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2023-08-24 - Agenda PacketSpokane e jVa11ey.. Regular Meeting Agenda Spokane Valley Planning Commission Thursday, August 24, 2023 at 6:00 p.m. Remotely via ZOOM meeting and In Person at: CenterPlace Regional Event Center 2426 N Discovery Place NOTICE IS HEREBY GIVEN that a special Spokane Valley Planning Commission meeting will be held August 24, 2023, beginning at 6:00 p.m. The meeting will be held at CenterPlace Regional Event Center, 2426 N Discovery Place, Spokane Valley, Washington. The purpose of the meeting is to consider the items listed below on the Agenda. NOTE: Members of the public may attend Spokane Valley Planning Commission meetings in -person at CenterPlace at the address provided above, or via Zoom at the link below. Members of the public will be allowed to comment in -person or via Zoom as described below: Public comments will only be accented for those items noted on the agenda as "Public comment' or "Public hearinr." If making a comment via Zoom, comments must be received by 4:00 pm, the day of the meeting. Please email planning@spokanevalleywa.gov or call the Planning Commission Secretary at 509-720-5112 to be added to the Zoom speaker list. Otherwise, comments will be taken in -person at the meeting, as noted on the agenda below: LINK TO ZOOM MEETING INFORMATION: https://spokanevalley.zoom.us/i/86262747051 US: +12532158782„ 86262747051# or+16699006833„86262747051# US US: +1 253 215 8782 US (Tacoma) Meeting ID: 862 6274 7051 AGENDA: 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVAL OF AGENDA 5. APPROVAL OF MINUTES: July 13, 2023 6. COMMISSION REPORTS 7. ADMINISTRATIVE REPORT 8. PUBLIC COMMENT: On any subject which is not on the agenda. 9. COMMISSION BUSINESS: a. Legislative Report i. HB1181 —Climate Change Bill (Presented By Greg Norris) ii. HB1042 —Use of Existing Buildings For Residential Purposes & HB1337 — Accessory Dwelling Units (Presented By Levi Basinger) iii. HB1110 —Middle Housing & HB1425 —Annexation Sales & Use Tax (Presented By Martin Palaniuk) 10. FOR THE GOOD OF THE ORDER 11. ADJOURNMENT I. II. IV. V. Special Meeting Minutes Spokane Valley Planning Commission Room 212 — Centerplace Regional Event Center July 13, 2023 Planning Commission Vice -Chairman Haneke called the meeting to order at 6:00 p.m. The meeting was held in person and via ZOOM meetings. The Commissioners and staff stood for the Pledge Of Allegiance. Administrative Assistant Robin Holt took attendance, and the following members and staff were present: Susan Delucchi Val Dimitrov Karl Granrath, absent Walt Haneke Bob McKinley Nancy Miller Daniel Wilson, absent Tony Beattie, Senior Deputy City Attorney Chaz Bates, Planning Manager Lori Barlow, Senior Planner Levi Basinger, Planner Greg Bingaman, IT Specialist Robin Holt, Administrative Assistant There was consensus from the Planning Commission members to excuse Chair Granrath and Commissioner Wilson. AGENDA: Commissioner McKinley moved, and it was seconded to approve the July 13, 2023, agenda as presented. There was no discussion. The vote on the motion was five in favor, zero against, and the motion passed. MINUTES: Commissioner Miller moved, and it was seconded, to approve the June 22, 202$ minutes as presented. There was no discussion. The vote on the motion was five in favor, zero against, and the motion passed. VI. COMMISSION REPORTS: There were no Planning Commission reports. VII. ADMINISTRATIVE REPORT: Planning Manager Chaz Bates reported that due to lack of business, the July 27, 2023 and August 10, 2023 Planning Commission Meetings will be cancelled. The next meeting will be held August 24, 2023. VIII. PUBLIC COMMENT: There was no public comment. IX. COMMISSION BUSINESS: a. Findings Of Fact: CPA-2023-0001: 2023 Annual Comprehensive Plan Amendment. 7-13-2023 Planning Commission Minutes Page 2 of 2 Planner Levi Basinger provided a brief overview of the Findings of Fact for CPA-2023-0001, explaining how they formalize the Commission's recommendations made after hearing public comment and deliberation. Commissioner Delucchi asked for clarification regarding a scrivener error on page 3, line item 23. Mr. Basinger advised the line should read "The proposed changes would have no impact on projected density". Commissioner Delucchi moved to approve, and it was seconded, to forward the Findings of Fact to the City Council as presented. There was no discussion. The vote on the motion was five in favor, zero against and the motion passed. b. Findings Of Fact: CTA-2023-0002: Accessory Dwelling Unit Regulations Update. Senior Planner Lori Barlow provided a brief overview of the Findings of Fact for CTA-2023-0002, explaining how they formalize the Commission's recommendations made after hearing public comment during the public hearing and lengthy deliberations. Commissioner Miller moved to approve, and it was seconded, to forward the Findings of Fact to the City Council as presented. There was no discussion. The vote on the motion was five in favor, zero against and the motion passed. X. GOOD OF THE ORDER: The Commissioners offered thanks to the public for their comments during the process and to City staff for their diligent work. XI. ADJOURNMENT: Commissioner McKinley moved, and it was seconded, to adjourn the meeting at 6:14 p.m. The vote on the motion was five in favor, zero against, and the motion passed. Karl Granrath, Chairman Date Signed Marianne Lemons, Secretary CITY OF SPOKANE VALLEY Request for Planning Commission Action Meeting Date: August 24, 2023 Item: Check all that apply ❑ old business ❑ new business ❑ public hearing ❑ information ® study session ❑ pending legislation AGENDA ITEM TITLE: Climate Change Bill — HB 1181 GOVERNING LEGISLATION: Chapters 36.70A, 43.20, 43.21C, 47.80, 70A.45, 70A.125, 86.12, and 90.58 PREVIOUS COMMISSION ACTION: None BACKGROUND: On May 3, 2023, Governor Inslee signed HB 1181, commonly known as the "Climate Change Bill". The city will be required to implement the requirements of HB 1181 as part of its periodic update. House Bill 1181 establishes the state's climate response primarily through amendments to the Growth Management Act. HB 1181 adds a new goal and related amendments to the GMA, The new goal states: Ensure that comprehensive plans, development regulations, and regional policies, plans and strategies under RCW 36.70A.210 and chapter 47.80 adapt to and mitigate the effects of a changing climate; support reductions in greenhouse gas emissions and per capita vehicle miles traveled; prepare for climate impact scenarios; foster resilience to climate impacts and natural hazard; protect and enhance environmental, economic, and human health safety; and advance environmental justice. As part of its periodic update the city will be required to incorporate into its comprehensive plan: • A greenhouse gas (GHG) emissions reduction sub -element that requires actions to reduce overall GHG emissions and vehicle miles traveled miles traveled. A resiliency sub -element that includes goals and policies for climate resilience and identify and address natural hazards, including landslides, floods, droughts, wildfires, and other impacts of changes to temperature and precipitation patterns. Goals and policies related to environmental justice to avoid worsening environmental health disparities. HB 1181 also requires the WA Department Commerce to develop a model climate element and adopt by rule minimum standards for compliance with state law by June 30, 2025; and requires the Department of Transportation to maintain a summary of the per capita vehicle miles traveled for cities and unincorporated portions of counties. Tonight, staff will provide an overview of the new legislation. ACTION OR MOTION: None STAFF CONTACT: Greg Norris, Planner RPCA Study Session for HB 1181 Legislative Update Page 1 of l [a)0l 4008:0C AN0to]4I<ila■aINNNamahhYY SECOND SUBSTITUTE HOUSE BILL 1181 Chapter 228, Laws of 2023 68th Legislature 2023 Regular Session CLIMATE CHANGE —PLANNING EFFECTIVE DATE: July 23, 2023 Passed by the House April 13, 2023 Yeas 55 Nays 41 LAURIE JINKINS Speaker of the House of Representatives Passed by the Senate April 7, 2023 Yeas 29 Nays 20 DENNY HECK President of the Senate Approved May 3, 2023 10:18 AM JAY INSLEE Governor of the State of Washington CERTIFICATE I, Bernard Dean, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is ENGROSSED SECOND SUBSTITUTE HOUSE BILL 1181 as passed by the House of Representatives and the Senate on the dates hereon set forth. BERNARD DEAN Chief Clerk FILED May 4, 2023 Secretary of State State of Washington ENGROSSED SECOND SUBSTITUTE HOUSE BILL 1181 AS AMENDED BY THE SENATE Passed Legislature - 2023 Regular Session State of Washington 68th Legislature 2023 Regular Session By House Appropriations (originally sponsored by Representatives Duerr, Fitzgibbon, Berry, Peterson, Ryu, Alvarado, Taylor, Reed, Walen, Bateman, Ramel, Goodman, Doglio, Macri, Callan, Simmons, Lekanoff, Gregerson, Bergquist, Stonier, Pellet, Davis, Kloba, Riccelli, Mena, and Tharinger; by request of Office of the Governor) READ FIRST TIME 02/14/23. 1 AN ACT Relating to improving the state's climate response through 2 updates to the state's planning framework; amending RCW 36.70A.020, 3 36.70A.480, 36.70A.280, 36.70A.320, 36.70A.190, 86.12.200, 4 36.70A.030, and 70A.125.180; reenacting and amending RCW 36.70A.070 5 and 36.70A.130; adding new sections to chapter 36.70A RCW; adding a 6 new section to chapter 70A.45 RCW; adding a new section to chapter 7 47.80 RCW; adding a new section to chapter 90.58 RCW; adding a new 8 section to chapter 43.21C RCW; adding a new section to chapter 43.20 9 RCW; creating a new section; and providing an expiration date. 10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON: 11 Sec. 1. RCW 36.70A.020 and 2021 c 254 s 1 are each amended to 12 read as follows: 13 The following goals are adopted to guide the development and 14 adoption of comprehensive plans and development regulations of those 15 counties and cities that are required or choose to plan under RCW 16 36.70A.040 and, where specified, also guide the development of 17 regional policies, plans, and strategies adopted under RCW 36.70A.210 18 and chapter 47.80 RCW. The following goals are not listed in order of 19 priority and shall be used exclusively for the purpose of guiding the 20 development of comprehensive plans development regulations, 21 and, where specified, regional plans, policies, and strategies: P. 1 E2SHB 1181.SL 1 (1) Urban growth. Encourage development in urban areas where 2 adequate public facilities and services exist or can be provided in 3 an efficient manner. 4 (2) Reduce sprawl. Reduce the inappropriate conversion of 5 undeveloped land into sprawling, low -density development. 6 (3) Transportation. Encourage efficient multimodal transportation 7 systems that will reduce greenhouse gas emissions and per capita 8 vehicle miles traveled, and are based on regional priorities and 9 coordinated with county and city comprehensive plans. 10 (4) Housing. Plan for and accommodate housing affordable to all 11 economic segments of the population of this state, promote a variety 12 of residential densities and housing types, and encourage 13 preservation of existing housing stock. 14 (5) Economic development. Encourage economic development 15 throughout the state that is consistent with adopted comprehensive 16 plans, promote economic opportunity for all citizens of this state, 17 especially for unemployed and for disadvantaged persons, promote the 18 retention and expansion of existing businesses and recruitment of new 19 businesses, recognize regional differences impacting economic 20 development opportunities, and encourage growth in areas experiencing 21 insufficient economic growth, all within the capacities of the 22 state's natural resources, public services, and public facilities. 23 (6) Property rights. Private property shall not be taken for 24 public use without just compensation having been made. The property 25 rights of landowners shall be protected from arbitrary and 26 discriminatory actions. 27 (7) Permits. Applications for both state and local government 28 permits should be processed in a timely and fair manner to ensure 29 predictability. 30 (8) Natural resource industries. Maintain and enhance natural 31 resource -based industries, including productive timber, agricultural, 32 and fisheries industries. Encourage the conservation of productive 33 forestlands and productive agricultural lands, and discourage 34 incompatible uses. 35 (9) Open space and recreation. Retain open space and green space, 36 enhance recreational opportunities, ((eense rve)) enhance fish and 37 wildlife habitat, increase access to natural resource lands and 38 water, and develop parks and recreation facilities. p. 2 E2SHB 1181.SL 1 (10) Environment. Protect and enhance the environment and enhance 2 the state's high quality of life, including air and water quality, 3 and the availability of water. 4 (11) Citizen participation and coordination. Encourage the 5 involvement of citizens in the planning process, including the 6 participation of vulnerable nonulations and overburdened communities, 7 and ensure coordination between communities and jurisdictions to 8 reconcile conflicts. 9 (12) Public facilities and services. Ensure that those public 10 facilities and services necessary to support development shall be 11 adequate to serve the development at the time the development is 12 available for occupancy and use without decreasing current service 13 levels below locally established minimum standards. 14 (13) Historic preservation. Identify and encourage the 15 preservation of lands, sites, and structures, that have historical or 16 archaeological significance. 17 (14) Climate change and resiliency. Ensure that comprehensive 18 plans, development regulations, and regional policies, plans, and 19 strategies under RCW 36.70A.210 and chapter 47.80 RCW adapt to and 20 mitigate the effects of a changing climate; support reductions in 21 greenhouse gas emissions and per capita vehicle miles traveled; 22 prepare for climate impact scenarios; foster resiliency to climate 23 impacts and natural hazards; protect and enhance environmental, 24 economic, and human health and safety; and advance environmental 25 justice. 26 (15) Shorelines of the state. For shorelines of the state, the 27 goals and policies of the shoreline management act as set forth in 28 RCW 90.58.020 shall be considered an element of the county's or 29 city's comprehensive plan. 30 Sec. 2. RCW 36.70A.480 and 2010 c 107 s 2 are each amended to 31 read as follows: 32 (1) For shorelines of the state, the goals and policies of the 33 shoreline management act as set forth in RCW 90.58.020 are added as 34 one of the goals of this chapter as set forth in RCW 36.70A.020 35 without creating an order of priority among the ((peen)) 15 36 goals. The goals and policies of a shoreline master program for a 37 county or city approved under chapter 90.58 RCW shall be considered 38 an element of the county or city's comprehensive plan. All other 39 portions of the shoreline master program for a county or city adopted p. 3 E2SHB 1181.SL 1 under chapter 90.58 RCW, including use regulations, shall be 2 considered a part of the county or city's development regulations. 3 (2) The shoreline master program shall be adopted pursuant to the 4 procedures of chapter 90.58 RCW rather than the goals, policies, and 5 procedures set forth in this chapter for the adoption of a 6 comprehensive plan or development regulations. 7 (3)(a) The policies, goals, and provisions of chapter 90.58 RCW 8 and applicable guidelines shall be the sole basis for determining 9 compliance of a shoreline master program with this chapter except as 10 the shoreline master program is required to comply with the internal 11 consistency provisions of RCW 36.70A.070, 36.70A.040(4), 35.63.125, 12 and 35A.63.105. 13 (b) Except as otherwise provided in (c) of this subsection, 14 development regulations adopted under this chapter to protect 15 critical areas within shorelines of the state apply within shorelines 16 of the state until the department of ecology approves one of the 17 following: A comprehensive master program update, as defined in RCW 18 90.58.030; a segment of a master program relating to critical areas, 19 as provided in RCW 90.58.090; or a new or amended master program 20 approved by the department of ecology on or after March 1, 2002, as 21 provided in RCW 90.58.080. The adoption or update of development 22 regulations to protect critical areas under this chapter prior to 23 department of ecology approval of a master program update as provided 24 in this subsection is not a comprehensive or segment update to the 25 master program. 26 (c)(i) Until the department of ecology approves a master program 27 or segment of a master program as provided in (b) of this subsection, 28 a use or structure legally located within shorelines of the state 29 that was established or vested on or before the effective date of the 30 local government's development regulations to protect critical areas 31 may continue as a conforming use and may be redeveloped or modified 32 if: (A) The redevelopment or modification is consistent with the 33 local government's master program; and (B) the local government 34 determines that the proposed redevelopment or modification will 35 result in no net loss of shoreline ecological functions. The local 36 government may waive this requirement if the redevelopment or 37 modification is consistent with the master program and the local 38 government's development regulations to protect critical areas. 39 (ii) For purposes of this subsection (3)(c), an agricultural 40 activity that does not expand the area being used for the p. 4 E2SHB 1181.SL 1 agricultural activity is not a redevelopment or modification. 2 "Agricultural activity," as used in this subsection (3)(c), has the 3 same meaning as defined in RCW 90.58.065. 4 (d) Upon department of ecology approval of a shoreline master 5 program or critical area segment of a shoreline master program, 6 critical areas within shorelines of the state are protected under 7 chapter 90.58 RCW and are not subject to the procedural and 8 substantive requirements of this chapter, except as provided in 9 subsection (6) of this section. Nothing in chapter 321, Laws of 2003 10 or chapter 107, Laws of 2010 is intended to affect whether or to what 11 extent agricultural activities, as defined in RCW 90.58.065, are 12 subject to chapter 36.70A RCW. 13 (e) The provisions of RCW 36.70A.172 shall not apply to the 14 adoption or subsequent amendment of a local government's shoreline 15 master program and shall not be used to determine compliance of a 16 local government's shoreline master program with chapter 90.58 RCW 17 and applicable guidelines. Nothing in this section, however, is 18 intended to limit or change the quality of information to be applied 19 in protecting critical areas within shorelines of the state, as 20 required by chapter 90.58 RCW and applicable guidelines. 21 (4) Shoreline master programs shall provide a level of protection 22 to critical areas located within shorelines of the state that assures 23 no net loss of shoreline ecological functions necessary to sustain 24 shoreline natural resources as defined by department of ecology 25 guidelines adopted pursuant to RCW 90.58.060. 26 (5) Shorelines of the state shall not be considered critical 27 areas under this chapter except to the extent that specific areas 28 located within shorelines of the state qualify for critical area 29 designation based on the definition of critical areas provided by RCW 30 36.70A.030((f5})) (6) and have been designated as such by a local 31 government pursuant to RCW 36.70A.060(2). 32 (6) If a local jurisdiction's master program does not include 33 land necessary for buffers for critical areas that occur within 34 shorelines of the state, as authorized by RCW 90.58.030(2)(({€})) 35 (d), then the local jurisdiction shall continue to regulate those 36 critical areas and their required buffers pursuant to RCW 37 36.70A.060(2). 38 Sec. 3. RCW 36.70A.070 and 2022 c 246 s 2 and 2022 c 220 s 1 are 39 each reenacted and amended to read as follows: p. 5 E2SHB 1181.SL 1 The comprehensive plan of a county or city that is required or 2 chooses to plan under RCW 36.70A.040 shall consist of a map or maps, 3 and descriptive text covering objectives, principles, and standards 4 used to develop the comprehensive plan. The plan shall be an 5 internally consistent document and all elements shall be consistent 6 with the future land use map. A comprehensive plan shall be adopted 7 and amended with public participation as provided in RCW 36.70A.140. 8 Each comprehensive plan shall include a plan, scheme, or design for 9 each of the following: 10 (1) A land use element designating the proposed general 11 distribution and general location and extent of the uses of land, 12 where appropriate, for agriculture, timber production, housing, 13 commerce, industry, recreation, open spaces and green spaces, urban 14 and community forests within the urban growth area, general aviation 15 airports, public utilities, public facilities, and other land uses. 16 The land use element shall include population densities, building 17 intensities, and estimates of future population growth. The land use 18 element shall provide for protection of the quality and quantity of 19 groundwater used for public water supplies. The land use element must 20 give special consideration to achieving environmental justice in its 21 goals and policies, including efforts to avoid creating or worsening 22 environmental health disparities. Wherever possible, the land use 23 element should consider utilizing urban planning approaches that 24 promote physical activity and reduce per capita vehicle miles 25 traveled within the jurisdiction, but without increasing greenhouse 26 gas emissions elsewhere in the state. Where applicable, the land use 27 element shall review drainage, flooding, and stormwater runoff in the 28 area and nearby jurisdictions and provide guidance for corrective 29 actions to mitigate or cleanse those discharges that pollute waters 30 of the state, including Puget Sound or waters entering Puget Sound. 31 The land use element must reduce and mitigate the risk to lives and 32 property posed by wildfires by using land use planning tools, which 33 may include, but are not limited to, adoption of portions or all of 34 the wildland urban interface code developed by the international code 35 council or developing building and maintenance standards consistent 36 with the firewise USA program or similar program designed to reduce 37 wildfire risk, reducing wildfire risks to residential development in 38 high risk areas and the wildland urban interface area, separatinq 39 human development from wildfire prone landscapes, and protecting p. 6 E2SHB 1181.SL 1 existing residential development and infrastructure through communit 2 wildfire preparedness and fire adaptation measures. 