HomeMy WebLinkAbout2017/06/27 - Regular BOARD OF MASON COUNTY COMMISSIONERS' PROCEEDINGS
Mason County Commission Chambers, 411 North 5th Street, Shelton, WA
JUNE 27, 2017
1. Call to Order—The Chairperson called the regular meeting to order at 6:00 p.m.
2. Pledge of Allegiance— Rob Drexler led the flag salute.
3. Roll Call — Present: Commissioner District 1 - Randy Neatherlin; Commissioner District 2— Kevin
Shutty; Commissioner District 3 —Terri Jeffreys.
4. Correspondence and Organizational Business
4.1 Correspondence
4.1.1 Bonnie Knight sent a letter resigning from the Lodging Tax Advisory Committee.
4.1.2 The Liquor and Cannabis Board sent a letter that Staffys Garden has discontinued sales and
service of marijuana at 1001 E. Malaney Creek Rd Suite A, Shelton, WA.
4.1.3 The Liquor and Cannabis Board sent a liquor license for North Mason Rotary Club PO Box
321, Allyn, WA and Allyn Community Association PO Box 52, Allyn, WA.
4.1.4 State of Washington Department of Health sent an Administrative Order
Reclassifying three portions (130 acres) of the Commercial Shellfish growing area in North
Bay.
4.1.5 Mason County Fire District #9 sent a letter that they have appointed Chief Bill Hunter to be a
representative on the EMS council and Carly Bean as an alternate.
5. Open Forum for Citizen Input—
5.1 Dave Komsak, Arcadia Road, seeking assistance from Public Works with regards to the paving of
Arcadia Road.
6. Adoption of Agenda - Cmmr. Jeffreys/Neatherlin moved and seconded to adopt the agenda
as published. Motion carried unanimously. N-aye; S-aye; J-aye.
7. Approval of Minutes—June 5, 2017 Briefing Minutes
Cmmr. N eatherl in/Jeffreys moved and seconded to approve the June 5, 2017 briefing
meeting minutes. Motion carried unanimously. N-aye; S-aye;J-aye.
8. Approval of Action Agenda:
8.1 Approval of the resolution changing Mason County's financial reporting the cash basis effective
January 1, 2017. Resolution No. 33-17 (Exhibit A)
8.2 Approval to set a hearing for July 18, 2017 to adopt an ordinance amending Mason County
Code, Section 14.22 Flood Damage Prevention.
8.3 Approval of the Interlocal Agreement with the Washington State Department of Corrections
authorizing services provided by the Public Works Department for vehicle, road or site
maintenance, engineering, survey, GIS, emergency assistance, sign fabrication, fueling and
materials supply.
8.4 Approval to authorize Public Works, Utilities and Wastewater Management Division (U&W) to
purchase an additional license for Paradigm Software, associated equipment, onsite training
and authorize the Deputy Director of Public Works, U&W Division to sign the System
Implementation and Standard Support System Agreement Amendments.
8.5 Approval of the Interlocal Agreement with Central Mason Fire-EMS authorizing services
provided by the Public Works Department for vehicle, road or site maintenance, engineering,
survey, GIS, emergency assistance, sign fabrication, fueling and materials supply.
8.6 Approval of the resolution for the distribution of the Public Utility District Excise Tax, per RCW
54.28.090. The Mason County Current Expense Fund will receive $682,494.06 and the City of
Shelton will receive $73,944.73. Resolution No. 34-17 (Exhibit B)
BOARD OF MASON COUNTY COMMISSIONERS' PROCEEDINGS
JUNE 27, 2017 - PAGE 2
8.7 Approval to concur with Thurston County's appointment of Jenna Noll to the Timberland
Regional Library Board of Trustees for a term ending December 31, 2019.
8.8 Approval of Warrants
Claims Clearing Fund Warrant #s 8049179-8049413 $ 897,484.10
Direct Deposit Fund Warrant #s 41823-42225 $ 729,322.22
Salary Clearing Fund Warrant #s 7002864-7002893 $ 521,059.41
Total $ 2,147,865.73
8.9 Approval of contracts between Mason County Community Services and the following agencies:
(some contracts are contingent on approval of WA State budget):
Agency Maximum Contract Award
Community Action Council $554,832.30
Crossroads Housing $198,538
Crossroads Housing $162,000
Turning Pointe $32,943
North Mason Resources $46,556
Community Lifeline $31,501
Community Lifeline $25,000
Housing Options for Students in $44,000
Transition
Community Youth Services $7,356
Behavioral Health Resources $50,520
Northwest Resources II, Inc. $109,880
Mental Health PFefessienals $82,211
Funding Sources:
Local Recording Fees (2163) $300,000
Local Recording Fees (2160) $ 25,000
Mental Health Fund $250,000
Consolidated Housing Grant(CHG) $198,538
Housing and Essential Needs (HEN) $554,832
8.10 Approval to set a public hearing Tuesday, July 18, 2017 at 9:30 a.m. to consider increasing
application and transfer fees for Open Space,Timber, Farm &Agriculture, and Designated
Forest Land programs to $500 each.
