AN ORDINANCE relating to land use and zoning, amending Sections 23.49.011, 23.49.013, 23.49.014, and 23.49.181 of the current Seattle Land Use Code (SMC, Title 23) of the Seattle Municipal Code, to correct omissions from previous amendments and facilitate the use of incentive provisions within the Downtown Harborfront 2 (DH2) zone and the Pioneer Square Mixed (PSM) 85-120 zone.

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. Section 23.49.011 of the Seattle Municipal Code, which Section was last amended by Ordinance 123589, is amended as follows:

23.49.011 Floor area ratio

A. General (( S )) s tandards(( . ))

1. The base and maximum floor area ratio (FAR) for each zone is provided in

Table A for 23.49.011.

(( Table A for 23.49.011

Base and Maximum Floor Area Ratios (FARs) ))

Table A for 23.49.011 Base and Maximum Area Ratios (FARs)
Zone Designation	Base FAR	Maximum FAR
Downtown Office Core 1 (DOC1)	6	20
Downtown Office Core 2 (DOC2)	5	14
Downtown Retail Core (DRC)	3	5
Downtown Mixed Commercial (DMC)	4 in DMC 65 4.5 in DMC 85 5 in DMC 125, DMC 160, DMC 240/290-400, and DMC 340/290-400 3 in DMC 85/65-150	4 in DMC 65 4.5 in DMC 85 7 in DMC 125, DMC 160, and DMC 240/290-400 10 in DMC 340/290-400 5 in DMC 85/65150
Downtown Mixed Residential/Residential (DMR/R)	1 in DMR/R 85/65 1 in DMR/R 125/65 1 in DMR/R 240/65	1 in DMR/R 85/65 2 in DMR/R 125/65 2 in DMR/R 240/65
Downtown Mixed Residential/Commercial (DMR/C)	1 in DMR/C 85/65 1 in DMR/C 125/65 2 in DMR/C 240/125 2.5 in DMR/C 65/65-85 2.5 in DMR/C 65/65-150	4 in DMR/C 85/65 4 in DMR/C 125/65 5 in DMR/C 240/125 4 in DMR/C 65/65-85 4 in DMR/C 65/65-150
Pioneer Square Mixed (PSM)	N.A.	N.A.
International District Mixed (IDM)	3, except as stated below* 6 for hotels** in IDM 75-85 and IDM 75/85-150	3, except as stated below* 6 for hotels** in IDM 75-85 and IDM 75/85-150 6 in IDM 150/85-150
International District Residential (IDR)	1	2 if 50% or more of the total gross floor area on the lot is in residential use
International District Residential/Commercial (IDR/C)	3, except hotels 6 for hotels**	3, except hotels 6 for hotels**
Downtown Harborfront 1 (DH1)	N.A.	N.A.
Downtown Harborfront 2 (DH2)	2.5	Development standards regulate maximum FAR
Pike Market Mixed (PMM)	7	7
Footnotes: N.A. = Not Applicable. * In the IDM 150/85-150 zone, hotel uses are subject to the base FAR of 3 FAR. ** Hotel use may be combined with up to 3 FAR of other chargeable floor area, up to a total of 6 FAR.

2. Chargeable floor area shall not exceed the applicable base FAR except as expressly authorized pursuant to this chapter.

a. In DOC1, DOC2, and DMC zones that are located outside of South Downtown, if chargeable floor area above the base FAR is allowed on a lot for development that includes a new structure, the first increment of chargeable floor area above the base FAR, shown for each zone in Table B for 23.49.011, shall be gained by making a commitment satisfactory to the Director that the proposed development will earn a LEED Silver rating or meet a substantially equivalent standard approved by the Director as a Type I decision. In these zones outside of South Downtown, no chargeable floor area above the base FAR is allowed for a project that includes chargeable floor area in a new structure unless the applicant makes such a commitment. If such a commitment is made, Section 23.49.020 applies. This subsection 23.49.011.A.2.a shall expire on May 12, 2011.

