To qualify for temporary exemption from property taxation under this chapter, the property shall satisfy all of the following requirements:
A. Location. The project shall be located within a residential targeted area as designated pursuant to SMC 3.50.050.
B. Size. The project shall include a minimum of four (4) units of multifamily housing within a residential structure or part of a mixed-use development. A minimum of four (4) new units shall be constructed or at least four (4) additional multifamily units shall be added to existing occupied multifamily housing. Existing multifamily housing that has been vacant for twelve (12) months or more does not have to provide additional units so long as the project provides at least four (4) units of new, converted, or rehabilitated multifamily housing.
C. Permanent Residential Housing. At least fifty (50) percent of the space designated for multifamily housing shall be provided for permanent residential occupancy, as defined in this chapter.
D. Proposed Completion Date. New construction multifamily housing and rehabilitation improvements shall be completed within three (3) years from the date of approval of the application, plus any extension of time granted under SMC 3.50.090(F).
E. Compliance with Guidelines and Standards. The project shall comply with:
1. All applicable requirements of the Snohomish Municipal Code, including but not limited to SMC Titles 14, Land Use Development Code; 15, Sewer, Water, and Stormwater; and 19, Buildings and Construction;
2. The City’s Comprehensive Plan;
3. All relevant design standards adopted by City Council ordinance or resolution; and
4. Any other applicable regulations in effect at the time the owner/applicant submits a fully completed application to the Director.
F. The property shall be used or developed in a way that increases or preserves property valuation, and the use or development of the property shall represent an increased investment in the property and property maintenance that results in an increase in the overall property values in the target area.
G. For the duration of the exemption granted under this chapter, the property shall have no violations of applicable zoning requirements, land use regulations, or building and housing ordinance requirements for which a notice of violation has been issued and is not resolved by compliance, withdrawal or other final resolution. Failure to meet this requirement could result in cancellation of the tax exemption as provided for in SMC 3.50.120.
H. Rehabilitation Requirements. Property proposed to be rehabilitated must fail to comply with one (1) or more standards of the applicable state or local building or housing codes on or after July 23, 1995. If the property proposed to be rehabilitated is not vacant, the owner/applicant shall provide each existing tenant housing of comparable size, quality, and price and a reasonable opportunity to relocate.
I. Tenant Displacement Prohibited. The project shall not displace existing residential tenants of structures that are proposed for redevelopment. Existing dwelling units proposed for rehabilitation shall have been unoccupied for a minimum of twelve (12) months prior to submission of an application and must fail to comply with one (1) or more requirements of the City’s building code, as now in effect or as amended. Applications for new construction cannot be submitted for vacant property upon which an occupied residential rental structure previously stood, unless a minimum of twelve (12) months has elapsed from the time of most recent occupancy.
J. Contract with the City. The owner shall enter into a contract with the City, as approved by the Director, under which the owner agrees to the implementation of the development on terms and conditions satisfactory to the City.
K. Prior to issuing a certificate of occupancy, a multifamily housing covenant in a form acceptable to the City Attorney that addresses price restrictions, eligible household qualifications, long-term affordability, and any other applicable topics of the affordable housing units shall be recorded with the Snohomish County Auditor. This multifamily housing covenant shall be a covenant running with the land and shall be binding on the assigns, heirs and successors of the owner. Affordable units that are provided under this section shall remain as affordable housing for the life of the project from the date of initial occupancy. (Ord. 2366 § 2 (Exh. A), 2019.)