Expanding Multifamily Affordable Housing Tax Incentives in Washington State

August 16, 2022  

In Depth: Expanding Multifamily Affordable Housing Tax Incentives in Washington State

The In Depth section on HUD User's Regulatory Barriers Clearinghouse (RBC) takes a closer look at innovative state and local strategies, activities, and plans to mitigate the impacts of regulations on the development of affordable housing. Each In Depth article highlights a particular plan, ordinance, or strategy in the RBC database and elaborates on aspects such as the approval process, stakeholder participation, and the progress made in reducing regulatory barriers.

In 2021, Washington state expanded its longstanding Multifamily Housing Tax Exemption (MFTE) program to incentivize development of affordable housing. The changes are helping to extend existing affordability requirements for previously exempted properties in addition to creating new incentives with enhanced affordability requirements for new construction. Finally, the legislation expands the geographic reach of the MFTE program into smaller cities and rural counties previously not eligible to offer the tax exemption. The program is expanding rental and homeownership opportunities in amenity-rich areas for low- and moderate-income households in the state.

Visit HUD User's RBC In Depth page to learn more about Washington's MFTE program, as well as other plans and initiatives that state and local governments have enacted to reduce impediments to affordable housing.