Council Reinstates Multifamily Tax Exemption

SEATTLE-After a two-year hiatus, the Seattle City Council has closed some loopholes and reinstated a 10-year property tax exemption that it hopes will stimulate new construction and conversions for multifamily projects, while at the same time ensuring that at last 25% of it is affordable to the average worker.

As approved in a 6-to-3 vote, the legislation allows multifamily developers to receive the exemption in 17 city neighborhoods given any of the following three scenarios: 20% of the units are offered at 60% of median income; 25% of the units are offered at 65% of the median income; or 30% of the units are offered at 70% of the median income. Land, existing improvements and non-residential improvements do not receive the exemption, and the exemption is transferable to new property owners.