23.58A.014

A. Scope; general rule. This Section 23.58A.014 applies to bonus residential floor area for affordable housing allowed on lots for which applicable sections of this Title 23 expressly refer to this Chapter 23.58A . To obtain bonus residential floor area for affordable housing, the applicant may use the performance option, the payment option, or a combination of these options, in accordance with this Section 23.58A.014 and subject to the provisions of the zone. However, where the maximum allowable height under the applicable provisions of the zone is 85 feet or less, the applicant may only use the performance option. B. Performance option 1. Amount of affordable housing. An applicant using the performance option shall provide affordable housing units with total net unit area measured according to subsection 23.86.007.B at least equal to the greatest of: a. 14 percent of the gross bonus residential floor area achieved according to this subsection 23.58A.014.B; or b. 300 square feet; or c. Any minimum floor area specified in the provisions of the zone. The percentage of gross bonus residential floor area obtained through the performance option to be provided as affordable housing may be reduced by the Council below 14 percent of the gross bonus residential floor area to no less than 12 percent of the gross bonus residential floor area as a Type V decision on an official land use map amendment or text amendment when the Council determines that the reduction is needed to accomplish Comprehensive Plan goals and policies or to reflect economic conditions of the area. Applicants may provide affordable housing as part of the development that includes extra floor area, or by providing or contributing to affordable housing at another location, subject to requirements in subsection 23.58A.014.B.8 and approval in writing by the Director of Housing prior to issuance of any permit after the first building permit for the development that includes the bonus residential floor area and before any permit for any construction activity other than excavation and shoring for the development that includes the bonus residential floor area is issued. 2. Agreement. The City and the affordable housing owner shall enter into an agreement specifying the affordable housing requirements under this subsection 23.58A.014.B. This agreement shall be executed and recorded prior to issuance and as a condition to issuance of any permit after the first building permit for the development that includes the bonus residential floor area and before any permit for any construction activity other than excavation and shoring for the development that includes the bonus residential floor area is issued. If the first building permit is issued for the structural frame for the structure that includes affordable housing according to this Section 23.58A.014 and such structure is acquired to provide City-funded low-income housing, the agreement(s) according to this subsection 23.58A.014.B.2 and subsection 23.58A.014.B.6.b may be released at the sole discretion of the Director of Housing. 3. Duration. Affordable housing shall serve only income-eligible households for a minimum period of 50 years from the date when a certificate of occupancy is issued for the structure that includes the affordable housing. 4. Unit size and distribution. Affordable housing shall be provided in a range of sizes comparable to those units that are available to other residents. To the extent practicable, the affordable housing units must be in the same proportion as total units in the development in terms of size and configuration. The affordable housing units shall generally be distributed throughout the development and have substantially the same functionality as the other units in the development. 5. Additional standards for rental housing a. Monthly rent, including basic utilities, shall not exceed 30 percent of the applicable income limit for the affordable housing unit, all as determined by the Director of Housing. b. Periodically as may be required by the Director of Housing, but no less than annually, the owner of the affordable housing shall submit to the Office of Housing a written report demonstrating compliance with and housing outcomes of this Section 23.58A.014 . The report shall include required information and supporting documentation, verified upon the owner's oath or affirmation and in a form prescribed by the Office of Housing. The Director of Housing is authorized to assess a late fee of $50 per day, which shall accrue until the report is submitted, starting 14 days from the date of the Office of Housing's notice that the report is overdue. c. The owner of the affordable housing shall pay the Office of Housing an annual fee of $190 per affordable housing unit for the purpose of monitoring compliance according to this Section 23.58A.014 . The fee shall automatically adjust annually on March 1, starting in 2024, by an amount in proportion to the increase, if any, for January 1 through December 31 of the prior calendar year, in the Consumer Price Index, All Urban Consumers, Seattle-Tacoma-Bellevue, WA, All Items (1982-1984=100), as determined by the U.S. Department of Labor, Bureau of Labor Statistics, or successor index, unless the Director of Housing determines that a lower fee covers the cost of monitoring compliance. 