MFTE programs allow for the several hundred smaller and local developers to have the opportunity to participate in their local market. Construction projects have carrying costs. Most local developers must carry a loan to get a project off the ground. Programs like the MFTE make that a plausible scenario and allows more projects to "pencil." If less projects are able to pencil, less housing will get built. That means less options for folks at every level. Meaning there's less upward mobility in the market. For example, my exact scenario is that I am sitting in a starter home that I can currently afford, but would c3ertainly consider moving up and into my forever home if it were more affordable. Unfortunately, the limited supply is contributing to the rising cost of housing (among other market forces) and I find it more plausible to sit in my home and not make it available to someone else just getting started. Also, forcing less projects to pencil, means that only the big corporate entities and those who can actually afford to float the cost will remain in the game. And, on the concerns about the taxes being passed on, that is how it works. Every added cost to a project is passed on to the public, regardless of the feel good narrative around "growth paying for growth." And every $1k in added cost translates to around $4k Washington families not being able to afford a home. In Thurston County, that means about 23% of the general public can actually afford a median priced home.
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