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Tax Incentives

MultiFamily Property Tax Exemption (MFTE) Program

Multifamily Property Tax Exemption Program is one way to encourage the development of multifamily units located in designated Residential Target Areas in Tacoma. The incentive exempts qualifying projects from property taxes on the assessed improvement value for 8, 12, or 20 years based on the level of affordability provided. 

 

Project Eligibility:

For a project to be eligible for the tax incentive, it must:

  • Include a minimum of four new multifamily units
  • Be located in one of Tacoma’s Residential Target Areas which include:
    • 17 designated mixed-use centers
    • Areas zoned Mid-scale Residential along key corridors
  • For a 12 year exemption, 20% of the units must be affordable at 70% Pierce County AMI for 12 years
  • For a 20 year exemption, 25% of the units must be permanently affordable

On this map under layers button on the top right, check the box market “Multifamily Property Tax Exemption Eligibility Areas”.

 

Public DART Map (cityoftacoma.org)


Application Process:

We accept applications year-round. Applications are submitted through the permitting portal Accela.

  • There is an application fee ranging from $1,000 to $5,000 depending on project size/number of units. $1000 for the first four units and then $100 per additional unit to a maximum of $5000.
  • Applications must be submitted and approved before building permits are issued.
  • An applicant must be the owner of a qualifying property

Once the application process is complete, staff reviews the application and provides a recommendation to the Tacoma City Council to approve or reject the project based on eligibility. Upon City Council approval, the owner enters into a contract with the City of Tacoma, establishing specific guidelines for completion and acceptance of the project. If the owner sells the property after the tax exemption has been granted, the exemption stays with the property and is transferred to the new owner.

 

If approved, the applicant has three years to complete the new housing with the tax exemption starting the calendar year following  issuance of temporary or permanent Certificate of Occupancy.

 

As part of our Affordable Housing Action Strategy, we have updated our program. Effective March 14, 2022, we expanded eligible areas the 12-year exemption is allowed to be used, lowered the household income level to 70% of Pierce County AMI as published by HUD each year, added a 20-year option for projects that provide permanently affordability, and adopted the option for extending an exemption for an additional 12 years if affordability is added.   

 

Tip Sheet:

https://www.tacomapermits.org/tip-sheet-index/mfte

 

MFTE Projects

These project lists are updated quarterly. Last updated September 9, 2022.

 

8 or 10 Year Exemptions

 

Project Title
Project Address
Multi-Use
Center
Number of Units 
Exemption Period 
Emcompass Property Management LLC  630 Trafton  6th Avenue  10

8 years

(2015-22)

25th & Yakima LLC (Jackson Bldg) = Vue 25
 
2368 Yakima Ave   Downtown 167

10 years

(2013-22)

City View Townhomes

2131 South G St.  Downtown  17

8 years

(2015-22)

Signature Investments
4003 South Puget Sound
Tacoma Mall 12

8 years

(2016-23)

Signature Investments
4031 South Puget Sound
Tacoma Mall  10

8 years

(2016-23)

Henry Foss Group LLC
1933 Dock Street
Downtown 161

8 years

(2016-23)

Proctor Investors, LLC
3910 N 28th  Proctor  154

8 years

(2017-2024)

Emcompass Property Management, LLC
219 North J
Stadium 35

8 years

(2017-2024)

Macintosh Court Apartments  7637 Pacific Ave  72nd & Pacific
94

8 years

(2017-2024)

The Grand on Broadway
252 Broadway
Downtown 139

8 years

(2018-2025)

Stadium Apartments  102 North G 
Stadium 172

8 years

(2019-2026)

Encompass Property Management
627 North Fife
6th Avenue 12

8 years

(2019-2026)

Pt. Ruston Baker Building
4851-4961 Main Street  Pt. Ruston  178

8 years

(2019-2026)

Proctor South Apts
3911 N 25th 
Proctor 137

8 years

(2020-2027)

Napolean Apartments

1515 Tacoma Ave South
Downtown 135 

8 years

(2020-2027)

17th Street Townhomes
609&613 S. 17th
Downtown 4

8 years

(2020-2027)

Rochester St. LLC
619 N Rochester Street
Narrows 12

8 years

(2020-2027)

Horizon Commerce Partners LLC
2019 South C Street
Downtown 49

8 year

(2021-2028)

6th & Alder  3118 6th Ave  6th Avenue  110 

8 year

(2022-2029)

North American Asset Management Group, LLC/Town Center  409 S. 23rd  Downtown 228

8 year

(2022-2029)

Tacoma Land Investments LLC   1925 S I Street
Downtown  30

8 year

(2022-2029)

Chelsea Heights
603 S J Street
Downtown  19

8 year

(2022-2029)

Hailey Apartments - HQC USA LLC  1210 Tacoma Ave S
Downtown 166 

8 year

(2022-2029)

6th and Rochester LLC
6805 6th Ave
Narrows  36

8 year

(2022-2029)

Washington Building Apartments LLC
1019 Pacific Avenue
Downtown 158

8 year

(2023-2030)

West Mall Smart 1's LLC 4524 South Junett Street
Tacoma Mall  12

8 year

(2023-2030)

12 Year Exemptions

 

Project Title
Project Address
Multi-
Use Center
Number of Units
Number of Affordable Units 
Exemption Period
Westcoast Realty Ventures LLC
3415 S. 47th Street
Tacoma Mall 6 2 12 years (2015-2026) 
North Prospect Duplexes  636 N Prospect  6th Avenue  4

12 year

(2017-2028)

4 on Top
1302 S J  Hilltop  1

12 year

(2017-2028)

