wa-law.org > bill > 2023-24 > HB 2160 > Substitute Bill
The legislature finds that the state has made groundbreaking investments in state-of-the-art mass transit and intermodal infrastructure. The legislature finds that to maximize the state's return on these investments, land use policies and practices must allow housing development to keep pace with progress being implemented in transportation infrastructure development. The legislature also intends new development to reflect the state's commitment to affordable housing and vibrant, walkable, accessible urban environments that improve health, expand multimodal transportation options, and include varied community facilities, parks, and green spaces that are open to people of all income levels.
The legislature recognizes that cities planning under chapter 36.70A RCW require direction and technical assistance to ensure the benefits of state transportation investments are maximized and shared equitably while avoiding unnecessary programmatic and cost burdens to local governments in their comprehensive planning, code enactment, and permit processing workloads. The legislature further recognizes that regulatory flexibility and local control are also important features of optimal planning outcomes.
The department must create a new division within its agency or expand an existing division within its agency and designate a liaison to serve as a point of contact and resource for the department, local governments, and project proponents regarding land use decisions and processing development permit applications. The liaison's priority must be to facilitate and expedite any department decisions required for project approval.
The department must adopt any rules necessary to implement this section.
Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
Cities planning under RCW 36.70A.040 may not enact or enforce any development regulation within a station area that would prohibit the siting of multifamily residential housing on lots where any other residential use is permissible.
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Cities planning under RCW 36.70A.040 must allow new residential and mixed-use development within any station area at the transit-oriented development density of:
At least 3.5 floor area ratio, on average, within one-half mile walking distance of an entrance to a train station with a stop on a light rail system, a commuter rail stop, or a stop on rail or fixed guideway systems; and
At least 2.5 floor area ratio, on average, within one-quarter mile walking distance of a stop on a fixed route bus system that is funded in part or in full by the United States department of transportation funding for bus rapid transit and features fixed transit assets that indicate permanent, high capacity service including, but not limited to, elevated platforms or enhanced stations, off-board fare collection, dedicated lanes, busways, or traffic signal priority.
A city planning under RCW 36.70A.040 may adopt a modification to a station area designation, but only after consultation with and approval by the department.
Cities planning under RCW 36.70A.040 may not enact or enforce any development regulation that imposes:
A maximum floor area ratio of less than the transit-oriented development density in this subsection for any residential or mixed-use development within a station area; or
A maximum residential density, measured in residential units per acre or other metric of land area within a station area.
For the purposes of this section:
"Mixed-use development" means a building with more than 50 percent of the gross floor area dedicated to residential uses.
"Stop" includes any existing stop and any stop funded for development and projected for construction within an applicable six-year transit plan under RCW 35.58.2795. "Stop" does not include a stop used exclusively for bus service, including express bus service operated by a regional transit agency as defined under chapter 81.104 RCW and trolley buses, unless the stop also serves a fixed route bus system that is funded in part or in full by the United States department of transportation funding for bus rapid transit and features fixed transit assets that indicate permanent, high capacity service including, but not limited to, elevated platforms or enhanced stations, off-board fare collection, dedicated lanes, busways, or traffic signal priority.
The department must develop guidance to convert different types of planning measurements to the transit-oriented development density requirements and applicable floor area ratios.
Within any station area, any building in which all units are affordable housing for at least 50 years or are dedicated to permanent supportive housing, an additional 1.5 floor area ratio in excess of the transit-oriented development density required under subsection (2)(a) of this section must be permitted. If a city has enacted or expands a program under RCW 36.70A.540 in an area where development regulations must comply with this section, that program, including the amount of affordable housing required either on-site or through an in-lieu payment, governs to the extent it varies from the requirements of this subsection.
Any floor area within a building located in a station area that is reserved for residential units in multifamily housing that includes at least three bedrooms must not be counted toward applicable floor area ratio limits. A city may require the residential units to comply with affordability requirements to be eligible for an exclusion from the applicable floor area ratio limits.
Cities planning under RCW 36.70A.040 may by ordinance designate parts of a station area in which to enact or enforce floor area ratios for residential or mixed-use development that are more or less than the applicable transit-oriented development density, if the average maximum floor area ratio of all residential and mixed-use areas within a station area is no less than the applicable transit-oriented development density.