(( Table B for 23.49.011 ))

Table B for 23.49.011
Zone	First increment of FAR above the base FAR achieved through LEED Silver Rating
All DOC1 zones	1.0
All DOC2 zones	0.75
DMC 340/290-400	0.50
DMC 125, DMC 160, DMC 240/290-400	0.25

b. In DOC1, DOC2, DH2, and DMC zones outside of South Downtown, additional chargeable floor area above the first increment of FAR that exceeds the base FAR may be obtained only by qualifying for floor area bonuses pursuant to Section 23.49.012 or Section 23.49.013, or by the transfer of development rights pursuant to Section 23.49.014, or both, except as otherwise expressly provided in this subsection 23.49.011.A.2. After the expiration of subsection 23.49.011.A.2.a, the first increment of floor area that exceeds the base FAR shall be zero.

* * *

B. Exemptions and (( D )) d eductions from FAR (( C )) c alculations(( . ))

1. The following are not included in chargeable floor area, except as specified below in this Section 23.49.011:

a. Retail sales and service uses and entertainment uses in a DRC zone, up to a maximum FAR of two for all such uses combined;

b. Street-level uses meeting the requirements of Section 23.49.009,

Street-level use requirements, whether or not street-level use is required pursuant to Map 1G, if the uses and structure also satisfy the following standards:

1) The street level of the structure containing the exempt space must have a minimum floor to floor height of 13 feet;

2) The street level of the structure containing the exempt space must have a minimum depth of 15 feet; and

3) Overhead weather protection is provided satisfying Section 23.49.018.

c. Shopping atria in the DRC zone and adjacent areas shown on Map 1J, provided that:

1) The minimum area of the shopping atria is 4,000 square feet;

2) The eligibility conditions of the Downtown Amenity Standards are met; and

3) The maximum area eligible for a floor area exemption is 20,000 square feet;

d. Child care;

e. Human service use;

f. Residential use, except in the PMM (( and DH2 )) zone(( s )), and provided that allowable residential floor area is limited on lots from which TDP is transferred in accordance with Chapter 23.58A;

g. Live-work units, except in the PMM(( and DH2 )) zone(( s ));

* * *

Section 2. Section 23.49.013 of the Seattle Municipal Code, which Section was last amended by Ordinance 123589, is amended as follows:

23.49.013 Bonus floor area for amenities

A. An applicant may achieve a portion of the chargeable floor area to be established in addition to base FAR through bonuses for amenities, subject to the limits in this chapter. Amenities for which bonuses may be allowed are limited to:

1. Public open space amenities, including hillside terraces on sites shown

as eligible for bonuses on Map 1J, urban plazas in DOC1, DOC2 and DMC

340/290-400 zones, parcel parks in DOC1, DOC2, DMC, DMR, DH2, and IDM zones, public atria in DOC1, DOC2, DMC 340/290-400, and DMC 85/65-150 zones, green street improvements and green street setbacks on designated green streets;

2. Hillclimb assists or shopping corridors on sites shown as eligible for these respective bonuses on Map 1J;

3. Human services uses as follows:

a. Information and referral for support services;

b. Health clinics;

c. Mental health counseling services;

d. Substance abuse prevention and treatment services;

e. Consumer credit counseling;

f. Day care services for adults;

g. Jobs skills training services;

4. Public restrooms;

5. For projects in a DOC1, DOC2, or DMC 340/290-400 zone, rehabilitation and preservation of Landmark performing arts theaters, provided that the following conditions are met:

a. the theater contains space that was designed for use primarily as, or is suitable for use as, a performing arts theater;

b. the theater is located in a DOC1, DOC2, DRC, or DMC zone;

c. the theater is a designated Landmark pursuant to Chapter 25.12;

d. the theater is subject to an ordinance establishing an incentive and controls, or the owner of the theater executes, prior to the approval of a floor area bonus under any agreement with respect to such theater, an incentives and controls agreement approved by the City Landmarks Preservation Board;

e. the theater has, or will have upon completion of a proposed plan (( or )) of rehabilitation, a minimum floor area devoted to performing arts theater space and accessory uses of at least 20,000 square feet; and

f. The theater will be available, for the duration of any commitment made to qualify for a floor area bonus, for live theater performances no fewer than 180 days per year; and

