Chapter 18.21
AFFORDABLE HOUSING
Sections:
18.21.020 General provisions for optional affordable housing.
18.21.030 Optional residential density bonus for affordable housing.
18.21.040 Optional fee-in-lieu.
18.21.005 Generally.
This chapter sets forth optional provisions for density bonuses in return for the construction of new affordable housing units. Residential density bonus proposals will be reviewed concurrently with the primary land use application. A preapplication conference will be required for any land use application that includes a proposal for the affordable housing density bonus. (Ord. 2011-02 § 2 (Exh. A), 2011)
18.21.010 Purpose.
The purpose of this chapter is to implement the policies contained in the housing element of the comprehensive plan by providing an optional program for the construction of affordable housing in new single-family and multifamily residential developments. The Growth Management Act (GMA) requires the city to make adequate provisions for existing and projected housing needs of all economic segments of the community as determined by the housing needs assessment, contained in the housing element. The housing element reflects the city’s goal of dispersing affordable housing throughout all geographic and economic segments of the community, and providing a mixture of housing types to discourage the development of economic enclaves. The city recognizes that the marketplace is the primary supplier of adequate housing for those in the upper economic groups, but that some combination of appropriately zoned land, regulatory incentives and innovative planning techniques will be necessary to make adequate provisions for the needs of households whose incomes are at or below middle income (as those terms are defined in Chapter 18.36 BIMC). (Ord. 2011-02 § 2 (Exh. A), 2011)
18.21.020 General provisions for optional affordable housing.
A. Siting of Affordable Dwelling Units or Residential Building Lots. The affordable units constructed under the provisions of this chapter shall be included within the parcel of land for which the density bonus is granted. Segregation of affordable housing units within the development from market rate housing units shall be avoided whenever practical.
The department of planning and community development shall calculate and publish annually the maximum purchase prices and maximum rents applicable to each of the following income groups:
1. Extremely low income: less than 30 percent of median household income;
2. Very low income: 31 percent through 50 percent of median household income;
3. Low income: 51 percent through 80 percent of median household income;
4. Moderate income: 81 percent through 95 percent of median household income;
5. Middle income: 96 percent through 120 percent of median household income.
B. Duration of Affordability.
1. Rental Units.
a. Prior 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 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 subsection C of this section.
2. Home Ownership Units.
a. Prior to the effective date of Ordinance No. 2021-11 on February 11, 2021, all 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 subsection C of this section.
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 subsection C of this section.
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.
C. Required Documentation. Prior to the final approval of any land use application to which this chapter 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.
D. Construction of Affordable Units. When dwelling units subject to this chapter will be constructed in phases, or over a period of more than 12 months, a proportional amount of affordable housing units must be completed at or prior to completion of the related market rate dwellings, or as approved by the director.
E. Phased Development. If a project is to be phased, the proportion of affordable units or residential building lots to be completed with each phase shall be determined as part of the phasing plan approved by the director.
F. Unimproved Lots to Be Sold. Where 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.
G. Attached Housing. In single-family developments where there are two or more affordable units, side yard setbacks may be waived to allow for attached housing units for affordable units only. The placement and exterior design of the attached units must be such that the units together resemble as closely as possible a single-family dwelling.
H. Definition of Benefit. Where the code limits benefits to households whose incomes are at or below a specified income, the purpose is to include all categories of income, as defined in Chapter 18.36 BIMC, below the category specified. For example, if the benefit limit is, “to those households whose incomes are at or below low-income,” households who are extremely low income, very low income and low income may benefit. (Ord. 2021-11 § 2, 2021; Ord. 2018-30 § 1, 2018; Ord. 2011-02 § 2 (Exh. A), 2011)
18.21.030 Optional residential density bonus for affordable housing.
A. Applicability. This section applies to all land use applications, except the following: (1) the construction of one single-family dwelling on one lot that can accommodate only one dwelling based upon the underlying zoning designation, (2) the Mixed Use Town Center and the High School Road districts (provisions for these zones are contained in BIMC 18.12.030.E), (3) neighborhood centers (NCs) (provisions for this zone are contained in BIMC 18.12.030.D), and (4) the critical areas overlay districts identified in the comprehensive plan, which are not eligible for density bonuses.
B. Rental Affordable Housing. Density for land subject to the provisions of this section may be increased by up to 50 percent above the underlying base density when each of the additional units is provided for households whose incomes are at or below low income.
C. For-Purchase Affordable Housing. Density for land subject to the provisions of this section may be increased above the base density by the following amounts:
1. Up to a maximum of 50 percent above the underlying base density when each of the additional units or residential building lots is provided for households whose incomes are at or below low income.
2. Up to a maximum of 40 percent above the underlying base density when each of the additional units or residential building lots is provided for households whose incomes are at or below moderate income.
3. Up to a maximum of 20 percent above the underlying base density when the first 10 percent of the housing units are affordable to households with incomes at or below moderate income. The remaining 10 percent may be affordable to households whose incomes are at or below middle income.
D. Summary Table. The provisions of subsections B and C of this section are summarized in Table 18.21.
|
Affordable Housing – Optional For Purchase |
For Rent |
|---|---|
|
Up to 50% density bonus if each of the bonus units are affordable to households whose incomes are at or below low income. |
Up to 50% density bonus when each of the bonus units is affordable to households with incomes at or below low income. |
|
Up to a 40% density bonus if each of the bonus units are affordable to households whose incomes are at or below moderate income. |
|
|
Up to a maximum of 20% above the underlying base density when the first 10% of the housing units are affordable to households with incomes at or below moderate income. The remaining 10% may be affordable to households whose incomes are at or below middle income. |
(Ord. 2017-02 § 1, 2017; Ord. 2011-02 § 2 (Exh. A), 2011)
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 percent 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 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 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. (Ord. 2018-30 § 2, 2018)
18.21.050 Affordable housing development on property owned or controlled by a religious organization.
A. In accordance with RCW 36.70A.545, the city shall allow a density bonus consistent with this section for properties owned or controlled by a religious organization. For the purposes of this section, “religious organization” is defined as provided in RCW 36.70A.545. All projects governed by this section shall comply with RCW 36.70A.545 and the requirements set forth in this section.
