West End development would bring 68 multifamily units near Westgate shopping center
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- Two neighboring West End projects applied for 12-year MFTEs totaling 68 units.
- The proposal is a mix of four-plexes and apartments on the parcels.
- Separately, City Council in June also saw first owner-occupied units gain 12-year MFTE.
A West End apartment and multiplex project has applied for multifamily property-tax exemptions, the latest among several submitted or already approved in the City of Tacoma this month.
According to information provided for the two, 12 year-MFTEs, the projects are on neighboring vacant lots near the intersection of North Pearl and North 33rd streets, a few blocks north of Westgate North Shopping Center.
The 12-year MFTE program calls for at least 20% of the units to be affordable at 70% Pierce County Area Median Income (AMI) for 12 years, which as of May was $80,258 for a family of three.
One project, 5517 N. 33rd St., calls for five four-plexes, 20 total units, with 30 parking stalls. Four of the units would be rent-restricted to qualify for the 12-year MFTE.
The units are described as two-bedroom, two-bath at 1,000 square feet. Projected rents are listed at $2,600 for those at market rate and $1,825 for those rent-restricted.
The second project, 5519 N. 33rd St. (but entered in MFTE application as 5539 N. 33rd St.) calls for two, 24-unit apartment buildings constructed over the next two years, with 10 units rent-restricted. The plan lists 80 parking stalls.
The units also would be two-bedroom, two-bath at 1,000 square feet with the same projected rents listed as for the other project.
The lots are across from Village at the Pointe apartments. No further details were immediately available.
The MFTE proposals for the neighboring parcels, submitted June 23 and June 24, are not assigned to a City Council agenda. The process between submittal and council approval typically takes months.
So far this year, the city has received 17 MFTE applications, according to the online permit portal, with five of those introduced in June. Most of the projects approved so far this year have been for smaller townhouse or duplex-style projects.
The three other projects filed in June seeking 12-year MFTEs are a three-duplex development at 7056 Fawcett Ave. (which also retains the existing home on site); a five-plex at 1721 S. 35th St.; and six, two-unit townhomes at 1613 E. 35th St.
Recent MFTE milestones in Tacoma
Two separate projects approved in recent weeks by City Council achieved milestones of sorts for the city’s MFTE program.
On June 23, council approved the first owner-occupied unit development to qualify for a 12-year MFTE. The 14-unit site at 2331 Yakima Ave., includes three price-regulated units as defined by the program and 11 parking spaces.
The units are described as three-bedroom, three-bath at 1,498 square feet.
The 12-year version of MFTEs for owner-occupied development allows for at least 20% of the units priced to be affordable to homebuyers with household incomes up to 115% of the Area Median Income. The tax break, which exempts property owners from paying property taxes on new residential improvements for 12 years (not land), also carries forward to the new owner once sold.
According to the presentation made to council, the market-rate units are expected to sell at $450,000 while the price-regulated units’ expected sale price was listed at $430,000.
Mayor Anders Ibsen was impressed with the prices for new construction listed at under a half-million dollars.
“That’s a really good deal. And just to reiterate, anyone who buys these subsidized units has to physically live in the property. So investors, cash buyers, aren’t going to buy these,” he said at the meeting.
“We are working with legal on the language that we are going to add to the deed that would require it to remain with an eligible person, regardless of if it’s sold subsequently from the initial purchase,” responded Paul Bakker, business and economic development analyst for the city.
In another recent milestone, the council approved the first ground-up construction for a 12-year MFTE in Proctor, who along with Point Ruston, was removed a few years ago from the list of eligible Tacoma neighborhoods in the 8-year all-market-rate MFTE program.
The 98-unit Proctor development, 3917 N. 26th St. at the former Key Bank branch site, will include 20 rent-restricted units.
