The Multi-family Housing Tax Exemption Program is offered by the City of Wenatchee to stimulate new multi-family housing construction and the rehabilitation of vacant or underutilized buildings for multi-family housing. The program is intended to promote housing, community development and revitalization in our urban center.
Tax Exemption Benefits:
When a project is approved under this program, the value (as determined by the Chelan County Assessor) of eligible multi-family improvements is exempt from property taxes for 8 years; or up to 12 years, if the applicant commits to renting or selling at least 20 percent of the units as affordable housing to low- and moderate-income households. The exemption does not apply to land, existing improvements or non-residential improvements. The tax exemption is transferable to new property owners.
To be granted an exemption, a property owner must apply to the City of Wenatchee’s Department of Community Development. Projects must be:
- Located within the City's Urban Center/Residential Target Area (download map below)
- A multi-family or mixed-use project that provides four or more permanent housing units
- New construction, rehabilitation of a vacant building, or improvements to an occupied structure providing at least four additional permanent dwelling units
Urban Center/Residential Target Area:
The Wenatchee City Council has designated the following area as the Residential Target Area:
- The area bound by Seventh Street on the north; Emerson, Delaware, Idaho, Kittitas and Okanogan on the west; Peachey Street on the south and Wenatchee Avenue and Columbia Streets on the east.
A redevelopment project must not displace existing residential units, so rehabilitated structures must have been unoccupied for at least 12 months prior to the application. This same time period applies to new construction projects which require demolition of an existing residence. Demolition may require replacement of existing units.
The property owner must enter into a contractual agreement with the City regarding the terms and conditions of the project approval. Projects must be completed within three years of the tax exemption application approval. All projects must comply with the requirements of applicable building and housing codes, zoning and any other regulations in effect at the time of application. The property owner must submit an annual report and certification of compliance with the terms of the contract and other program requirements.
The following documents will provide more information on this program: