2023/04/19 Council Agenda Packet

5. Recommendation 4.6: Review and update the Multifamily Tax Exemption (MFTE) program 6. Recommendation 4.7: Review and update development height incentives program for affordable housing units; and D. The city commissioned a housing development incentives study and report, which includes an economic analysis that finds fee waivers and exemptions to be effective incentives for affordable housing construction; and E. RCW 35.92.380 authorizes waiver or delay of collection of tap -in charges, connection or hookup fees, also known as system development charges, for low-income persons; and F. The city imposes a special connection charge, which is a system development charge, codified at 14.08.135; and G. Extremely low-income and low-income housing projects that receive public funding are typically subject to income, rent and price restrictions enforced through recorded covenants, ensuring affordability but also limiting funds available for development costs; and H. Exemption of special connection charge will enable low- income housing projects to become more economically viable and produce more low-income housing units; and I. This ordinance is categorically exempt from the State Environmental Policy Act under WAC 197- 11-800(14) and (19), and J. On , 2023, the Everett City Council held a public hearing, after proper notice, and considered public comment and the entire record related to this ordinance. NOW, THEREFORE, THE CITY OF EVERETT DOES ORDAIN: Section 1. Ordinance 3632-18, codified as EMC 14.08.135, is amended to add the following section: L. The planning director, after consultation with the director of public works, may grant a reduction of applicable special connection charges of not more than eighty percent of the special connection charges. Upon application, the planning director shall base approval of a reduction on meeting the following requirements: 1. Special reductions shall only be available to affordable multi -family units serving households earning at or below sixty percent of area median income for Snohomish County as established by the United States Department of Housing and Urban Development. 2. The fee exemption shall only be granted when the applicant demonstrates the following criteria have been met: i. The project will benefit the public; ii. The applicant has sought other funding sources; iii. There is a financial hardship to the project of paying the system development charge; and 12 ORDINANCE Page 2 of 4