6. Transit station access for fixed rail transit facilities.

B. Standards for (( A )) a menities

1. Location of (( A )) a menities. Amenities provided by the applicant by performance shall be located on the lot using the bonus, except as follows:

a. Green street improvements may be located within an abutting right-of-way subject to applicable Director's rules.

b. An open space amenity, other than green street improvements, may be on a lot other than the lot using the bonus, provided that it is within a Downtown zone and all of the following conditions are satisfied:

1) The open space must be open to the general public without charge, must meet the eligibility conditions of the Downtown Amenity Standards, and must be one of the open space features cited in subsection 23.49.013.A.1.

2) The open space must be within 1/4 mile of the lot using the bonus, except as may be permitted pursuant to subsection 23.49.013.B.1.b.4.

3) The open space must have a minimum contiguous area of 5,000 square feet, except as may be permitted pursuant to subsection 23.49.013.B.1.b.4.

4) Departures from standards for the minimum size of off-site open space and maximum distance from the project may be allowed by the Director as a Type I decision if the Director determines that if such departures are approved, the proposed open space will meet the additional need for open space caused by the project, and improve public access to the open space compared to provision of the open space on-site.

5) The owner of any lot on which off-site open space is provided to meet the requirements of this Section 23.49.013 shall execute and record an easement or other instrument in a form acceptable to the Director assuring compliance with the requirements of this Section 23.49.013, including applicable conditions of the Downtown Amenity Standards.

c. Public restrooms shall be on a ground floor; shall satisfy all codes and

accessibility standards; shall be open to the general public during hours that the structure is open to the public, although access may be monitored by a person located at the restroom facility; shall be maintained by the owner of the structure for the life of the structure that includes the

bonused space; and shall be designated by signs sufficient so that they are readily located by pedestrians on an abutting street or public open space. The Director is authorized to establish standards for the design, construction, operation and maintenance of public restrooms qualifying for a bonus, consistent with the intent of this subsection 23.49.013.B.1.c to encourage the provision of accessible, clean, safe and environmentally sound facilities.

2. Options for (( P )) p rovision of (( A )) a menities(( . ))

a. Amenities must be provided by performance except as expressly permitted in this Section 23.49.013. The Director may accept a cash payment for green street improvements and a related voluntary agreement from the applicant, subject to this Section 23.49.013, the Downtown Amenity Standards and the Green Street Director's Rule, DR 112007, if the Director determines that improvement of a green street abutting or in the vicinity of the lot within a reasonable time is feasible. The cash payment must be in an amount sufficient to improve fully 1 square foot of green street space for each 5 square feet of bonus floor area allowed for such payment. The cash payment shall be maintained in a restricted account and shall be used to improve a green street abutting or in the vicinity of the lot.

b. Rehabilitation and preservation of a Landmark performing arts theater may consist of financial assistance provided by the applicant for rehabilitation work on a Landmark performing arts theater, or for retirement of the cost of improvements made after February 5, 1993, if:

1) The assistance is provided pursuant to a linkage agreement between the applicant and the owner of the Landmark performing arts theater satisfactory to the Director, in which such owner agrees to use such financial assistance to complete such rehabilitation and agrees that the applicant is entitled to all or a portion of the bonus floor area that may be allowed therefor e ;

2) The owner of the Landmark performing arts theater executes and records covenants enforceable by the City, agreeing to maintain the structure and the performing arts theater use, consistent with the Downtown Amenity Standards; and

3) Prior to the issuance of any building permit after the first building permit for the project using the bonus, and in any event before any permit for any construction activity other than excavation and shoring issued for that project, unless the rehabilitation work has then been completed, the applicant posts security for completion of that work, consistent with the Downtown Amenity Standards.

