2023/04/19 Council Agenda Packet

6. Extend the multiple family property tax exemption program to areas outside the CBD where additional housing growth is encouraged by the Land Use Element. Ensure that developments that benefit from the property tax exemption are well -designed and constructed of quality materials. (Potential Measure to Implement Housing Policies #16) C. The City Council adopted the Rethink Housing Action Plan on October 7, 2021, specifying short- term implementation strategies as follows: 1. S-5. Coordinate a Development Incentives Study to provide guidance on changes and initial incentives for affordable housing construction and preservation. 2. 2.3: Provide a detailed economic study of potential incentives in urban corridors. 3. 4.2: Create financial assistance programs for affordable housing preservation. 4. 4.4: Expand fee waivers for affordable housing. 5. 4.6: Review and update the Multifamily Tax Exemption (MFTE) program. 6. 4.7: Review and update development height incentives program for affordable housing units. D. The city received a Housing Action Plan Implementation Grant from the Washington State Department of Commerce to complete this action; and E. The city commissioned an economic analysis that suggests fee waivers or exemptions, along with other incentives, is an effective incentive for affordable housing construction; and F. Exemptions from ad valorem property taxes for multifamily 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 help to achieve development densities which are more conducive to transit use in designated residential targeted areas. G. Everett Municipal Code Chapter 3.78 establishes exemptions from ad valorem property taxation for new multifamily housing in designated residential target areas of the City. H. The City Council and State Legislature have amended and updated the requirements relating to multifamily tax exemptions. I. On May 3, 2021, the State Legislature passed E2SSB 5287 amending Chapter 84.14 RCW relating to multifamily tax exemptions. J. The proposed revisions amend the language relating to tenant displacement, adds a twenty (20) year exemption, adds a process for exemption extension, and other administrative changes. K. This ordinance is categorically exempt from the State Environmental Policy Act under WAC 197- 11-800(14) and (19); and ORDINANCE Page 2 of 17