TO: Internal Committee - 3P
FROM: Mayor Angela Birney
DEPARTMENT DIRECTOR CONTACT(S):
|
Planning and Community Development |
Carol Helland |
425-556-2107 |
DEPARTMENT STAFF:
|
Planning and Community Development |
Seraphie Allen |
Deputy Director |
|
Planning and Community Development |
Jeff Churchill |
Long Range Planning Manager |
|
Planning and Community Development |
Ian Lefcourte |
Senior Planner |
TITLE:
title
Adoption of a Resolution of Intention to hold a public hearing concerning a proposal to: expand the Overlake Residential Targeted Area, create a Faith-Based Institutions Residential Targeted Area, and create a Neighborhood Residential Targeted Area.
OVERVIEW STATEMENT:
recommendation
Staff recommends adoption of the resolution in Attachment A to establish an intention to hold a public hearing on October 15, 2024 concerning a proposal to:
1. Expand the existing Overlake Residential Targeted Area, and
2. Create a new Faith-Based Institutions Residential Targeted Area, and
3. Create a new Neighborhood Residential Targeted Area.
The Multifamily Housing Property Tax Exemption (MFTE) is a tax incentive program that is authorized by the state of Washington as a potential tool for local jurisdictions to adopt. The MFTE program is intended to help increase multifamily market housing and affordable housing by exempting the residential portions of new multifamily or mixed-use constructions from property taxes. Multifamily and mixed-use developments can only qualify for MFTE if they are within certain designated areas.
These designated areas are called “residential target areas” (RTAs). In order to establish a multifamily property tax exemption program the City must designate one or more residential targeted areas that are consistent with the criteria in Revised Code of Washington (RCW) 84.14.040 and within which property tax exemption projects may be considered. Local jurisdictions must establish these RTAs themselves.
When jurisdictions want to establish or amend RTAs, RCW 84.14.040 requires that:
1. The governing authority will adopt a resolution of intent to designate one or more areas.
2. The resolution must include the time and place of a public hearing.
3. The public hearing is held to consider the area designation.
4. A notice for the public hearing must be published once a week for two consecutive weeks.
5. The notice must be published at least seven days but no more than thirty days before the hearing.
The City of Redmond adopted a MFTE program in 2017 and the program has experienced much success with a high rate of participation from local development. The proposed RTA changes align with direction in the Redmond 2050 Periodic Comprehensive Plan Update.
body
☒ Additional Background Information/Description of Proposal Attached
REQUESTED ACTION:
☒ Receive Information ☐ Provide Direction ☐ Approve
REQUEST RATIONALE:
• Relevant Plans/Policies:
Comprehensive Plan: policy HO-44 calls for incentive programs to increase the supply of affordable housing.
Housing Action Plan: identifies actions to complete to pursue the City’s housing goals, including updating the City’s inclusionary zoning and MFTE programs
• Required:
Resolution required by chapter 84.14 RCW.
• Council Request:
N/A
• Other Key Facts:
The resolution fulfills a portion of the obligations of the Revised Code of Washington related to the establishment of Multifamily Property Tax Exemption program (MFTE) Residential Targeted Areas (RTAs).
OUTCOMES:
This resolution will allow the City to expand the geographic areas of the City that provide developments with potential MFTE eligibility. This could increase the supply of market rate housing and affordable housing.
COMMUNITY/STAKEHOLDER OUTREACH AND INVOLVEMENT:
• Timeline (previous or planned):
N/A
• Outreach Methods and Results:
N/A
• Feedback Summary:
N/A
BUDGET IMPACT:
Total Cost:
n/a
Approved in current biennial budget: ☒ Yes ☐ No ☐ N/A
Budget Offer Number:
0000037
Budget Priority:
Vibrant and Connected
Other budget impacts or additional costs: ☐ Yes ☐ No ☒ N/A
If yes, explain:
N/A
Funding source(s):
N/A
Budget/Funding Constraints:
N/A
☐ Additional budget details attached
COUNCIL REVIEW:
Previous Contact(s)
|
Date |
Meeting |
Requested Action |
|
|
Item has not been presented to Council |
N/A |
Proposed Upcoming Contact(s)
|
Date |
Meeting |
Requested Action |
|
10/1/2024 |
Business Meeting |
Approve |
|
10/15/2024 |
Business Meeting |
Receive Information |
|
11/4/2024 |
Committee of the Whole - Planning and Public Works |
Provide Direction |
|
11/19/2024 |
Business Meeting |
Approve |
Time Constraints:
Due to the RCW requirements for RTA expansion, the following are time constraints related to this item:
• Staff will bring the resolution to Council Business Meeting for resolution enaction on 10/1. The resolution will set the public hearing date for 10/15.
• Staff will publish notice of the public hearing on 10/2 and 10/8.
• Council will hold the public hearing at the Council Business Meeting on 10/15.
• Staff will address any follow-up at the Committee of the Whole Planning and Public Works meeting on 11/4.
• Council takes final action on changes to the RTAs on 11/19. The associated enacting amendments are already included within the broader Redmond 2050 amendment package. Redmond 2050 is scheduled for adoption on the 11/19 business meeting.
ANTICIPATED RESULT IF NOT APPROVED:
Redmond will not have the opportunity to expand RTAs and thus expand opportunities for affordable housing production.
ATTACHMENTS:
Attachment A: Resolution establishing a public hearing and intent to designate RTAs