23.58A.024

A. Scope; general rule. This Section 23.58A.024 applies to bonus non-residential floor area for affordable housing and child care allowed on lots for which applicable sections of this Title 23 expressly refer to this Chapter 23.58A . To obtain bonus non-residential floor area for affordable housing and child care, the applicant may use the performance option, the payment option, or a combination of these options, in accordance with this Section 23.58A.024 and subject to the provisions of the zone. B. Performance option for housing 1. Amount of affordable housing. An applicant using the housing performance option shall provide affordable housing units with total net unit area, measured according to subsection 23.86.007.B, at least equal to 15.6 percent of gross bonus non-residential floor area achieved according to this subsection 23.58A.024.B. 2. Agreement. The City and the affordable housing owner shall enter into an agreement specifying the affordable housing requirements under this subsection 23.58A.024.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 non-residential floor area and before any permit for any construction activity other than excavation and shoring for the development 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.024 and such structure is acquired to provide City-funded low-income housing, the agreement(s) according to this subsection 23.58A.024.B.2 and subsection 23.58A.024.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, or if no certificate of occupancy is required the date of the final building permit inspection, for 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 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, for a minimum period of 50 years. 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.024 . 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.024 . 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. 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.024 . 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.024 . 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 non-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 chargeable floor area in the development that includes the bonus non-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 nonresidential floor area, it may be provided off-site according to the following standards: a. If the development that includes bonus nonresidential floor area is within the South Lake Union Regional Center, the off-site affordable housing must be located within the South Lake Union Regional Center or within one mile of the development that includes the bonus nonresidential floor area and no more than 0.25 mile from the South Lake Union Regional Center boundary. If the development that includes bonus nonresidential floor area is outside of 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 and as a condition of issuance of any permit after the first building permit for the development that includes bonus nonresidential floor area and before any permit for construction activity other than excavation and shoring 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.024.D, 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.024.B shall not affect the right to maintain or occupy the bonus nonresidential 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.024.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.024 , all affordable housing has been completed, and the affordable housing is on a different lot from the bonus nonresidential floor area or is in one or more condominium units separate from the bonus nonresidential floor area under condominium documents acceptable to the Director of Housing. d. Unless and until the Director of Housing certifies as set forth in subsection 23.58A.024.B.8.c, it shall be a continuing permit condition, whether or not expressly stated, for each development obtaining bonus nonresidential floor area based on the provision of housing to which this Section 23.58A.024 applies, that the affordable housing shall be maintained in compliance with the terms of this Section 23.58A.024 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.024 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.024 shall pay housing review fees according to Section 22.900G.015 . C. Performance option for child care 1. For each square foot of nonresidential bonus floor area allowed under this Section 23.58A.024 , in addition to providing housing pursuant to subsection 23.58A.024.B or an alternative cash contribution pursuant to subsection 23.58A.024.D, an applicant using the child care performance option shall provide fully improved child care facility space sufficient for 0.000127 of a child care slot. The minimum interior space in the child care facility for each child care slot shall comply with all applicable state and local regulations governing the operation of licensed childcare providers. Child care facility space shall be deemed provided only if the applicant causes the space to be newly constructed or newly placed in child care use after the submission of a permit application for the development intended to use the bonus floor area, except as provided in subsection 23.58A.024.C.3.f. If any contribution or subsidy in any form is made by any public entity to the acquisition, development, financing or improvement of any child care facility, then any portion of the space in such facility determined by the Human Services Director to be attributable to such contribution or subsidy shall not be considered as provided by any applicant other than that public entity. 2. Child care space shall be provided on the same lot as the development using the bonus nonresidential floor area, or on another lot within a distance of 0.25 mile of the development using the bonus nonresidential floor area. 3. Child care space shall be contained in a child care facility satisfying the following standards: a. The child care facility and accessory exterior space shall be approved for licensing by the State of Washington Department of Early Learning and any other applicable state or local governmental agencies responsible for the regulation of licensed child care providers. b. At least 20 percent of the number of child care slots for which space is provided as a condition of bonus nonresidential floor area shall be reserved for, and affordable to, families with annual incomes at or below the U.S. Department of Housing and Urban Development Low Income Standard for Section 8 Housing based on family size or, if such standard shall no longer be published, a standard established by the Human Services Director based generally on 80 percent of the median family income of the Metropolitan Statistical Area, or division thereof, that includes Seattle, adjusted for family size. Child care slots shall be deemed to meet these conditions if they serve, and are limited to, 1) children receiving child care subsidy from the City of Seattle, King County or State Department of Early Learning, or 2) children whose families have annual incomes no higher than the above standard who are charged according to a sliding fee scale such that the fees paid by any family do not exceed the amount it would be charged, exclusive of subsidy, if the family were enrolled in the City of Seattle Child Care Assistance Program. c. Child care space provided to satisfy bonus conditions shall be dedicated to child care use, consistent with the terms of this Section 23.58A.024 , for 20 years. The dedication shall be established by a recorded covenant, running with the land, and enforceable by the City, signed by the owner of the lot where the child care facility is located, or the long-term lessee of the child care space under terms acceptable to the Human Services Director, and by the owner of the lot where the bonus floor area is used, if different from the lot of the child care facility. The child