B. Pilot Project Phase. In order to implement the requirements of RCW 36.70A.545 consistent with local needs, the city will utilize a pilot project phase as part of a broader application and implementation of the regulations. Initially, implementation of this section shall be limited to the only request from a religious organization for an increased density bonus for an affordable housing development that the city has received related to RCW 36.70A.545, as of adoption of the ordinance codified in this section, which relates to the approximately eight-acre property collectively known as “Bethany Lutheran Church,” located at the southwest intersection of NE High School Road and Sportsman Club Road NE and zoned R-0.4. The pilot project phase shall be in effect until December 31, 2027. Beginning January 1, 2028, the pilot project phase of these regulations will no longer be in effect and this section will apply to all requests submitted in accordance with RCW 36.70A.545 and this code, regardless of the location of the property within the city’s jurisdictional limits.
C. All projects shall comply with existing land use permit review procedures depending on the type of housing development that is proposed. Multifamily housing shall be reviewed in accordance with the site plan and design review process set forth in BIMC 2.16.040, and subdivisions shall be reviewed in accordance with the short or long subdivision process set forth in BIMC 2.16.070 or 2.16.125 (respectively), unless specifically modified by this section.
D. All projects shall be subject to applicable residential development standards for BIMC Titles 15, 16, 17, and 18, unless specifically modified by this section. All projects shall comply with the requirements of the city and the Kitsap Public Health District for providing drinking water and on-site septic, if applicable.
E. Project Density Bonus. The density for projects may be increased above the base density as follows; provided, that all other applicable provisions of this code are met:
1. For projects within the Mixed Use Town Center/HSR I and II zones (where bonus density for affordable housing is otherwise governed by BIMC 18.12.030.E), bonus density shall be governed by Table 18.12.020-3 and the maximum floor area ratios depicted therein.
2. For projects within the Neighborhood Center zones (where bonus density for affordable housing is otherwise governed by BIMC 18.12.030.D), density may be increased as follows: one additional unit per acre beyond what is already provided as bonus for projects not served by public sewer, and two additional units per acre beyond what is already provided as bonus for projects served by public sewer.
3. For all other projects in Residential zoning districts (otherwise governed by Chapter 18.21 BIMC), density may be increased as follows:
a. For projects within the Winslow Subarea Plan Study Area or within one quarter mile of the Winslow Subarea Plan Study Area:
|
Residential Zone |
Total Allowed Density Under this Chapter |
|---|---|
|
R-0.4 |
2.9 units/acre |
|
R-1 |
3.5 units/acre |
|
R-2 |
4.3 units/acre |
|
R-2.9 |
5 units/acre |
|
R-3.5 |
6 units/acre |
|
R-4.3 |
8 units/acre |
|
R-5 |
14 units/acre |
|
R-6 |
18 units/acre |
|
R-8 |
22 units/acre |
|
R-14 |
26 units/acre |
b. For all other projects in Residential zoning districts:
|
Residential Zone |
Total Allowed Density Under this Chapter |
|---|---|
|
R-0.4 |
2 units/acre |
|
R-1 |
2.9 units/acre |
|
R-2 |
3.5 units/acre |
|
R-2.9 |
4.3 units/acre |
|
R-3.5 |
5 units/acre |
|
R-4.3 |
6 units/acre |
|
R-5 |
8 units/acre |
|
R-6 |
14 units/acre |
|
R-8 |
18 units/acre |
|
R-14 |
22 units/acre |
F. Accessory Dwelling Units (“ADU”). ADUs are prohibited for projects governed by this section.
G. Affordable Housing. All dwelling units planned and constructed through this section shall meet the following requirements:
1. All units shall be used exclusively for affordable housing purposes for at least 99 years.
2. Housing units shall be used as the primary residence of a low income household. “Low income households” are defined as set forth in RCW 36.70A.545.
3. Unless otherwise specified, the price of affordable housing units shall be based on the requirements set forth in RCW 36.70A.545.
4. An agreement in a form approved by the city shall be executed by the applicant, or its successor organization, and recorded with the Kitsap County Auditor’s Office, requiring the affordable housing to remain for 99 years. This agreement shall be a covenant running with the land, binding on assigns, heirs, and successors of the applicant.
5. The city shall require documentation to be signed through the land use and building permitting processes to ensure ongoing compliance with the income requirements.
6. The city may approve a formula, based on a form prepared by the city and submitted by the applicant when a project application is submitted for review, for calculating maximum affordable prices for sales subsequent to the initial sale to allow modest growth in homeowner equity while maintaining long term affordability for future buyers.
H. Parking. The amount of parking shall be determined as part of a transportation study or mobility assessment.
I. The maximum dwelling unit size shall be limited to 1,400 square feet.
J. Projects proposed and constructed on the same property(ies) as existing buildings may result in a permitted mixed-use property.
K. Projects proposed and constructed under this section shall comply with the Fair Housing Act which prohibits discrimination in housing because of race, color, national origin, religion, sex (including gender identity and sexual orientation), familiar status, or disability. (Ord. 2022-02 § 4, 2022)