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Council sets Jan. 21 public hearing on expanding multifamily tax exemption program
Summary
The Lacey City Council unanimously adopted Resolution 1161 to set a Jan. 21 public hearing on potential expansion of the city's multifamily tax exemption (MFTE) program and related changes to program terms.
The Lacey City Council voted unanimously Jan. 7 to adopt Resolution 1161, which sets a public hearing for Jan. 21 on proposed changes to the city’s multifamily tax exemption (MFTE) program.
The resolution notifies the public of the council’s intent to designate the Neighborhood Commercial District as a new residential target area and to consider offering both the 12‑year and 20‑year MFTE options there. Council members also directed staff to explore expanding the Woodland District’s MFTE to include a 20‑year option and to create a 12‑year extension option for current participants in the 8‑ and 12‑year programs.
“We’re recommending option 1: adopting Resolution number 1161 to set the public hearing on January 21st,” said Jennifer Adams, housing coordinator for the city, describing the next steps. Adams told the council the MFTE has been active in the Woodland District since 2014 and that the October work session directed staff to pursue an expansion with a focus on affordability. “As required by state law, adopting resolution number 1161 would notify the public of the council’s intent to designate the Neighborhood Commercial District as a new residential target area and would initiate a public hearing to gather input on these potential changes,” she said.
Council members asked clarifying questions about eligibility and the pathway to a 20‑year exemption. Adams explained that one route to a 20‑year exemption is an initial 8‑year term followed by an additional 12 years tied to affordable housing commitments; she also said a standalone 20‑year option exists but carries more stringent affordable‑housing requirements.
The hearing set by Resolution 1161 will give residents and developers an opportunity to comment before the council considers draft ordinance language to enact any expansion.
Votes at a glance: The motion to adopt Resolution 1161 to set a Jan. 21 public hearing carried unanimously; the mover and seconder were not specified on the record.
Background: The MFTE program provides property tax exemptions for qualifying multifamily development in designated target areas. State laws governing MFTE were cited during the staff presentation; the resolution itself initiates public notice and the formal hearing process required by state law.
