Funding & Policy Terms#
AMI (Area Median Income)#
The median household income for a metropolitan area, calculated annually by HUD. Used as the benchmark for defining affordable housing eligibility – typically at percentages like 30%, 50%, 60%, or 80% of AMI.
Why it matters: Bothell’s median household income is approximately $132,000. When the city’s comprehensive plan says more than three-quarters of new homes need to be “affordable,” understanding AMI benchmarks helps you evaluate whether housing proposals serve people who actually need them. “Affordable at 80% AMI” still means rents that many people can’t afford.
See also: Affordable Housing
Learn more: HUD: Income Limits | Census Reporter: Bothell, WA
Commute Trip Reduction (CTR)#
A state program (RCW 70A.15.4000) requiring large employers to implement programs that reduce single-occupant vehicle commuting. Bothell has a CTR Plan (2025-2029) targeting a 15.5% reduction in the drive-alone rate below 2019 census levels for affected worksites.
Why it matters: CTR plans push employers to offer transit subsidies, flexible schedules, bike facilities, and other incentives that reduce driving. With 55% of Bothell commuters driving alone, CTR programs are one tool for shifting commute patterns alongside transit investments.
See also: Mode Share, VMT
Learn more: Bothell CTR Plan 2025-2029 | WSDOT: Commute Trip Reduction
Impact Fees#
One-time charges on new development to pay for infrastructure (roads, parks, schools) needed to serve new residents.
Why it matters: Impact fees are a common debate in growing cities. Developers argue they raise housing costs. Advocates say new development should pay for the infrastructure it requires. Whether and how Bothell implements impact fees affects both housing affordability and public services.
Learn more: MRSC: Impact Fees | MRSC: Impact Fees Do’s and Don’ts
MFTE (Multifamily Tax Exemption)#
A city program that gives property tax breaks to developers who include affordable units in new apartment buildings. The tax exemption typically lasts 12 years.
Why it matters: MFTE is a tool for incentivizing affordable units in market-rate developments. When MFTE buildings’ exemptions expire, those affordable units can go to market rate – creating a slow-motion affordability cliff. Understanding MFTE helps evaluate the long-term effectiveness of affordability programs.
See also: AMI, Affordable Housing
Learn more: MRSC: Affordable Housing Funding Sources | WA Legislature: RCW 84.14
REET (Real Estate Excise Tax)#
A tax on property sales that funds affordable housing, parks, and infrastructure. Washington has given cities flexibility to use REET funds for affordable housing.
Why it matters: REET is a significant funding source for infrastructure and housing in Bothell. Changes to how REET revenue can be used directly affect the city’s ability to build and preserve affordable units and fund capital improvements.
Learn more: MRSC: Real Estate Excise Taxes | WA Dept. of Revenue: REET
TIF (Tax Increment Financing)#
A financing tool where future property tax increases in a designated area are used to pay for current infrastructure investments in that area. Washington authorized TIF in 2021 (HB 1189).
Why it matters: As Bothell plans development around new BRT stations and continues downtown revitalization, TIF could become a tool for funding the infrastructure needed to support transit-oriented communities. It captures the value that public investments create and reinvests it locally.
Learn more: MRSC: Tax Increment Financing | MRSC: TIF Now Available in Washington
Transportation Benefit District (TBD)#
A special-purpose district that cities can create to fund transportation improvements through vehicle license fees, sales taxes, or property taxes. Bothell has established a TBD as a first step toward adopting additional transportation funding.
Why it matters: TBDs are one of the few tools cities have to generate local revenue dedicated to transportation. Bothell’s TBD could fund street improvements, sidewalks, bike infrastructure, and transit facilities that aren’t covered by state or federal grants.
See also: Complete Streets
Learn more: MRSC: Transportation Benefit Districts
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