Lakewood planning commission reviews expansion of multifamily tax-exemption zones, holds off final decision

Lakewood Planning Commission members spent the bulk of their meeting reviewing staff recommendations to expand residential target areas eligible for the city’s Multifamily Tax Exemption (MFTE) program and to amend related code provisions, but took no final action and set a public hearing for further public comment.

City planner Odette “Miss” Newton presented staff’s review, saying the session was “another review of the multifamily tax exemption, for consideration of residential target area expansion,” and walked commissioners through program rules and recent project totals. The MFTE, staff explained, is an incentive intended to encourage multifamily development in higher-density areas; the program offers an eight-year exemption for market-rate projects and a 12-year exemption when at least 20% of units meet the program’s affordability threshold.

The discussion focused on which parts of the city to add as residential target areas, whether to add a 12-year extension option in the Central Business District (CBD) outside the Tax Increment Finance (TIF) area, and a proposed clarification to the MFTE application timing so applicants file after land‑use permitting or prior to building-permit issuance if no land-use action is required. Commissioners and staff also discussed potential benefits and negative effects of expanded target-area boundaries, and asked staff for…