3.38.120 Exemption – Duration – Affordability requirements – Limits

A. The value of new housing construction qualifying under this chapter shall be exempt from ad valorem property taxation as follows:

a. Length of Exemption. For eight or 12 successive years beginning January 1 of the year immediately following the calendar year of issuance of the certificate for rental projects where at least the required minimum number of units are affordable units as specified in Table 1.

b. Table 1: Required Minimum Affordability Levels. Affordable Rents as indicated:

Table 1. Marymoor Residential Targeted Area
Length of Exemption	Number of Units	Affordability Level
8 years	First 10%	50% AMI
12 years	First 10%	60% AMI
12 years	Second 10%	80% AMI

a. Length of Exemption. For eight or 12 successive years beginning January 1 of the year immediately following the calendar year of issuance of the certificate for rental projects where at least the required minimum number of units are affordable units as specified in Table 2.

b. Table 2: Required Minimum Affordability Levels. Affordable Rents as indicated:

Table 2. Downtown and Overlake Village Residential Targeted Areas
Length of Exemption	Number of Units	Affordability Level
8 years	First 10%	60% AMI
12 years	First 10%	65% AMI
12 years	Second 10%	85% AMI

B. For any affordable units required in this section, the following shall apply:

1. Affordable units shall have affordable rents as defined in RMC 3.38.030. The mix and configuration of affordable units (e.g., very small units, studio, one-bedroom, two bedroom, etc.) at each affordability level shall be substantially proportional to the mix and configuration of the total housing units in the project unless otherwise approved by the Director.

2. Affordable units will be reserved for occupancy by eligible households who certify that their household annual income does not exceed the applicable percent of the area median income; and who certify that they meet all qualifications for eligibility, including any requirements for recertification on income eligibility as set forth in the MFTE covenant referenced in RMC 3.38.060.F.

3. The location of the affordable housing units shall be approved by the Director, with the intent that they generally be intermingled with all other dwelling units in the development.

4. If the percentage of affordable units in the project required is a fraction, then the number of required affordable units shall be rounded up to the next whole number (units) if the fraction of the whole number is at least 0.50.

C. The exemption does not apply to the value of land or to the value of improvements not qualifying under this chapter, to increases in assessed valuation of land and nonqualifying improvements, or to increases made by lawful order of the King County Board of Equalization, Washington State Department of Revenue, State Board of Tax Appeals, or King County, to a class of property throughout the county or a specific area of the county to achieve uniformity of assessment or appraisal as required by law. (Ord. 3030 § 2, 2021; Ord. 2892 § 3 (part), 2017).