Form revised February 6, 2008

 

FISCAL NOTE FOR NON-CAPITAL PROJECTS

 

Department:

Contact Person/Phone:

DOF Analyst/Phone:

Office of Housing

Amy Gray 4-0232

Amanda Allen 4-8894

 

Legislation Title:

A RESOLUTION authorizing the Director of Housing to enter into a Multifamily Housing Limited Property Tax Exemption Agreement between the City of Seattle and Portvue, LLC for new multifamily rental housing to be constructed as part of a mixed-use project on property situated at 4040 26th Avenue Southwest, Seattle, Washington, under Seattle’s Multifamily Housing Property Tax Exemption Program, Chapter 5.73 SMC.

 

 

·       Summary of the Legislation:  The proposed Resolution authorizes the Director of Housing to enter into a Multifamily Housing Limited Property Tax Exemption Agreement (“Agreement”) for new multifamily rental housing to be constructed as part of a mixed-use project at 4040 26th Avenue Southwest, Seattle.  The value of the multifamily residential improvements will be exempt from taxation for up to 12 successive years so long as the owner and its successors comply with the requirements of the Agreement and SMC Chapter 5.73, including the requirement that at least 20% of the units are affordable units, for the duration of the tax exemption period. There is no tax exemption for the portion of the project that is not housing.

 

 

·       Background:  (Include brief description of the purpose and context of legislation and include record of previous legislation and funding history, if applicable):

The current Multifamily Housing Property Tax Exemption Program was adopted by the City Council in June 2008 (Ordinance 122730).  After the Director of Housing approves an application for limited tax exemption for multifamily housing under SMC Chapter 5.73, the applicant must enter into a contract approved by Resolution of the City Council to receive the exemption.  This Resolution allows the Director of Housing to enter into a Multifamily Housing Limited Property Tax Exemption Agreement with the applicant.

 

Project Description:

·       The project consists of 185 rental housing units.

·       The project will contain 45 studio units, 100 one-bedroom units, and 40 two-bedroom units.  

·       A total of 20% (37) of the units will be affordable to households with incomes between $47,200 and $68,310 (80% of median income for the studio and one-bedroom units and 90% of median income for the two-bedroom units).

·       The thirty-seven affordable units will be comprised of nine studio units, 20 one-bedroom units, and eight two-bedroom units.

·       The total value of the first year exemption is $223,483, of which $72,366 is Seattle’s portion.

·       The project is estimated to add $0.12 to the tax bill of the average assessed-valued home of $530,800 in the first year of exemption.

·       There is no other City funding in the project.

 

 

·       Please check one of the following:

 

__X     This legislation does not have any financial implications.  (Stop here and delete the remainder of this document prior to saving and printing.)