3.38.170 Alternative compliance.
A. While the goal of the multifamily property tax exemption program is to achieve affordable housing on-site, the Director may approve a request for satisfying all or part of the affordable housing requirements with alternative compliance methods proposed by the applicant, if they meet the intent of this section.
B. The owner may propose one or more alternative compliance methods together with a request for a property tax exemption for a maximum of 8 years. The alternative compliance method may involve provision of affordable housing off-site or cash payment in lieu of providing affordable housing on-site provided the method is consistent with the criteria in (C). Cash payments in lieu of providing the actual housing units will be used only for the subsequent provision of affordable housing units by the City or other housing provider approved by the Director.
C. Decision Criteria for the Director include and are not limited to the following:
1. The alternative compliance method will achieve a result better than providing affordable housing on-site.
2. The proposed off-site location for required affordable housing pursuant to the alternative compliance provision must locate in such a way that it achieves seamless integration of the affordable housing component into the overall project. Property that is immediately proximate to the project site will be considered by the Director as most closely achieving this criteria, though other properties may be considered if it can be demonstrated that the goal of dispersal of affordable housing throughout the City is achieved.
3. The proposed alternative property for affordable housing units is under site control at the time of approval of the final certificate.
4. Housing units provided through the alternative compliance method must be based on providing the same type and tenure of units as the units in the project that give rise to the requirement.
5. In the case of cash payments in lieu of providing affordable housing on-site, the cash payment obligation and timing must be determined by the Director to be satisfactory to support achievement of the alternative compliance method.
6. No individual property that receives off-site affordable housing units or payment in lieu may have more than 25 percent of its units as affordable housing units, unless the property will be utilizing public funding sources for affordable housing.
7. The proposed alternative property for affordable housing is planned for completion within three years of approval of the final certificate. The Director may determine if a project’s circumstances warrant allowing flexibility in the timing of completion of the affordable units.
D. Timing. Application for and approval by the Director for alternative compliance must be made no later than the time of initial application for an 8 year multifamily property tax exemption, unless otherwise permitted by the Director.
E. The MFTE contract between the applicant and the City in a case of alternative compliance shall modify the requirements of RMC 3.38.070 through 3.38.160 as appropriate to reflect the terms and conditions of the alternative compliance.
F. Completion of payment of an in lieu fee, provision of affordable units off-site and/or satisfaction of other conditions required pursuant to an alternative compliance approval shall constitute full and complete satisfaction of the requirements of this RMC 3.38. Following such satisfaction, the applicant shall have no further obligations under this RMC 3.38, except as otherwise set forth in the MFTE contract. (Ord. 2892 § 3 (part), 2017).