PLUSH Committee Discusses Mass Timber and MFTE Updates

At the PLUSH meeting on Tuesday, members heard a pragmatic look at where mass timber fits in Bellevue and an update from the City on evolving Multifamily Tax Exemption (MFTE) policy, especially the proposed “supercharger” in Wilburton. The discussion underscored near-term code decisions that affect speed to market, cost, and affordability across Eastside projects.

Mass Timber and Carbon and Code Changes on the Horizon

DCI Engineers outlined how recent code changes have made taller timber projects viable, without losing the biophilic benefits that draw tenants and talent. The 2021 International Building Code (IBC) added new pathways for Type IV construction, and the 2024 code will expand what can be exposed in tall timber interiors.

 “In the 2024 code, there's an exception that you essentially have 100% of your floor area exposed.” — Danielle Jacobs, Principal, DCI Engineers

• Type IV-A: up to 270 feet; 18 stories of mass timber over a concrete podium; timber must be covered.
• Type IV-B: up to 180 feet; 12 stories; 2024 exception allows essentially full floor area exposure.
• Type IV-C: up to 85 feet; all timber can be exposed; commonly used today.

Speakers noted Washington’s early adoption helped jumpstart projects locally and keeps Bellevue well-positioned as codes evolve and the market scales.

Policy shifts will shape materials choices and submittals over the next two years. DCI flagged timelines, compliance trends, and emerging carbon accounting requirements developers should watch closely.

“The 2024 code is looking like maybe a November 26 adoption, so still like a year and a bit away.” — Patrick Rice, DCI Engineers

The team also addressed reliability: an early delamination failure in Oregon led to fixes and more rigorous testing; standard moisture management practices are now well established. Wood systems remain adaptable over a building’s life, with easier retrofit pathways than concrete or steel.

MFTE in Wilburton: Supercharger Path, Findings, and Timeline

City of Bellevue’s Office of Housing presented a policy pivot informed by recent modeling. After feedback on vesting and administrative complexity, the City is now exploring a permanent MFTE supercharger in Wilburton with a programmed look-back, rather than a temporary catalyst period. Projects would need to meet on-site performance to use the tool, and an eight-year MFTE option remains under consideration.

“When used during the catalyst period, both the current 12 year MFTE program and supercharger program increase development feasibility and result in a public benefit greater than the public cost to Bellevue.” — Robin Xiao, Office of Housing, City of Bellevue  

Key elements and milestones:

• State-enabled changes (2021) under review citywide: a 20-year homeownership program for nonprofit-operated homes, 12-year extensions, and allowing MFTE for conversion projects.
• BERK’s analysis found MFTE options improved development feasibility across three prototypes; “MFTE was most impactful for the mid rise prototype.”
• The eight-year MFTE option showed the greatest positive impact on residual land value; set-asides discussed at 10% (or 5% during a catalyst period).
• Final workshop with BERK is expected in early October; study sessions are slated for late October and early December.

Feedback from stakeholders focused on refining assumptions (contingency, parking costs, concessions, assessed values), adding sensitivity analyses, and accounting for MFTE’s role in enabling projects in the first place.

Advocacy for Predictable, Pro-Growth Policies

PLUSH members discussed the City’s Housing Opportunities in Mixed-Use Areas (HOMA) work, including late-stage proposals to insert a mandatory fee-in-lieu component into downtown’s amenity point system without corresponding development benefits. Members urged a voluntary structure and a package of code fixes, many already vetted in Wilburton, to reduce cost, time, and risk while growing the affordable housing fund through proportionate, optional bonuses.

Members also asked the City to streamline and align a growing web of definitions and Director’s Rules tied to affordability programs, citing bankability and document consistency.

• Proposed approach: make fee-in-lieu voluntary and proportionate to actual bonus area to encourage use; pair with code fixes (e.g., removing build-to line and trigger-height complexities) to unlock housing delivery.
• Clarify the affordable unit distribution rule for mid-rise buildings; as written, it may not be workable on projects with fewer floors.
• Fold standard agreements into Director’s Rules so lenders, owners, and the City are working from the same playbook.

Conclusion

Bellevue’s path is clear: modernize codes to speed delivery, keep MFTE tools aligned with affordability and feasibility, and streamline rules developers can bank on. Businesses should track the 2024 code timeline, Wilburton’s MFTE supercharger, and the City’s HOMA package as they pencil near-term projects. Stay engaged, submit comments to the Planning Commission, and join us at upcoming Chamber forums. Subscribe to our newsletter for continuing policy updates and event invites.