3. Ratios and limits(( . ))

a. Amenities may be used to gain floor area according to the applicable

ratios, and subject to the limits in Section 23.49.011 and in Table A for 23.49.013.

(( Table A for 23.49.013 Downtown Amenities ))

Table A for 23.49.013 Downtown Amenities
Amenity	Zone Location of Lots Eligible to Use Bonus													Bonus Ratio	Maximum square feet (SF) of floor area eligible for a bonus or maximum floor area gain
	DOC1	DOC2		DMC 340/290-400		DH2,DMC 125, DMC 160, DMC 85/65-150, and DMC 240/290-400		DRC		DMR		IDM
Hillside Terrace	Only eligible for bonus at locations specified on Map 1J of Chapter 23.49													5:1	6,000 SF
Urban Plaza	X		X		X									5:1	15,000 SF
Commercial Parcel Park	X		X		X		X						X	5:1	7,000 SF
Residential Parcel Park					X		X				X		X	5:1	12,000 SF
Green Street Parcel Park	Eligible for bonus only on lots abutting a designated green street													5:1	7,000 SF
Public Atrium	X		X		X									5:1	5,500 SF
Green Street Improvement	Eligible for bonus only on lots abutting a designated green street													5:1	No limit
Green Street Setback	Eligible for bonus only on lots abutting a designated green street that are not subject to property line street wall requirement													1:1	10 times the length of lot's green street frontage
Hillclimb Assist	Only eligible for bonus at locations specified on Map 1J of Chapter 23.49													Not applic-able	Maximum gain of 0.5 FAR
Shopping Corridor	Only eligible for bonus at locations specified on Map 1J of Chapter 23.49													5:1	7,200 SF
Transit Station Access	X		X		X		X		X		X			Not Applic-able	Maximum gain of 1.0 FAR
Public Restroom	X		X		X		X		X		X			7:1	No limit
Human Services	X		X		X		X		X		X			7:1	10,000 SF
Preservation of Landmark Theater	X		X		X									Variable; maxi-mum of 12:1	Maximum gain of 1.0 FAR

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Section 3. Section 23.49.014 of the Seattle Municipal Code, which Section was last amended by Ordinance 123589, is amended as follows:

23.49.014 Transfer of development rights

A. General (( S )) s tandards(( . ))

1. The following types of TDR may be transferred to the extent permitted in Table A for 23.49.014, subject to the limits and conditions in this Chapter 23.49:

a. Housing TDR;

b. DMC housing TDR;

c. Landmark housing TDR;

d. Landmark TDR;

e. Open space TDR; and

f. South Downtown Historic TDR.

2. In addition to transfers permitted under subsection 23.49.014.A.1, TDR may be transferred from any lot to another lot on the same block, as within-block TDR, to the extent permitted in Table A for 23.49.014, subject to the limits and conditions in this (( c )) C hapter 23.49 .

3. A lot's eligibility to be either a sending or receiving lot is regulated by Table A for 23.49.014.

4. Except as expressly permitted pursuant to this Chapter 23.49, development rights or potential floor area may not be transferred from one lot to another.

5. No permit after the first building permit, and in any event, no permit for any construction activity other than excavation and shoring or for occupancy of existing floor area by any use based upon TDR, will be issued for development that includes TDR until the applicant's possession of TDR is demonstrated according to rules promulgated by the Director to implement this (( s )) S ection 23.49.014 .

(( Table A for 23.49.014 ))

