Snohomish City Zoning Code
CHAPTER 14
285 Incentives for Housing Affordability
14.285.010 Purpose.
The purpose of this chapter is to encourage the development of affordable housing within the City of Snohomish to meet the housing needs of all economic segments of the community and to meet the goals and objectives of the Growth Management Act (GMA) while maintaining high standards of design and quality housing, consistent with Washington State housing goals, including but not limited to those in Chapter 36.70A RCW, RCW 82.14.530, and WAC 365-196-410. This chapter provides several incentives which may be used for eligible developments meeting the criteria contained herein, in exchange for the public benefit of providing affordable housing units. (Ord. 2480, 2024)
14.285.020 Applicability.
“Affordable housing” refers to residential developments or individual dwelling units meeting fair market rent standards for households earning 60 percent or less than the Snohomish County annual median household income as adjusted for family size (60 percent AMI).
Unless specifically stated otherwise, the affordable housing incentives contained in this chapter may be utilized for multifamily housing developments and permanent supportive housing projects containing a minimum of four units that include a minimum threshold of 10 percent of units allocated as affordable for households earning 60 percent AMI and meeting other criteria as specified under each regulatory or financial incentive as listed in SMC 14.285.040 and 14.285.050. The financial incentives shall be applied to and for the benefit of the units allocated as affordable housing only. (Ord. 2480, 2024)
14.285.030 General Provisions.
A. Affordable Housing Incentives Program Agreement. A proposed project that incorporates any of the incentives in this chapter shall not be issued permits or receive plat or land use approvals until the applicant has submitted a signed Affordable Housing Incentives Program Agreement to the City of Snohomish, in a form acceptable to the City Attorney. This agreement shall be a covenant running with the land and shall be binding on the assigns, heirs and successors of the applicant.
The agreement shall include, but not be limited to:
1. Identification of all the incentives, regulatory and financial, that the project proposes to incorporate;
2. Identification of the number of affordable housing units provided in the project;
3. Price restrictions and long-term affordability requirements;
4. Method of determining homebuyer or tenant qualifications, including age requirements, if the project is for senior housing pursuant to SMC 14.285.040(B);
5. Binding language that protects the City’s interests in the event that a developer obtains affordable housing incentives through the land use or building approval phase but fails to provide affordable housing;
6. Language that requires documentation of recording the required affordability provisions prior to the approval of a final plat or multifamily building permit;
7. Language that recognizes the potential need to modify the agreement if the submitted project requires alteration through the review and approval process; and
8. Annual reporting requirements, including the total numbers of affordable units under this chapter, and documentation of household eligibility. Reports shall be submitted to the Planning and Development Services Department.
B. Duration of Affordability. Unless expressly stated otherwise, affordable housing units created as a result of the provisions of this chapter shall remain affordable for 50 years. A recorded declaration, secured by a deed of trust, and approved by the City Attorney, running with the land and binding all the assigns, heirs, and successors of the applicant, shall secure the affordability requirements. The recorded declaration must provide that if the property is converted to a use other than housing, the property owner must pay the applicable fees pursuant to SMC 14.285.050 in effect at the time the declaration is recorded.
C. Affordability Shall Be Maintained. The affordable housing units shall be rented, sold, or resold to income-qualified households as defined in this chapter or to a nonprofit organization through the end of the required affordability duration.
D. Construction of Affordable Housing Units. For mixed-income developments constructed in phases exceeding 12 months, the same ratio of affordable units must be completed at or prior to the completion of related market rate units as the ratio of the project as a whole.
E. Location/Appearance of Affordable Housing Units. Affordable units constructed under the provisions of this chapter shall be held to the same building and design standards applicable to the underlying zone in which they are located and shall have the same general appearance as any market rate units in the same development and if held as rental units, shall be maintained and upgraded in the same manner as market rate rental units.
F. Consistency of Units. Affordable units constructed under the provisions of this chapter shall be the same general floor area size and layout as any market rate units in the same development.
G. Resale of Affordable Housing Units. Affordable housing units provided under this chapter may be sold or resold only to eligible households as described by this chapter or to a nonprofit organization that will continue to sell or rent only to eligible households through the end of the required affordability duration. For affordable housing units to be sold or resold at market rate prior to the end of the required affordability duration, the benefit provided through this chapter shall be accounted for through a recorded declaration approved by the City Attorney, running with the land, binding all the assigns, heirs and successors, and shall be accounted for as follows:
1. Payment in lieu shall be made to the City of Snohomish as compensation for the value of all incentives originally granted.
a. For solely financial incentives, repayment of reduced fees, plus six percent interest compounded annually, shall be repaid to the City upon final sale at the rates in effect at the time the declaration was recorded and evidenced in the accompanying deed of trust.
b. If incentives were solely regulatory, as described in SMC 14.285.040, 20 percent of the net proceeds of the sale, or the difference in the Snohomish County assessed value between the first 12 months after issuance of certificate of occupancy and the date of the conversion, whichever is greater, shall be paid to the City by the seller to be deposited into the City’s Housing Fund.
c. If incentives were both financial and regulatory, the payment to the City shall be the sum total of the amounts specified in subsections (G)(1)(a) and (b) of this section.
2. All payments in lieu shall be used by the City toward future incentives offered through this chapter, and/or shall be contributed to the City’s Housing Fund.
H. Participation Measure. The City of Snohomish Planning and Development Services Department shall review the effectiveness of this chapter as part of the periodic Comprehensive Plan update and may recommend modifications to the incentives, eligibility thresholds, fee reduction distribution and applicability to increase participation and achieve affordable housing goals. (Ord. 2480, 2024)
14.285.040 Regulatory Incentives.
Regulatory incentives include density incentives, parking incentives, building height incentives, and permit prioritization. Each incentive is limited in scope and/or geographic area, as specified below.
A. Density Incentive. A multi-unit project meeting the applicability standards and general provisions of this chapter, or affordable housing located on real property owned or controlled by a place of worship as defined in SMC 14.25.170, may be eligible for a 20 percent density incentive. Fractional units shall be rounded up to the next whole unit. All other dimensional standards in Chapter 14.210 SMC and/or applicable to the proposed development type shall be met.
B. Density Incentive for Senior Housing. A multi-unit housing development meeting the applicability standards and general provisions of this chapter for residents age 55 and older may be eligible for the density incentives contained in Table 1. Fractional units shall be rounded up to the next whole unit. All other dimensional standards in Chapter 14.210 SMC and/or applicable to the proposed development type shall be met.
Table 1.
Zoning District | Maximum Density With Incentive |
|---|---|
Low Density Residential (LDR) | 18 units/acre |
Medium Density Residential (MDR) | 27 units/acre |
High Density Residential (HDR) | 36 units/acre |
Commercial | 27 units/acre |
Business Park | 30 units/acre |
C. Midtown District Building Height Incentive. A multi-unit project meeting the applicability standards and general provisions of this chapter and located in the Midtown District North Overlay may be eligible for a building height increase of 10 feet above the base allowance in SMC 14.210.240, Table 1. All other dimensional standards in Chapter 14.214 SMC shall be met.
D. Open Space Reduction. A multi-unit project meeting the applicability standards and general provisions of this chapter and located within 500 feet of a designated community or neighborhood park according to the adopted Parks, Recreation, and Open Space Long-Range Plan may be eligible for a 50 percent reduction in required open space for the underlying zone as described in the dimensional standards of Chapter 14.210 SMC. Applications that propose a reduction in required open space shall not be eligible for any reduction in park impact fees.
E. Expedited Permit Review. An applicant may request an expedited review process for projects meeting the applicability standards and general provisions of this chapter. An expedited project shall be contingent upon City staffing and other resource availability, and only if such prioritization does not result in the unreasonable delay of other permit applications. Planning and Development Services will endeavor to complete review as expeditiously as time and resources allow.
F. Parking Reduction. A multifamily development providing affordable housing units may be eligible for reduced parking requirements pursuant to SMC 14.235.055. (Ord. 2480, 2024; Ord. 2492, 2024)
14.285.050 Financial Incentives.
Financial incentives are intended to reduce the financial burden of carrying a loan through the review process and alleviate up-front financial costs to developers and builders associated with review and impact fees to reduce costs in exchange for providing affordable housing units.
A. Fee Reductions.
1. A multi-unit project meeting the applicability standards and general provisions of this chapter may request a reduction of the following permitting fees as set forth in Table 2.
Table 2.
Fee/Deposit | Maximum Reduction Allowed |
|---|---|
Land use permit fee | 20% |
SEPA review fee | 20% |
Site civil construction permit fee | 20% |
Building permit fee | 20% |
All other fees not addressed in this chapter, including consultant deposits for third-party review or Hearing Examiner costs, may not be waived or reduced.
2. Impact and mitigation fees may be reduced for the eligible affordable housing units as defined herein. Fees for market rate units shall not be reduced. Reductions stated in Table 3 are the maximum allowable. Actual reduction amounts will be dependent on the level of service (LOS) and park and/or transportation system conditions in the area of the development, as determined by the Public Works Director.
Table 3.
