New state law incentivizes increased residential building capacity and density

A new law encourages all cities to take actions to increase residential building capacity, especially in areas served by existing infrastructure.

Passed in the 2019 legislative session, HB 1923 provides temporary incentives in the form of financial support and appeal protection for jurisdictions over 20,000 in population that adopt two or more identified policies to support residential building capacity and density. Cities that adopt two or more of the policies detailed below are eligible to apply to the Department of Commerce for up to $100,000 grants to support their adoption. Additionally, the action to adopt the policies is not subject to appeal under the State Environmental Policy Act (SEPA) or the Growth Management Act (GMA).

These incentives expire April 1, 2021 – the Legislature’s goal was to spur early action on the housing crisis.

Where these policies make sense, cities should take advantage of this unique opportunity. The appeal protection presents the ability to know that after your city goes through the normal robust public process and arrives at a conclusion with potentially difficult votes, you will know that your city is safe from legal appeal. The addition of financial support makes this tool worthy of strong consideration.

Eligible activities

Four options for allowing greater density:

1. Increasing residential density in one or more areas near commuter or light rail stations to 50 dwelling units per acre, within an area of at least 500 acres in size that has at least one train station.*
2. For cities greater than 40,000 population: authorizing twenty-five dwelling units per acre within an area of at least five hundred acres that includes at least one bus stop served by bus service at least four times per hour for twelve or more hours.*
3. For cities less than 40,000 population: authorizing twenty-five dwelling units per acre within an area of at least two hundred and fifty acres that includes at least one bus stop served by bus service at least four times per hour for twelve or more hours.*
4. Authorize a minimum net density of six dwelling units per acre in all residential zones (this action must result in an increase in capacity to be eligible).

* In all three of these options, a city cannot require more than an average of one on-site parking space per two bedrooms in the portions of multifamily zones that lie within this area.

Two methods for promoting specific types of missing middle housing (non-ADU):

1. Authorize at least one duplex, triplex, or courtyard apartment on all parcels in one or more zoning district that permits single family residences unless the city documents a specific infrastructure or physical constraint that would make this unfeasible for a specific parcel.
2. Authorize a duplex on every corner lot within all zoning districts that permit single-family residences.

A very specific set of Accessory Dwelling Unit (ADU) policies:

• Authorize attached ADUs on all parcels with single-family homes where the lot is at least 3,200 sq. ft; and
• Allow attached and detached on all parcels containing single-family homes where the lot is at least 4,356 sq. ft; and
• Ordinances must not require on-site parking, owner occupancy requirements, or square footage limitations below 1,000 sq. ft for the ADU; and
• Must not prohibit the separate rental or sale of ADU and primary home; and
• Impact fees cannot be more than the projected impact of the unit.

Other than these factors, ADUs may be subject to such regulations, conditions, procedures and limitations as determined by the city.

Six permit or development streamlining related actions:

1. Authorize cluster zoning or lot size averaging in all zoning districts that permit single family residences.
2. Adopt a ‘transit oriented’ subarea plan under RCW 43.21C.420. Preexisting authority that provides SEPA appeal protections to qualifying projects near transit stations.
3. Adopt a planned action in an area containing residential or mixed-use development that is within one half mile of a transit stop or a proposed transit stop that will be built within five years. No environmental impact statement is required.
4. Adopt increases in SEPA categorical exemptions for residential or mixed-use development using the SEPA “infill” authority in RCW 43.21C.229. This authority allows a city to increase categorical exemptions to a virtually unlimited degree where current density and intensity of use is lower than called for in the comprehensive plan. There are several requirements to use this tool, but it is very powerful.
5. Adopt a form-based code or a code based on physical form rather than separation of uses.
6. Adopt the maximum authorized level for the division or redivision of land through the short subdivision process.

Resources

Department of Commerce

Depending on level of interest and available funds, grant support may also be provided to smaller cities. Check with the Department of Commerce.