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Home My WebLink About2910 System Development Charge Deferrals Ordinance No. 2910 AN ORDINANCE OF THE CITY OF PORT TOWNSEND AMENDING PORT TOWNSEND MUNICIPAL CODE, SECTION 13.03.110, RELATING TO SYSTEM DEVELOPMENT CHARGE DEFERRALS WHEREAS, Section 13.03.110 of the PTMC provides for a program for payment of system development charges (SDCs) for qualifying low income applicants; and WHEREAS, the City Council determines it appropriate to amend Section 13.03.110 as set forth below, and to waive interest rate currently provided in Section 13.03.110 on deferred fees, which Council finds acts as a deterrent to use of the program, and to broaden the eligibility requirements for the program to include persons who meet the eligibility qualifications of a qualified IRS 50 I (c )(3) nonprofit corporation providing low income housing, NOW, THEREFORE, the City Council of the City of Port Townsend ordains as follows: SECTION 1. Amendment. Section 13.03.110 System Development Charges Deferrals of Low Income Housing of the Port Townsend Municipal Code is hereby amended 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 twentieth WCh, 2006. ~, Mark We h, Mayor Attest: Approved as to Form: CJl-~ John P. Watts, City Attorney Page 1 Ordinance 2910 EXHIBIT A 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 low ineome siRgle family aT ffiHltifamiIy resiasHtial RfJplieant5 private or DubHe nOllorofit onmnization which is develooin2: or constructing low-income sim!le-familv housing units for low-income individuals or families, as defined in this section. SDC defDlnls ,hall be ayailable OR a lirst eome, lirst servea basis, fundea by a real propefloy lieR reeeP/able reeonlea iR the applieable ltliJity reeords. B. Defmitions. The following definitions shall apply to the administration of this section: I. "Low-income" means the dwelling shall be owned and occupied by a person or persons who meet at the time of building permit application any of the f"Howing qlialiEieatiaRs: (3) Ille appJieaRl recei....s S"pplemeHtal SeeHtit)'lfleame p1ff5"antta 12 USC SeetiaRs 1381 through 1383, as HO','.' or hereafter amemled; or (b) tae applieaRt reeewaG gliflplemental Seeurity Disability Ineama pnrsuaRl to feaeralla'.':, and is able to establish that eUlTeHt anRIializea haliseholll iueame /fam all semees does not e"eeeatae slim ef $1 &,GGO per year; or (e) the Bflplicant is eligible fer ana reeewes a federal, stale or I"iyate disability peRsian, ana is able ta establish that 6I:HTent af'.fltializea inseme Ram all S8Hrces Gees Hat e?:esed the SHfll af $18,eOe per year; or (a) tRe apl'lieaRt Jias a tatal6HffeRl aRRIi"lizea ineeme frem all salirce, of lOG I'ereent er less ef po.. erty le'.'el baseaupaR tetal halisohela size liSiRg payefly level ealclilatisRs established by the state ef'.\'ashiagton fur Jeff-erS0R COHn!)' aT by the feEleFal gevefnmeHt if state ealel:llatisas ar-e flot a~/ailaele; the elhdbilitv reauirements for the private or Dublic nonprofit oflzanization which is developing or constructing low-income housing. To establish qualifications IiDder this section, the applieORt private or DubHe nonorofit of1!anization which is develooinll or constructin!llow~income simde-familv housing units fOf low-income individuals or families shall provide the City Manager tiRanee aireetor with a elirreRl statement, in form acceotable to the City. that the owner meets the oualifications under this Chapter. '*- eligibility for Sgl, ssm, Of s"ell ai,ability pe'lGiaH or pf8af of ai,ability, wllich proof sllall Rat be mer. tIlan Illre. menlhs ela. .^.pplieants shall, uHaar oath or ponelty of pel'jliry, veril)' sliell iRformatian ana pra,'iae sliell ather iRformatiaR or aata as aeemea appropriate, oR fc""" ana iH the manner aoterminea by the eity [manee aireetor. .'\pplisants shall Be reEJ.1:Iirea ta mest fue E}1:Ialifisatiens Haaer this seetisn HRtH the city is reimbmsed as pr8'.Qdea in Illi. ,eotiaH, or liRlil the eity aete_inos the applieaRl no laRger meets tile q"alit'ieatieRs ooaer this sestiaR aRa iRtereGt bogiRs aecruing OR Ille aeferr.a SDC as preyjaea iR this sectiaR. Periaaically, as aele_iRea by the eity tinanee airestar, Imt Hat less than annually, applieant' ,hall previae infa_1aR, on rerms ana in the manner aotOfffiinea by tho sit)' t'iHRRee airestar, to allow the eit) to actermine that the applisant meets the qlilllitisatieR' ooaer this seetioR. The sit)' fiRMee aireotor "Ilall notifY tho applieeRt if it is determinealllat Ille Bflfllieant has net meet the quaEfieatiaRS lIDaer this seetiaR, aRa the date (a, aeterminad b)'llla sit)' tinanee airectar wheR the applieoRl aia Hot meet the qliHlifieatiaRs) t-hat iRlare,t begin, aeeruing OR the aefoma SDC as pro"illed iH this seetieR, anallle date the aefenea gDC _st ba paia lIRaer this saetieR. 