8.11 Approval to set a public hearing on Tuesday, July 18, 2017 at 9:30 a.m. to consider the 2016
Current Use Open Space Applications.
8.12 Approval to set a public hearing on Tuesday, July 18, 2017 at 9:30 a.m. to consider budget
revisions/reductions to the 2017 Budget as follows:
• Current Expense Fund reductions/revisions not to exceed a reduction of($2,100,000)
• Public Health Fund reductions/revisions not to exceed a reduction of($31,000)
• Information Technology reductions/revisions not to exceed a reduction of($48,900)
Constance Ibsen requested Items 8.1 and 8.12 be removed for a separate vote.
Cmmr. N eatherl in/Jeffreys moved and seconded to approve all items on the Action Agenda
with the exception of Items of 8.1 and 8.12. Motion carried unanimously. N-aye; S-aye;J-
aye.
Item 8.1
Leo Kim, Chief Finance Officer, provided history on Mason County's financial reporting method. The State
Auditor brought up the cash basis reporting. Cash basis should reduce the audit hours resulting in a
lower cost. The Auditor and Treasurer are supportive of this change and the Mason County Audit
Committee recommended Mason County change to cash basis.
BOARD OF MASON COUNTY COMMISSIONERS' PROCEEDINGS
JUNE 27, 2017 - PAGE 3
Brenda Hershey questioned Mr. Kim on the financial process followed and asked why the County would
change to cash basis in the middle of the year. Ms. Hershey is seeking reassurance the County has the
ability to manage the tax payers money.
The Commissioners and Mr. Kim provided information on the change to cash basis.
Cmmr. Jeffreys/Neatherlin moved and seconded to approve the resolution changing Mason
County's financial reporting the cash basis effective January 1, 2017. Motion carried
unanimously. N-aye; S-aye;J-aye. Resolution No. 33-17
Item 8.12
Frank Pinter, Support Services Director, provided information on the request to set the 2017 budget
reduction hearing. The Finance Committee has recommended Current Expense be reduced by
$2,000,000.
Constance Ibsen asked the timeframe for the budget reductions.
Brenda Hershey asked for the root cause of this budget reduction in July.
Various revenues are projected to be less; there was less unexpended 2016 budget than anticipated and
costs have increased.
Cmmr. Neatherlin/Jeffreys moved and seconded to approve setting the public hearing on
Tuesday,July 18, 2017 at 9:30 a.m. to consider budget revisions/reductions to the 2017
Budget as follows: Current Expense Fund reductions/revisions not to exceed a reduction of
($2,100,000) Public Health Fund reductions/revisions not to exceed a reduction of($31,000)
Information Technology reductions/revisions not to exceed a reduction of($48,900)
Motion carried unanimously. N-aye; S-aye;J-aye. Resolution No. 36-17 (Exhibit C)
9. Other Business (Department Heads and Elected Officials)
Dave Windom, Community Services Director, Ecology testing found fecal coliform on the beach in Allyn
and this area has been closed. Upon inspection, it appears to be from birds. This will continue to be
monitored.
10. 6:30 P.M. Public Hearings and Items set for a certain time
10.1 Public hearing to amend Mason County Code, Section 17.90 Multi-Family Housing Tax Incentive
Program, to provide additional flexibility and opportunity for development of affordable housing in the
Belfair Urban Growth Area through 2020.
Paula Reeves, Planning Manager, presented the staff report for this request.
Ken VanBuskirk asked why only Belfair is being considered and not the other UGAs for Allyn and Shelton.
Cmmr. Jeffreys stated that in developing the Belfair Sewer finance plan, a piece of the finance plan is to
incentivize development. Mason County was authorized by the state legislature to offer this tax incentive
and this reduced hook-up fee is an added incentive. Mason County has a need for multi-housing and
hook-ups are needed for the Belfair Sewer System.
Mr. VanBuskirk stated he doesn't believe this program has been vetted in the Belfair community; he has
met with county staff was initially told this would apply to all UGAs and today was told it is for only the
Belfair UGA. The Belfair mobility plan is part of Belfair Sub-Area plan and the County is working to
BOARD OF MASON COUNTY COMMISSIONERS' PROCEEDINGS
JUNE 27, 2017 - PAGE 4
amend the transportation element. His opinion is the multi-housing zone is important for the
transportation plan. He suggested amending the Belfair Sub-Area plan in its entirety.
Cmmr. Neatherlin stated when the multi-family incentive was adopted into code, these zones were
identified in all the UGAs but this incentive is for the Belfair UGA only.
