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Council holds first reading of multifamily tax exemption ordinance; debate centers on tax shift and affordable-unit requirements

3310370 · April 28, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Council received a staff presentation and public comment on a proposed Multifamily Property Tax Exemption (MFTE) ordinance that would create a 12‑year exemption for qualifying projects that set aside at least 20% of units as affordable; the ordinance establishes a framework only and does not grant any exemptions tonight.

The Gig Harbor City Council heard a first reading on April 28 of an ordinance to establish a Multifamily Property Tax Exemption (MFTE) program. Staff from Community Development and the Housing, Health & Human Services office presented the draft ordinance as a framework that would allow future property owners to apply for a tax exemption; council did not approve any specific exemption or project during the meeting.

Housing, Health & Human Services Manager Shay Smiley and Community Development Director Eric Baker said the draft program would allow a 12‑year exemption on the residential improvement value for qualifying projects provided at least 20% of units are set aside as affordable to households at specified income levels. Staff emphasized that adoption of the ordinance itself would not grant exemptions; any developer seeking an exemption must submit a complete…

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