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 affordable 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 forrecognition 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 SDC deferral, the entity shall provide sufficient proof of such status, including such documentation as the eity ealiReil Citv Manager may deem necessary. To qualify for SDC deferrals, A-I Exhibit A to Ordinance 2910 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 ofthis section, municipal public housing authorities established pursuant to Washington law shall be considered public nonprofit organizations, C. SDC Deferral Requests - Qualified Applicants_ Upon the approval of the City Manager, collection of system development charges under the provisions of this chapter 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. Emo,eJ3t as pra':iaea in SeetioR 3 of OraiRa8ee }la. 2667 (eRabliRg the relraaclive applieatien of this seetieR to JaRua..)' 1,1998),110 qualify for such deferral, SDC deferral requests shall be made in writing to the City Manager. D. All SDC deferrals granted shall be recorded as a real property lien receivable in the applicable utility fund records until such time as the SDC deferral has been repaid to the city, or as provided in this Chapter. E. Repayment of SDC Deferrals. All SDC amounts deferred for low-income single-family or multifamily housing applicants pursuant to this section shall be reimbursed to the city's SDC deferral account in the applicable utility, as follows: 1. The aoolicant ("private or public nonnrofit onmnizations") shall covenant in form acceotable to the City that the orooerty wiU be sold to a person or oersons who meet. at the time of buildillll. oermit anolication. the applicant's eligibilitv reauirements. Ifwithin ten (10) vears of the date of building permit application. the orooerty is sold. and the new buyer meets the apolicant's elie:ibilitv reauirements. then no reoavment is reauired. 2. After ten vears from the date of the original deferral. there is no reQuirement to repav the SDC and the SDC shan be considered waived. subiect to (3) below. 3. If within ten (10) vears of the date of building permit application. the propertv is sold, and the new buver does not meet the eligibility reQuirements of PTMC 13.03. I 10. then repayment ofthe deferred SDC is reQuired in fuJI. without interest. Default interest rate (for examole. a sale to a non-auaHfviulr uerson occurs. and repayment of the deferred SDC does not occur) shall be 12 percent simple interest. upOR the sale of the property, or upaR eity aeter-minatieR that the applieaRl Ra lenger meets the ~lialifisatians HRaer this sestian, as proviaea iR this seetioR. Repayment of deferred SDCs 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 bv or throueh the private or DubHe nonprofit ore:anization which is develooiDl! or constructimr low~ineome sim!le~familv housin2. units for low~income individuals or families, unless the (lit)' EEluReil City Mana1!er determines that the city receives adequate security for repayment from a junior security instrument. r.ll GHsh seeurily instrumsfl:tS shall saRtain a "alle en sale" slause, refJ.uiring reimbursement af aefcrrea SDCs to the city upon lhe sale of the property to any plirel1a,ar. DefcHea SDCs shalllil,e'l:ise be repaid to the eily lipen liro! mortgage payeff or any ro!iRaRsiyg of loan, GeSllfea BY senior renl propef10' sOGlirity iRGtrumeRlS. F. AmeHRlafReimlmrsement to the City. Uj3aR the sala of the prapa!'ty to any purehasor, the seller shall reimbHrsa the eily in the full am.HUt of aofeHea SDCs. If the aJ3plieaRl ae.5llat meet the 'l"alifisatiaRs liRaer this se.tian as aetofHliRea BY the eily fiRanee aireelar, then Ra later than thr.a years Hem the elate aelefHliRea by the eily!iRanee elirectar that tho applieant eIiallet meet the qaalitkMians uRaer this seetioR the applisant shall rairablirse the eit) in the full amauRl of aefaFfea SDCs, plus simple iRlerest there all at a rate commeRsblrate with the aHfl:Hal one year U.8. Treasury Rates ana I3(JREis, aajHstea f-er €8RStaat maturities, as pliblishea ill the Feaeral R"serye Blilletin or atherv:ioe a','llilable Ham the Federal RaSCfye Bank, Ham the date a.lerminea BY the eily that the applicant aia not meet the ~lialifi.atiaRs liREler this seeliaR 6alllfllilCa _ally an liRpaia Balan.es. Defalilt iRlerest rata shall Be 12 pere....!. simple iRlerest. Interest ealelilatea plifGliaRlte this sestiaR ,hall Rot Be SOlllfloliRded. /\lternative)o', at the aptiaR of the seller, the A-2 Exhibit A to Ordinance 2910 reimlmmemeRt to the cily may be at !he then existing SDC Fate, far samparable asyelapmoRlaR prapertie, within Port TaV;f1SeRa for eonnectiafl to the sity's water and wastewater 'y,tems; pro'. iasel, that if at slieA time the eit)' has rcpaaleel its SDC program, reirnblirsemeRt shallee maele tc the city iR the erigiRal amcURt of tile aefe.nd EDC, plHs iRlercst !hereaR as eleseribea ill this slibseelian; pra';ieled further, that in no eirelimstRRees shall the reimblif,emeRl to the sit)' be las, thall the amaliRlaftha SDC arigiflali) aaferrea. G. Annlial M",dmlim EDC D.f"Hals. The maxilRlflR ammmtaf EDC deferrals that may be grRRleel per year i, limite a to $15,000 iR total. (Ord. 2768 ~ 1,2001; Ord. 2734 ~ 1,2000). A-3 Exhibit A to Ordinance 2910