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HomeMy WebLinkAbout02-27-2023 - Agenda Packet MEDINA CITY COUNCIL Monday, February 27, 2023 5:00 PM – REGULAR MEETING AGENDA VISION STATEMENT Medina is a family-friendly, diverse and inclusive community on the shores of Lake Washington. With parks and open spaces, Medina is a quiet and safe small city, with active and highly-engaged residents. Medina honors its heritage while preserving its natural environment and resources for current and future generations. MISSION STATEMENT Ensure efficient delivery of quality public services, act as responsible stewards of Medina's financial and natural resources, celebrate diversity, leverage local talent, and promote the safety, health, and quality of life of those who live, work, and play in Medina. 1 MEDINA, WASHINGTON MEDINA CITY COUNCIL REGULAR MEETING Hybrid - Virtual/In-Person Monday, February 27, 2023 – 5:00 PM AGENDA MAYOR | Jessica Rossman DEPUTY MAYOR | Randy Reeves COUNCIL MEMBERS | Cynthia F. Adkins, Jennifer Garone, Harini Gokul, Mac Johnston, Bob Zook CITY MANAGER | Stephen R. Burns CITY ATTORNEY | Scott Missall CITY CLERK | Aimee Kellerman Virtual Meeting Participation The Medina City Council has moved to hybrid meetings, offering both in-person and online meeting participation. In accordance with the direction from Governor Inslee, masking and social distancing will be optional for those participating in person. Individuals who are participating online and wish to speak live must register their request with the City Clerk at 425.233.6411 or email akellerman@medina-wa.gov and leave a message before 2PM on the day of the February 27 Council meeting. Please reference Public Comments for February 27th Council Meeting on your correspondence. The City Clerk will call on you by name or telephone number when it is your turn to speak. You will be allotted 3 minutes for your comment and will be asked to stop when you reach the 3 minute limit. The city will also accept written comments. Any written comments must be submitted by 2 PM on the day of the February 27th Council meeting to the City Clerk at akellerman@medina-wa.gov. Join Zoom Meeting Meeting ID: 832 5227 3105 Passcode: 589036 One tap mobile +12532158782,,83252273105# US (Tacoma) 1. REGULAR MEETING - CALL TO ORDER / ROLL CALL Council Members Adkins, Garone, Gokul, Johnston, Reeves, Rossman and Zook 2. APPROVAL OF MEETING AGENDA 3. PUBLIC COMMENT PERIOD Individuals wishing to speak live during the Virtual City Council meeting will need to register their request with the City Clerk at 425.233.6411 or email akellerman@medina- wa.gov and leave a message before 2PM on the day of the February 27th Council 2 meeting. Please reference Public Comments for February 27 Council Meeting on your correspondence. The City Clerk will call on you by name or telephone number when it is your turn to speak. You will be allotted 3 minutes for your comment and will be asked to stop when you reach the 3 minute limit. 4. PRESENTATIONS None. 5. CITY MANAGER'S REPORT None. 6. CONSENT AGENDA None. 7. LEGISLATIVE HEARING None. 8. PUBLIC HEARING None. 9. CITY BUSINESS 9.1 Development Services Enterprise Budget Discussion Recommendation: Discussion and direction. Staff Contact: Steven R. Wilcox, Director of Development Services and Ryan Wagner, Finance Director Time Estimate: 60 minutes 9.2 Pending Legislative Session Bills Recommendation: Discussion and direction. Staff Contact: Stephanie Keyser, Planning Manager Time Estimate: 15 minutes 10. REQUESTS FOR FUTURE AGENDA ITEMS AND COUNCIL ROUND TABLE 11. PUBLIC COMMENT Comment period is limited to 10 minutes. Speaker comments limited to one minute per person. 12. EXECUTIVE SESSION RCW 42.30.110 (1)(i) 3 To discuss with legal counsel representing the agency matters relating to agency enforcement actions, or to discuss with legal counsel representing the agency litigation or potential litigation to which the agency, the governing body, or a member acting in an official capacity is, or is likely to become, a party, when public knowledge regarding the discussion is likely to result in an adverse legal or financial consequence to the agency. Time Estimate: 45 minutes Council may take action following the Executive Session. 13. ADJOURNMENT Next regular City Council Meeting: Monday, March13, 2023 at 5 PM. ADDITIONAL INFORMATION Public documents related to items on the open session portion of this agenda, which are distributed to the City Council less than 72 hours prior to the meeting, shall be available for public inspection at the time the documents are distributed to the Council. Documents are available for inspection at the City Clerk's office located in Medina City Hall. The agenda items are accessible on the City’s website at www.medina-wa.gov on Thursdays or Fridays prior to the Regular City Council Meeting. In compliance with the Americans with Disabilities Act, if you need a disability-related modification or accommodation, including auxiliary aids or services, to participate in this meeting, please contact the City Clerk’s Office at (425) 233-6410 at least 48 hours prior to the meeting. UPCOMING MEETINGS Monday, March 13, 2023 - City Council Meeting (5:00 PM) Monday, March 27, 2023 - City Council Meeting (5:00 PM) Monday, April 10, 2023 - City Council Meeting (5:00 PM) Monday, April 24, 2023 - City Council Meeting (5:00 PM) Monday, May 8, 2023 - City Council Meeting (5:00 PM) Monday, May 22, 2023 - City Council Meeting (5:00 PM) Monday, May 29, 2023 - Memorial Day - CITY HALL CLOSED Monday, June 12, 2023 - City Council Meeting (5:00 PM) Monday, June 26, 2023 - City Council Meeting (5:00 PM) Tuesday, July 4, 2023 - Independence Day - City Hall Closed Monday, July 10, 2023 - City Council Meeting (5:00 PM) Monday, July 24, 2023 - City Council Meeting (5:00 PM) Monday, August 14, 2023 - City Council Meeting - Dark No Meeting Monday, August 28, 2023 - City Council Meeting - Dark No Meeting Monday, September 4, 2023 - Labor Day - City Hall Closed Monday, September 11, 2023 - City Council Meeting (5:00 PM) Monday, September 25, 2023 - City Council Meeting (5:00 PM) Monday, October 9, 2023 - City Council Meeting (5:00 PM) 4 Monday, October 23, 2023 - City Council Meeting (5:00 PM) Friday, November 10, 2023 - Veterans Day - City Hall Closed Monday, November 13, 2023 - City Council Meeting (5:00 PM) Thursday, November 23, 2023 - Thanksgiving Holiday - City Hall Closed Friday, November 24, 2023 - Day After Thanksgiving Holiday - City Hall Closed Monday, November 27, 2023 - City Council Meeting (5:00 PM) Monday, December 11, 2023 - City Council Meeting (5:00 PM) Monday, December 25, 2023 - Christmas Day - City Hall Closed CERTIFICATION OF POSTING AGENDA The agenda for Monday, February 27, 2023 Regular Meeting of the Medina City Council was posted and available for review on Thursday, February 23, 2023 at City Hall of the City of Medina, 501 Evergreen Point Road, Medina, WA 98039. The agenda is also available on the city website at www.medina-wa.gov. 5 INTRODUCTION Steve Burns 6 AGENDA ITEM 9.1 What does Development Services do? CODE ENFORCEMENT Land Use Building Code Construction Mitigation Tree Management Grading and Drainage MMC Enforcement PLANNING Planning Commission Liaison Hearing Examiner Liaison Comprehensive Plan Update Housing Action Plan Zoning Code Development Shoreline Master Program PERMIT ADMINISTRATION Pre -application process Accept, route and track permit applications Create permit data and reports Issue permits and renewal Maintain electronic permits Customer service 7 AGENDA ITEM 9.1 Development Services Director Building Official Steve Wilcox Planning Manager Stephanie Keyser Deputy Building Official Rob Kilmer Development Services Coordinator Rebecca Bennett Grading and Drainage Engineer Development Arborist Non-Development Arborist Planner (zoning code review) Building Code Review Engineer Acoustic Critical Area Engineer Comprehensive Plan Update Planner Development Services Department Staff Consultants 8 AGENDA ITEM 9.1 What makes Medina’s Development Services Department Different? Staff Size vs. Consultants Development Project Expectations and Service Development Services Fund 9 AGENDA ITEM 9.1 33,567,809 37,115,024 64,558,548 28,741,633 18,980,293 22,247,532 64,442,406 103,406,369 64,109,235 60,983,908 40,109,225 15,368,371 39,445,599 118,126,280 42,893,158 47,608,926 32,094,040 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Trends in Medina Development Activity 2006 –2022 10 AGENDA ITEM 9.1 Development Services Fund A brief history Concept in Autumn 2021 Res. 421 passed by Council on November 8, 2021 DS Fund implemented on January 1, 2022 11 AGENDA ITEM 9.1 What was learned. Where we are. Where we need to go. 2022 2023 2024 12 AGENDA ITEM 9.1 •Code amendments and resolutions •Evaluate each expense and revenue account •Tracking •Establish internal controls of new processes •Re -structure cost recovery •Annual review •Reserve target Next Steps 13 AGENDA ITEM 9.1 What is an Enterprise Fund? •Self-supporting government fund that sells goods or services to the public for fees. •Primary source of financing comes through user charges However, not all funding needs to come from fees Grants and tax dollars can be used to subsidize •Government Accounting and Standards Board (GASB) has pronounced that if any service or program’s principal revenue source has a pricing policy that fees and charges be set to recover cost meets the criteria to be reported as a separate “Enterprise Fund”. 14 AGENDA ITEM 9.1 Importance of the Enterprise Fund •Promotes and maintains long term financial sustainability for services •Improves financial transparency of Development Services, and allows easier tracking of permitting fees and advanced deposits •With the Levy Lid Lift, sustainability and transparency are critical 15 AGENDA ITEM 9.1 MEDINA, WASHINGTON AGENDA BILL Monday, February 27, 2023 Subject: Pending Legislative Session Bills Category: City Business Staff Contact: Stephanie Keyser, Planning Manager Summary Staff would like to bring Council’s attention to two pending legislative bills that, if passed, will have a significant impact on Medina. Attachment(s) 1. House Bill Report HB 1110 – Increases middle housing in areas traditionally dedicated to single-family detached housing a. Substitute House Bill 1110 2. HB 1245 – Increases housing options through lot splitting a. Substitute House Bill 1245 Budget/Fiscal Impact: N/A Recommendation: Discussion and direction. City Manager Approval: Proposed Council Motion: N/A Time Estimate: 15 minutes 16 AGENDA ITEM 9.2 HOUSE BILL REPORT HB 1110 As Reported by House Committee On: Housing Title: An act relating to creating more homes for Washington by increasing middle housing in areas traditionally dedicated to single-family detached housing. Brief Description: Increasing middle housing in areas traditionally dedicated to single-family detached housing. Sponsors: Representatives Bateman, Barkis, Reed, Taylor, Riccelli, Berry, Fitzgibbon, Peterson, Duerr, Lekanoff, Alvarado, Street, Ryu, Ramel, Cortes, Doglio, Macri, Mena, Gregerson, Thai, Bergquist, Farivar, Wylie, Stonier, Pollet, Santos, Fosse and Ormsby. Brief History: Committee Activity: Housing: 1/17/23, 2/7/23 [DPS]. Brief Summary of Substitute Bill Requires certain cities planning under the Growth Management Act to authorize minimum development densities in residential zones. • Establishes requirements for middle housing development regulations.• Requires the Department of Commerce to provide technical assistance to cities in implementing the requirements and to develop model middle housing ordinances. • HOUSE COMMITTEE ON HOUSING Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 9 members:Representatives Peterson, Chair; Alvarado, Vice Chair; Leavitt, Vice Chair; Barkis, Bateman, Chopp, Low, Reed and Taylor. Minority Report: Without recommendation.Signed by 3 members:Representatives This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not part of the legislation nor does it constitute a statement of legislative intent. HB 1110- 1 -House Bill Report 17 AGENDA ITEM 9.2 Klicker, Ranking Minority Member; Connors, Assistant Ranking Minority Member; Hutchins. Staff: Serena Dolly (786-7150). Background: Growth Management Act. The Growth Management Act (GMA) is the comprehensive land use planning framework for counties and cities in Washington. The GMA establishes land use designation and environmental protection requirements for all Washington counties and cities. The GMA also establishes a significantly wider array of planning duties for 28 counties, and the cities within those counties, that are obligated to satisfy all planning requirements of the GMA. These jurisdictions are sometimes said to be "fully planning" under the GMA. Counties that fully plan under the GMA are required to designate urban growth areas (UGAs) within their boundaries sufficient to accommodate a planned 20-year population projection range provided by the Office of Financial Management (OFM). Each city located within a planning county must be included within a UGA. Urban growth must be encouraged within the UGAs, and only growth that is not urban in nature can occur outside of the UGAs. Each UGA must permit urban densities and include greenbelt and open space areas. Comprehensive Plans. The GMA directs fully planning jurisdictions to adopt internally consistent, comprehensive land use plans that are generalized, coordinated land use policy statements of the governing body. Comprehensive plans are implemented through locally adopted development regulations, and both the plans and the local regulations are subject to review and revision requirements prescribed in the GMA. In developing their comprehensive plans, counties and cities must consider various goals set forth in statute. The GMA also establishes 14 goals in a non-prioritized list to guide the development of comprehensive plans and development regulations of counties and cities that plan under the GMA. Examples include urban growth, housing, and economic development goals. Mandatory Housing Element. Comprehensive plans must include a housing element that ensures the vitality and character of established residential neighborhoods. The housing element must include the following: an inventory and analysis of existing and projected housing needs that identifies the number of housing units necessary to manage projected growth, as projected by the Department of Commerce (Commerce), including: units for moderate-, low-, very low-, and extremely low-income households; and • emergency housing, emergency shelters, and permanent supportive housing;• • HB 1110- 2 -House Bill Report 18 AGENDA ITEM 9.2 a statement of goals, policies, objectives, and mandatory provisions for the preservation, improvement, and development of housing; • identification of sufficient capacity of land for various housing including government- assisted housing, housing for all levels of income, manufactured housing, and permanent supporting housing, and within a UGA, consideration of duplexes, triplexes, and townhomes; • adequate provisions for existing and projected needs of all economic segments of the community, including: incorporating housing for households of all income levels;• documenting programs and actions needed to achieve housing availability;• consideration of housing locations in relation to employment locations; and• consideration of the role of accessory dwelling units (ADUs) in meeting housing needs; • • identification of local policies and regulations that result in racially disparate impacts, displacement, and exclusion of housing; • identification and implementation of policies and regulations to address and begin to undo racially disparate impacts, displacement, and exclusion of housing; • identification of neighborhoods that may be at higher risk of displacement from market forces; and • establishment of antidisplacement policies.