Council directs staff to finalize four-year MFTE catalyst for non‑downtown HOAs and clarifies fee‑in‑lieu participation

Staff from the Office of Housing outlined amendments to the Multifamily Tax Exemption (MFTE) program that would create a time-limited four-year "catalyst" (supercharger) exemption for qualifying projects outside downtown, clarify that projects paying a fee in lieu may still participate in MFTE, and refine application timing and covenant recording requirements.

Hannah Von Miller, senior affordable housing planner, said the proposed catalyst would exempt projects from a requirement to reduce AMI for double-counted units for an administratively simple period that staff proposes to expire at the end of 2031. She explained staff would include a two‑year look-back to report on unit outcomes and participation. Von Miller also described changes to require complete applications at least 60 days before building-permit issuance, while preserving limited director-level exceptions that include recording covenants within 60 days of occupancy.

Council asked about metrics for the two-year look-back. Staff said the look-back will report unit outcomes and participation levels; fiscal impacts from exempted value will not be fully available at two years because assessor valuations occur at project completion. Deputy Mayor Hamilton moved to direct staff to finalize the ordinance for final action on the consent calendar; the council voted in favor.

Next steps: staff will finalize the ordinance and return it as a consent item for final council action.