City of Olympia - File #: 23-0477

• File #: 23-0477
• Version: 2
• Type: recommendation
• Status: Filed
• File created: 5/21/2023
• In control: Utility Advisory Committee
• Agenda date: 6/1/2023
• Final action: 6/1/2023
• Title: Consideration of a Partial Exemption of General Facilities Charges for Development Creating New Units of Affordable Housing

Date	Ver.	Action By	Action	Result
6/1/2023	2	Utility Advisory Committee	recommended for approval

Title
Consideration of a Partial Exemption of General Facilities Charges for Development Creating New Units of Affordable Housing

Recommended Action
Move to recommend a 50% exemption of general facility charges for development creating new units of affordable housing.

Report
Issue:
Whether to approve the recommendation to exempt 50% of general facilities charges in effect at the time of payment for development creating new units of affordable housing which costs no more than thirty percent (30%) of gross monthly household income for households that when adjusted for household size have an income equal to or below eighty percent (80%) of the area median income. Whether to offset revenue lost due to the recommended exemption via an increase in general facility charges for new development.

Staff Contact:
Jacinda Steltjes, Affordable Housing Program Manager, City Manager's Office, 360.753.8482

Presenter:
Jacinda Steltjes, Affordable Housing Program Manager

Background and Analysis:
The City wishes to encourage affordable housing and has adopted several measures intended to incentivize such development. One measure that was brought before the Utility Advisory Committee in May 2022 is the partial exemption of general facility charges for development creating new units of affordable housing. The UAC requested at that time that staff return with recommendations on housing types eligible to receive the exemption, qualifications for an exemption, the percent of exemption, and how revenue lost due to the exemption will be recaptured.

Qualifications and Percentage of Exemption
Staff recommends exempting fifty percent (50%) of general facility charges in effect at the time of payment for single-family and multi-family rental housing development that creates new units of affordable housing which costs no more than thirty percent (30%) of gross monthly household income for households that when adjusted for household size have an income equal to or below eighty percen...