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Multi Family Tax Exemption Program
Like other jurisdictions, the City of Seattle recognizes the importance of being proactive in the creation and maintenance of a balanced supply of housing which not only includes low income housing but workforce housing intended for those such as teachers, nurses, and office workers; many of whom are being priced out of the housing market due to the fact that wages have not kept pace with the rising cost of living.
I would like to stress that using the MFTE Program as a tool does not in any way erode our commitment to the disadvantaged or the homeless. It is simply one apparatus that is part of an integrated approach to dealing with the challenges of our city’s housing needs and both private and non profit developers are free to continue using the program to serve those at or below 60% of area median income should they choose to do so.
It is important to note that the Multi Family Tax Exemption Program is not a new program and has been in operation since 1998 generating 305 moderate income units and on June 18, 2008 the Housing and Economic Development Committee passed an expansion of and changes to the program. Council Bill 116245 (the Multi Family Tax Exemption) was passed by the Council as a whole on June 30, 2008 with the exception of Councilman Nick Licata who voted in opposition to it with Councilman Tom Rasmussen absent for the vote.
To date, the program has averaged approximately 2-3 projects per year that might not otherwise have been built. Many are concerned about this being a giveaway to developers with the tax burden being shifted to the average homeowner. In the end, since the inception of the program Seattle homeowners have paid less than $1 per year in additional property taxes as a result of the program, with $4.20 being the current estimation of the shift in the tax burden under the expansion.
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