A. If at any time the director determines that the property no longer complies with the terms of the contract or with the requirements of this chapter, or the use of the property is changed or will be changed to a use that is other than residential, or if the owner intends to discontinue compliance with the affordable housing requirements as described in ECC 3.38.030, or the property for any reason no longer qualifies for the tax exemption, the tax exemption shall be canceled and additional taxes, interest and penalties imposed pursuant to state law.

B. If the owner intends to convert the multifamily housing to another use or intends to discontinue compliance with the affordable housing requirements as described in ECC 3.38.030, the owner must notify the director and the Snohomish County assessor within 60 days of the change in use. Upon such change in use, the tax exemption shall be canceled and additional taxes, interest and penalties imposed pursuant to state law.

C. Upon determining that a tax exemption shall be canceled, the director shall notify the property owner by certified mail, return receipt requested. The property owner may appeal the determination by filing a notice of appeal with the city clerk, within 30 days after issuance of the decision by the director, specifying the factual and legal basis for the appeal. The appeal before the hearing examiner shall follow the procedures set forth for appeals of Type II decisions. At the appeal hearing, all affected parties may be heard and all competent evidence received. The hearing examiner shall affirm, modify, or repeal the decision to cancel the exemption based on the evidence received. The hearing examiner shall give substantial weight to the director’s decision to cancel the exemption, and the burden of proof and the burden of overcoming the weight accorded to the director’s decision shall be upon the appellant. An aggrieved party may appeal the hearing examiner’s decision to the Snohomish County superior court in accordance with the procedures in RCW 34.05.510 through 34.05.598, as provided in RCW 84.14.110(2), within 30 days after issuance of the decision of the hearing examiner. [Ord. 4047 § 1, 2016].