HomeMy WebLinkAbout4968
ORDINANCE NO. 4968
AN ORDINANCE of the City Council of the City of
Bremerton, Washington, creating Chapter 3.78 of the Bremerton
Municipal Code relating to exemptions from ad valorem property
taxation for new multi-family housing in designated residential
targeted areas of the City, establishing a residential targeted area
for the multi-family property tax exemption within the Downtown
Core and Multiple Residential zones and amending Chapter 3.01 of
the Bremerton Municipal Code establishing a fee for applications
for multi-family property tax exemptions.
WHEREAS, the current provisions of the Bremerton Municipal Code do not
provide ad valorem property tax exemptions for multi-family housing in urban center; and
WHEREAS, exemptions from ad valorem property taxes for multi-family housing
encourage increased residential opportunities within designated residential targeted areas,
stimulate new construction and rehabilitation of existing buildings, assist in directing future
population growth and helps to achieve development densities which are more conducive to
transit use in designated residential targeted areas; and
WHEREAS, The proposed residential targeted area for the multi-family property
tax exemption is within an urban center as defined by Chapter 84.14 RCW and as designated in
the City's comprehensive plan; and
WHEREAS, The proposed residential targeted area lacks sufficient available,
desirable, and convenient residential housing to meet the needs of the public who would be likely
to live in the residential targeted area, if desirable, attractive, and livable places to live were
available; and
WHEREAS, the City Council desires to provide limited ten year exemptions from
ad valorem property taxation for multi-family housing in designated residential targeted areas;
and
WHEREAS, on September 19, 2006 and September 26, 2006 the public was
notified by a legal advertisement in the Kitsap Sun of the opportunity to make comment and
participate in the public hearing by the City Council; and
WHEREAS, on October 4, 2006 the City Council conducted a public hearing and
considered all testimony; NOW, THEREFORE,
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Multi-family Property Tax Exemption
THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES
HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Chapter 3.78 of the Bremerton Municipal Code entitled "Multi-
Family Property Tax Exemptions" is hereby created to read as follows:
Chapter 3.78
MULTI-FAMILY PROPERTY
T AX EXEMPTION
3.78.010 PURPOSE.
As provided for in Chapter 84.14 RCW, the purpose of this chapter is to provide limited
ten (10) year exemptions from ad valorem property taxation for multi-family housing in
designated residential targeted areas to:
(a) Encourage increased residential opportunities within areas of the City designated
by the City Council as residential targeted areas; and/or
(b) Stimulate new construction or rehabilitation of existing vacant and underutilized
buildings for multi-family housing in designated residential targeted areas to increase and
improve housing opportunities; and
(c) Assist in directing future population growth to designated residential targeted
areas, thereby reducing development pressure on single-family residential neighborhoods; and
(d) Achieve development densities which are more conducive to transit use in
designated residential targeted areas.
3.78.020 DEFINITIONS.
When used in this chapter, the following terms shall have the following meanings, unless
the context indicates otherwise:
(a) Building Codes means the City and State building and fire codes as set forth in
Chapters 17.04, 18.02 and 18.03 of the Bremerton Municipal Code.
(b) City means the City of Bremerton.
(c) Department means the City Department of Community Development.
(d) Director means the Director of the Department of Community Development, or
designee.
(e) Multij'amily housing means a building having ten (10) or more dwelling units
developed for owner occupancy. Multi-family housing does not include single family attached
housing. Multi-family housing also does not include housing that predominately offers rental
accommodation or accommodation on a transient basis such as apartments, hotels and motels.
(f) Multij'amily property tax exemption means an exemption from ad valorem
property taxation for multi-family housing.
(g) Owner means the property owner of record.
(h) Rehabilitation improvements means modifications to existing structures that are
vacant for twelve (12) months or longer that are made to achieve a condition of substantial
compliance with existing building, fire, and zoning codes, or modification to existing occupied
structures which increase the number of multi-family housing units.
(i) Residential targeted area means the geographic area located within the
Downtown Core and Multiple Residential zones as set forth in Figure 3.78.
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Multi-family Property Tax Exemption
(j) Substantial compliance means compliance with all local building, fire and zoning
code requirements, which are typically required for rehabilitation as opposed to new
construction.
3.78.030 APPLICABILITY. Multi-family housing projects in designated
residential targeted areas resulting from new construction or rehabilitation or conversion of
vacant, underutilized, or substandard buildings may be entitled to a limited ten year
exemption from ad valorem property taxation as set forth in this chapter.
3.78.040
TERMS OF THE TAX EXEMPTION.
