Affordable Housing and Property Tax Exemptions
When people hear about property tax exemption programs, many see them as giveaways to developers. In fact, Shoreline’s property tax exemption program is a valuable tool that helps bring affordable housing to Shoreline.
We offer multi-family residential Property Tax Exemptions (PTE) to encourage multifamily development with affordable housing units included. In order to qualify for the PTE incentive, the applicant must commit to rent or sell 20% of the project's units to qualified renters/buyers at "affordable" rates. Shoreline uses the Adjusted Median Income (AMI) for King County 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 ($67,200 for a family of four); and
- 2 bedroom or larger units must be affordable to those earning 80% of the King County AMI ($76,800 for a family of four).
The program is only available for investors who build or rehabilitate four or more units. In addition, the PTE is only on the estimated value of the improvements; the land value continues to be taxed. The exemption lasts for twelve years and begins the first full calendar year after the project is completed.
Shoreline's PTE program is currently offered in nine areas:
- 145th Street Station Sub-Area
- 185th Street Station Sub-Area
- Aurora Avenue N Corridor
- Ballinger Way NE Commercial Area
- Hillwood Commercial Area
- North City Business District
- Richmond Beach Commercial Area
- Ridgecrest Commercial Area
- Southeast Neighborhoods Commercial Area
For more information about the PTE program, contact Economic Development Manager Nathan Daum at firstname.lastname@example.org or (206) 801-2218.