Ms. Reeves also asked that Chpt. 17.90,070 (d) (ii)( 2) be corrected —`The applicant must commit to
renting or selling to at least [so] 50% of the multifamily housing units as affordable..."
These targeted areas, when selected in 2014, are all zones that allowed multi-housing.
Mr. Van Buskirk stated this is allowing multi housing in other zones, there were three distinct
development notes when the Belfair Sub Area was developed.
Rob Drexler, Chair of PAC at time of multi-housing code change, stated the multi-housing tax incentive
was allowed in zones that already allowed multi-housing.
Mr. Windom noted this code amendment sunsets the same time as the tax incentive sunsets.
Cmmr. Neatherlin/Jeffreys moved and seconded to amend Mason County Code, Section
17.90 Multi-Family Housing Tax Incentive Program to provide additional flexibility and
opportunity for development of affordable housing in the Belfair Urban Growth Area through
2020. With the additional change to MCC 17.90.070(d)(ii)(2) replacing "so"with 50%. Motion
carried. N-aye; S-aye; J-aye. Ordinance No. 35-17 (Exhibit D)
11. Board's Reports and Calendar -The Commissioners reported on meetings attended the past week
and announced their upcoming weekly meetings.
12. Adjournment—The meeting adjourned at 7:18 p.m.
BOARD OF COUNTY COMMISSIONERS
ATTEST: MASON COUNTY, WASHINGTON
01
Mel ssa D ewry, Crerk ofVV�he Board Kevin Shu l
, ,7hair
4,.— !,&
Terri Jeffreys,'toirmissioner
Ran,4 Neatherlin, Commissioner
Ex. A
Resolution-,
A RESOLUTION CHANGING MASON COUNTY'S FINANCIAL REPORTING TO CASH BASIS
WHEREAS, under the authority of RCW 43.09.200, the Washington State Auditor's Office allows local
governments the option to report on either a GAAP (generally accepted accounting principles) or cash
basis;
WHEREAS, Chapter 4.1.7.30 of the BARS (Budgeting, Accounting, and Reporting system) manual states
the design of a government's accounting system and controls for financial reporting is a management
decision, including the selection of the basis of reporting;
WHEREAS, the Washington State Auditor's office is in agreement Mason County change its financial
reporting to cash basis;
WHEREAS, the Mason County Audit Committee has considered the issues related to changing to a cash
basis and recommends Mason County change its financial reporting to a cash basis effective January 1,
2017;
NOW, THEREFORE BE IT RESOLVED, the Mason County Board of Commissioner directs Mason County's
financial reporting to be changed from a GAAP basis to a cash basis for all Mason County Departments
and Offices effective January 1, 2017.
Passed this 271h day of June, 2017.
BOARD OF COUNTY COMMISSIONERS
ATTEST: MASON COON ASHINGTON
Meli sa r , Clerk of t6 Board Kevin Shutty hair
APPROVED AS TO FORM:
_ Randy eatherlin, Com issioner
Tim Whi e eaa
Chief Deputy Prosecuting Attorney
Terri Jeffrey , ssioner
C: All Departments/Offices
I
C:\Users\timw\AppData\Local\Temp\XPgrpwise\Cash Resolution.docx
Ex. B
RESOLUTION NO. OJT" 7
DISTRIBUTION OF PUD EXCISE TAX
WHEREAS, the P.U.D. Excise Tax Monies which have accrued to the credit of Mason
County have now been received in the total amount of$756,438.79.
WHEREAS, under Chapter 278, Session Laws of 1957, provision has been made for the
distribution of said funds (RCW 54.28.090);
NOW, THEREFORE BE IT HEREBY RESOLVED by the Board of Mason County
Commissioners that the following distribution of P.U.D. Excise Tax be made as follows:
RECEIPTS
P.U.D. NUMBER 1 .................$ 83,866.16
P.U.D. NUMBER 3 ......................$672,572.63
DISTRIBUTION
City of Shelton ..........................$ 73,944.73
Computed as 3/4 of 1% of Gross
Revenue from sales of electricity
in the City of Shelton
Current Expense Fund................. $682,494.06
BE IT FURTHER RESOLVED that the Treasurer of Mason County is hereby directed to
make the distribution as herein set forth.
DATED this 27th day of June, 2017.
BOARD OF COUNTY COMMISSIONERS
MASON COUNTY, WASHINGTON
ATTEST:
Meli sa re ry, Clerk the Board Kevin Shutty, hair
APPROVED AS TO FORM:
Terri Jeffreys, sioner
j Tim Whi ad
Chief Deputy Prosecuting Attorney
C: Clerk of the Board Rand Neatherlin, Commissioner
City Clerk
Treasurer
J:\reso I ute\2016\pudtax
Ex. C
RESOLUTION NO.
