Affordable Housing Tax Exemption (MFTE)

Background: A tax exemption for affordable housing, typically called a "Multifamily Tax Exemption" (MFTE) is a type of tax credit, which is being proposed as an incentive to build affordable housing in specific areas of the city.

Benefits: An MFTE can be a significant financial incentive for developers to build affordable housing. It is a tool that many cities use to encourage affordable housing and to promote a variety of housing types.

What’s in the new code: Code changes to provide tax credits for affordable housing:

• Tax incentives applied in specific residential areas in Sumner. See the map below.
• Allows a development the benefit of a tax exemption for 12 years after project completion.
• Allowed only if a portion of the units are affordable (at least 20% of the units).

The City Council passed the MFTE code update in August 2022.