2183_00001ORDINANCE NO.2183
AN ORDINANCE CREATING CHAPTER 18.23 OF THE MOSES LAKEMUNICIPAL
CODE ENTITLED^MULTI-FAMILYHOUSING TAX EXEMPTION"
THE CITYCOUNCIL OF THE CITY OF MOSES LAKE,WASHINGTON DO ORDAINAS FOLLOWS:
Section 1.Chapter 18.23 ofthe Moses Lake Municipal Code entitled "Multi-FamilyHousing Tax Exemption"is created as follows:
18.23.010 Purpose:It is the purpose of RCW 84.14 to encourage new private multi-family housingdevelopmentandredevelopmentwithincitiesthatareplanningundertheGrowthManagementAct,
where thelegislative body has found thatthere are insufficient housing opportunities.To achievethispurpose,thischapter provides for specialvaluation for eligibleimprovements associatedwiththeprovisionofmulti-unit housing inresidentially deficient urban centers.Itis further intended toprovideattractive,reasonable places to live close to employment,shopping,entertainment,and
transitservices and to promoteneighborhood revitalization and community development.
18.23.020 Definitions:
A."Multi-familyhousing"means building(s)having four (4)or moredwelling unitsdesigned for
permanent residential occupancy resulting from new construction or rehabilitation orconversionofvacant,underutilized,or substandard buildings.
B."Owner"means the property ownerof record.
C."Director"means theCommunity Development Director.
D."Permanent residential occupancy"means multi-unit housing that provides either rental orowneroccupancyonanon-transient basis.This includes owner-occupied or rental
accommodation thatisleased for a period of at least one (1)month.This excludes hotels andmotelsthatpredominantlyofferrentalaccommodationonadailyorweeklybasis.
E."Rehabilitation improvements"means modifications toexisting structures,that are vacant fortwelve(12)months or longer,thatare made to achieve a conditionof substantialcompliancewithexistingbuildingcodesormodificationtoexistingoccupiedstructureswhichincreasethenumberofmulti-family housing units.
F."Residential targeted area"means an area withinan urban center that has been designated
by the City Council as lacking sufficient,available,desirable,and convenient residential
housing to meet the needs of the public.
G."Urban center"means a compact,identifiable district containing several business
establishments,adequate publicfacilities,andamixtureofuses andactivities,where residents
mayobtaina varietyof products and services.
18.23.030 Residential Target Area Designation and Standards:
A.Criteria:Following noticeand a public hearing,as prescribed in RCW 4.14.040,the CityCouncilmay,in its sole discretion,designate one (1)or more residential target areas.Thedesignatedtargetareamustmeetthefollowingcriteria:
1.The target area is located within an urban center.
2.The targetarea lacks sufficient available,desirable,andconvenientresidentialhousing tomeettheneedsofthepublicwhowouldlikelyliveinthemixedusecenterifdesirable,attractive,and livable places wereavailable.
3.The provision of additional housing opportunities inthe target area willassist the city inachievingthefollowingpurposes:
a.Increasing residential opportunitieswithin the target area.
b.Stimulating the constructionof new multi-familyhousing.
c.The rehabilitation of existing vacant and under-utilized buildings for multi-familyhousing.
4.Indesignating thetargetarea,theCityCouncil mayalso consider otherfactors,including:
a.Whether additional housing will attract and maintain an increasing number ofpermanentresidentsandhelpalleviatedetrimentalconditionscausedbyalackofinvestmentinunderutilizedvacantbuildings.
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Page 2
b.Whether an increased permanent residential population inthe targeted area willhelp
the city achievethe planning goals mandated by the Growth Management Act under
RCW 36.70A.020.
c.Whether additional housing may contribute to revitalizationof a distressed
neighborhood or area withinthe City.
B.Target Area Standards and Guidelines:For the designated residential target areas,the City
Council shall adopt basic requirements for both new construction and rehabilitation,including
the application process and procedures.The CityCouncil mayalso adopt guidelines toinclude
the following:O1.Requirements that address demolition of existingstructures and site utilization.
2.Building requirements that may include elements addressing parking,height,density,
environmental impact,public benefit features,compatibilitywith surroundingproperty,and
such other amenities as will attract and keep permanent residents and will properly
enhance the livabilityof theresidential targetarea.
3.The required amenities shall be relative tothe size of the proposed project and the tax
benefit to be obtained.
The City Council may,by ordinance,amend or rescind the designation of a residential target
area at any timepursuant tothesame procedure as set forth in the original designation.
C.Designated Target Area:The CityCouncil has adopted Residential Target Area as indicated
on the attached map.
18.23.040 Project Eligibilitv:Aproposed project must meet the followingrequirements for consideration for
a property tax exemptionunder thischapter:
A.Location:The project must be located within Moses Lake's Residential Targeted Area,as
designated under Section 18.23.030 of thischapter.
