Economic Development

Multi-Family Tax Exemption

MFTE Boundaries & Programs

Spokane Targeted Investment Area (STIA) – economically distressed census tracts
Spokane Municipal Code 08.15.030

Goal: To encourage more market rate housing and in areas with high rates of poverty, leading to a greater mixture of incomes and housing types as intended by the State legislation.

Includes 34 economically distressed census tracts
8, 12, and 20-yr Exemption Programs Available (Spokane Municipal Code 08.15.090)

Affordable Housing Emphasis Area – NOT economically distressed census tracts
Spokane Municipal Code 08.15.030

Goal: To encourage the development of more affordable housing with income and rent restrictions outside the economically distressed area, leading to a greater mixture of incomes and housing types as intended by the State enabling legislation.

12 and 20-yr Exemption Programs Available (Spokane Municipal Code 08.15.090)

Estimated Savings Calculator table, which is linked to an Excel sheet for estimating a project’s tax savings. The example tax savings is for an 8-unit project that would have an estimated $101,242 of property tax saved during the term of exemption.

For Multi-Family Tax Exemption (MFTE), once a project has met programmatic criteria the owner can expect to save approximately $1,166 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 MFTE Estimated Savings Calculator (MS EXCEL 16 KB) 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 a device, and then send them as an attachment in an email to incentives@spokanecity.org.

Application Steps

Before Construction (Spokane Municipal Code 08.15.060)
You must apply for a Conditional Multi-Family Tax Exemption. Download, complete, and submit your MFTE Conditional Application (PDF 302 KB) before you submit for plan review or permits.
After Construction (Spokane Municipal Code 08.15.080)
And you have your CO then you apply for a Final Multi-Family Tax Exemption. Download, complete, and submit your MFTE Final Application (PDF 567 KB). Once complete, this step will put the exemption in place.
Annually Every February 1 (Spokane Municipal Code 08.15.100)
For the next 8, 12, or 20 years, depending upon the length of your exemption, you are required to file an Annual Report certifying that the property is still in compliance with its contract. Use the following links to access the appropriate Annual Report forms.

Annual Report 8yr or 20yr Exemptions form (PDF 323 KB)
Annual Report 12yr Exemption form (PDF 396 KB)

Rental Property Managers with 12yr Exemptions must have tenants complete the Rental Tenant Annual Income Certification form (PDF 196 KB) for their affordable qualifying units.
Annual Income & Rent limit guide (PDF 131 KB) (updated each summer)

Please reach out via email to incentives@spokanecity.org if you have questions or need additional assistance submitting your application or Annual Report.