• Planning Actions to Increase Residential Building Capacity. Fully planning cities are encouraged to take an array of specified planning actions to increase residential building capacity. Specified planning actions include, for example: authorizing middle housing types on parcels in one or more zoning districts that permit single-family residences unless unfeasible to do so; • authorizing cluster zoning or lot size averaging in all zoning districts that permit single-family residences; • adopting increases in categorical exemptions to the State Environmental Policy Act (SEPA) for residential or mixed-use development; • adopting a form-based code in one or more zoning districts that permit residential uses; • authorizing a duplex on each corner lot within all zoning districts that permit single- family residences; • authorizing ADUs in one or more zoning districts in which they are currently prohibited; • adopting ordinances authorizing administrative review of preliminary plats; and• allowing off-street parking to compensate for a lack of on-street parking when private roads are utilized or a parking demand study shows that less parking is required. • In general, ordinances and other nonproject actions taken to implement these specified planning actions, if adopted by April 1, 2023, are not subject to administrative or judicial appeal under SEPA or legal challenge under the GMA. HB 1110- 3 -House Bill Report 19 AGENDA ITEM 9.2 Technical Assistance and Funding. Commerce is required to assist cities and counties, both with funding and with technical assistance, in the adoption of comprehensive plans. Commerce's assistance program must include a priority list for funding and technical assistance based on a county's or city's growth rate, commercial and industrial development rate, and the existence and quality of a comprehensive plan, among other factors. Commerce is also required to administer a grant program to provide direct financial assistance to local governments for the preparation of comprehensive plans. Other technical assistance required to be provided by Commerce includes utilizing Commerce's staff and the staff of other agencies to assist in the development of comprehensive plans, including the provision of model land use ordinances, the adoption of procedural criteria, and regional education and training programs. Homeowners' Associations and Common Interest Communities. A homeowners' association (HOA) is a legal entity made up of members who are owners of residential real property located within the association's jurisdiction and who are required to pay dues for the upkeep of the association and common areas. An association can also adopt rules and regulate or limit the use of property by its members. A common interest community (CIC) is similar to an HOA and is made up of member- owners who are obligated to pay for the taxes, maintenance, or other costs of common areas. Like an HOA, a CIC can also regulate or limit the use of property by its members, including by adopting rules to establish and enforce construction and design criteria as well as aesthetic standards. A CIC may generally only be terminated by the agreement of at least 80 percent of the members. A restrictive covenant or deed is a restriction or limitation of the use of the property that runs with the land. Summary of Substitute Bill: Density Requirements. Fully planning cities meeting population criteria must authorize the development of a minimum number of units on all lots zoned predominantly for residential use. A fully planning city with a population of at least 25,000, but less than 75,000, must allow: at least two units per lot;• at least four units per lot within .5 miles walking distance of a major transit stop or community amenity; and • at least four units per lot if at least one unit is affordable housing.• A fully planning city with a population of at least 75,000, and any city within a contiguous UGA with a city with a population above 200,000, must allow: at least four units per lot;• at least six units per lot within .5 miles walking distance of a major transit stop or • HB 1110- 4 -House Bill Report 20 AGENDA ITEM 9.2 community amenity; and at least six units per lot if at least two units are affordable housing.• Cities must allow any combination of middle housing types to be allowed to achieve the required unity density. To qualify as affordable housing, the unit must be maintained as affordable for at least 50 years and record a covenant or deed restriction that ensures continued affordability. The square footage of the units dedicated as affordable must be equal to the average square footage of the market-rate units on the same lot. A major transit stop includes: a stop on a high-capacity transportation system;• commuter rail stops;• stops on rail or fixed guideway systems; and• stops on bus rapid transit routes.• A community amenity is defined as a public, common, or private school or a designated entrance or pedestrian access point to a park operated by the state or a local government for the use of the general public. Antidisplacement Measures. A city may apply to Commerce for an extension for areas at risk of displacement as determined by the antidisplacement analysis that a jurisdiction is required to complete under the mandatory housing element of the comprehensive plan. The city must create a plan for implementing antidisplacement policies by their next five-year implementation progress report. Middle Housing Requirements. Cities subject to the density requirements are directed to include specific provisions related to middle housing in their development regulations. Middle housing is defined as buildings that are compatible in scale, form, and character with single-family homes and contain two or more attached, stacked, or clustered homes including duplexes, triplexes, fourplexes, fiveplexes, sixplexes, townhouses, courtyard apartments, and cottage housing. Any city subject to the middle housing requirements: must adopt objective development and design standards on the development of middle housing that do not allow personal or subjective judgment and do not discourage the development of middle housing through unreasonable costs, fees, delays, or other requirements or actions which individually or cumulatively make impracticable the permitting, siting, or construction of all allowed middle housing types or the ownership of a middle housing unit; • may not require standards for middle housing that are more restrictive than those required for detached single-family residences; • must apply to middle housing the same development permit and environmental • HB 1110- 5 -House Bill Report 21 AGENDA ITEM 9.2 review processes that apply to detached single-family residences; must apply to middle housing the same critical areas regulations that apply to detached single-family residences; • may not require off-street parking as a condition of permitting development of middle housing within .5 miles of a major transit stop; • may not require more than one off-street parking space per unit as a condition of permitting development of middle housing on lots smaller than 6,000 square feet; and • may not require more than two off-street parking spaces per unit as a condition of permitting development of middle housing on lots greater than 6,000 square feet. • The density and middle housing requirements take effect the latter of six months after a city's next required comprehensive plan update or 12 months after OFM determines a city has reached a population threshold under this section. The limits on off-street parking requirements do not apply if a city or county makes a determination, supported by empirical evidence and best practices in a study that is prepared by a credentialed transportation or land use planning expert, that the lack of minimum parking requirements in a defined area would make on-street parking infeasible or unsafe for the authorized units. Commerce must develop guidance to assist cities on items to include in the parking study. Technical Assistance. Commerce must provide technical assistance prioritized based on need to cities in implementing middle housing and average minimum density requirements. Commerce must develop and publish model middle housing ordinances within six months after this bill takes effect. The model ordinances supersede, preempt, and invalidate local development regulations that fail to allow middle housing within the time frames provided. Commerce must establish a process for cities to seek approval of required local actions, and any local actions approved by Commerce are exempt from appeals under the GMA and SEPA. A city that adopts the density and middle housing regulations is deemed to be in compliance with the mandatory GMA element of making adequate provisions for existing and projected needs of all economic segments of the community until June 30, 2032. Alternative Local Action. Commerce may approve actions for cities that have, by the effective date of this bill, adopted a comprehensive plan and development regulations that are substantially similar to the requirements of this bill. In determining whether an alternative local action is substantially similar, Commerce must view favorably plans and regulations that authorize an overall increase in density throughout the city, in units allowed per single-family lot, that is at least 75 percent of the overall single-family density throughout the city, in units allowed per lot, if the specific provisions of the bill were adopted. Extensions. HB 1110- 6 -House Bill Report 22 AGENDA ITEM 9.2 Cities may apply for extensions of the timelines established. Extensions may only be applied to specific areas where a city can demonstrate that water, sewer, or stormwater services lack capacity to accommodate the increased density, and the city has: included an improvement within its capital facilities plan to increase capacity; or• identified which special district is responsible for providing the necessary infrastructure, if the infrastructure is provided by a special purpose district. • A granted extension remains in effect until one of the following occurs: the infrastructure is improved to accommodate the capacity;• the city completes its next periodic comprehensive plan update; or• the city submits its next five-year implementation progress report for their comprehensive plan. • A city may apply for an additional extension with its next periodic comprehensive plan update or five-year implementation progress report. The extension application must include a list of infrastructure improvements necessary to meet the required capacity. Commerce must provide the Legislature with a list of those projects identified in a city's capital facilities plan that were the basis for the extension. A city with an extension for a specific area must allow the required density of development if the developer commits to providing the necessary infrastructure. Homeowners' Associations and Common Interest Communities. Governing documents of HOAs and the governing documents and declarations of CICs within cities subject to the middle housing and density requirements that are created after this bill takes effect may not prohibit the construction or development of the types of housing or density requirements that must be permitted within such cities. Substitute Bill Compared to Original Bill: The substitute bill modifies the minimum density requirements and population thresholds as follows: Cities with a population of at least 25,000 but less than 75,000 must authorize, on all lots zoned predominantly for residential use, the development of: at least two units per lot;• at least four units per lot within .5 miles walking distance of a major transit stop or community amenity; and • at least four units per lot if at least one unit is affordable.• • Cities with a population of at least 75,000, and any city within a contiguous UGA with a city with a population above 200,000, must authorize, on all lots zoned predominantly for residential use, the development of: at least four units per lot;• at least six units per lot within .5 miles walking distance of a major transit stop or community amenity; and • at least six units per lot if at least two units are affordable.• • HB 1110- 7 -House Bill Report 23 AGENDA ITEM 9.2 The substitute bill removes Washington State ferry terminals and a stop for a bus with minimum service requirements from the definition of major transit stop. The substitute bill also adds the term community amenity, which is defined as a public, common, or private school or a designated entrance or pedestrian access point to a park operated by the state or a local government for the use of the general public. The substitute bill requires any combination of middle housing types to be allowed to achieve the required unit density and requires the square footage of units dedicated as affordable to be equal to the average square footage of the market-rate units on the same lot. The substitute bill modifies the maximum parking that may be required for middle housing to one or two off-street parking spaces per unit, instead of per lot, and provides an exemption from the parking provisions if the city or county makes a determination, supported by empirical evidence and best practices in a study that is prepared by a credentialed transportation or land use planning expert, that the lack of minimum parking requirements in a defined area would make on-street parking infeasible or unsafe for the authorized units. The substitute bill also requires Commerce to develop guidance to assist cities on items to include in the parking study. The substitute bill changes the deadline by which cities currently meeting the population thresholds must comply with the minimum density requirements to six months after a city's next required comprehensive plan update, instead of 24 months after the effective date of this bill. The substitute bill exempts population associated with permits for middle housing units from the threshold of an OFM population projection to a county or a county population allocation to a city. The substitute bill requires Commerce to publish model middle housing ordinances no later than six months after the effective date of this bill, instead of 18 months after the effective date of this bill. The substitute bill specifies the criteria by which Commerce may approve alternative local actions to determine compliance with minimum density requirements, including viewing favorably plans and regulations that authorize an overall increase in density throughout the city, in units allowed per single-family lot, that is at least 75 percent of the overall single- family density throughout the city that is required under this bill. The substitute bill allows cities to apply to Commerce for an extension in implementing the bill's requirements in areas at risk of displacement and removes provisions related to the antidisplacement measures in the mandatory housing element. The substitute bill modifies requirements for cities to receive an initial and subsequent HB 1110- 8 -House Bill Report 24 AGENDA ITEM 9.2 extension for water, sewer, or stormwater deficiencies, including requiring a city to include any needed improvements in its capital facilities plan to increase capacity or identify which special district is responsible for providing needed infrastructure. The substitute bill also requires Commerce to provide the Legislature with a list of those projects identified in a city's capital facilities plan that were the basis for the extension under this section. Appropriation: None. Fiscal Note: Available. Effective Date of Substitute Bill: The bill takes effect 90 days after adjournment of the session in which the bill is passed. Staff Summary of Public Testimony: (In support) The housing shortage is creating a housing crisis. The state needs 1 million new homes in the next 20 years, half of which need to be affordable at 30 to 50 percent of area median income. Working families are being priced out of the housing market, and the housing shortage is disproportionately impacting people of color. Homeownership for first time homebuyers is only affordable in three counties. Students also need walkable housing and communities. This bill will help us bring homeless people inside. There is no single solution to the housing shortage, but it has to get easier to build new housing. Builders are ready to build. Eliminating volunteer design review boards will help reduce the time it takes to get a permit. This policy is the fastest and most scalable way to increase