Lakewood Council reviews multifamily tax exemption program to boost housing growth

In the heart of Lakewood's city hall, a pivotal discussion unfolded as city officials gathered to review the multifamily tax exemption program, a key initiative aimed at addressing the pressing housing needs of the community. Under the guidance of Planning and Public Works Director Jeff Remag and Economic Development Manager Becky Nooty, the council explored the implications of recent updates to the program, which are designed to stimulate economic growth and enhance housing availability.

The meeting highlighted the adoption of Ordinance 792 in November 2023, which brought significant changes to the multifamily tax exemption (MfTE) program. These updates align with state requirements and aim to promote development densities that support transit and economic investment. Notably, the ordinance introduced a 12-year extension for projects that include a certain percentage of affordable housing, reflecting the city’s commitment to inclusivity in its growth strategy.

As the discussion progressed, Remag emphasized the multifaceted benefits of the MfTE program. He noted that housing projects not only provide essential living spaces but also trigger infrastructure investments, such as upgrades to roads and public services. The ripple effect of new residents can invigorate local businesses, from cafes to grocery stores, thereby expanding the city’s tax base and enhancing public services.

The council also examined the economic impact of housing development, referencing a sample project that could generate approximately $5.5 million in annual economic output. With a target of 500 new housing units per year to meet community needs, the urgency for effective policies was palpable.

However, the meeting was not without its challenges. Concerns were raised about the potential impact of new rent control measures on housing development, with some council members expressing apprehension that such regulations might deter investment in new projects. Remag reassured attendees that while the MfTE program offers significant tax incentives, the financial stakes for developers remain high, with substantial upfront costs involved in bringing projects to fruition.

The conversation also touched on community concerns regarding noise, security, and environmental impacts associated with increased density. Remag addressed these issues, highlighting the city’s commitment to enhancing public safety and green spaces in development plans.

As the meeting concluded, it was clear that the multifamily tax exemption program represents a critical tool for Lakewood’s future. By fostering economic development and addressing housing shortages, the city aims to maintain its status as a regional center, ensuring that it remains a competitive and vibrant community for years to come. The council's ongoing discussions will be vital as they navigate the complexities of growth while striving to meet the diverse needs of Lakewood's residents.