3.24.160 Fee calculation – Exemptions, waivers, or reductions

3.24.160 Fee calculation – Exemptions, waivers, or reductions.

(1) Commercial Development. A “commercial use,” as defined in SMC 17.20.040, is eligible for a 10 percent reduction in the impact fee due to the economic development benefits derived from new sales taxes and increased property values.

(2) Reuse of Existing Structures in the MBI, MBII and Future Downtown Mixed-Use Corridor. A commercial project in the main street zones (MBI, MBII and future downtown mixed-use corridor) that meets the criteria set forth below is exempt from the impact fee. This exemption does not apply to new buildings or to new projects that include demolition of the existing building and does not affect the imposition and collection of any other applicable city impact fees, hook-up fees, or application fees.

(a) The project utilizes an existing building constructed prior to 1980 according to the Snohomish County assessor’s database, and requires building permits for remodel, expansion, or improvement;

(b) The original structure must be intact before and after the improvements;

(c) The total building square footage of the project, following remodel, expansion or improvement, including any new additions and all buildings on the property, is less than 10,000 square feet;

(d) The valuation of work on the building must exceed 25 percent of the assessed value of the building according to the Snohomish County assessor’s database; and

(e) The project must include improvement of any adjacent street frontage, including curb, gutter, sidewalks, and street trees to current code and standards, and must include a connecting walkway meeting ADA standards to the main entrance of the building. Any or a portion of these improvements may be waived or modified, if the community development director determines that existing conditions meet the current standards for these improvements.

(3) Historic Single-Family Lots. Development on individual single-family zoned lots and parcels created prior to the effective date of Chapter 58.17 RCW on July 1, 1969, are eligible for a 35 percent reduction in the impact fee. This incentive is limited to development of one single-family residence per lot or parcel existing prior to July 1, 1969.

(a) The impact fee may be reduced by 80 percent if the developer records a covenant, in a form approved by the director, that prohibits use of the property for any purpose other than for low-income housing.

(b) At a minimum, the covenant must address price restrictions and household income limits for the low-income housing, and the property must be maintained for low-income housing for a minimum of 10 years. After the minimum period, to convert the property to a use other than low-income housing, the property owner must pay the applicable impact fee in effect at the time of conversion.

(d) For purposes of this section, “low-income housing” means housing with a monthly housing expense that is no greater than 30 percent of 80 percent of the median family income adjusted for family size in Snohomish County as reported by the United States Department of Housing and Urban Development.

(i) For home buyers the monthly housing expense must be no greater than 30 percent of 80 percent of the median family income at the time of closing.

(ii) For renters the monthly housing expense must be no greater than 30 percent of 80 percent of the median family income at the time of lease signing, including lease renewals.

(5) Accessory Dwelling Units. Per RCW 36.70A.681, the impact fee for an accessory dwelling unit shall not exceed 50 percent of the impact fee that would be imposed on the principal unit. The actual fee amount shall be set by council resolution. (Ord. 1520 § 1 (Exh. A), 2023).