2017 BUDGET
BUDGET REVISIONS/REDUCTIONS-NOTICE OF HEARING
WHEREAS, by reason of conditions which could not be reasonably foreseen at the time of making
the budget for the year 2017, it is necessary to make provisions for budget revisions/reductions to the
2017 budget as required by RCW 36.40.100 for the following:
• Budget revisions/reductions to the Current Expense Fund, Public Health Fund and Information
Technology Fund due to a reduced beginning fund balance
THEREFORE, BE IT RESOLVED BY THE Board of Mason County Commissioners:
That the 18th day of July, 2017 at the hour of 9:30 am in the Mason County Commissioners Chambers in
Courthouse Building I, 411 North Fifth Street, Shelton, Washington, is hereby fixed as the time and place
for a public hearing upon the matter of budget revisions/reductions to the 2017 Budget as follows:
• Current Expense Fund reductions/revisions not to exceed a reduction of($2,100,000)
• Public Health Fund reductions/revisions not to exceed a reduction of($31,000)
• Information Technology reductions/revisions not to exceed a reduction of($48,900)
The Clerk of the Board is hereby authorized, empowered, and directed to cause notice of
such hearing to be published as provided by law.
DATED this 27th day of June 2017.
BOARD OF COUNTY COMMISSIONERS
MASON4NTSHINGTON
ATTEST:
L14 Kevin Shutty, C it
Mel ssa Drewry,Cler of e Board
APPROVED AS TO FORM: Terri Jeffreys, iss oner
Tim Whitehead, Chief Deputy Prosecuting Randy eatherlin, Commissioner
Attorney
C: All Departments/Offices
Publish 2x 7/6 & 7/13—bill to Mason County Commissioners, 411 North 5th Street, Shelton
J:\RESOLUTIONS&ORDINANCES\RESOLUTIONS-ORDINANCES Word Files\2017\Resolution to set budget
hearing for reductions July 18.doc
Ex. D
ORDINANCE NLIMBER �_00' I
AN ORDINANCE OF THE MASON COUNTY BOARD OF
COMMISSIONERS AMENDING TITLE 17 OF THE MASON COUNTY
CODE, CHAPTER 17.90 "MULTI-FAMILY HOUSING TAX INCENTIVE
PROGRAM", A PROGRAM THAT PROVIDES EXEMPTIONS FROM AD
VALOREM PROPERTY TAXATION FOR NEW, CONVERTED, AND
REHABILITATED MULTI-FAMILY HOUSING
AN ORDINANCE of the Mason County Board of Commissioners("Commissioners")to
amend Title 17 of the Mason County Code, Chapter 17.90"Multi-Family Housing Tax
Incentive Program", a program that provides exemptions from Ad Valorem Property
Taxation for new, converted and rehabilitated multi-family housing to ensure its
implementation and increase affordable housing in target areas.
�AIHEREAS, Mason County Code 17.90, under the authority of Washington State law,
Chapter 84.14 Revised Code of Washington 23 (RCW), provides for the exemption from ad
Valorem property taxation forthe value of eligible improvements associated with qualifying
multi-family housing located in residential targeted areas and authorizes the County to
designate said residential targeted areas; and
NVHEREAS, a stated purpose of Chapter 84.14 RCW is to allow unincorporated areas of
rural counties that are within urban growth areas to increase residential opportunities by
stimulating construction of new multi-family housing and the rehabilitation of existing
vacant and under-utilized buildings where there are insufficient residential opportunities;
and
WHEREAS, Chapter 84.14 RCW, recognizes rural counties as those with a population
between fifty thousand and seventy-one thousand and bordering the Puget Sound; and
�AIHEREAS, RCW 84.14 limits residential targeted areas designated by a rural county,to
areas served by public sewer and adopted as an urban growth area priorto January 1, 20131
and
WHEREAS,the Commissioners support a successful multi-family housing tax incentive
program and increased affordable housing in the designated Residential Targeted Areas of
Allyn, Belfair, and Shelton urban growth areas through the adoption of Resolution No. 41-
14, and
WHEREAS, the Commissioners have determined that amendments to the Mason County
Code are necessary to make the Multi-Family Housing Tax Incentive Program viable, and
�AIHEREAS,the Commissioners find that it is in the public interest to adopt the
amendments described above;
NOW THEREFORE, BE IT HEREBY ORDAINED, by the Board of Commissioners of
Mason County that:
Title 17, "Zoning", Chapter 17.90 of the Mason County Code is hereby amended as set forth
in Attachment A,which is attached hereto and incorporated herein by reference.
DATED this 27 day of 2017.
