If you’ve ever wondered what the going rate for a new apartment on Queen Anne is these days, this story provides some answers. The developer for the new Avalon Queen Anne apartments, currently under construction at the site of the old Mountaineers Club on 3rd Ave West between Harrison and Thomas, has applied for a multifamily housing property tax exemption from the city.
Groundbreaking on the project earlier this year
In return for the limited tax exemption, 20 percent of the apartments have to be classified as affordable (80 to 90 percent of the median income). A comparison of market rate versus affordable rent can be seen in the monthly rent scale below.
Studios: $1290 (market rate)/$1105 (affordable rate)
One bedroom: $1668 (market)/$1260 (affordable)
Two bedroom: $2286 (market)/$1608 (affordable)
“This is amazing to me what studios are going for now, the market rate for studios,” said City Council member Tom Rasmussen as he looked over the figures. “Wow.”
The total tax reduction for the first year to the developer, Avalon Bay Communities, is estimated to be almost $400,000. The exemption, which lasts for 12 years, is designed to encourage developers to include affordable housing in their game plan. After 12 years, the property is then assessed at the market value. To make up for the exemption, the property tax is shifted to homeowners who would pay an average 47 cents extra each year. Members of the council’s Housing, Human Service, Health, & Culture Committee voted 3-0 to move the matter on to the full council next week.
Image of project presented in City Council chambers.
The six story apartment building will have a total of 196 units along with retail space. The apartments will start being leased around November of 2011, but the project won’t be completely finished until early 2012.