Table A for 23.49.014
	TDR Transferable Within-block	Types of TDR Transferable Within or Between Blocks
Zones1	Transfer from any lot within the same Downtown block	Housing TDR	DMC Housing TDR	Landmark TDR and Landmark Housing TDR	Open Space TDR	South Downtown Historic TDR
DOC1 and DOC2	S, R	S, R	X	S, R	S, R	R
DRC	S, R2	S, R2	X	S, R2	S, R2	R
DMC zones with maximum 10 FAR	S, R	S, R	S	S, R	S, R	R
DMC zones with maximum 7 FAR	S3	S, R	S, R	S, R	S, R	R
DMC 85' and DH2	X	S, R	X	S, R	S, R	R
DMC 65' and DMC 85/65-150	X	S	X	S	S	R
DMR	X	S, R4	X	S, R4	S, R4	R4
IDR	X	S	X	X	S	S
IDR/C	X	S	X	X	S, R5	S
IDM	X	S, R	X	X	S, R5	S, R
PSM	X	S	X	X	S5	S, R
S = Eligible sending lot. R = Eligible receiving lot. X = Not permitted. NOTES 1 Development rights may not be transferred to or from lots in the ((following zones:)) PMM((;)) or DH1 ((or DH2))zones. 2 Transfers to lots in a DRC zone are permitted only from lots that also are zoned DRC. 3 Transfers are permitted only from lots zoned DMC to lots zoned DOC1. 4 Transfers to lots in a DMR zone are permitted only from lots that also are zoned DMR except that transfer of TDR to a lot in a DMR zone located in South Downtown is permitted from any eligible sending lot in South Downtown. 5 Transfers of open space TDR to lots in South Downtown are permitted only from lots that are also located in South Downtown.

* * *

Section 4. Subsections B and E of Section 23.49.181 of the Seattle Municipal Code, which Section was last amended by Ordinance 123589, are amended as follows:

23.49.181 Bonus floor area for affordable housing in the PSM 85-120 zone

* * *

B. Permitting Conditions

1. Master Use Permit. The Master Use Permit application to establish any bonus floor area under this Section 23.49.181 shall include a calculation of the total amount of bonus floor area sought and shall identify the quantity and type of affordable housing to be provided to satisfy the conditions to such bonus floor area. The application shall include the proposed location of the affordable housing. If any of the affordable housing is proposed to be within the area defined on Map A for Section 23.49.180 where additional height is permitted, the application shall include the location of the affordable housing within that area and its distribution within the proposed building(s). If any of the affordable housing is not to be provided within the area defined on Map A for Section 23.49.180 where additional height is permitted, the application shall include the address, legal description, dimensions and ownership of the other lot(s), and the approval of the Director of Housing for the affordable housing to be provided on the other lot(s), pursuant to subsection 23.49.181.E.3. The Director shall, at the time of issuance of any Master Use Permit decision approving any bonus floor area, issue a Type I decision as to the amount of bonus floor area to be allowed and the conditions to such bonus floor area. A declaration signed by the applicant and any other owners of the lot(s) on which the project using the bonus floor area is to be built and any other owners , or persons with control, of the lot(s) where the affordable housing will be located, on a form approved by the Director, specifying the amount of bonus floor area, the legal descriptions of the lot where the bonus floor area will be used and each other lot where affordable housing will be located, and the conditions, must be executed and recorded as a condition to issuance of the Master Use Permit for a development to include bonus floor area. If a change in the total bonus floor area to be developed, or a change in the location of the affordable housing approved by the Director of Housing pursuant to subsection 23.49.181.E.3, results in adjustment to one or more conditions, the declaration and any related conditions of the Master Use Permit may be amended, with the written approval of the Director, as a Type I decision. In requesting amendment of a declaration under this subsection 23.49.181.B and any related conditions of the Master Use Permit, the applicant may elect, consistent with subsection 23.76.026.(( F )) G , that the provisions of this Section 23.49.181 as in effect on the date of the Director's action on that request, rather than any earlier date applicable under Section 23.76.026, apply for purposes of the amendment to the Master Use Permit.