BOARD OF COUNTY COMMISSIONERS
MASON COUNTY,WASHINGTON
ATTEST:
C�,/, ,z k,qf,
Melis r ry, Clerk kthe Board Kevin Shutty Chair
APPROVED AS TO FORM:
Terri Jeffrey ,' o missioner
Tim Whitehead, Chief DPA
Rand Neatherlin, Commissioner
Chapter 17.90-MULTIFAMILY HOUSING TAX INCENTIVE PROGRAM
17.90.010-Purpose.
The purpose of the multifamily housing tax incentive program is to stimulate the construction of new
multifamily housing in residential targeted areas of the urban growth areas where housing options,
including affordable housing options, are severely limited. This chapter provides the value of new housing
construction, conversion, and rehabilitation improvements qualifying under Chapter 84.14 RCW an
exemption from ad valorem property taxation for up to eight or twelve years, as provided for in RCW
84.14.020(1)(a)(ii), in order to provide incentives to developers to construct new multifamily housing
thereby increasing the number of affordable housing units for low to moderate-income residents in the
.urban areas of certain rural counties.
This program is intended to make available solutions to the problems of urban sprawl by providing
incentive and implementation techniques that encourage residential development in those urbanized
areas lacking a sufficient variety of residential opportunities, including affordable housing opportunities,
through a tax incentive program as provided by this chapter.
(Ord.No. 06-15, § 1(att. A), 2-10-2015)
17.90.020-Authority.
This chapter is applicable to multifamily housing projects located in designated residential targeted
areas resulting from new construction, rehabilitation, or conversion of vacant, underutilized, or
substandard buildings which seek limited exemptions from ad valorem property taxation in accordance
with Chapter 84.14 RCW.
(Ord.No. 06-15, § 1(att.A), 2-10-2015)
17,90.030-Definitions.
As used in this chapter, the following terms shall have the following meanings:
(a) "Affordable housing" means residential housing that is rented by a person or household whose
monthly housing costs, including utilities other than telephone, do not exceed thirty percent of
the household's monthly income. For the purposes of housing intended for owner occupancy,
"affordable housing" means residential housing that is within the means of low or moderate-
income households.
(b) "Board of county commissioners" or "commissioners" means the local legislative authority of
Mason County having jurisdiction over the property for which an exemption may be applied for
under chapter.
(c) "Construction" means the erection, alteration, or extension of a structure.
(d) "Conversion" means a change in the use of land or a structure.
(e) "Director" means the director of community development or his/her designee.
(f) "Growth Management Act" means Chapter 36.70A RCW.
(g) "Household" means a single person, family, or unrelated persons living together.
(h) "Low-income household" means a single person, family, or unrelated persons living together
whose adjusted income is at or below fifty percent of the median family income adjusted for
family size, for the county where the project is located, as reported by the United States
Page 1
Department of Housing and Urban Development. The eligibility requirements vary for twelve-
year exemption projects. See section 17.90.070(d)ii.
(i) "Moderate-income household" means a single person, family, or unrelated persons living
together whose adjusted income is more than eighty percent but is at or below one hundred
fifteen percent of the median family income adjusted for family size, for the county where the
project is located, as reported by the United States Department of Housing and Urban
Development. The eligibility requirements vary for twelve-year exemption projects. See section
17.90.070(d)ii.
(j) "Multiple-unit housing" means a building having four or more dwelling units not designed or
used as transient accommodations and not including hotels and motels. Multifamily units may
result from new construction or rehabilitated or conversion of vacant, underutilized, or
substandard buildings to multifamily housing.
(k) "Owner"means the property owner of record.
(i) "Permanent residential occupancy" means multiunit housing that provides either rental or owner
occupancy on a non-transient basis. This includes owner-occupied or rental accommodation
that is leased for a period of at least one month. This excludes hotels and motels that
predominately offer rental accommodation on a daily or weekly basis.
(m) 'Rehabilitation" means the physical improvement, remodeling, or partial reconstruction of
existing structures rather than their demolition or replacement.
(n) 'Rehabilitation improvements" means modifications to existing structures, that are vacant for
twelve months or longer, that are made to achieve a condition of substantial compliance with
existing building codes or modification to existing occupied structures which increase the
number of multifamily housing units.
(o) "Residential targeted area" means an area within an urban growth area that has been
designated by the governing authority as a residential targeted area in accordance with Chapter
84.14 RCW.
(p) "Rural county" means a county with a population between fifty thousand and seventy-one
thousand, and bordering Puget Sound.
(q) "Substantial compliance" means compliance with local building or housing code requirements
that are typically required for rehabilitation as opposed to new construction.
(Ord.No. 06-15, § 1(att.A), 2-10-2015)
17.90.040-Residential targeted area designation criteria.
