Multi-Family Property Tax Exemption Program (MFTE)
The City of Bremerton's Multifamily Property Tax Exemption Program (MFTE) provides a tax incentive to encourage the development of multifamily housing units in targeted areas of Bremerton.
The tax exemption applies to the new housing improvement portion of the property taxes. Owners who make eligible housing improvements are exempt from any tax increases related to those improvements for a period of 8 years. An exemption period of 12 years is possible if a minimum of 20% of the units are rented or sold as affordable housing. Owners will continue to pay the pre-improvement taxes on both the land and structure.
On May 18, 2016, the Bremerton City Council passed Ordinance 5302 to expand the MFTE targeted areas to match the Centers, as identified by the Comprehensive Plan. A complete list of regulations can be found in the Bremerton Municipal Code (BMC) Chapter 3.78.
The MFTE program:
Encourages increased residential opportunities, including affordable housing units, within areas of the city designated by the City Council as residential targeted areas
Stimulates new construction or rehabilitation of existing vacant and underutilized buildings for multifamily housing
Assists in directing future population growth to designated residential targeted areas, thereby reducing development pressure on single-family residential neighborhoods
Achieves development densities which are more conducive to transit use in designated residential targeted areas
The City of Bremerton has designated all of its Centers as target areas where MFTE may be used (see Figures 3.78a through 3.78g).
Once awarded the tax exemption, the applicant will be required to report, on an annual basis, to the City of Bremerton. The information will be compiled by DCD staff for all MFTE projects in the city and then reported collectively to the Washington State Department of Commerce. The required materials include:
Statement of occupancy and vacancy for the previous 12 months
Certification by the owner that the property has not changed use and, if applicable, that the property has been in compliance with the affordable housing requirements
A description of changes or improvements constructed after issuance of the certificate of tax exemption, if applicable
Documentation of renter income for the affordable units (in the case of the 12-year exemption)