(a) Duration of exemption. The value of improvements qualifying under this chapter
is exempt from ad valorem property taxation for ten (10) successive years beginning January 1st
of the year immediately following the calendar year after issuance of the final certificate of tax
exemption.
(b) Limits on exemption. The exemption does not apply to the value ofland or to the
value of improvements not qualifying under this chapter, nor does the exemption apply to
increases in assessed valuation of land and non-qualifying improvements. In the case of
rehabilitation of existing buildings, the exemption does not include the value of improvements
constructed prior to submission of the completed application required under this chapter. This
chapter does not apply to increases in assessed valuation made by the Kitsap County Assessor on
non-qualifying portions of building and value ofland nor to increases made by lawful order of a
county board of equalization, the Department of Revenue, or Kitsap County, to a class of
property throughout the county or specific area of the county to achieve the uniformity of
assessment or appraisal required by law.
(c) Conclusion of Exemption. At the conclusion of the ten (10) year exemption
period, the new or rehabilitated housing cost shall be considered as new construction for the
purposes of Chapter 84.55 RCW.
3.78.050 PROJECT ELIGIBILITY.
A proposed multi-family housing project must meet the following requirements for
consideration for a property tax exemption:
(a) Location. The project must be located within a residential targeted area as defined
in BMC 3.78.020 and as set forth in Figure 3.78.
(b) Tenant displacement prohibited. The project must not displace existing residential
tenants of structures that are proposed for redevelopment. 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.
(c) Non-compliance with Building Codes. Existing dwelling units proposed for
rehabilitation must fail to comply with one or more standards of the Building Codes.
(d) Size of Project. The new, converted, or rehabilitated multiple-unit housing must
provide for a minimum of fifty percent (50%) of the space for permanent residential occupancy.
The project, whether new, converted, or rehabilitated multiple-unit housing, must include at least
ten (10) units of multi-family housing within a residential structure or as part of an urban
development. In the case of existing multi-family housing that is occupied or which has not been
vacant for twelve (12) months or more, the multifamily housing project must also provide for a
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Multi-family Property Tax Exemption
minimum of four (4) additional multifamily units for a total project of at least ten (10) units
including the four (4) additional units. Existing multi-family housing that has been vacant for
twelve (12) months or more does not have to provide additional units.
(e) Proposed completion date. New construction of multi-family housing and
rehabilitation improvements must be completed within three (3) years from the date of approval
of the application.
(t) Compliance with guidelines and standards. The project must be designed to
comply with the City's Comprehensive Plan, building, housing, and zoning codes, and any other
applicable regulations. The project must also comply with any other standards and guidelines
adopted by the City Council for the residential targeted area.
3.78.060 APPLICATION PROCEDURE.
A property owner who wishes to propose a project for a tax exemption shall complete the
following procedures:
(a) The application provided by the City shall be filed with the Department along
with the required fees as established pursuant to RCW 84.14.080.
(b) A complete application shall include:
(1) A completed City of Bremerton application form setting forth the grounds
for the exemption.
(2) Preliminary floor and site plans of the proposed project.
(3) A statement acknowledging the potential tax liability when the project
ceases to be eligible under this chapter.
(4) An affidavit stating the occupancy record of the property for a period of
twelve (12) months prior to filing the application.
(5) Verification by oath or affirmation of the information submitted.
(6) For rehabilitation projects, the applicant shall provide a report prepared by
a registered architect identifying property noncompliance with the Building Codes. This report
shall identify specific code violations and must include supporting data that satisfactorily
explains and proves the presence of a violation. Supporting data must include a narrative and
such graphic materials as needed to support this application. Graphic materials may include, but
are not limited to, building plans, building details, and photographs.
3.78.070 APPLICATION REVIEW AND ISSUANCE OF CONDITIONAL
CERTIFICATE.
The Director may certify as eligible an application which is determined to comply with
the requirements of this chapter. A decision to approve or deny an application shall be made
within ninety (90) calendar days of receipt of a complete application.
(a) Approval. The Director may approve the application if he/she finds that:
(1) A minimum often (10) new units are being constructed or in the case of
occupied rehabilitation or conversion within twelve (12) months of occupancy, a minimum of
four (4) additional multifamily units for a total project of at least ten (10) units including the four
(4) additional multi-family units are being developed.
(2) The proposed project is or will be, at the time of completion, in
conformance with all applicable local plans and regulations.
(3) The owner has complied with all standards and guidelines adopted by the
City under this chapter.
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Multi-family Property Tax Exemption
(4) The site is located in the residential targeted area.
