BILL REQ. #: H-2738.2
State of Washington | 59th Legislature | 2005 Regular Session |
Read first time 04/14/2005. Referred to Committee on Local Government.
AN ACT Relating to density bonus incentives to provide affordable housing; and adding a new chapter to Title 36 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 (1) The legislature finds that housing
prices in metropolitan areas of the state have been increasing faster
than the ability of many households to afford suitable housing and that
costs of land and new housing construction are impeding the adequate
provision of affordable housing units. The legislature further finds
that the growth management act requires many counties, cities, and
towns to concentrate new growth within designated urban growth areas
and at the same time to encourage the availability of affordable
housing for all economic segments of the population. The legislature
further finds that incentives offered to private developers are useful
in creating public benefit amenities, including affordable housing,
within private developments.
(2) The legislature declares that it is the purpose of this act to:
(a) Increase the supply of affordable housing within jurisdictions
subject to the growth management act, (b) promote infill development
and diversity of housing within urban growth areas, and (c) rely on
voluntary participation by private property owners through optional
incentives rather than mandatory inclusion standards.
NEW SECTION. Sec. 2 The definitions in this section apply
throughout this chapter unless the context clearly requires otherwise.
(1) "Affordable housing" means housing that has a sales price or
rental amount that is within the means of a household that may occupy
moderate-income or low-income housing. In the case of dwelling units
for sale, affordable housing means housing in which annual housing
costs do not exceed thirty percent of such gross annual household
income for a household of the size that may occupy the particular unit.
In the case of dwelling units for rent, affordable housing means
housing for which the affordable rent does not exceed thirty percent of
such gross annual household income for a household of the size that may
occupy the particular unit.
(2) "Affordable housing development" means any housing development
that is subsidized by the federal, state, or local government, or any
housing development in which at least twenty percent of the dwelling
units are subject to covenants or restrictions that require such
dwelling units to be sold or rented at prices that ensure the units
remain as affordable housing.
(3) "Affordable housing density bonus incentive" means a density
bonus incentive granted to an applicant for an affordable housing
development under an ordinance required by this chapter.
(4) "Affordable rent" means monthly housing expenses, including a
reasonable allowance for utilities, for affordable housing units that
are for rent to moderate-income or low-income households.
(5) "Affordable sales price" means a sales price at which moderate-income or low-income households can qualify for the purchase of
affordable housing, calculated on the basis of underwriting standards
or mortgage financing available for the housing development.
(6) "Density bonus" means the percentage of density increase
granted over the otherwise maximum allowable net density under the
applicable development regulations as of the date of application to the
permitting government for affordable housing density bonus incentives.
The density bonus applicable to affordable housing shall be at least a
twenty-five percent increase and shall apply to the site of the
affordable housing development.
(7) "Development agreement" means a development agreement
authorized by RCW 36.70B.170 and required by this chapter.
(8) "Housing development" means construction, including
rehabilitation, projects consisting of five or more residential units,
including single-family, two-family, and multiple-family residences for
sale or rent.
(9) "Low-income housing" means housing that is affordable,
according to standards of the United States department of housing and
urban development, for either ownership or rental and that is occupied,
reserved, or marketed for occupancy by households with a gross
household income that does not exceed eighty percent of the median
gross household income for households of the same size within the
county in which the housing is located.
(10) "Moderate-income housing" means housing that is affordable,
according to standards of the United States department of housing and
urban development, for either ownership or rental and that is occupied,
reserved, or marketed for occupancy by households with a gross
household income that is greater than eighty percent but not in excess
of one hundred twenty percent of the median gross household income for
households of the same size within the county in which the housing is
located.
NEW SECTION. Sec. 3 (1) All cities, towns, and counties planning
under RCW 36.70A.040 shall adopt or amend by ordinance and incorporate
into their development regulations, zoning regulation, or other
official control an authorization for density bonus incentives for the
provision of affordable housing that apply to urban growth areas as
designated under RCW 36.70A.110 and that are consistent with this
chapter. Any other city, town, or county may adopt an ordinance
authorizing density bonus incentives for the provision of affordable
housing.
(2) The legislative body of a city, town, or county may adopt or
amend an ordinance authorizing density bonus incentives for affordable
housing only after the legislative body has adopted or amended the
housing element of its comprehensive plan to include a policy for
density bonus incentives that is consistent with this chapter.
