A proposed project must meet the following requirements for consideration for a property tax exemption:
A. Location. The project must be located within one of the residential target areas designated in Section 3.78.040 and Exhibit 1.
B. Size. The project must include at least eight units of multifamily housing within a residential structure or as part of a mixed-use development. A minimum of four new units must be constructed or at least four additional multifamily units must be added to existing occupied multifamily housing. Existing multifamily housing that has been vacant for twelve months or more does not have to provide additional units so long as the project provides at least four units of new, converted, or rehabilitated multifamily housing.
C. Permanent Residential Housing. At least fifty percent of the space designated for multifamily housing must be provided for permanent residential occupancy, and only that portion of the space designated for multifamily housing shall be eligible for the exemption provided for herein.
D. Tenant Displacement. If the property proposed to be rehabilitated is not vacant prior to application, an applicant must provide each existing tenant housing of comparable size, quality, and price and a reasonable opportunity to relocate.
E. Compliance with Guidelines and Standards. The project shall be designed to comply with the city’s comprehensive plan, building, housing, and zoning codes, and any other applicable regulations in effect at the time the application is approved. Rehabilitation and conversion improvements must comply with the city’s local housing standard. New construction must comply with the current building and development codes adopted by the city.
F. Affordable Housing.
1. Affordable Housing for Twelve-Year Tax Exemption. Projects which are seeking a twelve-year tax exemption shall provide twenty percent of the units as follows:
a. Area 1 (Metro Everett), Area 2 (Evergreen Way) and Area 3 (North Broadway). Projects located within these areas seeking a twelve-year tax exemption shall provide:
(1) Ten percent of the units affordable to households whose income is at or below sixty percent of the median household income adjusted for household size for Snohomish County; and
(2) Ten percent of the units affordable to households whose income is at or below eighty percent of the median household income adjusted for household size for Snohomish County.
b. Area 4 (Waterfront) and Area 5 (Riverfront). Projects located within these areas seeking a twelve-year tax exemption shall provide:
(1) Ten percent of the units affordable to low-income households; and
(2) Ten percent of the units affordable to moderate-income households.
2. Adjustment for Three-Plus Bedroom Units. The affordable housing requirement can be met for rental occupancy, either partially or fully, for any units with three or more bedrooms that are available to households whose adjusted income is at or below eighty percent of median household income adjusted for household size for Snohomish County.
3. Owner Occupancy. In the case of projects intended exclusively for owner occupancy, the affordable housing requirement means residential housing that is within the means of low- or moderate-income households.
4. The planning director is authorized to publish income and rent limits, including the use of rent and income calculators, to assist in implementation of these affordable housing requirements. (Ord. 3675-19 § 2, 2019; Ord. 3635-18 § 2, 2018.)