Following a public hearing, as prescribed in RCW 84.14.040, the board of county commissioners, in
its sole discretion, shall designate one or more residential targeted areas. Each designated residential
targeted area must meet the following criteria, as determined by the commissioners:
(a) The targeted area is located within an urban growth area; and
(b) The targeted area lacks sufficient available, desirable, and convenient residential housing to
meet the needs of the public who would likely live in the urban growth area if desirable,
attractive, and livable places were available; and
(c) The providing of additional housing opportunity in the targeted area will assist in achieving the
stated purpose of this chapter; and
(d) The targeted area must be served by a sewer system at the time of occupancy.
i. Capital Facility Charges for connection to the Belfair Sewer System will be reduced to
$5000 per dwelling unit. No further reductions per ERU would apply.
Page 2
ii. If the tax exemption is canceled prior to the sunset date Capital Facilities Charges
would be reinstated at the rate which was current at the time of application less those
charges already paid.
iii. The reduction in connection charges will sunset with the multi-family housing tax
incentive.
(Ord.No. 06-15, § 1(att. A), 2-10-2015)
17.90.050-Residential targeted area standards and guidelines.
For each designated residential targeted area, the commissioners shall adopt standards and
guidelines, including an application process as required under RCW 84.14.060. The requirements for new
construction, conversion, and rehabilitation supported by the property tax exemption for multifamily
housing including the following:
(a) Application process and procedures;
(b) Requirements that address demolition of existing structures and site utilization; and
(c) A property owner seeking tax incentives under this chapter must commit to renting or selling a
percentage of the multifamily housing units as affordable housing units to low and moderate-
income households. In the case of multiunit housing intended exclusively for owner occupancy,
the minimum requirement of this subsection may be satisfied solely through housing affordable
to moderate-income households.
(Ord.No. 06-15, § 1(att. A), 2-10-2015)
17.90.060-Designated residential targeted areas.
Residential Targeted Areas. The following areas are designated as residential targeted areas for the
purposes of this chapter:
(a) Allyn Residential Targeted Area. This includes eligible parcels located in the following zoning
districts: Rural recreational (R-1R), medium-density multifamily residential (R-2), high-density
multifamily residential (R-3), and residential platted (R-1 P).
(b) Belfair Residential Targeted Area. This includes eligible parcels located in the following zoning
districts: Low-density residential (R-4), medium density residential (R-5), multifamily residential
(R-10),festival retail (FIR), and mixed use (MU).
(c) Shelton Residential Targeted Area. This includes eligible parcels located in the following zoning
districts: Neighborhood residential (NR) and low-intensity mixed use(MU).
(Ord.No. 06-15, § 1(att.A), 2-10-2015)
17.90.070-Property tax exemption: requirements and process.
(a) Intent. Limited exemptions from ad valorem property taxation for multifamily housing in urban growth
areas are intended to:
i. Encourage increased residential opportunities within the targeted area; and
ii. Stimulate the construction of new multifamily housing and the conversion or rehabilitation of
existing vacant and underutilized buildings for multifamily housing; and
iii. Reduce sprawl by encouraging residential development in the urban area help achieve the
planning goals mandated by the Growth Management Act.
Page 3
(b) Duration of Exemption. The value of improvements qualifying under this chapter will be exempt from
ad valorem property taxation for eight or twelve successive years (depending on the percentage of
affordable housing units as described in subsections (d)i. and (d)ii. below, beginning January 1 of the
year immediately following the calendar year of issuance of the final certificate of tax exemption.
(c) Limits on Exemption. The exemption does not apply to the value of land or to the value of
improvements not qualifying under this chapter, nor does the exemption apply to increases in
assessed valuation of land and non-qualifying improvements. In the case of rehabilitation of existing
buildings, the exemption does not include the value of improvements constructed prior to submission
of the completed application required under this chapter.
(d) Project Eligibility. A proposed project must meet the following requirements for consideration for a
property tax exemption:
i. Eight-Year Exemption Project Eligibility. A proposed project must meet the following
requirements for consideration for a property tax exemption:
(1) Location. The project must be located within a residential target area, as designated in
section 17.90.060.
(2) Percentage of Affordable Housing Units. The applicant must commit to renting or selling at
least twenty percent of the multifamily housing units as affordable housing units to low and
moderate-income households, and the property must satisfy that commitment and any
additional affordability and income eligibility conditions adopted under this chapter. In the
case of projects intended exclusively for owner occupancy, the minimum requirement of
this subsection may be satisfied solely through housing affordable to moderate-income
households.
(3) Size. The project must include at least four units of multifamily housing within a residential
structure. A minimum of four new units must be constructed or at least four additional
multifamily units must be added to existing occupied multifamily housing. Existing
multifamily housing that has been vacant for twelve months or more does not have to
provide additional units so long as the project provides at least four units of new,
converted, or rehabilitated multifamily housing.
(4) Permanent Residential Occupancy. At least fifty percent of the space designated for
multifamily housing must be provided for permanent residential occupancy/ as defined in
section 17.90.030.
