If you are a prospective tenant looking for MFTE program housing or other affordable housing, please see the Affordable Housing Opportunities Brochure.

The City of Shoreline offers Multifamily residential Property Tax Exemptions (MFTE) to encourage multifamily development and to provide affordable housing. 
  • The program is only available for investors who build or rehabilitate four or more units to rent.
  • Initially established in 2002, the MFTE program was simplified into one comprehensive 12-year affordable program on February 9, 2015.
  • The MFTE is only on the ad valorem value of improvements; the land value continues to be taxed.
  • The 12 year period begins the first full calendar year after the project is completed.

Updates

In October of 2021, Ordinance No. 944 took effect, which introduced several new updates to Shoreline's MFTE programs.

  • For projects with a covenant for 99-year affordability, a new 20-year MFTE program is available. Projects that have already applied for the 12-year program are eligible for a no-fee application to the 20-year program.
  • For projects nearing the end of their 12-year MFTE program, a 12-year extension is available for application.
  • The light rail station subarea MFTE area boundaries have been expanded to match the full extent of the light rail subareas, including current and future rezone phases.

The Affordable Housing MFTE Program

Ordinance No. 694 defines Shoreline's current MFTE program and replaces all previous MFTE programs. In order to qualify for the MFTE incentive, the applicant must commit to 20% of the project meeting the affordable housing definition in Shoreline Municipal Code (SMC) Chapter 3.27.020. Shoreline uses the HUD determination of the King County Adjusted Median Income (AMI) to determine affordability, and the city adjusts the percentage based on unit size:

  • Studio and 1 bedroom units must be affordable to those earning 70% of the King County AMI; and
  • 2 bedroom or larger units must be affordable to those earning 80% of the King County AMI.

MFTE program guidelines and forms for initial and on-going compliance and annual reporting can be found by clicking the links below:

Where MFTE is Offered

Shoreline's MFTE program is currently offered in nine areas. By clicking on the links below, one can view maps that determine whether one's parcel falls within a MFTE area.

Application Process

Applicants must apply for a Conditional Certificate of MFTE prior to receiving building permits. Once a Conditional Certificate is issued, the applicant must complete the project within three years; one two-year administrative extension is available. After completing the project, the applicant must apply for a Final Certificate of MFTE; once received, the actual exemption period begins on the next full calendar year.

To apply for a Conditional or Final Certificate of Property Tax Exemption, please use the following forms: