There are multiple benefits to utilizing the MFTE. Most generally, the reduction in property taxes is shared among consumers and developers in the form of lower prices or rents and in the form of increased project income, respectively.
The program also:
Benefits the consumer in a competitive market, where savings are passed down
Ensures that the tax exemption remains with the property so that it will benefit the right owner in the targeted area regardless of turnover
Increases densities in areas suited for higher density
Increases housing choice for consumers due to the increase in supply
Increases the development return on a marginal project, which increases project feasibility
Reduces risk, which increases the ability of a developer to secure debt financing