3 (2) A housing element ensuring the vitality and character of 4 established residential neighborhoods that: 5 (a) Includes an inventory and analysis of existing and projected 6 housing needs that identifies the number of housing units necessary 7 to manage projected growth, as provided by the department of 8 commerce, including: 9 (i) Units for moderate, low, very low, and extremely low-income 10 households; and 11 (ii) Emergency housing, emergency shelters, and permanent 12 supportive housing; 13 (b) Includes a statement of goals, policies, objectives, and 14 mandatory provisions for the preservation, improvement, and 15 development of housing, including single-family residences, and 16 within an urban growth area boundary, moderate density housing 17 options including, but not limited to, duplexes, triplexes, and 18 townhomes; 19 (c) Identifies sufficient capacity of land for housing including, 20 but not limited to, government -assisted housing, housing for 21 moderate, low, very low, and extremely low-income households, 22 manufactured housing, multifamily housing, group homes, foster care 23 facilities, emergency housing, emergency shelters, permanent 24 supportive housing, and within an urban growth area boundary, 25 consideration of duplexes, triplexes, and townhomes; 26 (d) Makes adequate provisions for existing and projected needs of 27 all economic segments of the community, including: 28 (i) Incorporating consideration for low, very low, extremely low, 29 and moderate -income households; 30 (ii) Documenting programs and actions needed to achieve housing 31 availability including gaps in local funding, barriers such as 32 development regulations, and other limitations; 33 (iii) Consideration of housing locations in relation to 34 employment location; and 35 (iv) Consideration of the role of accessory dwelling units in 36 meeting housing needs; 37 (e) Identifies local policies and regulations that result in 38 racially disparate impacts, displacement, and exclusion in housing, 39 including: 40 (i) Zoning that may have a discriminatory effect; p. 7 E2SHB 1181.SL 1 (ii) Disinvestment; and 2 (iii) Infrastructure availability; 3 (f) Identifies and implements policies and regulations to address 4 and begin to undo racially disparate impacts, displacement, and 5 exclusion in housing caused by local policies, plans, and actions; 6 (g) Identifies areas that may be at higher risk of displacement 7 from market forces that occur with changes to zoning development 8 regulations and capital investments; and 9 (h) Establishes antidisplacement policies, with consideration 10 given to the preservation of historical and cultural communities as 11 well as investments in low, very low, extremely low, and moderate- 12 income housing; equitable development initiatives; inclusionary 13 zoning; community planning requirements; tenant protections; land 14 disposition policies; and consideration of land that may be used for 15 affordable housing. 16 In counties and cities subject to the review and evaluation 17 requirements of RCW 36.70A.215, any revision to the housing element 18 shall include consideration of prior review and evaluation reports 19 and any reasonable measures identified. The housing element should 20 link jurisdictional goals with overall county goals to ensure that 21 the housing element goals are met. 22 The adoption of ordinances, development regulations and 23 amendments to such regulations, and other nonproject actions taken by 24 a city that is required or chooses to plan under RCW 36.70A.040 that 25 increase housing capacity, increase housing affordability, and 26 mitigate displacement as required under this subsection (2) and that 27 apply outside of critical areas are not subject to administrative or 28 judicial appeal under chapter 43.21C RCW unless the adoption of such 29 ordinances, development regulations and amendments to such 30 regulations, or other nonproject actions has a probable significant 31 adverse impact on fish habitat. 32 (3) A capital facilities plan element consisting of: (a) An 33 inventory of existing capital facilities owned by public entities, 34 including green infrastructure, showing the locations and capacities 35 of the capital facilities; (b) a forecast of the future needs for 36 such capital facilities; (c) the proposed locations and capacities of 37 expanded or new capital facilities; (d) at least a six -year plan that 38 will finance such capital facilities within projected funding 39 capacities and clearly identifies sources of public money for such 40 purposes; and (e) a requirement to reassess the land use element if P. 8 E2SHB 1181.SL 1 probable funding falls short of meeting existing needs and to ensure 2 that the land use element, capital facilities plan element, and 3 financing plan within the capital facilities plan element are 4 coordinated and consistent. Park and recreation facilities shall be 5 included in the capital facilities plan element. 6 The county or city shall identify all public entities that own 7 capital facilities and endeavor in good faith to work with other 8 public entities, such as special purpose districts, to gather and 9 include within its capital facilities element the information 10 required by this subsection. If, after a good faith effort, the 11 county or city is unable to gather the information required by this 12 subsection from the other public entities, the failure to include 13 such information in its capital facilities element cannot be grounds 14 for a finding of noncompliance or invalidity under this act. A good 15 faith effort must, at a minimum, include consulting the public 16 entity's capital facility or system plans and emailing and calling 17 the staff of the public entity. 18 (4)(a) A utilities element consisting of the general location, 19 proposed location, and capacity of all existing and proposed 20 utilities((,,—)) including, but not limited to, electrical ((fines)), 21 ( (teleeefftfftanieatien lines)) telecommunications, and natural gas 22 ((des)) systems. 23 (b) The county or city shall identify all public entities that 24 own utility systems and endeavor in good faith to work with other 25 public entities, such as special purpose districts, to gather and 26 include within its utilities element the information required in (a) 27 of this subsection. However, if, after a good faith effort, the 28 county or city is unable to gather the information required in (a) of 29 this subsection from the other public entities, the failure to 30 include such information in the utilities element shall not be 31 grounds for a finding of noncompliance or invalidity under this act. 32 A good faith effort must, at a minimum, include consulting the public 33 entity's capital facility or system plans, and emailing and calling 34 the staff of the public entity. 35 (5) Rural element. Counties shall include a rural element 36 including lands that are not designated for urban growth, 37 agriculture, forest, or mineral resources. The following provisions 38 shall apply to the rural element: 39 (a) Growth management act goals and local circumstances. Because 40 circumstances vary from county to county, in establishing patterns of P. 9 E2SHB 1181.SL 1 rural densities and uses, a county may consider local circumstances, 2 but shall develop a written record explaining how the rural element 3 harmonizes the planning goals in RCW 36.70A.020 and meets the 4 requirements of this chapter. 5 (b) Rural development. The rural element shall permit rural 6 development, forestry, and agriculture in rural areas. The rural 7 element shall provide for a variety of rural densities, uses, 8 essential public facilities, and rural governmental services needed 9 to serve the permitted densities and uses. To achieve a variety of 10 rural densities and uses, counties may provide for clustering, 11 density transfer, design guidelines, conservation easements, and 12 other innovative techniques that will accommodate appropriate rural 13 economic advancement, densities, and uses that are not characterized 14 by urban growth and that are consistent with rural character. 15 (c) Measures governing rural development. The rural element shall 16 include measures that apply to rural development and protect the 17 rural character of the area, as established by the county, by: 18 (i) Containing or otherwise controlling rural development; 19 (ii) Assuring visual compatibility of rural development with the 20 surrounding rural area; 21 (iii) Reducing the inappropriate conversion of undeveloped land 22 into sprawling, low -density development in the rural area; 23 (iv) Protecting critical areas, as provided in RCW 36.70A.060, 24 and surface water and groundwater resources; and 25 (v) Protecting against conflicts with the use of agricultural, 26 forest, and mineral resource lands designated under RCW 36.70A.170. 27 (d) Limited areas of more intensive rural development. Subject to 28 the requirements of this subsection and except as otherwise 29 specifically provided in this subsection (5)(d), the rural element 30 may allow for limited areas of more intensive rural development, 31 including necessary public facilities and public services to serve 32 the limited area as follows: 33 (i) Rural development consisting of the infill, development, or 34 redevelopment of existing commercial, industrial, residential, or 35 mixed -use areas, whether characterized as shoreline development, 36 villages, hamlets, rural activity centers, or crossroads 37 developments. 38 (A) A commercial, industrial, residential, shoreline, or mixed- 39 use area are subject to the requirements of (d)(iv) of this P. 10 E2SHB 1181.SL 1 subsection, but are not subject to the requirements of (c)(ii) and 2 (iii) of this subsection. 3 (B) Any development or redevelopment other than an industrial 4 area or an industrial use within a mixed -use area or an industrial 5 area under this subsection (5)(d)(i) must be principally designed to 6 serve the existing and projected rural population. 7 (C) Any development or redevelopment in terms of building size, 8 scale, use, or intensity may be permitted subject to confirmation 9 from all existing providers of public facilities and public services 10 of sufficient capacity of existing public facilities and public 11 services to serve any new or additional demand from the new 12 development or redevelopment. Development and redevelopment may 13 include changes in use from vacant land or a previously existing use 14 so long as the new use conforms to the requirements of this 15 subsection (5) and is consistent with the local character. Any 16 commercial development or redevelopment within a mixed -use area must 17 be principally designed to serve the existing and projected rural 18 population and must meet the following requirements: 19 (1) Any included retail or food service space must not exceed the 20 footprint of previously occupied space or 5,000 square feet, 21 whichever is greater, for the same or similar use; and 22 (11) Any included retail or food service space must not exceed 23 2,500 square feet for a new use; 24 (ii) The intensification of development on lots containing, or 25 new development of, small-scale recreational or tourist uses, 26 including commercial facilities to serve those recreational or 27 tourist uses, that rely on a rural location and setting, but that do 28 not include new residential development. A small-scale recreation or 29 tourist use is not required to be principally designed to serve the 30 existing and projected rural population. Public services and public 31 facilities shall be limited to those necessary to serve the 32 recreation or tourist use and shall be provided in a manner that does 33 not permit low -density sprawl; 34 (iii) The intensification of development on lots containing 35 isolated nonresidential uses or new development of isolated cottage 36 industries and isolated small-scale businesses that are not 37 principally designed to serve the existing and projected rural 38 population and nonresidential uses, but do provide job opportunities 39 for rural residents. Rural counties may allow the expansion of small- 40 scale businesses as long as those small-scale businesses conform with P. 11 E2SHB 1181.SL 1 the rural character of the area as defined by the local government 2 according to RCW 36.70A.030(23). Rural counties may also allow new 3 small-scale businesses to utilize a site previously occupied by an 4 existing business as long as the new small-scale business conforms to 5 the rural character of the area as defined by the local government 6 according to RCW 36.70A.030(23). Public services and public 7 facilities shall be limited to those necessary to serve the isolated 8 nonresidential use and shall be provided in a manner that does not 9 permit low -density sprawl; 10 (iv) A county shall adopt measures to minimize and contain the 11 existing areas of more intensive rural development, as appropriate, 12 authorized under this subsection. Lands included in such existing 13 areas shall not extend beyond the logical outer boundary of the 14 existing area, thereby allowing a new pattern of low -density sprawl. 15 Existing areas are those that are clearly identifiable and contained 16 and where there is a logical boundary delineated predominately by the 17 built environment, but that may also include undeveloped lands if 18 limited as provided in this subsection. The county shall establish 19 the logical outer boundary of an area of more intensive rural 20 development. In establishing the logical outer boundary, the county 21 shall address (A) the need to preserve the character of existing 22 natural neighborhoods and communities, (B) physical boundaries, such 23 as bodies of water, streets and highways, and land forms and 24 contours, (C) the prevention of abnormally irregular boundaries, and 25 (D) the ability to provide public facilities and public services in a 26 manner that does not permit low -density sprawl; 27 (v) For purposes of this subsection (5)(d), an existing area or 28 existing use is one that was in existence: 29 (A) On July 1, 1990, in a county that was initially required to 30 plan under all of the provisions of this chapter; 31 (B) On the date the county adopted a resolution under RCW 32 36.70A.040(2), in a county that is planning under all of the 33 provisions of this chapter under RCW 36.70A.040(2); or 34 (C) On the date the office of financial management certifies the 35 county's population as provided in RCW 36.70A.040(5), in a county 36 that is planning under all of the provisions of this chapter pursuant 37 to RCW 36.70A.040(5). 38 (e) Exception. This subsection shall not be interpreted to permit 39 in the rural area a major industrial development or a master planned p. 12 E2SHB 1181.SL 1 resort unless otherwise specifically permitted under RCW 36.70A.360 2 and 36.70A.365. 3 (6) A transportation element that implements, and is consistent 4 with, the land use element. 5 (a) The transportation element shall include the following 6 subelements: 7 (i) Land use assumptions used in estimating travel; 8 (ii) Estimated (()) multimodal level of service impacts to 9 state-owned transportation facilities resulting from land use 10 assumptions to assist (( )) in 11 monitoring the performance of state facilities, to plan improvements 12 for the facilities, and to assess the impact of land -use decisions on 13 state-owned transportation facilities; 14 (iii) Facilities and services needs, including: 15 (A) An inventory of air, water, and ground transportation 16 facilities and services, including transit alignments, active 17 transportation facilities, and general aviation airport facilities, 18 to define existing capital facilities and travel levels ((as a basis 19 €ar)) to inform future planning. This inventory must include state- 20 owned transportation facilities within the city or county's 21 jurisdictional boundaries; 22 (B) ((mil)) Multimodal level of service standards for all 23 locally owned arterials ((gad)), locally and regionally operated 24 transit routes that serve urban growth areas, state-owned or operated 25 transit routes that serve urban areas if the department of 26 transportation has prepared such standards, and active transportation 27 facilities to serve as a gauge to judge performance of the system and 28 success in helping to achieve the goals of this chapter consistent 29 with environmental justice. These standards should be regionally 30 coordinated; 31 (C) For state-owned transportation facilities, multimodal level 32 of service standards for highways, as prescribed in chapters 47.06 33 and 47.80 RCW, to gauge the performance of the system. The purposes 34 of reflecting multimodal level of service standards for state 35 highways in the local comprehensive plan are to monitor the 36 performance of the system, to evaluate improvement strategies, and to 37 facilitate coordination between the county's or city's six -year 38 street, road, active transportation, or transit program and the 39 office of financial management's ten-year investment program. The 40 concurrency requirements of (b) of this subsection do not apply to p. 13 E2SHB 1181.SL 1 transportation facilities and services of statewide significance 2 except for counties consisting of islands whose only connection to 3 the mainland are state highways or ferry routes. In these island 4 counties, state highways and ferry route capacity must be a factor in 5 meeting the concurrency requirements in (b) of this subsection; 6 (D) Specific actions and requirements for bringing into 7 compliance ((Ieeal'_ _..nc�'_..nca)) transportation facilities or services 8 that are below an established multimodal level of service standard; 9 (E) Forecasts of ((tee)) multimodal transportation demand and 10 needs within cities and urban growth areas, and forecasts of 11 multimodal transportation demand and needs outside of cities and 12 urban growth areas, for at least ten years based on the adopted land 13 use plan to ( (jrevide infer-matien en the—leeatier t 14 eapae-ity neeels e€ future r) ) inform the development of a 15 transportation element that balances transportation system safety and 16 convenience to accommodate all users of the transportation system to 17 safely, reliably, and efficiently provide access and mobility to 18 people and goods. Priority must be given to inclusion of 19 transportation facilities and services providing the greatest 20 multimodal safety benefit to each category of roadway users for the 21 context and speed of the facility; 22 (F) Identification of state and local system needs to equitably 23 meet current and future demands. Identified needs on state-owned 24 transportation facilities must be consistent with the statewide 25 multimodal transportation plan required under chapter 47.06 RCW_ 26 Local system needs should reflect the regional transportation system 27 and local goals, and strive to equitably implement the multimodal 28 network; 29 (G) A transition plan for transportation as required in Title II 30 of the Americans with disabilities act of 1990 (ADA). As a necessary 31 step to a program access plan to provide accessibility under the ADA, 32 state and local government, public entities, and public agencies are 33 required to perform self -evaluations of their current facilities, 34 relative to accessibility requirements of the ADA. The agencies are 35 then required to develop a program access plan, which can be called a 36 transition plan, to address any deficiencies. The plan is intended to 37 achieve the following: 38 (I) Identify physical obstacles that limit the accessibility of 39 facilities to individuals with disabilities; p. 14 E2SHB 1181.SL 1 (II) Describe the methods to be used to make the facilities 2 accessible; 3 (III) Provide a schedule for making the access modifications; and 4 (IV) Identify the public officials responsible for implementation 5 of the transition plan; 6 (iv) Finance, including: 7 (A) An analysis of funding capability to judge needs against 8 probable funding resources; 9 (B) A multiyear financing plan based on the needs identified in 10 the comprehensive plan, the appropriate parts of which shall serve as 11 the basis for the six -year street, road, or transit program required 12 by RCW 35.77.010 for cities, RCW 36.81.121 for counties, and RCW 13 35.58.2795 for public transportation systems. The multiyear financing 14 plan should be coordinated with the ten-year investment program 15 developed by the office of financial management as required by RCW 16 47.05.030; 17 (C) If probable funding falls short of meeting the identified 18 needs of the transportation system, including state transportation 19 facilities, a discussion of how additional funding will be raised, or 20 how land use assumptions will be reassessed to ensure that level of 21 service standards will be met; 22 (v) Intergovernmental coordination efforts, including an 23 assessment of the impacts of the transportation plan and land use 24 assumptions on the transportation systems of adjacent jurisdictions; 25 (vi) Demand -management strategies; 26 (vii) ((Ped__trican and bieyele)) Active transportation component 1 27 to include collaborative efforts to identify and designate planned 28 improvements for ((sedestr an and b ieyele)) active transportation 29 facilities and corridors that address and encourage enhanced 30 community access and promote healthy lifestyles. 31 (b) After adoption of the comprehensive plan by jurisdictions 32 required to plan or who choose to plan under RCW 36.70A.040, local 33 jurisdictions must adopt and enforce ordinances which prohibit 34 development approval if the development causes the level of service 35 on a locally owned or locally or regionally operated transportation 36 facility to decline below the standards adopted in the transportation 37 element of the comprehensive plan, unless transportation improvements 38 or strategies to accommodate the impacts of development are made 39 concurrent with the development. These strategies may include 40 ((wed)) active transportation facility improvements, increased p. 15 E2SHB 1181.SL 1 or enhanced public transportation service, ride -sharing programs, 2 demand management, and other transportation systems management 3 strategies. For the purposes of this subsection (6), "concurrent with 4 the development" means that improvements or strategies are in place 5 at the time of development, or that a financial commitment is in 6 place to complete the improvements or strategies within six years. If 7 the collection of impact fees is delayed under RCW 82.02.050(3), the 8 six -year period required by this subsection (6)(b) must begin after 9 full payment of all impact fees is due to the county or city. A 10 development proposal may not be denied for causing the level of 11 service on a locally owned or locally or regionally operated 12 transportation facility to decline below the standards adopted in the 13 transportation element of the comprehensive plan where such impacts 14 could be adequately mitigated through active transportation facility 15 improvements, increased or enhanced public transportation service, 16 ride -sharing programs, demand management, or other transportation 17 systems management strategies funded by the development. 