Chapter 18.77
AFFORDABLE HOUSING
Sections:
18.77.010 Affordable housing – Purpose and intent.
18.77.020 Downtown residential zone.
18.77.025 Downtown commercial zone.
18.77.028 Urban corridor zone, east subarea.
18.77.030 Transit oriented development (TOD) district overlay.
18.77.040 Community business zone, Juanita subarea.
18.77.042 Urban residential zone.
18.77.045 Alternative compliance.
18.77.050 Affordability agreement.
18.77.060 Expedited permit processing.
18.77.010 Affordable housing – Purpose and intent.
The purpose of this chapter is to implement, through regulations, the responsibility of the City under the Washington State Growth Management Act to consider the housing needs of all economic segments of the community, and to assure an adequate affordable housing supply in the City. 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, innovative planning techniques, and requirements will be necessary to make adequate provisions for the needs of households whose incomes are at or below median income. [Ord. 23-0574 § 2 (Exh. A); Ord. 19-0481 § 2 (Exh. A); Ord. 11-0329 § 3 (Exh. 1).]
18.77.015 General provisions.
A. Determination of Number of Affordable Housing Units Required – Rounding. See KMC 18.30.020(D) for method of rounding to determine the number of affordable housing units required.
B. Adjacent Developments. Adjacent developments by the same or affiliated developer will be considered as a single development for the purpose of applying the thresholds for compliance.
C. Designation of Affordable Housing Units. Prior to the issuance of any permit(s), the City shall review and approve the location and unit mix of the affordable housing units consistent with the following standards:
1. Location. The location of the affordable housing units shall be approved by the City, with the intent that they generally be intermingled with all other dwelling units in the development.
2. Tenure. The tenure of the affordable housing units (ownership or rental) shall be the same as the tenure for the rest of the housing units in the development.
3. Size (Bedroom). The affordable housing units shall consist of a range of number of bedrooms that is comparable to units in the overall development.
4. Size (Square Footage). The size of the affordable housing units, if smaller than the other units with the same number of bedrooms in the development, shall be approved by the city manager. If there is a proposal that the affordable units be smaller than the market rate units, in no case shall the affordable housing units be less than 500 square feet for a studio unit, 600 square feet for a one-bedroom unit, 800 square feet for a two-bedroom unit, or 1,000 square feet for a three-bedroom unit.
5. Design. The exterior design of the affordable housing units shall be compatible and comparable with the rest of the dwelling units in the development and shall comply with any applicable design standards. The interior finish and quality of construction of the affordable housing units shall at a minimum be comparable to entry level rental or ownership housing in the City.
D. Duration. Housing shall serve only income-eligible households for a minimum period of 50 years from the latter of the date when the affordability agreement between the housing owner and the City, as described in KMC 18.77.050, is recorded, or the date when the affordable housing becomes available for occupancy as determined by the City.
E. Timing/Phasing. The affordable housing units shall be available for occupancy in a time frame comparable to the availability of the rest of the dwelling units in the development. [Ord. 23-0574 § 2 (Exh. A); Ord. 19-0481 § 2 (Exh. A).]
18.77.020 Downtown residential zone.
The provisions of this section shall apply to multifamily residential developments proposed on property four acres or greater in size within the downtown residential zone that lie west of 68th Avenue NE, and which are providing for more than 20 multiple-family dwelling units.
A. Twenty-five percent of the total number of units in the development shall be reserved for eligible households and affordable to households with incomes no greater than 70 percent of the King County median income, if renter-occupied, or affordable to households with incomes no greater than 80 percent of median income, if owner-occupied. [Ord. 23-0574 § 2 (Exh. A); Ord. 19-0481 § 2 (Exh. A); Ord. 11-0329 § 3 (Exh. 1).]