housing production. Many people are better served by housing that is not single-family, but one study found that middle housing is prohibited on 75 percent of city land. Some cities have already implemented middle housing provisions, but every jurisdiction needs to do its part to tackle the housing shortage. It is less costly for cities to accommodate growth in a smaller, dense area. Even with growth management, cities are continuing to grow onto some of the state's best farmland. Middle housing reduces vehicle miles travelled and emissions. (Opposed) None. (Other) Cities are ready to support a bill with minimum density requirements and believe density requirements should be centered on certain amenities, such as transit, parks, and schools. The uniform application of requirements does not recognize the uniqueness of each city. The parking requirements will create many issues. Even in Seattle, 81 percent of households have cars. Some cities are trying to eliminate the number of cars on the road but are not well-served by transit agencies. More people would just create more traffic. The bill needs some technical changes. Using the same environmental permitting process as single-family housing will put cities out of compliance with shoreline permitting and environmental regulations. Applying middle housing provisions to common interest HB 1110- 9 -House Bill Report 25 AGENDA ITEM 9.2 communities is unconstitutional, and they do not have the infrastructure to accommodate middle housing. Persons Testifying: (In support) Representative Jessica Bateman, prime sponsor; Adán Mendoza-Sandoval, Associated Students of Central Washington University; Dani Madrone, American Farmland Trust; Alex Hur, Master Builders Association of King and Snohomish Counties; Jacob Vigdor; Brent Ludeman, Building Industry Association of Washington; Dave Andersen and Joe Tovar, Washington Department of Commerce; Michele Thomas, Washington Low Income Housing Alliance; Hugo Garcia; Mike Ennis, Association of Washington Business; Bryce Yadon, Futurewise; Leah Missik, Climate Solutions; Jesse Piedfort, Sierra Club; Girmay Zahilay; Zack Zappone, City of Spokane; Rachel Smith, Seattle Metropolitan Chamber of Commerce; Andrea Reay, Tacoma-Pierce County Unity Chamber; Bill Clarke, Washington Realtors; Sophia Bowton-Meade; and Kerri Woehler, Washington State Department of Transportation. (Other) Carl Schroeder, Association of Washington Cities; Arne Woodard, City of Spokane Valley; Jason Sullivan, City of Bonney Lake; and Dean Martin, Washington State Chapter of Community Association Institute. Persons Signed In To Testify But Not Testifying: More than 20 persons signed in. Please see committee staff for information. HB 1110- 10 -House Bill Report 26 AGENDA ITEM 9.2 AN ACT Relating to creating more homes for Washington by 1 increasing middle housing in areas traditionally dedicated to single-2 family detached housing; amending RCW 36.70A.030, 36.70A.280, and 3 43.21C.495; adding new sections to chapter 36.70A RCW; adding a new 4 section to chapter 64.34 RCW; adding a new section to chapter 64.32 5 RCW; adding a new section to chapter 64.38 RCW; adding a new section 6 to chapter 64.90 RCW; and creating a new section.7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:8 NEW SECTION. Sec. 1. The legislature finds that Washington is 9 facing an unprecedented housing shortage for its current population 10 and without significant action will not meet its goal of creating 11 1,000,000 homes by 2044.12 Increasing housing options that are more affordable to various 13 income levels is critical to achieving the state's housing goals, 14 including those codified by the legislature under chapter 254, Laws 15 of 2021.16 There is continued need for the development of housing at all 17 income levels, including middle housing that will provide a wider 18 variety of housing options and configurations to allow Washingtonians 19 to live near where they work.20 H-1091.1 SUBSTITUTE HOUSE BILL 1110 State of Washington 68th Legislature 2023 Regular Session By House Housing (originally sponsored by Representatives Bateman, Barkis, Reed, Taylor, Riccelli, Berry, Fitzgibbon, Peterson, Duerr, Lekanoff, Alvarado, Street, Ryu, Ramel, Cortes, Doglio, Macri, Mena, Gregerson, Thai, Bergquist, Farivar, Wylie, Stonier, Pollet, Santos, Fosse, and Ormsby) READ FIRST TIME 02/13/23. p. 1 SHB 1110 27 AGENDA ITEM 9.2 To unlock opportunity for Washingtonians it is necessary to lift 1 bans on the development of modest home choices in cities near job 2 centers, transit, and amenity-rich neighborhoods.3 Homes developed at higher densities and gentle density housing 4 types are more affordable by design for Washington residents both in 5 their construction and reduced household energy and transportation 6 costs.7 While creating more housing options, it is essential for cities 8 to identify areas at higher risk of displacement and establish 9 antidisplacement policies as required in Engrossed Second Substitute 10 House Bill No. 1220 (chapter 254, Laws of 2021).11 The state has made historic investments in subsidized affordable 12 housing through the housing trust fund, yet even with these historic 13 investments, the magnitude of the housing shortage requires both 14 public and private investment.15 In addition to addressing the housing shortage, allowing more 16 housing options in areas already served by urban infrastructure will 17 reduce the pressure to develop natural and working lands, support key 18 strategies for climate change, food security, and Puget Sound 19 recovery, and save taxpayers and ratepayers money.20 Sec. 2. RCW 36.70A.030 and 2021 c 254 s 6 are each amended to 21 read as follows:22 Unless the context clearly requires otherwise, the definitions in 23 this section apply throughout this chapter.24 (1) "Administrative design review" means a development permit 25 process whereby an application is reviewed, approved, or denied by 26 the planning director or the planning director's designee based 27 solely on objective design and development standards without a public 28 meeting or hearing, unless such review is otherwise required by state 29 or federal law or the structure is listed on a local historic 30 register through a local preservation ordinance.31 (2) "Adopt a comprehensive land use plan" means to enact a new 32 comprehensive land use plan or to update an existing comprehensive 33 land use plan.34 (((2))) (3) "Affordable housing" means, unless the context 35 clearly indicates otherwise, residential housing whose monthly costs, 36 including utilities other than telephone, do not exceed thirty 37 percent of the monthly income of a household whose income is:38 p. 2 SHB 1110 28 AGENDA ITEM 9.2 (a) For rental housing, sixty percent of the median household 1 income adjusted for household size, for the county where the 2 household is located, as reported by the United States department of 3 housing and urban development; or4 (b) For owner-occupied housing, eighty percent of the median 5 household income adjusted for household size, for the county where 6 the household is located, as reported by the United States department 7 of housing and urban development.8 (((3))) (4) "Agricultural land" means land primarily devoted to 9 the commercial production of horticultural, viticultural, 10 floricultural, dairy, apiary, vegetable, or animal products or of 11 berries, grain, hay, straw, turf, seed, Christmas trees not subject 12 to the excise tax imposed by RCW 84.33.100 through 84.33.140, finfish 13 in upland hatcheries, or livestock, and that has long-term commercial 14 significance for agricultural production.15 (((4))) (5) "City" means any city or town, including a code city.16 (((5))) (6) "Community amenity" means:17 (a) A public school as defined in RCW 28A.150.010, a common 18 school as defined in RCW 28A.150.020, or a private school approved 19 under RCW 28A.195.010; or20 (b) A designated entrance or pedestrian access point to a park 21 operated by the state or a local government for the use of the 22 general public.23 (7) "Comprehensive land use plan," "comprehensive plan," or 24 "plan" means a generalized coordinated land use policy statement of 25 the governing body of a county or city that is adopted pursuant to 26 this chapter.27 (((6))) (8) "Cottage housing" means detached dwelling units 28 arranged on two or more sides of a landscaped central area.29 (9) "Courtyard apartments" means attached dwelling units arranged 30 on two or more sides of a landscaped central courtyard.31 (10) "Critical areas" include the following areas and ecosystems: 32 (a) Wetlands; (b) areas with a critical recharging effect on aquifers 33 used for potable water; (c) fish and wildlife habitat conservation 34 areas; (d) frequently flooded areas; and (e) geologically hazardous 35 areas. "Fish and wildlife habitat conservation areas" does not 36 include such artificial features or constructs as irrigation delivery 37 systems, irrigation infrastructure, irrigation canals, or drainage 38 ditches that lie within the boundaries of and are maintained by a 39 port district or an irrigation district or company.40 p. 3 SHB 1110 29 AGENDA ITEM 9.2 (((7))) (11) "Department" means the department of commerce.1 (((8))) (12) "Development regulations" or "regulation" means the 2 controls placed on development or land use activities by a county or 3 city, including, but not limited to, zoning ordinances, critical 4 areas ordinances, shoreline master programs, official controls, 5 planned unit development ordinances, subdivision ordinances, and 6 binding site plan ordinances together with any amendments thereto. A 7 development regulation does not include a decision to approve a 8 project permit application, as defined in RCW 36.70B.020, even though 9 the decision may be expressed in a resolution or ordinance of the 10 legislative body of the county or city.11 (((9))) (13) "Emergency housing" means temporary indoor 12 accommodations for individuals or families who are homeless or at 13 imminent risk of becoming homeless that is intended to address the 14 basic health, food, clothing, and personal hygiene needs of 15 individuals or families. Emergency housing may or may not require 16 occupants to enter into a lease or an occupancy agreement.17 (((10))) (14) "Emergency shelter" means a facility that provides 18 a temporary shelter for individuals or families who are currently 19 homeless. Emergency shelter may not require occupants to enter into a 20 lease or an occupancy agreement. Emergency shelter facilities may 21 include day and warming centers that do not provide overnight 22 accommodations.23 (((11))) (15) "Extremely low-income household" means a single 24 person, family, or unrelated persons living together whose adjusted 25 income is at or below thirty percent of the median household income 26 adjusted for household size, for the county where the household is 27 located, as reported by the United States department of housing and 28 urban development.29 (((12))) (16) "Forestland" means land primarily devoted to 30 growing trees for long-term commercial timber production on land that 31 can be economically and practically managed for such production, 32 including Christmas trees subject to the excise tax imposed under RCW 33 84.33.100 through 84.33.140, and that has long-term commercial 34 significance. In determining whether forestland is primarily devoted 35 to growing trees for long-term commercial timber production on land 36 that can be economically and practically managed for such production, 37 the following factors shall be considered: (a) The proximity of the 38 land to urban, suburban, and rural settlements; (b) surrounding 39 parcel size and the compatibility and intensity of adjacent and 40 p. 4 SHB 1110 30 AGENDA ITEM 9.2 nearby land uses; (c) long-term local economic conditions that affect 1 the ability to manage for timber production; and (d) the availability 2 of public facilities and services conducive to conversion of 3 forestland to other uses.4 (((13))) (17) "Freight rail dependent uses" means buildings and 5 other infrastructure that are used in the fabrication, processing, 6 storage, and transport of goods where the use is dependent on and 7 makes use of an adjacent short line railroad. Such facilities are 8 both urban and rural development for purposes of this chapter. 9 "Freight rail dependent uses" does not include buildings and other 10 infrastructure that are used in the fabrication, processing, storage, 11 and transport of coal, liquefied natural gas, or "crude oil" as 12 defined in RCW 90.56.010.13 (((14))) (18) "Geologically hazardous areas" means areas that 14 because of their susceptibility to erosion, sliding, earthquake, or 15 other geological events, are not suited to the siting of commercial, 16 residential, or industrial development consistent with public health 17 or safety concerns.18 (((15))) (19) "Long-term commercial significance" includes the 19 growing capacity, productivity, and soil composition of the land for 20 long-term commercial production, in consideration with the land's 21 proximity to population areas, and the possibility of more intense 22 uses of the land.23 (((16))) (20) "Low-income household" means a single person, 24 family, or unrelated persons living together whose adjusted income is 25 at or below eighty percent of the median household income adjusted 26 for household size, for the county where the household is located, as 27 reported by the United States department of housing and urban 28 development.29 (((17))) (21)(a) "Major transit stop," except as provided in (b) 30 of this subsection, means:31 (i) A stop on a high capacity transportation system funded or 32 expanded under the provisions of chapter 81.104 RCW;33 (ii) Commuter rail stops;34 (iii) Stops on rail or fixed guideway systems, including 35 transitways; or36 (iv) Stops on bus rapid transit routes.37 (b) Alternatively, a definition of "major transit stop" adopted 38 before the effective date of this section by a regional agency 39 planning under the multicounty planning policies authority pursuant 40 p. 5 SHB 1110 31 AGENDA ITEM 9.2 to RCW 36.70A.210(7) shall apply to counties and cities which are 1 subject to those multicounty planning policies.2 (22) "Middle housing" means buildings that are compatible in 3 scale, form, and character with single-family houses and contain two 4 or more attached, stacked, or clustered homes including duplexes, 5 triplexes, fourplexes, fiveplexes, sixplexes, townhouses, courtyard 6 apartments, and cottage housing.7 (23) "Minerals" include gravel, sand, and valuable metallic 8 substances.9 (((18))) (24) "Moderate-income household" means a single person, 10 family, or unrelated persons living together whose adjusted income is 11 at or below 120 percent of the median household income adjusted for 12 household size, for the county where the household is located, as 13 reported by the United States department of housing and urban 14 development.15 (((19))) (25) "Permanent supportive housing" is subsidized, 16 leased housing with no limit on length of stay that prioritizes 17 people who need comprehensive support services to retain tenancy and 18 utilizes admissions practices designed to use lower barriers to entry 19 than would be typical for other subsidized or unsubsidized rental 20 housing, especially related to rental history, criminal history, and 21 personal behaviors. Permanent supportive housing is paired with on-22 site or off-site voluntary services designed to support a person 23 living with a complex and disabling behavioral health or physical 24 health condition who was experiencing homelessness or was at imminent 25 risk of homelessness prior to moving into housing to retain their 26 housing and be a successful tenant in a housing arrangement, improve 27 the resident's health status, and connect the resident of the housing 28 with community-based health care, treatment, or employment services. 