Issa Plaza Meeting Focuses on Small Housing Projects and Economic Development Strategies

During the Issaquah City Council Committee of the Whole meeting on July 17, 2025, discussions centered on innovative strategies for enhancing local housing and economic development. A key focus was on promoting small housing projects, with council members advocating for adjustments to tax incentives to attract builders of affordable homes.

One council member proposed expanding the Multifamily Tax Exemption (MFTE) program to include homes for families earning up to 80% of the area median income (AMI), rather than the current cap of 60% AMI. This change aims to encourage more builders to enter the market and develop smaller, starter homes, which are increasingly seen as vital for community growth.

Additionally, the conversation highlighted the potential of density bonuses for faith-based landowners, particularly churches, which have been losing congregations and may have available land for affordable housing projects. This initiative has already seen success, with several churches beginning to develop housing.

The meeting also touched on the importance of implementing the Economic Development Action Plan, which outlines strategies for fostering local businesses and attracting professional jobs. Council members expressed a desire to prioritize actions from this plan, particularly those that support neighborhood-centric businesses, often referred to as corner stores.

Overall, the discussions underscored a commitment to enhancing Issaquah's housing landscape and economic vitality through targeted incentives and community-focused development strategies. The council aims to create a more inclusive environment for residents while addressing the pressing need for affordable housing options.