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Home My WebLink About3052 Deferral of Building Development Permit Fees and Utility Connection ChargesAttachment 1 Utility Connection Charges Ordinance No. 3052 AN INTERIM ORDINANCE OF THE CITY OF PORT TOWNSEND PROVIDING FOR DEFERRAL OF BUILDING AND DEVELOPMENT PERMIT FEES AND UTILITY CONNECTION CHARGES FOR LOW INCOME HOUSING PROJECTS, AND RE- CODIFYING DEFERRALS FOR SYSTEM DEVELOPMENT CHARGES PENDING FURTHER REVIEW. WHEREAS, Section 13.03.110 of the PTMC provides for a program for deferral of payment of water and sewer system development charges (SDCs) for qualifying low income applicants; and WHEREAS, the City Council determines it appropriate to add a program for deferrals of building and development permit fees and utility connection charges for qualifying low income projects as provided in this Ordinance pending further review. NOW, THEREFORE, the City Council of the City of Port Townsend ordains as follows: SECTION 1. Amendment and New Section. Section 13.03.110 System Development Charges Deferrals of Low Income Housing of the Port Townsend !Municipal Code is hereby amended, and a new Section 3.36.011 System Development 'Charge, Building Fees, and Utility Connection Charges -Deferrals for Low-income ',Housing is hereby adopted, to read as follows (strike is deleted and underline is added): See Exhibit A attached hereto and incorporated by reference. SECTION 2. Severability. If any provision of this ordinance or its application to any person or circumstance is held invalid, the remainder of the ordinance, or the application of the provision to other persons or circumstances is not affected. This ordinance shall take effect and be in force five days after the date of its publication in the manner provided by law. Adopted by the City Council of the City of Port Townsend, Washington, at a regular meeting thereof, held this 24'h day of January 2011. Michelle Sandoval, Mayor Attu Approved as to Form: --~ , Pamela Kolacy, MMC, City Clerk ~ John P. Watts, City Attorney Attachment 2 Exhibit A -Ordinance 3052 Page 1 of 5 EXHIBIT "A" SECTION 1. There is hereby added a new section 3.36.011 to the Port Townsend Municipal Code to read as follows '3.36.011 0-System development charge building fees, and utility connection charges - deferrals for low-income housing. A. Program Established. In accordance with policy direction from the Port Townsend comprehensive plan, the city may allow deferral of payment of system development charges (SDCs)1 building fees, and utility connection charges_for a private or public nonprofit organization which is developing or constructing low- . income single-family housing units for low-income individuals or families, as defined in this section. B. Definitions. The following definitions shall apply to the administration of this section: 1. "Low-income" means the dwelling shall be owned and occupied by a person or persons who 'meet at the time of building permit application the eligibility requirements for the private or public '.nonprofit organization which is developing or constructing low-income housing. To establish 'qualifications under this section, the private or public nonprofit organization which is developing or ',constructing low-income single-family housing units for low-income individuals or families shall 'provide the city manager with a statement, inform acceptable to the city, that the owner meets the '.qualifications under this chapter. '2. "Private or public nonprofit organizations" means nonprofit corporations, municipal corporations, '.and other organizations formally established for the charitable purpose of providing low-income or 'iaffordable housing, recognized under the United States Internal Revenue Code as qualified ,recipients of tax deductible charitable contributions, including but not limited to organizations having ',received approval from the Internal Revenue Service of such status upon the filing of all forms as !required for recognition as a 501(c)(3) corporation. For an entity to qualify as a private or public ',nonprofit organization under the provisions of this section, upon making a written request for X135 deferral, the entity shall provide sufficient proof of such status, including such documentation as the' city manager may deem necessary. To qualify for CBS deferrals, all private or public nonprofit organizations shall assure that the project development includes "sweat equity," defined as labor !contributed by the prospective homeowner and/or volunteer labor contributed through community 'donation. For purposes of this section, municipal public housing authorities established pursuant to '.Washington law shall be considered public nonprofit organizations. i3 "Building fee" means any fee in connection with a building permit application, including, but not 'limited to inspections plan review related building fees (demolition mechanical plumbing, etc.), ,fire code fees (including fire alarm fees), and street development permits. Attachment 2 Exhibit A -Ordinance 3052 Page 2 of 5 "Building fees" does not mean or include land use fees including, but not limited to, related to (permits or approvals for platting environmental shoreline critical area conditional use or variance, 'design review, or reauests for waiver. Anv fees for pre-application conference technical conference or the like would be waived to the percentage proportionate to the extent the activity relates to building fees. 4 "Utility connection charges" means charges to connect to the water or sewer utility. C. SDC Building Fees, and Utility Connection Charge Deferral Requests -Qualified Applicants. Upon thee. 