18A.65.030 General Provisions.
A. Duration of Affordability. Affordable housing units created as a result of the provisions of this Chapter shall remain affordable for 50 years. The duration of affordability may be reduced consistent with RCW 36.70A.540. A recorded agreement, lien and covenant running with the land, binding all the assigns, heirs and successors of the applicant shall secure the affordability requirements. The recorded covenant must provide that if the property is converted to a use other than for low-income affordable housing as defined under this Chapter within the required affordability duration, the property owner must pay the applicable impact fees in effect at the time of conversion.
B. Affordable Housing Incentives Program Agreement. A proposed project that incorporates any of the incentives in this Chapter shall not be issued permits or receive plat or land use approvals until the applicant has submitted a signed Affordable Housing Incentives Program Agreement to Pierce County Human Services and Planning and Public Works. The agreement shall include, but not be limited to:
1. Identification of all the incentives, monetary and non-financial, that the project proposes to incorporate;
2. Identification of the minimum number of affordable housing units required to be provided in the project to qualify for use of Chapter 18A.65 PCC;
3. Binding language that protects the County's interests in the event that a developer obtains affordable housing incentives through the platting or building phases but fails to provide low-income affordable housing;
4. Language that requires documentation of recording the required low-income affordability provisions prior to the approval of a final plat or multi-family building permit;
5. Language that recognizes the need to possibly modify the agreement if the submitted project requires alternation through the review and approval process; and
6. Language that stipulates the conditions of a breach of contract action if the applicant fails to provide the required number of affordable housing units as stipulated under the agreement. If a breach of contract is determined, the County shall place a lien against all properties associated with the project.
C. The affordable housing units shall be rented, sold, or resold to income-qualified households or a nonprofit organization through the end of the required affordability duration.
D. Construction of Affordable Housing Units. For mixed-income developments constructed in phases exceeding 12 months, a proportional amount of affordable housing units must be completed at or prior to the completion of related market rate housing units.
E. Location/Appearance of Affordable Housing Units. When affordable housing units constructed under the provisions of this Chapter are intermixed with market rate housing, the general exterior design and appearance of the affordable housing units shall be compatible with the market rate housing units within the project.
F. Monitoring Continued Affordability. The Pierce County Human Services Department shall be the responsible party to monitor the continued affordability of both rental and owner-occupied housing units.
G. Resale of Affordable Homeownership Units. Affordable Housing units provided for under this Chapter may be sold or resold only to eligible low-income households or a nonprofit organization through the end of the required affordability duration. For Affordable Housing units to be sold or resold at market rate prior to the end of the required affordability duration, the benefit provided through this Chapter shall be accounted for as follows:
1. Payment in-lieu shall be made to Pierce County as reasonable compensation for the value of all incentives originally granted.
a. If only financial incentives were granted, as provided in Table 18A.65.040, the waived fees reasonably attributable to the converted unit(s) shall be repaid to the County by the seller upon final sale at fee levels in place at time of sale.
b. If only regulatory incentives were granted, as provided in Table 18A.65.050, 20 percent of net proceeds from the sale shall be paid to the County.
c. If both financial and regulatory incentives were granted, payment shall be the greater of either amount specified in PCC 18A.65.030.G.1a. and 18A.65.030 G.1.b.
d. No payment whatsoever shall be required if no net proceeds result from the sale.
2. The County shall dedicate all such conversion payments towards future incentives offered through this Chapter.
3. A recorded agreement, lien, and covenant running with the land, binding all the assigns, heirs and successors of the applicant shall secure the conversion requirements in PCC 18A.65.030 G.
H. The guidelines for affordable housing, including the establishment of rental levels and housing prices, will be established and annually updated by the Department of Human Services through the consolidated housing and community development plan. The sale price of a housing unit shall be based on the affordable price point for the year the housing unit is offered for sale.
I. Annual Report. An annual report shall be forwarded to the Pierce County Council prior to the budgeting process that provides details on all the projects that utilized the provisions of this Chapter. The report shall include, but is not limited to, the total number of housing units/lots constructed and the number of affordable units.
J. Participation Measure. The Pierce County Planning and Public Works Department (PPW) and Human Services Department shall review the effectiveness of this Chapter as part of the periodic Comprehensive Plan update and may recommend modifications to the incentives, eligibility thresholds, fee waiver distribution and applicability to increase participation and achieve affordable housing goals.