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