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HomeMy WebLinkAboutOrdinance 24-019 SVMC 3.49 Land donation for affordable housingCITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON ORDINANCE NO.24-019 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY AMENDING CHAPTER 3.49 OF THE SPOKANE VALLEY MUNICIPAL CODE TO AUTHORIZE LAND TO BE DONATED FOR AFFORDABLE HOUSING AND CODIFY THE GRANT AWARD PROCESS WHEREAS, the City Council adopted Chapter 3.49 of the Spokane Valley Municipal Code to regulate, among other things, how the City may dispose of surplus real estate; and WHEREAS, the City Council finds that there is a need for development of affordable housing options within the City for low-income families; and WHEREAS, RCW 39.33.015 authorizes municipalities to donate, grant, or otherwise dispose of real property owned by such municipalities for less than fair market value when the property is to be dedicated for housing that is affordable for those whose income does not exceed 80% of the median household income in the area where the housing is located; and WHEREAS, in order for the City to donate, grant, or otherwise dispose of surplus property for less than fair market value per RCW 39.33.015, the City Council must first enact rules to regulate the disposition of property for public benefit purposes; and WHEREAS, the City Council desires to create opportunities for development of affordable housing for low-income families within the City; and WHEREAS, the City Council further finds that the development of affordable housing for low- income families promotes and protects the public's peace, health, safety and welfare; NOW, THEREFORE, the City Council of the City of Spokane Valley, Washington, does ordain as follows: Section 1. Amending Title 3, Chapter 49, Spokane Valley Municipal Code. SVMC 3.49 et seq. is hereby amended as follows: Chapter 3.49 PROPERTY ACQUISITION DISPOSITION, AND GRANTS Sections: 3.49.010 Acquisition of real property. 3.49.020 Disposition of City property. 3,49.030 Grant or Transfer of Surplus Real Property for Affordable Housing. 3.49.040 Grant of City funds. 3.49.010 Acquisition of real property. The city manager is authorized to negotiate the purchase of real property, which shall be based upon a fair -market value appraisal of the property. The City shall not pay more than fair -market value for any real property, except as may be approved by the Washington State Department of Transportation on behalf of the City for road construction projects. Final approval of any purchase of real property shall be obtained from city council prior to purchase; provided city council may delegate authority for approval and purchase to the city manager or City staff as may be appropriate. (Ord. 15-022 § 12, 2015). Ordinance 24-019 Amending Chapter 3.49 SVMC — Surptus Land to be Donated for Affordable Housing & Codify Grant Award Process 3.49.020 Disposition of City property. A. Declaring Real and Personal Property Surplus. The decision to declare City property surplus shall rest solely with the city council. Personal property with a value of less than $10.00 is declared to be of de minimis value and exempt from this provision. Employees of the City shall not be allowed to purchase surplus property from the City. 1. Upon a finding by a department director that the City property is surplus to departmental use, the city manager shall provide notice of potential disposition to other City departments. If any department director desires to acquire and use the proposed surplus City property, the property may be transferred to the requesting department director, or other authorized representative. 2. If no request for the use of proposed surplus property is received from staff, notice and recommendation of the proposal to declare the City property surplus shall be given to the city council. The city council may pass a resolution declaring the City property surplus. 3. The city council may declare City property surplus upon one or more of the following criteria: a. The City has or anticipates no practical, efficient, or appropriate use for the property. b. The purpose served by the property can be accomplished by use of a better, less costly or more efficient alternative. c. The purpose served by the property no longer exists as determined by a change of policy or practice. d. The property is damaged, inoperable or obsolete and the cost of repairing the same is uneconomical or impractical. e. The property is or is anticipated to be suitable for use as affordable housing as defined by SVMC 3.49.030(B)(1). B. Sale of Property. Following passage of a resolution declaring City property surplus, City property shall be sold or disposed of in accordance with the following: 1. The city manager may dispose of surplus personal property by public auction, bid, or other method of sale on terms deemed to be in the best interests of the City. 2. Surplus personal property which is unsellable because of obsolescence, wear and tear, or other reasons may be dismantled, if necessary, and sold as scrap. 3. For surplus real property, the city manager shall either (a) secure a market value appraisal and proceed to sell the same by public auction or through other procedures the city manager deems to be in the best interests of the City, or (b) transfer the real property to a third party for affordable housing development and/or use for less than fair market value or at no cost to the recipient except for transaction costs that the City would otherwise be liable for as a result of the transfer. C. Trade of Real Property. Real property may be traded under the following conditions: 1. If the city manager determines that the disposal of real property declared surplus under this section could realize greater benefit to the City through consideration other than cash, the city manager may invite prospective purchasers to tender consideration of cash and/or property. Upon receipt of a bid or offer tendering in -kind consideration, and prior to accepting such bid or offer, the city manager shall make a report setting forth the benefits of such a transaction. This report shall be made to the city council at a formal meeting and shall be open to the public. Ordinance 24-019Amending Chapter 3.49 SVMC—Surplus Land to be Donated for Affordable Housing & Codify Grant Award Process 2. Before accepting any bid or offer containing in -kind consideration, an adequate appraisal shall have been made by a qualified independent appraiser. 