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Ordinance 43991 ORDINANCE NO. 4399 AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, ESTABLISHING AN INTERIM REGULATION RELATED TO IMPACT FEES, SETTING ONE YEAR AS THE EFFECTIVE PERIOD OF THE INTERIM REGULATION AND ADOPTING A WORK PLAN WHEREAS, RCW 36.70A.681 limits cities’ ability to charge impact fees for the development of accessory dwelling units to those that are fifty percent of the principal unit; and WHEREAS, RCW 82.02.060 requires cities to use an impact fee schedule that reflect[s] the proportionate impact of new housing units, including multifamily and condominium units, based on the square footage, number of bedrooms, or trips generated, in a housing unit in order to produce a proportionally lower impact fee for smaller housing units; and WHEREAS, the city adopted its park impact fees in 2013 and has not updated those fees since 2014; and WHEREAS, it is appropriate to apply a CPI adjustment to the impact fees that were established in 2013; and WHEREAS, the city intends to commission an impact fee study over the course of the next year; and WHEREAS, the city would like to maximize the exemptions that are allowed under state law as long as such exemptions do not require the use of other city funds; and WHEREAS, it is appropriate to make these changes on an interim basis while that study is being performed; and WHEREAS, it will take about a year for the City to complete a new impact fee study; and WHEREAS, the city council desires to adopt the following interim regulation to temporarily increase impact fees while this work can be done; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EDMONDS DOES ORDAIN AS FOLLOWS: Section 1. Exemptions. ECC 3.36.040, entitled “Exemptions,” is hereby amended to read as follows (new text is shown in underline; deleted text is shown in strikethrough): 2 3.36.040 Exemptions. A. Except as provided for below, the following shall be exempted from the payment of all impact fees under this chapter: 1. Alteration of an existing nonresidential structure that does not involve a change in use and does not expand the usable space or add any residential units; 2. Miscellaneous improvements that do not expand usable space or add any residential units, including, but not limited to, fences, walls, swimming pools, and signs; 3. Demolition or moving of a structure; 4. Expansion of an existing structure that results in the addition of 100 square feet or less of gross floor area; 5. Replacement of a structure with a new structure of the same size and use at the same site or lot when a building permit application for such replacement is submitted to the city within 12 months of the demolition or destruction of the prior structure. Replacement of a structure with a new structure of the same size shall be interpreted to include any structure for which the gross square footage of the building will not be increased by more than 100 square feet; or 6. Alterations, expansions, enlargement, remodeling, rehabilitation or conversion of an existing dwelling unit where no additional dwelling units are created and the use is not changed. B. Low-income housing units shall be exempt from paying 80 percent of the street impact fees to the extent the units satisfy this subsection. Such exemption shall be conditioned upon the developer recording a covenant that prohibits using the low-income housing units for any purpose other than for low-income housing. At a minimum, the covenant must address price restrictions and household income limits for the low-income housing development and, that if the property is converted to a use other than for low- income housing, the property owner must pay the applicable impact fees in effect at the time of conversion. The covenant shall also require the owner to submit an annual report to the city along with supporting documentation that shows that the low-income units are continuing to be rented in compliance with the covenant. The covenant shall be an obligation that runs with the land upon which the housing is located. The covenant shall 3 be in a form acceptable to the city attorney and shall be recorded upon the developer’s payment of the remaining 20 percent of the street impact fee. C. Except as provided for below, the following shall be exempted from the payment of park impact fees under this chapter: 1. Low-income housing provided by nonprofit organizations such as, but not limited to, Habitat for Humanity. Owners of low-income single-family dwelling units, condominiums and other low-income housing shall execute and record a lien against the property, in favor of the city, for a period of 10 years guaranteeing that the dwelling unit will continue to be used for low-income housing or that impact fees from which the low-income housing is exempted, plus interest, shall be paid. The lien against the property shall be subordinate only to the lien for general taxes. In the event that the development is no longer used for low-income rental housing, the owner shall pay the city the impact fee from which the owner or any prior owner was exempt, plus interest at the statutory rate. Any claim for an exemption for low- income owner occupied housing must be made no later than the time of application for a building permit. Any claim not so made shall be deemed waived. D. Early learning facilities shall be exempt from paying 80100 percent of street and park impact fees; provided, that the early learning facility satisfies the conditions of this subsection. Such exemption shall be conditioned upon the developer recording a covenant that requires that at least 25 percent of the children and families using the early learning facility qualify for state