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File #: 22-0687    Version: 1
Type: information Status: Filed
File created: 7/12/2022 In control: Land Use & Environment Committee
Agenda date: 7/21/2022 Final action: 7/21/2022
Title: Multi-Family Tax Exemption Market Analysis Update
Title
Multi-Family Tax Exemption Market Analysis Update

Recommended Action
Committee Recommendation:
Not referred to a Committee.

City Manager Recommendation:
Provide feedback on the analysis and next steps in the consultant's study. Move to recommend the final consultant report to City Council be reviewed at a City Council Study Session in September.

Report
Issue:
Whether to receive a briefing from the consultant, ECONorthwest, on its current market analysis related to the City's Multi-Family Tax Exemption program and provide feedback on the analysis and next steps in the consultant's study.

Staff Contact:
Darian Lightfoot, Housing Programs Manager, 360.280.8951

Presenter(s):
Michelle Anderson, EcoNorthwest
Jennifer Cannon, EcoNorthwest

Background and Analysis:
In January, the City of Olympia sought proposals from qualified consultant teams for research and recommendations to forward objectives of Olympia's Housing Action Plan. The plan recognizes an urgent need for more housing supply in the city, including increasing the number of units affordable to low-income households. The City wants to structure its zoning, regulations and incentives in a way that encourages needed housing development.

This request for proposals was for the first phase of this work effort. This request was for a study to help the City determine how best to structure the City's Multi Family Tax Exemption (MFTE)(see Olympia Municipal Code 5.86) and understand its effect on the likelihood of encouraging private sector development, including both market rate and low-income affordable units, within specific areas. The Phase 2 study would aim to support partners and housing projects that involve land trusts, cooperatives, or other models that boost homeownership or stabilize the long-term affordability of the property for low to moderate income households.

ECONorthwest was the selected consultant for this study and began their work in March to examine the following questions:

* How...

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