Chapter 18.95
HOUSING DENSITY INCENTIVE PROGRAM
Sections:
18.95.010 Authority and purpose.
18.95.020 Affordable homeownership and affordable rental unit defined.
18.95.030 Earned increased density criteria.
18.95.050 Annual reporting requirements.
18.95.010 Authority and purpose.
A. Authority. Both the Growth Management Act (RCW Title 36A) and the Housing Policy Act (Chapter 43.185(B) RCW) authorize the city to implement regulations to encourage housing opportunities for all economic segments of the city.
B. Purpose. The purpose of this chapter is to promote the construction of additional residential dwelling units within the city. (Ord. 3064 § 3, 2018).
18.95.020 Affordable homeownership and affordable rental unit defined.
A. Purchasers of affordable owner-occupied homes constructed under this chapter shall meet the following requirements:
1. Annual Income. All purchasers shall be from a household whose annual income, at the household’s initial occupancy of the single-family residence, is eighty percent or less of the median income (determined by HUD) as adjusted by family size of the Kennewick-Richland, WA Metropolitan Statistical Area specifically defined as Benton County; and
2. Housing Expenses. The monthly expenditure by a purchaser, as described in subsection (A)(1) of this section, for housing including mortgage repayment, insurance, taxes and utilities (water and sewer) shall not exceed thirty-eight percent of the gross household income at the time of purchase and the amount for mortgage shall not exceed thirty percent of gross household income. All other variable living expenses associated with the resident’s occupancy shall not be a factor in the calculation of affordability.
B. Renters of affordable rental units under this chapter shall meet the following requirements:
1. Annual Income. All purchasers shall be from a household whose annual income, at the household’s initial occupancy of the single-family residence, is eighty percent or less of the median income (determined by HUD) as adjusted by family size of the Kennewick-Richland, WA Metropolitan Statistical Area specifically defined as Benton County; and
2. Housing Expenses. The monthly expenditure by a purchaser, as described in subsection A of this section shall not exceed thirty percent of gross household income. (Ord. 3064 § 4, 2018).
18.95.030 Earned increased density criteria.
Earned increased density of up to twenty percent over the otherwise allowable density in the applicable residential zone may be granted to a project, or a portion of the project, if ten percent of dwelling units in the project, or portion of the project, are provided and retained as affordable owner-occupied homes or affordable rental units for not less than twenty years after the date of the certificate of occupancy is issued for the dwelling unit or project, subject to the following eligibility requirements:
A. Project Applicant.
1. The applicant can demonstrate experience in providing affordable housing. Notwithstanding this requirement, an organization that can demonstrate experience in providing housing and a mission statement of its intent to use that experience toward achieving the goal of providing affordable housing shall be deemed to have met this requirement.
2. The applicant can demonstrate the ability to employ a mechanism to retain all of the dwelling units as affordable to income-qualified buyers as defined by Section 18.95.020 and which specifically requires that the units be either owner-occupied, rental units part of a multifamily housing project, or temporarily vacant.
3. The applicant can demonstrate either: an ability and commitment to submit an annual report to the city administrator, or his or her designee, documenting all residential units, past and pending sales, and ownership by qualified home buyers; and/or an ability and commitment to submit an annual report to the city administrator, or his or her designee, documenting all rental units are occupied by qualified renters.
B. The project must create one of the following:
1. Single-family residences or condominiums that are individually owned by their occupants.
2. Rental units as part of a multifamily or single-family project.
3. A mix of single-family owner-occupied residences or condominiums along with rental units provided the rental units are part of multifamily dwellings containing not less than four dwelling units.
4. Residences as provided for in subsection (B)(3) of this section which are contained in an adjacent mixed use commercial development.
C. The applicant must have controls in place, subject to approval by the city planning and economic development director or his or her designee, to ensure that the residences remain owner-occupied by qualified owners or rented by qualified renters.
D. Guarantee of Affordability for Not Less than Twenty Years. The applicant must have controls in place, subject to approval by the city planning and economic development director or his or her designee, to ensure that the project’s residences remain affordable in accordance with the definitions in Section 18.95.020. The controls shall include at least one of the following:
1. Purchase/sale agreements with the owner/occupants which require that the single-family residences be sold only to qualified purchasers who meet the requirements of Section 18.95.020 for not less than twenty years;
2. A requirement that the applicant can only transfer the land to another entity that meets the requirements of subsection A of this section;
3. That the title to the property on which the residences are constructed contains a deed restriction that assures the applicant or his successors in interest will comply with the requirements of this chapter for not less than twenty years;
4. Other methods approved by the city planning and economic development director, or his or her designee, to ensure that the project will comply with the requirements of this chapter for not less than twenty years.
E. Project Location. Subject to the permitted uses in the underlying zoning regulations, affordable single-family homes or affordable rental units developed under this chapter must be located in one of the following zoning districts: residential, low density (RL) district; residential, medium density (RM) district; residential, high density (RH) district; residential manufactured home subdivision (RMS) district; steep slope residential (SSR) district; commercial downtown (CD) district; or agritourism (AT) district.
