Content current as of 04/29/26
Affordable Housing Action Strategy
The Affordable Housing Action Strategy is an initiative to address our housing affordability crisis through 27 strategic actions defined by the City and our stakeholders.
Affordable housing is key to the health and wellbeing of Tacoma individuals and families, from knowing ones’ belongings are secure to children attending the same school each year. It is core to the vibrancy of Tacoma’s neighborhoods, allowing residents to participate in and nurture the cultural richness of Tacoma. And yet, in the last ten years home prices in Tacoma have nearly tripled, rents have nearly doubled (Sources: Zillow Home Value Index and Observed Rent Index). This leaves little money left over for other necessary expenses.
Tacoma’s Affordable Housing Action Strategy (AHAS) seeks to address this. Passed in 2018, the AHAS lays out 27 actions the City can take to create homes, preserve homes, help people stay in their homes and communities, and reduce housing barriers for our most vulnerable neighbors.
Goals & Data
- Objective 1: Create more homes for more people
- 403 affordable housing units constructed in 2025
- 1,964 affordable housing units constructed since 2019
- 2028 goal: 6,000 units
- Objective 2: Keep housing affordable and in good repair
- 101 low-income homes preserved in 2025
- 378 low-income homes preserved since 2019
- 2028 goal: 2,300 units
- Objective 3: Help people stay in their homes and communities
- 17,369 low-income Tacoma households served with $11,639,134.53 in 2025
- 88,348 low-income Tacoma households served with $54,968,818.43 since 2019
- 2028 goal: 1,200 households served
- Objective 4: Reduce barriers for people who often encounter them
- 661 Tacoma shelter residents exited to housing in 2025
- 3,979 Tacoma shelter residents exited to housing since 2020
- 2028 goal: 1,000 households served
Objective 1: Objectives in Action
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- Affordable housing bonus options added into the Home in Tacoma package.
- The Lookout development, completed in 2025, added 133 units of affordable units for seniors.
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- The MFTE program allows for an 8-year property tax exemption for new multifamily housing units, a 12-year exemption if 20% of those units are affordable at 70% of the Pierce County area median income (AMI) for 12 years, and a 20-year exemption if 25% of the units are permanently affordable.
- 499 rent-restricted units built as of the end of 2025.
- 244 additional rent-restricted units approved and in the pipeline as of the end of 2025.
- Updates passed to the MFTE program in October 2025, including putting greater restrictions on the 8-year MFTE exemption; making it easier for households already in rent-restricted MFTE units to stay, allowing for greater stability for those residents; and putting restrictions on renewals of exemptions. Learn more at the link above.
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- When City or Tacoma Public Utilities (TPU) owned land is deemed no longer needed, it prioritizes selling of transferring ownership of it for the purpose of building affordable housing.
- Learn more on the City’s Surplus Land web page.
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- The City’s Homebuyer Education and Down-payment assistance program began in Fall 2023 and is now working with prospective first-time homebuyers.
- The City conducted a Housing Disparity Study to examine disproportionalities in homeownership and the inaccessibility of generational wealth building for communities of color.
- To learn more about resources related to first-time homebuyer assistance please see the City’s Housing Division web page.
- 39 Households served with $1,895,000 in down-payment assistance since 2018.
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- Home in Tacoma: The City Council has adopted a package of policy changes to Tacoma’s Comprehensive Plan—our blueprint for growth—that would allow more duplexes, triplexes, cottages and multifamily buildings throughout the city. Read the Year One Report (April 2026).
- The Planning and Development Services department offers on-site assistance program for homeowners interested in building an Accessory Dwelling Unit (ADU) to help them understand the opportunities and challenges specific to their property.
- Pre-approved plans for Detached Accessory Dwelling Units (DADUs) are available to Tacoma homeowners.
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- 920 affordable units built as of the end of 2025.
- 385 affordable units coming online as of the end of 2025.
- Affordable Housing Fund: Resolution 40527 established the City’s Affordable Housing Fund using sales and use tax revenue authorized under Substitute House Bill 1406, providing more capital to developers of Affordable Housing in Tacoma.
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- To learn more about the City’s Homelessness Strategy, visit the Homelessness Services web page.
- Since 2020, through City funded shelter site, 3979 individuals have exited to permanent housing.