6. Additional standards for ownership housing a. Initial and resale prices for the affordable housing unit shall be restricted to an amount determined by the Director of Housing to be affordable to an income-eligible household. The Office of Housing will establish by rule the formula for calculating maximum affordable prices for initial sales and resales to allow modest growth in homeowner equity while maintaining long-term affordability for income-eligible buyers. b. The affordable housing unit shall be subject to recorded instruments satisfactory to the Director of Housing providing for limits on sale and resale prices according to Section 23.58A.004 for a minimum period of 50 years. c. Periodically as may be required by the Director of Housing, but no less than annually, the applicant or third-party stewardship entity, as applicable, shall submit to the Office of Housing a written report demonstrating compliance with and housing outcomes of this Section 23.58A.014 . The report shall include required information and supporting documentation, verified upon the owner's oath or affirmation and in a form prescribed by the Office of Housing. The Director of Housing is authorized to assess a late fee of $50 per day, which shall accrue until the report is submitted, starting 14 days from the date of the Office of Housing's notice that the report is overdue. d. The owner of each ownership affordable housing unit shall pay to the Office of Housing or third-party stewardship entity, as applicable, an annual fee payable in 12 equal payments for the purpose of monitoring compliance with this Section 23.58A.014 . The fee shall be established by the Director of Housing by rule. 7. Additional standards for on-site performance. If the affordable housing is provided within the development that includes the bonus residential floor area, the affordable housing shall be completed and ready for occupancy at or before the time when a certificate of occupancy is issued for any other units in the development that includes the bonus residential floor area, and as a condition to any right of the applicant to such a certificate of occupancy. 8. Additional standards for off-site performance. If the affordable housing is not provided within the development that includes the bonus residential floor area, it may be provided off-site according to the following standards: a. Off-site affordable housing must be provided within the South Lake Union Regional Center if the development that includes bonus residential floor area is within the South Lake Union Regional Center. If the development that includes bonus residential floor area is outside the South Lake Union Regional Center, the off-site affordable housing must be in Seattle city limits, in priority order, (1) within the same regional center or urban center as the development, (2) within one mile of the development, (3) within 0.5 mile of a light rail or bus rapid transit station, or (4) within 0.25 mile of a bus or streetcar stop. b. The applicant shall provide to the City an irrevocable letter of credit, or other sufficient security approved by the Director of Housing, prior to issuance and as a condition of issuance of any permit after the first building permit for the development that includes the bonus residential floor area and before any permit for any construction activity other than for excavation and shoring for the development is issued, unless completion of the affordable housing has been documented to the satisfaction of the Director of Housing and the affordable housing is subject to recorded restrictions satisfactory to the Director of Housing. The letter of credit or other security shall be in an amount equal to the payment option amount calculated according to provisions in subsection 23.58A.014.C, plus an amount equal to interest on such payment. The Director of Housing is authorized to adopt, by rule, terms and conditions of such security including the amount of security and rate of annual interest, conditions on which the City shall have a right to draw on the letter of credit or other security, and terms should the City become entitled to realize on any such security. c. Any failure of the affordable housing to satisfy the requirements of this subsection 23.58A.014.B shall not affect the right to maintain or occupy the bonus residential floor area if the Director of Housing certifies to the Director that either: 1) The applicant has provided the City with a letter of credit or other sufficient security pursuant to subsection 23.58A.014.B.8.b; or 2) 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 23.58A.014 , all affordable housing has been completed, and the affordable housing is on a different lot from the bonus residential floor area or is in one or more condominium units separate from the bonus residential floor area under condominium documents acceptable to the Director of Housing. d. Unless and until the Director of Housing shall certify as set forth in subsection 23.58A.014.B.8.c, it shall be a continuing permit condition, whether or not expressly stated, for each development obtaining bonus residential floor area based on the provision of housing to which this Section 23.58A.014 applies, that the affordable housing shall be maintained in compliance with the terms of this Section 23.58A.014 and any applicable provisions of the zone, as documented to the satisfaction of the Director of Housing. 9. Affordable housing; no other restrictions. Affordable housing units provided according to this Section 23.58A.014 and restricted units provided for any other reason, including but not limited to a property tax exemption or loans and grants, must be different units. 