Beyond Bending Tell You How
Seattle is a city that is known for its high cost of living. While the city has a growing economy and plenty of job opportunities, the cost of living can be a barrier to many low-income families. The City of Seattle has recognized this issue and has implemented programs to address the need for affordable housing. One of these programs is the Multifamily Tax Exemption (MFTE) program.
The MFTE program is designed to encourage the development of affordable housing by providing tax exemptions to property owners who agree to offer a certain percentage of their units to low-income tenants. In Seattle, the MFTE program is administered by the Office of Housing, which is a division of the Seattle Department of Housing.
What is MFTE Housing?
MFTE housing is a type of affordable housing that is available to low-income families in Seattle. The program was created to incentivize developers to build housing that is affordable to people with low to moderate incomes.
Under the MFTE program, developers are eligible for a property tax exemption if they set aside 20% to 25% of the units in their building for low-income tenants. The rent for these units is capped at a certain percentage of the area median income (AMI). The AMI is determined by the federal government and is based on the income of all households in the Seattle metropolitan area.
How Does MFTE Housing Work?
The MFTE program works by providing tax exemptions to property owners who agree to offer a certain percentage of their units to low-income tenants. Developers who participate in the program must set aside 20% to 25% of the units in their building for low-income tenants. The rent for these units is capped at a certain percentage of the area median income (AMI). The exact percentage varies depending on the building’s location and the number of bedrooms in the unit.
In exchange for offering these affordable units, the property owner receives a tax exemption on their property taxes. The exemption lasts for 12 years and is based on the value of the affordable units in the building. After the 12 years are up, the property owner must continue to offer the affordable units or pay back the tax exemption they received.
Who Qualifies for MFTE Housing?
To qualify for MFTE housing, you must meet the following criteria:
- Your household income must be below a certain percentage of the area median income (AMI)
- You must be a legal resident of the United States
- You must pass a credit and background check
The exact income limits vary depending on the number of people in your household and the location of the building. In general, households earning up to 80% of the AMI are eligible for MFTE housing.
How to Apply for MFTE Housing?
If you are interested in applying for MFTE housing, you can search for available units on the Office of Housing website. The website includes a list of properties that participate in the program and information on how to apply for each property.
You can also contact the property manager of a building that participates in the program to ask about availability and application requirements. In general, you will need to provide proof of income, employment, and residency to apply for MFTE housing.
Benefits of MFTE Housing
MFTE housing offers several benefits to low-income families in Seattle:
- Lower Rent: MFTE housing units are capped at a certain percentage of the area median income, making them more affordable than other units in the building.
- Long-Term Affordability: Property owners who participate in the program must offer the affordable units for at least 12 years, ensuring that they remain affordable for the long term.
- Location: Many MFTE housing units are located in desirable areas of the city, making them a great option for families who want to live in the heart of Seattle.
- Stability: MFTE housing provides stability for low-income families, allowing them to live in a safe and affordable home without fear of displacement.
Drawbacks of MFTE Housing
While MFTE housing offers many benefits, there are also some drawbacks to consider:
- Availability: MFTE housing units are limited and not available in every building. This can make it difficult for some families to find affordable housing.
- Income Limits: To qualify for MFTE housing, your household income must be below a certain percentage of the area median income. This can be a barrier for families who earn slightly above the income limit.
- Competition: Because MFTE housing units are limited, there may be a lot of competition for available units. This can make it difficult for some families to secure a unit.
MFTE Housing in Seattle: By the Numbers
The MFTE program has been successful in increasing the availability of affordable housing in Seattle. Here are some key statistics:
| Year | Number of Units | Number of Buildings |
|---|---|---|
| 2010 | 1,300 | 30 |
| 2015 | 2,500 | 55 |
| 2020 | 4,000 | 90 |
As you can see, the number of units and buildings participating in the program has increased significantly over the years.
Conclusion
MFTE housing is an important program that provides affordable housing options for low-income families in Seattle. While the program has its drawbacks, it has been successful in increasing the availability of affordable housing in the city. If you are a low-income family in Seattle, it is worth exploring MFTE housing as an option for affordable housing.
People Also Ask
What is the AMI in Seattle?
The AMI in Seattle is determined by the federal government and is based on the income of all households in the Seattle metropolitan area. The exact AMI varies depending on the number of people in your household and the location of the building. In general, households earning up to 80% of the AMI are eligible for MFTE housing.
How long does the MFTE tax exemption last?
The MFTE tax exemption lasts for 12 years and is based on the value of the affordable units in the building. After the 12 years are up, the property owner must continue to offer the affordable units or pay back the tax exemption they received.
How do I apply for MFTE housing?
If you are interested in applying for MFTE housing, you can search for available units on the Office of Housing website. The website includes a list of properties that participate in the program and information on how to apply for each property. You can also contact the property manager of a building that participates in the program to ask about availability and application requirements.
