TO: Members of the City Council
FROM: Mayor Angela Birney
DEPARTMENT DIRECTOR CONTACT(S):
Planning and Community Development
Carol Helland
425-556-2107
DEPARTMENT STAFF:
Planning and Community Development
Seraphie Allen
Deputy Director
Planning and Community Development
Jeff Churchill
Long Range Planning Manager
Planning and Community Development
Ian Lefcourte
Senior Planner
TITLE:
title
Adoption of an Ordinance Establishing an Optional Pilot Program for the 12-Year Multifamily Housing Property Tax Exemption (MFTE) Program
1. Ordinance No. 3125: An Ordinance of the City of Redmond, Washington, Amending RMC 3.38, Multifamily Housing Property Tax Exemption, Relating to Establishment of a Pilot Program for the 12 Year Exemption, Providing for Severability, and Establishing an Effective Date
OVERVIEW STATEMENT:
recommendation
Staff recommends adoption of the ordinance in Attachment A to establish an optional pilot program for the 12-year MFTE program.
The multifamily property tax exemption program is authorized in Chapter 84.14 RCW. Redmond established its MFTE program in 2017 (Ordinance No. 2892) for the purpose of encouraging the production of affordable housing. Redmond offers an 8-year and 12-year program. The 8-year program has been very successful. As of June 2023, there are six constructed and occupied market-rate projects in the 8-year MFTE program, which contain 230 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. This pilot 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.
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