HomeMy WebLinkAbout03/16/2022 5B
AGENDA BILL
5B
CITY OF BREMERTON
CITY COUNCIL Public Comment Only
SUBJECT:Public Hearing onOrdinanceNo. Study SessionDate: March 9,2022
5447amendingChapter 3.78of the
COUNCIL MEETING Date: March 16, 2022
Bremerton Municipal Code (BMC) entitled
Department: DCD
Multifamily Property Tax Exemption
Presenter: Garrett Jackson
Phone: (360) 473-5289
SUMMARY:In order to prioritize the creation of affordable housing, Mayor Wheeler has directed staff
to propose code revisionstothe Multifamily Property Tax Exemption (MFTE) program authorized
. In October 2006 the Bremerton City Council
encourage housing growth. What is an MFTE? It allows certain development improvements to be
exempt from ad valorem property taxes for a period of time (8 to 12 years depending on the type of
housing units), and its often an important tool to make projects moveforward from an investment
standpoint.
Why would the City adopt a program like this? It was originally established to encourage increased
residential opportunities within designated target areas and it was intended to stimulate new
construction and rehabilitation of existing buildings. At the time that this program was adopted the
to encourage housing growth. Now, nearly 16 years since the initial adoption of the MFTE program,
the city is experiencing record breaking permit activity, and our housing prices are climbing.
Given these indicators of increased growth and revitalization, it is important to take a look at the
s implementation of this program is used to incentivize growth in
areas where we are lacking. In order to shift the purpose of the program to a focus on affordable
housing, the following revisions are proposed:
ng development option
Requiring the affordable units be affordable to low-income households
Ensuring that there are affordable units across all unit sizes in a project
Add provisions for tenant relocation assistance
Add new options for longer20 yeartaxexemption pursuant to State law
Allow projects that are currently close to submittal adequate time to make complete
applications the proposed changes would begin on July 1, 2022.
ATTACHMENTS:
OrdinanceNo. 5447that revises the MFTE program to focus on affordable housing.
FISCAL IMPACTS(Include Budgeted Amount):The current MFTE program is in place and the city
is not receiving property taxeson land improvementsfor projects utilizing the program. This would
continue for projects that qualify under the program only if they include an affordable housing units.
STUDY SESSION AGENDA: LimitedPresentation Full Presentation
STUDY SESSION ACTION:Consent AgendaGeneral BusinessPublic Hearing
March 16 Public Comment Onlywith No Action
FUTURE POSSIBLE MOTION:Move to pass Ordinance No. 5447amending Chapter 3.78 BMC by
adopting revisions to the Multifamily Property Tax Exemption terms and definitions, as described in
the ordinance.
COUNCIL ACTION:Approve Deny Table Continue No Action
Form Updated 01/02/2018