Multi-Family Tax Exemption

The Multifamily Tax Exemption is an incentive that gives property tax breaks to qualifying multifamily projects throughout the City of Spokane. This incentive has two goals. The first is to encourage more market rate multifamily housing throughout economically distressed areas of Spokane and the second is to encourage the development of affordable multifamily housing in areas that are not economically distressed. This is to provide more opportunities for residents with different incomes to find housing throughout the city.

In order to achieve these two goals, three different tax break term lengths are offered: 8, 12, and 20 years. Each option has different qualifying requirements; however, each project must provide at least 4 new units and the 12 and 20 year options require a percentage of the units to be affordable.

In addition to the term lengths, there are two emphasis areas, the Spokane Targeted Investment Area (STIA) and the Affordable Housing Emphasis Area (AHEA). The STIA covers the portions of Spokane that, according to census data, have been determined to be economically distressed. All three MFTE term lengths are allowed in this area. The AHEA covers the areas of Spokane that are not economically distressed. Only the 12 and 20 year term lengths are allowed in this emphasis area. See the map below to find out where your property is located.

Please see below for more details about the MFTE qualifying requirements and how to apply.

We look forward to working with you and welcome your questions. Email us at incentives@spokanecity.org or call us at 509.625.6500.

MFTE Boundaries and 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.

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.

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.

A row of townhouses.

Application Steps

  • Before Construction (Spokane Municipal Code 08.15.060)
    You must apply for a Conditional Multi-Family Tax Exemption. Please visit Accela Citizen Access and create an application by navigating to "Historic Preservation & MFTE" and selecting "Create an application". This application must be completed before you submit for plan review or permits. For detailed instructions on how to fill out the online application please see the General Information guide.
  • 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.

Contact Information

Planning & Economic Development Department
Economic Development Team
509.625.6500
incentives@spokanecity.org

Contact Information

509.625.6500
incentives@spokanecity.org
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