Chapter 18.21
AFFORDABLE HOUSING

Sections:

18.21.005    Generally.

18.21.010    Purpose.

18.21.020    General provisions for optional affordable housing.

18.21.030    Optional residential density bonus for affordable housing.

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. 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 recorded agreement and covenant running with the land, binding all the assigns, heirs and successors of the applicant.

2. Home Ownership Units. 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.

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 BIMC 18.21.030 is applicable, the owner of the affected parcels shall deliver to the city a duly executed covenant running with the land, 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. In subdivisions where the applicant intends to sell the individual unimproved lots, 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. 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.

Table 18.21: Affordable Housing Density Bonus Provision Summary 

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)