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.

MFTE 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.
Resources
- 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)
Quick Links
- Growth Management
- Governor's Smart Communities Awards
- Climate Program
- Planning for Housing
- Laws and Rules - Growth Management Act
- Periodic Updates - Growth Management Act
- Growth Management Grants
- Growth Management Topics
- Guidebooks and Resources
- Civilian-Military Compatibility
- Defense Community Compatibility
- Integrated Stormwater and Watershed Planning
- Regional Planners' Forums
- Short Course on Local Planning
- Submitting Materials to the State
- Tribal Planning Coordination
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 5.73 (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 Administrator’s 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)