Due to forecasted strong winds, City of Spokane first responders, Spokane 311, as well as Street and Parks crews, are preparing to respond to calls for assistance and reports of damage. More information.
Jessica Fisher

City of Spokane Offering Multi-Family Property Tax Exemptions

Jessica Fisher, Public Information Assistant, 509.625.6749

Thursday, October 19, 2017 at 9:55 a.m.

City of Spokane Offering Multi-Family Property Tax Exemptions

The City of Spokane has an apartment vacancy rate of 1.4%; we need more housing options.

In an effort to provide more affordable housing options the City of Spokane is offering multi-family property tax exemptions (MFTE) for developers.

In order for a developer to quality for a multi-family property tax exemption, their project must meet a series of requirements. These requirements include:

  • The property must be located in a designated infill target area.
  • The development must include at least four new housing units.
  • The developer must submit the MFTE Conditional Application before applying for a building permit.
  • If the building is a mixed-use property, at least 50% of the floor area must be dedicated to residential use.
  • After construction, developers must submit the Final MFTE Application.
  • For the next 8 or 12 years, depending on the length of the exemption, owners will have to file a form certifying that the property is still in compliance with its contract.
  • A 12 year exemption requires at least 20% of the units to meet affordability requirements for low and moderate – income tenants.

It is important to note that these tax exemptions only apply to the housing units. For example, if a developer were to build a mixed-use property only the housing units would benefit from this exemption. The rest of the building would not be exempt from property taxes. 

Once the 8 year or 12 year exemption expires, the property will be entered on to the tax rolls as new construction and will be required to pay property taxes.

The multi-family property tax exemptions have been used to build townhouses, mixed-use condos, and apartments. This program has seen great success in the lower south hill area as well as our Downtown.

More About...