Form revised: December 14, 2010

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	CBO 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 R.D. Merrill at Stone Way II, LLC for new multifamily rental housing constructed as part of a mixed-use project on property situated at 4301 Stone Way North, Seattle, Washington, under Seattle’s Multifamily Housing Property Tax Exemption Program, Seattle Municipal Code Chapter 5.73.

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 4301 Stone Way North, 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 percent of the units are affordable units, for the duration of the tax exemption period, and that required replacement housing is maintained for the duration of the tax exemption period.  There is no tax exemption for the portion of the project that is not residential according to the King County Tax Assessor.

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

The Multifamily Housing Property Tax Exemption Program applicable to this project 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 93 rental housing units.

· The project will contain 48 studio units, 42 one-bedroom units and 3 two-bedroom units.  

· 20 percent (19 units) will be affordable to households with incomes between $47,900 and $69,350 (80 percent of median income for the studio and one-bedroom units, and 90 percent of median income for the two-bedroom units).

· The nineteen affordable units will be comprised of 10 studio units and 9 one-bedroom units.

· The total value of the first year exemption is $171,410, of which $54,320 is Seattle’s portion.

· The project is estimated to add $0.21 to the tax bill of the average assessed-valued home of $453,900 in the first year of exemption.

Please check one of the following:

_X__ This legislation does not have any financial implications.

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