18 (c) The transportation element described in this subsection (6), 19 the six -year plans required by RCW 35.77.010 for cities, RCW 20 36.81.121 for counties, and RCW 35.58.2795 for public transportation 21 systems, and the ten-year investment program required by RCW 22 47.05.030 for the state, must be consistent. 23 (7) An economic development element establishing local goals, 24 policies, objectives, and provisions for economic growth and vitality 25 and a high quality of life. A city that has chosen to be a 26 residential community is exempt from the economic development element 27 requirement of this subsection. 28 (8) A park and recreation element that implements, and is 29 consistent with, the capital facilities plan element as it relates to 30 park and recreation facilities. The element shall include: (a) 31 Estimates of park and recreation demand for at least a ten-year 32 period; (b) an evaluation of facilities and service needs; c an 33 evaluation of tree canopy coverage within the urban growth area; and 34 ((4e})) (d) an evaluation of intergovernmental coordination 35 opportunities to provide regional approaches for meeting park and 36 recreational demand. 37 (9)(a) A climate change and resiliency element that is designed 38 to result in reductions in overall greenhouse gas emissions and that 39 must enhance resiliency to and avoid the adverse impacts of climate 40 chanae, which must include efforts to reduce localized areenhouse aas p. 16 E2SHB 1181.SL 1 emissions and avoid creating or worsening localized climate impacts 2 to vulnerable populations and overburdened communities. 3 (b) The climate change and resiliency element shall include the 4 following subelements: 5 (i) A greenhouse gas emissions reduction subelement; 6 (ii) A resiliency subelement. 7 (c) The greenhouse gas emissions reduction subelement of the 8 climate change and resiliency element is mandatory for the 9 jurisdictions specified in section 4(1) of this act and is encouraged 10 for all other jurisdictions, including those planning under RCW 11 36.70A.040 and those planning under chapter 36.70 RCW. The resiliency 12 subelement of the climate change and resiliency element is mandatory 13 for all jurisdictions planning under RCW 36.70A.040 and is encouraged 14 for those jurisdictions planning under chapter 36.70 RCW. 15 (d)(i) The greenhouse gas emissions reduction subelement of the 16 comprehensive plan, and its related development regulations, must 17 identify the actions the jurisdiction will take during the planning 18 cycle consistent with the guidelines published by the department 19 pursuant to section 5 of this act that will: 20 (A) Result in reductions in overall greenhouse gas emissions 21 generated by transportation and land use within the jurisdiction but 22 without increasing greenhouse gas emissions elsewhere in the state; 23 (B) Result in reductions in per capita vehicle miles traveled 24 within the jurisdiction but without increasing greenhouse gas 25 emissions elsewhere in the state; and 26 (C) Prioritize reductions that benefit overburdened communities 27 in order to maximize the cobenefits of reduced air pollution and 28 environmental justice. 29 (ii) Actions not specifically identified in the guidelines 30 developed by the department pursuant to section 5 of this act may be 31 considered consistent with these guidelines only if: 32 (A) They are protected to achieve greenhouse gas emissions 33 reductions or per capita vehicle miles traveled reductions equivalent 34 to what would be required of the jurisdiction under the guidelines 35 adopted by the department; and 36 (B) They are supported by scientifically credible projections and 37 scenarios that indicate their adoption is likely to result in 38 reductions of areenhouse aas emissions or per capita vehicle miles 39 traveled. p. 17 E2SHB 1181.SL 1 (iii) A jurisdiction may not restrict population growth or limit 2 population allocation in order to achieve the requirements set forth 3 in this subsection (9)(d). 4 (e)(i) The resiliency subelement must equitably enhance 5 resiliency to, and avoid or substantially reduce the adverse impacts 6 of, climate change in human communities and ecological systems 7 through goals, policies, and programs consistent with the best 8 available science and scientifically credible climate projections and 9 impact scenarios that moderate or avoid harm, enhance the resiliency 10 of natural and human systems, and enhance beneficial opportunities. 11 The resiliency subelement must prioritize actions that benefit 12 overburdened communities that will disproportionately suffer from 13 compounding environmental impacts and will be most impacted by 14 natural hazards due to climate change. Specific goals, policies, and 15 programs of the resiliency subelement must include, but are not 16 limited to, those designed to: 17 (A) Identify, protect, and enhance natural areas to foster 18 resiliency to climate impacts, as well as areas of vital habitat for 19 safe passage and species migration; 20 (B) Identify, protect, and enhance community resiliency to 21 climate change impacts, including social, economic, and built 22 environment factors, that support adaptation to climate impacts 23 consistent with environmental justice; and 24 (C) Address natural hazards created or aggravated by climate 25 change, including sea level rise, landslides, flooding, drought, 26 heat, smoke, wildfire, and other effects of changes to temperature 27 and precipitation patterns. 28 (ii) A natural hazard mitigation plan or similar plan that is 29 guided by RCW 36.70A.020(14), that prioritizes actions that benefit 30 overburdened communities, and that complies with the applicable 31 requirements of this chapter, including the requirements set forth in 32 this subsection (9)(e), may be adopted by reference to satisfy these 33 requirements, except that to the extent any of the substantive 34 requirements of this subsection (9)(e) are not addressed, or are 35 inadequately addressed, in the referenced natural hazard mitigation 36 plan, a county or city must supplement the natural hazard mitigation 37 plan accordingly so that the adopted resiliency subelement complies 38 fully with the substantive requirements of this subsection (9)(e). 39 (A) If a county or city intends to adopt by reference a federal 40 emeraencv management aaencv natural hazard mitigation plan in order P. 18 E2SHB 1181.SL 1 to meet all or part of the substantive requirements set forth in this 2 subsection (9)(e), and the most recently adopted federal emergency 3 management agency natural hazard mitigation plan does not comply with 4 the requirements of this subsection (9)(e), the department may grant 5 the county or city an extension of time in which to submit a natural 6 hazard mitigation plan. 7 (B) Eligibility for an extension under this subsection prior to 8 July 1, 2027, is limited to a city or county required to review and, 9 if needed, revise its comprehensive plan on or before June 30, 2025, 10 as provided in RCW 36.70A.130, or for a city or county with an 11 existing, unexpired federal emergency management agency natural 12 hazard mitigation plan scheduled to expire before December 31, 2024. 13 (C) Extension requests after July 1, 2027, may be granted if 14 requirements for the resiliency subelement are amended or added by 15 the legislature or if the department finds other circumstances that 16 may result in a potential finding of noncompliance with a 17 jurisdiction's existing and approved federal emergency management 18 agency natural hazard mitigation plan. 19 (D) A city or county that wishes to request an extension of time 20 must submit a request in writing to the department no later than the 21 date on which the city or county is required to review and, if 22 needed, revise its comprehensive plan as provided in RCW 36.70A.130. 23 (E) Upon the submission of such a request to the department, the 24 city or county may have an additional 48 months from the date 25 provided in RCW 36.70A.130 in which to either adopt by reference an 26 updated federal emergency management agency natural hazard mitigation 27 plan or adopt its own natural hazard mitigation plan, and to then 28 submit that plan to the department. 29 (F) The adoption of ordinances, amendments to comprehensive 30 plans, amendments to development regulations, and other nonproject 31 actions taken by a county or city pursuant to (d) of this subsection 32 in order to implement measures specified by the department pursuant 33 to section 5 of this act are not subject to administrative or 34 judicial appeal under chapter 43.21C RCW. 35 (10) It is the intent that new or amended elements required after 36 January 1, 2002, be adopted concurrent with the scheduled update 37 provided in RCW 36.70A.130. Requirements to incorporate any such new 38 or amended elements shall be null and void until funds sufficient to 39 cover applicable local government costs are appropriated and P. 19 E2SHB 1181.SL 1 distributed by the state at least two years before local government 2 must update comprehensive plans as required in RCW 36.70A.130. 3 NEW SECTION. Sec. 4. A new section is added to chapter 36.70A 4 RCW to read as follows: 5 (1) The requirements of the greenhouse gas emissions reduction 6 subelement of the climate change and resiliency element set forth in 7 RCW 36.70A.070 apply only to those counties that are required or that 8 choose to plan under RCW 36.70A.040 and that also meet either of the 9 criteria set forth in (a), (b), or (c) of this subsection on or after 10 April 1, 2021, and the cities with populations greater than 6,000 as 11 of April 1, 2021, within those counties: 12 (a) A county with a population density of at least 100 people per 13 square mile and a population of at least 200,000; 14 (b) A county bordering on the Columbia and Snake rivers with a 15 population density of at least 75 people per square mile and an 16 annual growth rate of at least 1.65 percent; or 17 (c) A county located to the west of the crest of the Cascade 18 mountains with a population of at least 130,000. 19 (2) The requirements of the amendments to the transportation 20 element of RCW 36.70A.070 set forth in this act apply only to: (a) 21 Counties and cities that meet the population criteria set forth in 22 subsection (1) of this section; and (b) cities with populations of 23 6,000 or greater as of April 1, 2021, that are located in a county 24 that is required or that chooses to plan under RCW 36.70A.040. 25 (3) The requirements of the amendments to the land use element of 26 RCW 36.70A.070 set forth in this act apply only to: (a) Counties and 27 cities that meet the population criteria set forth in subsection (1) 28 or (2) of this section; and (b) counties that have a population of 29 20,000 or greater as of April 1, 2021, and that are required or that 30 choose to plan under RCW 36.70A.040. 31 (4) Once a county meets either of the sets of criteria set forth 32 in subsection (1) of this section, the requirement to conform with 33 the greenhouse gas emissions reduction subelement of the climate 34 change and resiliency element set forth in RCW 36.70A.070 remains in 35 effect, even if the county no longer meets one of these sets of 36 criteria. 37 (5) If the population of a county that previously had not been 38 required to conform with the greenhouse gas emissions reduction 39 subelement of the climate change and resiliency element set forth in p. 20 E2SHB 1181.SL 1 RCW 36.70A.070 changes sufficiently to meet either of the sets of 2 criteria set forth in subsection (1) of this section, the county, and 3 the cities with populations greater than 6,000 as of April 1, 2021, 4 within that county, shall adopt a greenhouse gas emissions reduction 5 subelement of the climate change and resiliency element set forth in 6 RCW 36.70A.070 at the next scheduled update of the comprehensive plan 7 as set forth in RCW 36.70A.130. 8 (6) The population criteria used in this section must be based on 9 population data as determined by the office of financial management. 10 NEW SECTION. Sec. 5. A new section is added to chapter 70A.45 11 RCW to read as follows: 12 (1) The department of commerce, in consultation with the 13 department of ecology, the department of health, and the department 14 of transportation, shall publish guidelines that specify a set of 15 measures counties and cities may implement via updates to their 16 comprehensive plans and development regulations that have a 17 demonstrated ability to increase housing capacity within urban growth 18 areas or reduce greenhouse gas emissions, allowing for consideration 19 of the emissions reductions achieved through the adoption of 20 statewide programs. The guidelines must prioritize measures that 21 benefit overburdened communities, including communities that have 22 experienced disproportionate harm due to air pollution and may draw 23 upon the most recent health disparities data from the department of 24 health to identify high pollution areas and disproportionately 25 burdened communities. These guidelines must be developed consistent 26 with an environmental justice assessment pursuant to RCW 70A.02.060 27 and the guidelines must include environmental justice assessment 28 processes. The guidelines must be based on: 29 (a) The most recent greenhouse gas emissions report prepared by 30 the department of ecology and the department of commerce pursuant to 31 RCW 70A.45.020(2); 32 (b) The most recent city and county population estimates prepared 33 by the office of financial management pursuant to RCW 43.62.035; 34 (c) The locations of major employment centers and transit 35 corridors, for the purpose of increasing housing supply in these 36 areas; and 37 (d) Available environmental justice data and data regarding 38 access to public transportation for people with disabilities and for 39 vulnerable populations. p. 21 E2SHB 1181.SL 1 (2)(a) The department of commerce, in consultation with the 2 department of transportation, shall publish guidelines that specify a 3 set of measures counties and cities may have available to them to 4 take through updates to their comprehensive plans and development 5 regulations that have a demonstrated ability to reduce per capita 6 vehicle miles traveled, including measures that are designed to be 7 achievable throughout the state, including in small cities and rural 8 cities. 9 (b) The guidelines must be based on: 10 (i) The most recent greenhouse gas emissions report prepared by 11 the department of ecology and the department of commerce pursuant to 12 RCW 70A.45.020(2); 13 (ii) The most recent city and county population estimates 14 prepared by the office of financial management pursuant to RCW 15 43.62.035; and 16 (iii) The most recent summary of per capita vehicle miles 17 traveled as compiled by the department of transportation. 18 (3) The department of commerce shall first publish the full set 19 of guidelines described in subsections (1) and (2) of this section no 20 later than December 31, 2025. The department of commerce shall update 21 these guidelines at least every five years thereafter based on the 22 most recently available data, and shall provide for a process for 23 local governments and other parties to submit alternative actions for 24 consideration for inclusion into the guidelines at least once per 25 year. The department of commerce shall publish an intermediate set of 26 guidelines no later than December 31, 2023, in order to be available 27 for use by jurisdictions whose periodic updates are required by RCW 28 36.70A.130(5) to occur prior to December 31, 2025. Jurisdictions 29 whose periodic updates are required by RCW 36.70A.130(5)(b) may 30 utilize the intermediate set of guidelines published by the 31 department of commerce to meet the requirements of RCW 36.70A.070(9). 32 (4)(a) In any updates to the guidelines published after 2025, the 33 department of commerce shall include an evaluation of the impact that 34 locally adopted climate change and resiliency elements have had on 35 local greenhouse gas emissions and per capita vehicle miles traveled 36 reduction goals. The evaluation must also address the impact that 37 locally adopted greenhouse gas emissions reduction subelements have 38 had on meeting local housing goals and targets. 39 (b) The updates must also include an estimate of the impacts that 40 locally adopted climate change and resiliency elements will have on p. 22 E2SHB 1181.SL 1 achieving local greenhouse gas emissions and per capita vehicle miles 2 traveled reduction goals. The evaluation must also include an 3 estimate of the impact that locally adopted greenhouse gas emissions 4 reduction subelements will have on meeting local housing goals and 5 targets. 6 (c) The department may include in the specified guidelines what 7 additional measures cities and counties should take to make 8 additional progress on local reduction goals, including any measures 9 that increase housing capacity within urban growth areas. 10 (5) The department of commerce may not propose or adopt any 11 guidelines that would include any form of a road usage charge or any 12 fees or surcharges related to vehicle miles traveled. 13 (6) The department of commerce may not propose or adopt any 14 guidelines that would direct or require local governments to regulate 15 or tax, in any form, transportation service providers, delivery 16 vehicles, or passenger vehicles. 17 (7) The department of commerce, in the course of implementing 18 this section, shall provide and prioritize options that support 19 increased housing supply and diversity of housing types that assist 20 counties and cities in meeting greenhouse gas emissions reduction, 21 housing supply, and other requirements established under this 22 chapter. 23 (8) The provisions of this section as applied to the department 24 of transportation are subject to the availability of amounts 25 appropriated for this specific purpose. 26 (9) For purposes of this section, "overburdened communities" and 27 "vulnerable populations" means the same as provided in RCW 28 36.70A.030. 29 NEW SECTION. Sec. 6. A new section is added to chapter 36.70A 30 RCW to read as follows: 31 (1) A county or city required to complete a greenhouse gas 32 emissions reduction subelement may submit the subelement to the 33 department for approval. When submitted to the department for 34 approval, the subelement becomes effective when approved by the 35 department as provided in this section. If a county or city does not 36 seek department approval of the subelement, the effective date of the 37 subelement is the date on which the comprehensive plan is adopted by 38 the county or city. p. 23 E2SHB 1181.SL 1 (2) Notice of intent to apply for approval. (a) Not less than 120 2 days prior to applying for approval of a subelement, the county or 3 city must notify the department in writing that it intends to apply 4 for approval. The department shall review proposed subelements prior 5 to final adoption and advise the county or city of the actions 6 necessary to receive approval. 7 (b) The department may consult with other relevant state agencies 8 in making its determination. 9 (c) The department shall publish notice in the Washington State 10 Register that a city or county has notified the department of its 11 intent to apply for approval and the department shall post a copy of 12 the notice on the department website. 13 (3) Procedures for an application for approval. (a) After taking 14 final action to adopt a greenhouse gas emissions reduction 15 subelement, a city or county may apply to the department for approval 16 of the subelement. A city or county must submit its application to 17 the department within 10 days of taking final action. 18 (b) An application for approval must include, at a minimum, the 19 following: 20 (i) A cover letter from the legislative authority requesting 21 approval; 22 (ii) A copy of the adopted ordinance or resolution taking the 23 legislative action or actions required to adopt the greenhouse gas 24 emissions reduction subelement; 25 (iii) A statement explaining how the adopted subelement complies 26 with the provisions of this chapter; and 27 (iv) A copy of the record developed by the city or county at any 28 public meetings or public hearings at which action was taken on the 29 greenhouse gas emissions reduction subelement. 30 (c) For purposes of this subsection, the terms "action" and 31 "meeting" have the same definition as in RCW 42.30.020. 32 (4) Approval procedures. (a) The department shall strive to 33 achieve final action to approve or deny an application within 180 34 days of the date of receipt of the application. 35 (b) The department must issue its decision in the form of a 36 written statement, including findings of fact and conclusions, and 37 noting the date of the issuance of its decision. The department's 38 issued decision must conspicuously and plainly state that it is the 39 department's final decision and that there will be no further p. 24 E2SHB 1181.SL 1 modifications to the proposed greenhouse gas emissions reduction 2 subelement. 3 (c) The department will promptly publish its decision on the 4 application for approval as follows: 5 (i) Notify the city or county in writing of its determination; 6 (ii) Publish a notice of action in the Washington State Register; 7 (iii) Post a notice of its decision on the agency website; and 8 (iv) Notify other relevant state agencies regarding the approval 9 decision. 10 (5) The department shall approve a proposed greenhouse gas 11 emissions reduction subelement unless it determines that the proposed 12 greenhouse gas emissions reduction subelement is not consistent with 13 the policy of RCW 36.70A.070 and, after they are adopted, the 14 applicable guidelines. 15 (6) The department's final decision to approve or reject a 16 proposed greenhouse gas emissions reduction subelement or amendment 17 by a local government planning under RCW 36.70A.040 may be appealed 18 according to the following provisions: 19 (a) The department's final decision to approve or reject a 20 proposed greenhouse gas emissions reduction subelement or amendment 21 by a local government planning under RCW 36.70A.040 may be appealed 22 to the growth management hearings board by filing a petition as 23 provided in RCW 36.70A.290. 