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
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