Monroe City Zoning Code

22.52 Affordable

Housing

22.52.010 Purpose.

The purpose of this chapter is to implement the Growth Management Act (Chapter 36.70A RCW) and the housing and land use goals and policies of the Monroe comprehensive plan for all economic segments of the community. This chapter provides incentives to encourage developers to create housing throughout the city that will be affordable to lower income families. (Ord. 005/2019 § 10 (Exh. B))

22.52.020 Applicability.

Affordable housing incentives are available to new and rehabilitated mixed use, multifamily, and single-family residential developments meeting the definitions of affordable or low-income housing in Chapter 22.12 MMC, Definitions, and the requirements of this chapter. (Ord. 005/2019 § 10 (Exh. B))

22.52.030 General provisions.

For the purposes of review and approval of affordable housing units in residential developments, affordable housing shall meet all of the following applicable requirements, in addition to any other requirements imposed by Chapter 84.14 RCW and this chapter:

A. Income Restrictions. Income limits referenced by this chapter shall be determined by using the median family income for the Seattle-Bellevue, WA HUD Metro FMR Area, as most recently published by the United States Department of Housing and Urban Development under Section 8(f)(3) of the United States Housing Act of 1937, as amended. The following income categories and limits are established by Table 22.52.030(A), Affordable Housing Income Limits, as pursuant to HUD guidelines and Chapter 84.14 RCW:

Category	Income Limit
Very Low Income	50% of median income and below
Low Income	50% to 80% of median income
Moderate Income	80% to 95% of median income

B. Requirements for Affordable Units. All developments that include affordable housing, as defined by Chapter 22.12 MMC, shall comply with the following:

1. The maximum housing costs for rented units including basic utilities shall not exceed thirty percent of the income limit for the affordable housing unit;

2. The maximum sales price for any affordable housing unit shall not exceed eighty percent of the average median sales price for a comparable home, in a market rate housing development, within southeast Snohomish County, as documented in the most current Northwest Multiple Listing Services Report;

3. Affordable housing units shall be owned and/or managed by a public or private nonprofit 501(c)(3) organization, county, state, or federal agency with an established history of developing and managing quality affordable housing;

4. Affordable housing units shall comply with applicable design standards for the underlying zoning district; and

5. All affordable units developed under this chapter shall remain affordable for a period of not less than fifty years, or the minimum period required under applicable state law.

C. Affordable Units in Market Rate Developments. All market rate developments that include affordable housing, as defined by Chapter 22.12 MMC, shall comply with the following:

1. Affordable units within market rate developments shall be constructed concurrently with market rate units;

2. The affordable housing units shall generally be intermingled with the market rate dwelling units in the development;

3. The interiors and exteriors of the affordable housing units shall be consistent with and comparable in quality to the market rate dwelling units in the development;

4. The affordable housing units shall consist of a mix of the unit types (by number of bedrooms) and shall be provided in a range of sizes that are generally proportionate to the mix of market rate units in the overall development;

5. The tenure (owner- or renter-occupied) of the affordable housing units shall be the same as the tenure of the market rate dwelling units in the development;

6. The affordable housing units shall be available for occupancy in a time frame comparable to the availability of the market rate dwelling units in the development; and

7. Developers shall build affordable units on the same site as the market rate dwelling units.

D. Developments Exclusively Providing Affordable Housing. In the case of developments constructed solely to provide affordable housing, whether owner-occupied or rental, the development shall provide housing units consistent with similar market rate units in the city. (Ord. 005/2019 § 10 (Exh. B))

22.52.040 Incentives.

The city shall provide a density bonus and additional incentive(s), for qualified housing developments, upon the written request of a developer, and as consistent with this chapter. The development incentives shall contribute significantly to the economic feasibility of providing the affordable units.

A. Density Bonus. The maximum residential density for developments that include affordable housing units shall be determined at the following levels:

1. To calculate the maximum base density, the number of possible dwelling units or lots allowed without the density bonus, refer to the maximum density calculation in MMC 22.16.040(B) for single-family developments and MMC 22.18.040(G) for multifamily developments.

a. Multiply the base density by the density bonus to determine the residential density. This calculation identifies the maximum residential density possible when the affordable housing density bonus is included. In some cases, this density may not be achievable due to unique site considerations, including critical areas, topography, right-of-way dedication, storm water requirements, etc.

b. When calculating the maximum residential density, any resulting fraction 0.50 or over shall be rounded up to the next whole number and any fraction 0.49 or under shall be rounded down to the preceding whole number.

c. The ratio of affordable units to additional market rate units are established according to Table 22.52.040(A): Affordable Housing Density Bonus for Market Rate Developments.

Target Household	Market Rate Density Bonus	Affordable Housing Density Bonus
Households at or below very low income	2 additional market rate units/lots per each affordable unit/lot	Up to a 50% density bonus
Households at or below low income	1.5 additional market rate units/lots per each affordable unit/lot	Up to a 40% density bonus
Households at or below moderate income	1 additional market rate unit/lot per each affordable unit/lot	Up to a 20% density bonus

2. In the case of developments constructed solely to provide affordable housing, whether owner-occupied or rental, the developer shall receive additional affordable housing units or lots above the maximum density otherwise permitted in an amount equal to the density bonus provided for market rate developments.

