City of Tacoma announcement.
TACOMA, Wash. – The City Council has passed Ordinance 28798 amending Chapter 6A.110 and Chapter 13.17 of the Municipal Code, relating to property tax exemptions for multi-family housing and mixed-use center development. The following changes to the Multi-Family Property Tax Exemption (MFTE) Program are set to go into effect in 90 days:
- Expansion of the 12-year and 20-year MFTE to residential target areas of Neighborhood Commercial Nodes along transit and existing mid-scale residential on corridors as defined through the Home in Tacoma process
- Expansion of the 12-year and 20-year MFTE not becoming available in the Neighborhood Commercial Nodes until a comprehensive review and update of the design standards for projects which include residential development in those commercial areas is completed
- Expansion of the 12-year and 20-year MFTE to areas rezoned as mid-scale through the Home in Tacoma process, once the rezoning is complete
- Implementation of elements of Senate Bill 5287 (Chapter 187, Laws of 2021) required in order to take action including use of a 20-year MFTE for approved projects, applications for 12-year extensions for projects under current exemption if affordability is maintained or added, and extra time to finish projects affected by COVID-19 (Note: Due to COVID-19 related construction delays, the City is authorized to extend the completion deadline for an additional five years for applicants that submitted original tax exemption applications prior to February 15, 2020. The five-year extension would begin immediately following the completion of any outstanding applications or previously authorized extensions, whichever is later.)
- Requirement that the 12-year and 20-year property tax exemption affordability level be at 70 percent of Pierce County Family Median Income
- Requirement that projects in residential target areas of Neighborhood Commercial Nodes along transit and existing mid-scale residential on corridors, which are located on a corner, must include at least 30 percent of the first floor space as commercial space, built per commercial building code and subject to the design standards of the applicable zoning district
On November 9, 2021, the Council had adopted Resolution 40866 as amended. The Council will revisit changes to the MFTE program in three years and make recommendations based on the number, location and type of new units created in that time period.
Details regarding the City’s MFTE program are available on the City’s website. Program questions can be directed to Debbie Bingham at email@example.com or (253) 591-5117.