City Code Violations Regarding ADUs - Sedro Woolley Washington

[Matt Joplin]

Hello,

My name is Matt and I am a BRRRR investor in Sedro-Woolley, a small town located in Skagit County Washington. I am disputing the city right now and am being unfairly pressured regarding their perceived usage of a property of mine and they are threatening me with hefty fines if I don't dismantle a second kitchen and other components of my home. My story, even if summarized, is quite long so I will just provide some quick notes. I would be happy to provide greater detail and the actual documents if anyone is interested in looking into this further with me. I am feeling like I am in a tough spot and am getting stressed out by all of this. I am grateful for any recommendations or references you may be able to provide to help me minimize the impact to my home and family.

What I Could Use Help With:

 - Any general recommendation you may have

 - Any referrals you may have for an attorney or other professionals who could help me regarding code law.

The Property:

 -A 2200 square foot 3 bed, 3 bath single family residence located in the city limits of Sedro Woolley

 - A complete remodel was just finalized this month under permit which was obtained in 2019

 - The house was remodeled by the previous owners in 2007 where they added a second story where there is bedroom, living room, bathroom with washer and dryer, and a kitchenette with a 4 burner cook top, an over the range microwave, sink and refrigerator

 - To this date, I have not rented out the property and we currently owner occupy.

- Originally, we had planned to House Hack this property living in the lower 1600 sqft while renting the upstairs out to a tenant.  We have done this successfully before and the process was positively lifechanging.  

 - We are now looking to relocate to Anacortes Washington in less than a year's time and will not be able to rent both units if we don't owner occupy

Key Points From The Notice of Violation Received from the City

- Violation 1: "Unpermitted second unit in a portion of a single family home."  "The building has two separate dwelling units; one main unit; and a second unit upstairs that has a separate electrical meter, bathroom, cook surface, mounted (above the range type) microwave and an entrance that allows the unit to be accessed independently from the main residential unit."

- Violation 2: "Unpermitted existence of second dwelling unit on a parcel zoned Resididential-7, one single family residence per lot, one duplex per lot 9,000 sqft or greater"

 - Required Actions: 1. By 4/26/22 propose a plan to remove elements of the second dwelling unit that will eliminate the existence of the second dwelling unit.  2. By 5/12/22 remove the unpermitted improvements that constitute a second dwelling unit and remove the second electrical meter

- Alternative Action: By 4/26/22 Apply for an Accessory Dwelling Unit (ADU) permit

Consequences

- Maximum monetary penalty for each separate violation: $1000 for the first week and $500 / Day thereafter

My Objections

- The kitchen was existing in the house when we bought it.  

 - The sellers on their disclosure form marked that permits were obtained and that final inspections were completed.  

 - The electrical previously completed for the upstairs addition was inspected and the state's stickers are intact on the electrical panels

- When I asked the city to provide me with the permits for the remodel done by the previous owners the city told me "they were having trouble locating them"

 - To the best of my  research, the city's code and International Residential Code do not limit the number of cooking provisions, entryways, bathrooms, or electrical meters, on a single family house.  

 - I do not have an ADU. By the city's definition and ADU is auxiliary and separate from the main dwelling by "detachment or a solid dividing wall."  What they are calling an ADU is simply the upstairs of my house.  Their argument is that I could build a wall or block off that space.  This is just silly...Until I have broken any rule or law...I haven't broken any rule or law...

- If we permit the house as having an ADU we will only be able to rent the ADU if we live in the house. We are hoping to move to another town in less than a year.

- If we permit an ADU we have to go on record agreeing to never use the house as a short term rental. This forever eliminates the possibility of us renting out all or a portion of the house on Airbnb, vrbo, etc.

- To permit an ADU will cost $10,000.00 in fees and an additional $98.00 per month for garbage and sewer.

- If we were to permit an ADU, we would not breakeven for 12+ months given our current market rates for rentals

- If we permit an ADU we will be on record saying we will always owner occupy the house and if code or law changes in our favor, I fear that I may not be able to rent both units.

Desired Outcome

- I want the city to remove their code violation and any fees assed from the records

- I originally wanted to rent out the upstairs of my house.  With how the city is reacting to all of this I don't think I want to now even if it is within my rights.  I am more interested in moving then renting the entire house out as a whole.  

- Permit my home as a duplex if I could.  This is wishful thinking and with how much resistance I am getting from the city already, I don't think I will even try.  Code does allow for a duplex in the zoning where my house is located.  The minimum lot size is 9000 sqft and my lot is 8712 according to the county's website.  It is possible that a professional survey might find that my lot is actually bigger.  It might also be possible to purchase the difference from one of my neighbors on paper but leave the fences in place.  

Actions Taken So far

- Tried to work with the city Planner / Building Official who is bringing these charges against me to no avail.  

- Explained myself to the city Administrator and asked for help in this situation

- Met with the city Planner / Building Official and the City Administrator together to find that they were going to take the same side.  

- Emailed the Mayor of the city who explained to me that she is aware of my case and that she and the city's attorney are siding with the city Planner / Building Official

- Asked the city Commissioner for my ward if they could help me.  I am awaiting his response.  

- Responded to the Mayor asking for the Planner and city Attorney to justify their code violation the issued based upon the fact that I cannot have an ADU since it isn't separated from the rest of my living space. I also asked them to support the claims that a single family house cannot have more than one electrical meter, cooking location, etc. I am still waiting for their reply.

- I have started looking for local real estate attorneys but I have not found one yet.   I do have a meeting setup to discuss my issues with one this Thursday. 

Thank you again for reading this and for any recommendations you can offer.  I have found this whole issue offensive and draining.  My family and I were excited to live in this home when we bought it.  We have taken an eyesore of a home and turned it into a beautiful place to raise our family.  We have fixed and lived in three other homes in the city of Sedro Woolley all but 1 of which were housed by people with criminal and drug issues.  All of our neighbors have appreciated our presence and the workmanship of our projects.  Unfortunately the stigma our city has, is still there for a reason and we are tired of being the family that raises the average in each neighborhood we have resided.  The frustrating thing about this is we exceeded all of our inspections and the house is up to current code and is now safer than it was before.  This is not an issue of loss of property, human safety, or the protection of the quality of life in Sedro Woolley.  It is an issue of ego, power, and compliance.  

Sincerely,

Matt