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A. Purpose. To allow flexibility in building height in exchange for the integration of less expensive dwelling units into the development.

B. Applicability. Height bonuses are available to development in the R4, C, and CBD zones as established in this chapter, provided it complies with one of the affordable housing options in this section.

C. Option 1: Small Units. Developments where at least 50 percent of the total dwelling units contain no more than 600 square feet of gross floor area qualify for the height bonus.

D. Option 2: Affordable Units. Developments that integrate affordable dwelling units per the standards below qualify for the height bonus.

1. For every three dwelling units occupying floor area above the base height limit, at least one affordable dwelling unit must be integrated into the development. Dwelling units larger than 1,400 square feet (leasable/living area, excluding common hallways) qualify as two standard dwelling units. Note: Applicable floor area over base height limit refers to any floor-to-ceiling space of applicable dwelling units or shared recreational or amenity space that exceeds the base height limit established in Tables 19.42.020 and 19.42.030. See Figure 19.42.050 for an example.

2. For every 2,000 square feet of shared recreational or amenity space that is integrated into floor area that occupies space above the base height limit, at least one affordable dwelling must be integrated into the development.

Figure 19.42.050

Height bonus example—How affordable housing requirements are measured.

The example building in the R4 zone contains one floor that exceeds the base height limit. The table below illustrates what is included on each floor and the number of required affordable units that are required to be integrated.

Floor

Floor statistics

Number of required affordable units (to be integrated on any floor in the building)

5

2 dwelling units (average 2,250 sq. ft.) + 3,000 sq. ft. shared recreation/amenity space

= 2 affordable units min.

4

8 dwelling units (average 938 sq. ft.)

None required

3

10 dwelling units (average 750 sq. ft.)

2

10 dwelling units (average 750 sq. ft.)

1

10 dwelling units (average 750 sq. ft.)

Total

= 2 affordable units min.

3. Income Limit and Affordability.

a. Dwelling units that qualify as affordable housing must be affordable to households whose annual income does not exceed 50 percent of median income (see subsection (D)(3)(c) of this section) for rental units or 80 percent of median income for owner-occupied housing, adjusted for household size, and no more than 30 percent of monthly household income is paid for monthly housing expenses (see subsection (D)(3)(b) of this section).

b. Housing expenses for ownership include mortgage and mortgage insurance, property taxes, property insurance, and homeowner dues. Housing expenses for rental housing include rent and appropriate utility allowances.

c. The median income for the Mount Vernon-Anacortes Metropolitan Statistical Area (MSA) is determined by the Secretary of Housing and Urban Development under Section 8(f)(3) of the United States Housing Act of 1937, as amended. If programs under said Section 8(f)(3) are terminated, median income is determined under the method used by the Secretary prior to such termination. In the event that HUD no longer publishes median income figures for the Mount Vernon-Anacortes MSA, the city may use any other method for determining the Skagit County median income, adjusted for household size.

4. Duration. Rental and ownership units must serve only income-eligible households for a minimum period of 50 years from the date of the certificate of occupancy.

5. Tenure. The tenure of the affordable housing units (ownership or rental) must be the same as the tenure for the rest of the housing units in the development.

6. Affordability Agreement.

a. Prior to building permit issuance, an affordable housing agreement in a form approved by the Director and City Attorney must be recorded with the Skagit County Auditor’s office as a covenant running with the land and binding on the applicant, property owner, assigns, heirs and successors.

b. The agreement must address the level and duration of affordability, tenant qualifications, reporting, monitoring, and any other topics related to the provision of the affordable housing units.

c. The city may, at its sole discretion, establish a monitoring fee for the affordable units to cover the costs to the city to review and process documents to maintain compliance with income and affordability restrictions of the agreement.

7. Location. The affordable unit(s) must be located within the development and above grade (no basement units).

8. Size (Bedroom). The affordable housing units must consist of a range of number of bedrooms that is comparable to units in the overall development.

9. Size (Net Floor Area). The size of the affordable housing units, if smaller than the other units with the same number of bedrooms in the development, must be approved by the Director. If there is a proposal that the affordable units be smaller than the market rate units, in no case may the affordable housing units be less than 500 square feet for a studio unit, 600 square feet for a one-bedroom unit, 800 square feet for a two-bedroom unit, or 1,000 square feet for a three-bedroom unit.

10. Design. The exterior design of the affordable housing units must be compatible and comparable with the rest of the dwelling units in the building/development and must comply with design standards specified in AMC Chapter 19.63. The interior finish and quality of construction of the affordable housing units must at a minimum be comparable to entry-level rental or ownership housing in the city.

11. Timing/Phasing. The affordable housing units must be available for occupancy in a time frame comparable to the availability of the rest of the dwelling units in the development. (Ord. 4042 § 2 (Att. A), 2023; Ord. 3040 § 2 (Att. A), 2019)