29 Permanent supportive housing is subject to all of the rights and 30 responsibilities defined in chapter 59.18 RCW.31 (((20))) (26) "Public facilities" include streets, roads, 32 highways, sidewalks, street and road lighting systems, traffic 33 signals, domestic water systems, storm and sanitary sewer systems, 34 parks and recreational facilities, and schools.35 (((21))) (27) "Public services" include fire protection and 36 suppression, law enforcement, public health, education, recreation, 37 environmental protection, and other governmental services.38 (((22))) (28) "Recreational land" means land so designated under 39 RCW 36.70A.1701 and that, immediately prior to this designation, was 40 p. 6 SHB 1110 32 AGENDA ITEM 9.2 designated as agricultural land of long-term commercial significance 1 under RCW 36.70A.170. Recreational land must have playing fields and 2 supporting facilities existing before July 1, 2004, for sports played 3 on grass playing fields.4 (((23))) (29) "Rural character" refers to the patterns of land 5 use and development established by a county in the rural element of 6 its comprehensive plan:7 (a) In which open space, the natural landscape, and vegetation 8 predominate over the built environment;9 (b) That foster traditional rural lifestyles, rural-based 10 economies, and opportunities to both live and work in rural areas;11 (c) That provide visual landscapes that are traditionally found 12 in rural areas and communities;13 (d) That are compatible with the use of the land by wildlife and 14 for fish and wildlife habitat;15 (e) That reduce the inappropriate conversion of undeveloped land 16 into sprawling, low-density development;17 (f) That generally do not require the extension of urban 18 governmental services; and19 (g) That are consistent with the protection of natural surface 20 water flows and groundwater and surface water recharge and discharge 21 areas.22 (((24))) (30) "Rural development" refers to development outside 23 the urban growth area and outside agricultural, forest, and mineral 24 resource lands designated pursuant to RCW 36.70A.170. Rural 25 development can consist of a variety of uses and residential 26 densities, including clustered residential development, at levels 27 that are consistent with the preservation of rural character and the 28 requirements of the rural element. Rural development does not refer 29 to agriculture or forestry activities that may be conducted in rural 30 areas.31 (((25))) (31) "Rural governmental services" or "rural services" 32 include those public services and public facilities historically and 33 typically delivered at an intensity usually found in rural areas, and 34 may include domestic water systems((,)) and fire and police 35 protection services((, transportation and public transit services, 36 and other public utilities)) associated with rural development and 37 normally not associated with urban areas. Rural services do not 38 include storm or sanitary sewers, except as otherwise authorized by 39 RCW 36.70A.110(4).40 p. 7 SHB 1110 33 AGENDA ITEM 9.2 (((26))) (32) "Short line railroad" means those railroad lines 1 designated class II or class III by the United States surface 2 transportation board.3 (((27))) (33) "Townhouses" means dwelling units constructed in a 4 row of two or more attached units where each dwelling unit shares at 5 least one common wall with an adjacent unit and is accessed by a 6 separate outdoor entrance.7 (34) "Urban governmental services" or "urban services" include 8 those public services and public facilities at an intensity 9 historically and typically provided in cities, specifically including 10 storm and sanitary sewer systems, domestic water systems, street 11 cleaning services, fire and police protection services, public 12 transit services, and other public utilities associated with urban 13 areas and normally not associated with rural areas.14 (((28))) (35) "Urban growth" refers to growth that makes 15 intensive use of land for the location of buildings, structures, and 16 impermeable surfaces to such a degree as to be incompatible with the 17 primary use of land for the production of food, other agricultural 18 products, or fiber, or the extraction of mineral resources, rural 19 uses, rural development, and natural resource lands designated 20 pursuant to RCW 36.70A.170. A pattern of more intensive rural 21 development, as provided in RCW 36.70A.070(5)(d), is not urban 22 growth. When allowed to spread over wide areas, urban growth 23 typically requires urban governmental services. "Characterized by 24 urban growth" refers to land having urban growth located on it, or to 25 land located in relationship to an area with urban growth on it as to 26 be appropriate for urban growth.27 (((29))) (36) "Urban growth areas" means those areas designated 28 by a county pursuant to RCW 36.70A.110.29 (((30))) (37) "Very low-income household" means a single person, 30 family, or unrelated persons living together whose adjusted income is 31 at or below fifty percent of the median household income adjusted for 32 household size, for the county where the household is located, as 33 reported by the United States department of housing and urban 34 development.35 (((31))) (38) "Wetland" or "wetlands" means areas that are 36 inundated or saturated by surface water or groundwater at a frequency 37 and duration sufficient to support, and that under normal 38 circumstances do support, a prevalence of vegetation typically 39 adapted for life in saturated soil conditions. Wetlands generally 40 p. 8 SHB 1110 34 AGENDA ITEM 9.2 include swamps, marshes, bogs, and similar areas. Wetlands do not 1 include those artificial wetlands intentionally created from 2 nonwetland sites, including, but not limited to, irrigation and 3 drainage ditches, grass-lined swales, canals, detention facilities, 4 wastewater treatment facilities, farm ponds, and landscape amenities, 5 or those wetlands created after July 1, 1990, that were 6 unintentionally created as a result of the construction of a road, 7 street, or highway. Wetlands may include those artificial wetlands 8 intentionally created from nonwetland areas created to mitigate 9 conversion of wetlands.10 NEW SECTION. Sec. 3. A new section is added to chapter 36.70A 11 RCW to read as follows:12 (1) Any city that is required or chooses to plan under RCW 13 36.70A.040 must provide by ordinance and incorporate into its 14 development regulations, zoning regulations, and other official 15 controls, authorization for the following:16 (a) For cities with a population of at least 25,000 but less than 17 75,000 based on office of financial management population estimates:18 (i) The development of at least two units per lot on all lots 19 zoned predominantly for residential use;20 (ii) The development of at least four units per lot on all lots 21 zoned predominantly for residential use within one-half mile walking 22 distance of a major transit stop or community amenity; and23 (iii) The development of at least four units per lot on all lots 24 zoned predominantly for residential use if at least one unit is 25 affordable housing.26 (b) For cities with a population of at least 75,000, or any city 27 within a contiguous urban growth area with a city with a population 28 above 200,000, based on office of financial management population 29 estimates:30 (i) The development of at least four units per lot on all lots 31 zoned predominantly for residential use;32 (ii) The development of at least six units per lot on all lots 33 zoned predominantly for residential use within one-half mile walking 34 distance of a major transit stop or community amenity; and35 (iii) The development of at least six units per lot on all lots 36 zoned predominantly for residential use if at least two units are 37 affordable housing.38 p. 9 SHB 1110 35 AGENDA ITEM 9.2 (2) To qualify for the additional units allowed under subsection 1 (1) of this section, the applicant must commit to renting or selling 2 the required number of units as affordable housing. The units must be 3 maintained as affordable for a term of at least 50 years, and the 4 property must satisfy that commitment and all required affordability 5 and income eligibility conditions adopted by the local government 6 under this chapter. The square footage of the units dedicated as 7 affordable must be equal to the average square footage of the market 8 rate units on the same lot. A city must require the applicant to 9 record a covenant or deed restriction that ensures the continuing 10 rental of units subject to these affordability requirements 11 consistent with the conditions in chapter 84.14 RCW for a period of 12 no less than 50 years. The covenant or deed restriction must also 13 address criteria and policies to maintain public benefit if the 14 property is converted to a use other than which continues to provide 15 for permanently affordable low-income housing.16 (3) Any combination of middle housing types must be allowed to 17 achieve the unit density required in subsection (1) of this section.18 (4) Any city subject to the requirements of this section:19 (a) May only adopt objective development and design standards on 20 the development of middle housing;21 (b) May only apply administrative design review;22 (c) Except as provided in (a) of this subsection, shall not 23 require through development regulations any standards for middle 24 housing that are more restrictive than those required for detached 25 single-family residences;26 (d) Shall apply to middle housing the same development permit and 27 environmental review processes that apply to detached single-family 28 residences, unless otherwise required by state law including, but not 29 limited to, shoreline regulations under chapter 90.58 RCW, building 30 codes under chapter 19.27 RCW, energy codes under chapter 19.27A RCW, 31 or electrical codes under chapter 19.28 RCW;32 (e) Shall not require off-street parking as a condition of 33 permitting development of middle housing within one-half mile walking 34 distance of a major transit stop;35 (f) Shall not require more than one off-street parking space per 36 unit as a condition of permitting development of middle housing on 37 lots smaller than 6,000 square feet; and38 p. 10 SHB 1110 36 AGENDA ITEM 9.2 (g) Shall not require more than two off-street parking spaces per 1 unit as a condition of permitting development of middle housing on 2 lots greater than 6,000 square feet.3 (5) The provisions of subsection (4)(e) through (g) of this 4 section do not apply if the city or county makes a determination, 5 supported by empirical evidence and best practices in a study that is 6 prepared by a credentialed transportation or land use planning 7 expert, that the lack of minimum parking requirements in a defined 8 area would make on-street parking infeasible or unsafe for the 9 authorized units. The department must develop guidance to assist 10 cities on items to include in the study.11 (6) The provisions of this section do not apply to lots 12 designated with critical areas or their buffers as designated in RCW 13 36.70A.060.14 (7) Nothing in this section prohibits a city from permitting 15 detached single-family residences.16 (8) A city must comply with the requirements of this section on 17 the latter of:18 (a) Six months after its next periodic comprehensive plan update 19 required under RCW 36.70A.130; or20 (b) 12 months after a determination by the office of financial 21 management that the city has reached a population threshold 22 established under this section.23 NEW SECTION. Sec. 4. A new section is added to chapter 36.70A 24 RCW to read as follows:25 Population associated with permits for middle housing units are 26 exempt from the threshold of an office of financial management 27 population projection to a county or a county population allocation 28 to a city.29 NEW SECTION. Sec. 5. A new section is added to chapter 36.70A 30 RCW to read as follows:31 (1)(a) The department is directed to provide technical assistance 32 to cities as they implement the requirements under section 3 of this 33 act.34 (b) The department shall prioritize such technical assistance to 35 cities demonstrating the greatest need.36 p. 11 SHB 1110 37 AGENDA ITEM 9.2 (2)(a) The department shall publish model middle housing 1 ordinances no later than six months following the effective date of 2 this section.3 (b) In any city subject to section 3 of this act that has not 4 passed ordinances, regulations, or other official controls within the 5 time frames provided under section 3(8) of this act, the model 6 ordinance supersedes, preempts, and invalidates local development 7 regulations until the city takes all actions necessary to implement 8 section 3 of this act.9 (3)(a) The department is directed to establish a process by which 10 cities implementing the requirements of section 3 of this act may 11 seek approval of alternative local action necessary to meet the 12 requirements of this act.13 (b) The department may approve actions for cities that have, by 14 the effective date of this section, adopted a comprehensive plan and 15 development regulations that are substantially similar to the 16 requirements of this act. In determining whether a city's adopted 17 comprehensive plan and permanent development regulations are 18 substantially similar, the department must view favorably plans and 19 regulations that authorize an overall increase in density throughout 20 the city in units allowed per single-family lot that is at least 75 21 percent of the overall single-family density throughout the city in 22 units allowed per lot, if the specific provisions of this act were 23 adopted.24 (c) Any local actions approved by the department pursuant to (a) 25 of this subsection to implement the requirements under section 3 of 26 this act are exempt from appeals under this chapter and chapter 27 43.21C RCW.28 (d) The department's final decision to approve or reject actions 29 by cities implementing section 3 of this act may be appealed to the 30 growth management hearings board by filing a petition as provided in 31 RCW 36.70A.290.32 NEW SECTION. Sec. 6. A new section is added to chapter 36.70A 33 RCW to read as follows:34 Any city subject to the requirements of section 3 of this act may 35 apply to the department for, and the department may certify, an 36 extension for areas at risk of displacement as determined by the 37 antidisplacement analysis that a jurisdiction is required to complete 38 under RCW 36.70A.070(2). The city must create a plan for implementing 39 p. 12 SHB 1110 38 AGENDA ITEM 9.2 antidisplacement policies by their next implementation progress 1 report required by RCW 36.70A.130(9).2 Sec. 7. RCW 36.70A.280 and 2011 c 360 s 17 are each amended to 3 read as follows:4 (1) The growth management hearings board shall hear and determine 5 only those petitions alleging either:6 (a) That, except as provided otherwise by this subsection, a 7 state agency, county, or city planning under this chapter is not in 8 compliance with the requirements of this chapter, chapter 90.58 RCW 9 as it relates to the adoption of shoreline master programs or 10 amendments thereto, or chapter 43.21C RCW as it relates to plans, 11 development regulations, or amendments, adopted under RCW 36.70A.040 12 or chapter 90.58 RCW. Nothing in this subsection authorizes the board 13 to hear petitions alleging noncompliance with RCW 36.70A.5801;14 (b) That the twenty-year growth management planning population 15 projections adopted by the office of financial management pursuant to 16 RCW 43.62.035 should be adjusted;17 (c) That the approval of a work plan adopted under RCW 18 36.70A.735(1)(a) is not in compliance with the requirements of the 19 program established under RCW 36.70A.710;20 (d) That regulations adopted under RCW 36.70A.735(1)(b) are not 21 regionally applicable and cannot be adopted, wholly or partially, by 22 another jurisdiction; ((or))23 (e) That a department certification under RCW 36.70A.735(1)(c) is 24 erroneous; or25 (f) That the department's final decision to approve or reject 26 actions by a city implementing section 3 of this act is erroneous.27 (2) A petition may be filed only by: (a) The state, or a county 28 or city that plans under this chapter; (b) a person who has 29 participated orally or in writing before the county or city regarding 30 the matter on which a review is being requested; (c) a person who is 31 certified by the governor within sixty days of filing the request 32 with the board; or (d) a person qualified pursuant to