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Sedro‑Woolley council adopts 25‑year affordability term for HB 1590 capital projects
Summary
After a lengthy debate about whether to require 50 years of affordability, the Sedro‑Woolley City Council voted to require 25 years for projects funded by the state sales‑tax capital program created by House Bill 1590. Staff will revise the request for proposals to reflect the council decision.
The Sedro‑Woolley City Council voted to require a 25‑year affordability period for projects funded from the city’s allocation of House Bill 1590 capital sales‑tax money.
City Administrator Charlie Bush introduced the agenda item as “the item on House Bill 15 90” and asked the council for direction on how long to require units to remain affordable. Staff had recommended a 50‑year term, but the council debated shorter periods for owner‑occupied accessory dwelling units (ADUs) and small cottage projects.
The debate focused on competing goals: reducing audit and legal risk by adopting a longer affordability term versus maximizing the number of units built by allowing shorter terms for small, lower‑cost projects. Mayor Pro Tem Henderson said the Department of Commerce had told the city that the statute did not mandate a specific term and suggested a shorter period would be appropriate for smaller projects. City Attorney Nikki noted Burlington’s interpretation that capital funds must be repaid if a project ceases to be affordable and read from state law examples about connection‑charge and impact‑fee recoupment.
Councilmembers discussed practical examples during the debate. One councilmember said ADUs and modular cottages could cost roughly $40,000 to $150,000 to construct and that a 50‑year requirement could exclude smaller, community‑based projects. Another councilmember argued that larger apartment projects could accept longer affordability terms.
After discussion, Councilman LaVaca moved to require a 25‑year affordability term for HB 1590 capital projects; a second was recorded and the motion passed. The council directed staff to revise the city’s request for proposals to reflect the new term and to form a council subcommittee to help vet proposals.
The council’s decision does not change other funding partners’ requirements; staff warned that other funding sources tied to a project can impose their own affordability terms and that, in some cases, capital funds are subject to repayment if affordability is later lost.
Looking ahead, staff said the revised RFP will return to council and that the city will include standard covenants requiring continued affordability and mechanisms for repayment if a covenant is released.
