Letters to the Editor

Letter to the Editor | Multifamily tax exemptions are an investment, not a developer handout

Washington is in the midst of a housing crisis. According to the National Association of Home Builders’ 2025 Priced Out report, more than 80% of Washington residents can’t afford to buy a home. In Gig Harbor, the situation is even more extreme. The average home price here hovers around $900,000 — meaning you’d need an income close to $300,000 to qualify for a typical loan.

Lawmakers across the state are asking: how do we fix this? How can we ensure that people can afford to live in the communities they grew up in, stay close to family, and live near where they work?

The Gig Harbor City Council is grappling with these same questions. One solution under consideration is the Multi-Family Tax Exemption (MFTE) program. Unfortunately, there’s been a lot of confusion surrounding what this program actually does.

The MFTE program is a tool cities can use to encourage more affordable housing. It works by offering a temporary property tax exemption — on the value of the building, not the land — for developers who include affordable units in their projects. In Gig Harbor, the proposed program would offer a 12-year tax exemption for developments that reserve at least 20% of units as affordable housing.

It’s important to understand that this tax benefit doesn’t go into developers’ pockets — it ultimately helps the residents. Property taxes on apartments are passed on to tenants through rent. Reducing these taxes lowers the overall cost of housing. This makes it more financially feasible to build — and rent — affordable units in a high-cost city like Gig Harbor.

Some critics argue this program simply enriches developers. But in reality, developers make more money building market-rate housing in a place like Gig Harbor. MFTE isn’t a cash grab — it’s an incentive to build attainable housing that otherwise wouldn’t pencil out financially.

Still, not everyone on the City Council supports this approach. In a January 9th study session, one member bluntly stated they’re “just fine if we don’t build affordable housing,” claiming it offers no benefit to the city.

That sentiment raises a fundamental question: What kind of community do we want to be?

We must decide whether we want others — young families, teachers, first responders and local workers — to have the opportunity to live here. Are we okay with saying “not in my backyard” (NIMBY), or are we willing to embrace “yes in my backyard” (YIMBY) thinking?

This debate isn’t just about buildings. It’s about values. When we resist housing of any kind — whether single-family homes, apartments, ADUs, or duplexes — we’re resisting the chance for someone else to be part of our community.

The city council already affirmed it wants to be a place for people of all backgrounds and incomes, and it explicitly mentions using MFTEs to achieve this goal in the city’s Comprehensive Plan. It’s time to put that into action. The MFTE program isn’t a silver bullet but it’s one of the few tools we have to make Gig Harbor more accessible, more inclusive, and more sustainable for future generations.

Ryan Koch

Gig Harbor