(b) If an application is approved, the applicant shall enter into a contract with the
City, regarding the terms and conditions of implementation of the project, and the Director shall
issue a conditional certificate of acceptance of tax exemption. The conditional certificate shall
expire three (3) years from the date of approval unless an extension is granted as provided in this
chapter.
(c) If an application is denied, the Director shall state in writing the reasons for denial
and shall send notice to the applicant at the applicant's last known address within ten (10)
calendar days of the denial. Per RCW 84.14.070, an applicant may appeal a denial to the City
Council within thirty (30) calendar days of receipt of the denial by filing a complete appeal
application and fee with the Director. The appeal before the City Council will be based on the
record made before the Director. The Director's decision will be upheld unless the applicant can
show that there is no substantial evidence on the record to support the Director's decision. The
City Council's decision on appeal will be final.
3.78.080 EXTENSION OF CONDITIONAL CERTIFICATE.
(a) Extension. The conditional certificate and time for completion of the project may
be extended by the Director for a period not to exceed a total of twenty-four (24) consecutive
months. To obtain an extension, the applicant must submit a written request with a fee stating the
grounds for the extension. An extension may be granted if the Director determines that:
(1) The anticipated failure to complete construction or rehabilitation within
the required time period is due to circumstances beyond the control of the owner;
(2) The owner has been acting and could reasonably be expected to continue
to act in good faith and with due diligence; and
(3) All the conditions of the original contract between the applicant and the
City will be satisfied upon completion of the project.
(b) Denial and appeal. If an extension is denied, the Director shall state in writing the
reason for denial and shall send notice to the applicant's last known address within ten (10)
calendar days of the denial. Pursuant to RCW 84.14.090(6), an applicant may appeal the denial
of an extension to the hearing examiner pursuant to Chapter 2.13 BMC within fourteen (14)
calendar days of receipt of the denial by filing a complete appeal application and fee with the
Director. The appeal before the hearing examiner shall be processed as a Type I Director
Decision pursuant to Chapter 20.02 BMC. No appeal to the City Council is provided from the
hearing examiner's decision. The applicant may appeal the hearing examiner's decision to the
Kitsap County Superior Court, under RCW 34.05.510 through 34.05.598, if the appeal is filed
within thirty (30) calendar days of receiving notice of that decision.
3.78.090 APPLICATION FOR FINAL CERTIFICATE.
Upon completion of the improvements agreed upon in the contract between the applicant
and the City and upon issuance of a certificate of occupancy, the applicant may request a final
certificate of tax exemption by filing with the Director the following:
(a) A statement of expenditures made with respect to each multi-family housing unit
and the total expenditures made with respect to the entire property;
(b) A description of the completed work and a statement of qualification for the
exemption; and
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Multi-family Property Tax Exemption
(c) A statement that the work was completed within the required three (3) year period
or any authorized extension.
3.78.100 ISSUANCE OF FINAL CERTIFICATE.
Within thirty (30) calendar days of receipt of all materials required for a final certificate,
the Director shall determine whether the specific improvements satisfy the requirements of the
contract, application, and this chapter.
(a) Granting offinal certificate. If the Director determines that the project has been
completed in accordance with this chapter and the contract between the applicant and the City,
and has been completed within the authorized time period, the City shall, within ten (10)
calendar days of the expiration of the thirty (30) day review period above, file a final certificate
of tax exemption with the Kitsap County Assessor.
(b) Denial and appeal. The Director shall notify the applicant in writing that a final
certificate will not be filed if the Director determines that:
(1) The improvements were not completed within the authorized time period;
(2) The improvements were not completed in accordance with the contract
between the applicant and the City; or
(3) The owner's property is otherwise not qualified under this chapter.
Pursuant to RCW 84.14.090(6), an applicant may appeal a denial to the hearing examiner
pursuant to Chapter 2.13 BMC within fourteen (14) calendar days of issuance of the denial of a
final certificate by filing a complete appeal application and fee with the Director. The appeal
before the hearing examiner shall be processed as a Type I Director Decision pursuant to Chapter
20.02 BMC. No appeal to the City Council is provided from the hearing examiner's decision.
The applicant may appeal the hearing examiner's decision to the Kitsap County Superior Court,
under RCW 34.05.510 through 34.05.598, if the appeal is filed within thirty (30) calendar days
of receiving notice of that decision.
3.78.110 ANNUAL COMPLIANCE REVIEW.
(a) Within thirty (30) calendar days after the first anniversary of the date of filing the
final certificate of tax exemption and each year thereafter for a period often (10) years, the
property owner shall be required to file a notarized declaration with the Director indicating the
following:
(1) A statement of occupancy and vacancy of the multi-family units during
the previous twelve (12) months;
(2) A certification that the property continues to be in compliance with the
contract with the City and this chapter; and
(3) A description of any subsequent improvements or changes to the property.
