1. A system development charge determined pursuant to BMC 15.12.175(A).

2. The connection fee for the specific property involved, as determined by the department of public works, to ensure that each connected property bears its equitable share of the cost of the system, plus interest pursuant to BMC 15.12.175(B).

1. If a water service is exchanged for a larger service, the system development charge shall be due and payable along with the water demand charge. Credit for previous services shall be given according to current rates.

2. If a water service is exchanged for a smaller service, no refund of the system development charge will be given.

3. If an abandoned service is reactivated, credit shall be given for the last service size in use. Flat rate single-family service will be considered a five-eighths-inch service. Value of the credit shall be the current charges for the service reactivated irrespective of whether a fee was ever collected.

1. The director of planning and community development, after consultation with the director of public works, may grant an exemption to a low-income housing project listed in an annual consolidated action plan approved by city council.

2. The city council may grant an exemption to a low-income housing project not included in an annual consolidated action plan.

3. The decision to grant, partially grant or deny an exemption shall be based on the public benefit of the specific project, the extent to which the applicant has sought other funding sources, the financial hardship to the project of paying the system development charge, the impacts of the project on public facilities and services, and the consistency of the project with adopted city plans and policies relating to low-income housing.

4. An exemption granted under this subsection must be conditioned upon requiring the developer to record a covenant approved by the director of planning and community development that prohibits using the property 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, and require that, if the property is converted to a use other than for low-income housing as defined in the covenant, the property owner must pay the applicable system development charge in effect at the time of any conversion. Covenants required by this subsection must be recorded with the Whatcom County auditor.

5. “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, for Bellingham, as reported by the United States Department of Housing and Urban Development.