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Current as of May 5, 2026

Tax Incentives

Multifamily Property Tax Exemption (MFTE) Overview

The Multifamily Property Tax Exemption Program encourages development of affordable multifamily units across designated Residential Target Areas within Tacoma. Qualified projects receive property tax relief for durations of eight, twelve, or twenty years based upon unit affordability levels.

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• Frequently Asked Questions
• Regulatory Guidelines
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Eligibility Criteria

Projects must satisfy these conditions to qualify:

• Minimum of four brand-new multifamily residences
• Situated within approved Residential Target Areas
• Eight-year developments under 20 units require exclusive ownership occupancy by households earning ≤150% of Pierce County AMI
• Twelve-year exemptions necessitate 20% affordability at 70% AMI for decade
• Twenty-year options demand perpetual affordability commitments

Program Contact Information

Debbie Bingham
Business and Economic Development Manager

(253) 591-5117dbingham@[SITEURL]

Interactive Mapping Tools

Utilize TacomaMap (tMap) by expanding layers menu and selecting "MFTE Eligibility Areas" under Land Use section. Access map here: View Interactive Map

Recent Policy Amendments

Ordinance 29059 adopted October 8, 2026 introduces several key modifications:

• Stricter single-family exclusivity for sub-20 unit developments
• Expanded rental/ownership flexibility beyond 20 units
• Geographic restrictions eliminated in specified census tracts

Additional enhancements include extended affordability timelines and clarified income thresholds. Detailed documentation available through linked resources.

Application Procedure

Applications accepted throughout calendar year via Accela permitting portal. Fees range from $2,000-$10,000 depending on project scale. Prior to permit issuance, applicants must secure property ownership verification. Approval involves City Council review and subsequent contract establishment outlining development obligations. Exemption benefits transfer with property ownership.

Post-approval timeline allows three years for project completion following Certificate of Occupancy issuance. Recent policy revisions effective March 14, 2026 broadened geographic scope, adjusted income benchmarks, introduced perpetual affordability pathways, and established renewal options.

Supporting Documentation

Comprehensive reference materials accessible through linked pages including: Tip Sheet, Chapter 6A.110 Regulations, Chapter 84.14 Statutes, Rental Income Guidelines, and Project Dashboard.

FAQ Section

• Sub-20 unit developments require sole ownership occupancy by qualifying households
• Larger developments face no affordability mandates but retain other stipulations
• Certain zones prohibit eight-year exemptions entirely

The twelve-year framework mandates 20% affordability at specified income levels. Units must serve households meeting defined affordability metrics.

Annual Median Income figures released by HUD inform eligibility calculations. Local regulations align with federal standards.

Rental parameters correlate directly with AMI benchmarks. Updated thresholds available through official channels.

Affordability determinations consider household composition and bedroom count. Specifications detailed in municipal codes.

Annual compliance documentation required from property owners. Reports track adherence to MFTE stipulations.

• Continued eligibility possible until income surpasses 90% AMI threshold
• Displacement mitigation measures prioritized
• Housing code enforcement maintained throughout

Rental Housing Code Information

Additional guidance regarding Tacoma rental regulations available through official resource linkage.

Contact Details

Debbie Bingham
Business and Economic Development Manager

(253) 591-5117dbingham@[SITEURL]