BILL REQ. #:  H-1855.1 

Read first time 02/12/2007.   Referred to Committee on Finance.

     AN ACT Relating to property tax exemptions for multiple-unit housing in urban centers within the boundaries of the campus facilities master plan of any state institution of higher education; amending RCW 84.14.010, 84.14.030, and 84.14.040; creating a new section; providing an effective date; and declaring an emergency.

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

Sec. 1   RCW 84.14.010 and 2002 c 146 s 1 are each amended to read as follows:
     Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
     (1) "Campus facilities master plan" means the area that is defined by a state institution of higher education as necessary for the future growth and development of its campus facilities wherever located within the state.
     (2) "City" means either (a) a city or town with a population of at least thirty thousand or (b) the largest city or town, if there is no city or town with a population of at least thirty thousand, located in a county planning under the growth management act.
     (((2))) (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) "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))) (6) "Owner" means the property owner of record.
     (((6))) (7) "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))) (8) "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))) (9) "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))) (10) "State institution of higher education" means the University of Washington, Washington State University, Central Washington University, Eastern Washington University, Western Washington University, The Evergreen State College, and any of Washington state's community, vocational, or technical colleges.
     (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 2005 c 80 s 1 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 new or rehabilitated multiple-unit housing must not be located within the boundaries of a campus facilities master plan, unless the affected state institution of higher education has granted written approval prior to the time of application for the exemption;
     (3) 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 or moderate-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))) (4) 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))) (5) New construction multifamily housing and rehabilitation improvements must be completed within three years from the date of approval of the application;
     (((5))) (6) Property proposed to be rehabilitated must fail to comply with one or more standards of the applicable state or local building or housing codes on or after July 23, 1995. If the property proposed to be rehabilitated is not vacant, an applicant shall provide each existing tenant housing of comparable size, quality, and price and a reasonable opportunity to relocate; and
     (((6))) (7) 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 84.14.040 and 1995 c 375 s 7 are each amended to read as follows:
     (1) The following criteria must be met before an area may be designated as a residential targeted area:
     (a) The area must be within an urban center, as determined by the governing authority;
     (b) The area must lack, as determined by the governing authority, sufficient available, desirable, and convenient residential housing to meet the needs of the public who would be likely to live in the urban center, if the desirable, attractive, and livable places to live were available; and
     (c) The providing of additional housing opportunity in the area, as determined by the governing authority, will assist in achieving one or more of the stated purposes of this chapter.
     (2) For purposes of this chapter, a residential targeted area may include property located within the boundaries of a campus facilities master plan, if consistent with the provisions of RCW 84.14.030, which provide that no new or rehabilitated multiple-unit housing may be located within the boundaries of a campus facilities master plan, unless the affected state institution of higher education has granted written approval prior to the time of application for the exemption.
     (3) For the purpose of designating a residential targeted area or areas, the governing authority may adopt a resolution of intention to so designate an area as generally described in the resolution. The resolution must state the time and place of a hearing to be held by the governing authority to consider the designation of the area and may include such other information pertaining to the designation of the area as the governing authority determines to be appropriate to apprise the public of the action intended.
     (((3))) (4) The governing authority shall give notice of a hearing held under this chapter by publication of the notice once each week for two consecutive weeks, not less than seven days, nor more than thirty days before the date of the hearing in a paper having a general circulation in the city where the proposed residential targeted area is located. The notice must state the time, date, place, and purpose of the hearing and generally identify the area proposed to be designated as a residential targeted area.
     (((4))) (5) Following the hearing, or a continuance of the hearing, the governing authority may designate all or a portion of the area described in the resolution of intent as a residential targeted area if it finds, in its sole discretion, that the criteria in subsections (1) through (((3))) (4) of this section have been met.
     (((5))) (6) After designation of a residential targeted area, the governing authority shall adopt standards and guidelines to be utilized in considering applications and making the determinations required under RCW 84.14.060. The standards and guidelines must establish basic requirements for both new construction and rehabilitation including application process and procedures. These guidelines may include the following:
     (a) Requirements that address demolition of existing structures and site utilization; and
     (b) Building requirements that may include elements addressing parking, height, density, environmental impact, and compatibility with the existing surrounding property and such other amenities as will attract and keep permanent residents and that will properly enhance the livability of the residential targeted area in which they are to be located.

NEW SECTION.  Sec. 4   Sections 1 through 3 of this act apply retroactively to December 1, 2005.

NEW SECTION.  Sec. 5   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2007.