care facility shall be maintained in operation, with adequate staffing, at least 11 hours per day, five days per week, and 50 weeks per year. d. Space for which a bonus is or has been allowed under any other section of this Title 23 or under former Title 24 shall not be eligible to satisfy the conditions of this Section 23.58A.024 . e. Unless the applicant is the owner of the child care space and is a duly licensed and experienced child care provider approved by the Human Services Director, the applicant shall provide to the Human Services Director a signed agreement, acceptable to the Human Services Director, with a duly licensed child care provider, under which the child care provider agrees to operate the child care facility consistent with the terms of this Section 23.58A.024 and of the recorded covenant, and to provide reports and documentation to the City to demonstrate such compliance. f. One child care facility may fulfill the conditions for a bonus for more than one development if it includes sufficient space, and provides sufficient slots affordable to limited income families, to satisfy the conditions for each such development without any space or child care slot being counted toward the conditions for more than one development. If the child care facility is located on the same lot as one of the developments using the bonus, then the owner of that lot shall be responsible for maintaining compliance with all the requirements applicable to the child care facility; otherwise responsibility for such requirements shall be allocated by agreement in such manner as the Human Services Director may approve. If a child care facility developed to qualify for bonus floor area by one applicant includes space exceeding the amount necessary for the bonus floor area used by that applicant, then to the extent that the voluntary agreement accepted by the Human Services Director from that applicant so provides, such excess space may be deemed provided by the applicant for a later development pursuant to a new voluntary agreement signed by both such applicants and by any other owner of the child care facility, and a modification of the recorded covenant, each in form and substance acceptable to the Human Services Director. 4. The Human Services Director shall review the design and proposed management plan for any child care facility proposed to qualify for bonus floor area to determine whether it will comply with the terms of this Section 23.58A.024 . The allowance of bonus floor area is conditioned upon approval of the design and proposed management plan by the Human Services Director. The child care facility shall be constructed consistent with the design approved by the Human Services Director and shall be operated for the minimum 20 year term consistent with the management plan approved by the Human Services Director, in each case with only such modifications as shall be approved by the Human Services Director. If the proposed management plan includes provisions for payment of rent or occupancy costs by the provider, the management plan shall include a detailed operating budget, staffing ratios, and other information requested by the Human Services Director to assess whether the child care facility may be economically feasible and able to deliver quality services. 5. The Human Services Director is authorized to accept a voluntary agreement for the provision of a child care facility to satisfy bonus conditions and related agreements and instruments consistent with this Section 23.58A.024 . The voluntary agreement may provide, in case a child care facility is not maintained in continuous operation consistent with this subsection 23.58A.024.C at any time within the minimum 20 year period, for the City's right to receive payment of a prorated amount of the alternative cash contribution that then would be applicable to a new development seeking bonus nonresidential floor area, with any adjustments for changes in costs that the Human Services Director may deem appropriate. The Human Services Director may require security or evidence of adequate financial responsibility, or both, as a condition to acceptance of an agreement under this subsection 23.58A.024.C. Review and approval of any proposed facilities, plans or other matters by the Human Services Director is in the interest of the City and the general public and not for the particular benefit of any persons or class, and shall not constitute any assurance to any person that any facility or its operations will satisfy any health, safety or other standards or criteria. D. Payment option 1. Amount of payments. The amount of the in lieu payment made at the time specified in subsection 23.58A.024.D.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 no Master Use Permit is required, on the filing date for the valid and fully complete permit application. a. In lieu of all or part of the performance option for affordable housing, an applicant may provide a cash contribution to the City of $33.31 per square foot of gross bonus nonresidential floor area, if the Director of Housing determines that the payment achieves a result equal to or better than providing the low-income 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. In lieu of all or part of the performance option for child care, the applicant may provide a cash contribution to the City of $5.76 per square foot of gross bonus nonresidential floor area to be used for child care facilities, to be administered by the Human Services Department. Cash payment amounts shall automatically adjust according to subsection 23.58A.024.D.1.b. b. The in lieu cash contribution amounts for affordable housing and child care 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. 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 that includes bonus nonresidential floor area and before any permit for any construction activity other than excavation and shoring is issued. 3. Deposit and use of payments. Cash payments in lieu of affordable housing and child care facilities shall be deposited in special accounts established solely to support the development of housing for income-eligible households and child care facilities. Earnings on balances in the special accounts shall accrue to those accounts. a. The Director of Housing shall use cash payments in lieu of affordable housing 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 the housing for income-eligible households, not to exceed ten percent of the payments into the special accounts. Housing for income-eligible households funded wholly or in part with cash payments shall be located within the Seattle city limits. b. The Director of Human Services shall use cash payments in lieu of child care and any earnings thereon to support the development or expansion of child care facilities within 0.5 mile of the development using the bonus nonresidential floor area, or in another location, consistent with an applicable voluntary agreement, where the child care facility addresses the additional need created by that development. Child care facilities supported with cash payments may be publicly or privately owned, and if privately owned shall be committed to long-term use as child care under such agreements or instruments as the Director of Human Services deems appropriate. The Director of Human Services shall require that child care facilities supported with cash payments and their operators satisfy applicable licensing requirements, and may require compliance with other provisions applicable to child care facilities provided under the performance option, with such modifications as the Director of Human Services deems appropriate. 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.024 . (Ord. 127375 , § 92, 2025; Ord. 126855 , § 44, 2023; Ord. 124919 , § 146, 2015; Ord. 124378 , § 62, 2013; Ord. 124172, § 58, 2013; Ord. 123589, § 74, 2011.)