Committee advances rewritten MFTE program with multiple amendments after heated public comment

Seattle's Housing and Human Services Committee on Sept. 22 recommended passage of council bill 121055, an update to the multifamily housing property tax exemption program (MFTE), after public comment and several rounds of amendments. The committee voted to forward the bill to the full City Council for final consideration.

The MFTE proposal, often referred to in the meeting as "program 7" or "P7," would replace the current program in use ("P6") and changes income and rent limits, unit classifications, and administrative rules for qualifying projects. Supporters said the changes are intended to restart stalled housing production, while renters and tenant advocates urged caution, more renter input, and protections for existing residents.

Why it matters: MFTE is one of Seattle's primary tools for incentivizing workforce housing (units aimed at households between middle and lower incomes). Changes to the program affect rent caps, income eligibility for regulated units, and the incentives owners receive; they can influence how many family-sized units get built and whether existing rent-restricted units remain affordable when projects are rebuilt or extended.

Most important actions and outcomes - The committee moved and recommended passage of council bill 121055 as amended. The committee recorded a 5-0 favorable…