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Council amends public‑facility zoning language to allow Low‑Income Housing Tax Credit financing for Kennewick Housing Authority project
Summary
Council adopted an ordinance amending zoning code language so the Kennewick Housing Authority can use the Low‑Income Housing Tax Credit program and a limited‑liability partnership structure to finance construction of 58 affordable units on city‑owned land in the public‑facility zone.
The Kennewick City Council on June 3 adopted an ordinance that amends a table footnote in the public‑facility zoning rules to permit residential development financed through the Low‑Income Housing Tax Credit (LIHTC) program when the land is owned or controlled by the Kennewick Housing Authority or another public/governmental agency.
City staff explained the change was prompted by a development the Kennewick Housing Authority is pursuing: 58 affordable multifamily units on about 3.64 acres in a public‑facility zone that had been city‑owned. Under LIHTC financing, the building would be owned during the tax‑credit period by a limited‑liability partnership that includes investors; after the 15‑year credit period, ownership would transfer to the housing authority. Current municipal code language required that a public agency own the finished product, which made LIHTC financing infeasible for the project’s lenders.
Planning staff asked council to amend footnote 2 of KMC 18.12.010 A.1 to replace the phrase referring to ownership of the “finished product” with a requirement that “land” be owned and/or operated by the Kennewick Housing Authority or another public agency. City staff said the change preserves public ownership/control of the site while enabling LIHTC financing.
Council voted 7–0 to adopt the ordinance. Staff said the amendment would allow the housing authority to pursue LIHTC investors and construction financing while ensuring that the site’s ground remains in public hands and that developments meet required standards for residential zoning.
