Tacoma approves 98-unit Proctor housing project with 20 affordable units

Tacoma City Council gave final approval June 2 to a 12-year multifamily property tax exemption agreement for Proctor 4 LLC, clearing the way for a 98-unit mixed-use housing project in the Proctor Mixed-Use Center.

The approval matters because Tacoma is trading a property-tax break on the new building for more housing and some affordability. Under the city’s MFTE program, qualifying projects can receive a property tax exemption for 8, 12, or 20 years, depending on the level of affordability they include.

In this case, about 20 of the homes are expected to be affordable. That gives Tacoma a little more income-restricted housing in one of the city’s established mixed-use centers.

The project is planned for 3917 N. 26th St. For residents and nearby businesses, a buildout like this could eventually mean more customers, more foot traffic, and more pressure on parking and neighborhood character.

What MFTE means

MFTE stands for Multifamily Property Tax Exemption. It is not a cash subsidy. Instead, the city exempts part of a qualifying project’s property taxes in exchange for new housing, including some units priced below market rate.

For Tacoma, the June 2 vote is another sign that the city is using tax policy to push housing into designated growth areas like Proctor. The council action does not mean the building is finished yet, but it does move the project farther along the pipeline.

Sources

• Tacoma City Council meeting agenda, June 2, 2026
• City of Tacoma MFTE program page