RCW 34.05.530.33 (3) For purposes of this section "person" means any individual, 34 partnership, corporation, association, state agency, governmental 35 subdivision or unit thereof, or public or private organization or 36 entity of any character.37 (4) To establish participation standing under subsection (2)(b) 38 of this section, a person must show that his or her participation 39 p. 13 SHB 1110 39 AGENDA ITEM 9.2 before the county or city was reasonably related to the person's 1 issue as presented to the board.2 (5) When considering a possible adjustment to a growth management 3 planning population projection prepared by the office of financial 4 management, the board shall consider the implications of any such 5 adjustment to the population forecast for the entire state.6 The rationale for any adjustment that is adopted by the board 7 must be documented and filed with the office of financial management 8 within ten working days after adoption.9 If adjusted by the board, a county growth management planning 10 population projection shall only be used for the planning purposes 11 set forth in this chapter and shall be known as the "board adjusted 12 population projection." None of these changes shall affect the 13 official state and county population forecasts prepared by the office 14 of financial management, which shall continue to be used for state 15 budget and planning purposes.16 NEW SECTION. Sec. 8. A new section is added to chapter 36.70A 17 RCW to read as follows:18 (1) Any city subject to the requirements under section 3 of this 19 act may apply to the department for, and the department may certify, 20 an extension of the implementation timelines established under 21 section 3(8) of this act.22 (2) An extension certified under this section may be applied only 23 to specific areas where a city can demonstrate that water, sewer, or 24 stormwater services lack capacity to accommodate the density required 25 in section 3 of this act, and the city has:26 (a) Included an improvement within its capital facilities plan to 27 increase capacity; or28 (b) Identified which special district is responsible for 29 providing the necessary infrastructure, if the infrastructure is 30 provided by a special purpose district.31 (3) An extension granted under this section remains in effect 32 until the earliest of:33 (a) The infrastructure is improved to accommodate the capacity;34 (b) The city completes its next periodic comprehensive plan 35 update under RCW 36.70A.130; or36 (c) The city submits its implementation progress report to the 37 department as required under RCW 36.70A.130(9).38 p. 14 SHB 1110 40 AGENDA ITEM 9.2 (4) A city that has received an extension under this section may 1 reapply for any needed extension with its next periodic comprehensive 2 plan update under RCW 36.70A.130 or its implementation progress 3 report to the department under RCW 36.70A.130(9). The application for 4 an additional extension must include a list of infrastructure 5 improvements necessary to meet the capacity required in section 3 of 6 this act.7 (5) The department may establish by rule any standards or 8 procedures necessary to implement this section.9 (6) The department must provide the legislature with a list of 10 projects identified in a city's capital facilities plan that were the 11 basis for the extension under this section, including planning level 12 estimates. Additionally, the city must contact special purpose 13 districts to identify additional projects associated with extensions 14 under this section.15 (7) A city granted an extension for a specific area must allow 16 development as provided under section 3 of this act if the developer 17 commits to providing the necessary water, sewer, or stormwater 18 infrastructure.19 Sec. 9. RCW 43.21C.495 and 2022 c 246 s 3 are each amended to 20 read as follows:21 (1) Adoption of ordinances, development regulations and 22 amendments to such regulations, and other nonproject actions taken by 23 a city to implement: The actions specified in section 2, chapter 246, 24 Laws of 2022 unless the adoption of such ordinances, development 25 regulations and amendments to such regulations, or other nonproject 26 actions has a probable significant adverse impact on fish habitat; 27 and the increased residential building capacity actions identified in 28 RCW 36.70A.600(1), with the exception of the action specified in RCW 29 36.70A.600(1)(f), are not subject to administrative or judicial 30 appeals under this chapter.31 (2) Amendments to development regulations and other nonproject 32 actions taken by a city to implement the requirements under section 3 33 of this act pursuant to section 5(3)(b) of this act are not subject 34 to administrative or judicial appeals under this chapter.35 NEW SECTION. Sec. 10. A new section is added to chapter 36.70A 36 RCW to read as follows:37 p. 15 SHB 1110 41 AGENDA ITEM 9.2 A city that adopts development regulations that are consistent 1 with and implement this act and RCW 35A.21.430 or 35.21.683 shall be 2 deemed in compliance with the requirements of RCW 36.70A.070(2)(d) 3 until June 30, 2032.4 NEW SECTION. Sec. 11. A new section is added to chapter 64.34 5 RCW to read as follows:6 A declaration created after the effective date of this section 7 and applicable to an area within a city subject to the middle housing 8 requirements in section 3 of this act may not actively or effectively 9 prohibit the construction, development, or use of additional housing 10 units as required in section 3 of this act.11 NEW SECTION. Sec. 12. A new section is added to chapter 64.32 12 RCW to read as follows:13 A declaration created after the effective date of this section 14 and applicable to an association of apartment owners located within 15 an area of a city subject to the middle housing requirements in 16 section 3 of this act may not actively or effectively prohibit the 17 construction, development, or use of additional housing units as 18 required in section 3 of this act.19 NEW SECTION. Sec. 13. A new section is added to chapter 64.38 20 RCW to read as follows:21 Governing documents of associations within cities subject to the 22 middle housing requirements in section 3 of this act that are created 23 after the effective date of this section may not actively or 24 effectively prohibit the construction, development, or use of 25 additional housing units as required in section 3 of this act.26 NEW SECTION. Sec. 14. A new section is added to chapter 64.90 27 RCW to read as follows:28 Declarations and governing documents of a common interest 29 community within cities subject to the middle housing requirements in 30 section 3 of this act that are created after the effective date of 31 this section may not actively or effectively prohibit the 32 construction, development, or use of additional housing units as 33 required in section 3 of this act.34 --- END --- p. 16 SHB 1110 42 AGENDA ITEM 9.2 HOUSE BILL REPORT HB 1245 As Reported by House Committee On: Housing Title: An act relating to increasing housing options through lot splitting. Brief Description: Increasing housing options through lot splitting. Sponsors: Representatives Barkis, Robertson, Wylie, Fitzgibbon, Peterson, Walsh, Chambers, Kloba, Gregerson, Graham, Waters, Reed, Walen, Christian, Riccelli, Macri, Bateman and Doglio. Brief History: Committee Activity: Housing: 1/26/23, 2/2/23 [DPS]. Brief Summary of Substitute Bill Requires cities to allow the splitting of a single residential lot if specific conditions are met. • Prohibits cities from imposing certain regulations on a residential lot that is the result of a lot split. • HOUSE COMMITTEE ON HOUSING Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 13 members:Representatives Peterson, Chair; Alvarado, Vice Chair; Leavitt, Vice Chair; Klicker, Ranking Minority Member; Connors, Assistant Ranking Minority Member; Barkis, Bateman, Chopp, Entenman, Hutchins, Low, Reed and Taylor. Staff: Serena Dolly (786-7150). Background: This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not part of the legislation nor does it constitute a statement of legislative intent. HB 1245- 1 -House Bill Report 43 AGENDA ITEM 9.2 The Growth Management Act (GMA) is the comprehensive land use planning framework for counties and cities in Washington. The GMA establishes land-use designation and environmental protection requirements for all Washington counties and cities. The GMA also establishes a significantly wider array of planning duties for 28 counties, and the cities within those counties, that are obligated to satisfy all planning requirements of the GMA. These jurisdictions are sometimes said to be "fully planning" under the GMA. Counties that fully plan under the GMA must designate urban growth areas (UGAs), within which urban growth must be encouraged and outside of which growth may occur only if it is not urban in nature. Each city in a county must be included in a UGA. Planning jurisdictions must include within their UGAs sufficient areas and densities to accommodate projected urban growth for the succeeding 20-year period. The GMA also directs fully planning jurisdictions to adopt internally consistent, comprehensive land use plans. Comprehensive plans are implemented through locally adopted development regulations, and both the plans and the local regulations are subject to review and revision requirements prescribed in the GMA. When developing their comprehensive plans, counties and cities must consider various goals set forth in statute. Each comprehensive plan must include a plan, scheme, or design for certain mandatory elements, including a housing element. The housing element must ensure the vitality and character of established residential neighborhoods. Summary of Substitute Bill: By July 1, 2024, cities planning under the GMA may not prohibit, within a residential zone that allows for the development of detached single-family residences, the splitting of a single residential lot into two residential lots if: the resulting lots are at least 1,500 square feet;• the resulting lots are at least 40 percent of the size of the original lot;• the original lot was not created by splitting a single residential lot authorized by this act; • the lot split would not require demolition or alteration of any housing that is rent restricted, rent subsidized, or that has been occupied by a tenant paying market-rate rent within the preceding 12 months; • minimum review standards for subdivisions are met; and• any construction on the resulting lots is subject to all existing state and local laws except for those outlined in this act. • A fully planning city also may not impose regulations on a residential lot that is the result of splitting a single lot that: requires more than one off-street parking space per lot;• requires more than 20 feet of frontage width per lot;• HB 1245- 2 -House Bill Report 44 AGENDA ITEM 9.2 requires easement widths of more than four feet for access to rear lots, unless site- specific conditions, such as access to utilities, require wider easements ; • imposes permitting requirements, design standards, or impact fees on construction on a lot resulting from a lot split that are greater than those imposed on new residential construction generally within the same zone; or • imposes requirements for dedications of rights-of-way or for the construction of off- site improvements, unless site specific conditions require otherwise . • Any conflicting provisions in local development regulations after July 1, 2024, are superseded, preempted, and invalidated. Substitute Bill Compared to Original Bill: The original bill prohibited a city from requiring easement widths of more than four feet for access to rear lots. The substitute bill clarifies that cities may require wider easements if required by site-specific conditions, such as access to utilities. The original bill also prohibited a city from imposing requirements for dedications of rights- of-way or for the construction of off-site improvements. The substitute bill allows exceptions for site-specific conditions. The original bill specified any construction on lots resulting from a split was subject to all existing state and local laws regarding stormwater runoff, critical areas, shorelines, and conservation areas. The substitute bill removes references to specific types of laws and specifies that the construction is subject to all existing state and local laws, except for the provisions outlined in this act. The substitute bill requires all lots resulting from a split to meet existing minimum review standards for subdivisions. Appropriation: None. Fiscal Note: Available. Effective Date of Substitute Bill: The bill takes effect 90 days after adjournment of the session in which the bill is passed. Staff Summary of Public Testimony: (In support) In this housing crisis, we need lots of options. New homes are unaffordable to families buying their first homes. Large lot sizes encourage builders to focus on larger houses. Lot splitting can be a major source of housing supply. Splitting residential lots allows for the creation of more homes, smaller homes, less expensive homes, and HB 1245- 3 -House Bill Report 45 AGENDA ITEM 9.2 intergenerational homes. While it is sometimes possible to split a lot now, this bill removes some of the processes and prohibitions. (Opposed) None. (Other) This is a comprehensive change to local land use regulations, and it is not feasible for all jurisdictions to make the changes in the time frame provided. Persons Testifying: (In support) Representative Andrew Barkis, prime sponsor; Sol Villarreal; and Josie Cummings, Building Industry Association of Washington. (Other) Salim Furth, The Mercatus Center at George Mason University; and Luke Esser, City of Mercer Island. Persons Signed In To Testify But Not Testifying: Dan Bertolet, Sightline Institute; Ryan Donohue, Habitat for Humanity Seattle-King and Kittitas Counties; Bryan Kirschner; and Cathy MacCaul, American Association of Retired Persons Washington State. HB 1245- 4 -House Bill Report 46 AGENDA ITEM 9.2 AN ACT Relating to increasing housing options through lot 1 splitting; adding a new section to chapter 36.70A RCW; and creating a 2 new section.3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4 NEW SECTION. Sec. 1. The legislature finds that allowing an 5 existing residential lot to be split into two lots can offer many 6 advantages to both the existing homeowner and to prospective 7 homebuyers. Lot splitting can provide current owners the opportunity 8 to maintain homeownership in changing life circumstances, while also 9 providing new homebuyers with a more affordable ownership 10 opportunity. Additionally, lot splitting will provide additional 11 opportunities for sales to affordable housing providers or 12 homeownership facilitators that may be exempt from state real estate 13 excise tax under chapter 82.45 RCW. Therefore, it is the intent of 14 the legislature to ease restrictions on, and expand opportunities 15 for, lot splitting in cities planning under chapter 36.70A RCW, the 16 growth management act.17 NEW SECTION. Sec. 2. A new section is added to chapter 36.70A 18 RCW to read as follows:19 H-1021.1 SUBSTITUTE HOUSE BILL 1245 State of Washington 68th Legislature 2023 Regular Session By House Housing (originally sponsored by Representatives Barkis, Robertson, Wylie, Fitzgibbon, Peterson, Walsh, Chambers, Kloba, Gregerson, Graham, Waters, Reed, Walen, Christian, Riccelli, Macri, Bateman, and Doglio) READ FIRST TIME 02/06/23. p. 1 SHB 1245 47 AGENDA ITEM 9.2 (1)(a) Cities planning under this chapter must adopt or amend by 1 ordinance, and incorporate into their development regulations, zoning 2 regulations, and other official controls the requirements of 3 subsection (2) of this section by July 1, 2024, to apply within the 4 city's urban growth area.5 (b) Beginning July 1, 2024, the requirements of subsection (2) of 6 this section apply and take effect in any city that has not adopted 7 or amended ordinances, regulations, or other official controls as 8 required under this section and supersede, preempt, and invalidate 9 any conflicting local development regulations.10 (2) Through ordinances, development regulations, zoning 11 regulations, and other official