Exemption—Duration—Limits
Seattle Mun. Code § 5.73.090
in effect5.73.090 - Exemption—Duration—Limits
A. The value of multifamily rental housing qualifying under this Chapter 5.73 shall be exempt from ad valorem property taxation for up to 12 successive years beginning January 1 of the year immediately following the calendar year of the date of the Final Certificate.
B. The value of each permanently affordable home according to this Chapter 5.73 shall be exempt from ad valorem property taxation for up to 20 successive years beginning January 1 of the year immediately following the calendar year of the date of the Final Certificate.
C. Extended property tax exemption
1. The owner may apply for an extended exemption of the value of qualifying multifamily rental housing from ad valorem property taxation for up to a total of 12 successive years beginning January 1 of the year immediately following the calendar year that the original 12-year exemption expires according to subsection 5.73.090.A if the Office of Housing receives an application to extend MFTE for an additional 12 years, on a form provided by the Office of Housing, no later than May 1 of the scheduled expiration year.
2. The application shall contain information as the Director may deem necessary to evaluate eligibility of the multifamily housing for an extended property tax exemption according to Chapter 5.73, consistent with this subsection 5.73.090.C, plus the following:
a. Owner affidavits, including acknowledgement of the potential tax liability of the multifamily housing;
b. A title report dated within three months of the application submission date, for all, and only those, parcels on the property, and identifying the fee simple owner;
c. A sample signature block for the owner and, if the signature block includes more than one entity, an operating agreement confirming the relationship between the grantor and other entities identified in the signature block; and
d. A non-refundable check for the MFTE extension application fee, payable to The City of Seattle in the amount of the MFTE program fee according to subsection 5.73.050.B.2, and a commitment of the owner to pay the actual cost of Assessor administrative fees and King County recording fees prior to issuance of a new Final Certificate.
3. Criteria for decisions to approve an MFTE extension application include that:
a. The multifamily housing would be eligible for MFTE under current rules;
b. The multifamily housing and the property on which it is located must have no SDCI-issued violations of applicable provisions of Titles 22, 23, and 25 that failed to be resolved by a certificate of compliance, certificate of release, or withdrawal within the time period for compliance provided in such notice of violation or as extended by the Director of SDCI;
c. A record exists with complete annual reports, passing audits as part of regular program monitoring, and no outstanding areas of concern or findings of non-compliance with the MFTE agreement and this Chapter 5.73; and
d. Documentation exists of tenant notification of the owner's intent to pursue a 12-year extension of the property tax exemption and required income verification for MFTE unit tenants according to subsection 5.73.090.C.6.a.
4. A documented pattern of non-compliance with the MFTE agreement for the initial 12-year tax exemption is a ground for denial.
5. If the MFTE extension application is approved, a new MFTE agreement shall be executed and recorded on the title of the property that includes the multifamily housing committing the owner to requirements according to this Chapter 5.73, except that:
a. MFTE units shall be leased at affordable rents to eligible households with annual incomes five percentage points lower than the limits according to subsection 5.73.040.B.4, except that the limits may not exceed 80 percent of median income per RCW 84.14.020 and studios greater than 320 square feet are regulated at 60 percent of median income; and
b. The MFTE agreement shall consider current MFTE unit tenants income eligible as determined according to subsection 5.73.090.C.6.b, consistent with subsection 5.73.090.C.9.
6. For properties with initial 12-year exemptions that intend to apply for the 12-year extension, the owner shall:
a. No later than May 1 of the calendar year in which the MFTE exemption is set to expire, provide written notice to all tenants of MFTE units of owner's intent to pursue a 12-year extension of the property tax exemption and initiate the income verification process for each MFTE unit tenant household without an annual income certification in the calendar year in which the exemption is set to expire; and
b. Provide to the Office of Housing the verified annual income of the tenant household for each MFTE unit according to Section 5.73.105 by September 30 of the calendar year in which the exemption is set to expire.
7. The share of total units provided as MFTE units shall be according to subsection 5.73.040.B.2.
8. Upon approval of an extended tax exemption according to this Chapter 5.73, the Director shall file a new Final Certificate with the Assessor. The owner shall be responsible for any administrative fees charged by the Assessor.
9. To steadily transition multifamily housing to full compliance with requirements for an extended property tax exemption, the following provisions apply:
a. For each MFTE unit, the affordable rent according to the current tenant's lease agreement as of January 1 of the calendar year subsequent to expiration of the initial 12-year property tax exemption and thereafter shall be no greater than according to subsection 5.73.090.C.5.a if an income verification demonstrates, consistent with Section 5.73.105, that the tenant household is an eligible household according to subsection 5.73.090.C.5.a.
b. If an income verification demonstrates that the tenant household would not be an eligible household according to subsection 5.73.090.C.9.a, the next comparable unit that is available, as approved by the Office of Housing, shall be designated as an MFTE unit and leased to an eligible household.
c. After income recertifications are submitted to the Office of Housing according to subsection 5.73.090.C.6.b, all vacant MFTE units shall be leased at an affordable rent to an eligible household according to subsection 5.73.090.C.5.a.
D. The property tax exemption for multifamily housing does not apply to the value of the following:
1. Land;
2. Non-residential improvements, including lodging, short-term rentals, and live-work units;
3. Areas of the multifamily housing where residents must pay a fee for use or access, except that:
a. The City shall exempt fee-generating structured residential parking garages from property taxes; and
b. Fees for occasional use of areas by private parties are permitted if the area is generally open and accessible at no cost to all residents;
4. Units not marketed and available to the general public or that are leased by owners and/or their family and friends;
5. Increases in assessed valuation of land and non-qualifying improvements; and
6. Increases, made by lawful order of the King County Board of Appeals and Equalization, the Washington State Department of Revenue, State Board of Tax Appeals, or King County, to a class of property throughout the county or a specific area of the county to achieve uniformity of assessment or appraisal as required by law.
E. Appraisal and addition of the new construction value of multifamily properties awarded a property tax exemption according to this Chapter 5.73 shall be according to chapter 84.55 RCW and chapter 36.21 RCW.
F. The owner must provide written notice to the Office of Housing of intent to appeal the valuation of the multifamily housing to the Assessor prior to filing such appeal.
(Ord. 127316, § 2, 2025; Ord. 127187, § 6, 2025; Ord. 127016, § 1, 2024; Ord. 126792, § 1, 2023; Ord. 126443, § 4, 2021; Ord. 125932, § 10, 2019; Ord. 124877, § 9, 2015 [style update]; Ord. 123550, § 6, 2011; Ord. 122730, § 8, 2008; Ord. 121415, § 1, 2004.)
Source: City of Seattle, Seattle Municipal Code and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/wa/seattle/codes/municipal_code?nodeId=TIT5REFITA_SUBTITLE_IITA_CH5.73MUHOPRTAEXPR_5.73.090EXURIMFetched: 11/1/2026