At least 10 percent of all residential units in buildings constructed within a station area must be maintained as affordable housing for at least 50 years, unless:
The building is constructed on a lot in which a density that meets or exceeds the transit-oriented development density in subsection (2) of this section was authorized prior to January 1, 2024;
The building is subject to affordability requirements with a lower income threshold or a greater amount of required affordable housing that were enacted by a city prior to January 1, 2024; or
A city has enacted or expands a mandatory program under RCW 36.70A.540 that requires a minimum amount of affordable housing that must be provided by residential development, either on-site or through an in-lieu payment as allowed by RCW 36.70A.540, in an area where development regulations must comply with this section. Such mandatory program may be enacted, modified, or expanded by a city in coordination with adopting regulations to comply with this act, and may require an amount of affordable housing that differs or exceeds the amount required. An optional program established under RCW 36.70A.540 does not meet the requirements of this subsection (8)(c).
A city that has enacted an incentive program prior to January 1, 2024, that requires public benefits, such as school capacity, greater amounts of affordable housing, green space, or green infrastructure, in return for additional height or floor area ratio, may continue to require such public benefits if complying with the requirements of this section provides additional development capacity that would have triggered the public benefits requirements.
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No later than the deadlines established in subsection (16) of this section, cities planning under RCW 36.70A.040 must act to modify or repeal any existing development regulations applicable in a station area that, alone or in combination, are inconsistent with this section, and may not enact any development regulations applicable in a station area that, alone or in combination with other development regulations, are inconsistent with this section.
This subsection (10) does not apply to development regulations that are generally applicable health and safety standards, including building code standards and fire and life safety standards.
Any city subject to the requirements of this section may apply to the department for planning grants and consult with the department for purposes of obtaining technical assistance and compliance review with development regulation adoption, pursuant to RCW 36.70A.500(7).
Nothing in this section requires alteration, displacement, or limitation of industrial or agricultural uses or industrial, manufacturing, or agricultural areas within the urban growth area.
Nothing in this section requires a city to issue a building permit if other federal, state, and local requirements for a building permit are not met.
Cities planning under RCW 36.70A.040 may exclude from the requirements in this section any portion of a lot that is designated as a shoreline environment governed by a shoreline master program or as a critical area governed by a critical area ordinance, except for critical aquifer recharge areas where a single-family detached house is an allowed use provided that any requirements to maintain aquifer recharge are met, and any lot that:
Is nonconforming with development regulations governing lot dimensions including, but not limited to, standards related to lot width, area, geometry, or street access, unless an applicant demonstrates that the nonconforming lot may be developed in compliance with the development regulations governing lot dimensions by obtaining any modification, deviation, variance, or similar code departure approval allowed under the development regulations;
Contains a designated landmark or is located within a historic district established under a local preservation ordinance adopted prior to the effective date of this section;
Has been designated as containing urban separators by countywide planning policies as of the effective date of this section; or
Is an industrial, manufacturing, or agricultural designated lot that either is limited to one dwelling unit per lot or only allows housing for individuals and their families responsible for caretaking, farm work, security, or maintenance.
For cities subject to a growth target adopted under RCW 36.70A.210 that limits the maximum residential capacity of the jurisdiction, any additional residential capacity required by this section may not be considered an inconsistency with the countywide planning policies, multicounty planning policies, or growth targets adopted under RCW 36.70A.210.
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Any city that is required to review its comprehensive plan by December 31, 2024, as specified in RCW 36.70A.130(5)(a), must comply with the requirements of this section by the earlier of December 31, 2029, or its first implementation progress report due after December 31, 2024, as specified in RCW 36.70A.130(9), and thereafter at each comprehensive plan update or implementation progress report following the completion or funding of any transit stop that would create a new station area within the jurisdiction.
Any city that is required to review its comprehensive plan after December 31, 2024, as specified in RCW 36.70A.130(5) (b), (c), or (d), must comply with the requirements of this section no later than six months after its first comprehensive plan update due after December 31, 2024, and thereafter at each comprehensive plan update or implementation progress report following the completion or funding of any transit stop that would create a new station area within the jurisdiction.
