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A. The value of new housing construction qualifying under this chapter shall be exempt from ad valorem property taxation for eight or 12 successive years beginning January 1st of the year immediately following the calendar year of issuance of the certificate for rental projects where at least the required minimum number of units are affordable units as specified in Table 1.

Table 1. Affordability Levels

Length of Exemption

Dwelling Unit Type

Percentage of Project Units

Affordability Level

Projects in zoning districts that require affordable housing

8 years

Micro-apartments

10%

40% of AMI

Other dwelling units

15%

60% of AMI

12 years

Micro-apartments

20%

50% of AMI

Other dwelling units

20%

60% of AMI

Projects in zoning districts that do not require affordable housing

12 years

Micro-apartments

20%

50% of AMI

Other dwelling units*

10%

10%

60% of AMI

70% of AMI

*20% of the project units total, with 10% affordable to 50% of AMI and 10% affordable to 70% of AMI.

Pursuant to the authority of RCW 84.14.010, the city finds that the higher income levels specified in the definition of affordable housing in this chapter, rather than those stated in the definitions of RCW 84.14.010, are needed to address local housing market conditions in the city.

B. For any affordable units required in this section, the following shall apply:

1. Affordable units shall have affordable rents as defined in BMC 3.90.030. The mix and configuration of affordable units (e.g., studio, one-bedroom, two-bedroom, etc.) at each affordability level shall be substantially proportional to the mix and configuration of the total housing units in the project unless otherwise approved by the director.

2. Affordable units will be reserved for occupancy by eligible households.

3. The location of the affordable units shall be approved by the director, with the intent that they generally be intermingled with all other dwelling units in the development.

4. The exterior materials and design of the affordable units must be comparable with the other dwelling units in the development, with similarity in building finishes, rooflines and landscaping. The interior finish and quality of construction of the affordable units shall at a minimum be comparable to entry level rental housing in the city.

5. If the percentage of required affordable units in the project results in a fraction of an affordable unit, then the number of required affordable units shall be rounded up to the next whole number. Alternatively, with authorization of the director, the developer may compensate the city by payment of fee in lieu of the fractional affordable unit in accordance with procedures set forth in BMC 12.07.050(D).

C. The exemption does not apply to the value of land or to the value of improvements not qualifying under this chapter, to increases in assessed valuation of land and nonqualifying improvements, or to increases made by lawful order of the board of equalization of the county in which the project is located, Washington State Department of Revenue, State Board of Tax Appeals, King County, or Snohomish County to a class of property throughout the county or a specific area of the county to achieve uniformity of assessment or appraisal as required by law. (Ord. 2358 § 1, 2021).