Title
Approval of a Resolution Authorizing a Multifamily Housing Tax Agreement with Cameron Monda for 13th and Cherry Townhomes Located at 526 & 532 13th Ave SE
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve the Resolution authorizing a Multifamily Housing Tax Agreement with Cameron Monda for 13th and Cherry Townhomes located at 526 & 532 13th Ave SE.
Report
Issue:
Whether to approve the Resolution Authorizing a Multifamily Housing Tax Agreement with Cameron Monda for 13th and Cherry Townhomes Located at 526 & 532 13th Ave SE.
Staff Contact:
Christa Lenssen, Housing Program Specialist, City Manager’s Office, 360.570.3762
Leonard Bauer, Director, Community Planning & Development, 360.753.8206
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
The 13th & Cherry Townhomes at 526 13th Ave SE & 532 13th Ave SE will add 12 new units of multifamily residential housing in the Multifamily Tax Exemption Downtown Residential Target Area. The application was received by the City on September 1, 2021. Applicant Cameron Monda is seeking an eight-year tax exemption for 12 new market rate units. The tax exemption applies to all qualifying residential units for 8 years.
Background on the Multi-Family Tax Exemption in Olympia
The primary purpose of this program is to promote construction of housing in key areas of the city where we would like to incentivize housing development. State law authorizes the City of Olympia to adopt a multi-family housing tax exemption program (RCW 84.14). The program provisions under Olympia Municipal Code under 5.86 were most recently amended in 2009 to create an 8 and 12-year program for market rate and affordable housing provisions.
The property tax exemption applies to only the increased value of building housing (new construction). The exemption does not apply to the land or costs associated with any non-housing improvements. The units in this project meet all applicable requirements to be eligible for a tax exemption, including:
• The housing is located in the Downtown Target Area, which is one of three designated residential target areas adopted by the City Council.
• 50 percent of the space or more is for permanent residential occupancy.
• Four or more new housing units are created.
• The project complies with the City’s comprehensive plan, building and zoning codes.
• The construction/rehabilitation will be completed within three years of approval of the application.
• No tenant displacement occurred.
Neighborhood/Community Interests (if known):
This project is within the Downtown Neighborhood Association. One parcel currently has a single-family home occupied by owner/applicant, Cameron Monda, and the adjacent parcel is a vacant lot. The single-family home onsite will be demolished and two 6-unit townhomes will be constructed on the two parcels. Single car garages will be provided at the first floor of each unit. Second and third floors will contain the 2 bed/2.5 bath residential units. Rents for residential units are anticipated to be $1,700-$2,550. The neighborhood has mixed use buildings, with some commercial, some single family and multifamily residences.
Options:
1. Approve the Resolution authorizing the Multi-family Tax Exemption agreement.
2. Do not approve the Resolution and provide further direction to staff.
3. Consider the Resolution at another time.
Financial Impact:
Property taxes will continue to be paid on the underlying property and on non-residential portions of the new construction. The taxed value of the residential improvements will be exempt from Ad Valorum tax for eight years after completion of construction.
Attachments:
Resolution
Agreement