Lakewood City Zoning Code

18A.90 Housing

Incentives Program

18A.90.010 Definitions.

See LMC 18A.10.180 for definitions relevant to this chapter. [Ord. 726 § 2 (Exh. B), 2019.]

18A.90.020 Purpose.

The City is responsible for establishing regulations that will result in housing opportunities for all of its residents, no matter what their economic means. To that end, the City’s comprehensive plan contains policies designed to encourage affordable housing. Not only are a number of regulatory tools available to help stimulate the development of desired housing in the City, but some of these tools benefit the City by dispersing low-income units throughout the City so as to avoid perpetuating existing concentrations of poverty. The provisions contained herein would allow a project proponent to receive more return from a project through additional density, relaxed development standards, and discounted review fees in return for helping to meet public goals. [Ord. 726 § 2 (Exh. B), 2019.]

18A.90.030 Applicability.

This chapter applies, at the developer’s option, to land use applications for rental housing in all zones, except the construction of a single-family dwelling on one (1) lot that can accommodate only one (1) dwelling based upon the underlying zoning designation, excluding accessory dwelling units allowed under LMC 18A.40.110(A) and (B)(1) and the underlying zoning. This chapter shall not apply to congregate care and group living facilities. [Ord. 726 § 2 (Exh. B), 2019.]

18A.90.040 General provisions.

All housing developed under these standards shall meet all applicable federal, local, and state guidelines and requirements for limiting occupancy to identified qualified groups. [Ord. 726 § 2 (Exh. B), 2019.]

18A.90.050 Inclusionary density bonuses.

A. Rate and Calculation. In return for the inclusion of qualified units, one (1) additional on-site market-rate unit is permitted as a bonus for each qualified unit provided that is affordable at fifty (50) percent of area median income or less, and one and one-half (1.5) additional on-site market rate units are permitted as a bonus for each qualified unit provided that is affordable at thirty (30) percent of area median income or less, up to twenty-five (25) percent above the maximum density permitted in the underlying zoning district.

B. Duration. Prior to the final approval of any land use application for which density bonuses are being sought, the owner of the affected parcels shall deliver to the City a duly executed covenant running with the land, in a form approved by the City Attorney, requiring that the qualified units created pursuant to this section shall remain as such for a period of at least twenty (20) years from the date of the certificate of occupancy or final building inspection.

C. Siting of Units. The qualified units constructed under these provisions shall be integrated and dispersed within the development for which the density bonus is granted. The physical segregation of qualified units from unqualified market-rate housing units, or the congregation of qualified units into a single physical portion of the development, is prohibited.

D. Size of Units. The size of the qualified units constructed under the provisions of this section shall be proportionate to the size of the units contained in the entire project; e.g., if fifty (50) percent of the units in the project are one (1) bedroom units and fifty (50) percent are two (2) bedroom units, then the qualified units shall be divided equally between one (1) and two (2) bedroom units.

E. Appearance of Units. Qualified units shall possess the same style and architectural character and shall utilize the same building materials as market-rate units.

F. Completion. If a project is to be phased, the proportion of qualified units to be completed with each phase shall be determined as part of the phasing plan approved by the Director.

G. Exclusivity of Bonus. This incentive cannot be used in conjunction with other density bonuses defined in this chapter. [Ord. 813 § 2 (Att. D), 2024; Ord. 726 § 2 (Exh. B), 2019.]

18A.90.051 Density bonuses – Religious organizations.

A. Calculation. In accordance with RCW 35A.63.300 and 36.70A.545, additional housing density is provided for property developed in partnership with religious organizations where all units are reserved for occupancy by qualified households under subsection B of this section. The density bonus amounts to an increase of twenty-five (25) percent above the density of the underlying zoning district.

B. Qualified Households. A household may qualify for housing units under this section if:

1. For rental units, the household has an income of sixty (60) percent of area median income, adjusted for household size; or

2. For ownership units, the household has an income of eighty (80) percent of area median income at the time of sale, adjusted for household size.

C. Qualified Projects. An affordable housing development is allowed to receive the bonus described in subsection A of this section; provided, that:

1. All housing units in the project are qualified units set aside for or occupied exclusively by qualified households as defined in subsection B of this section;

2. The affordable housing development is part of a lease or other binding obligation that requires the development to be used exclusively for affordable housing purposes for at least fifty (50) years from the date of the certificate of occupancy or final building inspection, even if the religious organization no longer owns the property; and

3. The affordable housing development does not discriminate against any person who qualifies as a member of a low-income household based on race, creed, color, national origin, sex, veteran or military status, sexual orientation, or mental or physical disability; or otherwise act in violation of the Federal Fair Housing Amendments Act of 1988 (42 U.S.C. Section 3601 et seq.).

D. Rehabilitated Property. The bonus may be applied to the rehabilitation of an existing property.

E. Resale of Owner-Occupied Units. Subsequent to the initial sale of a unit, a household purchasing a unit in a qualified project must also be considered a qualified household under subsection B of this section.

