Residential Development Incentives

Learn about Residential Development Incentives

Ellensburg offers a variety of incentive programs for residential developments based on the zone or community benefit. For affordable housing programs, contact Housing Program Manager at freyl@ci.ellensburg.wa.us with questions.  

Multifamily Tax Exemption (MFTE)

When adding four or more residential units in the Central Commercial (C-C) or Central Commercial II (CC-II) zones, developers may apply for an eight- or 12-year multifamily tax exemption.

The MFTE program is intended to stimulate new construction or rehabilitation of existing vacant and underutilized buildings for multifamily housing in the central commercial zones and to assist in directing population growth to these zones. Improvement values can be exempted from taxable property values for eight years for market-rate properties and for 12 years when at least 20% of the units are affordable for households with incomes up to 80% of Area Median Income (AMI). Annual program reporting is required. For complete details, see Chapter 2.30 of the Ellensburg City Code.

Park Impact Fees

Parks, trails, and green spaces are important to the quality of life in a community. To fund future park development as the City grows, a park impact fee is assessed to new residential development. In some instances, land donation is considered in lieu of impact fees. To determine if a property is eligible, contact Parks and Recreation Director at caseb@ci.ellensburg.wa.us or 509-962-7210.

Traffic Impact Fee Exemptions

Developers may apply for exemptions from traffic impact fees for low-income housing (for households with incomes up to 80% AMI). For complete details see Chapter 14.04.050 of the Ellensburg City Code.  

Utility Connection Fee Waivers

Developers may apply for waivers of water and sewer plant investment and water meter fees for affordable housing (rental housing up to 60% AMI and owner-occupied housing up to 80% AMI) and emergency shelter facilities. For complete details see Chapter 9.30.040 of the Ellensburg City Code. 

Density Bonus Incentives for Housing Development

In the Residential-Suburban (R-S) and Residential Low (R-L) zones, developments may qualify for various density bonus incentives.

Density bonuses promote a variety of housing types, green building policies and practices, compact development patterns that encourage the use of nonmotorized forms of transportation, the integration of trails into new development, income-based affordable units, and preservation of historic buildings.

Developments may use a combination of bonus elements provided they comply with the maximum density provisions in the table below (part of City of Ellensburg code). For complete details see Chapter 15.330 of the Ellensburg City Code. Contact the Community Development Department at (509) 962-7231 with any questions.