subsidized child care, including early childhood education and assistance under Chapter 43.216 RCW, and that provides that if the property is converted to a use other than for an early learning facility, the property owner must pay the applicable impact fees in effect at the time of conversion, and that also provides that if at any point during a calendar year the early learning facility does not achieve the required percentage of children and families qualified for state subsidized child care using the early learning facility, the property owner must pay the remaining impact fee that would have been imposed on the development had there not been an exemption. The covenant shall also require the owner to submit an annual report to the city along with supporting documentation that shows that the early learning facility is in compliance with the covenant. The covenant shall be an obligation that runs with the land upon which the early learning facility is located. The covenant shall be in a form acceptable to the city attorney and shall be recorded upon the developer’s payment of the 4 remaining 20 percent of the impact fees. D.E. The director shall be authorized to determine whether a particular development activity falls within an exemption identified in this section, in any other section, or under other applicable law. Determinations of the director shall be in writing and shall be subject to the appeals procedures set forth in ECC 3.36.070. [Ord. 4360 § 1 (Exh. A), 2024; Ord. 4268 § 1, 2022; Ord. 4048 § 1, 2016; Ord. 4037 § 1 (Att. A), 2016; Ord. 3934 § 1 (Exh. A), 2013]. Section 2. Park Impact Fee Rates. ECC 3.36.120, entitled “Park impact fee rates,” is hereby amended to read as follows (new text is shown in underline; deleted text is shown in strikethrough): 3.36.120 Park impact fee rates. The park impact fee rates in this section are generated from the formula for calculating impact fees set forth in the rate study, which is incorporated herein by reference. Except as otherwise provided for independent fee calculations in ECC 3.36.130, exemptions in ECC 3.36.040 and credits in ECC 3.36.050, all new developments in the city will be charged the park impact fee applicable to the type of development as follows: A. Effective October September 1, 20142025: 1. Single-family house: $2,734.05 per dwelling unit. Residential development: $1.35 per square foot 2. Accessory dwelling units: $1,367.03 per dwelling unit. ADUs shall be charged the same rate per square foot as other residential development, PROVIDED THAT the total impact fee for an ADU may not be more than fifty percent of the impact fees that would be charged against the principal unit on the same lot. Where the principal unit and an accessory unit are constructed at the same time, the largest unit shall be considered the principal unit for impact fee purposes. Where an accessory unit is being added to a lot that already has a principal unit, the remaining square footage of the principal unit, after accounting for any reduced square footage of the principal 5 unit for the purposes of creating the accessory unit, shall be the baseline for determining the fifty percent calculation on the impact fees. 3. Multifamily residential housing: $2,340.16 per dwelling unit. 4. Nonresidential development: $1.34 $1.97 per square foot. [Ord. 4360 § 1 (Exh. A), 2024; Ord. 4048 § 1, 2016; Ord. 4037 § 1 (Att. A), 2016; Ord. 3934 § 1 (Exh. A), 2013]. Section 3. Duration of Interim Regulations. As long as the City holds a public hearing on the interim regulations, the interim regulations shall not terminate until one year after the effective date of this ordinance, unless it is repealed sooner. The city council hereby adopts the work plan attached as Exhibit A hereto to justify the one-year period of this interim ordinance pursuant to RCW 36.70A.390. Section 4. Public Hearing on Interim regulations. Pursuant to RCW 36.70A.390 and RCW 35A.63.220, the City Council shall hold a public hearing on this interim regulation within sixty (60) days of its adoption. In this case, the hearing shall be held on August 19, 2025, unless the city council, by subsequently adopted resolution, provides for a different hearing date. Section 5. Findings of Fact. The city council hereby incorporates by reference and adopts the whereas clauses above as its findings of fact justifying the adoption of this ordinance. Section 6. Severability. If any section, sentence, clause or phrase of this Ordinance should be held to be unconstitutional or unlawful by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this Ordinance. Section 7. Effective Date. This ordinance, being an exercise of a power specifically delegated to the City legislative body, is not subject to referendum and shall take effect five (5) days after passage and publication of an approved summary thereof consisting of the title. APPROVED: MAYORM ~ A TIBST/ AUTHENTICATED: C£is~SEY APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY: BY~ JEFF'TARAMY FILED WITH THE CITY CLERK: - PASSED BY THE CITY COUNCIL: PUBLISHED: EFFECTIVE DA TE: ORDINANCE NO. July 17 , 2025 July 22 2025 July 25 2025 July 30 2025 4399 6 7 SUMMARY OF ORDINANCE NO. 4399 of the City of Edmonds, Washington On the 22nd day of July, 2025, the City Council of the City of Edmonds, passed Ordinance No. 4399. A summary of the content of said ordinance, consisting of the title, provides as follows: AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, ESTABLISHING AN INTERIM REGULATION RELATED TO IMPACT FEES, SETTING ONE YEAR AS THE EFFECTIVE PERIOD OF THE INTERIM REGULATION AND ADOPTING A WORK PLAN The full text of this Ordinance will be mailed upon request. DATED this 22nd day of July, 2025. CITY CLERK, SCOTT PASSEY