A. No impact fees shall be imposed for the following:

1. Low-income housing projects that are constructed by public housing agencies or private nonprofit housing developers;

2. Low-income residential units, rented or purchased, that are dedicated and constructed by private developers;

3. Temporary placement shelters, relocation facilities and transitional housing facilities (such as transitional housing facilities for recovering alcoholics, prison or jail work release facilities, and temporary housing for homeless persons), that in the determination of the director of planning and community development have the potential for accommodating children who will attend public schools on a consistent basis. The decision of the director may be appealed pursuant to this chapter.

B. For purposes of this section, a low-income housing project unit or a low-income residential rental unit is one that has a maximum rent and a maximum income level for tenants equal to or less that 50 percent of the average of the median income, adjusted for family size, between the Seattle Metropolitan Statistical Area and the Bremerton Metropolitan Statistical Area as of the date of the application for construction of the unit. A low-income residential purchased unit is one that has a sales price of $130,000 or less for single family houses, and $95,000 or less for multi-family units. These maximum sale prices shall be adjusted by the Seattle CPI-U consumer price index each year, with 1992 being the base year. The purchaser’s family income cannot exceed 80 percent of the average median income, adjusted for family size, between the Seattle Metropolitan Statistical Area and the Bremerton Metropolitan Statistical Area as of the date of application for construction of the house or unit.

C. Impact fees for the projects and units exempted by this section shall be paid from public funds.

D. The department of planning and community development shall review requests for exemptions from impact fees under subsection A1 of this section pursuant to criteria and procedures adopted by administrative rule, and shall advise the developer in writing of the granting or denial of the request. In addition, the department shall notify the school district of all applications for exemptions when they are received and shall notify the school district when such requests are granted or denied.

E. When a low-income purchased unit is sold or rented to a person who does not qualify as a low-income purchaser or tenant, an amount equal to the impact fee on the date of the sale or rental shall be paid by the seller or the property owner to the city.

F. When a low-income purchased unit has received a certificate of occupancy, the director of finance and administrative services shall record a notice of the exemption and the income qualification requirements for such unit with the Kitsap County auditor. (Ord. 93-05 § 9, 1993)