18.77.025 Downtown commercial zone.
A. Multifamily or mixed use development proposed within the downtown commercial zone east of 73rd Avenue NE shall provide affordable housing as follows:
Twenty-five percent of the total number of residential units in the development shall be very low-income affordable housing units if renter-occupied or low-income affordable units if owner-occupied.
B. Multifamily or mixed use development proposed within the downtown commercial zone west of 73rd Avenue NE shall provide affordable housing as follows:
Twenty-five percent of the total number of units in the development shall be reserved for eligible households and affordable to households with incomes no greater than 70 percent of the King County median income, if renter-occupied, or affordable to households with incomes no greater than 80 percent of median income, if owner-occupied. [Ord. 23-0574 § 2 (Exh. A).]
18.77.028 Urban corridor zone, east subarea.
Multifamily or mixed use development proposed within the urban corridor zone, east subarea, shall provide affordable housing as follows:
Twenty-five percent of the total number of residential units in the development shall be very low-income affordable housing units if renter-occupied or low-income affordable housing units if owner-occupied.
Exception: This section, as adopted by Ordinance No. 23-0574, shall not apply to certain real properties located within the area of the transit oriented development (TOD) district overlay as identified in KMC 18.29.020 and Figure 18.29.020.1, and as further identified by the following tax parcel numbers (TPN): TPN 011410-0889, TPN 011410-0881, TPN 011410-0870, TPN 011410-0885, TPN 011410-0865, TPN 011410-0860, and TPN 011410-0855. [Ord. 23-0574 § 2 (Exh. A).]
18.77.030 Transit oriented development (TOD) district overlay.
A. Properties developed under the TOD district overlay, Chapter 18.29 KMC, shall include affordable housing units.
B. Cap on Total Number of Affordable Housing Units Required. Affordable housing requirements shall be capped at 10 percent of the total number of dwelling units being provided.
C. Number of Affordable Housing Units Required. Affordable housing units shall be provided for any development exceeding the base density of the underlying zone as follows:
1. Tier 1. If the number of bonus units is less than or equal to 30 percent of the total number of dwelling units, then for every three bonus units, one dwelling unit shall be a moderate-income affordable housing unit and two bonus dwelling units may be bonus market rate dwelling units.
2. Tier 2. If the number of bonus units is greater than 30 percent of the total number of dwelling units and if the overall project density is less than or equal to 120 dwelling units per acre, then a combination of low-income affordable housing units and moderate-income affordable housing units shall be provided as follows: For every four bonus units allowed beyond that needed to achieve the 10 percent moderate-income affordable housing units, one of the moderate-income affordable housing units shall be made into a low-income affordable housing unit up to a maximum of 33 percent of the affordable housing units (or 3.3 percent of the total dwelling units in the development).
3. Tier 3. If the overall development density is greater than 120 dwelling units per acre, a combination of very low-income affordable housing units, low-income affordable housing units and moderate-income affordable housing units shall be provided as follows: The required numbers of low-income affordable housing units and moderate-income affordable housing units shall be equivalent to those that would be required under Tier 2, assuming that the project were to be developed at a density of 120 dwelling units per acre. An amount of very low-income affordable housing shall be required so that the total combined amount of very low-income, low-income and moderate-income affordable housing units is equal to 10 percent of the total number of dwelling units in the development.
4. Affordable Housing Example. Example is a one-and-one-half-acre property with a base density of 48 dwelling units (du)/acre. Without the TOD district overlay, the property could achieve up to 72 dwelling units.
Tier 1 example: Proposed TOD development would achieve 93 dwelling units on site for 62 du/acre. This provides 21 “bonus” dwelling units above the 48 du/acre base density of the zone. Since the number of bonus units (21) is less than 30 percent of the total units (93), seven of the 21 bonus units must be affordable to moderate-income households, meeting Tier 1 affordability requirements.
Tier 2 example: Proposed TOD development would achieve 113 dwelling units on site for 75 du/acre. This provides 41 “bonus” dwelling units above the 48 du/acre base density of the zone.
