Frequently Asked Questions

MFTE programs are property tax waiver programs enacted by cities and counties to support local housing goals. Under Chapter 84.14 RCW, local governments can give exemptions for new construction, conversion, and rehabilitation of multifamily residential improvements with at least four units. Under these exemptions, a property owner does not pay property taxes on residential improvements for a given number of years. The property owner still pays tax on the land and on non-residential improvements like the commercial portion of a mixed-use building.

Promotes Housing Development: Incentivizes multi-family development and affordable housing.

Reduces Development Barriers: Reduces barrier to entry for new development by reducing costs through property tax exemption.

8-Year: requires at least 20% of housing units to be reserved for low - and moderate-income households. Under the statute, household income is based on the Clallam County Area Median Income (AMI), with households with incomes at 80% of AMI or less.

12-Year: requires at least 20% of housing units to be reserved for low - and moderate-income households. Under the statute, household income is based on the Clallam County Area Median Income (AMI), with households with incomes at 80% of AMI or less.

20-Year: requires that 25% of units be reserved for affordable housing for households at 80% AMI or below, with a nonprofit or government agency sponsoring the sale and restrictions in place for resale to ensure long-term affordability.

"Low-income household" means a single person, family, or unrelated persons living together whose adjusted income is at or below 80 percent of the median family income adjusted for family size, for Clallam County, as reported by the United States Department of Housing and Urban Development.

"Moderate-income household" means a single person, family, or unrelated persons living together whose adjusted income is more than 80 percent of the median family income adjusted for family size, for Clallam County, as reported by the United States Department of Housing and Urban Development.

If an application is conditionally approved, the applicant shall enter into a contract with the City regarding the terms and conditions of the project as provided in Port Angeles Municipal Code (PAMC) 17.47.040.A.9. The Director shall issue a conditional certificate of acceptance of tax exemption. If a project is not completed within three years, the conditional certificate expires unless an extension is granted as provided in this chapter.

Conditional Certificate: The conditional certificate is a temporary agreement between the City of Port Angeles and the multi-family developer to exempt taxes for residential improvements upon the completion of construction. The conditional certificate expires three years from the date of approval unless an extension is granted as provided in PAMC 17.46.060.

Final Certificate: The final certificate process is codified in the PAMC 17.46.070. The final certificate is what a developer/owner needs to record with the Clallam County Assessor's office. This makes the building tax-exempt. 

1. Potential applicants can visit the CED website and download the MFTE application.
2. The MFTE application must completed and include all other required documents and be submitted to ced@cityofpa.us
3. The Housing Administrator will notify the applicant within 30 days of the application being filed if the Housing Administrator determines that an application is not complete and shall identify what additional information is required before the application will be determined complete. 
4. A decision to approve or deny an application shall be made within 65 days of receipt of a complete application.

For further details, please refer to the application process codified in PAMC 17.46.050.

Please email the City’s Housing Administrator at jboado@cityofpa.us. You can also schedule an appointment with a planner by calling 360-797-8616 or visiting our website:  www.cityofpa.us/BookAMeeting.