Multifamily Housing Projects looking for Tax Exemptions from City Council in Tacoma

Tacoma, WA: Two multifamily housing projects are eligible for tax benefits; one of them is a huge apartment complex in Tacoma’s Lincoln District, which was announced last October.

According to the agenda on March 19th, both projects are requesting 12-year exemptions from multifamily property taxes from the Tacoma City Council.

Over the course of the 12-year exemption, rents for 20% of the units will be capped at 30% of income levels, with adjustments made annually, and will be subject to a 12-year income restriction of 70% of the Pierce County Area Median Income (AMI).

The News Tribune broke the story in October about the new Apollo Heights apartments in Tacoma’s Lincoln District. Applications for permits were filed in the fall of last year.

The Seattle-based Jabooda Homes submitted the applications. Current building owner is a distinct Poulsbo-based LLC that filed for the MFTE.

South 38th and South G streets are slated to be the locations of 130 units, 26 of which are rent-restricted, together with 77 parking spaces. For many years, Lincoln Beauty School called the corner site home.

More than 5,000 square feet of ground level commercial space would be included in the building, according to a Jabooda spokesperson who spoke with The News Tribune last autumn.

Apollo Heights and other Seattle mixed-use developments are featured on Jabooda’s website.

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The project is set to include five parking spaces. The building will have studio apartments with 1 and 2-bedroom space and 1 or 2-bathroom space.

An LLC associated with developers in the area is the applicant. According to county records, in October, the LLC paid slightly more than half a million dollars for the single-family home that was on the property and was built in the 1920s.

There are a total of 364 units proposed for 2024; three of these MFTEs have already been granted by council, and four more are awaiting approval, according to municipal officials who spoke with The News Tribune earlier this month.

The city anticipates that this year will see the completion of over a thousand units associated with prior MFTE approvals.