20.915.080 Impact Fee Exemptions, Reductions, and Waivers.
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A. Exemptions from impact fees. The following developments shall be exempt from the requirement for payment of impact fees: publicly operated elementary, middle, junior high and senior high schools, and administrative, maintenance and other facilities of a school district and facilities of an Educational Service District.
B. Exemption or waiver from impact fees for low-income housing pursuant to RCW 82.02.060(2). Pursuant to RCW 82.02.060(2), the review authority may grant a total or partial exemption or waiver from impact fees for housing developments containing up to three dwelling units and qualifying as low-income housing as defined in this chapter, to be owned and occupied by, or leased to, low-income persons. Requests for exemption and/or waiver for four or more dwelling units must be approved by the city council. No such impact fee exemption and/or waiver shall be granted for any low-income housing that has been granted a property tax exemption pursuant to Chapter 3.22 VMC, Multi-Family Tax Abatement. Any such exemption or waiver shall be subject to:
1. Provision being made for payment of the impact fee from public funds other than impact fee accounts; and
2. Adequate documentation that the housing meets appropriate standards regarding household income, rent levels, sales price, location, and number of units;
C. Alternative exemption from impact fees for low-income housing pursuant to RCW 82.02.060(3). Pursuant to RCW 82.02.060(3), the city council may grant an alternative exemption for low-income housing under this subsection. No such impact fee exemption and/or waiver shall be granted for any low income housing that has been granted a property tax exemption pursuant to Chapter 3.22 VMC, Multi-Family Tax Abatement
1. The city council may either:
a. Grant a partial exemption of not more than 80 percent of impact fees, in which case there is no requirement to pay the exempted portion of the fee from public funds other than impact fee accounts; or
b. Provide a full waiver, in which case the remaining percentage of the exempted fee must be paid from public funds other than impact fee accounts; and
2. Compliance with all of the requirements of subsection D of this section is required.
D. An exemption for low-income housing granted under subsection B or C of this section must comply with all of the following conditions:
1. The developer shall record a covenant with the Clark County auditor. The covenant must:
a. Prohibit using the property for any purpose other than for low-income housing.
b. Require that if the property is converted to a use other than for low-income housing, the property owner must pay the applicable impact fees in effect at the time of conversion.
c. Define low-income housing as housing for which the monthly housing expense is no greater than 30 percent of 80 percent of the median-family income adjusted for family size for Clark County, Washington, as reported by the United States Department of Housing and Urban Development.
2. When the city grants an exemption for low-income housing granted under subsection B or C of this section, it may not collect revenue lost through the granting of the exemption by increasing impact fees unrelated to the exemption.
3. A school district that receives school impact fees collected by the city must consent in writing prior to city approval of any exemption from school impact fees granted under subsection B or C of this section. Failure of a school district to provide consent in writing to the city within 30 days of the school district’s receipt of written request for approval from the city shall constitute disapproval of the requested exemption.
E. Reduction in traffic impact fees for qualifying businesses. To promote business development, the review authority may grant a reduction of traffic impact fees as specified in Table 20.915.080-1 below for businesses which meet all of the following requirements:
1. The business owner shall commit, through a development agreement approved by city council, to locate a number of new employees that coincides with the TIF incentive in Table 20.915.080-1. Such new employees shall locate to the city within the first year of the business obtaining an occupancy permit; and
2. The median salary of all company employees to be located shall, at a minimum, coincide with the specified percent of median individual income in Table 20.915.080-1. Median individual income shall be based on the most recent available information from U.S. Department of Housing and Urban Development for the Portland-Vancouver MSA at the time of the development agreement approval; and
3. If the owner or developer of the property or building is not the business locating within the city, documentation shall be submitted to the city that satisfactorily demonstrates that the business received the benefit of the fee reduction rather than the owner or developer; and
4. The business shall provide the city with such documentation and access to records as needed to verify satisfaction of the foregoing requirements. In the event that the business fails to satisfy any of the requirements criteria, the business shall pay to the city the amount of the fee reduction together with interest at the statutory rate provided for at RCW 19.52.010 upon demand.
The city shall make provision for payment of the impact fee reduction to the transportation impact fee account from public funds other than impact fee accounts.
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Table 20.915.080-1 Business Development TIF Incentive |
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|---|---|---|---|
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Median Salary of All Business Employees |
Minimum Employees |
TIF Benefit |
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1. |
200% of Median Individual Income |
200 |
25% TIF reduction, up to $100,000 |
|
2. |
150% of Median Individual Income |
250 |
25% TIF reduction, up to $100,000 |
|
3. |
125% of Median Individual Income |
300 |
25% TIF reduction, up to $100,000 |
|
4. |
200% of Median Individual Income |
400 |
50% TIF reduction, up to $200,000 |
|
5. |
150% of Median Individual Income |
500 |
50% TIF reduction, up to $200,000 |
|
6. |
125% of Median Individual Income |
600 |
50% TIF reduction, up to $200,000 |
This provision shall be operative until December 31, 2020, unless renewed by city council.
F. Criteria for calculating impact fees. The impact fee for an exempt or waived development shall be calculated as provided for in this chapter and paid with public funds; except that there is no requirement to pay the exempted portion of the fee from public funds other than impact fee account for a partial exemption of not more than 80 percent of impact fees that has been approved under subsection C of this section. Such payment may be made by including such amount(s) in the public share of system improvements undertaken within the applicable service area. If an impact fee(s) is waived, the review authority, pursuant to VMC 20.915.070, or state law may determine whether a public share-contribution or a reduced public-share contribution is required. (Ord. M-4340 § 4, 2021; Ord. M-4154 § 3, 2016; Ord. M-4108 § 1, 2014; Ord. M-3643, 2004)