F. Covenant on Title. Prior to the final approval of any land use application for which the density bonus is being sought under this section, the owner of the affected parcels shall deliver to the City a duly executed covenant recorded on title in a form approved by the City Attorney stipulating the conditions provided under this section.

G. Exclusivity of Bonus. This incentive cannot be used in conjunction with other density bonuses defined in this chapter. [Ord. 813 § 2 (Att. D), 2024.]

18A.90.055 Density bonuses – Residential districts.

A. Calculation. In accordance with RCW 36.70A.635, additional housing density is provided for all lots in Residential (R) districts where units are reserved for occupancy by qualified households under subsection B of this section. This density bonus is defined in LMC 18A.60.030(A).

B. Qualified Households. A household may qualify for housing units under this section if:

1. For rental units, the household has an income of sixty (60) percent of area median income, adjusted for household size; or

2. For ownership units, the household has an income of eighty (80) percent of area median income at the time of sale, adjusted for household size.

C. Qualified Projects. An affordable housing development is allowed to receive the bonus described in subsection A of this section; provided, that:

1. At least twenty-five (25) percent of housing units in the development are qualified units set aside for or occupied exclusively by qualified households as defined in subsection B of this section;

2. The qualified units are part of a lease or other binding obligation that requires them to be used exclusively for affordable housing purposes for at least fifty (50) years from the date of the certificate of occupancy or final building inspection;

3. Qualified units have the same style and architectural character and utilize the same building materials as market-rate units;

4. The proportions of qualified units by size constructed under the provisions of this section shall be consistent with the proportion of units by size that are not qualified; and

5. The lot does not include a critical area or buffer as defined under LMC Title 14.

D. Rounding. For the calculation of required units reserved as qualified units under subsection (C)(1) of this section, all fractions are rounded up.

E. Resale of Owner-Occupied Units. Subsequent to the initial sale of a unit, a household purchasing a qualified unit must also be considered a qualified household under subsection B of this section.

G. Exclusivity of Bonus. This incentive cannot be used in conjunction with other density bonuses defined in this chapter. [Ord. 813 § 2 (Att. D), 2024.]

18A.90.060 Development standard modifications.

The development standards set forth separately in this code may be modified as follows for projects receiving bonus housing units under this chapter:

A. Lot Coverage. Where it does not conflict with surface water management requirements, the maximum percentage of lot coverage may be increased by up to five (5) percent of the total square footage over the maximum lot coverage permitted by the underlying zoning district.

B. Parking Requirements. For qualified projects, the percentage of compact parking stalls may be increased up to fifty (50) percent of the total required parking. In addition, for multifamily developments containing qualified housing dedicated to extremely low-income, as defined in this title, persons, families, or groups, the number of required parking stalls serving such units shall be reduced by fifty (50) percent.

C. In circumstances where housing serving qualified households is located within one quarter (1/4) mile of transit routes and can be shown to generate significantly lower-than-average parking demand, parking requirements may be further reduced at the Director’s discretion. The applicant shall be responsible for preparing any additional studies or evaluation required to provide evidence of demand.

D. Building Height. The maximum building height may be increased by up to twelve (12) feet for those portions of the building(s) at least twenty (20) feet from any property line. [Ord. 813 § 2 (Att. D), 2024; Ord. 726 § 2 (Exh. B), 2019.]

18A.90.070 Fee reduction.

Review fees for land use applications and building permits for properties containing qualifying units shall be reduced by the percentage shown below at the time of application based on the number of qualified units and maximum incomes for qualified households (adjusted for size). Discounts shall be applicable to the entire scope of the application. For properties containing both levels of qualified units, the highest discount shall apply. For projects dedicating in excess of fifty (50) percent of units to qualified housing, a standard seventy-five (75) percent discount shall apply. Any available refunds for applications withdrawn in progress shall also be discounted correspondingly.

Fee Reductions
% of Qualified Units	Discount for Qualified Units Affordable at 50% AMI or Below	Discount for Qualified Units Affordable at 30% AMI or Below
0 – 10 percent	10 percent	15 percent
11 – 20 percent	20 percent	25 percent
21 – 30 percent	30 percent	35 percent
31 – 40 percent	40 percent	45 percent
41 – 50 percent	50 percent	55 percent

[Ord. 813 § 2 (Att. D), 2024; Ord. 726 § 2 (Exh. B), 2019.]

18A.90.080 Review process.

A preapplication conference will be required for any land use application that includes a proposal for density bonus under this program. Density bonus proposals shall be reviewed and approved concurrently with the primary land use application and shall follow the established procedures for review and appeal. [Ord. 726 § 2 (Exh. B), 2019.]

18A.90.090 Monitoring.

The Department of Planning and Public Works (PPW) shall maintain a list of all qualified units created under this program. On a yearly basis, the property owner shall provide the City with a signed affidavit of compliance with the terms under which any qualified units have been dedicated. In conjunction with comprehensive plan review and amendment processes, the level and type of unit production and other factors relating to this program shall be evaluated to gauge how effectively these regulations are functioning and to direct necessary adjustments in the program. [Ord. 814 § 2, 2024; Ord. 726 § 2 (Exh. B), 2019.]