A federally recognized Indian tribe may voluntarily choose to participate in the planning process to implement the requirements of this section in accordance with RCW 36.70A.040(8).
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The department must publish a model transit-oriented development ordinance no later than six months following the effective date of this section.
In any city subject to this section that has not passed ordinances, regulations, or other official controls by the deadlines required under subsection (16) of this section, the model ordinance supersedes, preempts, and invalidates local development regulations until the city takes all actions necessary to implement this section.
A city may seek an extension from the transit-oriented development density requirements of this section by applying to the department for an extension in any areas that are at high risk of displacement based on a city's antidisplacement analysis or an antidisplacement map. The department must review the city's analysis and certify a five-year extension from the requirements of this section for areas at high risk of displacement. The city must create an implementation plan that identifies the antidisplacement policies available to residents to mitigate displacement risk. During the extension, the city may delay implementation or enact alternative floor area ratio requirements within any areas at high risk of displacement. The department may recertify an extension for additional five-year periods based on evidence of ongoing displacement risk in the area.
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(A) The regulations will provide a development capacity and allow the opportunity for creation of affordable housing that is at least equivalent to the amount of development capacity and affordable housing that would be allowed in that station area if the specific provisions of this section were adopted;
(B) The jurisdiction offers a way to achieve buildings that exceed 85 feet in height; and
(C) No lot within the station area is zoned exclusively for detached single-family residences.
ii. The department must establish by rule any standards or procedures necessary to implement (a) of this subsection.
b. Any local actions approved by the department pursuant to (a) of this subsection are exempt from appeals under this chapter and chapter 43.21C RCW.
c. The department's final decision to approve or reject actions by cities under this subsection (19) may be appealed to the growth management hearings board by filing a petition as provided in RCW 36.70A.290.
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(A) Representatives of impacted cities, including at least one representative of a city that does not have extensive staffing or resources;
(B) A representative of impacted tenants;
(C) A representative of ethnic or cultural associations;
(D) A representative of an organization advocating for affordable housing;
(E) A representative of an association representing tenants;
(F) A representative with experience developing affordable housing;
(G) A representative of an organization advocating for nonprofit builders of affordable housing;
(H) A representative from a development industry association; and
(I) Other representatives with experience developing or implementing antidisplacement strategies.
ii. The work group must:
(A) Develop definitions for displacement and gentrification;
(B) Develop a list of recommended antidisplacement strategies, including strategies that mitigate the impacts of displacement and protect against gentrification; and
(C) Identify the potential costs and funding sources to implement the strategies.
iii. By September 30, 2025, the work group must submit a report of its findings and recommendations to the department.
b. No later than October 15, 2025, the department shall develop, and make available to cities, antidisplacement guiding principles and a list of potential strategies.
Subject to appropriation, the department must establish and administer a capital grant program to assist cities in providing the infrastructure necessary to accommodate development at transit-oriented development densities within station areas, including water, sewer, stormwater, and transportation infrastructure and parks and recreation facilities.
The joint committee shall review jurisdictions' experiences with:
The effects of the 10 percent affordable housing requirement under section 4 of this act;
In-lieu payment options for affordable housing requirements, including how such payments were structured and the amount of housing created using in-lieu payments; and
Requirements for transit-oriented development density around fixed route transit stops providing frequent bus service.
In evaluating the impacts under this section, the joint committee must conduct case studies that consider the following factors:
The effects on housing supply, including the supply of affordable housing;
The implementation of transit-oriented development density regulations; and
How statewide transit-oriented development density regulations are interacting with residential housing construction and development in specific cities, including at least one city located east of the crest of the Cascade mountains, at least one city located in a county with a population greater than 900,000 but less than 1,000,000, and at least one city located in a county with a population greater than 800,000 but less than 900,000.
In conducting its evaluation, the joint committee must consult with the following entities:
Representatives of the department of commerce;
Representatives of the Washington state housing finance commission;
Representatives of the University of Washington's Runstad department of real estate;
Representatives of regional transportation planning organizations that include cities with station areas;
Representatives of transit agencies serving areas that include cities with station areas;
Representatives of affordable housing advocacy organizations working in cities with station areas;
Representatives of the for-profit housing development industry working in cities with station areas;
Representatives of the nonprofit housing development industry working in cities with station areas;
Representatives of cities located west of the crest of the Cascade mountains.
