City says density-bonus rules have produced 26 income-restricted units so far; program requires perpetual affordability

Principal Planner Rebecca told council the city's density-bonus program (codified in MMC 17.73, adopted by ordinance in 2019) is aimed at creating income-restricted housing in exchange for additional development density. She said the program has produced 14 dwelling units reserved for households earning 80% of area median income or below and that another 12 units are expected in the next few months, bringing the total to about 26 income-restricted units.

Rebecca described several projects that used the program: The Lofts (LaVenture Road) has 66 multifamily units with 10 reserved; a 411 21st Street project has 10 units, three of which will be affordable under the program; a Cleveland Street project has one affordable unit in a four-unit structure; JJ Place near Skagit Valley College will provide four affordable multifamily units; and the Mountain Gate subdivision will produce seven affordable units in duplexes. She said the program's income restrictions are written to remain in perpetuity — tied to the life of the structure — to avoid the expiration of affordability covenants.

"Since its adoption in 2019, we have 14 new dwelling units reserved exclusively for those earning 80% or below of the AMI, and we'll have another 12 dwelling units that will be created in the next few months," Rebecca said. She called the result "a small win" given the scale of local housing need and said staff will continue working with applicants to record the required legal agreements so the units will be reserved as intended.

The presentation was informational; no council action was required at the meeting. Rebecca offered to provide more detailed program mechanics to council members on request.