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Ordinance 09-032 Code Text Amendment CTA 05-09: Affordable Housing CITY OF SPOKANE VALLEY SPOKANE COUNTY,WASHINGTON ORDINANCE NO.09-032 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, ADOPTING A NEW SECTION OF THE SPOKANE VALLEY MUNICIPAL CODE, SPECIFICALLY 19.35 RESIDENTIAL DENSITY BONUS, TO ESTABLISH DEVELOPMENT REGULATIONS THAT PROMOTE AFFORDABLE HOUSING IN MF-1, MF-2, CMU, MUC, MUA, CC, AND CB DISTRICT ZONES BY ALLOWING DENSITY BONUSES IN EXCHANGE FOR THE INCLUSION OF AFFORDABLE HOUSING UNITS WITHIN THE DEVELOPMENT; AND AMENDING APPENDIX A TO INCLUDE NEW DEFINITIONS AS NOTED HEREIN. WHEREAS, the City of Spokane Valley (City) adopted the Uniform Development Code (UDC) pursuant to Ordinance 07-015,on the 25th day of September, 2007; and WHEREAS,the UDC became effective on the 28th day of October, 2007; and WHEREAS,the adopted UDC does not provide the regulatory framework for bonus densities in exchange for the inclusion of affordable housing; and WHEREAS,such a regulation is authorized by RCW 36.70A.540; and WHEREAS,a privately initiated text amendment was received by the City on July 23, 2009 proposing density bonuses in exchange for affordable housing in MF-1 and MF-2 zoning classifications; and WHEREAS, through a collaborative process, the applicant, the housing authority, and staff developed title 19.35 Residential Density Bonus, establishing the regulatory framework for bonus densities in exchange for the inclusion of affordable housing; and WHEREAS, the amendment is consistent with the goals and policies of the City's Comprehensive Plan, specifically policy HP-1.3, stating that the City should establish development regulations and incentives for greater diversity of housing types, costs and designs, that may include bonus incentives,. clustering, and transfer of development rights; and WHEREAS, after reviewing the Environmental Checklist, the city issued an Optional Determination of Non- significance (DNS) for the proposal, published the DNS in the Valley News Herald, posted the DNS at City Hall, and at the main branch of the library, and mailed the DNS to all affected public agencies; and WHEREAS, the City provided a copy of the proposed amendment to the Department of Commerce initiating a 60 day comment period pursuant to RCW 36.70A.106; and WHEREAS, the amended ordinance as set forth bears a substantial relation to the public health, safety and welfare and protection of the environment; and WHEREAS, on October 1, 2009, the Planning Commission reviewed the proposed amendments; and WHEREAS,the Planning Commission received evidence, information, public testimony and a staff report and recommendation at a public hearing on October 8, 2009; and WHEREAS, the Planning Commission deliberated on October 8, 2009 and subsequently provided a recommendation; and Ordinance 09-032 Page 1 of 4 WHEREAS,on October 13, 2009, Council reviewed the proposed amendments; and WHEREAS, on October 27, 2009, Council considered a first ordinance reading to adopt the proposed amendment. NOW THEREFORE, THE CITY COUNCIL SPECIFICALLY ORDAINS AS SET FORTH BELOW: SECTION ONE: Adopting Spokane Valley Municipal Code Section 19.35: SVMC 19.35 Residential Density Bonus is adopted as follows: Chapter 19.35 RESIDENTIAL DENSITY BONUS Sections: 19.35.010 Purpose 19.35.020 General 19.35.030 Applicability 19.35.040 Density Calculations 19.35.050 Development Standards 19.35.060 Siting 19.35.070 Approval 19.35.080 Affordability Agreement 19.35.010 Purpose. The purpose of this chapter is to provide density incentives to residential developments to help achieve consistency with the Growth Management Act, the City's Comprehensive Plan, and countywide planning policies for Spokane County. 19.35.020 General. The provisions of this section are available, at the sole discretion of the property owner, as incentives to encourage construction of housing affordable to low and moderate-income households for new multifamily developments. In exchange for residential density bonuses, the applicant is required to provide a well-designed project with additional amenities contributing to the quality of life for the residents. 19.35.030 Applicability. This chapter applies to MF-1, MF-2, CMU, MU, MUA, CC, and CB district zones. Development incorporating affordable housing component may increase the dwelling unit density in the underlying zone pursuant to section 19.35.040, rounded to the nearest whole number in accordance with 19.35.040, provided that required amenities and site design criteria are met. If the density bonus results in an odd number of housing units, the odd unit must be applied as an affordable unit. Projects must be a minimum of twenty units to be eligible for a residential density bonus. 19.35.040 Density Calculations. A. New multifamily or mixed-use projects may provide affordable units as part of the project. One bonus market rate unit is permitted for each affordable unit based on the following criteria: 1. Affordable housing units provided to families whose income is at or below 40 percent of median income may increase the underlying base density by 40 percent. 2. Affordable housing units provided to families whose income is at or below 50 percent of median income may increase the underlying base density by 30 percent. 3. Affordable housing units provided to families whose income is at or below 60 percent of median income may increase the underlying base density by 20 percent. 4. Affordable housing developments may increase the underlying base density an additional 10 percent by providing one of the following: a. LEED certification or equivalent b. alternative energy c. covered bus shelter Ordinance 09-032 Page 2 of 4 d. underground parking e. other amenities determined by the Director to provide comparative benefits. 