The joint committee must complete the review and evaluation required under this section by June 30, 2035.
The department of commerce shall provide management services for the growth management planning and environmental review fund created by RCW 36.70A.490. The department shall establish procedures for fund management. The department shall encourage participation in the grant or loan program by other public agencies. The department shall develop the grant or loan criteria, monitor the grant or loan program, and select grant or loan recipients in consultation with state agencies participating in the grant or loan program through the provision of grant or loan funds or technical assistance.
A grant or loan may be awarded to a county or city that is required to or has chosen to plan under RCW 36.70A.040 and that is qualified pursuant to this section. The grant or loan shall be provided to assist a county or city in paying for the cost of preparing an environmental analysis under chapter 43.21C RCW, that is integrated with a comprehensive plan, subarea plan, plan element, countywide planning policy, development regulation, monitoring program, or other planning activity adopted under or implementing this chapter that:
Improves the process for project permit review while maintaining environmental quality; or
Encourages use of plans and information developed for purposes of complying with this chapter to satisfy requirements of other state programs.
In order to qualify for a grant or loan, a county or city shall:
Demonstrate that it will prepare an environmental analysis pursuant to chapter 43.21C RCW and subsection (2) of this section that is integrated with a comprehensive plan, subarea plan, plan element, countywide planning policy, development regulations, monitoring program, or other planning activity adopted under or implementing this chapter;
Address environmental impacts and consequences, alternatives, and mitigation measures in sufficient detail to allow the analysis to be adopted in whole or in part by applicants for development permits within the geographic area analyzed in the plan;
Demonstrate that procedures for review of development permit applications will be based on the integrated plans and environmental analysis;
Include mechanisms to monitor the consequences of growth as it occurs in the plan area and to use the resulting data to update the plan, policy, or implementing mechanisms and associated environmental analysis;
Demonstrate substantial progress towards compliance with the requirements of this chapter. A county or city that is more than six months out of compliance with a requirement of this chapter is deemed not to be making substantial progress towards compliance; and
Provide local funding, which may include financial participation by the private sector.
In awarding grants or loans, the department shall give preference to proposals that include one or more of the following elements:
Financial participation by the private sector, or a public/private partnering approach;
Identification and monitoring of system capacities for elements of the built environment, and to the extent appropriate, of the natural environment;
Coordination with state, federal, and tribal governments in project review;
Furtherance of important state objectives related to economic development, protection of areas of statewide significance, and siting of essential public facilities;
Programs to improve the efficiency and effectiveness of the permitting process by greater reliance on integrated plans and prospective environmental analysis;
Programs for effective citizen and neighborhood involvement that contribute to greater likelihood that planning decisions can be implemented with community support;
Programs to identify environmental impacts and establish mitigation measures that provide effective means to satisfy concurrency requirements and establish project consistency with the plans;
Environmental review that addresses the impacts of increased density or intensity of comprehensive plans, subarea plans, or receiving areas designated by a city or town under the regional transfer of development rights program in chapter 43.362 RCW;
Plans that address infrastructure needs in station areas.
If the local funding includes funding provided by other state functional planning programs, including open space planning and watershed or basin planning, the functional plan shall be integrated into and be consistent with the comprehensive plan.
State agencies shall work with grant or loan recipients to facilitate state and local project review processes that will implement the projects receiving grants or loans under this section.
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Subject to the availability of amounts appropriated to the growth management planning and environmental review fund established in RCW 36.70A.490, the department may:
Award grants to cities to facilitate transit-oriented development consistent with subsection (8) of this section. Cities may use such grants to pay for the costs associated with the preparation of state environmental policy act environmental impact statements, planned action ordinances, subarea plans, costs associated with the utilization of other tools under this chapter or the state environmental policy act, and the costs of local code adoption and implementation of such efforts; and
Provide technical assistance and award planning grants to cities to implement the requirements under section 4 of this act and provide compliance review of any transit-oriented development regulations adopted consistent with section 4 of this act.
Grant awards under (a)(i) of this subsection may only fund efforts that address environmental impacts and consequences, alternatives, and mitigation measures in sufficient detail to allow the analysis to be adopted in whole or in part by applicants for development permits within the geographic area analyzed in the plan.
