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Council reviews draft multifamily property-tax exemption, residential targeted areas to spur housing
Summary
Economic development staff presented a draft ordinance that would allow an 8- or 12-year property-tax exemption for new multifamily rental housing inside defined residential targeted areas; the program requires deed-restricted affordable units, city monitoring, and an application fee to cover staff costs.
City staff presented a draft multifamily property-tax exemption (MFTE) ordinance to the Shelton City Council on April 8 that would give developers a temporary exemption from the city’s portion of property taxes in exchange for long-term deed-restricted rental units.
Economic development director Jay Hill described two tiers: an eight-year exemption and a 12-year exemption that comes with deeper affordability requirements, and he said state law (RCW 84.14, as referenced in the meeting) sets eligibility rules and program limits. “We forego the property taxes for a defined period of time, but we get the affordability for the life of the project,” Hill said.
Key provisions discussed
- Eligibility areas: Hill said the draft limits exemptions to properties inside the council-designated residential targeted areas (RTAs). City staff proposed two initial RTAs — a downtown RTA and a…
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