2. First Building Permit.

a. Except as otherwise provided in this subsection 23.49.181.B.2.a, (( P )) p rior to issuance, and as a condition to issuance, of the first building permit for a structure using bonus floor area, the owner of each lot that will include the affordable housing for that bonus floor area shall execute and record an agreement in a form acceptable to the Director of Housing that shall commit to provide that affordable housing, and shall run with the land to bind successors. The applicant shall submit an acceptable agreement, fully signed, as part of the building permit application, and if there is any change in ownership or if the location at which any affordable housing is to be provided is modified pursuant to subsection 23.49.181.B.1 prior to the issuance of the building permit, the new owners or any other owners of the lot(s) where the affordable housing is to be provided, or both, as applicable, shall execute the agreement or an addendum, substitute or separate agreement, acceptable to the Director of Housing. This subsection 23.49.181.B.2.a does not apply with respect to bonus floor area that is based on an amount of affordable housing for which a certification by the Director of Housing is delivered pursuant to subsection 23.49.181.B.3.

b. If the affordable housing is to be located on any lot(s) not owned by the applicant, then the applicant shall demonstrate that the applicant is providing the affordable housing on the other lot(s) in connection with the applicant's project, as set forth below in this subsection 23.49.181.B.2.b. Prior to issuance, and as a condition to issuance, of the first building permit for a structure using bonus floor area, the applicant shall provide to the Director of Housing a copy of a signed and binding linkage agreement(( with the owner(s) of those lots )), acceptable to the Director of Housing, with the owner(s) or person(s) in control of those lots, pursuant to which only the applicant has the right to claim such housing for purposes of bonus development under this Section 23.49.181 or any other bonus or benefit under this Title 23, and shall demonstrate that the applicant has made a financial contribution to the affordable housing, or has promised such contribution in that linkage agreement and has provided to the City an irrevocable, unconditional letter of credit to ensure its payment, in form and content satisfactory to the Director of Housing, in either case in an amount determined by the Director of Housing to be, when reduced by the value of any expected benefits to be received for such contribution other than the bonus development, approximately equal to the subsidy gap for construction in South Downtown of at least the minimum amount of affordable housing determined under this Section 23.49.181 for the amount of bonus floor area sought by the applicant. The Director of Housing may require that one or more parties to a linkage agreement enter into an agreement with the City to establish performance criteria to be met in the development of the affordable housing, to provide for control of the financial contribution from the applicant to ensure its use for the affordable housing, and to provide for its use for alternative affordable housing if performance criteria are not met. The Director of Finance is authorized to establish any funds or accounts that the Director of Housing may deem necessary for the deposit of funds under any agreement authorized in this subsection 23.49.181.B.2.b., and to make disbursements from such funds or accounts as directed by the Director of Housing, but the monies in such funds or accounts shall not become property of the City unless applied against obligations owing to the City, and the expenditure of those monies on any project or contract shall not cause it to be treated as a public work or contract of the City.

3. Effect of Certification by Director of Housing. If the Director of Housing certifies to the Director that either (a) the applicant has provided the City with (i) a satisfactory linkage agreement; (ii) evidence of a sufficient financial contribution, a letter of credit, or other sufficient security pursuant to subsection 23.49.181.B.2.b; and (iii) such other agreements as the Director of Housing requires pursuant to subsection 23.49.181.B.2.b, all sufficient for purposes of providing a specified amount of affordable housing consistent with this Section 23.49.181; or (b) there have been recorded one or more agreements or instruments satisfactory to the Director of Housing providing for occupancy and affordability restrictions on affordable housing with the minimum floor area determined under this Section 23.49.181 for the amount of bonus floor area sought by the applicant, all affordable housing has been completed, and the affordable housing either is on a different lot from the bonus floor area or is located in one or more condominium units separate from the bonus floor area under condominium documents acceptable to the Director of Housing; then any failure of the affordable housing to be completed or to satisfy the requirements of subsection 23.49.181.E shall not affect the right to maintain or occupy the bonus floor area and shall not cause the applicant or owner of the lot with the bonus floor area to be in violation of this Title 23. If all conditions to the certification in clause (a)(i) and (a)(iii) of this subsection 23.49.181.B.3, but not clause (a)(ii), are satisfied, the Director of Housing may deposit a certification with an escrow agent, with irrevocable instructions to date and deliver the certification when the escrow agent holds the necessary funds for delivery to an appropriate account as a contribution to the affordable housing, and delivery of the certification by the escrow agent shall then have the same effect as certification by the Director of Housing on the date of that delivery.

