Title
Approval of a Resolution Authorizing the Execution of a Multi-Family Tax Exemption Agreement Between City of Olympia and Urban Olympia 12, 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 the execution of a Multi-Family Tax Exemption Agreement between the City of Olympia and Urban Olympia 12, LLC.
Report
Issue:
Whether to approve a resolution authorizing the execution of a Multi-Family Tax Exemption Agreement between the City of Olympia and Urban Olympia 12, LLC.
Staff Contact:
Jacinda Steltjes, Affordable Housing Program Manager, Office of Community Vitality/Housing and Homeless Response, 360.790.5224
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
Project Summary
Urban Olympia 12, LLC is requesting a 12-year multi-family tax exemption for a housing project being constructed at 306 4th Ave. E. The project will produce 2,600 square feet of ground floor commercial space with 48 residential units above the commercial space. Thirty (30) of the residential units will be studio and one-bedroom units affordable to households with incomes at or below 80% of area median income, adjusted for household size. For reference, a two-person household in Thurston County whose annual gross income is 80% of area median income earns $72,150. Affordable studio units within the project are anticipated to rent for between $1,240 to $1,300. Affordable one-bedroom units are anticipated to rent for between $1,525 and $1,600. The remaining 18 units will be rented at market rate.
Property Background
The applicant purchased the property where the project will occur from the City of Olympia. A Real Estate Purchase and Sale Agreement executed in May 2021 states "The Parties agree that sixty percent (60%) of the housing units to be constructed by Buyer upon the Property, which is the subject of this Agreement, ...
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