Form revised February 4, 2010

 

FISCAL NOTE FOR NON-CAPITAL PROJECTS

 

Department:

Contact Person/Phone:

DOF Analyst/Phone:

Office of Housing

Amy Gray/4-0262

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 SP/BIT Ballard On The Park LLC for new multifamily rental housing constructed as part of a mixed- use project on property situated at 2233 Northwest 58th Street, 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 constructed as part of a mixed-use project at 2233 Northwest 58th Street, 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).  One of the amendments to SMC Chapter 5.73 allows owners whose first building permit under SMC Chapter 22 for an eligible project was issued between July 22, 2007 (the effective date of amendments to RCW Chapter 84.14) and the effective date of Ordinance 122730 (August 6, 2008) to apply or reapply for tax exemption anytime prior to the completion of construction of the project.  SP/BIT Ballard On The Park LLC received its first building permit on May 14, 2008 and construction of the project was not completed at the time of application.

 

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 268 rental housing units.

·         The project will contain 69 studio units, 139 one-bedroom units and 60 two-bedroom units.  

·         Twenty percent (54) 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 fifty-four affordable units will be comprised of 14 studio units, 28 one-bedroom units, and 12 two-bedroom units.

·         The total value of the first year exemption is $214,010, of which $69,230 is Seattle’s portion.

·         The project is estimated to add $0.25 to the tax bill of the average assessed-valued home of $446,124 in the first year of exemption.

 

·         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.)