Since the number of bonus units (41) is greater than 30 percent of the total units (113), 11 of the 41 bonus units must be affordable, meeting the 10 percent affordability cap. Nine of these are affordable to moderate-income households and two are affordable to low-income households (33 of the bonus units used toward achieving 10 percent affordable units (11*3) plus eight of the bonus units applied toward making two of the affordable units low-income affordable units (8*.25=2).
Tier 3 example: Proposed TOD development would achieve 210 dwelling units on site for 140 du/acre. The first step is to determine how many affordable units would have been required assuming 120 du/acre using the Tier 2 formula This calculation results in 13 moderate-income affordable housing units and five low-income affordable housing units. To achieve the requirement that 10 percent of the total units in the development be affordable, three additional affordable housing units would be needed (21-18=3). These three units would be required to be very low-income affordable housing units. In summary, the development would provide 13 moderate-income affordable housing units, five low-income affordable housing units, and three very low-income affordable housing units. [Ord. 19-0481 § 2 (Exh. A); Ord. 14-0391 § 2 (Exh. 1); Ord. 13-0363 § 5; Ord. 11-0329 § 3 (Exh. 1).]
18.77.040 Community business zone, Juanita subarea.
A. For properties choosing to develop at higher residential densities in the CB Juanita subarea, Chapter 18.23 KMC, affordable housing units shall be provided for any development exceeding the base density of 24 dwelling units per acre as follows:
1. For every four bonus units, one bonus dwelling unit shall be reserved for eligible households and affordable to households with incomes no greater than 70 percent of the King County median income, if renter-occupied, or affordable to households with incomes no greater than 80 percent of median income, if owner-occupied, and three bonus dwelling units may be bonus market rate dwelling units.
2. For the purpose of satisfying the affordable unit requirement under this section:
a. Each very low-income affordable housing unit provided counts as two renter-occupied affordable units required by subsection (A)(1) of this section.
b. Each unit provided, affordable at 65 percent of the King County median income, counts as two owner-occupied affordable units required by subsection (A)(1) of this section.
Example: Proposed development would achieve 36 dwelling units on a one-acre site for a density of 36 du/acre. This provides 12 “bonus” dwelling units above the 24 du/acre base density of the zone. Three of the 12 bonus units must be affordable units as described in subsection (A)(1) of this section. Alternatively, the project could provide one affordable unit as described in subsection (A)(2) of this section and one affordable unit as described in subsection (A)(1) of this section. [Ord. 23-0574 § 2 (Exh. A); Ord. 19-0481 § 2 (Exh. A).]
18.77.042 Urban residential zone.
Multifamily or mixed use development proposed within the urban residential zone shall provide affordable housing as follows:
Twenty-five percent of the total number of residential units in the development shall be very low-income affordable housing units if renter-occupied or low-income affordable housing units if owner-occupied. [Ord. 23-0574 § 2 (Exh. A).]
18.77.045 Alternative compliance.
While the City prefers to achieve affordable housing on site, the city manager may approve a request for satisfying all or part of the affordable housing requirements with alternative compliance methods as follows:
A. Application. Applications for alternative compliance shall be submitted at the time of permit application, and must be approved prior to issuance of any building permit.
B. Off-Site Provision. A project proponent may propose to satisfy all or part of affordable housing requirements off site.
1. The project proponent must demonstrate that off-site provision of new affordable housing achieves a result equal to or better than providing affordable housing on site.
2. Affordable housing units provided through this method must be the same type of units as the units in the project which gave rise to the requirement.
3. Priority is for the project to be located within the same zoning district as the development responsible for providing affordable housing. However, the city manager may approve a project located outside the zoning district if the location has access to commercial uses and transit, does not result in an undue concentration of affordable housing, and has adequate infrastructure.
