Title
Public Hearing on a Proposed Designation of Certain Additional Residential Areas for the Purposes of the Multi-Family Tax Exemption
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Hold a Public Hearing on the proposed a proposed designation of certain additional residential areas for the purposes of the Multi-Family Tax Exemption (MFTE).
Report
Issue:
Whether to a Public Hearing on the proposed a proposed designation of certain additional residential areas for the purposes of the MFTE.
Staff Contact:
Darian Lightfoot, Director of Housing and Homeless Response, 360.753.8033
Presenter(s):
Darian Lightfoot, Director of Housing and Homeless Response
Background and Analysis:
In January 2022, 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.
The research study focused on the MFTE to help the City determine how best to structure the program and understand its effect on the likelihood of encouraging private sector development, including both market rate and low-income affordable units, and potential boundary expansion. Using the findings of the study, the City is recommending a policy pivot and structuring the exemption as an affordable housing development program. This will include a focus on incentivizing the 12-year program while deepening the affordability requirements and marketing other City development incentives to help the project pencil. If the developer choses to forgo including affordable units in their projects, they will pay a fee in leu which will be directed to the City's affordable housing fund for future pr...
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