5. Affordable housing developments may also increase their density by providing additional amenities in the required useable open space: a. benches and fountain—an additional increase of density up to 5 percent b. playground apparatus—an additional increase in density up to 10 percent c. sport court—an additional increase in density up to 10 percent d. Indoor Recreational Facility—an additional increase in density up to 20 percent e. other amenities determined by the Director to provide comparative design benefits —additional increase shall not exceed 10 percent 6. Notwithstanding paragraphs 5(a-e), overall density of a project cannot increase by more than 60 percent of the underlying zone rounded to next whole number. 19.35.050 Development Standards. A. The Director may allow the maximum building height to be exceeded by not more than 25 percent pursuant to 19.140 of the SVMC B. The Director may allow exceptions to yard setback requirements where the deviation is for 10 percent or less of the required yard pursuant to 19.140 of the SVMC C. In addition to the open space requirements of SVMC 19.40.020 developments receiving a density bonus under this Chapter shall provide an additional 5 percent open space(total of 15 percent)to accommodate the additional residents associated with the residential density bonus. D. Site Design Criteria. All developments under this provision shall be subject to the following site design criteria. I. Natural amenities such as views, significant or unique trees, or grouping of trees, creeks, riparian corridors, and similar features unique to the site shall be incorporated into the design. 2. Emphasize, rather than obscure, natural topography. Buildings shall be designed to "step up" or"step down"hillsides to accommodate significant changes in elevation. 3. Projects shall have design continuity by using similar elements throughout the project such as architectural style and features, materials, colors,and textures. 4. Placement of physical features such as play equipment shall be in visible locations to maximize the ability to be seen, and therefore creating a safe environment that discourages crime. 5. Parking structures shall be architecturally consistent with exterior architectural elements of the primary structure(s); including rooflines, facade design, and finish materials. 6. Pedestrian pathways and pedestrian areas shall be delineated by separate paved routes using a variation in paved texture and color, and protected from abutting vehicle circulation areas with landscaping or other methods. 19.35.060 Siting. The affordable units constructed under the provisions of this chapter shall be included within the parcel of land for which the density bonus is granted. 19.35.070 Approval. Prior to the issuance of any permit(s), the City shall review and approve the location and unit mix of the affordable housing units consistent with the above standards as well as the following standards: A. If the affordable housing development has both affordable and market rate units, the affordable units shall be floating units. A "Floating" designation provides the flexibility to maintain a certain number of affordable units throughout the required period, allowing the specific units to vary with availability. The floating units ensure that affordable units are indistinguishable from and interchangeable with market-rate units; B. The design and appearance of affordable housing units shall be compatible with the total housing development and be consistent with design criteria outlined in SVMC 19.35.050(D); Ordinance 09-032 Page 3 of 4 C. Affordable housing units shall have an equivalent bedroom mix consistent with the total housing development; except that the developer may include a higher proportion of affordable housing units with more bedrooms; 19.35.080 Affordability agreement. Prior to issuing a certificate of occupancy, an agreement in a form acceptable to the City that insures compliance with the provisions of 19.35 of this code shall be recorded with Spokane County Auditor's Office. This agreement shall be a covenant running with the land and shall be binding on the assigns, heirs, and successors of the applicant. Affordable housing units that are provided under this section shall remain as affordable for the life of the project for rental affordable housing units. SECTION TWO: The following definitions shall be added to Appendix A: Affordable Housing: Where the term affordable is used, it refers to the federal definition of affordability stating that annual housing costs shall not exceed one third of a family's annual income. When establishing affordability standards for moderate to extremely low-income families and individuals the median household income is the amount calculated and published by the United States Department of Housing and Urban Development each year for Spokane County. Recreational Facility, Indoor: A place designed and equipped for the conduct of sports and leisure-time activities within an enclosed space. Examples include gymnasiums, amusement arcades, health and fitness clubs, indoor tennis and racquetball courts, bowling alleys, and indoor swimming pools. This definition excludes indoor sports arenas, auditoriums, and exhibition halls. SECTION THREE: All other provisions of SVMC Title 19 and Appendix A (Definitions) not specifically referenced hereto shall remain in full force and effect. SECTION FOUR: Severability. If any section, sentence, clause or phrases of this Ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, clause, or phrase of this Ordinance. SECTION FIVE: Effective Date. This ordinance shall be in full force and effect five (5) days after the publication of the Ordinance, or a summary thereof, occurs in the official newspaper of the City as provided by law. Passed by the City Council this 17'h day of November, 2009. ATE hard M. Mun e , Mayor pBainbridge, ity Clerk Approve d as o Form: O fic.ohe City A rney Date of Publication: Effective Date: f - Y Ordinance 09-032 Page 4 of 4