During the Everett City Council meeting held on July 29, 2026, the city addressed two of the topics supporting efforts to increase future access to affordable housing in the city. Amendments to the 2026 Multifamily Tax Exemption (MFTE) program were approved by the council, and the council held a first reading of an ordinance to allow the sale of city property for the purpose of public benefit, such as affordable housing.
MFTE Changes
Council Bill 2606-35, the 2026 MFTE Program, is intended to expand housing opportunities in the city by offering temporary tax exemptions to qualifying property owners and developers. In the meeting, the council voted and approved amendments to CB 2606.35, with the most significant change to the number of units necessary in new construction for program qualification. After approval, new construction is now required to be a minimum four-dwelling unit project in order to qualify for the exemption – previously a minimum of 16 units was needed to qualify. Additionally, the approved amendment allows the minimum count to be met across multiple structures of a single project.
Further amendments provide clarity to the definition of “affordable housing”, the definition of “income qualified household” as well as adjustments to the explanation of “permanent residential occupancy” in order to exclude housing intended for medical care, in addition to hotels and motels.
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The approved amendment also includes distinctions for a property owner that is seeking a 12 year extension to their tax-exempt status. Namely, the change designates that the property must provide at least 20% of its units to households with an income that is at or below 80% of the median household income for Snohomish County – an older proposal had originally recommended a minimum of 50% of units.
After the amendment approval, designated residential target areas for MFTE will now expand to include “Neighborhood Residential” (NR) and “Urban Residential 4” (UR) zones. With this extension, the program is now estimated to enable approximately 8,000 new housing units.
Future Proposals
A briefing was provided during the meeting for Council Bill 2607-39, an ordinance to establish rules and procedures that would give the city authority to transfer, sell, or lease its property for public benefit, specifically affordable housing. Community development manager Kembra Landy explained that the ordinance would allow the city to put forth surplus properties to be sold at below fair-market value, or even provided at no cost for low-income housing projects.
Although the ordinance is at the preliminary steps in its potential adoption, a program that has proven successful in other nearby cities. But it is necessary to establish clear guidelines on the process of these potential property transfers or sales.
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