controls as required under subsection 12 (1) of this section, cities may not:13 (a) Prohibit, within a residential zone that allows for the 14 development of detached single-family residences, the splitting of a 15 single residential lot into two residential lots if the following 16 conditions are met:17 (i) The resulting lots are at least 1,500 square feet;18 (ii) The resulting lots are at least 40 percent of the size of 19 the original lot;20 (iii) The resulting lots are consistent with the minimum review 21 standards under chapter 58.17 RCW;22 (iv) The original lot was not created through the splitting of a 23 single residential lot authorized by this section; and24 (v) The lot split would not require demolition or alteration of 25 any housing that is rent restricted, rent subsidized, or that has 26 been occupied by a tenant paying market-rate rent within the 27 preceding 12 months;28 (b) Impose regulations on a residential lot that is the result of 29 a lot split that:30 (i) Require more than one off-street parking space per lot;31 (ii) Require more than 20 feet of frontage width per lot;32 (iii) Require easement widths of more than four feet for access 33 to rear lots unless site-specific conditions, such as access to 34 utilities, require wider easements;35 (iv) Impose permitting requirements, design standards, or impacts 36 fees on construction on a lot resulting from a lot split that are 37 greater than those imposed on new residential construction generally 38 within the same zone; or39 p. 2 SHB 1245 48 AGENDA ITEM 9.2 (v) Impose requirements for dedications of rights-of-way or for 1 the construction of off-site improvements unless site-specific 2 conditions require otherwise.3 (3) Any construction on the resulting lots is subject to all 4 existing state and local laws except for the provisions specified in 5 subsection (2) of this section.6 --- END --- p. 3 SHB 1245 49 AGENDA ITEM 9.2 Proposed 2nd Substitute House Bill 1110 (H-1497.1) House Appropriations Committee By Representative Macri Substitute Bill (as recommended by Housing Committee): • Requires certain cities planning under the Growth Management Act to allow minimum development densities in residential zones and include specific provisions related to middle housing in their development regulations. • Requires the Department of Commerce (Commerce) to provide technical assistance to cities in implementing middle housing requirements, to develop model middle housing ordinances, to approve existing local development regulations as substantially equivalent, and to grant extensions to implementation timelines for certain infrastructure deficiencies. Proposed 2nd Substitute House Bill (H-1497.1) compared to the Substitute House Bill (as recommended by the Housing Committee): • Modifies the definition of "community amenity" by removing private schools from the definition of schools and adding the word "community" to the definition of a park. • Modifies the definition of "critical areas" by adding a watershed serving a reservoir for potable water if that watershed is listed, or was listed as of the effective date of the bill, as impaired or threatened under section 303(d) of the federal Clean Water Act. • Modifies the density requirements for cities over 75,000 and those within a contiguous urban growth area to allow six units on all lots within one-quarter mile of a major transit stop or community amenity, instead of one-half mile. • Requires a city to choose six of the eight middle housing types identified in the bill to meet density requirements, instead of requiring a city to allow all middle housing types. • Requires the units dedicated as affordable to be comparable in size and number of bedrooms as other units in the development and be generally distributed throughout the development, instead of having the same average square footage of market rate units on the same lot. • Allows a city with an affordable housing incentive program, regardless of when the program was created, expanded, or modified, to vary from the affordable housing requirements in the bill and require any development to provide affordable housing, either on-site or through an in-lieu payment. • Explicitly states that a city may apply any objective development regulations to middle housing that are required for detached single-family residences, including any set back and tree retention requirements. • Changes the exemption from the off-street parking limits by requiring a jurisdiction to submit to Commerce an empirical study prepared by a credentialed transportation or land use planning expert that clearly demonstrates, and Commerce finds and certifies, that the application of the off-street parking limitations for middle housing will be significantly less safe for vehicle drivers or passengers, pedestrians, or bicyclists than if the jurisdiction’s parking requirements were applied to the same location for the same number of detached houses. • Exempts portions of cities within a one-mile radius of a commercial airport in Washington with at least 9 million annual enplanements from the parking limits for middle housing. Staff: Serena Dolly Date: February 23, 2023 50 AGENDA ITEM 9.2 • Changes the requirements for a city to demonstrate substantial equivalency with the provisions of the bill by specifying a jurisdiction must have, by January 1, 2023, adopted a comprehensive plan and, within one year of the effective date of the bill, must adopt permanent development regulations that: (1) result in an overall increase in housing units allowed in single-family zones that is at least 75 percent of the increase in housing units allowed in single-family zones if the specific provisions of the bill were adopted; (2) allow for middle housing throughout the city, rather than just in targeted locations; and (3) allow for additional density near major transit stops, schools, and parks and in projects that incorporate dedicated affordable housing. • Adds fire protection services to the types of infrastructure that can qualify for an extension from the density requirements. • Provides a categorical exemption from the State Environmental Policy Act for development regulations that remove parking requirements for infill development. • Allows Commerce to establish by rule any standards or procedures to implement the act. 51 AGENDA ITEM 9.2 BILL REQUEST - CODE REVISER'S OFFICE BILL REQ. #:H-1497.1/23 ATTY/TYPIST:MFW:roy BRIEF DESCRIPTION:Increasing middle housing in areas traditionally dedicated to single-family detached housing. 52 AGENDA ITEM 9.2 AN ACT Relating to creating more homes for Washington by 1 increasing middle housing in areas traditionally dedicated to single-2 family detached housing; amending RCW 36.70A.030, 36.70A.280, 3 43.21C.495, and 43.21C.229; adding new sections to chapter 36.70A 4 RCW; adding a new section to chapter 64.34 RCW; adding a new section 5 to chapter 64.32 RCW; adding a new section to chapter 64.38 RCW; 6 adding new sections to chapter 64.90 RCW; and creating a new section.7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:8 NEW SECTION. Sec. 1. The legislature finds that Washington is 9 facing an unprecedented housing shortage for its current population 10 and without significant action will not meet its goal of creating 11 1,000,000 homes by 2044.12 Increasing housing options that are more affordable to various 13 income levels is critical to achieving the state's housing goals, 14 including those codified by the legislature under chapter 254, Laws 15 of 2021.16 There is continued need for the development of housing at all 17 income levels, including middle housing that will provide a wider 18 variety of housing options and configurations to allow Washingtonians 19 to live near where they work.20 Code Rev/MFW:roy 1 H-1497.1/23 53 AGENDA ITEM 9.2 To unlock opportunity for Washingtonians it is necessary to lift 1 bans on the development of modest home choices in cities near job 2 centers, transit, and amenity-rich neighborhoods.3 Homes developed at higher densities and gentle density housing 4 types are more affordable by design for Washington residents both in 5 their construction and reduced household energy and transportation 6 costs.7 While creating more housing options, it is essential for cities 8 to identify areas at higher risk of displacement and establish 9 antidisplacement policies as required in Engrossed Second Substitute 10 House Bill No. 1220 (chapter 254, Laws of 2021).11 The state has made historic investments in subsidized affordable 12 housing through the housing trust fund, yet even with these historic 13 investments, the magnitude of the housing shortage requires both 14 public and private investment.15 In addition to addressing the housing shortage, allowing more 16 housing options in areas already served by urban infrastructure will 17 reduce the pressure to develop natural and working lands, support key 18 strategies for climate change, food security, and Puget Sound 19 recovery, and save taxpayers and ratepayers money.20 Sec. 2. RCW 36.70A.030 and 2021 c 254 s 6 are each amended to 21 read as follows:22 Unless the context clearly requires otherwise, the definitions in 23 this section apply throughout this chapter.24 (1) "Administrative design review" means a development permit 25 process whereby an application is reviewed, approved, or denied by 26 the planning director or the planning director's designee based 27 solely on objective design and development standards without a public 28 meeting or hearing, unless such review is otherwise required by state 29 or federal law or the structure is listed on a local historic 30 register through a local preservation ordinance.31 (2) "Adopt a comprehensive land use plan" means to enact a new 32 comprehensive land use plan or to update an existing comprehensive 33 land use plan.34 (((2))) (3) "Affordable housing" means, unless the context 35 clearly indicates otherwise, residential housing whose monthly costs, 36 including utilities other than telephone, do not exceed thirty 37 percent of the monthly income of a household whose income is:38 Code Rev/MFW:roy 2 H-1497.1/23 54 AGENDA ITEM 9.2 (a) For rental housing, sixty percent of the median household 1 income adjusted for household size, for the county where the 2 household is located, as reported by the United States department of 3 housing and urban development; or4 (b) For owner-occupied housing, eighty percent of the median 5 household income adjusted for household size, for the county where 6 the household is located, as reported by the United States department 7 of housing and urban development.8 (((3))) (4) "Agricultural land" means land primarily devoted to 9 the commercial production of horticultural, viticultural, 10 floricultural, dairy, apiary, vegetable, or animal products or of 11 berries, grain, hay, straw, turf, seed, Christmas trees not subject 12 to the excise tax imposed by RCW 84.33.100 through 84.33.140, finfish 13 in upland hatcheries, or livestock, and that has long-term commercial 14 significance for agricultural production.15 (((4))) (5) "City" means any city or town, including a code city.16 (((5))) (6) "Community amenity" means:17 (a) A public school as defined in RCW 28A.150.010 or a common 18 school as defined in RCW 28A.150.020; or19 (b) A designated entrance or pedestrian access point to a 20 community park operated by the state or a local government for the 21 use of the general public.22 (7) "Comprehensive land use plan," "comprehensive plan," or 23 "plan" means a generalized coordinated land use policy statement of 24 the governing body of a county or city that is adopted pursuant to 25 this chapter.26 (((6))) (8) "Cottage housing" means detached dwelling units 27 arranged on two or more sides of a landscaped central area.28 (9) "Courtyard apartments" means attached dwelling units arranged 29 on two or more sides of a landscaped central courtyard.30 (10) "Critical areas" include the following areas and ecosystems: 31 (a) Wetlands; (b) areas with a critical recharging effect on aquifers 32 used for potable water; (c) a watershed serving a reservoir for 33 potable water if that watershed is listed, or was listed as of the 34 effective date of this section, as impaired or threatened under 35 section 303(d) of the federal clean water act (33 U.S.C. Sec. 36 1313(d)); (d) fish and wildlife habitat conservation areas; (((d))) 37 (e) frequently flooded areas; and (((e))) (f) geologically hazardous 38 areas. "Fish and wildlife habitat conservation areas" does not 39 include such artificial features or constructs as irrigation delivery 40 Code Rev/MFW:roy 3 H-1497.1/23 55 AGENDA ITEM 9.2 systems, irrigation infrastructure, irrigation canals, or drainage 1 ditches that lie within the boundaries of and are maintained by a 2 port district or an irrigation district or company.3 (((7))) (11) "Department" means the department of commerce.4 (((8))) (12) "Development regulations" or "regulation" means the 5 controls placed on development or land use activities by a county or 6 city, including, but not limited to, zoning ordinances, critical 7 areas ordinances, shoreline master programs, official controls, 8 planned unit development ordinances, subdivision ordinances, and 9 binding site plan ordinances together with any amendments thereto. A 10 development regulation does not include a decision to approve a 11 project permit application, as defined in RCW 36.70B.020, even though 12 the decision may be expressed in a resolution or ordinance of the 13 legislative body of the county or city.14 (((9))) (13) "Emergency housing" means temporary indoor 15 accommodations for individuals or families who are homeless or at 16 imminent risk of becoming homeless that is intended to address the 17 basic health, food, clothing, and personal hygiene needs of 18 individuals or families. Emergency housing may or may not require 19 occupants to enter into a lease or an occupancy agreement.20 (((10))) (14) "Emergency shelter" means a facility that provides 21 a temporary shelter for individuals or families who are currently 22 homeless. Emergency shelter may not require occupants to enter into a 23 lease or an occupancy agreement. Emergency shelter facilities may 24 include day and warming centers that do not provide overnight 25 accommodations.26 (((11))) (15) "Extremely low-income household" means a single 27 person, family, or unrelated persons living together whose adjusted 28 income is at or below thirty percent of the median household income 29 adjusted for household size, for the county where the household is 30 located, as reported by the United States department of housing and 31 urban development.32 (((12))) (16) "Forestland" means land primarily devoted to 33 growing trees for long-term commercial timber production on land that 34 can be economically and practically managed for such production, 35 including Christmas trees subject to the excise tax imposed under RCW 36 84.33.100 through 84.33.140, and that has long-term commercial 37 significance. In determining whether forestland is primarily devoted 38 to growing trees for long-term commercial timber production on land 39 that can be economically and practically managed for such production, 40 Code Rev/MFW:roy 4 H-1497.1/23 56 AGENDA ITEM 9.2 the following factors shall be considered: (a) The proximity of the 1 land to urban, suburban, and rural settlements; (b) surrounding 2 parcel size and the compatibility and intensity of adjacent and 3 nearby land uses; (c) long-term local economic conditions that affect 4 the ability to manage for timber production; and (d) the availability 5 of public facilities and services conducive to conversion of 6 forestland to other uses.7 (((13))) (17) "Freight rail dependent uses" means buildings and 8 other infrastructure that are used in the fabrication, processing, 9 storage, and transport of goods where the use is dependent on and 10 makes use of an adjacent short line railroad. Such facilities are 11 both urban and rural development for purposes of this chapter. 