(5) Proposed Completion Date. New construction multifamily housing and rehabilitation
improvements must be scheduled to be completed within three years from the date of
approval of the application.
(6) Compliance With Guidelines and Standards. The project must be designed to comply with
the county's comprehensive plan, building, housing, and zoning codes and any other
applicable regulations in effect at the time the application is approved. Rehabilitation and
conversion improvements must comply with the county's minimum housing code. New
construction must comply with the uniform building code. The project must also comply
with any other standards and guidelines adopted by the board of county commissioners for
the residential target area in which the project will be developed.
ii. Twelve-Year Exemption Project Eligibility. A proposed project must meet the following
requirements for consideration for a twelve-year property tax exemption:
(1) All requirements set forth in subsection i. above, with the exception of(2); and
(2) The applicant must commit to renting or selling at least 50 percent of the multifamily
housing units as affordable housing units to low and moderate-income households
respectively, and the property must satisfy that commitment and any additional affordability
and income eligibility conditions adopted under this chapter. "Low-income" includes
households with incomes at or below fifty percent of the area median income as defined by
the United States Department of Housing and Urban Development ("HUD"). "Moderate-
Page 4
income" includes households with incomes at or below eighty percent as defined by HUD.
In the case of projects intended exclusively for owner occupancy, the minimum
requirement of this subsection may be satisfied solely through housing affordable to
moderate income households whose adjusted income is more than eighty percent but is at
or below one hundred fifteen percent of the median family income adjusted for family size,
for the county where the project is located, as reported by HUD.
(e) Application Requirements.
i. The project must be located within a residential targeted area, as designated in MCC section
17.90.060.
ii. The new, converted, or rehabilitated multiple-unit housing must provide for a minimum of fifty
percent of the space for permanent residential occupancy. In the case of existing occupied
multifamily development, the multifamily housing must also provide for a minimum of four
additional multifamily units. Existing multifamily vacant housing that has been vacant for twelve
months or more does not have to provide additional multifamily units.
iii. New construction of multifamily housing and conversion or rehabilitation improvements must be
scheduled to be completed within three years from the date of approval of the application.
iv. Property proposed to be rehabilitated must fail to comply with one or more standards of the
applicable state or local building or housing codes on or after July 23, 1995. If the property
proposed to be rehabilitated is not vacant, an applicant must provide each existing tenant
housing of comparable size, quality, and price and a reasonable opportunity to relocate; and
v. The applicant must enter into a contract with the county approved by the governing authority, or
an administrative official or commission authorized by the governing authority, under which the
applicant has agreed to the implementation of the development on terms and conditions
satisfactory to the governing authority. The applicant must commit to renting or selling a
percentage of the multifamily housing units as affordable housing units to low and moderate-
income households, based on the length of the exemption, and the property must satisfy that
commitment and any additional affordability and income eligibility conditions adopted by the
county under this chapter. In the case of projects intended exclusively for owner occupancy, the
minimum requirement of this subsection may be satisfied solely through housing affordable to
moderate income households.
(f) Application Procedure. A property owner who wishes to propose a project for a tax exemption shall
complete the following procedures:
i. File with the department of community development the required application along with the
required fees.
ii. A complete application shall include:
1. A completed application form setting forth grounds for the exemption;
2. Preliminary floor plan, site plan, and building elevation of the proposed project;
3. A statement acknowledging the potential tax liability when the project ceases to be eligible
under this chapter;
4. Verification by oath or affirmation of the information submitted; and
5. For rehabilitation projects and for new development on property upon which an occupied
residential rental structure previously stood, the applicant shall also submit an affidavit that
the dwelling units have been unoccupied for a period of twelve prior to filing the application.
(g) Application Review and Issuance of Conditional Certificate. The director may certify as eligible an
application which is determined to comply with the requirements of this chapter. A decision to
approve or deny an application shall be made within forty-five days of receipt of a complete
application.
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i. Approval. If an application is approved, the applicant shall enter into a contract with the county,
subject to approval by resolution of the commission, regarding the terms and conditions of the
project. This contract may include provisions for discounting Capital Facilities Charges related
to sewer connection. This CFC discount shall be no lower than .5 multiplied by the number of
dwelling units (ERUs for a multifamily structure not receiving the Multi-Family Housing Tax
Incentive are currently defined as the number of dwelling units multiplied by 0.7). Upon
commission approval of the contract, the director shall issue a conditional certificate of
acceptance of tax exemption. The conditional certificate expires three years from the date of
approval unless an extension is granted as provided in this chapter. An application may not be
approved on or after January 11 2020 (RCW 84.14.060(3)).
ii. Denial. The director shall state in writing the reasons for denial and shall send notice to the
applicant at the applicant's last known address within ten days of the denial. An applicant may
appeal a denial to the hearing examiner within fourteen days of receipt of notice (section
15.11.020 MCC). On appeal, the director's decision will be upheld unless the applicant can
show that there is no substantial evidence on the record to support the director's decision. The
hearing examiner's decision on appeal will be final.