'approval of the city manager, collection of system development charges, building fees, and utility 'connection charges r to serve single-family or multifamily residences 'may be deferred at the request of a private or public nonprofit organization which is developing or ',constructing low-income single-family housing units for low-income individuals or families. To qualify for !such deferral, CBS deferral requests shall be made in writing to the city manager. The amount of the fee waived shall be a percentage proportionate to the amount of the proiect that is low- income~ i e if the proiect is 20 percent low-income housing 20 percent of the total fee would be waived. D. Recording. All ABC-deferrals granted shall be recorded as a real property lien receivable in the applicable utility fund records until such time as the ~B~deferral has been repaid to the city, or as 'provided in this chapter. E. Repayment of CBS Deferrals. All a9G-amounts deferred for low-income single-family or multifamily housing applicants pursuant to this section shall be reimbursed to the city's ~i3S deferral account in the applicable utility, as follows: ',1. The applicant ("private or public nonprofit organizations") shall covenant in form acceptable to (the city that the property will be sold to a person or persons who meet, at the time of building permit 'application, the applicant's eligibility requirements. If within 20x-9 years of the date of building permit !application, the property is sold, and the new buyer meets the applicant's eligibility requirements, then no repayment is required. 2. After 20x-9 years from the date of the original deferral, there is no requirement to repay the ',deferred fee~B~ and the ~BSfee shall be considered waived, subject to subsection (E)(3) of this 'section. 3. If within 20x-9 years of the date of building permit application, the property is sold, and the new buyer does not meet the eligibility requirements of this section, then repayment of the deferred fee~BS is required in full, without interest. Default interest rate (for example, a sale to a Attachment 2 Exhibit A -Ordinance 3052 Page 3 of 5 ',nonqualifying person occurs, and repayment of the deferred fee~does not occur simultaneously 'with the transfer of the property) shall be 12 percent simple interest. 'Repayment of deferred fees~BGs shall be secured with a real estate security instrument as approved by the city attorney. Such instrument shall be senior to all other security instruments ',securing loans on the property, except for financing provided by or through the private or public 'nonprofit organization which is developing or constructing low-income single-family housing units 'for low-income individuals or families, unless the city manager determines that the city receives 'adequate security for repayment from a junior security instrument. (Ord. 2910 § 1, 2006; Ord. 2768 § 1, 2001; Ord. 2734 § 1, 2000). F Limitation The program is limited as follows: for building fees and utility connection charges -four dwelling units per applicant per year~ for SDC - no limit. Requests for deferrals for building fees and utility connection charges above the limit are subject to approval by the City Council on a case by case basis Council would evaluate among other things the impact to City Department budgets from processing an increased number of deferral requests. G Reporting At least annually the City Manager shall report to the City Council on the amount of deferral requests and deferred fees. SECTION 2 Section 13 03.110 -System development charee deferrals for low-income housine of the Port Townsend Municipal Code is hereby amended to read as follows (text in strikeout is deleted, text in underline is added): 13.03.110 System development charge deferrals for low-income housing. 'A. Program Established. In accordance with policy direction from the Port Townsend comprehensive plan,' ',the city may allow deferral of payment of system development charges (SDCs) for a private or public 'nonprofit organization which is developing or constructing low-income single-family housing units for low- income individuals or families, as defined in this section. B. See PTMC 3.36.011 for program details. Attachment 2 Exhibit A -Ordinance 3052 Page 4 of 5 Attachment 2 Exhibit A -Ordinance 3052 Page 5 of 5