The City Council approved a resolution on June 2 authorizing a new Multi-Family Housing 12-Year Limited Property Tax Exemption (MFTE) agreement, paving the way for the development of 98 multi-family market and regulated rate rental housing units in the Proctor Mixed-Use Center.
Under the 12-year MFTE, 20 percent of the development – roughly 20 units – will be strictly reserved as affordable housing. The City of Tacoma requires these units to be rented to households making 70 percent or less of the Pierce County Annual Median Income.
“We don’t just need more housing in Tacoma, we need more affordable housing in neighborhoods across our city,” said District 1 Council Member John Hines. “I championed the removal of the 8-year MFTE program from Proctor in 2022 because it lacked affordability requirements. This new 12-year MFTE project is exciting because it provides additional confirmation that developers can make projects with affordable units work in Proctor. I am committed to ensuring we have affordable housing in all our unique and diverse neighborhoods, and tools like the 12-Year MFTE help make that possible. The MFTE program is not just about supporting development. It’s about keeping families connected, helping seniors age in place, and ensuring the people who work in Tacoma can live in Tacoma. This project will be a wonderful addition to the special Proctor-ness of the Proctor neighborhood.”
“There are many new housing development projects happening around Tacoma and rental units are being quickly leased as soon as they are built,” said At-Large Council Member Kristina Walker. “This indicates that demand for housing in our city is not slowing. We are committed to ensuring affordable housing opportunities exist in all our neighborhoods. That’s why our MFTE program requires affordable housing in high opportunity areas. This new 12-year MFTE project in Proctor is a great example of that commitment.”
The MFTE program is a critical economic development tool designed to encourage the creation of new multi-family housing in designated Residential Target Areas. 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.
To learn more about the MFTE program and how it supports housing access in Tacoma, please visit tacoma.gov/MFTE.