F. Design Review. Single-family housing projects receiving earned increased density under this chapter must comply with the design review process and site location criteria for single-family homes in Chapter 18.07. Multifamily housing projects receiving earned increased density under this chapter must comply with any design review process and site location criteria subsequently enacted for multifamily homes to protect, maintain, or enhance neighborhood character and compatibility. Commercial-mixed use projects receiving an increased building height variance must comply with Chapter 18.08 and any design review process and site location criteria subsequently enacted for multifamily homes to protect, maintain, or enhance neighborhood character and compatibility.
G. Request for Variance. Applicants may request a variance of the regulatory requirements listed in this subsection; provided, that the project complies with applicable Washington State laws. Requests for variances must be accompanied by detailed supporting documentation regarding the appropriateness of, and the need for, the variance. Project applicants must meet all other applicable development regulations in the Prosser Municipal Code pertaining to single-family or multifamily homes or multifamily rental units. Requests for variances must accompany the preliminary plat, short plat, site plan, building permit, or lot line adjustment application and must be noted on any site plans.
1. Minimum lot size;
2. Minimum street frontage;
3. Minimum front, side, and rear yard setbacks;
4. Minimum parking requirements;
5. Minimum usable open space;
6. Maximum building height for multifamily homes may be increased up to sixty feet in R districts and up to seventy-five feet in C or AT districts.
H. Recommendation for Variance. The city planning and economic development director, or his or her designee, may issue a recommendation to the planning commission or board of adjustment, as applicable, for a variance, for modification of regulatory requirements listed in subsection F of this section, for projects applying under this chapter if the city planning and economic development director, or his or her designee, determines that approvals of requested variance is necessary to facilitate the construction of as many affordable homes as allowable. Recommended variances are type III land use applications. (Ord. 3252 § 2, 2024; Ord. 3064 § 5, 2018).
18.95.040 Procedures.
A. Applications under this chapter shall follow the procedures in Title 19, except the following additional requirements are mandatory for all applications processed under this chapter:
1. Preapplication Conference. A preapplication conference with the city planning and economic development director, or his or her designee, is required.
B. Submittal Requirements. The director shall establish submittal requirements and forms to be used for applications. All applications are subject to SEPA. A complete application shall consist of the completed application form with all required information, a SEPA environmental checklist, if applicable, and any required fee.
C. Concurrent Review. The application for design review, subdivision, project approval, or other administrative approval under this chapter shall be processed concurrently with the decision made by the highest decision maker for the application. The director’s decision and recommendation regarding any administrative approval shall be forwarded to the hearing body to make the final decision or recommendation to the city council to make the final decision. (Ord. 3064 § 6, 2018).
18.95.050 Annual reporting requirements.
The applicant, or his or her designee, of a project receiving earned increased density under this chapter must report annually to the city administrator, or his or her designee, regarding the status of the project. Information presented to city administrator, or his or her designee, shall include:
A. Total number of units in the project;
B. Number of units that changed ownership and/or tenancy during the past year;
C. The purchase price or monthly rent of each unit that changed ownership or tenancy; and
D. The steps taken by the applicant, or his or her designee, to ensure either that each unit that changed ownership was transferred to a qualified purchaser at an affordable price in accordance with Section 18.95.020 or was rented to a qualified tenant in accordance with Section 18.95.020. (Ord. 3064 § 7, 2018).
18.95.060 Fees.
Fees for processing applications pursuant to this chapter shall be set forth in a separate ordinance passed by the city council. (Ord. 3064 § 8, 2018).
18.95.070 Fee waivers.
A. Authority and Purpose. Both the Growth Management Act (RCW Title 36A) and the Housing Policy Act (Chapter 43.185B RCW) authorize the city to implement regulations to encourage housing opportunities for all economic segments of the city. The purpose of this section is to promote the construction of affordable housing within the city.
B. Applications Eligible for Fee Waivers. Applicants for permits relating to the construction of additional single-family homes, multifamily residential units, or housing restricted to persons over the age of fifty-five years that have been deed restricted in accordance with Section 18.95.030(D) may apply to the planning and economic development director for a fifty percent fee waiver for fees listed in subsection D of this section.
C. The planning and economic development director, or his or her designee, is authorized to create application forms and draft administrative policies necessary to implement this chapter.
D. Except for costs incurred by the city for engineering review, publishing, and legal review, the following are eligible for fee reduction in accordance with this chapter:
1. Building permits.
2. Plan review fee.
3. Plumbing permits.
4. Mechanical permits.
5. Accessory dwelling units.
E. The city clerk shall cross-reference this chapter in the city’s fee ordinance each time a fee is established for fees listed in subsection D of this section.
F. In the event that the planning and economic development director denies an application for a fee waiver, the applicant may, within ten business days after the denial, file an appeal to the city administrator who may uphold or modify the decision of the planning and economic development director.
G. Fees for processing applications and appeals pursuant to this chapter shall be set forth in a separate ordinance passed by the city council.
H. The city’s community development director is authorized to develop and enforce administrative policies to administer this section. (Ord. 3209 § 1, 2023).
18.95.990 Severability.
If any section, subsection, sentence, clause, paragraph, phrase, or word of this chapter should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality thereof shall not affect the validity or constitutionality of any other section, subsection, sentence, clause, paragraph, phrase or word of this chapter. (Ord. 3064 § 9, 2018).