Alert: SEPA and MFTE Updates for City of Seattle

Alert: New SEPA and MFTE Standards in City of Seattle

The Seattle City Council has introduced and approved two ordinances in the past month. Council Bill (CB) 119600 adjusts the SEPA quantity thresholds requiring State Environmental Policy Act (SEPA) review of a project. It extends the thresholds previously applicable to designated urban centers within the city to urban villages, as well. The bill also introduces time limits on hearing examiner decisions in the case that an appeal to a MUP decision is filed. Read more on the City’s website.

The second ordinance, CB 119615, modifies the Multifamily Tax Exemption (MFTE) Program administered by the City’s Office of Housing. The application period for the MFTE Program has been extended for another four years and is set to expire on December 31, 2023. Additional amendments include changes to the application submittal date, the required number of two-bedroom units to qualify for below market rate (BMR) set-asides, and the percentages of average median income (AMI) used for establishing available housing. Read more on the City's website.

 

What Caron Anticipates

We expect that these changes will result in an overall increase in the cost of permitting projects in Seattle. The impact will, however, vary depending on each project’s specific composition and location within the city. Projects located outside of the City of Seattle are not affected by these changes.