Impact/Mitigation Fee | Maximum Reduction Allowed Percentage of Affordable Units | |
|---|---|---|
25% or Less | More than 25% | |
Traffic impact fee | 25% | 50% |
Park impact fee1 | 25% | 50% |
School impact fee | 0% | 0% |
1Applications that receive a reduction in park impact fees shall not be eligible for a reduction in required open space.
B. Utility Connection Fees. Upon approval by the Planning Director, the collection of water and sewer connection fees under the provision of SMC Title 15 to serve housing units for eligible developments meeting the applicability and general provisions of this chapter and as set forth in subsection (B)(8) of this section may be reduced, based on the percentage of affordable units served by each utility meter.
1. Affordable units shall be intermixed throughout the development.
2. To qualify for a utility connection fee reduction, affordable units must serve one of the priority populations of RCW 82.14.530, now and as hereafter amended.
3. All reduction requests shall be made in writing to the Planning and Development Services Department prior to issuance of a land use approval for said project, or at least 30 days prior to levy of the connection fees, whichever occurs first.
4. Such requests may be granted only at such times as the City has established and funded a utility connection fee reduction fund through the sales and use tax of SMC 3.55.010 and not from funds received from payment of water and/or sewer utility rates (apart from taxes assessed thereon).
5. On an annual basis, and at such other times as the City Council deems appropriate, upon consideration for the number of potential requests for utility connection fee reduction requests under the provisions of this section, the City Council may determine by resolution or ordinance the appropriate amount available for utility connection fee reductions. Upon this determination, utility connection fee reductions or waivers shall be available on a “first-come, first-served” basis.
6. Upon the Planning Director’s approval of a utility connection fee reduction request, the connection fee amount that was reduced shall be paid from the appropriate fund designated for utility connection fee reductions. Any remaining fee that was not reduced shall be paid by the project applicant prior to issuance of a building permit pursuant to SMC Title 15.
7. Reductions can only be granted to the extent funds are available in the stated account.
8. The utility connection fee reduction percentage shall not exceed the percentage of affordable housing units served by the utility meter being connected, not to exceed the maximum reduction amounts set forth in Table 4. Fees for utility meters serving market rate units shall not be reduced.
Table 4.
Fee | Maximum Utility Fee Reduction Allowed for Housing Units Served by Utility Meter |
|---|---|
Water Utility Connection Fee | 80% |
Water Capital Facility Fee | 80% |
Water Installation Fee | 35% |
Water Connection Administrative Fee | 100% |
Water Recovery Contract(s) | 0%; Not eligible for reduction |
Sewer Utility Connection Fee | 80% |
Sewer Capital Facility Fee | 80% |
Sewer Inspection Fee | 50% |
Sewer Connection Administrative Fee | 100% |
Sewer Trunkline Special Development Fee | 0%; Not eligible for reduction |
C. Property Tax Exemption. A multifamily development providing affordable housing units may be eligible for a property tax exemption pursuant to Chapter 3.50 SMC. (Ord. 2480, 2024)
14.285.060 Procedure for Review and Approval.
A. Pre-Application Required. A pre-application shall be required for any development application that proposes to incorporate any regulatory or financial incentive provided by this chapter. Such pre-application shall describe the proposed development in as much detail as is feasible, including the specific incentive(s) that will be requested by the applicant.
B. Agreement. An application for a proposed project that incorporates any incentive of this chapter shall not be approved until the applicant has submitted a signed Affordable Housing Incentives Agreement stipulated in SMC 14.285.030(A) as a component of the application package.
C. Development Review. Development proposals incorporating any incentive of this chapter shall be required to meet all other elements of land development and applicable codes and regulations thereof, including required land use approvals and permits.
D. Required Documentation. Prior to the final approval of any land use application or building permit that incorporates any incentives provided for within this chapter, the owner of the property shall provide a recorded declaration secured by a deed of trust on the property title running with the land, binding all the assigns, heirs and successors of the applicant and securing the affordability requirements as stated under this chapter. The recorded declaration must provide language for conversion pursuant to the duration requirements per SMC 14.285.030. (Ord. 2480, 2024)
14.285.070 Monitoring.
A. Monitoring Continued Affordability. The City of Snohomish Planning and Development Services Department shall be the responsible party to monitor the continued affordability of both rental and owner-occupied housing units.
B. Reporting. At least every two years, a report shall be forwarded to the Snohomish City Council prior to the budgeting process that provides details on all the projects that utilized the provisions of this chapter. The report shall include, but is not limited to, the total number of housing units/lots constructed and the number of affordable units. (Ord. 2480, 2024)