Today, the Seattle City Council unanimously passed the Multifamily Tax Exemption (“MFTE”) Program 7. Program 6 expired earlier this year, so the renewal was anticipated by both renters and the development community.
Seattle’s MFTE program provides a 12-year property tax exemption on eligible multifamily housing in exchange for income- and rent-restricted units. Program 7 modifies the prior program and includes increased income and rent limits, new requirements for “alternate” bedrooms, revised incentives for two or more-bedroom units, and a sunset date of September 1, 2029, along with further changes. (See HCMP’s prior client alert on the bill that passed out of the Housing and Human Services Committee in September).
Councilmember Rinck expressed support for the bill, noting that MFTE is a valuable tool for providing workforce housing, a sentiment expressed by many councilmembers. Councilmember Nelson emphasized that the bill achieves three of the City’s primary goals: (1) incentivizing the production of housing, (2) incentivizing on-site affordable units, and (3) enabling more mixed-income housing development.
For more information about the MFTE program, please contact Holly Golden or Layla Khademi.