Chapter 15.70
QUALIFIED AFFORDABLE HOUSING INFRASTRUCTURE AND FEE SUPPORT

Sections:

15.70.010    Purpose and applicability.

15.70.020    Administrative authority.

15.70.030    Definitions.

15.70.040    Covenants required.

15.70.010 Purpose and applicability.

A.    Purpose. The purpose of this chapter is to authorize the use of Washington State’s CHIP (Connecting Housing to Infrastructure Program) and/or other grant funds to finance the extension and improvement of public infrastructure necessary to support affordable housing projects that meet program requirements, and/or to waive or reduce certain development charges for applicants of new, permanently affordable residential units.

1.    This chapter is not intended to authorize administrative waivers or reductions of development requirements, or to authorize a reduction in the revenue(s) generated by new development. This chapter anticipates that in all cases, the reduced or waived fee(s) collected from new development would be paid to the City in full by other parties. The chapter further anticipates that in all cases, capital improvements associated with the project and/or are intended to mitigate the impacts of the project will be completed per the Ferndale Municipal Code, and any variances to the physical requirements of the development shall be considered in accordance with relevant requirements and procedures described by the Ferndale Municipal Code.

B.    Applicability. A residential development consisting of new affordable residential units within the City may be eligible to benefit from infrastructure and/or fee support, if:

1.    It meets affordability requirements described by RCW 36.70A.620;

2.    It includes a covenant or deed restriction recorded with the Whatcom County Auditor ensuring the housing remains affordable for at least 20 years or as otherwise required by law; and

3.    It is consistent with the City’s Comprehensive Plan and housing action plan. (Ord. 2272 § 1 (Exh. 1), 2025)

15.70.020 Administrative authority.

A.    The City Administrator, or designee, is authorized to develop administrative procedures and application processes consistent with state law and this chapter.

B.    The City Council shall approve each CHIP-funded infrastructure project by resolution, confirming compliance with eligibility criteria and public benefit. (Ord. 2272 § 1 (Exh. 1), 2025)

15.70.030 Definitions.

As used in this chapter, the following terms have the meanings set forth below:

“Affordable housing” means residential housing that is rented or owned by a person or household whose monthly housing costs, including utilities other than telephone, do not exceed 30 percent of the household’s monthly income, for households earning up to 80 percent of the area median income, adjusted for household size.

“CHIP” means the Washington State Connecting Housing to Infrastructure Program, administered by the Washington State Commerce Department.

“Eligible infrastructure” means public facilities including, but not limited to, water, sewer, and stormwater improvements necessary for the construction of new affordable housing units. (Ord. 2272 § 1 (Exh. 1), 2025)

15.70.040 Covenants required.

A covenant or deed restriction approved by the City Attorney shall be recorded for each benefiting affordable housing project, ensuring compliance with long-term affordability requirements and providing that any conversion to a noneligible use shall trigger repayment obligations consistent with program guidelines. (Ord. 2272 § 1 (Exh. 1), 2025)