24 (b) A decision of the growth management hearings board concerning 25 an appeal of the department's final decision to approve or reject a 26 proposed greenhouse gas emissions reduction subelement or amendment 27 must be based solely on whether or not the adopted or amended 28 greenhouse gas emissions reduction subelement, any adopted amendments 29 to other elements of the comprehensive plan necessary to carry out 30 the subelement, and any adopted or amended development regulations 31 necessary to implement the subelement, comply with the goal set forth 32 in RCW 36.70A.020(14) as it applies to greenhouse gas emissions 33 reductions, RCW 36.70A.070(9) excluding RCW 36.70A.070(9)(e), the 34 guidelines adopted under section 5 of this act applicable to the 35 greenhouse gas emissions reduction subelement, or chapter 43.21C RCW. 36 Sec. 7. RCW 36.70A.280 and 2011 c 360 s 17 are each amended to 37 read as follows: 38 (1) The growth management hearings board shall hear and determine 39 only those petitions alleging either: p. 25 E2SHB 1181.SL 1 (a) That, except as provided otherwise by this subsection, a 2 state agency, county, or city planning under this chapter is not in 3 compliance with the requirements of this chapter, chapter 90.58 RCW 4 as it relates to the adoption of shoreline master programs or 5 amendments thereto, or chapter 43.21C RCW as it relates to plans, 6 development regulations, or amendments, adopted under RCW 36.70A.040 7 or chapter 90.58 RCW. Nothing in this subsection authorizes the board 8 to hear petitions alleging noncompliance with RCW 36.70A.5801; 9 (b) That the ((twenty)) 20-year growth management planning 10 population projections adopted by the office of financial management 11 pursuant to RCW 43.62.035 should be adjusted; 12 (c) That the approval of a work plan adopted under RCW 13 36.70A.735(1)(a) is not in compliance with the requirements of the 14 program established under RCW 36.70A.710; 15 (d) That regulations adopted under RCW 36.70A.735(1)(b) are not 16 regionally applicable and cannot be adopted, wholly or partially, by 17 another jurisdiction; ((er-)) 18 (e) That a department certification under RCW 36.70A.735(1)(c) is 19 erroneous; or 20 (f) That the department's final decision to approve or relect a 21 proposed greenhouse gas emissions reduction subelement or amendments 22 by a local government planning under RCW 36.70A.040 was not in 23 compliance with the joint guidance issued by the department pursuant 24 to section 5 of this act. 25 (2) A petition may be filed only by: (a) The state, or a county 26 or city that plans under this chapter; (b) a person who has 27 participated orally or in writing before the county or city regarding 28 the matter on which a review is being requested; (c) a person who is 29 certified by the governor within ((sip)) 60 days of filing the 30 request with the board; or (d) a person qualified pursuant to RCW 31 34.05.530. 32 (3) For purposes of this section "person" means any individual, 33 partnership, corporation, association, state agency, governmental 34 subdivision or unit thereof, or public or private organization or 35 entity of any character. 36 (4) To establish participation standing under subsection (2)(b) 37 of this section, a person must show that his or her participation 38 before the county or city was reasonably related to the person's 39 issue as presented to the board. p. 26 E2SHB 1181.SL 1 (5) When considering a possible adjustment to a growth management 2 planning population projection prepared by the office of financial 3 management, the board shall consider the implications of any such 4 adjustment to the population forecast for the entire state. 5 The rationale for any adjustment that is adopted by the board 6 must be documented and filed with the office of financial management 7 within ten working days after adoption. 8 If adjusted by the board, a county growth management planning 9 population projection shall only be used for the planning purposes 10 set forth in this chapter and shall be known as the "board adjusted 11 population projection." None of these changes shall affect the 12 official state and county population forecasts prepared by the office 13 of financial management, which shall continue to be used for state 14 budget and planning purposes. 15 Sec. 8. RCW 36.70A.320 and 1997 c 429 s 20 are each amended to 16 read as follows: 17 (1) Except as provided in subsections (5) and (6) of this 18 section, comprehensive plans and development regulations, and 19 amendments thereto, adopted under this chapter are presumed valid 20 upon adoption. 21 (2) Except as otherwise provided in subsection (4) of this 22 section, the burden is on the petitioner to demonstrate that any 23 action taken by a state agency, county, or city under this chapter is 24 not in compliance with the requirements of this chapter. 25 (3) In any petition under this chapter, the board, after full 26 consideration of the petition, shall determine whether there is 27 compliance with the requirements of this chapter. In making its 28 determination, the board shall consider the criteria adopted by the 29 department under RCW 36.70A.190(4). The board shall find compliance 30 unless it determines that the action by the state agency, county, or 31 city is clearly erroneous in view of the entire record before the 32 board and in light of the goals and requirements of this chapter. 33 (4) A county or city subject to a determination of invalidity 34 made under RCW 36.70A.300 or 36.70A.302 has the burden of 35 demonstrating that the ordinance or resolution it has enacted in 36 response to the determination of invalidity will no longer 37 substantially interfere with the fulfillment of the goals of this 38 chapter under the standard in RCW 36.70A.302(1). p. 27 E2SHB 1181.SL 1 (5) The shoreline element of a comprehensive plan and the 2 applicable development regulations adopted by a county or city shall 3 take effect as provided in chapter 90.58 RCW. 4 (6) The greenhouse gas emissions reduction subelement required by 5 RCW 36.70A.070 shall take effect as provided in section 6 of this 6 act. 7 Sec. 9. RCW 36.70A.190 and 2022 c 252 s 5 are each amended to 8 read as follows: 9 (1) The department shall establish a program of technical and 10 financial assistance and incentives to counties and cities to 11 encourage and facilitate the adoption and implementation of 12 comprehensive plans and development regulations throughout the state. 13 (2) The department shall develop a priority list and establish 14 funding levels for planning and technical assistance grants both for 15 counties and cities that plan under RCW 36.70A.040. Priority for 16 assistance shall be based on a county's or city's population growth 17 rates, commercial and industrial development rates, the existence and 18 quality of a comprehensive plan and development regulations, the 19 presence of overburdened communities, and other relevant factors. The 20 department shall establish funding levels for grants to community- 21 based organizations for the specific purpose of advancing 22 participation of vulnerable populations and overburdened communities 23 in the planning_ process. 24 (3) The department shall develop and administer a grant program 25 to provide direct financial assistance to counties and cities for the 26 preparation of comprehensive plans under this chapter. The department 27 may establish provisions for county and city matching funds to 28 conduct activities under this subsection. Grants may be expended for 29 any purpose directly related to the preparation of a county or city 30 comprehensive plan as the county or city and the department may 31 agree, including, without limitation, the conducting of surveys, 32 inventories and other data gathering and management activities, the 33 retention of planning consultants, contracts with regional councils 34 for planning and related services, and other related purposes. 35 (4) The department shall establish a program of technical 36 assistance: 37 (a) Utilizing department staff, the staff of other state 38 agencies, and the technical resources of counties and cities to help 39 in the development of comprehensive plans required under this p. 28 E2SHB 1181.SL 1 chapter. The technical assistance may include, but not be limited to, 2 model land use ordinances, regional education and training programs, 3 and information for local and regional inventories; and 4 (b) Adopting by rule procedural criteria to assist counties and 5 cities in adopting comprehensive plans and development regulations 6 that meet the goals and requirements of this chapter. These criteria 7 shall reflect regional and local variations and the diversity that 8 exists among different counties and cities that plan under this 9 chapter. 10 (5) The department shall provide mediation services to resolve 11 disputes between counties and cities regarding, among other things, 12 coordination of regional issues and designation of urban growth 13 areas. 14 (6) The department shall provide services to facilitate the 15 timely resolution of disputes between a federally recognized Indian 16 tribe and a city or county. 17 (a) A federally recognized Indian tribe may request the 18 department to provide facilitation services to resolve issues of 19 concern with a proposed comprehensive plan and its development 20 regulations, or any amendment to the comprehensive plan and its 21 development regulations. 22 (b) Upon receipt of a request from a tribe, the department shall 23 notify the city or county of the request and offer to assist in 24 providing facilitation services to encourage resolution before 25 adoption of the proposed comprehensive plan. Upon receipt of the 26 notice from the department, the city or county must delay any final 27 action to adopt any comprehensive plan or any amendment or its 28 development regulations for at least 60 days. The tribe and the city 29 or county may jointly agree to extend this period by notifying the 30 department. A county or city must not be penalized for noncompliance 31 under this chapter due to any delays associated with this process. 32 (c) Upon receipt of a request, the department shall provide 33 comments to the county or city including a summary and supporting 34 materials regarding the tribe's concerns. The county or city may 35 either agree to amend the comprehensive plan as requested consistent 36 with the comments from the department, or enter into a facilitated 37 process with the tribe, which must be arranged by the department 38 using a suitable expert to be paid by the department. This 39 facilitated process may also extend the 60-day delay of adoption, 40 upon agreement of the tribe and the city or county. p. 29 E2SHB 1181.SL 1 (d) At the end of the 60-day period, unless by agreement there is 2 an extension of the 60-day period, the city or county may proceed 3 with adoption of the proposed comprehensive plan and development 4 regulations. The facilitator shall write a report of findings 5 describing the basis for agreements or disagreements that occurred 6 during the process that are allowed to be disclosed by the parties 7 and the resulting agreed -upon elements of the plan to be amended. 8 (7) The department shall provide planning grants to enhance 9 citizen participation under RCW 36.70A.140. 10 (8) The department shall develop, in collaboration with the 11 department of ecology, the department of fish and wildlife, the 12 department of natural resources, the department of health, the 13 emergency management division of the military department, as well as 14 any federally recognized tribe who chooses to voluntarily 15 participate, and adopt by rule guidance that creates a model climate 16 change and resiliency element that may be used by counties, cities, 17 and multiple -county planning regions for developing and implementing 18 climate change and resiliency plans and policies required by RCW 19 36.70A.070(9), subject to the following provisions: 20 (a) The model element must establish minimum requirements, and 21 may include model options or voluntary cross -jurisdictional 22 strategies, or both, for fulfilling the requirements of RCW 23 36.70A.070(9); 24 (b) The model element should provide guidance on identifying 25 designing, and investing in infrastructure that supports community 26 resilience to climate impacts, including the protection, restoration, 27 and enhancement of natural infrastructure as well as traditional 28 infrastructure and protecting and enhancing natural areas to foster 29 resiliency to climate impacts, as well as areas of vital habitat for 30 safe passage and species migration; 31 (c) The model element should provide guidance on identifying and 32 addressing natural hazards created or aggravated by climate change, 33 including sea level rise, landslides, flooding, drought, heat, smoke, 34 wildfires, and other effects of reasonably anticipated changes to 35 temperature and precipitation patterns; and 36 (d) The rule must recognize and promote as many cobenefits of 37 climate resilience as possible such as climate change mitigation, 38 salmon recovery, forest health, ecosystem services, and socioeconomic 39 health and resilience. p. 30 E2SHB 1181.SL 1 NEW SECTION. Sec. 10. A new section is added to chapter 47.80 2 RCW to read as follows: 3 The department shall compile, maintain, and publish a summary of 4 the per capita vehicle miles traveled annually in each city in the 5 state, and in the unincorporated portions of each county in the 6 state. 7 NEW SECTION. Sec. 11. A new section is added to chapter 90.58 8 RCW to read as follows: 9 The department shall update its shoreline master program 10 guidelines to require shoreline master programs to address the impact 11 of sea level rise and increased storm severity on people, property, 12 and shoreline natural resources and the environment. 13 Sec. 12. RCW 86.12.200 and 1991 c 322 s 3 are each amended to 14 read as follows: 15 The county legislative authority of any county may adopt a 16 comprehensive flood control management plan for any drainage basin 17 that is located wholly or partially within the county. 18 A comprehensive flood control management plan shall include the 19 following elements: 20 (1) Designation of areas that are susceptible to periodic 21 flooding, from inundation by bodies of water or surface water runoff, 22 or both, including the river's meander belt or floodway; 23 (2) Establishment of a comprehensive scheme of flood control 24 protection and improvements for the areas that are subject to such 25 periodic flooding, that includes: (a) Determining the need for, and 26 desirable location of, flood control improvements to protect or 27 preclude flood damage to structures, works, and improvements, based 28 upon a cost/benefit ratio between the expense of providing and 29 maintaining these improvements and the benefits arising from these 30 improvements; (b) establishing the level of flood protection that 31 each portion of the system of flood control improvements will be 32 permitted; (c) identifying alternatives to in -stream flood control 33 work; (d) identifying areas where flood waters could be directed 34 during a flood to avoid damage to buildings and other structures; and 35 (e) identifying sources of revenue that will be sufficient to finance 36 the comprehensive scheme of flood control protection and 37 improvements; p. 31 E2SHB 1181.SL 1 (3) Establishing land use regulations that preclude the location 2 of structures, works, or improvements in critical portions of such 3 areas subject to periodic flooding, including a river's meander belt 4 or floodway, and permitting only flood -compatible land uses in such 5 areas; 6 (4) Establishing restrictions on construction activities in areas 7 subject to periodic floods that require the flood proofing of those 8 structures that are permitted to be constructed or remodeled; ((gad)) 9 (5) Establishing restrictions on land clearing activities and 10 development practices that exacerbate flood problems by increasing 11 the flow or accumulation of flood waters, or the intensity of 12 drainage, on low-lying areas. Land clearing activities do not include 13 forest practices as defined in chapter 76.09 RCW; and 14 (6) Consideration of climate change impacts, including the impact 15 of sea level rise and increased storm severity on people, property, 16 natural resources, and the environment. 17 A comprehensive flood control management plan shall be subject to 18 the minimum requirements for participation in the national flood 19 insurance program, requirements exceeding the minimum national flood 20 insurance program that have been adopted by the department of ecology 21 for a specific floodplain pursuant to RCW 86.16.031, and rules 22 adopted by the department of ecology pursuant to RCW 86.26.050 23 relating to floodplain management activities. When a county plans 24 under chapter 36.70A RCW, it may incorporate the portion of its 25 comprehensive flood control management plan relating to land use 26 restrictions in its comprehensive plan and development regulations 27 adopted pursuant to chapter 36.70A RCW. 28 NEW SECTION. Sec. 13. A new section is added to chapter 43.21C 29 RCW to read as follows: 30 The adoption of ordinances, amendments to comprehensive plans, 31 amendments to development regulations, and other nonproject actions 32 taken by a county or city pursuant to RCW 36.70A.070(9) (d) or (e) in 33 order to implement measures specified by the department of commerce 34 pursuant to section 5 of this act are not subject to administrative 35 or judicial appeals under this chapter. 36 Sec. 14. RCW 36.70A.030 and 2021 c 254 s 6 are each amended to 37 read as follows: p. 32 E2SHB 1181.SL 1 Unless the context clearly requires otherwise, the definitions in 2 this section apply throughout this chapter. 3 (1) "Adopt a comprehensive land use plan" means to enact a new 4 comprehensive land use plan or to update an existing comprehensive 5 land use plan. 6 (2) "Affordable housing" means, unless the context clearly 7 indicates otherwise, residential housing whose monthly costs, 8 including utilities other than telephone, do not exceed thirty 9 percent of the monthly income of a household whose income is: 10 (a) For rental housing, ((sip)) 60 percent of the median 11 household income adjusted for household size, for the county where 12 the household is located, as reported by the United States department 13 of housing and urban development; or 14 (b) For owner -occupied housing, ((eighty)) 80 percent of the 15 median household income adjusted for household size, for the county 16 where the household is located, as reported by the United States 17 department of housing and urban development. 18 (3) "Agricultural land" means land primarily devoted to the 19 commercial production of horticultural, viticultural, floricultural, 20 dairy, apiary, vegetable, or animal products or of berries, grain, 21 hay, straw, turf, seed, Christmas trees not subject to the excise tax 22 imposed by RCW 84.33.100 through 84.33.140, finfish in upland 23 hatcheries, or livestock, and that has long-term commercial 24 significance for agricultural production. 25 (4) "City" means any city or town, including a code city. 26 (5) "Comprehensive land use plan," "comprehensive plan," or 27 "plan" means a generalized coordinated land use policy statement of 28 the governing body of a county or city that is adopted pursuant to 29 this chapter. 30 (6) "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) fish and wildlife habitat conservation 33 areas; (d) frequently flooded areas; and (e) geologically hazardous 34 areas. "Fish and wildlife habitat conservation areas" does not 35 include such artificial features or constructs as irrigation delivery 36 systems, irrigation infrastructure, irrigation canals, or drainage 37 ditches that lie within the boundaries of and are maintained by a 38 port district or an irrigation district or company. 39 (7) "Department" means the department of commerce. p. 33 E2SHB 1181.SL 1 (8) "Development regulations" or "regulation" means the controls 2 placed on development or land use activities by a county or city, 3 including, but not limited to, zoning ordinances, critical areas 4 ordinances, shoreline master programs, official controls, planned 5 unit development ordinances, subdivision ordinances, and binding site 6 plan ordinances together with any amendments thereto. A development 7 regulation does not include a decision to approve a project permit 8 application, as defined in RCW 36.70B.020, even though the decision 9 may be expressed in a resolution or ordinance of the legislative body 10 of the county or city. 11 (9) "Emergency housing" means temporary indoor accommodations for 12 individuals or families who are homeless or at imminent risk of 13 becoming homeless that is intended to address the basic health, food, 14 clothing, and personal hygiene needs of individuals or families. 15 Emergency housing may or may not require occupants to enter into a 16 lease or an occupancy agreement. 17 (10) "Emergency shelter" means a facility that provides a 18 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) "Extremely low-income household" means a single person, 24 family, or unrelated persons living together whose adjusted income is 25 at or below thirty 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 (12) "Forestland" means land primarily devoted to growing trees 30 for long-term commercial timber production on land that can be 31 economically and practically managed for such production, including 32 Christmas trees subject to the excise tax imposed under RCW 84.33.100 33 through 84.33.140, and that has long-term commercial significance. In 34 determining whether forestland is primarily devoted to growing trees 35 for long-term commercial timber production on land that can be 36 economically and practically managed for such production, the 37 following factors shall be considered: (a) The proximity of the land 38 to urban, suburban, and rural settlements; (b) surrounding parcel 39 size and the compatibility and intensity of adjacent and nearby land 40 uses; (c) long-term local economic conditions that affect the ability p. 34 E2SHB 1181.SL 1 to manage for timber production; and (d) the availability of public 2 facilities and services conducive to conversion of forestland to 3 other uses. 4 (13) "Freight rail dependent uses" means buildings and other 5 infrastructure that are used in the fabrication, processing, storage, 6 and transport of goods where the use is dependent on and makes use of 7 an adjacent short line railroad. Such facilities are both urban and 8 rural development for purposes of this chapter. "Freight rail 9 dependent uses" does not include buildings and other infrastructure 10 that are used in the fabrication, processing, storage, and transport 11 of coal, liquefied natural gas, or "crude oil" as defined in RCW 12 90.56.010. 