Multifamily Tax Exemption
Important Deadline for Converting an MFTE P6 Application to P7 Rules
Application for MFTE P6 Projects either not yet complete or completed in 2025: You must submit a complete application to the Seattle Office of Housing by December 31, 2025 at 5:00 p.m. PST to convert from MFTE Program 6 to Program 7 rules.
About the MFTE Program
The Multifamily Property Tax Exemption (MFTE) Program offers a property tax exemption on new multifamily buildings. In return, developers must set aside a certain number of rent-restricted apartments for income-eligible households.
- Developers with questions about the MFTE program can contact us for more information.
- Prospective renter applicants can find more information here about the MFTE program and other income and rent restricted properties.
- Current MFTE tenants can find resources on their rights and responsibilities here.
- Property managers at buildings participating in MFTE can find compliance resources here.
How to Apply
Developers who want to apply for a property tax exemption must submit a complete MFTE application to the Office of Housing at least 180 days before your project is finished. The project completion date is usually the date of the issued temporary certificate of occupancy or final building inspection. Please note, however, there is a hard deadline on December 31, 2025, 5PM PST for applications to convert a P6 application to P7 rules.
MFTE Program 7
A new version of the program, known as MFTE Program 7 (P7), took effect on November 14, 2025, through Ordinance 127316. Key changes in P7 include:
- Reduced requirements for unit comparability.
- Increased rent and income limits for the restricted units.
- A new definition for bedrooms, classifying them as "standard" or "alternative."
Learn more about changes to MFTE Program 7. We recommend you read Ordinance 127316 to understand all the new requirements. For specific questions about the program, please email us at OFH_MFTE@seattle.gov.
Resources
- SMC 5.73: Multifamily Housing Property Tax Exemption Program
- MFTE Program 7 (Ordinance 127316)
- RCW 84.14: New and Rehabilitated Multiple-Unit Dwellings in Urban Centers
Owners/developers applying to participate in the MFTE program must commit to implement an Affirmative Marketing Plan. Please refer to the following documents for more information on affirmative marketing and how to comply with these requirements.
- Affirmative Marketing Information Sheet — This document provides an overview of affirmative marketing for properties in the MFTE and Mandatory Housing Affordability (MHA) programs.
- Letter of Intent — Affirmative Marketing — This document indicates a property owner's commitment to implement Affirmative Marketing. The Letter of Intent must be submitted to the Office of Housing along with the MFTE Initial Application. MHA properties may submit this form as part of their MHA Agreement.
- Special Outreach for Affirmative Marketing — Properties implementing Affirmative Marketing should use this form to contact community-based organizations.
- Community-based Organizations for Affirmative Marketing — Rental properties must choose three organizations to direct their special outreach to. This spreadsheet includes contact information for over 60 community-based organizations around Seattle that rental properties may choose from. Homeownership properties should contact OFH_MFTE@seattle.gov 90 days prior to listing their properties for sale for a list of community-based organizations that can assist with affirmative marketing for homeownership.
- Affirmative Marketing Reports — Properties implementing Affirmative Marketing must demonstrate compliance by completing this form and submitting it to the Office of Housing. It is part of the Final Certificate Application for the MFTE program.