15.16.040 Exemption, credits and adjustments – Authorized.
The following exemption, credits and adjustments are authorized:
A. Partial Exemption from System Development Charge for Low-Income Housing Developments. Upon application by the owner, a partial exemption of not more than 80 percent of the system development charge imposed in this chapter may be granted to a low-income housing development, as defined below:
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 storm and surface water utility system development charges 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.
B. Reduced Rates for Low-Income Senior and Disabled Citizens. The surface and storm water utility service rates imposed by this chapter may be reduced for qualified low-income senior or disabled persons pursuant to BMC 15.04.070.
C. Credits for Qualified Properties with Special Discharge Limits. Properties or portions of properties that meet one of the listed criteria below to the city’s satisfaction shall be eligible for a reduction of 70 percent of the monthly fee (prior to application of any reduction or credit) charged under BMC 15.16.030 as currently enacted or hereafter amended.
1. Discharge of storm water is directly to marine waters or waters under tidal influence with no connection to city systems; or
2. Discharge of storm water is to an infiltration facility meeting the requirements of the Department of Ecology for storm water treatment and ground water protection. The facility shall be capable of fully infiltrating the 100-year developed storm within the subject property. The design, performance and construction shall be certified by a licensed and qualified engineer with the state of Washington.
D. Public Education Credits. Publicly funded primary and secondary educational institutions that provide a curriculum in environmental science shall be eligible for a reduction of the monthly fee charged under BMC 15.16.030 as currently enacted or hereafter amended. The amount of the credit shall be established by contract between the educational institution(s) and the city; but in no case shall said credit exceed 70 percent for the calendar year beginning January 1, 2021, 56 percent for the calendar year beginning January 1, 2022, 42 percent for the calendar year beginning January 1, 2023, 28 percent for the calendar year beginning January 1, 2024, 14 percent for the calendar year beginning January 1, 2025, of the amount of the monthly fee (prior to application of any reduction or credit) charged under BMC 15.16.030 as currently enacted or hereafter amended. The public education credit is not available after January 1, 2026. The credit shall be calculated and applied after application of any other credit or adjustment from this section. The curriculum requirements shall be set forth in the contract and shall include, at a minimum, information on the cause and effects of storm water pollution.
E. Credit for Permissive Rainwater Harvesting Systems. Any new or remodeled commercial building that utilizes a permissive rainwater harvesting system to offset potable water use shall be eligible for a 10 percent reduction in the monthly fee for the roof area used for rainwater harvesting. Areas other than the roof area are subject to the regular rate. Rainwater harvesting systems shall be properly sized to utilize the available roof surface of the building.
F. Infill Incentive Program Reduction. The surface and stormwater utility system development charge imposed by this chapter may be reduced for qualifying projects in targeted urban villages pursuant to BMC 20.37.030.
G. Hard Surface Area Adjustment. Property owners may apply to the city for a hard-surface-area adjustment based on survey data or other reliable information demonstrating to the finance director’s reasonable satisfaction that an adjustment is warranted. [Ord. 2021-04-014 § 3; Ord. 2020-11-031 § 1; Ord. 2017-03-009 § 3; Ord. 2015-12-048 § 5; Ord. 2015-07-029 § 6; Ord. 2006-05-047; Ord. 2001-02-007; Ord. 10056 § 1, 1990].