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HomeMy WebLinkAbout2025-004 Ordinance amending the City of Yakima Municipal Code Section 7.92.040, Incentive program for water and/or wastewater connection chargesAN ORDINANCE ORDINANCE NO. 2025-004 amending the City of Yakima Municipal Code Section 7.92.040, Incentive program for water and/or wastewater connection charges. WHEREAS, the City Council previously passed an ordinance imposing a sales and use tax for affordable and supportive housing under YMC 3.78.065; and WHEREAS, the funds retained from that sales and use tax, at the rate of 0.0073 percent, were part of the Affordable Housing Incentive Program adopted in YMC 7.92, where additional funds were deposited from state and federal programs providing funding to connect affordable housing units to City utilities; and WHEREAS, the City Council would like more flexibility in using the funds gained through the sales and use tax for affordable housing, as allowed by RCW 82.14.540; and WHEREAS, to gain that flexibility, the City Council wishes to amend YMC 7.92.040 to provide that the Council may, but is not required to, provide funding to the Affordable Housing Incentive Program through the sales and use tax adopted in YMC 3.78.065; and WHEREAS, the City Council of the City of Yakima finds it is in the best interest of the City and its residents to have flexibility to use the sales and use tax money for any allowable use under RCW 82.14.540; now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. Section 7.92.040 of the Yakima Municipal Code shall be amended to read as follows: 7.92.040 Incentive program for water and/or wastewater connection charges. (a) There is created an incentive program for applicants meeting the affordable housing requirement in YMC 7.92.030 wherein applicants may apply for a grant from the incentive program fund to pay for some or all of the connection fees for water and/or wastewater utilities. (b) Applicants may apply for a grant for the entire water and/or wastewater connection fees if the development is one hundred percent affordable housing, as defined herein. (c) If the development is less than one hundred percent affordable, the applicant may apply for a grant for a percentage of the water and/or wastewater connection fees which is the same or less than the percentage of units in the development that are affordable, as defined herein. For example, if fifty percent of the units are affordable, then the applicant may apply for a grant to pay for up to fifty percent of the water and/or wastewater connection fees. (d) The incentive program may be funded in part by sales and use tax retained pursuant to YMC 3.78.065. The city council may place funds into the incentive program when it deems appropriate. There is no guarantee that there will be funds available in any given year for the incentive program and applicants are not entitled to participate in the incentive program. 1 (e) The incentive program is available on a first -come, first -serve basis. There will be no opportunity to put a project on a "wait list" or otherwise try to save funds for certain projects. (Ord. 2022-003 § 1, 2022). Section 2. This ordinance shall be in full force and effect 30 days after its passage, approval, and publication as provided by law and by the City Charter. 2025. PASSED BY THE CITY COUNCIL, signed and approved this 18th day of February, ATTEST: 4 Patricia Byers, ayor Brandy grad Publication Date: February 22, 2025 Effective Date:March 24, 2025 1 ORDINANCE NO. 2025-_____ AN ORDINANCE amending the City of Yakima Municipal Code Section 7.92.040, Incentive program for water and/or wastewater connection charges. WHEREAS, the City Council previously passed an ordinance imposing a sales and use tax for affordable and supportive housing under YMC 3.78.065; and WHEREAS, the funds retained from that sales and use tax, at the rate of 0.0073 percent, were part of the Affordable Housing Incentive Program adopted in YMC 7.92, where additional funds were deposited from state and federal programs providing funding to connect affordable housing units to City utilities; and WHEREAS, the City Council would like more flexibility in using the funds gained through the sales and use tax for affordable housing, as allowed by RCW 82.14.540; and WHEREAS, to gain that flexibility, the City Council wishes to amend YMC 7.92.040 to provide that the Council may, but is not required to, provide funding to the Affordable Housing Incentive Program through the sales and use tax adopted in YMC 3.78.065; and WHEREAS, the City Council of the City of Yakima finds it is in the best interest of the City and its residents to have flexibility to use the sales and use tax money for any allowable use under RCW 82.14.540; now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. Section 7.92.040 of the Yakima Municipal Code shall be amended to read as follows: 7.92.040 Incentive program for water and/or wastewater connection charges. (a) There is created an incentive program for applicants meeting the affordable housing requirement in YMC 7.92.030 wherein applicants may apply for a grant from the incentive program fund to pay for some or all of the connection fees for water and/or wastewater utilities. (b) Applicants may apply for a grant for the entire water and/or wastewater connection fees if the development is one hundred percent affordable housing, as defined herein. (c) If the development is less than one hundred percent affordable, the applicant may apply for a grant for a percentage of the water and/or wastewater connection fees which is the same or less than the percentage of units in the development that are affordable, as defined herein. For example, if fifty percent of the units are affordable, then the applicant may apply for a grant to pay for up to fifty percent of the water and/or wastewater connection fees. (d) The incentive program is may be funded in part by sales and use tax retained pursuant to YMC 3.78.065. The city council may place additional funds into the incentive program when it deems appropriate. There is no guarantee that there will be funds available in any given year for the incentive program and applicants are not entitled to participate in the incentive program. 2 (e) The incentive program is available on a first-come, first-serve basis. There will be no opportunity to put a project on a “wait list” or otherwise try to save funds for certain projects. (Ord. 2022-003 § 1, 2022). Section 2. This ordinance shall be in full force and effect 30 days after its passage, approval, and publication as provided by law and by the City Charter. PASSED BY THE CITY COUNCIL, signed and approved this 18th day of February, 2025. ATTEST: Patricia Byers, Mayor Rosalinda Ibarra, City Clerk Publication Date: Effective Date: ITEM TITLE: BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGEN r A STATEMENT Item No. 9.E. For Meeting of: February 18, 2025 Ordinance amending the City of Yakima Municipal Code Section 7.92.040, Incentive program for water and/or wastewater connection charges SUBMITTED BY: Sara Watkins, City Attorney SUMMARY EXPLANATION: Council directed staff to return to council with ordinance language that would allow the Council to utilize the 1406 money from the affordable housing sales and use tax, for all of the uses outlined in state statute (RCW 82.14.540). The current Affordable Housing Incentive Program, found in YMC 7.92, has the 1406 money being used for the incentive program. The proposed amendment to YMC 7.92.040 would make using the 1406 money optional, rather than required, for the Affordable Housing Incentive Program. Notably, this Program was created to comply with grant requirements for the CHIP grants that you have approved for a number of large affordable housing projects. Leaving the Program in place allows the City to fund it with grant money as received, or with other money as the Council deems appropriate. It provides the flexibility to use the 1406 money in other ways. YMC 3.78.065 and YMC 3.78.067 are included with these documents. Those ordinances already give the City Council the authority it has under the state statute to use the sales and use tax it is retaining for the purposes outlined in the statute. As such, another ordinance is not necessary —the authority has already been granted to the City. ITEM BUDGETED: No STRATEGIC PRIORITY 24-25: A Thriving Yakima RECOMMENDATION: Pass Ordinance. ATTACHMENTS: Ord-7.92.040_redline. pdf Ord-7.92.040 Final.doc YMC 3.78.065 & 3.78.067.docx