Council discusses multifamily tax‑exemption rules, safety concerns and timing with building permits

Amanda Beck and Spencer Gardner briefed the council on several multifamily tax exemption (MFT) applications, including a pending eight‑year incentive for a proposed West Falls project. Council members raised concerns about steep hillside sites, narrow roads that could be blocked during construction, fire and emergency access, affordability and the timing of approvals relative to building permits.

Staff clarified state law requires an MFT application be filed before any building permit is submitted; accepting an MFT application after a permit is filed could be problematic under state rules. "We actually cannot accept an MFT application after a building permit has been submitted," staff said, explaining the incentive’s intent is to be an inducement rather than a reward after construction intent is already demonstrated.

Council members pressed whether the city is being strategic about where it offers the incentive, and staff said they plan to review the MFT program alongside the comprehensive plan update to assess whether geographic targeting or other changes are appropriate. The briefing noted no building‑permit approvals had been issued for the projects discussed, and staff said building permit review remains underway.

The council directed staff to continue reviews and flagged that program changes are under consideration but not yet proposed.