(b) City staff shall also conduct on-site verification of the declaration. Failure to
submit the annual declaration shall result in a review of the exemption per RCW 84.14.110.
3.78.120 CANCELLATION OF TAX EXEMPTION.
If the Director determines the owner is not complying with the terms of the contract or
this chapter, the tax exemption shall be canceled. This cancellation may occur in conjunction
with the annual review or at any other time when noncompliance has been determined. If the
owner intends to convert the multi-family housing to another use, the owner shall notify the
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Multi-family Property Tax Exemption
Director and the Kitsap County Assessor in writing within sixty (60) calendar days ofthe change
muse.
(a) Effect of cancellation. If a tax exemption is canceled due to a change in use or
other noncompliance, the following taxes and penalties will apply:
(1) Additional real property tax, plus interest, shall be imposed based upon the
value of the non-qualifying improvements. This additional tax is calculated based upon the
difference between the property tax paid and the property tax that would have been paid if it had
included the value of the non-qualifying improvements dated back to the date that the
improvements were converted to a non-qualifying use.
(2) A penalty shall be imposed amounting to twenty (20) percent of the value
of the additional property tax plus interest.
(3) The interest is calculated at the same statutory rate charged on delinquent
property taxes from the dates on which the additional property tax could have been paid without
penalty if the improvements had been assessed at full value without regard to this tax exemption
program.
(4) The additional taxes, interest and penalties will become a lien on the land
and attach at the time the property or portion ofthe property is removed from multi-family use or
the amenities no longer meet applicable requirements. The lien has priority over and must be
fully paid and satisfied before a recognizance, mortgage, judgment, debt, obligation, or
responsibility to or with which the land may become charged or liable. The lien may be
foreclosed upon expiration of the same period after delinquency and in the same manner
provided by law for foreclosure ofliens for delinquent real property taxes. An additional tax
unpaid on its due date is delinquent. From the date of delinquency until paid, interest must be
charged at the same rate applied by law to delinquent ad valorem property taxes.
(b) Notice and appeal. Pursuant to RCW 84.14.110(2), upon determining that a tax
exemption is to be canceled, the Director shall notify the owner by mail, return receipt requested.
The property owner may appeal the determination to the hearing examiner pursuant to Chapter
2.13 BMC by filing a notice of appeal with the City Clerk within thirty (30) calendar days,
specifying the factual and legal basis for the appeal. The hearing examiner will conduct a hearing
under Chapter 21.02 BMC for a Process I action. An aggrieved party may appeal the hearing
examiner's decision to the Kitsap County superior court under RCW 34.05.510 through
34.05.598.
3.78.130 EXPIRATION OF APPLICATION PERIOD.
The application period to apply for the tax exemption provided for in this chapter expires
December 31, 2011, however, all rights, privileges, duties and responsibilities provided for in
this chapter shall remain in effect after this date for complete and qualifying applications
received by the City on or before December 31, 2011.
SECTION 2. Chapter 3.01 of the Bremerton Municipal Code is hereby amended
to add subsection (15) to Rate Table C establishing a fee for applications for multi-family
property tax exemptions as set forth in Exhibit "A" to this ordinance. (Note - Exhibit A sets forth
Rate Table C as amended without the related exhibits).
SECTION 3. Severabilitv. If anyone or more sections, subsections, or
sentences of this ordinance are held to be unconstitutional or invalid, such decision shall not
7
Multi-family Property Tax Exemption
affect the validity of the remaining portion of this ordinance and the same shall remain in full
force and effect.
SECTION 4. Effective Date. This ordinance shall take effect and be in force ten
(10) days from and after its passage, approval and publication as provided by law.
PASSED by the City Council the ~
day of ('fe.~) , 2006
~~
CECIL McCO' NELL, Council President
Approved this /~ day of
06&
. AN, Mayor
APPROVED AS TO FORM:
)1/U ,t
ROGER A. LUBOVICH, City Attorney
PUBLISHED the I~ day of -$.t~)
EFFECTIVE the d,0:Hu day of
ORDINANCE NO. 49th!
,2006
,2006
R:\Legal\Legal\Ordinances\Community Development\Multi-Family Property Tax Exemption4-8-14-06.doc
8
Multi-family Property Tax Exemption
Residential Target Area
Figure 3.78
COMMUNITY DEVELOPMENT - RATE TABLE C
All Rates Listed are "Not To Exceed" Fees
C. DEPARTMENT OF COMMUNITY DEVELOPMENT
1.