12 "Freight rail dependent uses" does not include buildings and other 13 infrastructure that are used in the fabrication, processing, storage, 14 and transport of coal, liquefied natural gas, or "crude oil" as 15 defined in RCW 90.56.010.16 (((14))) (18) "Geologically hazardous areas" means areas that 17 because of their susceptibility to erosion, sliding, earthquake, or 18 other geological events, are not suited to the siting of commercial, 19 residential, or industrial development consistent with public health 20 or safety concerns.21 (((15))) (19) "Long-term commercial significance" includes the 22 growing capacity, productivity, and soil composition of the land for 23 long-term commercial production, in consideration with the land's 24 proximity to population areas, and the possibility of more intense 25 uses of the land.26 (((16))) (20) "Low-income household" means a single person, 27 family, or unrelated persons living together whose adjusted income is 28 at or below eighty percent of the median household income adjusted 29 for household size, for the county where the household is located, as 30 reported by the United States department of housing and urban 31 development.32 (((17))) (21)(a) "Major transit stop," except as provided in (b) 33 of this subsection, means:34 (i) A stop on a high capacity transportation system funded or 35 expanded under the provisions of chapter 81.104 RCW;36 (ii) Commuter rail stops;37 (iii) Stops on rail or fixed guideway systems, including 38 transitways; or39 (iv) Stops on bus rapid transit routes.40 Code Rev/MFW:roy 5 H-1497.1/23 57 AGENDA ITEM 9.2 (b) Alternatively, a definition of "major transit stop" adopted 1 before the effective date of this section by a regional agency 2 planning under the multicounty planning policies authority pursuant 3 to RCW 36.70A.210(7) shall apply to counties and cities which are 4 subject to those multicounty planning policies.5 (22) "Middle housing" means buildings that are compatible in 6 scale, form, and character with single-family houses and contain two 7 or more attached, stacked, or clustered homes including duplexes, 8 triplexes, fourplexes, fiveplexes, sixplexes, townhouses, courtyard 9 apartments, and cottage housing.10 (23) "Minerals" include gravel, sand, and valuable metallic 11 substances.12 (((18))) (24) "Moderate-income household" means a single person, 13 family, or unrelated persons living together whose adjusted income is 14 at or below 120 percent of the median household income adjusted for 15 household size, for the county where the household is located, as 16 reported by the United States department of housing and urban 17 development.18 (((19))) (25) "Permanent supportive housing" is subsidized, 19 leased housing with no limit on length of stay that prioritizes 20 people who need comprehensive support services to retain tenancy and 21 utilizes admissions practices designed to use lower barriers to entry 22 than would be typical for other subsidized or unsubsidized rental 23 housing, especially related to rental history, criminal history, and 24 personal behaviors. Permanent supportive housing is paired with on-25 site or off-site voluntary services designed to support a person 26 living with a complex and disabling behavioral health or physical 27 health condition who was experiencing homelessness or was at imminent 28 risk of homelessness prior to moving into housing to retain their 29 housing and be a successful tenant in a housing arrangement, improve 30 the resident's health status, and connect the resident of the housing 31 with community-based health care, treatment, or employment services. 32 Permanent supportive housing is subject to all of the rights and 33 responsibilities defined in chapter 59.18 RCW.34 (((20))) (26) "Public facilities" include streets, roads, 35 highways, sidewalks, street and road lighting systems, traffic 36 signals, domestic water systems, storm and sanitary sewer systems, 37 parks and recreational facilities, and schools.38 Code Rev/MFW:roy 6 H-1497.1/23 58 AGENDA ITEM 9.2 (((21))) (27) "Public services" include fire protection and 1 suppression, law enforcement, public health, education, recreation, 2 environmental protection, and other governmental services.3 (((22))) (28) "Recreational land" means land so designated under 4 RCW 36.70A.1701 and that, immediately prior to this designation, was 5 designated as agricultural land of long-term commercial significance 6 under RCW 36.70A.170. Recreational land must have playing fields and 7 supporting facilities existing before July 1, 2004, for sports played 8 on grass playing fields.9 (((23))) (29) "Rural character" refers to the patterns of land 10 use and development established by a county in the rural element of 11 its comprehensive plan:12 (a) In which open space, the natural landscape, and vegetation 13 predominate over the built environment;14 (b) That foster traditional rural lifestyles, rural-based 15 economies, and opportunities to both live and work in rural areas;16 (c) That provide visual landscapes that are traditionally found 17 in rural areas and communities;18 (d) That are compatible with the use of the land by wildlife and 19 for fish and wildlife habitat;20 (e) That reduce the inappropriate conversion of undeveloped land 21 into sprawling, low-density development;22 (f) That generally do not require the extension of urban 23 governmental services; and24 (g) That are consistent with the protection of natural surface 25 water flows and groundwater and surface water recharge and discharge 26 areas.27 (((24))) (30) "Rural development" refers to development outside 28 the urban growth area and outside agricultural, forest, and mineral 29 resource lands designated pursuant to RCW 36.70A.170. Rural 30 development can consist of a variety of uses and residential 31 densities, including clustered residential development, at levels 32 that are consistent with the preservation of rural character and the 33 requirements of the rural element. Rural development does not refer 34 to agriculture or forestry activities that may be conducted in rural 35 areas.36 (((25))) (31) "Rural governmental services" or "rural services" 37 include those public services and public facilities historically and 38 typically delivered at an intensity usually found in rural areas, and 39 may include domestic water systems((,)) and fire and police 40 Code Rev/MFW:roy 7 H-1497.1/23 59 AGENDA ITEM 9.2 protection services((, transportation and public transit services, 1 and other public utilities)) associated with rural development and 2 normally not associated with urban areas. Rural services do not 3 include storm or sanitary sewers, except as otherwise authorized by 4 RCW 36.70A.110(4).5 (((26))) (32) "Short line railroad" means those railroad lines 6 designated class II or class III by the United States surface 7 transportation board.8 (((27))) (33) "Townhouses" means dwelling units constructed in a 9 row of two or more attached units where each dwelling unit shares at 10 least one common wall with an adjacent unit and is accessed by a 11 separate outdoor entrance.12 (34) "Urban governmental services" or "urban services" include 13 those public services and public facilities at an intensity 14 historically and typically provided in cities, specifically including 15 storm and sanitary sewer systems, domestic water systems, street 16 cleaning services, fire and police protection services, public 17 transit services, and other public utilities associated with urban 18 areas and normally not associated with rural areas.19 (((28))) (35) "Urban growth" refers to growth that makes 20 intensive use of land for the location of buildings, structures, and 21 impermeable surfaces to such a degree as to be incompatible with the 22 primary use of land for the production of food, other agricultural 23 products, or fiber, or the extraction of mineral resources, rural 24 uses, rural development, and natural resource lands designated 25 pursuant to RCW 36.70A.170. A pattern of more intensive rural 26 development, as provided in RCW 36.70A.070(5)(d), is not urban 27 growth. When allowed to spread over wide areas, urban growth 28 typically requires urban governmental services. "Characterized by 29 urban growth" refers to land having urban growth located on it, or to 30 land located in relationship to an area with urban growth on it as to 31 be appropriate for urban growth.32 (((29))) (36) "Urban growth areas" means those areas designated 33 by a county pursuant to RCW 36.70A.110.34 (((30))) (37) "Very low-income household" means a single person, 35 family, or unrelated persons living together whose adjusted income is 36 at or below fifty percent of the median household income adjusted for 37 household size, for the county where the household is located, as 38 reported by the United States department of housing and urban 39 development.40 Code Rev/MFW:roy 8 H-1497.1/23 60 AGENDA ITEM 9.2 (((31))) (38) "Wetland" or "wetlands" means areas that are 1 inundated or saturated by surface water or groundwater at a frequency 2 and duration sufficient to support, and that under normal 3 circumstances do support, a prevalence of vegetation typically 4 adapted for life in saturated soil conditions. Wetlands generally 5 include swamps, marshes, bogs, and similar areas. Wetlands do not 6 include those artificial wetlands intentionally created from 7 nonwetland sites, including, but not limited to, irrigation and 8 drainage ditches, grass-lined swales, canals, detention facilities, 9 wastewater treatment facilities, farm ponds, and landscape amenities, 10 or those wetlands created after July 1, 1990, that were 11 unintentionally created as a result of the construction of a road, 12 street, or highway. Wetlands may include those artificial wetlands 13 intentionally created from nonwetland areas created to mitigate 14 conversion of wetlands.15 NEW SECTION. Sec. 3. A new section is added to chapter 36.70A 16 RCW to read as follows:17 (1) Any city that is required or chooses to plan under RCW 18 36.70A.040 must provide by ordinance and incorporate into its 19 development regulations, zoning regulations, and other official 20 controls, authorization for the following:21 (a) For cities with a population of at least 25,000 but less than 22 75,000 based on office of financial management population estimates:23 (i) The development of at least two units per lot on all lots 24 zoned predominantly for residential use;25 (ii) The development of at least four units per lot on all lots 26 zoned predominantly for residential use within one-half mile walking 27 distance of a major transit stop or community amenity; and28 (iii) The development of at least four units per lot on all lots 29 zoned predominantly for residential use if at least one unit is 30 affordable housing.31 (b) For cities with a population of at least 75,000, or any city 32 within a contiguous urban growth area with a city with a population 33 above 200,000, based on office of financial management population 34 estimates:35 (i) The development of at least four units per lot on all lots 36 zoned predominantly for residential use;37 Code Rev/MFW:roy 9 H-1497.1/23 61 AGENDA ITEM 9.2 (ii) The development of at least six units per lot on all lots 1 zoned predominantly for residential use within one-quarter mile 2 walking distance of a major transit stop or community amenity; and3 (iii) The development of at least six units per lot on all lots 4 zoned predominantly for residential use if at least two units are 5 affordable housing.6 (2)(a) To qualify for the additional units allowed under 7 subsection (1) of this section, the applicant must commit to renting 8 or selling the required number of units as affordable housing. The 9 units must be maintained as affordable for a term of at least 50 10 years, and the property must satisfy that commitment and all required 11 affordability and income eligibility conditions adopted by the local 12 government under this chapter. A city must require the applicant to 13 record a covenant or deed restriction that ensures the continuing 14 rental of units subject to these affordability requirements 15 consistent with the conditions in chapter 84.14 RCW for a period of 16 no less than 50 years. The covenant or deed restriction must also 17 address criteria and policies to maintain public benefit if the 18 property is converted to a use other than which continues to provide 19 for permanently affordable low-income housing.20 (b) The units dedicated as affordable must be provided in a range 21 of sizes comparable to other units in the development. To the extent 22 practicable, the number of bedrooms in affordable units must be in 23 the same proportion as the number of bedrooms in units within the 24 entire development. The affordable units must generally be 25 distributed throughout the development and have substantially the 26 same functionality as the other units in the development.27 (c) If a city has enacted a program under RCW 36.70A.540, the 28 terms of that program govern to the extent they vary from the 29 requirements of this subsection.30 (3) If a city has enacted a program under RCW 36.70A.540, 31 subsection (1) of this section does not preclude the city from 32 requiring any development, including development described in 33 subsection (1) of this section, to provide affordable housing, either 34 on-site or through an in-lieu payment, nor limit the city's ability 35 to expand such a program or modify its requirements.36 (4) A city must allow at least six of the eight types of middle 37 housing to achieve the unit density required in subsection (1) of 38 this section.39 (5) Any city subject to the requirements of this section:40 Code Rev/MFW:roy 10 H-1497.1/23 62 AGENDA ITEM 9.2 (a) May only adopt objective development and design standards on 1 the development of middle housing;2 (b) May only apply administrative design review;3 (c) Except as provided in (a) of this subsection, shall not 4 require through development regulations any standards for middle 5 housing that are more restrictive than those required for detached 6 single-family residences, but may apply any objective development 7 regulations that are required for detached single-family residences, 8 including set-back and tree canopy and retention requirements;9 (d) Shall apply to middle housing the same development permit and 10 environmental review processes that apply to detached single-family 11 residences, unless otherwise required by state law including, but not 12 limited to, shoreline regulations under chapter 90.58 RCW, building 13 codes under chapter 19.27 RCW, energy codes under chapter 19.27A RCW, 14 or electrical codes under chapter 19.28 RCW;15 (e) Shall not require off-street parking as a condition of 16 permitting development of middle housing within one-half mile walking 17 distance of a major transit stop;18 (f) Shall not require more than one off-street parking space per 19 unit as a condition of permitting development of middle housing on 20 lots smaller than 6,000 square feet; and21 (g) Shall not require more than two off-street parking spaces per 22 unit as a condition of permitting development of middle housing on 23 lots greater than 6,000 square feet.24 (6) The provisions of subsection (5)(e) through (g) of this 25 section do not apply:26 (a) If a local government submits to the department an empirical 27 study prepared by a credentialed transportation or land use planning 28 expert that clearly demonstrates, and the department finds and 29 certifies, that the application of the parking limitations of 30 subsection (5)(e) through (g) of this section for middle housing will 31 be significantly less safe for vehicle drivers or passengers, 32 pedestrians, or bicyclists than if the jurisdiction's parking 33 requirements were applied to the same location for the same number of 34 detached houses. The department must develop guidance to assist 35 cities on items to include in the study; or36 (b) To portions of cities within a one-mile radius of a 37 commercial airport in Washington with at least 9,000,000 annual 38 enplanements.39 Code Rev/MFW:roy 11 H-1497.1/23 63 AGENDA ITEM 9.2 (7) The provisions of this section do not apply to lots 1 designated with critical areas or their buffers as designated in RCW 2 36.70A.060.3 (8) Nothing in this section prohibits a city from permitting 4 detached single-family residences.5 (9) A city must comply with the requirements of this section on 6 the latter of:7 (a) Six months after its next periodic comprehensive plan update 8 required under RCW 36.70A.130; or9 (b) 12 months after a determination by the office of financial 10 management that the city has reached a population threshold 11 established under this section.12 NEW SECTION. Sec. 4. A new section is added to chapter 36.70A 13 RCW to read as follows:14 Population associated with permits for middle housing units are 15 exempt from the threshold of an office of financial management 16 population projection to a county or a county population allocation 17 to a city.18 NEW SECTION. Sec. 5. A new section is added to chapter 36.70A 19 RCW to read as follows:20 (1)(a) The department is directed to provide technical assistance 21 to cities as they implement the requirements under section 3 of this 22 act.23 (b) The department shall prioritize such technical assistance to 24 cities demonstrating the greatest need.25 (2)(a) The department shall publish model middle housing 26 ordinances no later than six months following the effective date of 27 this section.28 (b) In any city subject to section 3 of this act that has not 29 passed ordinances, regulations, or other official controls within the 30 time frames provided under section 3(9) of this act, the model 31 ordinance supersedes, preempts, and invalidates local development 32 regulations until the city takes all actions necessary to implement 33 section 3 of this act.34 (3)(a) The department is directed to establish a process by which 35 cities implementing the requirements of section 3 of this act may 36 seek approval of alternative local action necessary to meet the 37 requirements of this act.38 Code Rev/MFW:roy 12 H-1497.1/23 64 AGENDA ITEM 9.2 (b) The department may approve actions under this section for 1 cities that have, by January 1, 2023, adopted a comprehensive plan 2 that is substantially similar to the requirements of this act and, 3 within one year of the effective date of this section, adopts 4 permanent development regulations that are substantially similar to 5 the requirements of this act. In determining whether a city's adopted 6 comprehensive plan and permanent development regulations are 7 substantially similar, the department must find as substantially 8 similar plans and regulations that:9 (i) Result in an overall increase in housing units allowed in 10 single-family zones that is at least 75 percent of the increase in 11 housing units allowed in single-family zones if the specific 12 provisions of this act were adopted;13 (ii) Allow for middle housing throughout the city, rather than 14 just in targeted locations; and15 (iii) Allow for additional density near major transit stops and 16 community amenities, and for projects that incorporate dedicated 17 affordable housing.18 (c) The department may determine that a comprehensive plan and 19 development regulations that do not meet these criteria are otherwise 20 substantially similar to the requirements of this act if the city can 21 clearly demonstrate that the regulations adopted will result in a 22 greater increase in housing production within existing urban areas.23 (d) Any local actions approved by the department pursuant to (a) 24 of this subsection to implement the requirements under section 3 of 25 this act are exempt from appeals under this chapter and chapter 26 43.21C RCW.27 (e) The department's final decision to approve or reject actions 28 by cities implementing section 3 of this act may be appealed to the 29 growth management hearings board by filing a petition as provided in 30 RCW 36.70A.290.31 (4) For the purpose of this section, "single-family zones" means 32 those zones where single-family detached housing is the predominate 33 land use.34 NEW SECTION. Sec. 6. A new section is added to chapter 36.70A 35 RCW to read as follows:36 Any city subject to the requirements of section 3 of this act may 37 apply to the department for, and the department may certify, an 38 extension for areas at risk of displacement as determined by the 39 Code Rev/MFW:roy 13 H-1497.1/23 65 AGENDA ITEM 9.2 antidisplacement analysis that a jurisdiction is required to complete 1 under RCW 36.70A.070(2). The city must create a plan for implementing 2 antidisplacement policies by their next implementation progress 3 report required by RCW 36.70A.130(9).4 Sec. 7. RCW 36.70A.280 and 2011 c 360 s 17 are each amended to 5 read as follows:6 (1) The growth management hearings board shall hear and determine 7 only those petitions alleging either:8 (a) That, except as provided otherwise by this subsection, a 9 state agency, county, or city planning under this chapter is not in 10 compliance with the requirements of this chapter, chapter 90.58 RCW 11 as it relates to the adoption of shoreline master programs or 12 amendments thereto, or chapter 43.21C RCW as it relates to plans, 13 development regulations, or amendments, adopted under RCW 36.70A.040 14 or chapter 90.58 RCW. Nothing in this subsection authorizes the board 15 to hear petitions alleging noncompliance with RCW 36.70A.5801;16 (b) That the twenty-year growth management planning population 17 projections adopted by the office of financial management pursuant to 18 RCW 43.62.035 should be adjusted;19 (c) That the approval of a work plan adopted under RCW 20 36.70A.735(1)(a) is not in compliance with the requirements of the 21 program established under RCW 36.70A.710;22 (d) That regulations adopted under RCW 36.70A.735(1)(b) are not 23 regionally applicable and cannot be adopted, wholly or partially, by 24 another jurisdiction; ((or))25 (e) That a department certification under RCW 36.70A.735(1)(c) is 26 erroneous; or27 (f) That the department's final decision to approve or reject 28 actions by a city implementing section 3 of this act is erroneous.29 (2) A petition may be filed only by: (a) The state, or a county 30 or city that plans under this chapter; (b) a person who has 31 participated orally or in writing before the county or city regarding 32 the matter on which a review is being requested; (c) a person who is 33 certified by the governor within sixty days of filing the request 34 with the board; or (d) a person qualified pursuant to RCW 34.05.530.35 (3) For purposes of this section "person" means any individual, 36 partnership, corporation, association, state agency, governmental 37 subdivision or unit thereof, or public or private organization or 38 entity of any character.39 Code Rev/MFW:roy 14 H-1497.1/23 66 AGENDA ITEM 9.2 (4) To establish participation standing under subsection (2)(b) 1 of this section, a person must show that his or her participation 2 before the county or city was reasonably related to the person's 3 issue as presented to the board.4 (5) When considering a possible adjustment to a growth management 5 planning population projection prepared by the office of financial 6 management, the board shall consider the implications of any such 7 adjustment to the population forecast for the entire state.8 The rationale for any adjustment that is adopted by the board 9 must be documented and filed with the office of financial management 10 within ten working days after adoption.11 If adjusted by the board, a county growth management planning 12 population projection shall only be used for the planning purposes 13 set forth in this chapter and shall be known as the "board adjusted 14 population projection." None of these changes shall affect the 15 official state and county population forecasts prepared by the office 16 of financial management, which shall continue to be used for state 17 budget and planning purposes.18 NEW SECTION. Sec. 8. A new section is added to chapter 36.70A 19 RCW to read as follows:20 (1) Any city subject to the requirements of section 3 of this act 21 may apply to the department for, and the department may certify, an 22 extension of the implementation timelines established under section 23 3(9) of this act.24 (2) An extension certified under this section may be applied only 25 to specific areas where a city can demonstrate that water, sewer, 26 stormwater, or fire protection services lack capacity to accommodate 27 the density required in section 3 of this act, and the city has:28 (a) Included an improvement within its capital facilities plan to 29 increase capacity; or30 (b) Identified which special district is responsible for 31 providing the necessary infrastructure if the infrastructure is 32 provided by a special purpose district.33 (3) An extension granted under this section remains in effect 34 until the earliest of:35 (a) The infrastructure is improved to accommodate the capacity;36 (b) The city completes its next periodic comprehensive plan 37 update under RCW 36.70A.130; or38 Code Rev/MFW:roy 15 H-1497.1/23 67 AGENDA ITEM 9.2 (c) The city submits its implementation progress report to the 1 department as required under RCW 36.70A.130(9).2 (4) A city that has received an extension under this section may 3 reapply for any needed extension with its next periodic comprehensive 4 plan update under RCW 36.70A.130 or its implementation progress 5 report to the department under RCW 36.70A.130(9). The application for 6 an additional extension must include a list of infrastructure 7 improvements necessary to meet the capacity required in section 3 of 8 this act.9 (5) The department may establish by rule any standards or 10 procedures necessary to implement this section.11 (6) The department must provide the legislature with a list of 12 projects identified in a city's capital facilities plan that were the 13 basis for the extension under this section, including planning level 14 estimates. Additionally, the city must contact special purpose 15 districts to identify additional projects associated with extensions 16 under this section.17 (7) A city granted an extension for a specific area must allow 18 development as provided under section 3 of this act if the developer 19 commits to providing the necessary water, sewer, or stormwater 20 infrastructure.21 Sec. 9. RCW 43.21C.495 and 2022 c 246 s 3 are each amended to 22 read as follows:23 (1) Adoption of ordinances, development regulations and 24 amendments to such regulations, and other nonproject actions taken by 25 a city to implement: The actions specified in section 2, chapter 246, 26 Laws of 2022 unless the adoption of such ordinances, development 27 regulations and amendments to such regulations, or other nonproject 28 actions has a probable significant adverse impact on fish habitat; 29 and the increased residential building capacity actions identified in 30 RCW 36.70A.600(1), with the exception of the action specified in RCW 31 36.70A.600(1)(f), are not subject to administrative or judicial 32 appeals under this chapter.33 (2) Amendments to development regulations and other nonproject 34 actions taken by a city to implement the requirements under section 3 35 of this act pursuant to section 5(3)(b) of this act are not subject 36 to administrative or judicial appeals under this chapter.37 Code Rev/MFW:roy 16 H-1497.1/23 68 AGENDA ITEM 9.2 Sec. 10. RCW 43.21C.229 and 2020 c 87 s 1 are each amended to 1 read as follows:2 (1) In order to accommodate infill development and thereby 3 realize the goals and policies of comprehensive plans adopted 4 according to chapter 36.70A RCW, a city or county planning under RCW 5 36.70A.040 is authorized by this section to establish categorical 6 exemptions from the requirements of this chapter. An exemption 7 adopted under this section applies even if it differs from the 8 categorical exemptions adopted by rule of the department under RCW 9 43.21C.110(1)(a). An exemption may be adopted by a city or county 10 under this section if it meets the following criteria:11 (a) It categorically exempts ((government)):12 (i) Government action related to development proposed to fill in 13 an urban growth area, designated according to RCW 36.70A.110, where 14 current density and intensity of use in the area is roughly equal to 15 or lower than called for in the goals and policies of the applicable 16 comprehensive plan and the development is either:17 (((i))) (A) Residential development;18 (((ii))) (B) Mixed-use development; or19 (((iii))) (C) Commercial development up to sixty-five thousand 20 square feet, excluding retail development; or21 (ii) Government action to amend development regulations to remove 22 requirements for parking from development proposed to fill in an 23 urban growth area designated according to RCW 36.70A.110.24 (b) It does not exempt government action related to development 25 that is inconsistent with the applicable comprehensive plan or would 26 clearly exceed the density or intensity of use called for in the 27 goals and policies of the applicable comprehensive plan;28 (c) The local government considers the specific probable adverse 29 environmental impacts of the proposed action and determines that 30 these specific impacts are adequately addressed by the development 31 regulations or other applicable requirements of the comprehensive 32 plan, subarea plan element of the comprehensive plan, planned action 33 ordinance, or other local, state, or federal rules or laws; and34 (d)(i) The city or county's applicable comprehensive plan was 35 previously subjected to environmental analysis through an 36 environmental impact statement under the requirements of this chapter 37 prior to adoption; or38 Code Rev/MFW:roy 17 H-1497.1/23 69 AGENDA ITEM 9.2 (ii) The city or county has prepared an environmental impact 1 statement that considers the proposed use or density and intensity of 2 use in the area proposed for an exemption under this section.3 (2) Any categorical exemption adopted by a city or county under 4 this section shall be subject to the rules of the department adopted 5 according to RCW 43.21C.110(1)(a) that provide exceptions to the use 6 of categorical exemptions adopted by the department.7 NEW SECTION. Sec. 11. A new section is added to chapter 36.70A 8 RCW to read as follows:9 A city that adopts development regulations that are consistent 10 with and implement this act and RCW 35A.21.430 or 35.21.683 shall be 11 deemed in compliance with the requirements of RCW 36.70A.070(2)(d) 12 until June 30, 2032.13 NEW SECTION. Sec. 12. A new section is added to chapter 64.34 14 RCW to read as follows:15 A declaration created after the effective date of this section 16 and applicable to an area within a city subject to the middle housing 17 requirements in section 3 of this act may not actively or effectively 18 prohibit the construction, development, or use of additional housing 19 units as required in section 3 of this act.20 NEW SECTION. Sec. 13. A new section is added to chapter 64.32 21 RCW to read as follows:22 A declaration created after the effective date of this section 23 and applicable to an association of apartment owners located within 24 an area of a city subject to the middle housing requirements in 25 section 3 of this act may not actively or effectively prohibit the 26 construction, development, or use of additional housing units as 27 required in section 3 of this act.28 NEW SECTION. Sec. 14. A new section is added to chapter 64.38 29 RCW to read as follows:30 Governing documents of associations within cities subject to the 31 middle housing requirements in section 3 of this act that are created 32 after the effective date of this section may not actively or 33 effectively prohibit the construction, development, or use of 34 additional housing units as required in section 3 of this act.35 Code Rev/MFW:roy 18 H-1497.1/23 70 AGENDA ITEM 9.2 NEW SECTION. Sec. 15. A new section is added to chapter 64.90 1 RCW to read as follows:2 Declarations and governing documents of a common interest 3 community within cities subject to the middle housing requirements in 4 section 3 of this act that are created after the effective date of 5 this section may not actively or effectively prohibit the 6 construction, development, or use of additional housing units as 7 required in section 3 of this act.8 NEW SECTION. Sec. 16. A new section is added to chapter 64.90 9 RCW to read as follows:10 The department of commerce may establish by rule any standards or 11 procedures necessary to implement this act.12 --- END --- Code Rev/MFW:roy 19 H-1497.1/23 71 AGENDA ITEM 9.2