4. The proposal must demonstrate that the affordable units provided off site will be completed before or within the same time period as the development generating the affordable housing requirement. For projects approved for off-site affordable housing, there will be a recorded agreement on both the “sending” property and the “receiving” property. The covenant on the sending site will be released once the affordable housing is completed on the receiving property.
C. Contribution to Preservation of Existing Affordable Housing. A project proponent may propose to satisfy all or part of affordable housing requirements through purchase and long-term preservation of existing affordable housing, particularly in the City’s manufactured housing communities. The applicant shall provide information demonstrating affordability of the units to be preserved and a long-term covenant shall be placed over the preserved units, ensuring preservation and maintenance of the affordable units.
D. Fee in Lieu. Cash payments in lieu of providing actual housing units may be proposed and, if approved by the city manager, shall be used only for the subsequent preservation or provision of affordable housing units by the City or other housing provider approved by the city manager.
1. Payments in lieu shall be based on the difference between the cost of construction for a prototype affordable housing unit on the subject property, including land costs and development fees, and the revenue generated by an affordable housing unit.
2. Prior to issuance of building permits for the project, the City and applicant shall execute a written agreement that establishes the applicant’s payment obligations (amounts and due dates) for the project. The City may require the applicant to secure its payment obligations by irrevocable letter of credit or other form acceptable to the City.
3. The City shall deposit collected payments in an affordable housing fund established by the City.
4. Before the city manager approves or executes an agreement to accept payment in lieu of affordable housing, the City must have a plan for investing funds in affordable housing that supports City objectives. The City should make every effort to use these funds as quickly as possible.
5. The highest priority location for affordable housing funded wholly or in part with in-lieu fees is the subarea location of the project that generated the in-lieu fee; however, the city manager may authorize the use of these funds for affordable housing projects in other subareas of the City (as a second priority) or within another jurisdiction (as a third priority) with close proximity to commercial uses, transit services, and/or employment opportunities. [Ord. 23-0574 § 2 (Exh. A); Ord. 19-0481 § 2 (Exh. A).]
18.77.050 Affordability agreement.
A. Prior to issuing any building permit, an agreement in a form approved by the city manager that addresses price restrictions, homebuyer or tenant qualifications, phasing of construction, monitoring of affordability, duration of affordability, and any other applicable topics of the affordable housing units shall be recorded with King County Department of Records and Elections. This agreement shall be a covenant running with the land and shall be binding on the assigns, heirs and successors of the applicant. The City may agree, at its sole discretion, to subordinate any affordable housing regulatory agreement for the purpose of enabling the owner to obtain financing for development of the property.
B. Monitoring and Fees. The City reserves the right to establish, in the affordability agreement referred to in subsection A of this section, monitoring fees for the affordable housing unit, which can be adjusted over time to account for inflation. The purpose of any monitoring fee is for the review and processing of documents to maintain compliance with income and affordability restrictions of the affordability agreement. [Ord. 23-0574 § 2 (Exh. A); Ord. 19-0481 § 2 (Exh. A).]
18.77.060 Expedited permit processing.
A. Certain projects containing extremely low-income or very low-income affordable housing units in the R-12, R-18, R-24, NB, CB, DR, DC, UC, UR, WC, RB, and PSP zones that require a Type 2 land use decision as described in KMC 19.25.020 may have that process reduced to a Type 1 land use decision unless the proposal includes any of the following:
1. Short subdivision, including revisions and alterations;
2. Zoning variance;
3. Conditional use permit;
4. Shoreline permit; or
5. Critical area exceptions, variances or modifications under Chapter 18.55 KMC.
B. Any applicant for a project containing extremely low-income or very low-income affordable housing units may request that review of the project be expedited. The request may be made on forms provided by the City. If a determination is made by the city manager that City staffing or other permit priorities do not allow expedited permit review, the applicant may request that the project be reviewed by a consultant working for the City at the applicant’s expense. [Ord. 23-0574 § 2 (Exh. A); Ord. 21-0521 § 2 (Exh. A).]