3. If the city council finds that the bid or offer containing the in -kind consideration has more value or benefit to the City than any other bid or offer submitted, the city manager may accept the bid or offer containing in -kind consideration. D. Lease of Public Property. The city manager may authorize the lease or sublease of any property, including real property, under such terms and conditions as the city manager may deem desirable, fair and appropriate, either by use of negotiations or bidding in the best interests of the City. Leases of real property shall not be granted for a period of more than five years, unless otherwise authorized by the city council. (Ord. 15-022 § 12, 2015). 3.49.030 Grant or Transfer of Surplus Real Property for Affordable Housing. A. Purpose. The purpose of this section is to provide for the granting, donation, or transfer at less than fair market value of City real property for public benefit purposes pursuant to RCW 39.33.015. B. Definitions. 1. "Affordable housing" means housing occupied by low-income and/or very low-income households (as defined by RCW 43.63A.510), the cost of which for any such occupying households does not exceed the following: (i) for rental housing, 30 percent of the household's monthly income for rent and utilities, other than telephone; or (ii) for permanently affordable homeownership, 38 percent of the household's monthly income for mortgage principal, interest, property taxes, homeowner's insurance, homeowner's association fees, and land lease fees, as applicable. In addition, total household debt is no more than 45 percent of the monthly household income. 2. "Public benefit" means affordable housing, which can be rental housing or permanently affordable homeownership for low-income and very low-income household as defined in RCW 43.63A.510, and related facilities that support the goals of affordable housing development in providing economic and social stability for low-income persons. 3. "Surplus real property" means real property of the City that the City Council has determined to be surplus pursuant to SVMC 3.49.020(A). C. Transfer of Surplus Real Property. The City Manager, with advance approval by the City Council, may transfer, lease, or otherwise dispose of surplus real property to a public, private, or nongovernmental body on any mutually agreeable terms and conditions, including a no cost transfer, subject to and consistent with RCW 39.33.015, so long as: 1. Said transfer is for a public benefit purpose; 2. The recipient of such property pays all costs of the transfer, including but not limited to any appraisal costs, debt service expense, title fees, excise tax, recording fees and any other liabilities that would otherwise be paid by the City as a result of said transfer; 3. The transfer, lease, or disposal of the surplus real property does not violate any bond covenant or encumber or impair any contract; Ordinance 24-019 Amending Chapter 3.49 SVMC— Surplus Land to be Donated for Affordable Housing & Codify Grant Award Process 4. The deed, lease, or other instrument transferring or conveying the surplus real property includes (a) a covenant or other requirement that the property shall be used for the designated public benefit purpose; and (b) remedies that apply if the recipient of the property fails to use it for the designated public purpose or ceases to use it for such purpose; 5. The public benefit purpose and planned use of the surplus real property is consistent with existing locally adopted zoning code and comprehensive plan; and 6. The recipient is selected through either the "request for proposals" or "request for qualifications" process identified in SVMC 3.46.010(B). 3.49.030 Grant of City funds. A. The City Council has the authority to direct the City Manager to make grants of City funds to third party recipients for any lawful purpose, including for the benefit of the poor and infirm. B. The recipient of any grant of City funds shall be selected through either the "request for proposals" or "request for qualifications" process identified in SVMC 3.46.101(B). C. Any grant of City funds made hereunder shall be made only if the recipient enters into a grant agreement that, at minimum, (i) identifies the purposes for which the grant funds may be expended, (ii) when applicable, identifies the performance measures and outcomes to be achieved; (iii) requires the recipient to provide the City with a report each fiscal quarter that details how the recipient expended the funds and includes copies of source documents evidencing each expenditure, (iv) identifies the timeframe within which the grant funds must be used in their entirety, (v) identifies the terms under which the City can terminate the grant agreement for recipient's breach of the grant agreement terms and/or the City's convenience; and (vi) provides the City with remedies to recover, from the recipient or others, any and all funds that were either not expended or expended in violation of the terms of the grant agreement. Section 2. Remainder of SVMC 3.49 — Unchanged. The remaining provisions of SVMC 3.49 are unchanged by this amendment. Section 3. Severability. If any section, sentence, clause or phrase 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, sentence, clause or phrase of this Ordinance. Section 4. Effective Date. This Ordinance shall be in full force and effect five (5) days after the date of publication of this Ordinance or a summary thereof in the official newspaper of the City. PASSED by the City Council this 23rd day of December 2024. Mayor, Pam Haley ATTEST: Marci atterson, City Clerk Ordinance 24-019 Amending Chapter 3.49 SVMC—Surplus Land to be Donated for Affordable Housing & Codify Grant Award Process Approved As To Form: Kelly KpWrighi, City Date of Public, Effective Date: Ordinance 24-019 Amending Chapter 3.49 SVMC—Surplus Land to be Donated for Afford able Housing & Codify Grant Award Process