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- Implemented Director’s Rule 01-2021 and 02-2021, establishing an affordable housing priority plan review and pre-development fee waiver policy.
- Policy Documents and Director’s Rules: In addition to new policies prioritizing affordable housing through the development process, Planning and Development Services has also dedicated a Development Specialist to liaise with affordable housing developers.
- To learn more about the available incentives for building affordable housing and green sustainable housing in Tacoma, please visit the City’s Development Incentives web page.
Objective 2: Objectives in Action
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- Single Family Rehabilitation program helps with major homes repairs and has completed 72 projects since 2019, while the City contracts with Rebuilding Together South Sound to complete minor home repair projects, which has done 244 projects since 2019.
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78 units of affordable housing are being preserved as part of Urban Black’s Ceiba project between Market Street and St. Helens Avenue along 9th Avenue. While the City does not have a dedicated preservation fund, $1,000,000 was directed to this project. Learn more here: City of Tacoma – File #: 25-0577.
Objective 3: Objectives in Action
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- Since 2019, 7,096 people have been served through the Landlord Tenant Program.
- Since 2019, 32 households have been served with $32,000 via the Tenant Relocation Fund.
- If you are in need of help relocating or would like to learn more, visit the Relocation web page.
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- Between 2019 and 2025 the City and TPU have:
- Assisted 8,158 households with housing assistance totaling over $5,703,493.00, which includes support for damage deposits, first and last month rent, monthly rental subsidy, transportation, utilities, and eviction settlements.
- In 2020, helped 12,765 customers with Emergency Utility Assistance, administering over $2.29 million in funds.
- Served 29,958 Utility customers through TPU’s and ES’s Bill Credit Assistance Plan with $10,669,373.60.
- Served 39,677 utility customers through TPU’s and ES’s Discount Rate Program with $23,942,468.71.
- Between 2019 and 2025 the City and TPU have:
Objective 4: Objectives in Action
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- Rental Assistance: Provided 1,959 households with emergency rental assistance, distributing over $9,642,688.46 in funds.
- Exceeded equity goals—serving 68% people of color from 2020 through 2023.
- Pierce County received $7.4 million for 2023-25 to operate eviction prevention programming. Because of this State contribution, and because the City’s emergency rental assistance program was funded entirely with federal dollars in the 2023-24 biennium, the City made the decision not to fund additional rental assistance programing. Information on the County’s eviction prevention efforts can be found on Pierce County’s Eviction prevention web page.
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- Passed Substitute Ordinance 28747 authorizing the City to collect 1/10 of 1% sales and use tax for affordable housing and behavioral health-related facilities and related services.
Affordable Housing Resolutions and Ordinances Passed by City Council
The City Council continues to prioritize affordable housing in its policy decision-making processes. Since 2018 the City has adopted the following legislation to increase housing stability in Tacoma.
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Ordinance and Resolutions Description Date of Adoption Ordinance Number 29086 An ordinance amending Chapters 1.95 and 1.100 of the Municipal Code, relating to the Rental Housing Code and Landlord Fairness Code Initiative, by amending various sections, to implement updates relating to landlord-tenant issues as recommended by the Community Vitality and Safety Committee December 9, 2025 Substitute Ordinance 29059 An ordinance updating the Multifamily Tax Exemption Program amending the eligibility criteria for the 8-year exemption, providing greater flexibility for residents already in rent-restricted units, and requiring additional AMI limits for exemption renewals for property owners. October 8, 2025 Ordinance Number 28986
An ordinance adopting the Home in Tacoma Phase 2 zoning and standards amendments as recommended by the Planning Commission, and amending various chapters in Titles 1, 2, 9, 10, 12, and 13 of the Municipal Code, to support additional housing choice, supply, and affordability in the City, and to comply with changes to state law.
November 19, 2024
Resolution No. 41358
A resolution affirming and adopting the Anti-Displacement Strategy as guide for options regardng how the City can address the displacement of Tacoma residents from their homes and communities.
February 6, 2024
Ordinance Number 28994
The Rental Housing Code was updated to include new tenants protections and guidance for landlords, specifically a 120-day rent increase notice, shared housing standards, late fee and deposit standards, prospective tenant screening criteria standards, business license and health and safety requirements, and banning dog breed restrictions.
July 11, 2023
Resolution No. 41126
The Surplus Land policy was updated to further prioritize land be used for affordable housing by allowing for affordable homeownership development and multiple tiers for rental affordability.
