Multi Family Property Tax Exemption Program Overview

Please see refer to the MFTE Program manual for program facts and details. 

What Types of Housing Developments Qualify?

The MFTE program offers tax exemptions for two types of housing developments.

Type One: 12-Year Affordable Housing Program

Qualifying affordable housing developments are eligible for a twelve (12) year tax exemption. For the property to qualify for the twelve (12) year exemption, applicants must commit to renting or selling at least twenty percent (20%) of the multi-family housing units as affordable housing units to low- and moderate-income households. Additionally, the property must satisfy any affordability and income eligibility conditions adopted by the City of SeaTac.

Type Two: 8-Year Market-Rate Housing Program

Market-Rate Housing developments are eligible to receive an eight (8) year tax exemption. There are no additional requirements for this tax exemption.

Where Does the MFTE Apply?

Only projects located within the Urban Center boundary are eligible to apply for the MFTE program.

Information for Tenants

Prospective tenants interested in designated Affordable Housing units can look below for a list of Current MFTE Properties within the City.

Prospective tenants will need to qualify for affordable housing units based on the following:

• To qualify for Low Income Household units, your household must have a gross income less than or equal to 80% of Median Family Income based on your household size. For a family of four, the 2024 gross income threshold is set at $117,920.

   

• To qualify for Moderate Income Household units, your household must have gross income between 80% and 115% of Median Family Income based on household size. For a family of four, the 2024 gross income threshold is set between $117,921 and $169,510.

   

• See the Annual Income Table below to see if your household qualifies.

   

• For Affordable Units, households cannot pay more than the established limit for rent, utilities, and other housing expenses based on unit size. See Annual Rent Limits Table below.

Tenants who apply to these Affordable Housing Units will be required to submit documentation to their prospective landlord to verify they meet program eligibility requirements.  Submission of this documentation will be required both for initial program eligibility and on an annual basis.

Developer Application and Reporting Documents

Before Construction

Developers interested in the MFTE program must apply for a Multi-Family Property Tax Exemption Conditional Certificate.  

Multi-Family Property Tax Exemption Conditional Certificate Application is available online at: https://www.seatacwa.gov/government/city-departments/community-and-economic-development/permits-land-use-applications

The MFTE application is available online at: https://lama.seatacwa.gov/.

Post Construction

Developers issued a MFTE Conditional Certificate and have obtained a certificate of occupancy may request a Final Certificate of Tax Exemption

Annual Reporting

For the next 8 or 12 years, depending upon the length of your exemption, you are required to file an Annual Report certifying that the property is still in compliance with its contract.

All MFTE Forms

• Sample Agreement
• Tenant Income Verification
• MFTE Annual Report Property Tax Exemption

Annual Income & Rent Limits

To qualify for the 12-year tax exemptions both household rents and incomes are restricted for qualifying affordable units. These restrictions are based on calculations of area median family income provide by the U.S. Department of Housing and Urban Development (HUD) and are updated annually.

The below tables for SeaTac MFTE Annual Income and Rent Limits are updated for 2024. 

Current MFTE Properties

There are no current properties that have active final certificates.  

Further Information

Please refer to the MFTE Program Manual for more program details about MFTE qualifying requirements and how to apply.

We look forward to working with you and welcome your questions. You may contact us at seatacplanning@seatacwa.gov.