City of Spokane

Spokane Municipal Code

***Note: Many local criminal codes can now be located under Chapter 10.60 SMC while others are now cited under the Revised Code of Washington (RCW), which was incorporated into the municipal code in 2022. (See SMC 10.58.010). Code Enforcement, including Noise Control and Animal Regulations are located in Chapters 10.62 through 10.74.

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Title 08
Chapter 08.15
Section 08.15.040
 

Title 08 Taxation and Revenue

Chapter 08.15 Multiple-family Housing Property Tax Exemption

Section 08.15.040 Project Eligibility

  

To be eligible for exemption from property taxation under this chapter, the property must satisfy all of the following requirements:

  1. The property must be located in a residential targeted area of an urban center.
  1. The project must be multifamily housing consisting of at least four dwelling units within a residential structure or group of structures or as part of a mixed-use development in which at least fifty percent of the space within such residential structure or mixed-use development is intended for permanent residential occupancy.
  1. For new construction, a minimum of four new dwelling units must be created; for rehabilitation or conversion of existing occupied structures, a minimum of four additional dwelling units must be added. Existing multifamily vacant housing that has been vacant for twelve months or more does not have to provide additional multifamily units.
  1. For rehabilitation or conversion of an existing building: the residential portion of the building fails to comply with one or more standards of the applicable building or housing codes, and the rehabilitation improvements shall achieve a condition of compliance with the applicable building and construction codes, or the building has been vacant for at least a year. If the property proposed to be rehabilitated is not vacant, an applicant shall provide each existing tenant housing of comparable size, quality and price and a reasonable opportunity to relocate.

At the time of application for a MFTE Conditional Agreement, the applicant will provide a letter attesting and documenting how the existing tenant(s) were/will be provided comparable housing and opportunities to relocate. The comparable housing requirements to be included in the MFTE Conditional Agreement:

  1. The existing residential tenant(s) are to be provided housing of a comparable size and quality at a rent level meeting the Washington State definition of affordable to their income level.  Specifically, RCW 84.14.010 defines “affordable housing” as residential housing that is rented by a person or household whose monthly housing costs, including utilities other than telephone, do not exceed thirty (30) percent of the household’s monthly income. The duration of this requirement will be the length of the tenant’s current lease plus one year.
  1. The project must comply with all applicable zoning requirements, land use regulations, design review requirements and building and housing code requirements contained in the Spokane Municipal Code at the time of new construction, rehabilitation or conversion.
  1. Permanent Residential Occupancy Required.
    1. The project shall make available all residential dwelling units for permanent residential occupancy. No residential dwelling unit shall operate as transient lodging for the entire duration of the exemption period.
    1. Projects for which a contract under this chapter was approved prior to adoption of this ordinance and for which a residential dwelling unit is in use as duly permitted transient lodging may continue to operate, subject to the following conditions:
      1. If the permit expires for the transient lodging, it shall not be re-established for the duration of the contract; and
      1. Permits for new transient lodging above and beyond any pre-existing permits shall not be issued for the remainder of the contract. 

 

Date Passed: Monday, July 14, 2025

Effective Date: Sunday, August 24, 2025

ORD C36709 Section 4