(h) Extension of Conditional Certificate. The conditional certificate may be extended by the director one
time for a period not to exceed twenty-four consecutive months. The applicant must submit a written
request stating the grounds for the extension, accompanied by the required processing fee. An
extension may be granted if the director determines that:
i. The anticipated failure to complete construction or rehabilitation within the required time period
is due to circumstances beyond the control of the owner;
ii. The owner has been acting and could reasonably be expected to continue to act in good faith
and with due diligence; and
iii. All the conditions of the original contract between the applicant and the county will be satisfied
upon completion of the project.
(i) Application for Final Certificate. Upon completion of the improvements agreed upon in the contract
between the applicant and the county and upon issuance of a temporary or permanent certificate of
occupancy, the applicant may request a final certificate of tax exemption. The applicant must file with
the department of community development the following:
i. A statement of expenditures made with respect to each multifamily housing unit and the total
expenditures made with respect to the entire property;
ii. A description of the completed work and a statement of qualification for the exemption;
iii. A statement that the work was completed within the required three-year period or any
authorized extension; and
iv. A statement that the project meets the affordable housing requirements described in MCC
17.90.070(e)v. Within thirty days of receipt of all materials required for a final certificate, the
director shall determine which specific improvements satisfy the requirements of this chapter.
Q) Issuance of Final Certificate. If the director determines that the project has been completed in
accordance with the contract between the applicant and the county and has been completed within
the authorized time period, the county shall, within ten days, file a final certificate of tax exemption
with the Mason County Assessor's Office.
i. Denial and Appeal. The director shall notify the applicant in writing that a final certificate will not
be filed if the director determines that:
(1) The improvements were not completed within the authenticated time period;
(2) The improvements were not completed in accordance with the contract between the
applicant and the county; or
(3) The owner's property is otherwise not qualified under this chapter.
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ii. Within fourteen days of receipt of the director's denial of a final certificate, the applicant may file
an appeal with the hearing examiner, as provided in section 15.11.020 MCC. The hearing
examiner's decision on appeal will be final.
(k) Annual Compliance Review.
i. Within thirty days after the first anniversary of the date of filing the final certificate of tax
exemption and each year thereafter for a period of twelve years, the property owner shall file a
notarized declaration with the director indicating the following:
(1) A statement of occupancy and vacancy of the multifamily units during the previous year;
(2) A certification that the property continues to be in compliance with the contract with the
county and, if applicable, a certification of affordability based on documentation that the
property is in compliance with the affordable housing requirements as described in MCC
17.90.070(e)v.; and
(3) A description of any subsequent improvements or changes to the property. County staff
shall also conduct on-site verification of the declaration. Failure to submit the annual
declaration may result in the tax exemption being canceled.
ii. The director shall report all issued certificates of tax exemption for multiunit housing that
conform to the requirements of this chapter, annually by December 31 of each year, beginning
in 2007, to the department of commerce. The report must include the following information:
(1) The number of tax exemption certificates granted;
(2) The total number and type of units produced or to be produced;
(3) The number and type of units produced or to be produced meeting affordable housing
requirements;
(4) The actual development cost of each unit produced;
(5) The total monthly rent or total sale amount of each unit produced;
(6) The income of each renter household at the time of initial occupancy and the income of
each initial purchaser of owner-occupied units at the time of purchase for each of the units
receiving a tax exemption and a summary of these figures for the city or county; and
(7) The value of the tax exemption for each project receiving a tax exemption and the total
value of tax exemptions granted.
(1) Cancellation of Tax Exemption. If the director determines the owner is not complying with the terms
of the contract, the tax exemption will be canceled. This cancellation may occur in conjunction with
the annual review or at any other time when noncompliance has been determined. If the owner
intends to convert the multifamily housing to another use, the owner must notify the director and the
Mason County Assessor within sixty days of the change in use.
i. Effect of Cancellation. If a tax exemption is canceled due to a change in use or other
noncompliance, the Mason County Assessor may impose an additional tax on the property,
together with interest and penalty, and a priority lien may be placed on the land pursuant to
state legislative provisions.
ii. Notice and Appeal. Upon determining that a tax exemption is to be canceled, the director
shall notify the property owner by certified mail. The property owner may appeal the
determination by filing a notice of appeal in accordance with chapter 15.11 MCC within
fourteen days specifying the factual and legal basis for the appeal. The hearing examiner
will conduct a hearing at which all affected parties may be heard and all competent
evidence received. The hearing examiner will affirm, modify, or repeal the decision to
cancel the exemption based on the evidence received. The hearings examiner's decision
shall be final.
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(Ord.No. 06-15, § 1(att.A),2-10-2015)
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