B,_S_ize:The project mustinclude at least four (4)unitsofmulti-familyhousing within a residential
structure or as part of a mixed-use development A minimumof four (4)new units must be
constructed or at least four (4)additionalmulti-familyunits mustbe addedtoexisting occupied
multi-familyhousing.Existing multi-familyhousing that has been vacant fortwelve(12)months
or moredoes not have to provideadditional unitsso long as the project provides at least four
(4)units of new,converted,or rehabilitated multi-family housing.
C.ResidentialDisolacement and Demolition:The project must not displace existingresidential
units,unless the unitsare certifiednot to meet currentbuilding and housing codes.The units
can then be rehabilitated or replaced and included in the qualified portion of the project to
receivethe property taxabatement.Ifthe unitsslated for replacementor demolition do meet
currentcode,thenthe size ofthe project needs to be increased bythe number of unitsthatare
being replaced or demolished and thesereplacement units wouldnot qualify for the property
taxabatement.Property proposed to be rehabilitated or developed must be vacant at least
twelve(12)months before submitting an application.
D.Permanent Residential Housing:Atleast fiftypercent (50%)ofthe space designated for multi-
family housing must be provided for permanent residential occupancy.
E.Proposed Completion Date:New construction of multi-family housing and rehabilitation
improvements must be scheduled to be completed within three (3)years from the date of
approval ofthe application.
F.CompliancewithGuidelines andStandards:The project mustbe designed to complywith the
city's comprehensive plan,building,housing,and zoning codes,and any other applicable
regulations in effect at the time the applicationis approved.Rehabilitation and conversion
improvements mustcomplywithall applicable housing codes.New construction must comply
withthe building code.The project must also comply withany other standards andguidelines
adopted by the City Council for the residential target area in which the project will be
developed.
18.23.050 Application Procedure:Aproperty owner whowishes topropose a project fortax exemption shall
complete the following procedures:
A.Application:An applicationneeds to be filedwiththe Community Development Department.
A fee of five hundred thirtydollars ($530)needs to be included to cover theGrant County
Assessor's administrativecosts.Upon approvalof the application,thefee willbe forwarded
tothe Grant CountyAssessor's officefor processing.A completeapplication shall include:
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1.A completed City of Moses Lake applicationform setting forth the grounds for theexemption.
2.Preliminary floor and site plans of the proposed project
3.Astatement acknowledging thepotential tax liabilitywhen the project ceases tobe eligibleunderthischapter.
4.Verificationby oath oraffirmation of theinformation submitted.
O 5.For rehabilitation projects,the applicant shall also submit an affidavit thatexisting dwellingunitshavebeenunoccupiedforaperiodoftwelve(12)months priortofilingtheapplication.
B.Application Review and Issuance of Conditional Certificate:The Community DevelopmentDirectormaycertifyaseligibleanapplicantwhoisdeterminedtocomplywiththerequirementsofthischapter.A decision toapprove or deny an application shall be made withinthirty(30)days of receipt ofa completeapplication.
1.Approval:If an application is approved,the applicantshallenter into a contract with thecity,subject to approval by the City Council,regarding the terms and conditions of theproject.Upon CityCouncil approvalofthecontract,the Community Development DirectorshallissueaConditionalCertificateofAcceptanceofTaxExemption.The ConditionalCertificateexpiresthree(3)years from the date ofapprovalunless an extension is granted
as provided inthischapter.
2.Denial:The Community Development Director shallstate inwritingthe reasons for denial
and shallsend noticetothe applicantat theapplicant's last known address withinten(10)days of the denial.An applicant may appeal a denial totheCity Council withinthirty(30)days of receiptof notice.On appeal,theCommunity Development Director's decision will
be upheld unless the applicant can show that there is no substantial evidence on therecordtosupporttheCommunityDevelopmentDirector's decision.The City Council'sdecisiononappealwillbefinal.
C.Extension ofConditional Certificate:The Community Development Director mayextendtheConditionalCertificateforaperiodnottoexceedtwenty-four(24)consecutive months.Theapplicantmustsubmitawrittenrequeststatingthegroundsforextension.An extension maybegrantedifitisdeterminedthat:
1.The anticipated failuretocompleteconstructionor rehabilitation within the required timeperiodisduetocircumstancesbeyondthecontroloftheowner.
2.The ownerhas been acting,and could reasonably be expected to continue toact,ingoodfaithandwithduediligence.
3.Alltheconditions oftheoriginalcontract between theapplicant and the citywill be satisfied
uponcompletion oftheproject.
