The Multi-Family Housing Property Tax Exemption (MFTE) program began in 1995, codified as RCW 84.14, to incentivize residential development in urban centers, designated as “residential targeted areas,” for Washington’s largest cities. The program authorizes 8, 12 and 20-year property tax exemptions to encourage the development of multifamily housing.
In 2021, significant changes were made to the MFTE program. All cities and Clark, King, Kitsap, Pierce, and Snohomish counties may now offer an MFTE program.
Resources
The following resources are available to help local governments develop, adopt and administer MFTE programs. In the 2023-2025 biennium, Commerce has also been directed to develop an auditing program for MFTE projects.
- Application Process Overview for Program (PDF)
- Application (PDF)
- Exemption Agreement (PDF)
- Pro Forma (PDF)
- Compliance Manual (PDF)
- Lease-up Certification Report (PDF)
- Lease Rider (PDF)
- Annual Certification Report (PDF)
- Household Eligibility Certificate (PDF)
- Assessor MFTE Program Checklist (PDF)
- Seattle Example MFTE Unit Distribution, Comparability and Bedroom Criteria (PDF)
Reporting requirements and deadlines are established by RCW 84.14.100.
- 2023 MFTE Reporting Sheet (Smartsheet) – All jurisdictions
- 2023 MFTE Details Sheet (Excel) – Jurisdictions which issued final certificates of tax exemption between January 1, 2023 and December 31, 2023
- Fact Sheet: What is MFTE? (PDF)
- MFTE Guidance and Workbook Webinar: An informational webinar created for elected officials, appointed officials and other stakeholders at jurisdictions considering adoption of MFTE.
- MFTE Administrator’s Workbook (PDF)
- MFTE 99-year Affordability Covenant: Sample MFTE Covenant (Word) and Covenant Memo (PDF)
- MFTE Authorization RCW 84.14
- 2019 State Program Review (JLARC Report)
- Fact Sheet: What is Tax Shift? (PDF)
- Fact Sheet: What is AMI? (PDF)
- 2023 MFTE Legislative Report (PDF)
2021-2023 work products and updates
Workbook by section:
- Title Page – MFTE Workbook (PDF)
- Introduction – MFTE Workbook (PDF)
- Framework – MFTE Workbook (PDF)
- Initial Considerations – MFTE Workbook (PDF)
- Program Development – MFTE Workbook (PDF)
- Administering the Program – MFTE Workbook (PDF)
- Monitoring the Program – MFTE Workbook (PDF)
- Reviewing and Updating the Program – MFTE Workbook (PDF)
- Writing the Ordinance – MFTE Workbook (PDF)
- Conclusion – MFTE Workbook (PDF)
- Appendix A (Model Code) – MFTE Workbook (PDF)
- Appendix B (Sample Forms) – MFTE Workbook (Word)
Local MFTE Webpages
- Multi-Family Property Tax Exemption Program (MFTE) | Bremerton (bremertonwa.gov)
- Taxes and Incentives | Everett (everettwa.gov)
- MFTE Incentives | Lakewood (buildyourbetterhere.com)
- Multifamily Tax Exemption – Housing | Seattle (seattle.gov)
- Multifamily Property Tax Exemption (MFTE) Program | Shoreline (shorelinewa.gov)
- Multi-Family Tax Exemption | Spokane (spokanecity.org)
- Tax Incentives – Tacoma (cityoftacoma.org)
- Multi-Family Tax Exemption Program | Vancouver (cityofvancoucer.us)
- Multi-family Housing Tax Exemption | Wenatchee (wenatcheewa.gov)
Code Samples
- Bellingham-BMC 17.82
- Burien-BMC 19.45
- Camas-CMC 3.86
- Edmonds-EMC 3.38
- Kenmore-KMC 3.65
- Kirkland-KM 5.88
- Lake Stevens-LSMC 3.27
- Lakewood-LMC 3.64
- Lynnwood-LMC 3.82
- Olympia-OMC 5.86
- Port Orchard-POMC 3.48
- Seattle-SMC 5.73
- Shoreline-SMC 3.27
- Snohomish-SMC 3.50
- Snoqualmie-SMC 3.10
- Spokane-SMC 8.15
- Tacoma-TMC 6A.110
- Vancouver-VMC 3.22
- Walla Walla-WMC 2.28
- Wenatchee-WMC 5.88
- Woodinville-WMC 3.43
Recent code updates
- Issaquah 2020 Target Area Designation (PDF)
- Ferndale 2021 Update to Extend MFTE Program (PDF)
- Renton 2021 Update to Add 20 Year and Extend Program (PDF)
- Seattle 2021 Update to Add 20 Year and Update Program (PDF)