13 (14) "Geologically hazardous areas" means areas that because of 14 their susceptibility to erosion, sliding, earthquake, or other 15 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) "Long-term commercial significance" includes the growing 19 capacity, productivity, and soil composition of the land for long- 20 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) "Low-income household" means a single person, family, or 24 unrelated persons living together whose adjusted income is at or 25 below eighty percent of the median household income adjusted for 26 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) "Minerals" include gravel, sand, and valuable metallic 30 substances. 31 (18) "Moderate -income household" means a single person, family, 32 or unrelated persons living together whose adjusted income is at or 33 below 120 percent of the median household income adjusted for 34 household size, for the county where the household is located, as 35 reported by the United States department of housing and urban 36 development. 37 (19) "Permanent supportive housing" is subsidized, leased housing 38 with no limit on length of stay that prioritizes people who need 39 comprehensive support services to retain tenancy and utilizes 40 admissions practices designed to use lower barriers to entry than p. 35 E2SHB 1181.SL 1 would be typical for other subsidized or unsubsidized rental housing, 2 especially related to rental history, criminal history, and personal 3 behaviors. Permanent supportive housing is paired with on -site or 4 off -site voluntary services designed to support a person living with 5 a complex and disabling behavioral health or physical health 6 condition who was experiencing homelessness or was at imminent risk 7 of homelessness prior to moving into housing to retain their housing 8 and be a successful tenant in a housing arrangement, improve the 9 resident's health status, and connect the resident of the housing 10 with community -based health care, treatment, or employment services. 11 Permanent supportive housing is subject to all of the rights and 12 responsibilities defined in chapter 59.18 RCW. 13 (20) "Public facilities" include streets, roads, highways, 14 sidewalks, street and road lighting systems, traffic signals, 15 domestic water systems, storm and sanitary sewer systems, parks and 16 recreational facilities, and schools. 17 (21) "Public services" include fire protection and suppression, 18 law enforcement, public health, education, recreation, environmental 19 protection, and other governmental services. 20 (22) "Recreational land" means land so designated under RCW 21 36.70A.1701 and that, immediately prior to this designation, was 22 designated as agricultural land of long-term commercial significance 23 under RCW 36.70A.170. Recreational land must have playing fields and 24 supporting facilities existing before July 1, 2004, for sports played 25 on grass playing fields. 26 (23) "Rural character" refers to the patterns of land use and 27 development established by a county in the rural element of its 28 comprehensive plan: 29 (a) In which open space, the natural landscape, and vegetation 30 predominate over the built environment; 31 (b) That foster traditional rural lifestyles, rural -based 32 economies, and opportunities to both live and work in rural areas; 33 (c) That provide visual landscapes that are traditionally found 34 in rural areas and communities; 35 (d) That are compatible with the use of the land by wildlife and 36 for fish and wildlife habitat; 37 (e) That reduce the inappropriate conversion of undeveloped land 38 into sprawling, low -density development; 39 (f) That generally do not require the extension of urban 40 governmental services; and p. 36 E2SHB 1181.SL 1 (g) That are consistent with the protection of natural surface 2 water flows and groundwater and surface water recharge and discharge 3 areas. 4 (24) "Rural development" refers to development outside the urban 5 growth area and outside agricultural, forest, and mineral resource 6 lands designated pursuant to RCW 36.70A.170. Rural development can 7 consist of a variety of uses and residential densities, including 8 clustered residential development, at levels that are consistent with 9 the preservation of rural character and the requirements of the rural 10 element. Rural development does not refer to agriculture or forestry 11 activities that may be conducted in rural areas. 12 (25) "Rural governmental services" or "rural services" include 13 those public services and public facilities historically and 14 typically delivered at an intensity usually found in rural areas, and 15 may include domestic water systems, fire and police protection 16 services, transportation and public transit services, and other 17 public utilities associated with rural development and normally not 18 associated with urban areas. Rural services do not include storm or 19 sanitary sewers, except as otherwise authorized by RCW 36.70A.110(4). 20 (26) "Short line railroad" means those railroad lines designated 21 class II or class III by the United States surface transportation 22 board. 23 (27) "Urban governmental services" or "urban services" include 24 those public services and public facilities at an intensity 25 historically and typically provided in cities, specifically including 26 storm and sanitary sewer systems, domestic water systems, street 27 cleaning services, fire and police protection services, public 28 transit services, and other public utilities associated with urban 29 areas and normally not associated with rural areas. 30 (28) "Urban growth" refers to growth that makes intensive use of 31 land for the location of buildings, structures, and impermeable 32 surfaces to such a degree as to be incompatible with the primary use 33 of land for the production of food, other agricultural products, or 34 fiber, or the extraction of mineral resources, rural uses, rural 35 development, and natural resource lands designated pursuant to RCW 36 36.70A.170. A pattern of more intensive rural development, as 37 provided in RCW 36.70A.070(5)(d), is not urban growth. When allowed 38 to spread over wide areas, urban growth typically requires urban 39 governmental services. "Characterized by urban growth" refers to land 40 having urban growth located on it, or to land located in relationship p. 37 E2SHB 1181.SL 1 to an area with urban growth on it as to be appropriate for urban 2 growth. 3 (29) "Urban growth areas" means those areas designated by a 4 county pursuant to RCW 36.70A.110. 5 (30) "Very low-income household" means a single person, family, 6 or unrelated persons living together whose adjusted income is at or 7 below fifty percent of the median household income adjusted for 8 household size, for the county where the household is located, as 9 reported by the United States department of housing and urban 10 development. 11 (31) "Wetland" or "wetlands" means areas that are inundated or 12 saturated by surface water or groundwater at a frequency and duration 13 sufficient to support, and that under normal circumstances do 14 support, a prevalence of vegetation typically adapted for life in 15 saturated soil conditions. Wetlands generally include swamps, 16 marshes, bogs, and similar areas. Wetlands do not include those 17 artificial wetlands intentionally created from nonwetland sites, 18 including, but not limited to, irrigation and drainage ditches, 19 grass -lined swales, canals, detention facilities, wastewater 20 treatment facilities, farm ponds, and landscape amenities, or those 21 wetlands created after July 1, 1990, that were unintentionally 22 created as a result of the construction of a road, street, or 23 highway. Wetlands may include those artificial wetlands intentionally 24 created from nonwetland areas created to mitigate conversion of 25 wetlands. 26 (32) "Per capita vehicle miles traveled" means the number of 27 miles traveled using cars and light trucks in a calendar year divided 28 by the number of residents in Washington. The calculation of this 29 value excludes vehicle miles driven conveying freight. 30 (33) "Active transportation" means forms of pedestrian mobility 31 including walking or running, the use of a mobility assistive device 32 such as a wheelchair, bicycling and cycling irrespective of the 33 number of wheels, and the use of small personal devices such as foot 34 scooters or skateboards. Active transportation includes both 35 traditional and electric assist bicycles and other devices. Planning 36 for active transportation must consider and address accommodation 37 pursuant to the Americans with disabilities act and the distinct 38 needs of each form of active transportation. 39 (34) "Transportation system" means all infrastructure and 40 services for all forms of transportation within a geographical area, p. 38 E2SHB 1181.SL 1 irrespective of the responsible jurisdiction or transportation 2 provider. 3 (35) "Environmental justice" means the fair treatment and 4 meaningful involvement of all people regardless of race, color, 5 national origin, or income with respect to development, 6 implementation, and enforcement of environmental laws, regulations, 7 and policies. Environmental justice includes addressing 8 disproportionate environmental and health impacts in all laws, rules, 9 and policies with environmental impacts by prioritizing vulnerable 10 populations and overburdened communities and the equitable 11 distribution of resources and benefits. 12 (36) "Active transportation facilities" means facilities provided 13 for the safety and mobility of active transportation users including 14 but not limited to, trails, as defined in RCW 47.30.005, sidewalks, 15 bike lanes, shared -use paths, and other facilities in the public 16 right-of-way. 17 (37) "Green space" means an area of land, vegetated by natural 18 features such as grass, trees, or shrubs, within an urban context and 19 less than one acre in size that creates public value through one or 20 more of the following attributes: 21 (a) Is accessible to the public; 22 (b) Promotes physical and mental health of residents; 23 (c) Provides relief from the urban heat island effects; 24 (d) Promotes recreational and aesthetic values; 25 (e) Protects streams or water supply; or 26 (f) Preserves visual quality along highway, road, or street 27 corridors. 28 (38) "Green infrastructure" means a wide array of natural assets 29 and built structures within an urban growth area boundary, including 30 parks and other areas with protected tree canopy, and management 31 practices at multiple scales that manage wet weather and that 32 maintain and restore natural hydrology by storing, infiltrating 33 evapotranspiring, and harvesting and using stormwater. 34 (39) "Wildland urban interface" means the geographical area where 35 structures and other human development meets or intermingles with 36 wildland vegetative fuels. 37 (40) "Overburdened community" means a geographic area where 38 vulnerable populations face combined, multiple environmental harms 39 and health impacts, and includes, but is not limited to, highly 40 impacted communities as defined in RCW 19.405.020. p. 39 E2SHB 1181.SL 1 (41)(a) "Vulnerable populations" means population groups that are 2 more likely to be at higher risk for poor health outcomes in response 3 to environmental harms, due to: (i) Adverse socioeconomic factors, 4 such as unemployment, high housing and transportation costs relative 5 to income, limited access to nutritious food and adequate health 6 care, linguistic isolation, and other factors that negatively affect 7 health outcomes and increase vulnerability to the effects of 8 environmental harms; and (ii) sensitivity factors, such as low birth 9 weight and higher rates of hospitalization. 10 (b) "Vulnerable populations" includes, but is not limited to: 11 (i) Racial or ethnic minorities; 12 (ii) Low-income populations; and 13 (iii) Populations disproportionately impacted by environmental 14 harms. 15 Sec. 15. RCW 36.70A.130 and 2022 c 287 s 1 and 2022 c 192 s 1 16 are each reenacted and amended to read as follows: 17 (1)(a) Each comprehensive land use plan and development 18 regulations shall be subject to continuing review and evaluation by 19 the county or city that adopted them. Except as otherwise provided, a 20 county or city shall take legislative action to review and, if 21 needed, revise its comprehensive land use plan and development 22 regulations to ensure the plan and regulations comply with the 23 requirements of this chapter according to the deadlines in 24 subsections (4) and (5) of this section. 25 (b) Except as otherwise provided, a county or city not planning 26 under RCW 36.70A.040 shall take action to review and, if needed, 27 revise its policies and development regulations regarding critical 28 areas and natural resource lands adopted according to this chapter to 29 ensure these policies and regulations comply with the requirements of 30 this chapter according to the deadlines in subsections (4) and (5) of 31 this section. Legislative action means the adoption of a resolution 32 or ordinance following notice and a public hearing indicating at a 33 minimum, a finding that a review and evaluation has occurred and 34 identifying the revisions made, or that a revision was not needed and 35 the reasons therefor. 36 (c) The review and evaluation required by this subsection shall 37 include, but is not limited to, consideration of critical area 38 ordinances and, if planning under RCW 36.70A.040, an analysis of the p. 40 E2SHB 1181.SL 1 population allocated to a city or county from the most recent Hten)) 2 10-year population forecast by the office of financial management. 3 (d) Any amendment of or revision to a comprehensive land use plan 4 shall conform to this chapter. Any amendment of or revision to 5 development regulations shall be consistent with and implement the 6 comprehensive plan. 7 (2)(a) Each county and city shall establish and broadly 8 disseminate to the public a public participation program consistent 9 with RCW 36.70A.035 and 36.70A.140 that identifies procedures and 10 schedules whereby updates, proposed amendments, or revisions of the 11 comprehensive plan are considered by the governing body of the county 12 or city no more frequently than once every year. "Updates" means to 13 review and revise, if needed, according to subsection (1) of this 14 section, and the deadlines in subsections (4) and (5) of this section 15 or in accordance with the provisions of subsection (6) of this 16 section. Amendments may be considered more frequently than once per 17 year under the following circumstances: 18 (i) The initial adoption of a subarea plan. Subarea plans adopted 19 under this subsection (2)(a)(i) must clarify, supplement, or 20 implement jurisdiction -wide comprehensive plan policies, and may only 21 be adopted if the cumulative impacts of the proposed plan are 22 addressed by appropriate environmental review under chapter 43.21C 23 RCW; 24 (ii) The development of an initial subarea plan for economic 25 development located outside of the one hundred year floodplain in a 26 county that has completed a state -funded pilot project that is based 27 on watershed characterization and local habitat assessment; 28 (iii) The adoption or amendment of a shoreline master program 29 under the procedures set forth in chapter 90.58 RCW; 30 (iv) The amendment of the capital facilities element of a 31 comprehensive plan that occurs concurrently with the adoption or 32 amendment of a county or city budget; or 33 (v) The adoption of comprehensive plan amendments necessary to 34 enact a planned action under RCW 43.21C.440, provided that amendments 35 are considered in accordance with the public participation program 36 established by the county or city under this subsection (2)(a) and 37 all persons who have requested notice of a comprehensive plan update 38 are given notice of the amendments and an opportunity to comment. 39 (b) Except as otherwise provided in (a) of this subsection, all 40 proposals shall be considered by the governing body concurrently so p. 41 E2SHB 1181.SL 1 the cumulative effect of the various proposals can be ascertained. 2 However, after appropriate public participation a county or city may 3 adopt amendments or revisions to its comprehensive plan that conform 4 with this chapter whenever an emergency exists or to resolve an 5 appeal of a comprehensive plan filed with the growth management 6 hearings board or with the court. 7 (3)(a) Each county that designates urban growth areas under RCW 8 36.70A.110 shall review, according to the schedules established in 9 subsections (4) and (5) of this section, its designated urban growth 10 area or areas, patterns of development occurring within the urban 11 growth area or areas, and the densities permitted within both the 12 incorporated and unincorporated portions of each urban growth area. 13 In conjunction with this review by the county, each city located 14 within an urban growth area shall review the densities permitted 15 within its boundaries, and the extent to which the urban growth 16 occurring within the county has located within each city and the 17 unincorporated portions of the urban growth areas. 18 (b) The county comprehensive plan designating urban growth areas, 19 and the densities permitted in the urban growth areas by the 20 comprehensive plans of the county and each city located within the 21 urban growth areas, shall be revised to accommodate the urban growth 22 projected to occur in the county for the succeeding ((twenty)) 20- 23 year period. The review required by this subsection may be combined 24 with the review and evaluation required by RCW 36.70A.215. 25 (c) If, during the county's review under (a) of this subsection, 26 the county determines revision of the urban growth area is not 27 required to accommodate the urban growth projected to occur in the 28 county for the succeeding 20-year period, but does determine that 29 patterns of development have created pressure in areas that exceed 30 available, developable lands within the urban growth area, the urban 31 growth area or areas may be revised to accommodate identified 32 patterns of development and likely future development pressure for 33 the succeeding 20-year period if the following requirements are met: 34 (i) The revised urban growth area may not result in an increase 35 in the total surface areas of the urban growth area or areas; 36 (ii) The areas added to the urban growth area are not or have not 37 been designated as agricultural, forest, or mineral resource lands of 38 long-term commercial significance; 39 (iii) Less than 15 percent of the areas added to the urban growth 40 area are critical areas; p. 42 E2SHB 1181.SL 1 (iv) The areas added to the urban growth areas are suitable for 2 urban growth; 3 (v) The transportation element and capital facility plan element 4 have identified the transportation facilities, and public facilities 5 and services needed to serve the urban growth area and the funding to 6 provide the transportation facilities and public facilities and 7 services; 8 (vi) The urban growth area is not larger than needed to 9 accommodate the growth planned for the succeeding 20-year planning 10 period and a reasonable land market supply factor; 11 (vii) The areas removed from the urban growth area do not include 12 urban growth or urban densities; and 13 (viii) The revised urban growth area is contiguous, does not 14 include holes or gaps, and will not increase pressures to urbanize 15 rural or natural resource lands. 16 (4) Except as otherwise provided in subsections (6) and (8) of 17 this section, counties and cities shall take action to review and, if 18 needed, revise their comprehensive plans and development regulations 19 to ensure the plan and regulations comply with the requirements of 20 this chapter as follows: 21 (a) On or before June 30, 2015, for King, Pierce, and Snohomish 22 counties and the cities within those counties; 23 (b) On or before June 30, 2016, for Clallam, Clark, Island, 24 Jefferson, Kitsap, Mason, San Juan, Skagit, Thurston, and Whatcom 25 counties and the cities within those counties; 26 (c) On or before June 30, 2017, for Benton, Chelan, Cowlitz, 27 Douglas, Kittitas, Lewis, Skamania, Spokane, and Yakima counties and 28 the cities within those counties; and 29 (d) On or before June 30, 2018, for Adams, Asotin, Columbia, 30 Ferry, Franklin, Garfield, Grant, Grays Harbor, Klickitat, Lincoln, 31 Okanogan, Pacific, Pend Oreille, Stevens, Wahkiakum, Walla Walla, and 32 Whitman counties and the cities within those counties. 33 (5) Except as otherwise provided in subsections (6) and (8) of 34 this section, following the review of comprehensive plans and 35 development regulations required by subsection (4) of this section, 36 counties and cities shall take action to review and, if needed, 37 revise their comprehensive plans and development regulations to 38 ensure the plan and regulations comply with the requirements of this 39 chapter as follows: p. 43 E2SHB 1181.SL 1 (a) ((An)) Except as provided in subsection (10) of this section, 2 on or before December 31, 2024, with the following review and, if 3 needed, revision on or before June 30, 2034, and then every ((ten)) 4 10 years thereafter, for King, Kitsap, Pierce, and Snohomish counties 5 and the cities within those counties; 6 (b) On or before June 30, 2025, and every ((ten)) 10 years 7 thereafter, for Clallam, Clark, Island, Jefferson, Lewis, Mason, San 8 Juan, Skagit, Thurston, and Whatcom counties and the cities within 9 those counties; 10 (c) On or before June 30, 2026, and every ((ten)) 10 years 11 thereafter, for Benton, Chelan, Cowlitz, Douglas, Franklin, Kittitas, 12 Skamania, Spokane, Walla Walla, and Yakima counties and the cities 13 within those counties; and 14 (d) On or before June 30, 2027, and every ((ten)) 10 years 15 thereafter, for Adams, Asotin, Columbia, Ferry, Garfield, Grant, 16 Grays Harbor, Klickitat, Lincoln, Okanogan, Pacific, Pend Oreille, 17 Stevens, Wahkiakum, and Whitman counties and the cities within those 18 counties. 19 (6)(a) Nothing in this section precludes a county or city from 20 conducting the review and evaluation required by this section before 21 the deadlines established in subsections (4) and (5) of this section. 