Multi-Family Housing Property Tax Exemption Program
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 program, find a summary at this link. All cities and Clark, King, Kitsap, Pierce, and Snohomish counties may now offer an MFTE program.
2021-2023 MFTE Program Work Plan
The Washington Department of Commerce was charged by the Washington State Legislature (through SB 5287 and a budget proviso) to develop guidance, complete a study, evaluate the impact of MFTE programs on cities and develop an MFTE auditing program.
As part of this process, information and updates are being shared on this page as progress is made on the required elements. Commerce will use this work to answer frequently asked questions, support community planning, and support implementation and operating of MFTE programs throughout the state.
The most recent work product developed by Commerce is an informational webinar created for elected officials, appointed officials and other stakeholders at jurisdictions considering adoption of MTFE. To access the information, click on the link to the recording.
This page will have continuous updates on the program so check back often.
2022 MFTE Reporting Forms
The reporting deadline is April 1, 2023.
- MFTE Reporting form – All MFTE jurisdictions are required to submit this form.
- MFTE Project Detail Sheet (Excel) – To be submitted by jurisdictions which issued a final certificate of tax exemption or an extension during 2022.
Resources
- MFTE Authorization RCW 84.14
- 2019 State Program Review (JLARC Report)
- Fact Sheet: What is MFTE? (PDF)
- Fact Sheet: What is Tax Shift? (PDF)
- Fact Sheet: What is AMI? (PDF)
Quick Links
- Growth Management
- Governor's Smart Communities Awards Program
- Collaborative Roadmap Phase III
- Climate Program
- Planning for Housing
- GMA Laws and Rules
- GMA Periodic Updates
- Growth Management Grants
- Growth Management Topics
- Guidebooks and Resources
- Civilian-Military Compatibility
- Defense Community Compatibility
- Regional Planners' Forums
- Short Course on Local Planning
- Submitting Materials to the State for Review
Commerce Housing Pages
Municipal Research and Services Center
Need Help?
Mary M. Reinbold (she/her) AICP
Senior Planner
mary.reinbold@commerce.wa.gov
(509) 638-5449
Local Implementation
Bellingham-BMC 17.82 (external link)
Burien-BMC 19.45 (external link)
Camas-CMC 3.86 (external link)
Edmonds-EMC 3.38 (external link)
Kenmore-KMC 3.65 (external link)
Kirkland-KM 5.88 (external link)
Lake Stevens-LSMC 3.27 (external link)
Lakewood-LMC 3.64 (external link)
Lynnwood-LMC 3.82 (external link)
Olympia-OMC 5.86 (external link)
Port Orchard-POMC 3.48 (external link)
Seattle-SMC 5.72 (external link)
Shoreline-SMC 3.27 (external link)
Snohomish-SMC 3.50 (external link)
Snoqualmie-SMC 3.10 (external link)
Spokane-SMC 8.15 (external link)
Tacoma-TMC 6A.110 (external link)
Vancouver-VMC 3.22 (external link)
Walla Walla-WMC 2.28 (external link)
Wenatchee-WMC 5.88 (external link)
Woodinville-WMC 3.43 (external link)
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)
Tacoma Code Updates 2022
Equity Index Resolution No. 40866 (PDF)
Equity Index Council Action Memorandum (PDF)
Implementing 2021 changes to the MFTE program (PDF)
Implementing TOD and Commercial element to the MFTE program (PDF)
Removing an RTA (PDF)
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)
Information from Commerce
MFTE Workbook – Full (PDF)
MTFE Workbook Feedback Form
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)
MFTE Covenant Memo (PDF)
Sample MFTE Covenant (Word)
MFTE Study and Guidance Initial Interview Guide (PDF)
MFTE Study and Guidance Project Engagement Strategy (PDF)
MFTE Study and Guidance Project Workplan (PDF)
MFTE Work Plan 2021 (PDF)
MFTE Guidance RFP (PDF)
MFTE Stakeholder Webinar
MFTE Stakeholder Webinar Slides (Power Point)