***

D. Defined Terms. For purposes of this Section 23.49.181:

1. "Affordable housing" means a unit or units of low-income housing provided as a condition to bonus floor area.

2. "Base FAR" or "base floor area ratio" means a FAR of 4.

3. "Bonus floor area" means all chargeable floor area allowed in addition to the base FAR.

4. "Income-eligible households" means:

a. In the case of rental housing, households with incomes no higher than 80 percent of median income as defined in Section 23.84A.025.

b. In the case of owner occupancy housing units, households with incomes no higher than the median income as defined in Section 23.84A.025.

5. "Low-income housing" means housing that serves income-eligible households as determined in subsection 23.49.181.E.

6. "Net bonus floor area" means gross square footage of bonus floor area, multiplied by an efficiency factor of 80 percent.

E. Affordable Housing

1. Amount. An applicant using bonus floor area shall provide an amount of net rentable floor area of low-income housing, applicable to units for sale or rent, equal to at least 17.5 percent of the net bonus floor area obtained. For purposes of this subsection 23.49.181.E,"net rentable floor area" is equal to 80% of the gross floor area of the low-income housing.

2. Serving income-eligible households. For the purposes of this Section

23.49.181, a housing unit serves income-eligible households only if either:

a. For a period of 50 years beginning upon the issuance of a final certificate of occupancy by the Department of Planning and Development for (( a structure using ))the (( bonus floor area for which that ))affordable housing(( is provided )), the housing is used as rental housing solely for income-eligible households at rent limited so that annual housing costs, including rent and basic utilities, do not exceed 30 percent of 80 percent of median income, and the housing unit and the structure in which it is located are maintained in decent and habitable condition, including basic appliances in the housing unit; or

b. The unit is sold for owner-occupancy to an income-eligible household at an initial sale price limited so that the annual housing costs, including mortgage principal and interest, real estate taxes, insurance, plus homeowner dues if applicable, are not expected to exceed 35 percent of median income, according to a calculation based on reasonable assumptions and approved by the Director of Housing, and the unit is subject to a recorded instrument satisfactory to the Director of Housing with a term extending until 50 years after the issuance of a final certificate of occupancy by the Department of Planning and Development for the structure using the bonus floor area for which that affordable housing is provided, providing for sales prices on any resale consistent with affordability on the same basis as the initial sale, allowing resales only to income-eligible households, and requiring that upon any resale, the housing unit be in decent and habitable condition, including adequate basic appliances in the housing unit.

3. Location, size and other requirements. Affordable housing may be provided within the area defined on Map A for (( Section ))23.49.180 where additional height is permitted. Alternatively, affordable housing may be provided on one or more different lots within South Downtown, subject to approval by the Director of Housing under the criteria in this subsection 23.49.181.E and to the conditions in subsection 23.49.181.B.2. Approval requires a determination by the Director of Housing that the affordable housing will

(a) provide a public benefit; and

(b) be more affordable than market rents

or sale prices, as applicable, for housing in South Downtown. The affordable housing shall be provided in a range of unit sizes consistent with RCW 36.70A.540 and comply with all requirements of RCW 36.70A.540.

4. Time of completion. Unless affordable housing is to be provided on a lot other than that of the project using the bonus and the Director of Housing has made all approvals described in subsection s 23.49.181.B.2 and 23.49.181.E.3, the affordable housing shall be completed and ready for occupancy at or before the time when a certificate of occupancy is issued for any bonus floor area that is based on the affordable housing and as a condition to any right of the applicant to such a certificate of occupancy.

