Affordable Housing Progress In Redmond

A multifamily property tax exemption (MFTE) program is authorized in chapter 84.14 RCW. in Redmond for the purpose of encouraging the production of affordable housing. 

Redmond offers an 8- year and 12-year property tax exemption program to developers to encourage affordable housing.  The 8-year program has been very successful. As of the first quarter of 2023, there are 5 constructed and occupied market-rate projects in the 8-year MFTE program, which contain 134 affordable units. 

To date, no market-rate developer has used the 12-year exemption. For the 12-year exemption, state statute requires that 20% of homes be affordable. Redmond requires this housing to be affordable between 60% and 85% of area median income. A pilot program would adjust those limits to between 80% and 115% as allowed by state statute to increase uptake of the 12-year exemption and thereby increase the supply of affordable homes.

-- Source:  Council Committee of the Whole memo, 6/12/2023