Six Housing and Planning Bills that Help Washington Communities Confront the Housing Crisis

This blog includes summaries of six bills related to co-living, parking standards, building conversions, middle housing, residential building and energy codes, and manufactured housing  passed during the most recent short Washington State legislative session. The effective date for these bills was June 6, 2024, unless otherwise noted.

ESHB 1998: Co-Living                                    

From the outside, co-living buildings (also referred to as single-room occupancy, congregate living facilities, boarding houses, and more) often appear as standard multi-family residences, but the sleeping units are usually smaller, and common spaces, like kitchens, are shared with other residents. This type of housing is more affordable and plays an important role in serving singles, young adults, and older adults due to their convenient locations, opportunities for socializing, and low maintenance needs.

Recognizing that development regulations can impact the ability to develop more of these units and more affordably, ESHB 1998 requires fully planning cities and counties to revise their codes to allow this housing option under certain circumstances by December 31, 2025:

• Must allow co-living in areas that allow multifamily housing with six or more units per lot on land inside urban growth areas; 
• Can’t require room dimension standards larger than what’s required by the state building code;
• May not treat a sleeping unit as more than ¼ of a dwelling unit for density purposes;
• Can’t require parking within a ½-mile of a major transit stop or provide more than .25 spaces per sleeping unit, with exceptions;
• Must reduce sewer connection fees per sleeping unit to half of what’s charged for a standard dwelling unit; 
• Can’t require standards more restrictive than those required for other multi-family buildings in the same zone;
• Can’t exclude co-living from affordable housing incentive programs; and
• Other standards as outlined in the bill.

See MRSC’s Types of Affordable Housing page for examples of co-living codes.

SB 6015: Parking Standards

Most cities are overparked, meaning they have more parking spaces than people. Excessive surface and structured parking impacts nearly all aspects of community life, from walkability to housing availability and affordability. Costs to build parking for residential development are usually passed along to tenants and homeowners.

Overparking has broad implications for a community’s growth and development goals, too. Areas occupied by surface parking lots and garages could be filled with housing, businesses, and greenspace that not only provide places for people to live, work, and play, but also result in compact, walkable, mixed-use development and less sprawl into rural areas.

Recognizing the many benefits of parking deregulation, the legislature passed SB 6015, the state’s first standalone parking bill, which provides flexibility for parking configurations through these requirements:

• Garages and carports can’t be required as a way to meet minimum parking requirements for residential development;
• Parking spaces that count towards minimum parking requirements may be enclosed or unenclosed;
• Parking spaces in tandem count toward meeting minimum parking requirements at a rate of one space for every 20 feet, with room for turning if needed;
• The existence of non-conforming gravel parking areas may not be a reason for prohibiting the use of these spaces to meet local parking standards;
• Parking spaces may not be required to exceed 8 feet by 20 feet, except for required parking for people with disabilities; and
• Parking spaces that consist of grass block pavers may count toward meeting minimum parking requirements.

For local examples and more resources, see MRSC’s new Parking Regulations page.

E2SSB 6175: Building Conversions

With the pandemic came a stark shift in how and where employees work, resulting in higher vacancy rates for office and commercial spaces, including those on ground floors in downtown districts. To keep these spaces full and increase the vibrancy of street life, cities are allowing more creative ground-floor uses, like small-scale manufacturing, public spaces, and housing.

To encourage these conversions for affordable housing, E2SSB 6175 allows cities to establish by resolution a retail sales and use tax deferral program for the conversion of commercial buildings to provide affordable housing, under certain conditions. To receive a deferral under the new law:

• The project must be set aside primarily for multifamily housing units with at least 10% affordable to low-income households;
• The legislative authority must find that there are significant areas of underutilized commercial property and a lack of affordable housing in areas proximate to the land; and
• The applicant must commit to any additional affordability and income eligibility conditions adopted by the local government.

If a project maintains those qualifications for at least 10 years, the sales and use taxes don’t need to be repaid. 

ESHB 2321: Middle Housing Clarifications

2023’s HB 1110 was adopted to require more housing options, like duplexes and townhomes, across the state. Often referred to as “middle housing,” these housing types comprise a range of house-scale buildings with multiple units that are compatible in scale and form with detached single-family homes. Middle housing forms include duplexes, triplexes, fourplexes, fiveplexes, sixplexes, courtyards apartments, cottage housing, and townhomes.

ESHB 2321 builds on last year’s bill and clarifies several requirements for middle housing and minimum residential density, including the definition of “major transit stop”; which cities must provide a certain number of middle housing types; and exemptions for critical areas, lots created through lot splits, and areas on islands designated as sole source aquifers. See updated guidance on Commerce’s Middle Housing page and code examples on MRSC’s Missing Middle Housing page.

2SHB 2071: Residential Building and Energy Codes

2SHB 2071 sets in motion a process to modify state residential building codes so that they apply to middle housing projects with up to six units. As a first step, it directs the State Building Code Council to convene two advisory groups: one to recommend changes needed to apply the residential code to multiplex housing and another to recommend changes needed to allow smaller dwelling units under the building code.

It also requires the Office of Regulatory and Innovation Assistance to contract for the development of an optional standard energy code plan set that meets or exceeds all energy code regulations for residential housing. Like ESHB 2321, this bill builds on 2023’s HB 1110 and is meant to reduce barriers, including costs, for middle housing. 

SSB 6059: Manufactured Housing Communities (MHCs)

Manufactured houses are factory-built dwellings that are later placed on permanent foundations. Because these houses are factory built, as opposed to site built, they are typically more affordable.

Acknowledging the importance of manufactured housing communities (MHCs) to the state’s supply of affordable housing, SB 6059 includes these changes:

• Revises requirements for notices of opportunity to compete to purchase an MHC by requiring the date the notice was mailed by certified mail or personal delivery to recipients. If the tenants choose to compete to purchase the MHC, they must notify the landlord in writing within 70 days after the certified mailing or personal delivery date. Within 20 days of the tenants notifying the landlord of their interest in purchasing the MHC, the qualified tenant organization (QTO) and the landlord may make written requests for information. Landlords must inform any QTO, eligible organizations, and competing potential buyers participating in negotiations upon receipt if a preferred offer is submitted.
• Modifies notice of closure requirements for MHCs. The closure notice must indicate that the closure is effective two years after the notice is issued. If a landlord provides relocation assistance, a written notice indicating that the tenant has 12 or 18 months to vacate must include contact information for Commerce and identify financial and technical assistance programs that support eligible tenant relocation efforts.
• Allows tenants who receive relocation assistance from outside sources to receive the maximum amount of assistance under the state’s Mobile Home Relocation Assistance Program.

See MRSC’s Manufactured Housing Regulation and Preservation page for local code examples and other resources.

Using 2024 Housing Bills to Confront the Housing Crisis

While this post doesn’t cover all the housing and planning related bills from the 2024 short session, including HB 2375 (extends senior and disabled persons property tax exemption for accessory dwelling units) and HB 1890 (allows cities that have created housing authorities to form a joint housing authority without county authorization), it includes some key bills that were passed in response to the state’s housing crisis. I encourage you to confer with your local government’s attorney to review these new bills in detail and to ascertain their applicability to your community.