City Council explores changes to boost affordable housing

During a recent government meeting, city officials provided an update on the Multifamily Tax Exemption (MFTE) program, a key initiative aimed at enhancing affordable housing in the community. Ben Walters, the economic development manager, and Sarah Cho, the city center program manager, presented the update, emphasizing the program's alignment with the city's 2021 housing action plan.

The MFTE program allows local governments to exempt property owners from paying property taxes on new construction, conversion, and rehabilitation of multifamily residential improvements that consist of at least four units. This exemption applies for a specified number of years, while property owners remain responsible for taxes on the land and any non-residential improvements.

Originally established by state legislation in 1995, the program was adopted locally by the Lynnwood City Council in 2007, focusing on the city center as its target area. The officials highlighted the importance of evaluating the existing program to identify potential changes that could further advance the city's affordable housing goals.

The discussion aimed to engage council members in a conversation about the future of the MFTE program, with the intent of guiding staff in researching possible modifications. This initiative reflects the city's ongoing commitment to addressing housing affordability and ensuring that residents have access to suitable living options.