The Multi-Family Tax Exemption (MFTE) program provides a tax exemption for the residential portion of new or rehabilitated multi-family housing to encourage housing in residential targeted areas, as authorized under Chapter 84.14 RCW.
- The program is available for new or rehabilitated multi-family housing units. Project must contain at least 20 dwelling units of multifamily housing, located within a residential structure or a mixed-use development, in which at least 50 percent of the space within such residential structure or mixed-use development is intended for permanent residential occupancy.
- MFTE applies to the value of the residential improvements only. It does not include land or commercial improvements.
- Ten percent of the units are required to be affordable to households with an income of 80 percent of Snohomish County's Family Median Income and 10 percent of the units affordable to households with an income of 115 percent of Snohomish County's Family Median Income.
- Qualifying improvements are exempt from ad valorum tax for a period of 12 years beginning on the first full calendar year after the project is completed.
Frequently Asked Questions
In addition to the FAQ linked above, you can click here to view a presentation made to City Council on 7/2/19.
If you have additional questions, please contact the Planning Division at 425-771-0220.
The MFTE program is offered in two areas:
Application Process
Applicants must apply for a conditional certificate of acceptance of tax exemption any time before applying for a building or other construction permit. (See ECDC 3.38.060 for application requirements.)
Background Documents
Ord. 4047 - Multi-Family Housing Tax Exemption Program ECC 3.38
Ord. 4080 - Amending ECC 3.38 Multi-Family Housing Tax Exemption Program
Applications and Forms
Application form and current MFTE rent and income levels are available at the link above.
as authorized under Chapter. 84.14 RCW