In consultation with the department of transportation, the department shall prioritize applications for grants under subsection (7)(a)(i) of this section that maximize the following policy principles in the area covered by a proposal:
The total number of housing units authorized for new development in station areas;
The proximity and quality of transit access in the area. For purposes of this subsection, "transit access" includes walkable access to light rail, other fixed guideway rail systems, and fixed route bus systems that are funded in part or in full by the United States department of transportation funding for bus rapid transit and feature fixed transit assets that indicate permanent, high capacity service including, but not limited to, elevated platforms or enhanced stations, off-board fare collection, dedicated lanes, busways, or traffic signal priority;
Plans that exceed applicable transit-oriented development densities for station areas;
Plans that authorize, but do not mandate, ground floor retail with housing above;
Plans in areas that eliminate on-site parking requirements;
Existence or establishment of incentive zoning, inclusionary housing, or other tools to promote low-income housing in the area;
Plans that include dedicated policies to support public or
nonprofit funded low-income or workforce housing; and
h. Plans designed to maximize and increase the variety of allowable housing types and expected sale or rental rates.
To encourage transit-oriented development and transit use and resulting substantial environmental benefits, cities planning under RCW 36.70A.040 may not require off-street automobile parking as a condition of permitting residential or mixed-use development within a station area as defined in RCW 36.70A.030, except for off-street automobile parking that is permanently marked for the exclusive use of individuals with disabilities or parking that is permanently marked for the short-term exclusive use of delivery vehicles.
If a project permit application within a station area, as defined in RCW 36.70B.020, does not provide parking in compliance with this section, the proposed absence of parking may not be treated as a basis for issuance of a determination of significance pursuant to chapter 43.21C RCW.
The parking provisions of this section do not apply:
If a local government submits to the department an empirical study prepared by a credentialed transportation or land use planning expert that clearly demonstrates, and the department finds and certifies, that the application of the parking limitations under subsection (1) of this section will be significantly less safe for automobile drivers or passengers, pedestrians, or bicyclists than if the jurisdiction's parking requirements were applied to the same location. The department must develop guidance to assist cities and counties on items to include in the study; or
To portions of cities within a one-mile radius of a commercial airport in Washington with at least 9,000,000 annual enplanements.
If a residential or mixed-use development provides parking for residential uses in excess of what is required in subsection (1) of this section, cities planning under RCW 36.70A.040 may enact or enforce development regulations to:
Require a share of any provided residential parking to be distributed between units designated as affordable housing and units offered at market rate; and
Include all or a portion of the cost of unbundled parking charges into the monthly cost for rental units designated as affordable housing.
The purpose of this section is to accommodate infill and housing development and thereby realize the goals and policies of comprehensive plans adopted according to chapter 36.70A RCW.
A city or county planning under RCW 36.70A.040 is authorized by this section to establish categorical exemptions from the requirements of this chapter. An exemption may be adopted by a city or county under this subsection if it meets the following criteria:
It categorically exempts government action related to development proposed to fill in an urban growth area, designated according to RCW 36.70A.110, where current density and intensity of use in the area is roughly equal to or lower than called for in the goals and policies of the applicable comprehensive plan and the development is either:
Residential development;
Mixed-use development; or
Commercial development up to 65,000 square feet, excluding retail development;
It does not exempt government action related to development that is inconsistent with the applicable comprehensive plan or would clearly exceed the density or intensity of use called for in the goals and policies of the applicable comprehensive plan;
The local government considers the specific probable adverse environmental impacts of the proposed action and determines that these specific impacts are adequately addressed by the development regulations or other applicable requirements of the comprehensive plan, subarea plan element of the comprehensive plan, planned action ordinance, or other local, state, or federal rules or laws; and
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The city or county's applicable comprehensive plan was previously subjected to environmental analysis through an environmental impact statement under the requirements of this chapter prior to adoption; or
The city or county has prepared an environmental impact statement that considers the proposed use or density and intensity of use in the area proposed for an exemption under this section.
