Our Definitions
Area Median Income (AMI): is the midpoint of a region's income distribution, meaning that half of households in a region earn more than the median and half earn less than the median.
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Gentrification
The process by which wealthy or middle class people renovate or construct homes and businesses produce an increase in property prices and often displaces prior and often poorer residents.
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Low-Income Housing Tax Credit (LIHTC)
The Low-Income Housing Tax Credit (LIHTC) program is a U.S. program funded by tax-payer money that gives State and local LIHTC-allocating agencies approximately $8 billion annually to issue tax credits for the construction, acquisition, or restoration of lower-income rental housing and units.
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Market-rate value: is a term that indicates the kind of existing buildings or proposed developments that result from the market and regulatory environment, without any special subsidies or legal compensation.
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MFTE (Multifamily Housing Tax Exemption)
The Multifamily Tax Exemption (MFTE) program provides a 12-year property tax exemption on residential improvements (land and commercial improvements remain subject to property taxes) to owners of multifamily rental buildings in exchange for reserving at least 20 percent of the apartments in the building as affordable.
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MHA (Mandatory Housing Affordability)
The Mandatory Housing Affordability (MHA) program requires that all new multi-family housing developments in Urban Centers and Urban Villages must either: reserve between 5-11% of planned units as rent restricted housing for low income families or contribute between $5-$34.75 per square foot of development to the Seattle Office of Housing fund to build affordable housing.
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Urban Centers and Urban Villages
Urban centers are the densest neighborhoods in
the city and are both regional centers and neighborhoods that provide a diverse mix of uses, housing, and employment opportunities. Larger urban centers are divided into urban center villages to recognize the distinct character of different neighborhoods within them.
(https://www.seattle.gov/Documents/Departments/OPCD/OngoingInitiatives/SeattlesComprehensivePlan/UrbanVillageElement.pdf, section 1.4)