Chapter 25.85
AFFORDABLE HOUSING INCENTIVES PROGRAM1

Sections:

25.85.010    Purpose.

25.85.020    Locations and descriptions of affordable housing incentive programs.

25.85.030    Modifications of development standards.

25.85.040    Affordable housing agreement.

25.85.060    Implementation provisions.

25.85.010 Purpose.

The incentives and regulations offered in this chapter are used by the city as one means of meeting its commitment to encourage housing affordable to all economic groups, and to meet its regional share of affordable housing requirements. The purpose of this chapter is to:

(1) Help achieve comprehensive plan goals of affordable housing;

(2) Implement through regulations the responsibility of the city under state law to provide for housing opportunities for all economic segments of the community;

(3) Preserve opportunities for affordable housing as the city continues to grow;

(4) Create affordable housing opportunities as a result of increased development capacity in various zones of the city;

(5) Encourage developments that include affordable housing and that combine local incentives provided by the city with resources available from other public and private sources. (Ord. 17-1017 § 2 (Exh. B))

25.85.020 Locations and descriptions of affordable housing incentive programs.

(1) Optional Residential Density Bonus for Affordable Housing.

(a) Applicability. This section applies to all land use applications, except the following: the construction of one single-family dwelling on one lot that can accommodate only one dwelling based upon the underlying zoning designation, which is 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:

(i) 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.

(ii) 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.

(iii) 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 (1)(b) and (c) of this section are summarized in Table 25.85.

Table 25.85: Affordable Housing Density Bonus Provision Summary

Affordable Housing – Optional for Purchase

For Rent

Up to 50% density bonus if each of the bonus units is 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 is 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.

(2) Impact Fee Exemption. Within all zones, exemptions from impact fees for new residential construction are permitted in accordance with DMC 26.05.120. (Ord. 17-1017 § 2 (Exh. B))

25.85.030 Modifications of development standards.

An applicant may request a modification of the minimum required number of parking spaces pursuant to Chapter 25.95 DMC. (Ord. 17-1017 § 2 (Exh. B))

25.85.040 Affordable housing agreement.

Prior to issuing any building permit, an agreement in a form approved by the director 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 Pierce County auditor department. 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. (Ord. 17-1017 § 2 (Exh. B))

25.85.060 Implementation provisions.

The following requirements shall be met for all affordable units created through any of the incentive programs referenced in DMC 25.85.020:

(1) Duration. Affordable housing units that are provided under this section shall remain as affordable housing for a minimum of 50 years except, at the sole discretion of the city, approval may be for a shorter period so that federal underwriting standards are met. But in no case shall the time period be less than 30 years from the date of initial owner occupancy for ownership affordable housing units and for the life of the project for rental affordable housing units.

(2) 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:

(a) 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.

(b) 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.

(c) Size (Bedroom). The affordable housing units shall consist of a range of number of bedrooms that are comparable to units in the overall development.

(d) 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, must be approved by the director. 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.

(e) Design. The exterior design of the affordable housing units must be compatible and comparable with the rest of the dwelling units in the development and must comply with any design standards for the underlying zoning district. 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.

(3) 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.

(4) Monitoring and Fee. The city reserves the right to establish in the affordability agreement referred to in DMC 25.85.040 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.

(5) Administrative Official. The director shall be responsible for administration of this chapter. The director may adopt administrative procedures for implementation of this section. (Ord. 17-1017 § 2 (Exh. B))


1

Code reviser’s note: Prior Ch. 25.85, Grading, as adopted by Ord. 02-707, was repealed by Ord. 02-727 which created a new Ch. 12.07, Excavation and Grading.