22 Counties and cities may begin this process early and may be eligible 23 for grants from the department, subject to available funding, if they 24 elect to do so. 25 (b) A county that is subject to a deadline established in 26 subsection (5)(b) through (d) of this section and meets the following 27 criteria may comply with the requirements of this section at any time 28 within the twenty-four months following the deadline established in 29 subsection (5) of this section: The county has a population of less 30 than fifty thousand and has had its population increase by no more 31 than seventeen percent in the ten years preceding the deadline 32 established in subsection (5) of this section as of that date. 33 (c) A city that is subject to a deadline established in 34 subsection (5)(b) through (d) of this section and meets the following 35 criteria may comply with the requirements of this section at any time 36 within the twenty-four months following the deadline established in 37 subsection (5) of this section: The city has a population of no more 38 than five thousand and has had its population increase by the greater 39 of either no more than one hundred persons or no more than seventeen p. 44 E2SHB 1181.SL 1 percent in the ten years preceding the deadline established in 2 subsection (5) of this section as of that date. 3 (d) State agencies are encouraged to provide technical assistance 4 to the counties and cities in the review of critical area ordinances, 5 comprehensive plans, and development regulations. 6 (7)(a) The requirements imposed on counties and cities under this 7 section shall be considered "requirements of this chapter" under the 8 terms of RCW 36.70A.040(1). Only those counties and cities that meet 9 the following criteria may receive grants, loans, pledges, or 10 financial guarantees under chapter 43.155 or 70A.135 RCW: 11 (i) Complying with the deadlines in this section; or 12 (ii) Demonstrating substantial progress towards compliance with 13 the schedules in this section for development regulations that 14 protect critical areas. 15 (b) A county or city that is fewer than ((tee)) 12 months out 16 of compliance with the schedules in this section for development 17 regulations that protect critical areas is making substantial 18 progress towards compliance. Only those counties and cities in 19 compliance with the schedules in this section may receive preference 20 for grants or loans subject to the provisions of RCW 43.17.250. 21 (8)(a) Except as otherwise provided in (c) of this subsection, if 22 a participating watershed is achieving benchmarks and goals for the 23 protection of critical areas functions and values, the county is not 24 required to update development regulations to protect critical areas 25 as they specifically apply to agricultural activities in that 26 watershed. 27 28 29 30 31 32 (b) A county that has made the election under RCW 36.70A.710 (1) may only adopt or amend development regulations to protect critical areas as they specifically apply to agricultural activities in a participating watershed if: (i) A work plan has been accordance with RCW 36.70A.725; approved for that watershed in 33 (ii) The local watershed group for that watershed has requested 34 the county to adopt or amend development regulations as part of a 35 work plan developed under RCW 36.70A.720; 36 (iii) The adoption or amendment of the development regulations is 37 necessary to enable the county to respond to an order of the growth 38 management hearings board or court; 39 (iv) The adoption or amendment of development regulations is 40 necessary to address a threat to human health or safety; or p. 45 E2SHB 1181.SL 1 (v) Three or more years have elapsed since the receipt of 2 funding. 3 (c) Beginning ((tell)) 10 years from the date of receipt of 4 funding, a county that has made the election under RCW 36.70A.710(1) 5 must review and, if necessary, revise development regulations to 6 protect critical areas as they specifically apply to agricultural 7 activities in a participating watershed in accordance with the review 8 and revision requirements and timeline in subsection (5) of this 9 section. This subsection (8)(c) does not apply to a participating 10 watershed that has determined under RCW 36.70A.720(2)(c)(ii) that the 11 watershed's goals and benchmarks for protection have been met. 12 (9)(a) Counties subject to planning deadlines established in 13 subsection (5) of this section that are required or that choose to 14 plan under RCW 36.70A.040 and that meet either criteria of (a)(i) or 15 (ii) of this subsection, and cities with a population of more than 16 6,000 as of April 1, 2021, within those counties, must provide to the 17 department an implementation progress report detailing the progress 18 they have achieved in implementing their comprehensive plan five 19 years after the review and revision of their comprehensive plan. Once 20 a county meets the criteria in (a)(i) or (ii) of this subsection, the 21 implementation progress report requirements remain in effect 22 thereafter for that county and the cities therein with populations 23 greater than 6,000 as of April 1, 2021, even if the county later no 24 longer meets either or both criteria. A county is subject to the 25 implementation progress report requirement if it meets either of the 26 following criteria on or after April 1, 2021: 27 (i) The county has a population density of at least 100 people 28 per square mile and a population of at least 200,000; or 29 (ii) The county has a population density of at least 75 people 30 per square mile and an annual growth rate of at least 1.75 percent as 31 determined by the office of financial management. 32 (b) The department shall adopt guidelines for indicators, 33 measures, milestones, and criteria for use by counties and cities in 34 the implementation progress report that must cover: 35 (i) The implementation of previously adopted changes to the 36 housing element and any effect those changes have had on housing 37 affordability and availability within the jurisdiction; 38 (ii) Permit processing timelines; and 39 (iii) Progress toward implementing any actions required to 40 achieve reductions to meet greenhouse gas and vehicle miles traveled p. 46 E2SHB 1181.SL 1 requirements as provided for in any element of the comprehensive plan 2 under RCW 36.70A.070. 3 (c) If a city or county required to provide an implementation 4 progress report under this subsection (9) has not implemented any 5 specifically identified regulations, zoning and land use changes, or 6 taken other legislative or administrative action necessary to 7 implement any changes in the most recent periodic update in their 8 comprehensive plan by the due date for the implementation progress 9 report, the city or county must identify the need for such action in 10 the implementation progress report. Cities and counties must adopt a 11 work plan to implement any necessary regulations, zoning and land use 12 changes, or take other legislative or administrative action 13 identified in the implementation progress report and complete all 14 work necessary for implementation within two years of submission of 15 the implementation progress report. 16 (10) Any county or city that is required by section 4 of this act 17 to include in its comprehensive plan a climate change and resiliency 18 element and that is also required by subsection (5)(a) of this 19 section to review and, if necessary, revise its comprehensive plan on 20 or before December 31, 2024, must update its transportation element 21 and incorporate a climate change and resiliency element into its 22 comprehensive plan as part of the first implementation progress 23 report required by subsection (9) of this section if funds are 24 appropriated and distributed by December 31. 2027. as required under 25 RCW 36.70A.070(10 26 NEW SECTION. Sec. 16. A new section is added to chapter 36.70A 27 RCW to read as follows: 28 (1) Notwithstanding the requirements of RCW 36.70A.070(10), it is 29 the intent that jurisdictions subject to RCW 36.70A.130(5)(b) 30 implement the requirements of this act on or before June 30, 2025. 31 Any funding provided to cover applicable local government costs 32 related to implementation of this act shall be considered timely. 33 (2) This section expires July 31, 2025. 34 NEW SECTION. Sec. 17. A new section is added to chapter 43.20 35 RCW to read as follows: 36 (1)(a) Beginning with water system plans initiated after June 30, 37 2025, the department shall ensure water system plans for group A p. 47 E2SHB 1181.SL 1 community public water systems serving 1,000 or more connections 2 include a climate resilience element at the time of approval. 3 (b) The department must update its water system planning 4 guidebook to assist water systems in implementing the climate 5 resilience element, including guidance on any available technical and 6 financial resources. 7 (c) The department shall provide technical assistance to public 8 water systems based on their system size, location, and water source, 9 by providing references to existing state or federal risk management, 10 climate resiliency, or emergency management and response tools that 11 may be used to satisfy the climate resilience element. 12 (d) Subject to the availability of amounts appropriated for this 13 specific purpose, the University of Washington climate impacts group 14 shall assist the department in the development of tools for the 15 technical assistance to be provided in (c) of this subsection. 16 (2) To fulfill the requirements of the climate resilience 17 element, water systems must: 18 (a) Determine which extreme weather events pose significant 19 challenges to their system and build scenarios to identify potential 20 impacts; 21 (b) Assess critical assets and the actions necessary to protect 22 the system from the consequences of extreme weather events on system 23 operations; and 24 (c) Generate reports describing the costs and benefits of the 25 system's risk reduction strategies and capital project needs. 26 (3) Climate readiness projects, including planning to meet the 27 requirements of this section and actions to protect a water system 28 from extreme weather events, including infrastructure and design 29 projects, are eligible for financial assistance under RCW 30 70A.125.180. The department must develop grant and loan eligibility 31 criteria and consider applications from water systems that identify 32 climate readiness projects. 33 Sec. 18. RCW 70A.125.180 and 2020 c 20 s 1359 are each amended 34 to read as follows: 35 Subject to the availability of amounts appropriated for this 36 specific purpose, the department shall provide financial assistance 37 through a water system acquisition and rehabilitation program, hereby 38 created. ( (The laregrafft shall be jeintl1 ael inistereel with the . _lie 39 werks beard and the delaartment ef eefftffteree.)) The ((ageneies)) p. 48 E2SHB 1181.SL 1 department shall adopt guidelines for the program using as a model 2 the procedures and criteria of the drinking water revolving loan 3 program authorized under RCW 70A.125.160. All financing provided 4 through the program must be in the form of grants or loans that 5 partially cover project costs, including projects and planning 6 required under section 17 of this act. The maximum grant or loan to 7 any eligible entity may not exceed ((twenty �F'_.e) ) 25 percent of the 8 funds allocated to the appropriation in any fiscal year. 9 NEW SECTION. Sec. 19. If specific funding for the purposes of 10 this act, referencing this act by bill or chapter number, is not 11 provided by June 30, 2023, in the omnibus appropriations act, this 12 act is null and void. Passed by the House April 13, 2023. Passed by the Senate April 7, 2023. Approved by the Governor May 3, 2023. Filed in Office of Secretary of State May 4, 2023. --- END --- p. 49 E2SHB 1181.SL CITY OF SPOKANE VALLEY Request for Planning Commission Action Meeting Date: August 24, 2023 Item: Check all that apply ❑ old business ❑ new business ❑ public hearing ❑ information ® study session ❑ pending legislation AGENDA ITEM TITLE: HB 1042 — Use of Existing Buildings for Residential Purposes GOVERNING LEGISLATION: Chapters 19.27A, 35.21, 35A.21, 43.21C RCW PREVIOUS COMMISSION ACTION: None BACKGROUND: Engrossed Substitute House Bill 1042, Use of Existing Buildings for Residential Purposes, was signed into law on May 4, 2023. The city must adopt development regulations to implement the new law by December 31, 2026 Under this new legislation, the city must allow for a 50% increase in density if constructed entirely within an existing building, provided the zone permits multifamily housing. All health and safety standards, including building code standards and fire and life safety standards must be met. Under this new legislation the city may not: • Impose parking requirements on the dwelling units added; • With the exception of emergency housing and transitional housing uses, impose permitting requirements on the use of an existing building for residential purposes beyond those requirements applicable to all residential development within the building's zone; • Impose design standard requirements on the use of an existing building for residential purposes beyond those requirements applicable to all residential development within the building's zone; • Impose exterior design or architectural requirements on the residential use of an existing building beyond those necessary for health and safety of the use of the interior of the building or to preserve character -defining streetscapes, unless the building is a designated landmark or is within a historic district established through a local preservation ordinance; • Prohibit the addition of housing units in any specific part of a building except ground floor commercial or retail that is along a major pedestrian corridor as defined by the code city; • Require unchanged portions of an existing building used for residential purposes to meet the current energy code solely because of the addition of new dwelling units within the building; • Deny a building permit application for the addition of housing units within an existing building due to nonconformity regarding parking, height, setbacks, elevator size for gurney transport, or modulation, unless the code city official with decision -making authority makes written findings that the nonconformity is causing a significant detriment to the surrounding area; • Require transportation concurrency study under RCW 36.70A.070 or an environmental study under chapter 43.21C RCW based on the addition of residential units within an existing building. Nothing in this legislation requires a city or county to approve the addition of housing units in cases in which the building cannot satisfy life safety standards. ACTION OR MOTION: No action recommended at this time. STAFF CONTACT: Levi Basinger, Planner ATTACHMENTS: HB 1042 Session Law RPCA Study Session for HE 1042 Use of Existing Buildings for Residential Purposes Page 1 of l [a)0l 4008:0C AN0to]411W01 Mal INN amahhYY ENGROSSED SUBSTITUTE HOUSE BILL 1042 Chapter 285, Laws of 2023 68th Legislature 2023 Regular Session L801aWi1M00N69Yski, [m 181*a03841,M�001M00&1@ W41,00I_\00•1S1:70i1,9W EFFECTIVE DATE: July 23, 2023 Passed by the House April 14, 2023 Yeas 96 Nays 0 LAURIE JINKINS Speaker of the House of Representatives Passed by the Senate April 5, 2023 Yeas 45 Nays 3 DENNY HECK President of the Senate Approved May 4, 2023 3:07 PM JAY INSLEE Governor of the State of Washington CERTIFICATE I, Bernard Dean, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is ENGROSSED SUBSTITUTE HOUSE BILL 1042 as passed by the House of Representatives and the Senate on the dates hereon set forth. BERNARD DEAN Chief Clerk FILED May 5, 2023 Secretary of State State of Washington ENGROSSED SUBSTITUTE HOUSE BILL 1042 AS AMENDED BY THE SENATE Passed Legislature - 2023 Regular Session State of Washington 68th Legislature 2023 Regular Session By House Housing (originally sponsored by Representatives Walen, Ryu, Barkis, Simmons, Duerr, Goodman, Bateman, Reed, Ramel, Peterson, Pollet, Doglio, Macri, Reeves, Mena, Tharinger, Wylie, Gregerson, Springer, Bergquist, Thai, Kloba, Santos, and Ormsby) READ FIRST TIME O1/23/23. 1 AN ACT Relating to the creation of additional housing units in 2 existing buildings; amending RCW 43.21C.450; adding a new section to 3 chapter 35A.21 RCW; adding a new section to chapter 35.21 RCW; and 4 adding a new section to chapter 19.27A RCW. 5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON: 0 7 8 9 10 11 12 13 14 15 16 NEW SECTION. Sec. 1. A new section is added to chapter 35A.21 RCW to read as follows: (1)(a) Code cities must adopt or amend by ordinance, and incorporate into their development regulations, zoning regulations, and other official controls the requirements of subsection (2) of this section for buildings that are zoned for commercial or mixed use no later than six months after its next periodic comprehensive plan update required under RCW 36.70A.130. (b) The requirements of subsection (2) of this section apply and take effect in any code city that has not adopted or amended ordinances, regulations, or other official controls as required under this section by the timeline in (a) of this subsection and supersede, preempt, and invalidate any conflicting local development regulations. P. 1 ESHB 1042.SL 1 (2) Through ordinances, development regulations, zoning 2 regulations, or other official controls as required under subsection 3 (1) of this section, code cities may not: 4 (a) Impose a restriction on housing unit density that prevents 5 the addition of housing units at a density up to 50 percent more than 6 what is allowed in the underlying zone if constructed entirely within 7 an existing building envelope in a building located within a zone 8 that permits multifamily housing, provided that generally applicable 9 health and safety standards, including but not limited to building 10 code standards and fire and life safety standards, can be met within 11 the building; 12 (b) Impose parking requirements on the addition of dwelling units 13 or living units added within an existing building, however, cities 14 may require the retention of existing parking that is required to 15 satisfy existing residential parking requirements under local laws 16 and for nonresidential uses that remain after the new units are 17 added; 18 (c) With the exception of emergency housing and transitional 19 housing uses, impose permitting requirements on the use of an 20 existing building for residential purposes beyond those requirements 21 generally applicable to all residential development within the 22 building's zone; 23 (d) Impose design standard requirements, including setbacks, lot 24 coverage, and floor area ratio requirements, on the use of an 25 existing building for residential purposes beyond those requirements 26 generally applicable to all residential development within the 27 building's zone; 28 (e) Impose exterior design or architectural requirements on the 29 residential use of an existing building beyond those necessary for 30 health and safety of the use of the interior of the building or to 31 preserve character -defining streetscapes, unless the building is a 32 designated landmark or is within a historic district established 33 through a local preservation ordinance; 34 (f) Prohibit the addition of housing units in any specific part 35 of a building except ground floor commercial or retail that is along 36 a major pedestrian corridor as defined by the code city, unless the 37 addition of the units would violate applicable building codes or 38 health and safety standards; 39 (g) Require unchanged portions of an existing building used for 40 residential purposes to meet the current energy code solely because p. 2 ESHB 1042.SL 1 of the addition of new dwelling units within the building, however, 2 if any portion of an existing building is converted to new dwelling 3 units, each of those new units must meet the requirements of the 4 current energy code; 5 (h) Deny a building permit application for the addition of 6 housing units within an existing building due to nonconformity 7 regarding parking, height, setbacks, elevator size for gurney 8 transport, or modulation, unless the code city official with 9 decision -making authority makes written findings that the 10 nonconformity is causing a significant detriment to the surrounding 11 area; or 12 (i) Require a transportation concurrency study under RCW 13 36.70A.070 or an environmental study under chapter 43.21C RCW based 14 on the addition of residential units within an existing building. 15 (3) Nothing in this section requires a code city to approve a 16 building permit application for the addition of housing units 17 constructed entirely within an existing building envelope in a 18 building located within a zone that permits multifamily housing in 19 cases in which the building cannot satisfy life safety standards. 20 (4) For the purpose of this section, "existing building" means a 21 building that received a certificate of occupancy at least three 22 years prior to the permit application to add housing units. 23 NEW SECTION. Sec. 2. A new section is added to chapter 35.21 24 RCW to read as follows: 25 (1)(a) Cities must adopt or amend by ordinance, and incorporate 26 into their development regulations, zoning regulations, and other 27 official controls the requirements of subsection (2) of this section 28 for buildings that are zoned for commercial or mixed use no later 29 than six months after its next periodic comprehensive plan update 30 required under RCW 36.70A.130. 31 (b) The requirements of subsection (2) of this section apply and 32 take effect in any city that has not adopted or amended ordinances, 33 regulations, or other official controls as required under this 34 section by the timeline in (a) of this subsection and supersede, 35 preempt, and invalidate any conflicting local development 36 regulations. 37 (2) Through ordinances, development regulations, zoning 38 regulations, or other official controls as required under subsection 39 (1) of this section, cities may not: p. 3 ESHB 1042.SL 1 (a) Impose a restriction on housing unit density that prevents 2 the addition of housing units at a density up to 50 percent more than 3 what is allowed in the underlying zone if constructed entirely within 4 an existing building envelope in a building located within a zone 5 that permits multifamily housing, provided that generally applicable 6 health and safety standards, including but not limited to building 7 code standards and fire and life safety standards, can be met within 8 the building; 9 (b) Impose parking requirements on the addition of dwelling units 10 or living units added within an existing building, however, cities 11 may require the retention of existing parking that is required to 12 satisfy existing residential parking requirements under local laws 13 and for nonresidential uses that remain after the new units are 14 added; 15 (c) With the exception of emergency housing and transitional 16 housing uses, impose permitting requirements on the use of an 17 existing building for residential purposes beyond those requirements 18 generally applicable to all residential development within the 19 building's zone; 20 (d) Impose design standard requirements, including setbacks, lot 21 coverage, and floor area ratio requirements, on the use of an 22 existing building for residential purposes beyond those requirements 23 generally applicable to all residential development within the 24 building's zone; 25 (e) Impose exterior design or architectural requirements on the 26 residential use of an existing building beyond those necessary for 27 health and safety of the use of the interior of the building or to 28 preserve character -defining streetscapes, unless the building is a 29 designated landmark or is within a historic district established 30 through a local preservation ordinance; 31 (f) Prohibit the addition of housing units in any specific part 32 of a building except ground floor commercial or retail that is along 33 a major pedestrian corridor as defined by each city, unless the 34 addition of the units would violate applicable building codes or 35 health and safety standards; 36 (g) Require unchanged portions of an existing building used for 37 residential purposes to meet the current energy code solely because 38 of the addition of new dwelling units within the building, however, 39 if any portion of an existing building is converted to new dwelling p. 4 ESHB 1042.SL 1 units, each of those new units must meet the requirements of the 2 current energy code; 3 (h) Deny a building permit application for the addition of 4 housing units within an existing building due to nonconformity 5 regarding parking, height, setbacks, elevator size for gurney 6 transport, or modulation, unless the city official with decision- 7 making authority makes written findings that the nonconformity is 8 causing a significant detriment to the surrounding area; or 9 (i) Require a transportation concurrency study under RCW 10 36.70A.070 or an environmental study under chapter 43.21C RCW based 11 on the addition of residential units within an existing building. 12 (3) Nothing in this section requires a city to approve a building 13 permit application for the addition of housing units constructed 14 entirely within an existing building envelope in a building located 15 within a zone that permits multifamily housing in cases in which the 16 building cannot satisfy life safety standards. 17 (4) For the purpose of this section, "existing building" means a 18 building that received a certificate of occupancy at least three 19 years prior to the permit application to add housing units. 20 NEW SECTION. Sec. 3. A new section is added to chapter 19.27A 21 RCW to read as follows: 22 By January 1, 2024, the state building code council shall adopt 23 by rule an amendment to the current energy code that waives the 24 requirement for unchanged portions of an existing building used for 25 residential purposes to meet the current energy code solely because 26 of the addition of new dwelling units within the building. New 27 dwelling units created within the existing building must meet the 28 requirements of the current energy code. 29 Sec. 4. RCW 43.21C.450 and 2012 1st sp.s. c 1 s 307 are each 30 amended to read as follows: 31 The following nonproject actions are categorically exempt from 32 the requirements of this chapter: 33 (1) Amendments to development regulations that are required to 34 ensure consistency with an adopted comprehensive plan pursuant to RCW 35 36.70A.040, where the comprehensive plan was previously subjected to 36 environmental review pursuant to this chapter and the impacts 37 associated with the proposed regulation were specifically addressed 38 in the prior environmental review; p. 5 ESHB 1042.SL 1 (2) Amendments to development regulations that are required to 2 ensure consistency with a shoreline master program approved pursuant 3 to RCW 90.58.090, where the shoreline master program was previously 4 subjected to environmental review pursuant to this chapter and the 5 impacts associated with the proposed regulation were specifically 6 addressed in the prior environmental review; 7 (3) Amendments to development regulations that, upon 8 implementation of a project action, will provide increased 9 environmental protection, limited to the following: 10 (a) Increased protections for critical areas, such as enhanced 11 buffers or setbacks; 12 (b) Increased vegetation retention or decreased impervious 13 surface areas in shoreline jurisdiction; and 14 (c) Increased vegetation retention or decreased impervious 15 surface areas in critical areas; 16 (4) Amendments to technical codes adopted by a county, city, or 17 town to ensure consistency with minimum standards contained in state 18 law, including the following: 19 (a) Building codes required by chapter 19.27 RCW; 20 (b) Energy codes required by chapter 19.27A RCW; and 21 (c) Electrical codes required by chapter 19.28 RCW. 22 (5) Adoption or amendment of ordinances, development regulations, 23 zonina regulations, and other official controls necessary to comply 24 with sections 1 and 2 of this act. Passed by the House April 14, 2023. Passed by the Senate April 5, 2023. Approved by the Governor May 4, 2023. Filed in Office of Secretary of State May 5, 2023. --- END --- p. 6 ESHB 1042.SL CITY OF SPOKANE VALLEY Request for Planning Commission Action Meeting Date: August 24, 2023 Item: Check all that apply ❑ old business ❑ new business ❑ public hearing ❑ information ® study session ❑ pending legislation AGENDA ITEM TITLE: HB 1337 — Accessory Dwelling Units — Urban Growth Areas GOVERNING LEGISLATION: Chapters 36.70A, 43.21C, 64.32, 64.34, 64.38, 64.90 Revised Code of Washington (RCW) PREVIOUS COMMISSION ACTION: None BACKGROUND: Engrossed Substitute House Bill 1337, Accessory Dwelling Units, was signed into law on May 8, 2023. The state purpose of this legislation is to expand housing options by easing barriers to the construction of accessory dwelling units (ADUs). The city must adopt development regulations to implement the new law by December 31, 2026. Under this new legislation, the city must allow for at least two ADUs on all lots that allow detached single-family homes, provided the lots meet minimum lot size requirements. The ADUs may be attached, detached, or a combination of both. In addition, jurisdictions must allow for detached ADUs to be sited at a lot line abutting a public alley, unless the city or county routinely plows snow on the public alley, and for ADUs to be added in accessory structures, even if they violate current code requirements for setbacks or lot coverage. Under this new legislation, the city cannot • Prohibit the sale or other conveyance of a condominium unit independently of a principal unit solely on the grounds that condominium unit was originally built as an ADU; • Require the owner of a lot where this is an ADU to reside in or occupy the ADU or another housing unit on the same lot; • Establish a maximum gross floor area for ADUs that is less than 1,000 gross square feet; • Establish roof height limits on ADUs of less than 24-feet, unless the height limitation that applies to the principal unit is also less than 24-feet; • Impose setback restrictions, yard coverage limits, tree retention mandates, restrictions on entry door locations, aesthetic requirements, or design review for ADUs that are more restrictive than for principal single-family dwellings; • Assess impact fees on the construction of ADUs that are greater than 50 percent of the impact fees for the principal single-family dwelling; • Require public street improvements as a condition of permitting ADUs; • Require off-street parking as a condition of permitting ADUs within one-half mile walking distance of a "major transit stop"; and • Require more than one (1) off-street parking space as a condition of permitting ADUs on lots smaller than 6,OOOsq.ft. or more than two (2) spaces on lots greater than 6,OOOsq.ft.; The city may prohibit or restrict the construction of ADUs in locations where development is restricted under other laws, rules, or ordinances because of physical proximity to onsite sewage RPCA Study Session for RB 1337 Accessory Dwelling Units Page 1 of 2 system infrastructure, critical areas, or other unsuitable physical characteristics of a property. The city may apply the following restrictions to ADUs: • Prohibiting or restricting the construction of ADUs in residential zones with a density of one dwelling unit per acre or less that are within areas designated as wetlands, fish and wildlife habitats, floodplains, or geologically hazardous areas; • Prohibiting the construction of ADUs on lots that are not connected to or served by public sewers; • Restricting the use of ADUs for short term rentals; and • Applying public health, safety, building code, and environmental permitting requirements to ADUs that would be applicable to principal dwelling units. RECOMMENDED ACTION OR MOTION: No action recommended at this time. STAFF CONTACT: Levi Basinger, Planner ATTACHMENTS: 1. BB 1337 Session Law RPCA Study Session for HB 1337 Accessory Dwelling Units Page 2 of 2 lei 0l 4008:0C AN0to]4I<ila■aINKUgquhhYY HOUSE BILL 1337 Chapter 334, Laws of 2023 (partial veto) 68th Legislature 2023 Regular Session GROWTH MANAGEMENT ACT —ACCESSORY DWELLING UNITS —URBAN GROWTH AREAS EFFECTIVE DATE: July 23, 2023 Passed by the House April 14, 2023 Yeas 85 Nays 11 LAURIE JINKINS Speaker of the House of Representatives Passed by the Senate April 6, 2023 Yeas 39 Nays 7 DENNY HECK President of the Senate Approved May 8, 2023 1:13 PM with the exception of section 5, which is vetoed. JAY INSLEE Governor of the State of Washington CERTIFICATE I, Bernard Dean, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is ENGROSSED HOUSE BILL 1337 as passed by the House of Representatives and the Senate on the dates hereon set forth. BERNARD DEAN Chief Clerk FILED May 10, 2023 Secretary of State State of Washington ENGROSSED HOUSE BILL 1337 AS AMENDED BY THE SENATE Passed Legislature - 2023 Regular Session State of Washington 68th Legislature 2023 Regular Session By Representatives Gregerson, Barkis, Berry, Christian, Duerr, Fitzgibbon, Taylor, Ramel, Reeves, Simmons, Walen, Graham, Bateman, Reed, Lekanoff, Doglio, Tharinger, Cortes, Macri, and Stonier Read first time 01/16/23. Referred to Committee on Housing. 1 AN ACT Relating to expanding housing options by easing barriers 2 to the construction and use of accessory dwelling units; amending RCW 3 36.70A.696, 43.21C.495, and 36.70A.280; adding new sections to 4 chapter 36.70A RCW; adding a new section to chapter 64.34 RCW; adding 5 a new section to chapter 64.32 RCW; adding a new section to chapter 6 64.38 RCW; adding a new section to chapter 64.90 RCW; creating a new 7 section; and repealing RCW 35.63.210, 35A.63.230, 36.70A.400, 8 36.70.677, and 43.63A.215. 9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON: 10 NEW SECTION. Sec. 1. (1) The legislature makes the following 11 findings: 12 (a) Washington state is experiencing a housing affordability 13 crisis. Many communities across the state are in need of more housing 14 for renters across the income spectrum. 15 (b) Many cities dedicate the majority of residentially zoned land 16 to single detached houses that are increasingly financially out of 17 reach for many households. Due to their smaller size, accessory 18 dwelling units can provide a more affordable housing option in those 19 single-family zones. 20 (c) Localities can start to correct for historic economic and 21 racial exclusion in single-family zones by opening up these P. 1 EHB 1337.SL 1 neighborhoods to more diverse housing types, including accessory 2 dwelling units, that provide lower cost homes. Increasing housing 3 options in expensive, high -opportunity neighborhoods will give more 4 families access to schools, parks, and other public amenities 5 otherwise accessible to only the wealthy. 6 (d) Accessory dwelling units are frequently rented below market 7 rate, providing additional affordable housing options for renters. 8 (e) Accessory dwelling units can also help to provide housing for 9 very low-income households. More than 10 percent of accessory 10 dwelling units in some areas are occupied by tenants who pay no rent 11 at all; among these tenants are grandparents, adult children, family 12 members with disabilities, friends going through life transitions, 13 and community members in need. Accessory dwelling units meet the 14 needs of these people who might otherwise require subsidized housing 15 space and resources. 16 (f) Accessory dwelling units can meet the needs of Washington's 17 growing senior population, making it possible for this population to 18 age in their communities by offering senior -friendly housing, which 19 prioritizes physical accessibility, in walkable communities near 20 amenities essential to successful aging in place, including transit 21 and grocery stores, without requiring costly renovations of existing 22 housing stock. 23 (g) Homeowners who add an accessory dwelling unit may benefit 24 from added income and an increased sense of security. 25 (h) Accessory dwelling units provide environmental benefits. On 26 average they are more energy efficient than single detached houses, 27 and they incentivize adaptive reuse of existing homes and materials. 28 (i) Siting accessory dwelling units near transit hubs, employment 29 centers, and public amenities can help to reduce greenhouse gas 30 emissions by increasing walkability, shortening household commutes, 31 and curtailing sprawl. 32 (2) The legislature intends to promote and encourage the creation 33 of accessory dwelling units as a means to address the need for 34 additional affordable housing options. 35 Sec. 2. RCW 36.70A.696 and 2021 c 306 s 2 are each amended to 36 read as follows: 37 The definitions in this section apply throughout RCW 36.70A.697 38 ((an4)), 36.70A.698, and sections 3 and 4 of this act unless the 39 context clearly requires otherwise. p. 2 EHB 1337.SL 1 (1) "Accessory dwelling unit" means a dwelling unit located on 2 the same lot as a single-family housing unit, duplex, triplex, 3 townhome, or other housing unit. 4 (2) "Attached accessory dwelling unit" means an accessory 5 dwelling unit located within or attached to a single-family housing 6 unit, duplex, triplex, townhome, or other housing unit. 7 (3) "City" means any city, code city, and town located in a 8 county planning under RCW 36.70A.040. 9 (4) "County" means any county planning under RCW 36.70A.040. 10 (5) "Detached accessory dwelling unit" means an accessory 11 dwelling unit that consists partly or entirely of a building that is 12 separate and detached from a single-family housing unit, duplex, 13 triplex, townhome, or other housing unit and is on the same property. 14 (6) "Dwelling unit" means a residential living unit that provides 15 complete independent living facilities for one or more persons and 16 that includes permanent provisions for living, sleeping, eating, 17 cooking, and sanitation. 18 (7) "Gross floor area" means the interior habitable area of a 19 dwelling unit including basements and attics but not including a 20 garage or accessory structure. 21 (8) "Major transit stop" means: 22 (a) A stop on a high capacity transportation system funded or 23 expanded under the provisions of chapter 81.104 RCW; 24 (b) Commuter rail stops; 25 (c) Stops on rail or fixed guideway systems, including 26 transitways; 27 (d) Stops on bus rapid transit routes or routes that run on high 28 occupancy vehicle lanes; or 29 (e) Stops for a bus or other transit mode providing actual fixed 30 route service at intervals of at least fifteen minutes for at least 31 five hours during the peak hours of operation on weekdays. 32 ((+8+)) (9) "Owner" means any person who has at least 50 percent 33 ownership in a property on which an accessory dwelling unit is 34 located. 35 36 (({9*)) (10) "Principal unit" unit, duplex, triplex, townhome, or means the single-family other housing unit located housing on the 37 same lot as an accessory dwelling unit. 38 (11) "Short-term rental" means a lodging use, that is not a hotel 39 or motel or bed and breakfast, in which a dwelling unit, or portion p. 3 EHB 1337.SL 1 thereof, is offered or provided to a guest by a short-term rental 2 operator for a fee for fewer than 30 consecutive nights. 3 NEW SECTION. Sec. 3. A new section is added to chapter 36.70A 4 RCW to read as follows: 5 (1)(a) Cities and counties planning under this chapter must adopt 6 or amend by ordinance, and incorporate into their development 7 regulations, zoning regulations, and other official controls the 8 requirements of this section and of section 4 of this act, to take 9 effect six months after the jurisdiction's next periodic 10 comprehensive plan update required under RCW 36.70A.130. 11 (b) In any city or county that has not adopted or amended 12 ordinances, regulations, or other official controls as required under 13 this section, the requirements of this section and section 4 of this 14 act supersede, preempt, and invalidate any conflicting local 15 development regulations. 16 (2) Ordinances, development regulations, and other official 17 controls adopted or amended pursuant to this section and section 4 of 18 this act must only apply in the portions of towns, cities, and 19 counties that are within urban growth areas designated under this 20 chapter. 21 (3) Any action taken by a city or county to comply with the 22 requirements of this section or section 4 of this act is not subject 23 to legal challenge under this chapter or chapter 43.21C RCW. 24 (4) Nothing in this section or section 4 of this act requires or 25 authorizes a city or county to authorize the construction of an 26 accessory dwelling unit in a location where development is restricted 27 under other laws, rules, or ordinances as a result of physical 28 proximity to on -site sewage system infrastructure, critical areas, or 29 other unsuitable physical characteristics of a property. 30 (5) Nothing in this section or in section 4 of this act prohibits 31 a city or county from: 32 (a) Restricting the use of accessory dwelling units for short- 33 term rentals; 34 (b) Applying public health, safety, building code, and 35 environmental permitting requirements to an accessory dwelling unit 36 that would be applicable to the principal unit, including regulations 37 to protect ground and surface waters from on -site wastewater; 38 (c) Applying generally applicable development regulations to the 39 construction of an accessory unit, except when the application of p. 4 EHB 1337.SL 1 2 3 4 5 6 7 8 9 such regulations would be contrary to this section or to section 4 this act; (d) Prohibiting the construction of accessory dwelling units lots that are not connected to or served by public sewers; or (e) Prohibiting or restricting the construction of dwelling units in residential zones with a density of one unit per acre or less that are within areas designated as fish and wildlife habitats, flood plains, or geologically areas. of on accessory dwelling wetlands, hazardous 10 NEW SECTION. Sec. 4. A new section is added to chapter 36.70A 11 RCW to read as follows: 12 (1) In addition to ordinances, development regulations, and other 13 official controls adopted or amended to comply with this section and 14 section 3 of this act, a city or county must comply with all of the 15 following policies: 16 (a) The city or county may not assess impact fees on the 17 construction of accessory dwelling units that are greater than 50 18 percent of the impact fees that would be imposed on the principal 19 unit; 20 (b) The city or county may not require the owner of a lot on 21 which there is an accessory dwelling unit to reside in or occupy the 22 accessory dwelling unit or another housing unit on the same lot; 23 (c) The city or county must allow at least two accessory dwelling 24 units on all lots that are located in all zoning districts within an 25 urban growth area that allow for single-family homes in the following 26 configurations: 27 (i) One attached accessory dwellinq unit and one detached 28 accessory dwelling unit; 29 (ii) Two attached accessory dwelling units; or 30 (iii) Two detached accessory dwelling units, which may be 31 comprised of either one or two detached structures; 32 (d) The city or county must permit accessory dwelling units in 33 structures detached from the principal unit; 34 (e) The city or county must allow an accessory dwelling unit on 35 any lot that meets the minimum lot size required for the principal 36 unit; 37 (f) The city or county may not establish a maximum gross floor 38 area requirement for accessory dwelling units that is less than 1,000 39 square feet; p. 5 EHB 1337.SL 1 (g) The city or county may not establish roof height limits on an 2 accessory dwelling unit of less than 24 feet, unless the height 3 limitation that applies to the principal unit is less than 24 feet, 4 in which case a city or county may not impose roof height limitation 5 on accessory dwelling units that is less than the height limitation 6 that applies to the principal unit; 7 (h) A city or county may not impose setback requirements, yard 8 coverage limits, tree retention mandates, restrictions on entry door 9 locations, aesthetic requirements, or requirements for design review 10 for accessory dwelling units that are more restrictive than those for 11 principal units; 12 (i) A city or county must allow detached accessory dwelling units 13 to be sited at a lot line if the lot line abuts a public alley, 14 unless the city or county routinely plows snow on the public alley; 15 (j) A city or county must allow accessory dwelling units to be 16 converted from existing structures, including but not limited to 17 detached garages, even if they violate current code requirements for 18 setbacks or lot coverage; 19 (k) A city or county may not prohibit the sale or other 20 conveyance of a condominium unit independently of a principal unit 21 solely on the grounds that the condominium unit was originally built 22 as an accessory dwelling unit; and 23 (1) A city or county may not require public street improvements 24 as a condition of permitting accessory dwelling units. 25 (2)(a) A city or county subject to the requirements of this 26 section may not: 27 (i) Require off-street parking as a condition of permitting 28 development of accessory dwelling units within one-half mile walking 29 distance of a major transit stop; 30 (ii) Require more than one off-street parking space per unit as a 31 condition of permitting development of accessory dwelling units on 32 lots smaller than 6,000 square feet before any zero lot line 33 subdivisions or lot splits; and 34 (iii) Require more than two off-street parking spaces per unit as 35 a condition of permitting development of accessory dwelling units on 36 lots greater than 6,000 square feet before any zero lot line 37 subdivisions or lot splits. 