Junett Trip-plex Development  4518 South Junett St.  Tacoma Mall 

12 year

(2017-2028)

4026 South Pine  4026 South Pine  Tacoma Mall 

12 year

(2018-2029)

Signature Investments LLC  4017 South Warner  Tacoma Mall  16 4

12 year

(2018-2029)

Northwest Housing/iStudios  3825 Junett Street  Tacoma Mall 36  12 year (2018-2029) 
Vista View Townhomes  4020 S Puget Sound
Tacoma Mall  18  12 year (2019-2030) 
The Station- Artists Lofts  3524 McKinley Ave  McKinley  14  12 year (2019-2030) 
The Overlook  624 E. 32nd  McKinley 12  12 year (2019-2030) 
VK Construction  3412 South G Street  Lincoln  12 year (2019-2030) 
1554 Market Street
1554 Market Street  Downtown  104  21  12 year (2020-2031) 
RDM Construction Services, LLC
640 North Prospect  6th Avenue  1 12 year (2020-2031) 
Brentwood LLC  2515 S. 48th Street
Tacoma Mall  45  12 year (2020-2031) 
612 Tacoma Ave S  612 Tacoma Ave South  Downtown  11 3 12 year (2020-2031) 
4337 LOFTS LLC  4337 South Cedar St  Tacoma Mall  5 12 year (2020-2031) 
Quiet Meadows, LLC
6844 E. Portland
Upper Portland  20  4 12 year (2020-2031) 
Primero Courtyards, LLC  4013 S. Puget Cound Ave  Tacoma Mall  12  3 12 year (2020-2031) 
Koz on Puyallup  314 Puyallup Ave  Downtown  152 31 12 year (2021-2032)
Rawson Place  4014 S. Warner Street  Tacoma Mall  12 year (2021-2032)
Woodland Creek LLC  4016 S. Warner Street  Tacoma Mall  1 12 year (2021-2032) 
Bear Mountain Holdings LLC  3714 South Yakima Street  Lincoln  18 12 year (2021-2032) 
Konstantin Kurkov  7427 S. D Street  Upper Pacific  2 12 year (2021-2032) 
Konstantin Kurkov  7425 S. D Street
Upper Pacific 12  12 year (2021-2032) 
Paddinton Place
2530 S. 42nd St  Tacoma Mall 30  12 year (2021-2032) 
RDM Construction Services, LLC  766 S 39th Street  Lincoln  4 1 12 year (2021-2032) 
Quiet Meadows, LLC
6844 E. Portland  Upper Portland  40  12 year (2021-2032) 
Village on Main (rest of building)  5006-5020 Main Street  Pt. Ruston  120 24  12 year (2021-2032) 
The Mack
3616 McKinley Ave  McKinley  12 year (2022-2033) 
Grand Pacific
7015 S. D Street  Upper Pacific  134  28 12 year (2022-2033) 
Alpha Sharp /Primero Courtyards  3715 McKinley Ave  McKinley  20  12 year (2022-2033) 
Village on Main  5006-5020 Main Street  Pt. Ruston  74  15 12 year (2022-2033) 
Major 12
4329 South Cedar Street
Tacoma Mall  12  12 year (2022-2033) 
RDM Construction Services, LLC
641 North Fife Street
6th Avenue 1 12 year (2022-2033) 
LWBG INVESTMENTS LLC
705 S. I Street
Downtown 18 4 12 year (2023-2034)
Cedar Street Multiplex (Bear Mountain Holdings LLC)
4338 South Cedar Street  Tacoma Mall  14  12 year (2023-2034) 
G12  1618 & 1620 South G Street  Downtown  12 3 12 year (2023-2034)
Koz On MLK
824 MLK Way, Tacoma, WA   Downtown  156  31 12 year (2023-2034)
Schuur 7 Plex  4323 South Puget Sound  Tacoma Mall 2 12 year (2023-2034) 

 

Frequently Asked Questions:

 

Is there an affordability requirement for the 8-year MFTE?

No. However, some areas of the City do not allow the 8-year MFTE option.  Learn more using the interactive map linked to the tip sheet on this page.

 

What are the affordability requirements for the 12-year MFTE option?

The affordability requirement for the 12-year MFTE option is 20 percent of the units (spread across unit type) must be affordable. The units must be rented to households making 70 percent or less of the Pierce County AMI.

What is AMI?

AMI stands for Annual Median Income. The U.S. Department of Housing and Urban Development (HUD) releases the AMI data by county each year.

What are the current rental and income limits?

The current limits from the U.S. Department of Housing and Urban Development (HUD) for rental and income limits are linked on this page.

 

How are affordable rents defined?

The Department of Housing and Urban Development (HUD) annually releases the median income data for each county.  The City of Tacoma requires that MFTE affordable units be rented to household making 70% or less of the Pierce County AMI. The income level is determined by household size. Rental rates are determined per number of bedrooms.

 

What are the reporting requirements for the affordable units?

The City of Tacoma requires the owner of the property to submit an annual report due to each February consisting of filling in documents, which include:

  • An affidavit signed by the owner or representative that the property remains in compliance with the terms of the MFTE agreement, notes any changes to the property and states the current occupancy rate. 
  • An affidavit signed by a representative of each unit that is an affordable unit.  This affidavit includes: annual income of the household, number of people in the household and the rent being charged to the household. 

 

What happens if a household occupying an affordable unit no longer qualifies?

In this case, the next available unit in the project must become an affordable unit to replace the one that is no longer in compliance. Displacement is highly discouraged, and at all times, the rental housing code must be followed.  


Rental Housing Code