Puyallup trying to attract affordable housing

The City of Puyallup has expanded its use of tax exemptions for developers in the hope of stimulating more construction of affordable housing.

The City Council recently authorized the effort to create new opportunities for developers in the city that’s currently home to about 42,000 people.

The Multifamily Tax Exemption (MFTE) program was originally only available for new construction in some of the city’s downtown. Now the program includes other downtown areas and the city’s portion of South Hill. Additionally, the River Road corridor was added to further stimulate housing and economic growth, according to Katie Baker, the city planning manager.

The expansion “will incentivize developers to look at Puyallup in a new light,” said Baker. “We know that the costs of building new housing are rising, so we need to create attractive programs that entice developers to create more housing inventory.”

 State officicals have estimated “we need to accommodate over 7,482 units of housing by 2044 to meet population growth targets,” she added.

The state Department of Commerce created the MFTE program as a way to simulate affordable housing through tax incentives for residential developers. The program allows cities to designate areas where developers can apply for and receive property tax exemptions on new housing developments for a specified time period.

Puyallup has an eight-year and a 12-year option for developers. Under the exemptions, a property owner or developer doesn’t have to pay property taxes on the residential improvements for those number of years in Puyallup. The property owner still pays taxes on commercial improvements to the land.

Under the eight-year option, there are no affordability requirements, and developers can pursue market-rate housing. For the 12-year option, at least 20 percent of the units must be offered at lower prices that are more affordable or moderate, officials said.

Pierce County landowners found out last month what they owe this year in property taxes. And some older homeowners may find it easier to pay.

Property tax statements were mailed the week of Feb. 12 by the county assessor to 175,000 owners of residential and commercial land and buildings in Pierce County. For homes whose tax is paid through a mortgage escrow account, the statements went to a bank or mortgage company. Along with first-half payments being due April 30, the bottom line for all is that real estate values were almost level compared to the previous year, and the average property tax rate increased to $10.10 per thousand dollars value, which, by further comparison, is 37 cents higher than it was ln 2013. 

Any “significant” tax increases affect owners whose property is “in areas where voters approved new levies,” Assessor-Treasurer Mike Lonergan said. “This year, we see moderate increases in the Gig Harbor peninsula, Fircrest, and Key Peninsula.”

He said the largest decrease was 10 percent in Fife due to the end of a school bond, followed by smaller reductions in Spanaway, Eatonville, Puyallup, South Hill and Steilacoom. 

Effective this year, homeowners older than 61, and those who are fully disabled at any age, may qualify for a property tax reduction if their household gross income is under $64,000. The previous income limit in Pierce County was $45,708. Lonergan said the “big increase” in allowable income “will allow thousands more taxpayers to qualify for a partial tax exemption.” Information on applying for the reduction is available from the assessor-treasurer at piercecountywa.gov/atr and 253-798-6111.

Annual property taxes are determined by multiplying property value (in thousands of dollars) by the combined rate of all taxing districts where the property is located. Unless there is a vote of the people, most taxing districts are limited to receiving 101 percent of the previous year’s property tax revenue, plus any taxes resulting from new construction in their area.  

The state and local levies for schools make up 58 percent of all property taxes in Pierce County. The cities and county (including the road district) account for about 19 percent, followed by fire districts at about 12 percent. The total tax bill countywide is $1.93 billion this year, and as in past years, the revenue will pay for city and county governments, fire districts, emergency medical service, parks, Pierce County libraries, roads, Port of Tacoma, Sound Transit, and flood control. 

The second half of tax payments are due Oct. 31.

A pin of honor

U.S. Rep. Marilyn Strickland (at right in photo) hosted a pinning ceremony for Vietnam War-era military veterans. During the event Oct. 16 at Lacey City Hall, veterans or their surviving family members received honorary lapel pins in recognition of their service. “As a member of Congress and as the daughter of a veteran, it’s my deepest honor to recognize veterans and their families for their extraordinary sacrifice,” Strickland said.  “I know firsthand that military families and veterans deserve our utmost respect.” Pinning ceremonies are part of an ongoing national effort to honor all Vietnam veterans who served from during the period of Nov. 1, 1955 to May 15, 1975. Strickland, who represents the 10th congressional District that includes parts of Pierce and Thurston counties, said the honor can be requested by contacting her office at Strickland.house.gov or 360-459-8544.

The Des Moines Senior Activity Center remains closed as a result of a broken water pipe.

The incident in January, caused by extreme cold weather, flooded the building’s interior after the pipe burst. Repairs are underway. A reopening date hasn’t been announced.

During the building’s closure, some of the center’s programs are continuing, including day trips are some fitness classes. The latter are being at the Field House a mile west of the center. More information is available at desmoineswa.gov/seniors and 206-878-1642.