Affordable Housing Incentives

Multi-Family Tax Exemption (MFTE)

The MFTE Program is a voluntary incentive for new multifamily development within the City's eligible areas. The MFTE provides an 8-, 12-, or 20-year exemption from property taxes paid on the housing portion of qualifying projects.

• 8-Year Exemption: Available to qualifying market-rate projects;

• 12-Year Exemption: Available to qualifying projects with at least 20% of units affordable to 1) rental households making at or below 60% AMI or 2) owner households making at or below 80% AMI;

• 20-Year Exemption: Available to qualifying permanently affordable homeownership projects with at least 25% of units affordable to owner households making at or below 80% AMI.

Only projects that comply with local and state code and are within the City's designated residential targeted areas are eligible for the exemption. See RMC 4-1-220.

Qualifying projects can apply after land use entitlement and prior to building permit issuance. Contact the project's Current Planner for more information.

Density Bonus for Affordable and Certain Housing

A density bonus is a voluntary incentive for increased residential density for developments that construct affordable dwelling units, cottage housing, or assisted living facilities. See RMC 4-9-065.

Contact the project's Current Planner for more information.

Waiver of certain fees can be requested for projects that meet affordable owner-occupied or affordable rental housing standards. See RMC 4-1-210.

Contact the project's Current Planner for more information. 

Waived Fees for Affordable Housing

Waiver of certain fees can be requested for projects that meet affordable owner-occupied or affordable rental housing standards. See RMC 4-1-210.

Contact the project's Current Planner for more information. 

HB 1590 Capital Funding and Commerce Connecting Housing to Infrastructure (CHIP) Funding Affordable Housing

The City is partnering with the State and 3 affordable housing providers for projects that support rental and homeownership opportunities for families experiencing homelessness and other vulnerable populations.

HB 1590 Capital Funding supports multiple projects. Willowcrest Phase II (2025) will receive $900,000 to support 3 of 19 townhomes reserved for families experiencing homelessness through Homestead Community Land Trust. Steele House (2025) will receive $500,000 to support 6 new townhomes for families experiencing homelessness and survivors of domestic violence through St. Stephen Housing Association. Vision House Phase IV (2026, potential funding) is expected to add 28 units with wraparound services and childcare (anticipates HB 1590 and CHIP support).

Commerce Connecting Housing to Infrastructure (CHIP) Funding includes a $1,000,000 grant awarded in 2026 for Willowcrest Phase II to offset infrastructure costs. Additional CHIP funding may be pursued in 2027 for Vision House Phase IV and Steele House.