NEW SECTION. Sec. 4 All affordable housing density bonus
incentives ordinances adopted as required by this chapter shall include
the following minimum provisions:
(1) A statement of purpose that is consistent with the stated
purposes of this chapter;
(2) A statement of consistency with the housing element of the
applicable city, town, or county comprehensive plan and the applicable
countywide planning policy document required under RCW 36.70A.210;
(3) Definitions as appropriate for such words or terms included in
the affordable housing density bonus incentive ordinance, provided that
where words or terms are defined in this chapter the ordinance shall
incorporate those definitions, either directly or by reference;
(4) Procedures, standards, and decision maker for the review and
decision on applications for affordable housing density bonus
incentives that: (a) Are consistent with this chapter; and (b) are
consistent with and may be consolidated with the procedures and
standards for the review of the project application to which the
incentives will apply;
(5) A requirement that every project applicant who is to receive
affordable housing density bonus incentives shall enter into a
development agreement with the applicable city, town, or county that is
consistent with section 6 of this act;
(6) Provisions for enforcement of the development agreement,
including the issuance of certificates of compliance; and
(7) Provisions to ensure that, after the affordable housing project
has been constructed, the availability of the affordable housing units
will be maintained through measures that establish income
qualifications for affordable housing renters or purchasers, promote
affirmative marketing, and regulate the rent or price, including resale
price, of affordable housing units.
NEW SECTION. Sec. 5 (1) An affordable housing density bonus
incentives ordinance may require that any new housing development
within the jurisdiction of the ordinance contain at least twenty
percent affordable housing if such a requirement is consistent with a
policy included in the applicable city, town, or county comprehensive
plan.
(2) If the requirement of subsection (1) of this section is
included in the ordinance, the affordable housing density bonus
incentives offered to the project applicant shall be of at least
equivalent financial value to the cost at the time of construction of
making the affordable housing units affordable.
NEW SECTION. Sec. 6 The development agreement entered into
between the applicant for the project that is to include affordable
housing units and the city, town, or county that must grant the project
approval and the affordable housing density bonus shall include
provisions to ensure the availability of the affordable housing units
for sale or rent.
(1) The development agreement shall provide for a period of
availability for affordable housing as follows:
(a) Newly constructed moderate-income and low-income sales and
rental housing units shall be subject to affordability controls for a
period of at least fifteen years, which period may be renewed pursuant
to the development agreement;
(b) Rehabilitated owner-occupied single-family housing units that
are improved to code standards shall be subject to affordability
controls for at least five years;
(c) Rehabilitated renter-occupied housing units that are improved
to code standards shall be subject to affordability controls on
rerental for at least ten years;
(d) Any dwelling unit created through the conversion of a
nonresidential structure shall be considered a new housing unit and
shall be subject to affordability controls as delineated in (a) of this
subsection;
(e) Affordability controls on owner-occupied or renter-occupied
accessory apartments shall be applicable for a period of at least five
years; and
(f) Alternatives not otherwise described in this subsection shall
be controlled in a manner deemed suitable to the city, town, or county
and shall provide assurances that such arrangements will house
moderate-income or low-income households for at least ten years.
(2) In the case of for-sale housing units, the development
agreement shall include the following affordability controls governing
the initial sale and use and any resale:
(a) All conveyances of newly constructed affordable housing units
subject to the affordable housing density bonus incentives ordinance
that are for sale shall contain a deed restriction and mortgage lien,
which shall be recorded with the applicable county department of
records and elections; any restrictions on future resale shall be
included in the deed restriction as a condition of approval enforceable
through legal and equitable remedies;
(b) Affordable housing units shall upon initial sale and upon
resale during the period covered by the development agreement be sold
to eligible moderate-income and low-income households at an affordable
sales price and housing cost; and
(c) Affordable housing units shall be occupied by eligible
moderate-income or low-income households during the period covered by
the development agreement.
(3) In the case of rental housing units, the development agreement
shall include the following affordability controls governing the use of
affordable housing units during the use restriction period:
(a) Rules and procedures for qualifying tenants, establishing
affordable rent, filling vacancies, and maintaining affordable housing
rental units for qualified tenants;
(b) Requirements that owners verify tenant incomes and maintain
books and records to demonstrate compliance with the agreement and with
the ordinance; and
(c) Requirements that owners submit an annual report to the local
government demonstrating compliance with the agreement and with the
ordinance.
NEW SECTION. Sec. 7 The granting of affordable housing density
bonus incentives shall constitute a development permit. The review and
decision procedures for an application for such incentives permit shall
be included in the local project review process as established by each
city, town, or county.
NEW SECTION. Sec. 8 This chapter does not require or limit the
provision of direct financial aid by the city, town, or county, the
provision of publicly owned land, or the waiver or reduction of fees,
including impact fees, or of dedication or exaction requirements
required under the city, town, or county codes to assist the
development of affordable housing.
NEW SECTION. Sec. 9 The department of community, trade, and
economic development shall within one year after the effective date of
this act prepare and distribute to cities, towns, and counties that are
subject to this chapter a model affordable housing density bonus
incentives ordinance that is consistent with this chapter. The
department may also prepare and distribute guidelines that are
consistent with this chapter to assist cities, towns, and counties in
complying with this chapter.
NEW SECTION. Sec. 10 Sections 1 through 9 of this act constitute
a new chapter in Title