B. Tax Exemptions. The value of new housing construction, conversion, and rehabilitation improvements for affordable housing multifamily projects may be exempt from ad valorem property taxation for the maximum time specified in RCW 84.14.020 to the extent the project complies with Chapter 84.14 RCW as now or hereafter amended, subject to the following:

1. The project must comply with all applicable design and site planning standards of this title.

2. Demolition must comply with the building code and all applicable development standards.

3. The community development department shall issue a certificate of affordability following the recording of covenants, as required in MMC 22.52.050 and a finding by the zoning administrator or designee that the project meets the criterion of RCW 84.14.060, as now or hereafter amended.

4. An applicant for a certificate of affordability may appeal a denial to the Monroe city council if the appeal is in writing and filed with the zoning administrator within thirty days of the date of denial. The appeal before the city council shall be based upon the record made before the zoning administrator with the burden of proof on the applicant to show that there was no substantial evidence to support the denial. The decision of the city council shall be final.

5. Applications for certificates of affordability and appeals thereto shall not be subject to this title, but rather shall be governed by the procedures imposed by Chapter 84.14 RCW.

C. Modifications. Additional incentives include modifications to development standards in developments that provide affordable units, as outlined in this subsection. The zoning administrator may approve the following modifications to the development standards:

1. The maximum lot coverage may be increased up to an additional ten percent above the maximum standard applicable to the zoning district in which the development is located.

2. On-site parking may be reduced to:

a. Two parking stalls per affordable unit in multifamily developments.

b. Three-quarters of a parking space per affordable unit in affordable senior developments.

c. A greater administrative modification of the minimum required number of parking spaces may be approved if the applicant provides a parking study, prepared by a qualified professional, substantiating that parking demand can be met with a reduced parking requirement.

3. Modifications to parking design standards may be approved when they can demonstrate that on-site parking needs will be met.

4. In neighborhoods in the downtown commercial zoning district that allow for residential uses when a housing development will exclusively provide affordable units, attached affordable housing units may be constructed up to a fourplex, on a single lot, in conformance with Table 22.52.040(A): Affordable Housing Density Bonus for Market Rate Developments. The development shall provide housing units consistent with market rate units available to other residents.

5. Proposed modifications to development standards shall meet the following criteria to be approved by the zoning administrator:

a. The proposed modifications are necessary to provide sufficient economic incentive to offset the cost of providing the affordable housing units;

b. The proposed modifications are necessary to achieve the permitted density, including the bonus units and affordable units; and

c. The proposed modifications are consistent with public health, safety, and welfare, and specifically does not create any safety hazard. (Ord. 005/2019 § 10 (Exh. B))

22.52.050 Agreements and covenant.

Prior to the issuance of any certificate of occupancy, the proponent shall record with the Snohomish County auditor’s office, in a form approved by the city, an agreement specifying the affordable nature of the units. The agreement shall constitute a covenant running with the land, binding on the assigns, heirs, and successors of the proponents and owners of the property.

A. Contents of the Agreement. The agreement shall specify the terms and conditions of the affordable units to assure that the units remain affordable as required under this section and the agreement shall include at a minimum the following:

1. The total number of units approved for the housing development, including the number of target units;

2. A description of the household income group to be accommodated by the housing development and the standards for determining the corresponding affordable rent or affordable sales price and housing cost;

3. The location, unit sizes in square feet, and number of bedrooms of target units;

4. Tenure of use restrictions for affordable units;

5. A schedule for completion and occupancy of affordable units;

6. A description of any additional incentive(s);

7. A description of remedies for breach of the agreement by either party. The city may identify tenants or qualified purchasers as third party beneficiaries under the agreement; and

8. Other provisions to ensure implementation and compliance with this chapter.

B. Ownership Housing Developments. In the case of for-sale housing developments, the agreement shall provide conditions governing the initial sale and use of affordable units during the applicable restriction period:

1. Affordable units shall, upon initial sale, be sold to eligible lower income households at an affordable sales price and housing cost;

2. Affordable units shall be owner-occupied by eligible lower-income households, or by qualified residents in the case of senior citizen housing; and

3. The initial purchaser of each affordable unit shall execute an instrument or agreement approved by the city restricting the sale of the target unit in accordance with this chapter during the applicable use restriction period.

C. Rental Housing Developments. In the case of rental housing developments, the agreement shall provide conditions governing the use of affordable rental units during the use restriction period:

1. The rules and procedures for qualifying tenants, establishing affordable rent, filling vacancies, and maintaining target units for qualified tenants;

2. Provisions requiring owners to verify tenant incomes and maintain books and records to demonstrate compliance with this chapter; and

3. Provisions requiring owners to submit an annual report to the city, which includes the name, address, and income of each person occupying target units, and which identifies the bedroom size and monthly rent or cost of each target unit.