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61 <br /> <br />Strategy 2: Reduce cost and time burden for development of housing <br />Option Explanation <br />12. Adjust System Development <br />Charges (SDCs) program to <br />reduce development costs for <br />market-rate housing that are <br />smaller and lower cost. <br />Strategic Economics will provide a discussion of SDCs at Meeting 4 on <br />November 28. <br />12-A: Delay the collection of <br />SDCs until a property is <br />ready to receive its <br />certificate of occupancy. <br />12-B: Reduce SDCs for multi- <br />family developments in <br />the downtown and along <br />key corridors. <br />12-C: Reduce SDCs for ADUs. <br />12-D. Reduce SDCs for all <br />“missing middle” housing <br />types. <br />12-E: Place a cap on the SDC <br />waiver. <br />NEW <br />12-F: Scale SDCs to the size <br />and impact of what’s built. <br />NEW <br />13. Revise the land use appeal <br />process, with shared costs for <br />recovery of legal fees by the <br />prevailing party. <br />The cost and process of land use appeals varies depending on the <br />type of land use application and the appealing party. There is no <br />straightforward formula. <br />14. Revise the Multi-Unit <br />Property Tax Exemption <br />(MUPTE) program for market- <br />rate housing. <br />The MUPTE program exempts new multi-family housing <br />developments from property taxes of the construction value for up to <br />10 years (taxes are still due on the land). The exemption lowers the <br />operating costs for new developments in the early years of operation <br />and can help shift a new development from not financially feasible to <br />feasible. The program is currently active in the downtown and it <br />could be extended to other parts of the City, especially to encourage <br />development along major roads. <br /> <br />The primary identified drawback is that the City and other taxing <br />districts don’t collect taxes on the new development during the <br />exemption period. However, if new housing doesn’t get built, the City <br />never collects taxes on new development. <br /> <br />A recent assessment of the program found that local developers find <br />the program’s administrative requirements add cost and uncertainty. <br />14-A. Extend the MUPTE <br />boundary to include key <br />corridors (see glossary). <br />14-B. Simplify the criteria that <br />must be met to receive an <br />exemption. <br />December 10, 2018, Work Session - Item 2