Economic Development

Multi-Family Tax Exemption

MFTE Boundary

Designated Infill Target Area MFTE Boundary

For Multi-Family Tax Exemption (MFTE), once a project has met programmatic criteria the owner can expect to save approximately $1,180 on their tax bill for every $100,000 of Exempt Assessed Value on the housing portions of the property The exemption of assessed value is only applied to housing portions of the property. Download the calculator to help you estimate your possible property tax savings.

Form Instructions: users will need to right-click and download the forms to complete, save them to your desktop, and then send them as an attachment in an email to: incentives@spokanecity.org

Before Construction

You have to apply for a Conditional Multi-Family Tax Exemption. MFTE Conditional Application before a permit.

After Construction

And you've got your CO then you apply for a Final Multi-Family Tax Exemption. MFTE Final Application.

Annually

For the next 8 or 12 years, depending upon the length of your exemption you have to file a form certifying that the property is still in compliance with its contract
- Annual Report 8yr Exemption or
- Annual Report 12yr Exemption
  - Rental Property Managers with 12yr Exemptions, need to have tenants complete the annual income certification for their affordable qualifying units. 12yr Rental Annual Income Certification
  - If you need a new Income & Rent limit guide, please reach out via email to incentives@spokanecity.org

MFTE Information

SMC 08.15

The City of Spokane's Multi-Family Tax Exemption (MFTE) program offers a partial property tax exemption for new improvements that create multi-family housing. The exemption period is 8 years for market rate projects, and 12 years for projects where at least 20% of the units are occupied and affordable to those with an income of no more than 115% of Area Median Income The program is based on state law (RCW 84.14) and described in the Spokane Municipal Code (SMC 08.15).

Here are a couple key things to remember about this program:

“Multi-family” is considered to be a minimum of 4 dwelling units in one building.
The MFTE program is available for properties in designated target areas all over the city, not just in the downtown. The target areas are selected based on criteria designed to support the revitalization of urban centers where density is encouraged.
For mixed use projects, at least 50% of the space must be dedicated to residential use.
The developer, builder or property owner must apply for this tax exemption BEFORE they apply for their building permit.
Before purchasing a specific piece of property, investors should either contact Planning & Development Services by phone at 509.625.6300 or email at incentives@spokanecity.org or come in to the 3rd floor Current Planning counter in City Hall to double-check that the parcel is actually in a MFTE target area.