All project actions that propose to develop one or more residential housing units within the incorporated areas in an urban growth area designated pursuant to RCW 36.70A.110 or middle housing within the unincorporated areas in an urban growth area designated pursuant to RCW 36.70A.110, and that meet the criteria identified in (a) and (b) of this subsection, are categorically exempt from the requirements of this chapter. For purposes of this section, "middle housing" has the same meaning as in RCW 36.70A.030 as amended by chapter 332, Laws of 2023. Jurisdictions shall satisfy the following criteria prior to the adoption of the categorical exemption under this subsection (3):
The city or county shall find that the proposed development is consistent with all development regulations implementing an applicable comprehensive plan adopted according to chapter 36.70A RCW by the jurisdiction in which the development is proposed, with the exception of any development regulation that is inconsistent with applicable provisions of chapter 36.70A RCW; and
The city or county has prepared environmental analysis that considers the proposed use or density and intensity of use in the area proposed for an exemption under this section and analyzes multimodal transportation impacts, including impacts to neighboring jurisdictions, transit facilities, and the state transportation system.
Such environmental analysis shall include documentation that the requirements for environmental analysis, protection, and mitigation for impacts to elements of the environment have been adequately addressed for the development exempted. The requirements may be addressed in locally adopted comprehensive plans, subarea plans, adopted development regulations, other applicable local ordinances and regulations, or applicable state and federal regulations. The city or county must document its consultation with the department of transportation on impacts to state-owned transportation facilities including consideration of whether mitigation is necessary for impacts to transportation facilities.
Before finalizing the environmental analysis pursuant to (b)(i) of this subsection (3), the city or county shall provide a minimum of 60 days' notice to affected tribes, relevant state agencies, other jurisdictions that may be impacted, and the public. If a city or county identifies that mitigation measures are necessary to address specific probable adverse impacts, the city or county must address those impacts by requiring mitigation identified in the environmental analysis pursuant to this subsection (3)(b) through locally adopted comprehensive plans, subarea plans, development regulations, or other applicable local ordinances and regulations. Mitigation measures shall be detailed in an associated environmental determination.
The categorical exemption is effective 30 days following action by a city or county pursuant to (b)(ii) of this subsection (3).
Until September 30, 2025, all project actions that propose to develop one or more residential housing or middle housing units within a city west of the crest of the Cascade mountains with a population of 700,000 or more are categorically exempt from the requirements of this chapter. After September 30, 2025, project actions that propose to develop one or more residential housing or middle housing units within the city may utilize the categorical exemption in subsection (3) of this section.
All project actions that propose to develop residential or mixed-use development within a station area are categorically exempt from the requirements of this chapter.
Any categorical exemption adopted by a city or county under this section applies even if it differs from the categorical exemptions adopted by rule of the department under RCW 43.21C.110(1)(a). Nothing in this section shall invalidate categorical exemptions or environmental review procedures adopted by a city or county under a planned action pursuant to RCW 43.21C.440. However, any categorical exemption adopted by a city or county under this section shall be subject to the rules of the department adopted according to RCW 43.21C.110(1)(a) that provide exceptions to the use of categorical exemptions adopted by the department.
Governing documents created after the effective date of this section and applicable to associations located fully or partially within a station area as defined in RCW 36.70A.030 may not prohibit the construction or development of multifamily housing or transit-oriented development density that must be permitted by cities under section 4 of this act or require off-street parking inconsistent or in conflict with RCW 36.70A.620.
Declarations and governing documents created after the effective date of this section and applicable to a common interest community located fully or partially within a station area as defined in RCW 36.70A.030 may not prohibit the construction or development of multifamily housing or transit-oriented development density that must be permitted by cities under section 4 of this act or require off-street parking inconsistent or in conflict with RCW 36.70A.620.
A declaration created after the effective date of this section and applicable to an association located fully or partially within a station area as defined in RCW 36.70A.030 may not prohibit the construction or development of multifamily housing or transit-oriented development density that must be permitted by cities under section 4 of this act or require off-street parking inconsistent or in conflict with RCW 36.70A.620.
A declaration created after the effective date of this section and applicable to an association of apartment owners located fully or partially within a station area as defined in RCW 36.70A.030 may not prohibit the construction or development of multifamily housing or transit-oriented development density that must be permitted by cities under section 4 of this act or require off-street parking inconsistent or in conflict with RCW 36.70A.620.