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)

Reporting

The reporting deadline is April 1, 2024. Reporting requirements and deadlines are established by RCW 84.14.100.

2023 MFTE Reporting Sheet – All jurisdictions
2023 MFTE Details Sheet – Jurisdictions which issued final certificates of tax exemption between January 1, 2023 and December 31, 2023

Quick Links

Commerce Housing Pages

Homeless Assistance
Foreclosure Help
Mobile Home Parks Closing
Office of Homeless Youth
Planning for Housing

Municipal Research and Services Center

Affordable Housing Funding Sources
Infill Development
Techniques and Incentives for Encouraging Affordable Housing
Types of Affordable Housing

Need Help?

Mary M. Reinbold (she/her) AICP
Senior Planner
mary.reinbold@commerce.wa.gov
(509) 638-5449

Local Implementation

Local MFTE Webpages

Bremerton (external link)
Everett (external link)
Lakewood (external link)
Lakewood video (external link)
Seattle (external link)
Shoreline (external link)
Spokane (external link)
Tacoma (external link)
Vancouver (external link)
Wenatchee (external link)

Code Samples

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)