D.Application for Final Certificate:Upon completionof the improvements agreed upon in thecontractbetweentheapplicantandthecityanduponissuanceofatemporaryorpermanentcertificateofoccupancy,theapplicant may request a Final Certificate ofTax Exemption.TheapplicantmustfilewiththeCommunityDevelopmentDepartmentthefollowing:
1.Astatement of expenditures made withrespect to allaffectedmulti-familyhousing unitsandthetotalexpendituresmadewithrespecttotheentireproperty.
2.A description of the completed work and a statement ofqualification for the exemption.
3.Astatement thattheworkwas completed withintherequired three(3)year period plus anyauthorizedextension.
Withinthirty(30)days of receipt ofall materials required fora Final Certificate,theCommunityDevelopmentDirectorshalldeterminewhichspecificimprovementssatisfytherequirementsofthischapter.
E.Issuance of Final Certificate:Ifthe Community Development Director determines that theprojecthasbeencompletedinaccordancewiththecontractbetweentheapplicantandthecityandhasbeencompletedwithintheauthorizedtimeperiod,the Community DevelopmentDirectorshall,withinten (10)days,file a Final Certificate of Tax Exemption with the GrantCountyAssessor.
1.Denial and Appeal:The Community Development Director shall notify theapplicant inwritingthataFinalCertificatewillnotbefilediftheCommunityDevelopmentDirectordeterminesthat:
a.The improvements were notcompletedwithin the authorizedtime period.
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b.The improvements were notcompletedin accordance with the contract between the
applicantand the city,
c.The owner's property is otherwise not qualified under thischapter.
Within fourteen (14)days of receipt ofthe Community Development Director's denial of a
Final Certificate,the applicant may file an appeal with the City Council.On appeal,the
Community Development Director's decisionwillbe upheld unlessthe applicant can show
that there is no substantial evidence tosupport the Community Development Director's
decîsion.The CityCouncil's decision on appeal willbe final.
F.Annual Compliance Review:Within thirty(30)days after the first anniversaryof the date of
filingthe Final Certificate ofTax Exemption and each year thereafter,for a period of ten (10)
years,the propertyownershallfile a notarized declaration withthe Community Development
Director indicating the following:
1.A statement of occupancy and vacancy of themulti-familyunits during the prior year.
2.Acertification thatthe property continues tobe incompliance withthecontractwith thecity.
3.A description ofany subsequent improvements or changes tothe property.
Citystaff shall also conduct on-site verification ofthe declaration.Failure tosubmit the annual
declarationmay result in the taxexemption being cancelled.
G.Cancellation ofTax Exemotion:IftheCommunity Development Directordetermines theowner
is not complying withthe termsof the contract,the tax exemption may be cancelled.This
cancellation may occur in conjunction with theannual review or at anyother timewhen non-
compliance has been determined.Ifthe ownerintends to convert the multi-familyhousing to
another use,the owner must notify the Community Development Director and the Grant
County Assessor withinsixty(60)days of the change inuse.
1.Effect ofcancellation:Ifa taxexemption is cancelled due toa change inuse orother non-
compliance,the Grant County Assessor may impose the additional real property taxon the
value of the non-qualifying improvements inthe amount thatwould normally be imposed,
plus a penalty oftwentypercent (20%).This additionaltaxis calculated based upon the
difference between theproperty tax paidand the property tax thatwouldhave been paid
ifithad included the value of thenon-qualifyingimprovements dated back to the date that
theimprovements were convertedtoa non-multi-familyuse.The taxmustinclude interest
upon theamount of theadditional tax as determined by theAssessor,and theadditional
tax owed,togetherwithinterest and penalty,willbecome a lien on the land and attach at
the time the property or portion ofthe property is removed from multi-familyuse or the
amenities no longer meet applicable requirements.
2.Notice ofAppeal:Upon determining that a taxexemptionisto be cancelled,and after the
Community Development Director's review with the City Manager,the Community
Development Director shallnotifythe property owner by certifiedmail.The property owner
may appeal thedetermination byfilinga notice of appeal with theFinance Director within
thirty(30)days,specifyingthefactualand legal basis for the appeal.The CityCouncil will
conduct a hearing at which allaffectedparties may be heard and allcompetent evidence
received.The City Councilmay affirm,modify,or repeal the decision to cancel the
exemption based on the evidence received.An aggrieved party may appeal the City
Council's decision totheGrant County Superior Court.
Section 2.This ordinance shall take effect and be inforce five (5)days after its passage and publication of
its summaryas provided by law.
Adopted bythe City Council and signed by its Mayor o
\ÑonaldR.Cone,ance Director
APP ED AS TO FOR
mes A.W ker,CityAttorney
MULTI-FAMILY HOUSING
O 1000 500 0 1000 2000 TAX EXEMPTION
TARGET AREA
MUNICIPALSERVICES DEPT.-ENGINEERlNGDIVISION
SCALEIN FEET BKP CITY OF MOSES LAKE
1 =10000904 GRAN1COUNTY WMHINGTON
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