application for site plan review, and the site plan approval shall include a condition requiring payment of the financial contril?ution prior to issuance of building permits for the development. Third Reading May 14, 2003 2. Payment of the financial contribution to the Housing Trust Fund shall be mad~ prior to issuance of building permits; provided, that if building permits hav~ already been issued for the development on the effective date of BIMC 18.49.040C, the payment of the financial contribution shall be made prior to use of th. residential FAR required for affordable housing under BIMC 18.40.040A and I for market rate dwellings. 3. The residential FAR required for affordable housing under BIMC 18.4(~.040A and B may be used for market rate dwellin~g if an applicant or own, r participates in the fee-in-lieu of program 4. At the end of one year from the effective dat~ BIMC 18.40.040C , the Cit' 'Council shall review the fee-in-lieu of program to determine whether it shoul I be continued, modified, or repealed. SectiOn 2. This ordinance shall take effect and be in force five days from and after its passage, ~ipproval and publication as required by law. PAS~ED by the City Council this 14th day of May, 2003. APPROVED by the Mayor this 15th day of May, 2003. Darlene Kor~ono~vy, Mayor ATTEST/AUTHENTICATE: v , City 1 APPROVED iAS TO FORM: Rod P. Kaseguma, City Attorney FILED WITH THE CITY CLERK: May 9, 2003 PASSED BY ITHE CITY COUNCIL: May 14, 2003 PUBLISHED!: May 21, 2003 EFFECTIVEiDATE: May 26, 2003 ORDINANCE NUMBER: 2003-20 Third Reading May 14, 2003