RATE
$1 000 +
$150 per lot
$2500 +
$150 per lot
$315
SUBDIVISIONS
Short
Long Plat
Final Plat
2.
SHORELINE MASTER PROGRAM
Substantial Development Permit
Conditional Use Permit
Shoreline Variance
Permit Revision
Shoreline Exemption
$650
$1750
$1750
$325
$100
3.
STATE ENVIRONMENTAL POLICY ACT
(SEPA)
Checklist
Environmental Impact Statement
Review/Adoption
$320
$650 +
additional
cost of
expertise
4.
APPEAL (to Hearing Examiner)
$175
5.
ABATEMENTS
Dangerous Building
$900 +
Direct
Service and
Supply Cost
$640 +
Direct
Service and
Supply Cost
Garbage & Weed
6. BUILDING PERMIT FEES -Refer to Exhibit 1
7.
PLAN REVIEW FEE
Note: 50% of the Plan Review Fee may be
waived in cases of multiple submittals of
identical residential plans within a calendar
year. This waiver shall not apply in the
event of an applicable code change.
65% of the
building
permit fee as
set forth in
Exhibit 1
EXHIBIT A
3.01-Cl
COMMUNITY DEVELOPMENT - RATE TABLE C
All Rates Listed are "Not To Exceed" Fees
RATE
8. MECHANICAL PERMIT FEES -Refer to Exhibit 2
9. PLUMBING PERMIT FEES -Refer to Exhibit 3
10. GRADING PERMIT AND PLAN REVIEW FEES - Refer to Exhibit 4
11. ZONING ORDINANCE
Ordinance Amendments
Text
Rezone (Map Amendment)
$740
$740
Variance
Administrative
Public Hearing/Single Family
Public Hearing/Other
$325
$500
$1750
Residential Cluster Development
$1500 +
$1 OO/DU
Development Agreements
$1600
Conditional Use Permit
Administrative (No public hearing)
Hearing Examiner/SF Residential
Hearing Examiner/Other
Non-Conforming Use Determination
$350
$500
$1750
$275
$175
Director's Code Interpretation
12. COMPREHENSIVE PLAN
Text or Map Amendment $1500
Combined Text and Map Amendment $2500
13. SITE PLAN REVIEW
Four or fewer Residential Units $250
Other $500
14. SITE DEVELOPMENT PERMIT $500
(Fee waived if concurrent with Site Plan
Review)
15. MISCELLANEOUS FEES
Multi-Family Property Tax Exemption $1500
Application
3.01 - C2
AFFIDAVIT OF PUBLICATION
Account # 42742 / Ad # 151605
STATE OF WASHINGTON
COUNTY OF KITSAP
I, Sarah Weller, being first duly sworn on oath, deposes and says: That she is now, and at all times
embraced in the publication herein mentioned was the principal clerk of the printers and publishers of
KITSAP SUN; that said newspaper has been approved as a legal newspaper by order of the Superior Court
of the County of Kitsap, in which County it is published and is now and has been for more than six months
prior to the date of the publication hereinafter referred to, published in the English language continually as
a daily newspaper in Bremerton, Kitsap County, Washington, a weekly newspaper in Kitsap County,
Washington and is now and during all of said time, was printed in an office maintained in the aforesaid
place of publication of said newspaper; that the following is a true text of a legal advertisement as it was
published in regular issues (and not in supplement form) of said newspaper on the following dates, to wit: ,
October 10,2006 and that such newspaper was regularly distributed to its subscribers during all of said
period. That the full amount of the fee charged for the foregoing publication is the sum of $40.08 which
amount has not been paid in full.
~. Lj,-/}-f~~
(Signature of Principal Clerk)
Subscribed and sworn to yefore me this day of October 24, 2006
-
Notary Public in and for the State of Washington, Kitsap County.
Notary 9ubllc
Washington
DAWN BlATT
My Appointrnem ExpIres,Jut 30. 2010
ORDINANCE NO. 4968
AN ORDINANCE of the City Council of the City of Bremerton, Washington, creating Chapter 3.78 of the
Bremerton Municipal Code relating to exemptions from ad valorem property taxation for new multi-family
housing in designated residential targeted areas of the City, establishing a residential targeted area for the
multi-family property tax exemption within the Downtown Core and Multiple Residential zones and
amending Chapter 3.01 of the Bremerton Municipal Code establishing a fee for applications for multi-
family property tax exemptions.
PASSED by the City Council the 4th day of October, 2006.
The full text of this ordinance is available from the City Clerk's Office, 345 Sixth Street, Suite 600,
Bremerton, W A 98337.
October 10, 2006......................AD #20020085