Title
Approval of a Resolution Authorizing a 12-Year Multi-Family Tax Exemption Agreement Between City of Olympia and 505 Union Avenue LLC for an Affordable Housing Development Project
Recommended Action
Committee Recommendation:
Not referred to a committee
City Manager Recommendation:
Move to approve a Resolution authorizing a 12-Year Multi-Family Tax Exemption Agreement between the City of Olympia and 505 Union Avenue LLC.
Report
Issue:
Whether to approve a Resolution authorizing a 12-Year Multi-Family Tax Exemption Agreement between the City of Olympia and 505 Union Avenue LLC.
Staff Contact:
Jacinda Steltjes, Housing Manager, Community Planning and Economic Development, 360.790.5224
Presenter(s):
None - Consent Calendar Item
Background and Analysis:
Multi-Family Tax Exemption Program
In accordance with state legislation (RCW 84.14) the City of Olympia has established a Multi-Family Tax Exemption (MFTE) program (OMC 5.86) to encourage the production of housing within certain residential target areas. The MFTE program provides a property tax exemption for new residential construction. The tax exemption applies to the value of new or improved residential construction only, meaning projects benefitting from the City's MFTE program must still pay property taxes on the assessed value of the land and any commercial aspects of the development.
State law requires that a development project meet the following criteria to be eligible for the MFTE program:
* The development must include new or rehabilitated housing intended for permanent residential occupancy;
* Four or more new housing units must be created;
* 50% or more of the space must be for permanent residential occupancy;
* The housing must be located in a residential target area identified by the participating municipality;
* The project must comply with the municipality's comprehensive plan, building codes and zoning codes;
* The construction/rehabilitation must be completed within three years of...
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