A developer proposing a new affordable housing project at 505 Union Avenue SE is exploring options to reduce development costs through potential frontage improvement exemptions under the city's proposed code changes.
Tiffani King, Olympia's senior engineering plans examiner, informed Ken Brogan, property owner and project applicant, of a proposed language being considered in the Engineering Design and Development Standards (EDDS) that includes exemptions based on the total valuation of the renovation project.
King said the proposed new exemptions aim to encourage adaptive reuse of old buildings.
The application is for the change of use occupancy and remodel of the project. Brogan plans to repurpose the existing four-story building of approximately 46,372 square feet, which he now owns, and develop it into 65 affordable housing.
"My goal is to create 100% affordable units, not just a portion,” Brogan said in his presentation.
For aesthetic reasons, the building's exterior would see minimal changes besides cleanup, window replacements, and landscaping repairs.
Interior renovations would convert the space into 65 studio-style units.
"We will utilize the space as much as we can for flow and function to fit this in that affordable model…and in a small way, fill the void that we have in that affordable unit market downtown," Brogan said.
King went on to explain the proposed exemptions. She said projects with a valuation under 25% of the existing property's assessed value would be exempt from frontage improvements, excluding fixes for broken sidewalks.
She added that renovations valued between 25-50% of the assessed value would still require frontage upgrades but would be exempt from more extensive improvements like street repaving.
King said the code language is expected to be adopted in late March or early April.
Jacinda Steltjes, Affordable Housing Program manager, provided additional information about affordable housing programs and incentives available for the proposed project. She noted that the property falls within Olympia's multifamily tax exemption target area.
For units to qualify as affordable, Steltjes said rent and utilities cannot exceed 30% of a household's income, where income must be 80% or less of the area median income – according to the U.S. Department of Housing and Urban Development (HUD).
Steltjest also informed the developer of the city's recent changes in the 12-year MFTE program, which now requires 100% of the units to be affordable to 80% or fewer AMI households.
Other incentives include impact fees for parks, schools, and transportation, which would see an 80% reduction for affordable developments.
Steltejes also noted that under recent code changes, general facility charges from utilities are reduced by 50% for new development projects or when a property is changed, such as converting an office building to an apartment. Since this project involves changing the use of the existing building, any applicable general facility charges from utilities would qualify for the 50% reduction according to the new code.
The program manager added that there is a potential 50% reduced fee from LOTT. While their code language refers to reductions for new connections, Steltjes said she would follow up with LOTT if they could apply the reduction to a conversion project.
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BobJacobs
Why are our local governments so fond of hiding important details from us?
And why is JOLT not filling the information gap in every article?
Two examples from this piece --
Saturday, February 24 Report this
BobJacobs
I just learned the hard way that we cannot use the TAB key in submitting comments.
My earlier comment on this article started as follows:
Why are our local governments so fond of hiding important details from us?
And why is JOLT not filling the information gap in every article?
Examples from this piece -
Here are the rest of my comments:
1. The article says "rent and utilities cannot exceed 30% of a household's income, where income must be 80% or less of the area median income". How many actual dollars is that? We should be told exactly how "low income" people need to be to deserve subsidies. We should also be informed of related details, such as what happens when a household's income increases and no longer qualifies for the subsidy.
2. The article also refers to "Olympia's multifamily tax exemption" program, but does not tell us what that means. In the case of the 12-year exemption for limited income households, it means that the owners of the property pay NO property taxes on the building for 12 years, AND that the rest of us will pay additional property taxes to pay the amount exempted. Not to mention how the city will assure compliance with these requirements (state analysts found that the city was not doing so).
3. The article also mentions reductions of 80% in impact fees for parks, schools, and transportation facilities and 50% for certain utility connection fees. How much is that? We are not told, but it's a lot. And what is the impact on the larger community? We are not told, but the rest of us will have to pay higher taxes to cover the loss.
Come on, city and JOLT -- give us the whole story!
Bob Jacobs
Saturday, February 24 Report this
zingZap33x
Bob is right, We are giving very substantial tax breaks (with the 12 year Multifamily Tax Exemption, reduction of impact fees for parks, schools and transportation, and 50% reduction in some utility fees). All of this will be shifted on to property owners. Providing housing that is 80% of the Average Median Income for the County is not that affordable. Many people need housing that is below 50% of the AMI to be truly affordable. We are giving up a lot for not that much.
Saturday, February 24 Report this
Larry Dzieza
I can't answer all of Bob Jacobs' questions but I can do one for Thurston county income based on HUD standards.
Source: https://hatc.org/eligibility-income-limits/
Updated May 15, 2023:
Family Size of 1
30% of Median - Extremely Low Income = $21,550
50% of Median - Very Low Income = $35,900
80% of Median - Low Income = $57,400
Family Size of 2
30% of Median - Extremely Low Income = $24,600
50% of Median - Very Low Income = $41,000
80% of Median - Low Income = $65,600
Family Size of 3
30% of Median - Extremely Low Income = $27,700
50% of Median - Very Low Income = $46,150
80% of Median - Low Income = $73,800
Family Size of 4
30% of Median - Extremely Low Income = $30,750
50% of Median - Very Low Income = $51,250
80% of Median - Low Income = $82,000
Saturday, February 24 Report this
wildnature
It's certainly better giving low income housing tax breaks rather than giving tax breaks for unaffordable housing. And it certainly is affordable for the rest of us as people living on the streets because they can't find affordable housing, have to turn to crime to live since they don't have a permanent address to hold down a job, etc.
Sunday, February 25 Report this