Council approves MFTE 'Program 7' after extensive public comment and amendments

Seattle City Council on Oct. 14 passed Council Bill 121055, renewing and modifying the multifamily tax exemption (MFTE) program known as “Program 7” by a 9-0 roll-call vote. The bill, as amended during the meeting, adjusts income targeting, clarifies conversion and extension procedures for projects that want to convert from previous MFTE terms, and adds demolition-policy compliance consistent with state law.

The MFTE program provides a property-tax exemption to owners who agree to keep a portion of units at below-market rents; supporters say the program incentivizes workforce and middle-income housing and revives stalled projects, while critics say the city should attach stronger labor standards and preserve deeper affordability.

Councilmember Tanya Solomon, sponsor of the legislation, told colleagues the amendments approved on the floor were intended in part to bring the city into compliance with state law and to make the program administratively workable for the Office of Housing. “This amendment’s help ensure that Seattle’s MFE program complies with state requirements and better allows Office of Housing to administer the 2025 MFE program,” Solomon said when she introduced the first floor amendment.

Supporters from the development community argued Program 7 makes marginal projects financially feasible and will restart stalled pipelines. Patrick Foley, vice president of Lake Union Partners, said he has roughly 1,000 units in the developer pipeline that will not move…