Tacoma City Council Votes to Adopt Proposed Changes to Multifamily Property Tax Exemption Program

The Tacoma City Council's approval of Resolution 40866 on November 9, 2021, marks a significant step in addressing the city's affordable housing crisis by amending the Multifamily Property Tax Exemption (MFTE) program. This resolution expands the geographic area eligible for financial incentives for constructing multifamily housing with affordable units, reflecting a collaborative effort among Council Members Hines, Hunter, Thoms, and Walker. The Government Performance and Finance Committee (GPFC) conducted a comprehensive review of the MFTE policy, emphasizing the need for community input and collaboration with developers. Council Member Hines praised the diligence of the GPFC in ensuring the policy was well-developed and responsive to Tacoma's housing needs. The changes are expected to reduce inequities and accommodate residential growth in line with the Washington State Growth Management Act.

Developers have expressed appreciation for the city's willingness to seek feedback, highlighting the importance of such engagement in fostering successful housing projects. As Tacoma grapples with a growing demand for affordable housing, the MFTE program is positioned as a key tool to incentivize development and support community growth. The initiative underscores the city council's commitment to creating accessible housing solutions for all residents.