What is the Multifamily Housing Property Tax Exemption (MFTE) Program?
The Multifamily Property Tax Exemption (MFTE) is a program for the purpose of increasing housing affordability in Redmond. With MFTE the City has the opportunity to encourage affordable housing at greater levels of affordability in new apartment development in certain areas of Redmond. The MFTE provides for either an eight year or 12 year exemption from property taxes paid on the housing portion of qualifying new development in exchange for providing 10 percent of the units as affordable for income-eligible households with an eight year exemption and 20 percent of the units with a 12 year exemption. These will remain as long term affordable units throughout the life of the project. In July 2017 the City Council adopted the multifamily housing property tax exemption (Redmond Municipal Code 3.38) through Ordinance 2892 (PDF). RCW 84.14 addresses such tax exemptions in state law.
Where can the MFTE be used?
Developments must be located in these targeted mixed use residential areas: