H-0175.2  _______________________________________________

                          HOUSE BILL 1725

          _______________________________________________

State of Washington      55th Legislature     1997 Regular Session

By Representatives Ogden, Radcliff, Zellinsky, Grant, Costa, Blalock, Cooper, Murray, Dunshee, Morris, Wood and Mason

Read first time 02/06/97.  Referred to Committee on Government Reform & Land Use.

Encouraging residential housing in urban centers.

    AN ACT Relating to residential housing in urban centers; and amending RCW 84.14.010, 84.14.030, and 84.14.050.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

    Sec. 1.  RCW 84.14.010 and 1995 c 375 s 3 are each amended to read as follows:

    Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

    (1) "City" means:  (a) A city or town with a population of at least one hundred fifty thousand located in a county planning under the growth management act; or (b) the central city of a metropolitan area.

    (2) "Central city" means the largest city within a metropolitan area.  In the case of a metropolitan area that consists of two contiguous counties, the local governments may designate one city as the central city for the purposes of this chapter.

(3) "Governing authority" means the local legislative authority of a city having jurisdiction over the property for which an exemption may be applied for under this chapter.

    (((3))) (4) "Growth management act" means chapter 36.70A RCW.

    (((4))) (5) "Metropolitan area" means a county with a population of at least one hundred fifty thousand.  A metropolitan area may include two contiguous counties that have close economic and social relationships.

(6) "Multiple-unit housing" means a building having four or more dwelling units not designed or used as transient accommodations and not including hotels and motels.  Multifamily units may result from new construction or rehabilitated or conversion of vacant, underutilized, or substandard buildings to multifamily housing.

    (((5))) (7) "Owner" means the property owner of record.

    (((6))) (8) "Permanent residential occupancy" means multiunit housing that provides either rental or owner occupancy on a nontransient basis.  This includes owner-occupied or rental accommodation that is leased for a period of at least one month.  This excludes hotels and motels that predominately offer rental accommodation on a daily or weekly basis.

    (((7))) (9) "Rehabilitation improvements" means modifications to existing structures, that are vacant for twelve months or longer, that are made to achieve a condition of substantial compliance with existing building codes or modification to existing occupied structures which increase the number of multifamily housing units.

    (((8))) (10) "Residential targeted area" means an area within an urban center that has been designated by the governing authority as a residential targeted area in accordance with this chapter.

    (((9))) (11) "Substantial compliance" means compliance with local building or housing code requirements that are typically required for rehabilitation as opposed to new construction.

    (((10))) (12) "Urban center" means a compact identifiable district where urban residents may obtain a variety of products and services.  An urban center must contain:

    (a) Several existing or previous, or both, business establishments that may include but are not limited to shops, offices, banks, restaurants, governmental agencies;

    (b) Adequate public facilities including streets, sidewalks, lighting, transit, domestic water, and sanitary sewer systems; and

    (c) A mixture of uses and activities that may include housing, recreation, and cultural activities in association with either commercial or office, or both, use.

    Sec. 2.  RCW 84.14.030 and 1995 c 375 s 6 are each amended to read as follows:

    An owner of property making application under this chapter must meet the following requirements:

    (1) The new or rehabilitated multiple-unit housing must be located in a residential targeted area as designated by the city;

    (2) The multiple-unit housing must meet the guidelines as adopted by the governing authority that may include height, density, public benefit features, number and size of proposed development, parking, low-income occupancy requirements, and other adopted requirements indicated necessary by the city.  The required amenities should be relative to the size of the project and tax benefit to be obtained;

    (3) The new, converted, or rehabilitated multiple-unit housing must provide for a minimum of fifty percent of the space for permanent residential occupancy.  In the case of existing occupied multifamily development, the multifamily housing must also provide for a minimum of four additional multifamily units.  Existing multifamily vacant housing that has been vacant for twelve months or more does not have to provide additional multifamily units;

    (4) New construction multifamily housing and rehabilitation improvements must be completed within three years from the date of approval of the application;

    (5) Property proposed to be rehabilitated must be vacant at least twelve months before submitting an application and fail to comply with one or more standards of the applicable state or local building or housing codes on or after July 23, 1995; and

    (6) The applicant must enter into a contract with the city approved by the governing body under which the applicant has agreed to the implementation of the development on terms and conditions satisfactory to the governing authority.

    Sec. 3.  RCW 84.14.050 and 1995 c 375 s 8 are each amended to read as follows:

    An owner of property seeking tax incentives under this chapter must complete the following procedures:

    (1) In the case of rehabilitation or where demolition or new construction is required, the owner shall secure from the governing authority or duly authorized agent, before commencement of rehabilitation improvements or new construction, verification of property noncompliance with applicable building and housing codes;

    (2) In the case of new and rehabilitated multifamily housing, the owner shall apply to the city on forms adopted by the governing authority.  The application must contain the following:

    (a) Information setting forth the grounds supporting the requested exemption including information indicated on the application form or in the guidelines;

    (b) A description of the project and site plan, including the floor plan of units and other information requested;

    (c) A statement that the applicant is aware of the potential tax liability involved when the property ceases to be eligible for the incentive provided under this chapter;

    (3) The applicant must verify the application by oath or affirmation; and

    (4) The application must be made on or before April 1 of each year, and must be accompanied by the application fee, if any, required under RCW ((84.14.070)) 84.14.080.  The governing authority may permit the applicant to revise an application before final action by the governing authority.

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