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Ordinance No. 2021-11 Related to Duration of Affordable Housing-Approved 021121Page 1 of 5 ORDINANCE NO. 2021-11 AN ORDINANCE of the City of Bainbridge Island, Washington, adopted pursuant to RCW 35A.13.190; amending BIMC 18.21.020 related to the duration of affordability for designated affordable housing units; authorizing interpretative authority; providing for severability; declaring an emergency; and establishing an immediate effective date. WHEREAS, on June 22, 2020, the City Council formed a City Council and Planning Commission joint land use subcommittee (“subcommittee”) directed by the Council to, among other things, develop a process and list for undertaking work on priorities for land use code revisions; and WHEREAS, the subcommittee’s first phase of work included identifying urgent land use code changes; and WHEREAS, the City Council endorsed the Planning Commission beginning work on this first phase of work at their meeting on October 13, 2020; and WHEREAS, the subcommittee’s recommendations were wide-ranging, including revisions to permit processes, decision criteria, and increasing the duration of required affordability for housing units designated affordable through the provisions of Chapter 18.21 BIMC; and WHEREAS, the Planning Commission considered the proposed changes, including in proposed Ordinance No. 2020-40, on October 29, November 12, and November 19, 2020; and WHEREAS, the Planning Commission held a public hearing on Ordinance No. 2020-40 on December 10, 2020, and after closing the public hearing, made a recommendation of approval of Ordinance No. 2020-40, to the City Council; and WHEREAS, on February 9, 2021, the City Council considered proposed Ordinance No. 2021-03 (formerly Ordinance No. 2020-40) and desires to enact the affordability provisions of that ordinance on a priority basis and allow for additional time for consideration related to the other provisions of Ordinance No. 2021-03, based on the Council’s concern about the limited number of affordable housing units on Bainbridge Island; and WHEREAS, increasing the amount of affordable housing and improving housing affordability generally are goals that permeate several elements of the Comprehensive Plan, notably the Land Use, Housing, and Economic Elements; and WHEREAS, to achieve the affordable housing goals and policies in the Comprehensive Plan, the City Council created a short-term Affordable Housing Task Page 2 of 5 Force (“AHTF”) in 2017 to assist the City in prioritizing a variety of affordable housing actions; and WHEREAS, the AHTF issued a final report in 2018 with a number of recommendations, including recommending permanent affordability for designated affordable housing units (see Recommendation 1.A), and the City Council has endorsed moving forward to implement the recommendations; and WHEREAS, the City Council wants to ensure that future affordable housing units remain affordable as long as possible; and WHEREAS, the existing code requirement for affordable units for sale is that the units are to be sold to income-qualified households for the first sale only; and WHEREAS, the existing affordability duration period in the City’s affordable housing provisions for rental units is 30 years; and WHEREAS, Policy HO 7.2 of the Housing Element of the Comprehensive Plan supports increasing the affordability period to at least 50 years for designated affordable rental housing; and WHEREAS, an emergency exists necessitating adoption of this ordinance to increase the duration of affordability of the for sale units and for rent units that are subject to this ordinance in order to preserve and protect public health, safety, property, and/or welfare; and WHEREAS, the City possesses land use jurisdiction and regulatory authority over the City’s incorporated lands; and WHEREAS, the regulations imposed herein promote the public good and are necessary for the protection of public health, property, safety, property, and/or welfare; and WHEREAS, the City Council now determines that a public emergency exists requiring that this regulation become effective immediately upon adoption. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND, WASHINGTON, DOES ORDAIN AS FOLLOWS: Section 1. Findings of Fact. The recitals set forth above are hereby adopted as the City Council’s findings of fact in support of the regulations established by this ordinance. Section 2. Regulations Imposed. As authorized by the police powers of the City as set forth, for example, in Article XI, Section 11, of the Washington State Constitution, Page 3 of 5 and pursuant to statutory authority set forth, for example, in RCW 35A.13.190, the City hereby imposes this regulation, as described in this Section 2, as follows: Section 18.21.020 of the Bainbridge Island Municipal Code is hereby amended to read as follows: B. Duration of Affordability. 1. Rental Units. a. Prior to the effective date of Ordinance No. 2021-11 on February 11, 2021, aAffordable rental housing units created as a result of the provisions of this chapter shall remain affordable for a period of 30 years from the time of first occupancy and shall be secured by a recorded agreement and covenant running with the land, binding all the assigns, heirs, and successors of the applicant. b. For development projects that filed a complete land use permit application with the city subsequent to the effective date of Ordinance No. 2021-11 on February 11, 2021, affordable rental housing units created as a result of the provisions of this chapter shall remain affordable for a period of at least 50 years from the time of first occupancy and shall be secured by a recorded agreement and covenant in accordance with BIMC 18.21.020.C. 2. Home Ownership Units. a. Prior to the effective date of Ordinance No. 2021-11 on February 11, 2021,Aall affordable home ownership 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 the 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. The affordable housing unit(s) shall be secured by a recorded agreement and covenant in accordance with BIMC 18.21.020.C. b. For development projects that filed a complete land use permit application with the city subsequent to the effective date of Ordinance No. 2021-11 on February 11, 2021, affordable home ownership units created as a result of the provisions of this chapter shall be sold to income-qualified households and shall remain affordable for a period of 99 years from the time of first occupancy. The affordable housing unit(s) shall be secured by a recorded agreement and covenant in accordance with BIMC 18.21.020.C. 3. A unit that is owned or sponsored by a public or private nonprofit agency that already restricts benefit and resale is exempt from the provisions of subsections B.1 and B.2 of this section. Page 4 of 5 C. Required Documentation. Prior to the final approval of any land use application to which BIMC 18.21.030Chapter 18.21 BIMC is applicable, the owner of the affected parcels shall deliver to the city a duly executed covenant running with the land, binding all the assigns, heirs, and successors of the owner of the affected parcels, 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. Section 3. Effect on Vested Rights. The regulations imposed under this ordinance shall be in effect as of the effective date of this ordinance. However, nothing in this ordinance shall be construed to extinguish, limit, or otherwise infringe on any property owner’s or property leaseholder’s vested development rights as defined by state law and City of Bainbridge Island regulations. Section 4. 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 5. Severability. Should any section, paragraph, sentence, clause, or phrase of this ordinance, or its application to any person or circumstance, be declared unconstitutional or otherwise invalid for any reason, or should any portion of this ordinance be preempted by state or federal law or regulation, such decision or preemption shall not affect the validity of the remaining portions of this ordinance or its application to other persons or circumstances. Section 6. Declaration of Emergency; Effective Date. This ordinance, which the City Council hereby regards as a public emergency ordinance necessary for the protection of the public health, public safety, public property, and/or public peace, shall take effect and be in full force immediately upon its adoption. Pursuant to Matson v. Clark County Board of Commissioners, 79 Wn. App. 641 (1995), non-exhaustive underlying facts necessary to support this emergency declaration are included in the “Whereas” clauses above, all of which are adopted by reference as findings of fact as if fully set forth herein. This ordinance or a summary thereof consisting of the title shall be published in the official newspaper of the City. PASSED by the City Council this 11th day of February, 2021. APPROVED by the Mayor this 11th day of February, 2021. Rasham Nassar, Mayor Page 5 of 5 ATTEST/AUTHENTICATE: FILED WITH THE CITY CLERK: February 10, 2021 PASSED BY THE CITY COUNCIL: February 11, 2021 PUBLISHED: February 19, 2021 EFFECTIVE DATE: February 11, 2021 ORDINANCE NUMBER: 2021-11