Title
Approval of an Ordinance Adjusting Multi-Family Tax Exemption Area Boundaries
Recommended Action
Committee Recommendation:
Land Use and Environment Committee recommends adoption of the ordinance adding territory to the Eastside Residential Target Area eligible for multi-family tax exemption as authorized in Chapter 5.86 OMC.
City Manager Recommendation:
Move to approve an ordinance adding territory to the Eastside Residential Target Area for the Multi-family Tax Exemption Program on second reading.
Report
Issue:
Whether to approve an ordinance adding territory to the Eastside Residential Target Area for the City's Multi-family Tax Exemption Program.
Staff Contact:
Leonard Bauer, Deputy Director, Community Planning & Development, 360.753.8206
Presenter(s):
None - Consent Calendar Item
Background and Analysis:
Background and analysis have not changed from first to second reading.
State law authorizes the City of Olympia to adopt a multi-family housing tax exemption program (RCW 84.14). Olympia's Multi-Family Tax Exemption (MFTE) provisions are codified in Olympia Municipal Code Chapter 5.86.
The City Council first adopted the MFTE provisions in August 1997 (Ordinance 5713) with a 10-year property tax exemption for downtown multi-family projects. The code provisions were amended in December 1997 (Ordinance 5734) to add new residential target areas: Eastside (4th/State corridor between Eastside and Fir Streets) and Westside (Harrison Avenue corridor between Cushing and Foote Streets)(See attached map). After the State Legislature revised the 10-year exemption into an eight-year market rate or 12-year affordable housing tax exemption, the City Council adopted the eight- and 12-year provisions on January 26, 2009, along with refinements to the residential target areas (Ordinance 6618).
The Land Use and Environment Committee discussed potential additional MFTE areas at its April and December 2018 meetings. At this time, the Committee recommends t...
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