Council approves amendment to multifamily tax-exemption code, strikes extension language

The Enumclaw City Council on April 14 approved Ordinance 2810, which amends the municipal code chapter 3.6 governing the multifamily tax exemption program. The ordinance primarily permits owner-occupied units, such as condominiums, to participate in the city’s multi-family tax exemption program.

During second reading council members debated an extension provision that would have allowed council-approved extensions beyond the initial benefit period. Council member David Gruner expressed concern that discretionary extensions could turn a targeted incentive into an open-ended subsidy and be applied inconsistently. Gruner said the original intent of the multifamily tax exemption was to provide a building incentive, not a long-term subsidy, and urged removal of the extension language.

Council voted to strike Section 1, paragraphs n and o (the extension language) and then approved Ordinance 2810 as amended. The amended ordinance keeps the program’s incentive structure while removing the discretionary extension clauses that had been questioned by council members.

Community Development Director Chris Passanetti had told the council the draft ordinance also updated and clarified several definitions in Title 3 to implement the change allowing owner-occupied units to participate. Staff recommended approval and noted the amendment had been reviewed by the Community and Economic Development committee without a recommendation.

Councilmembers said the change will better allow certain condominium and mixed ownership projects to use the tax-exemption incentive, while the struck language reduces the risk of long-running exemptions that shift tax burden to other taxpayers.