Council Moves to Vote on Changes to the MFTE in Downtown
January 9, 2018 - by Matt Jack
Category What's Happening
Council Moves to Vote on Changes to the MFTE in Downtown
The City Council directed staff to prepare amendments to the Multi-Family Tax Exemption (MFTE) yesterday evening at the extended study session. Council is scheduled to vote on the amendment on February 5, 2018.
Bellevue City Council
The Bellevue MFTE is a 12-year property tax exemption in exchange for 20 percent affordable housing of a development. It was implemented over a year ago, but there’s been little participation in program. As it currently stands, the MFTE is not an attractive program for Downtown developers.
The proposed ordinance would alter the language relating to the Downtown area. The current MFTE dictates that 10 percent of the units must be at 60 percent of the King County median income and another 10 percent must be at 70 percent of the King County median income. The amendment combines the two different requirements into a single required percentage. The change would require 20 percent of the units must be at 70 percent of the King County median income.
Additional items in the amendment include an administrative review for exceptions and an adjustment to the fee payment process.
The MFTE can be coupled with the 1.0 FAR affordable housing exemption that was adopted into the Downtown Land Use Code late last year.
Downtown Land Use Code | 20.25A.070
Affordable Housing Development Flexibility. A maximum of 1.0 FAR of floor area may be exempted to support the provision of affordable housing, minimum parking may be reduced, and additional development flexibility allowed, as provided below.
a. Up to 1.0 FAR of floor area dedicated to support the creation of on-site affordable housing shall not be counted for the purposes of calculating the FAR of a project, provided that:
i. For every 1.0 square feet of affordable housing provided at 80 percent AMI, 2.5 square feet is allowed for market rate housing not to exceed a maximum of 1.0 FAR total;
ii. The bedroom mix and exterior finishes shall be comparable to the market rate units, but interior design, unit size, amenities and interior finishes may vary; and
iii. An agreement in a form approved by the City will be executed by the applicant and recorded with the King County Record’s Office, or its successor organization, requiring the affordable housing to remain for the life of the project. This agreement shall be a covenant running with the land, binding on assigns, heirs, and successors of the applicant.
Documents
- (January 8, 2018) Draft Ordinance
- (January 8, 2018) Council Agenda Memo re: MFTE Amendment
The Council is receiving feedback from the community. If you wish to share input with the Council, please send your comments to council@bellevuewa.gov.
Adjusting the MFTE is one element of the Affordable Housing Strategy the City is pursuing to meet the demand for more affordable housing.
Are you a BDA member interested in participating in land use advocacy work? Contact Matt Jack, BDA Policy Manager to be added to the Land Use & Livability Committee distribution list.