10. The applicant for a project that includes bonus floor area according to this Section 23.58A.014 shall pay housing review fees according to Section 22.900G.015 . C. Payment option. The payment option is available only where the maximum height for residential use under the provisions of the zone is more than 85 feet and only if the Director determines that the payment achieves a result equal to or better than providing the affordable housing on-site and the payment does not exceed the approximate cost of developing the same number and quality of housing units that would otherwise be developed. The amount of the in-lieu payment made at the time specified in subsection 23.58A.014.C.2 shall be based on the payment amount in effect on the vesting date for the Master Use Permit under Section 23.76.026 or, if a Master Use Permit is not required, on the filing date for the valid and fully complete permit application. 1. Amount of payments a. In lieu of all or part of the performance option, an applicant may pay to the City $29.15 per square foot of gross bonus residential floor area. Cash payment amounts shall automatically adjust according to subsection 23.58A.014.C.1.b. b. The in-lieu payment amount in subsection 23.58A.014.C.1.a shall automatically adjust annually on March 1, starting in 2024, by an amount in proportion to the increase, if any, for January 1 through December 31 of the prior calendar year, in the Consumer Price Index, All Urban Consumers, Seattle-Tacoma-Bellevue, WA, All Items (1982-84=100), as determined by the U.S. Department of Labor, Bureau of Labor Statistics, or successor index. 2. Timing of payments. Cash payments shall be made prior to issuance and as a condition to issuance of any permit after the first building permit for a development and before any permit for any construction activity other than excavation and shoring is issued, unless the applicant elects in writing to defer payment. If the applicant elects to defer payment, then the issuance of any certificate of occupancy for the development shall be conditioned upon payment of the full amount of the cash payment determined under this Section 23.58A.014 , plus an inflation adjustment equal to that amount multiplied by the increase, if any, in the Consumer Price Index, All Urban Consumers, Seattle-Tacoma-Bellevue, WA, All Items (1982-84=100), from the most recent month for which data are available on or before the vesting date for the Master Use Permit under Section 23.76.206 or, if a Master Use Permit is not required, the filing date for the valid and fully complete permit application, to the most recent month for which data are available at the time of payment. If the index specified in this subsection 23.58A.014.C.2 is not available for any reason, the Director shall select a substitute cost of living index. In no case shall the inflation adjustment be less than zero. 3. Deposit and use of payments. Cash payments in lieu of affordable housing shall be deposited in a special account established solely to support the development of housing for income-eligible households as defined in this Chapter 23.58A . Earnings on balances in the special account shall accrue to that account. The Director of Housing shall use cash payments and any earnings thereon to support the development of housing for income-eligible households in any manner now or hereafter permitted by RCW 36.70A.540. Uses of funds may include the City's costs to administer housing for income-eligible households, not to exceed ten percent of the payments into the special account. Housing for income-eligible households funded wholly or in part with cash payments shall be located within the Seattle city limits. D. If a Master Use Permit application includes establishment of bonus residential floor area and the proposed development entails demolition of a building containing four or more dwelling units occupied as rental housing within 18 months prior to that Master Use Permit application, then the amount of affordable housing to be provided under subsection 23.58A.014.B.1 is increased by the number of units within the building or buildings to be demolished that were rented to tenants who received or are eligible to receive a tenant relocation assistance payment under Chapter 22.210 . The additional affordable housing is subject to the following requirements: 1. For the first 50 years of operation, the affordable housing shall be affordable to households with incomes at or below 50 percent of median income as defined by Section 23.84A.025 . 2. A cash payment in lieu of the additional affordable housing is not permitted. 3. If the additional affordable housing is not being provided in the development using the bonus residential floor area, the additional affordable housing units shall be completed, including issuance of a certificate of occupancy, within three years from the time when a certificate of occupancy is issued for any units in the development seeking bonus residential floor area, except that the Director may extend the time for completion if the Director finds that: a. The failure to complete the affordable housing is due to circumstances beyond the applicant's control; b. The applicant has been acting and may reasonably be expected to continue to act in good faith and with due diligence; and c. The affordable housing will be completed within a reasonable time. E. The Director and the Director of Housing are authorized jointly to adopt rules to interpret and implement the provisions of this Section 23.58A.014 . (Ord. 127375 , § 91, 2025; Ord. 126855 , § 43, 2023; Ord. 125791 , § 89, 2019; Ord. 124919 , § 145, 2015; Ord. 124172, § 53, 2013; Ord. 123770, § 9, 2011; Ord. No. 123209, § 60, 2009; Ord. 122882, § 1, 2008.)