Mason County plans 12-year tax exemption for affordable housing development

The Shelton City Council held a study session on April 9, 2025, to discuss key housing affordability measures and exemptions aimed at enhancing residential development in Mason County. The meeting focused on a proposal that outlines a structured approach to affordability levels for new housing units.

One of the primary agenda items was the proposed exemption matrix, which details the length of the exemption, the number of units, and the affordability levels. The proposal suggests an eight-year exemption for residential target areas, with the first 10% of units set at 10% of the Area Median Income (AMI). For a family of four in Mason County, this translates to an income threshold of approximately $80,000, meaning that 10% of the units would be affordable for families earning around $24,000 annually, which is 30% of the AMI.

The discussion also highlighted a 12-year exemption plan, where the first 10% of units would be priced at 80% of the AMI, while the subsequent 10% would be set at 60% of the AMI, equating to an income of about $60,000 for a family of four. This tiered approach aims to incentivize developers to create more affordable housing options by offering extended tax credits for projects that meet these criteria.

Council members and stakeholders engaged in a dialogue about the implications of these affordability measures, particularly regarding the financial viability for developers. They emphasized the importance of balancing profit margins with the need for affordable housing. The conversation also touched on the necessity of housing vouchers to qualify for these affordability measures, indicating a comprehensive strategy to ensure that low-income families can access these new housing opportunities.

In conclusion, the meeting underscored Shelton's commitment to addressing housing affordability through structured exemptions and incentives for developers. The council plans to continue discussions on these proposals, aiming to finalize a strategy that supports both community needs and economic feasibility in future residential developments.