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Maple Valley council repeals Multifamily Tax Exemption after extended public comment
Summary
Following extensive public comment and debate, the Maple Valley City Council voted 5-2 on May 11 to adopt Ordinance O-26-882, repealing the city’s Multifamily Tax Exemption (MFTE) program. The decision came after divided council votes on related ordinances and weeks of public testimony about tax shifts and housing policy.
The Maple Valley City Council voted 5-2 on May 11 to adopt Ordinance O-26-882, repealing the city's Multifamily Tax Exemption (MFTE) program. Councilmember Les Burberry moved the ordinance and Mayor Sean P. Kelly seconded; the yes votes were Burberry, Syd Dawson, Kelly, Dana Parnello and Deputy Mayor Didem Pierson. Councilmembers Victoria Schroff and John Herbert voted no.
The repeal followed a long public-comment period in which dozens of residents and stakeholders spoke for and against MFTE. Speakers arguing against the program cited potential tax shifts to residents outside city limits, higher property-tax pressures on current homeowners and legal uncertainty. "If you can’t afford it, you can’t get it," said Kelly Bowen of Maple Valley, summarizing the view of several opponents who urged the council to reject incentives they said would favor developers over existing homeowners.
Opponents raised legal and jurisdictional questions. Rich Hudson, from unincorporated King County, said he contacted the King County Assessor and was told the city cannot tax residents outside city boundaries; others questioned whether administering MFTE would expose the city to litigation. "The tax shift isn’t fair for something that benefits someone else," said Kelly Moses, a Maple Valley resident, who asked whether she could remain in the city if costs rose.
Supporters of the program urged the council to keep tools that encourage construction of affordable multifamily housing. Developer and speaker Drew Lang said MFTE had undergone months of study and that his development team was willing to adjust projects to deliver benefits; Layne Barnes said repeal was the best option in a different context. Chris Pallis of Mercer Island reminded the council that MFTE is a state-mandated tool and corrected several circulating erroneous dollar figures.
Council action on related motions was mixed earlier in the evening. A motion to approve Ordinance O-26-881, which would have adopted a residential targeted area under MFTE, failed on a 5-2 roll call (Yes: Burberry, Herbert; No: Dawson, Kelly, Parnello, Pierson, Schroff). Later, the council passed Ordinance O-26-882, the full repeal.
City Manager Laura Philpot had proposed follow-up study sessions on housing; the council approved study sessions for June 1 and June 15 to consider housing strategy and potential formation of a housing task force. The study sessions were approved unanimously at the meeting.
The ordinance’s adoption means the city will no longer administer the MFTE program as structured; council members and staff indicated additional study will follow through the scheduled sessions. The council did not record any immediate implementation timeline or reference specific legal appeals; several public speakers encouraged litigation as a possible next step.
The council adjourned at 9:22 p.m. The housing study sessions are scheduled for June 1 and June 15, when council members expect further briefings and potential policy alternatives.