January 24, 2023
Resolution NO. 40871
Relates to housing displacement; affirming the City of Tacoma’s support of the use of data-informed tools to prevent displacement of local residents and strongly encourages the City’s partners to use these tools to ensure more residents are able to stay in Tacoma with a focus on households from “low” and “very low” opportunity areas of the City, as well as Black, Indigenous, and People of Color households, and directing the City Manager to evaluate options to assist in preventing displacement of residents.
November 16, 2021
Ordinance NO. 28770
Amends Chapter 6A.110 of the Municipal Code, entitled “Property Tax Exemptions for Multi-Family Housing”, to eliminate the eight-year Multi-Family Property Tax Exemption in mixed-use centers designated “very high” opportunity, based on the City’s Equity Index, effective 90 days after passage of this ordinance.
November 9, 2021
Resolution NO.40866
Supports the proposed changes to the Multi-Family Property Tax Exemption (“MFTE”), as recommended and approved by the Government Performance and Finance Committee; amending the City’s MFTE to align with state law; eliminating the eight-year MFTE in mixed-use centers designated “very high” opportunity based on the City’s Equity Index; requiring the City Council to revisit the changes to the MFTE program in three years; and directing the City Manager to explore other changes to enhance the City’s use of the MFTE.
November 9, 2021
Ordinance NO.28780
Amends Chapter 1.95 of the Municipal Code, relating to the Rental Housing Code, to align with new notice requirements in Engrossed Substitute House Bill 1236 and the State of Washington’s Residential Landlord-Tenant Act, to provide additional protections through just cause evictions, and to allow enforcement action.
September 12, 2021
Ordinance NO.28747
Amends Chapter 6A.70 of the Municipal Code, relating to Local Option Taxes, by adding Section 6A.70.041 entitled “Additional sales or use tax for housing and related services - Imposition” and Section 6A.70.042 entitled “Additional sales or use tax for housing and related services - Rate,” and amending Section 6A.70.120 relating to “Administration and collection of taxes” to authorize the maximum capacity of the tax authorized under the provisions of House Bill 1590 for housing and related services.
March 30, 2021
Resolution NO.40697
Directs the City Manager to use the Down Payment and Foreclosure Assistance disparity study, to identify disparities or displacement that resulted in disproportionate homeownership and the inaccessibility of communities of color, and particularly Black communities, to build generational wealth; and to provide an update to the City Council within six months, and recommendations no later than August 2021, to include specific budget and policy recommendations to increase Black homeownership in Tacoma, including the potential consideration of dedicating a percentage of all down payment assistance funds to Black residents.
November 24, 2020
Resolution NO.40527
Establishes the activities and income criteria for the City's Affordable Housing Fund, for the purpose of prioritizing projects that are eligible for funding.
October 15, 2019
Ordinance NO.28610
Adopts amendments incorporating Tacoma's Affordable Housing Action Strategy (AHAS) into the Housing Element of the One Tacoma Comprehensive Plan, updating housing affordability data, and lending greater policy support for the implementation of the AHAS, as part of the proposed amendments to the Comprehensive Plan and Land Use Regulatory Code for 2019, as recommended by the Planning Commission.
September 24, 2019
Resolution NO.40429
Amends the Policy for the Sale/Disposition of City owned General Government Real Property to better align with current City goals to increase prioritization for affordable housing and equity.
September 17, 2019
Substitute Ordinance NO.28601
Amends Chapter 6A.70 of the Municipal Code, relating to Local Option Taxes, by adding Section 6A.70.047 entitled "Credit against state's share of tax - sales or use tax for affordable housing - Imposition" and Section 6A.70.048 entitled "Credit against state's share of tax - sales or use tax for affordable housing - Rate," and amending Section 6A.70.120 relating to "Administration and collection of taxes" to authorize the maximum capacity of the tax authorized under the provisions of Substitute House Bill 1406 for affordable and supportive housing; and declaring an emergency, making necessary the passage of this ordinance and it becoming effective immediately.
August 27, 2019
Resolution NO.40112
A resolution receiving the Affordable Housing Action Strategy to guide enhancement of existing policies and programs, identification and deployment of additional funding, and development of strong anti-displacement measures to stabilize existing residents.
September 25, 2018