The Fine Print on Bellevue's MFTE Supercharger: Three Fixes We Asked Council to Make

Bellevue Chamber of Commerce  |  July 20, 2026

Bellevue's MFTE Catalyst program for HOMA is up for line by line debate, writing the code language that determines whether projects can actually use the incentive it strives to provide. The program is a four-year property tax exemption ("supercharger") for housing projects outside Downtown Bellevue, paired with a built in two-year follow up that measures whether it's actually producing housing.

This keeps the building process affordable for those who pay the up-front cost, but supports a positive city budget. It gives developers a strong, time limited incentive to build; exactly what Chamber members support.

On July 20th, the Eastside Housing Roundtable, which we convene jointly with the Housing Development Consortium, wrote to Mayor Malakoutian and councilmembers reiterating support for the program and asking for three specific changes. 

The program we support

The chamber continues to support the four-year MFTE catalyst "supercharger" in non-downtown HOMA areas, paired with a two-year look-back evaluating housing production, affordability outcomes, and fiscal impacts. That pairing is the balance we have called for throughout: A time-limited incentive that moves projects while current financing conditions are difficult, and a scheduled review that holds the program accountable for what it costs and what it delivers. 

Three changes we want; all connected

First, projects that pay a fee-in-lieu (instead of building affordable units on site) should be able to participate in MFTE, provided they are otherwise eligible and fully satisfy onsite affordability requirements. The current code draft restricts developers that have chosen to pay the fee anywhere from using the MFTE program at all. This overly restricts who can participate in the program and works against the goal of making housing more affordable. 

Second, we support the proposed clarifications to MFTE application timing, which give developers and staff adequate time to complete application, execution, and recordation requirements while preserving the Office of Housing Director's ability to grant exceptions where warranted. Give staff some breathing room to file paperwork correctly. 

Third, and necessary to the first, Council should strike the language in the MFTE code that disqualifies fee-paying projects outright.

Left in place, that sentence cancels out the fee-in-lieu change Council is otherwise being asked to make. It would disqualify a project from the exemption for the sole reason that it participated in another affordable housing incentive program. This rules out projects that are otherwise doing everything right on affordability and aligning with city goals.