Commissioners back posting housing-element draft; city staff to pursue multifamily tax‑exemption options

City planning staff briefed the Liberty Lake Planning Commission on the housing element work and the possibility of establishing a multifamily tax exemption (MFTE) program to incentivize private‑sector production of affordable housing.

Staff described the MFTE as an incentive the city could adopt once state population thresholds are met and explained it can be structured to support both multifamily rental affordability and affordable homeownership using land‑trust or resale‑restricted mechanisms. "One of the few tools in this toolbox of government to help encourage and promote affordable housing is a multifamily tax exemption," the staff presenter said, adding that specifics (duration, percentage of units that must be kept affordable, income bands) would be developed through further outreach to nonprofit and for‑profit housing developers.

Why it matters: The MFTE is one of the limited local incentives available to cities of Liberty Lake's size. If adopted and structured with binding affordability requirements, it can reduce operating costs for developers building below‑market units and make mixed‑income projects more financially viable. The city can affect only its portion of property taxes directly; other taxing districts (county, school district) may be affected depending on program structure and state law.

What commissioners directed and voted - Staff will continue to refine the housing element and to draft parameters for a potential MFTE pilot. Staff said the city must meet state population thresholds (the presenter noted an April population estimate of about 14,110 and said the city will be eligible once the state calculation shows 15,000) before certain program options can fully come into effect. - The commission voted to post the housing‑element draft as a working draft on the city website and forward it for the state Commerce Department's voluntary compliance review. A motion to post and forward the draft was moved and seconded and approved by voice vote; commissioners called for additional outreach to nonprofit and for‑profit housing developers to help design MFTE program details before a formal ordinance is drafted.

Public comment and stakeholder input - Phil Champlin, executive director of the HubSpot Center, thanked staff and commissioners for the opportunity to provide input, saying the process and stakeholder outreach are valuable: "On behalf of our organization, thank you for allowing us to have some input," Champlin said. - Kelly (chair, Parks & Arts Commission) took the opportunity to support the outreach approach and noted she would follow housing items as a private citizen.

Next steps Staff said they will: conduct targeted outreach to affordable‑housing developers (nonprofit and for‑profit), draft potential program parameters (length of exemption, required affordability levels and monitoring), analyze which taxing districts would be affected, and return to Planning Commission with a proposed MFTE framework and legal/administrative draft language. Staff also said they will submit the housing‑element working draft to the Washington State Department of Commerce for voluntary review.

Ending: Commissioners moved and seconded the motion to post the draft housing element and forward it to state review; the motion carried on a voice vote. Staff will report back with a more detailed MFTE proposal for commission input and refinement.