5. No (( S )) s ubsidies for affordable housing; exceptions.

a. In general, and except as may be otherwise required by applicable federal or state law, no bonus floor area may be earned by providing affordable housing if:

1) Any person is receiving or will receive with respect to the housing any charitable contributions or public subsidies for housing development or operation, including, but not limited to, tax exempt bond financing, lowincome housing tax credits, federal loans or grants, City of Seattle housing loans or grants, county housing funds, and State of Washington housing funds; or

2) The housing is or would be, independent of the requirements for the bonus floor area, subject to any restrictions on the income of occupants, rents or sale prices.

b. As exceptions to the general rule in subsection 23.49.181.E.5.a:

1) All affordable housing provided as a condition to bonus floor area within the area defined on Map A for (( Section ))23.49.180 where additional height is permitted may consist wholly or in part of the same units used to satisfy terms under which the lot or a portion thereof was transferred by a public body, and (( up to seventy )) any units of affordable housing provided as a condition to bonus floor area on a lot outside the area defined on Map A for (( Section ))23.49.180 where additional height is permitted, may consist wholly or in part of the same units used to satisfy terms under which the lot or a portion thereof was transferred by a public body;

2) The improvements on the lot may qualify for, and affordable housing provided as a condition to bonus floor area may consist wholly or in part of the same units used to satisfy conditions of, property tax exemptions pursuant to Chapter 5.73(( SMC )); and

3) The prohibition on public subsidies for affordable housing does not include Internal Revenue Code Section 45D, New Markets Tax Credits.

c. The Director of Housing may require, as a condition of any bonus floor area, that the owner of the lot upon which the affordable housing is located agree not to seek or accept any subsidies, other than as described in subsection 23.49.181.E.5.b, related to housing. The Director of Housing may require that such agreement provide for the payment to the City, for deposit in an appropriate sub-fund or account, of the value of any subsidies received in excess of any amounts allowed by such agreement.

d. As an exception to the restriction on subsidies, the Director of Housing may allow the building or buildings in which the affordable housing is located to be financed in part with subsidies based on determinations that:

1) the total amount of affordable housing is at least 300 net residential square feet greater than the minimum amount of affordable housing that would be needed to satisfy the conditions of this Section 23.49.181;

2) the public benefit of the affordable housing net of those subsidies, as measured through an economic analysis, exceeds the public benefit from the minimum amount of affordable housing; and

3) the subsidies being allowed would not be sufficient to leverage private funds for production of the affordable housing, under restrictions required in this Section 23.49.181, without additional City subsidy.

6. Agreements and approvals. The Director of Housing is authorized to accept and execute agreements and instruments to implement this Section 23.49.181. Except with respect to bonus floor area based on an amount of affordable housing for which a certification by the Director of Housing is delivered pursuant to subsection 23.49.181.B.3, (( I )) i ssuance of the Master Use Permit, building permit, or certificate of occupancy for the project using the bonus floor area may be conditioned on satisfactory agreements and instruments signed by applicants and other owners. An applicant or prospective applicant may request, and the Director of Housing may provide, a determination that a linkage agreement or security arrangement, or both, would satisfy specific provisions of this Section 23.49.181, whether or not an applicant has proposed a specific development to use bonus floor area, but no such approval or agreement shall affect the determination, under Chapter 23.76 or other applicable law, of the date as of which any development regulations apply to a permit application.

7. Reports and fees. An applicant for bonus floor area shall pay a review fee and (( T )) t he housing owner shall provide annual reports and pay an annual monitoring fee to the Office of Housing for each affordable housing unit, as specified under Chapter 22.900G.

* * *

Section 5. Any act pursuant to the authority of this ordinance, following passage by the City Council but prior to the effective date of the ordinance, is ratified and confirmed.

Section 6. This ordinance shall take effect and be in force 30 days after its approval by the Mayor, but if not approved and returned by the Mayor within ten days after presentation, it shall take effect as provided by Seattle Municipal Code Section 1.04.020.

Passed by the City Council the ____ day of ________________________, 2012, and signed by me in open session in authentication of its passage this

_____ day of ___________________, 2012.

_________________________________

President __________of the City Council

Approved by me this ____ day of _____________________, 2012.

_________________________________

Michael McGinn, Mayor

Filed by me this ____ day of __________________________, 2012.

____________________________________

Monica Martinez Simmons, City Clerk

(Seal)

Dennis Meier; Miriam Roskin DPD Downtown Code DH2 and PSM 85-120 Amendments ORD v10 November 8, 2012 Version #10