38 (b) The provisions of (a) of this subsection do not apply: 39 (i) If a local government submits to the department an empirical 40 study prepared by a credentialed transportation or land use planning p. 6 EHB 1337.SL 1 expert that clearly demonstrates, and the department finds and 2 certifies, that the application of the parking limitations of (a) of 3 this subsection for accessory dwelling units will be significantly 4 less safe for vehicle drivers or passengers, pedestrians, or 5 bicyclists than if the jurisdiction's parking requirements were 6 applied to the same location for the same number of detached houses. 7 The department must develop guidance to assist cities and counties on 8 items to include in the study; or 9 (ii) To portions of cities within a one mile radius of a 10 commercial airport in Washington with at least 9,000,000 annual 11 enplanements. 12 (3) When regulating accessory dwelling units, cities and counties 13 may impose a limit of two accessory dwelling units, in addition to 14 the principal unit, on a residential lot of 2,000 square feet or 15 less. 16 (4) The provisions of this section do not apply to lots 17 designated with critical areas or their buffers as designated in RCW 18 36.70A.060, or to a watershed serving a reservoir for potable water 19 if that watershed is or was listed, as of the effective date of this 20 section, as impaired or threatened under section 303(d) of the 21 federal clean water act (33 U.S.C. Sec. 1313(d)). 22 *NEW SECTION. Sec. 5. A new section is added to chapter 36.70A 23 RCW to read as follows: 24 To encourage the use of accessory dwelling units for long-term 25 housing, cities and counties may adopt ordinances, development 26 regulations, and other official controls which waive or defer fees, 27 including impact fees, defer the payment of taxes, or waive specific 28 regulations. Cities and counties may only offer such reduced or 29 deferred fees, deferred taxes, waivers, or other incentives for the 30 development or construction of accessory dwelling units if: 31 (1) The units are located within an urban growth area; and 32 (2) The units are subject to a program adopted by the city or 33 county with effective binding commitments or covenants that the units 34 will be primarily utilized for long-term housing consistent with the 35 public purpose for this authorization. *Sec. 5 was vetoed. See message at end of chapter. 36 Sec. 6. RCW 43.21C.495 and 2022 c 246 s 3 are each amended to 37 read as follows: p. 7 EHB 1337.SL 1 (1) Adoption of ordinances, development regulations and 2 amendments to such regulations, and other nonproject actions taken by 3 a city to implement: The actions specified in section 2, chapter 246, 4 Laws of 2022 unless the adoption of such ordinances, development 5 regulations and amendments to such regulations, or other nonproject 6 actions has a probable significant adverse impact on fish habitat; 7 and the increased residential building capacity actions identified in 8 RCW 36.70A.600(1), with the exception of the action specified in RCW 9 36.70A.600(1)(f), are not subject to administrative or judicial 10 appeals under this chapter. 11 (2) Adoption of ordinances, development regulations and 12 amendments to such regulations, and other nonproject actions taken by 13 a city or county consistent with the requirements of sections 3 and 4 14 of this act are not subject to administrative or judicial appeals 15 under this chapter. 16 Sec. 7. RCW 36.70A.280 and 2011 c 360 s 17 are each amended to 17 read as follows: 18 (1) The growth management hearings board shall hear and determine 19 only those petitions alleging either: 20 (a) That, except as provided otherwise by this subsection, a 21 state agency, county, or city planning under this chapter is not in 22 compliance with the requirements of this chapter, chapter 90.58 RCW 23 as it relates to the adoption of shoreline master programs or 24 amendments thereto, or chapter 43.21C RCW as it relates to plans, 25 development regulations, or amendments, adopted under RCW 36.70A.040 26 or chapter 90.58 RCW. Nothing in this subsection authorizes the board 27 to hear petitions alleging noncompliance ((with RGW 36— 9A.9891)) 28 based on a city or county's actions taken to implement the 29 requirements of sections 3 and 4 of this act within an urban growth 30 area; 31 (b) That the ((twenty-)) 20-year growth management planning 32 population projections adopted by the office of financial management 33 pursuant to RCW 43.62.035 should be adjusted; 34 (c) That the approval of a work plan adopted under RCW 35 36.70A.735(1)(a) is not in compliance with the requirements of the 36 program established under RCW 36.70A.710; 37 (d) That regulations adopted under RCW 36.70A.735(1)(b) are not 38 regionally applicable and cannot be adopted, wholly or partially, by 39 another jurisdiction; or P. 8 EHB 1337.SL 1 (e) That a department certification under RCW 36.70A.735(1)(c) is 2 erroneous. 3 (2) A petition may be filed only by: (a) The state, or a county 4 or city that plans under this chapter; (b) a person who has 5 participated orally or in writing before the county or city regarding 6 the matter on which a review is being requested; (c) a person who is 7 certified by the governor within ((sip)) 60 days of filing the 8 request with the board; or (d) a person qualified pursuant to RCW 9 34.05.530. 10 (3) For purposes of this section "person" means any individual, 11 partnership, corporation, association, state agency, governmental 12 subdivision or unit thereof, or public or private organization or 13 entity of any character. 14 (4) To establish participation standing under subsection (2)(b) 15 of this section, a person must show that his or her participation 16 before the county or city was reasonably related to the person's 17 issue as presented to the board. 18 (5) When considering a possible adjustment to a growth management 19 planning population projection prepared by the office of financial 20 management, the board shall consider the implications of any such 21 adjustment to the population forecast for the entire state. 22 The rationale for any adjustment that is adopted by the board 23 must be documented and filed with the office of financial management 24 within ten working days after adoption. 25 If adjusted by the board, a county growth management planning 26 population projection shall only be used for the planning purposes 27 set forth in this chapter and shall be known as the "board adjusted 28 population projection." None of these changes shall affect the 29 official state and county population forecasts prepared by the office 30 of financial management, which shall continue to be used for state 31 budget and planning purposes. 32 NEW SECTION. Sec. 8. A new section is added to chapter 36.70A 33 RCW to read as follows: 34 (1) By December 31, 2023, the department must revise its 35 recommendations for encouraging accessory dwelling units to include 36 the provisions of sections 3 and 4 of this act. 37 (2) During each comprehensive plan review required by RCW 38 36.70A.130, the department must review local government comprehensive 39 plans and development regulations for compliance with sections 3 and P. 9 EHB 1337.SL 1 4 of this act and the department's recommendations under subsection 2 (1) of this section. 3 NEW SECTION. Sec. 9. A new section is added to chapter 64.34 4 RCW to read as follows: 5 (1) Except a declaration created to protect public health and 6 safety, and ground and surface waters from on -site wastewater, a 7 declaration created after the effective date of this section and 8 applicable to a property located within an urban growth area may not 9 impose any restriction or prohibition on the construction, 10 development, or use on a lot of an accessory dwelling unit that the 11 city or county in which the urban growth area is located would be 12 prohibited from imposing under section 4 of this act. 13 (2) For the purposes of this section, "urban growth area" has the 14 same meaning as in RCW 36.70A.030. 15 (3) A city or county issuing a permit for the construction of an 16 accessory dwelling unit may not be held civilly liable on the basis 17 that the construction of the accessory dwelling unit would violate a 18 restrictive covenant or deed restriction. 19 NEW SECTION. Sec. 10. A new section is added to chapter 64.32 20 RCW to read as follows: 21 (1) Except a declaration created to protect public health and 22 safety, and ground and surface waters from on -site wastewater, a 23 declaration created after the effective date of this section and 24 applicable to a property located within an urban growth area may not 25 impose any restriction or prohibition on the construction, 26 development, or use on a lot of an accessory dwelling unit that the 27 city or county in which the urban growth area is located would be 28 prohibited from imposing under section 4 of this act. 29 (2) For the purposes of this section, "urban growth area" has the 30 same meaning as in RCW 36.70A.030. 31 (3) A city or county issuing a permit for the construction of an 32 accessory dwelling unit may not be held civilly liable on the basis 33 that the construction of the accessory dwelling unit would violate a 34 restrictive covenant or deed restriction. 35 NEW SECTION. Sec. 11. A new section is added to chapter 64.38 36 RCW to read as follows: P. 10 EHB 1337.SL 1 (1) Except governing documents of associations created to protect 2 public health and safety, and ground and surface waters from on -site 3 wastewater, governing documents of associations created after the 4 effective date of this section and applicable to a property located 5 within an urban growth area may not impose any restriction or 6 prohibition on the construction, development, or use on a lot of an 7 accessory dwelling unit that the city or county in which the urban 8 growth area is located would be prohibited from imposing under 9 section 4 of this act. 10 (2) For the purposes of this section, "urban growth area" has the 11 same meaning as in RCW 36.70A.030. 12 (3) A city or county issuing a permit for the construction of an 13 accessory dwelling unit may not be held civilly liable on the basis 14 that the construction of the accessory dwelling unit would violate a 15 restrictive covenant or deed restriction. 16 NEW SECTION. Sec. 12. A new section is added to chapter 64.90 17 RCW to read as follows: 18 (1) Except declarations and governing documents of common 19 interest communities created to protect public health and safety, and 20 ground and surface waters from on -site wastewater, declarations and 21 governing documents of common interest communities created after the 22 effective date of this section and applicable to a property located 23 within an urban growth area may not impose any restriction or 24 prohibition on the construction, development, or use on a lot of an 25 accessory dwelling unit that the city or county in which the urban 26 growth area is located would be prohibited from imposing under 27 section 4 of this act. 28 (2) For the purposes of this section, "urban growth area" has the 29 same meaning as in RCW 36.70A.030. 30 (3) A city or county issuing a permit for the construction of an 31 accessory dwelling unit may not be held civilly liable on the basis 32 that the construction of the accessory dwelling unit would violate a 33 restrictive covenant or deed restriction. 34 NEW SECTION. Sec. 13. The following acts or parts of acts are 35 each repealed: 36 (1) RCW 35.63.210 (Accessory apartments) and 1993 c 478 s 8; 37 (2) RCW 35A.63.230 (Accessory apartments) and 1993 c 478 s 9; 38 (3) RCW 36.70A.400 (Accessory apartments) and 1993 c 478 s 11; P. 11 EHB 1337.SL 1 (4) RCW 36.70.677 (Accessory apartments) and 1993 c 478 s 10; and 2 (5) RCW 43.63A.215 (Accessory apartments Development and 3 placement —Local governments) and 1993 c 478 s 7. Passed by the House April 14, 2023. Passed by the Senate April 6, 2023. Approved by the Governor May 8, 2023, with the exception of certain items that were vetoed. Filed in Office of Secretary of State May 10, 2023. Note: Governor's explanation of partial veto is as follows: "I am returning herewith, without my approval as to Section 5, Engrossed House Bill No. 1337 entitled: "AN ACT Relating to expanding housing options by easing barriers to the construction and use of accessory dwelling units." Section 5 of the bill gives local governments authority to waive or defer fees, defer payment of taxes, or waive other regulations for the development of accessory dwelling units (ADUs) if specified conditions are met. The specified conditions are that the ADU must be located within an urban growth area, and the ADU must be subject to a locally adopted covenant program ensuring that the ADU will be primarily utilized for long-term housing. Current law allows local governments to waive fees, taxes, and to establish various incentives for the construction of ADUs without requiring the creation of a local covenant program. The administrative costs necessary to administer a new covenant program for ADUs may cause some cities to discontinue current incentive programs. For these reasons I have vetoed Section 5 of Engrossed House Bill No. 1337. With the exception of Section 5, Engrossed House Bill No. 1337 is approved." --- END --- p. 12 EHB 1337.SL CITY OF SPOKANE VALLEY Request for Planning Commission Action Meeting Date: August 24, 2023 Item: Check all that apply ❑ old business ❑ new business ❑ public hearing ❑ information ® study session ❑ pending legislation AGENDA ITEM TITLE: Middle Housing Bill — HB 1110 GOVERNING LEGISLATION: Chapters 36.70A, 43.21C, 64.34, 63.32 and 64.90 Revised Code of Washington PREVIOUS COMMISSION ACTION: None BACKGROUND: On May 8, 2023, Governor Inslee signed HB 1110, commonly known as the "Middle Housing Bill" with an effective date of July 23, 2023. HB 1110 defines "Middle housing" as "buildings that are compatible in scale, form, and character with single-family houses and contain two or more attached, stacked, or clustered homes including duplexes, triplexes, fourplexes, fiveplexes, sixplexes, townhouses, stacked flats, courtyard apartments, and cottage housing." HB 1110 requires cities of certain sizes and locations to allow multiple dwelling units per lot in a middle housing type of form. Cities of more than 75,000 must: • Allow up to four housing units on all residentially zoned lots. • Allow up to six housing units on all residentially zoned lots within 1/4 mile walking distance of a "major transit stop". • Allow up to six housing units on all residentially zoned lots that provide for affordable housing in at least two units. Density measured in "dwelling units per acre" has traditionally been the way the city has regulated residential land use. HB 1110 introduces the term "unit density" because the bill focuses on the minimum number of dwelling units on a lot versus units per acre. A city may exclude up to 25% of lots that are primarily dedicated to detached single-family houses from implementation of the density requirement if the lots meet certain criteria such as critical areas and their buffers. Some lots may not be excluded such as those within one-half mile walking distance of major transit stops. HB 1110 allows only administrative design review for middle housing. Permit approval must be based on only "clear and objective" development regulations that are not more restrictive than those required for detached single-family houses. There are restrictions on how much off-street parking can be required. No off-street parking standards may be applied to middle housing located within a half -mile of a major transit stop. Lots with less than 6,000 square feet shall not require more than one off-street space per lot. Lots greater than 6,000 square feet shall not require more than two spaces per lot. Staff will present a presentation on the new legislation. RECOMMENDED ACTION OR MOTION: None STAFF CONTACT: Martin Palaniuk, Associate Planner ATTACHMENTS: 1. E2SH13 1110 Middle Housing (adopted and engrossed 04/11/2023) 2. Department of Commerce FAQ sheet RPCA Study Session for RB 1110 Legislative Update Page 1 of 1 1110-S2.E AMS ENGR S2959.E E2SHB 1110 - S COMM AMD By Committee on Ways & Means ADOPTED AND ENGROSSED 04/11/2023 1 Strike everything after the enacting clause and insert the 2 following: 3 "NEW SECTION. Sec. 1. The legislature finds that Washington is 4 facing an unprecedented housing crisis for its current population and 5 a lack of housing choices, and is not likely to meet the 6 affordability goals for future populations. In order to meet the goal 7 of 1,000,000 new homes by 2044, and enhanced quality of life and 8 environmental protection, innovative housing policies will need to be 9 adopted. 10 Increasing housing options that are more affordable to various 11 income levels is critical to achieving the state's housing goals, 12 including those codified by the legislature under chapter 254, Laws 13 of 2021. 14 There is continued need for the development of housing at all 15 income levels, including middle housing that will provide a wider 16 variety of housing options and configurations to allow Washingtonians 17 to live near where they work. 18 Homes developed at higher densities are more affordable by design 19 for Washington residents both in their construction and reduced 20 household energy and transportation costs. 21 While creating more housing options, it is essential for cities 22 to identify areas at higher risk of displacement and establish 23 antidisplacement policies as required in Engrossed Second Substitute 24 House Bill No. 1220 (chapter 254, Laws of 2021). 25 The state has made historic investments in subsidized affordable 26 housing through the housing trust fund, yet even with these historic 27 investments, the magnitude of the housing shortage requires both 28 public and private investment. 29 In addition to addressing the housing shortage, allowing more 30 housing options in areas already served by urban infrastructure will 31 reduce the pressure to develop natural and working lands, support key Official Print - 1 1110-S2.E AMS ENGR 52959.E 1 strategies for climate change, food security, and Puget Sound 2 recovery, and save taxpayers and ratepayers money. 3 Sec. 2. RCW 36.70A.030 and 2021 c 254 s 6 are each amended to 4 read as follows: 5 Unless the context clearly requires otherwise, the definitions in 6 this section apply throughout this chapter. 7 (1) "Administrative design review" means a development permit 8 process whereby an application is reviewed, approved, or denied by 9 the planning director or the planning director's designee based 10 solely on objective design and development standards without a public 11 predecision hearing, unless such review is otherwise required by 12 state or federal law, or the structure is a designated landmark or 13 historic district established under a local preservation ordinance. A 14 city may utilize public meetings, hearings, or voluntary review 15 boards to consider, recommend, or approve requests for variances from 16 locally established design review standards. 17 (2) "Adopt a comprehensive land use plan" means to enact a new 18 comprehensive land use plan or to update an existing comprehensive 19 land use plan. 20 (({2})) (3) "Affordable housing" means, unless the context 21 clearly indicates otherwise, residential housing whose monthly costs, 22 including utilities other than telephone, do not exceed thirty 23 percent of the monthly income of a household whose income is: 24 (a) For rental housing, sixty percent of the median household 25 income adjusted for household size, for the county where the 26 household is located, as reported by the United States department of 27 housing and urban development; or 28 (b) For owner -occupied housing, eighty percent of the median 29 household income adjusted for household size, for the county where 30 the household is located, as reported by the United States department 31 of housing and urban development. 32 ((43+)) (4) "Agricultural land" means land primarily devoted to 33 the commercial production of horticultural, viticultural, 34 floricultural, dairy, apiary, vegetable, or animal products or of 35 berries, grain, hay, straw, turf, seed, Christmas trees not subject 36 to the excise tax imposed by RCW 84.33.100 through 84.33.140, finfish 37 in upland hatcheries, or livestock, and that has long-term commercial 38 significance for agricultural production. 39 ((+4})) (5) "City" means any city or town, including a code city. Official Print - 2 1110-S2.E AMS ENGR 52959.E 1 ((f5})) (6) "Comprehensive land use plan," "comprehensive plan," 2 or "plan" means a generalized coordinated land use policy statement 3 of the governing body of a county or city that is adopted pursuant to 4 this chapter. 5 ((f6})) (7) "Cottage housing" means residential units on a lot 6 with a common open space that either: (a) Is owned in common; or (b) 7 has units owned as condominium units with property owned in common 8 and a minimum of 20 percent of the lot size as open space. 9 (8) "Courtyard apartments" means up to four attached dwelling 10 units arranged on two or three sides of a yard or court. 11 (9) "Critical areas" include the following areas and ecosystems: 12 (a) Wetlands; (b) areas with a critical recharging effect on aquifers 13 used for potable water; (c) fish and wildlife habitat conservation 14 areas; (d) frequently flooded areas; and (e) geologically hazardous 15 areas. "Fish and wildlife habitat conservation areas" does not 16 include such artificial features or constructs as irrigation delivery 17 systems, irrigation infrastructure, irrigation canals, or drainage 18 ditches that lie within the boundaries of and are maintained by a 19 port district or an irrigation district or company. 20 ((+7+)) (10) "Department" means the department of commerce. 21 ((+8})) (11) "Development regulations" or "regulation" means the 22 controls placed on development or land use activities by a county or 23 city, including, but not limited to, zoning ordinances, critical 24 areas ordinances, shoreline master programs, official controls, 25 planned unit development ordinances, subdivision ordinances, and 26 binding site plan ordinances together with any amendments thereto. A 27 development regulation does not include a decision to approve a 28 project permit application, as defined in RCW 36.70B.020, even though 29 the decision may be expressed in a resolution or ordinance of the 30 legislative body of the county or city. 31 (({9*)) (12) "Emergency housing" means temporary indoor 32 accommodations for individuals or families who are homeless or at 33 imminent risk of becoming homeless that is intended to address the 34 basic health, food, clothing, and personal hygiene needs of 35 individuals or families. Emergency housing may or may not require 36 occupants to enter into a lease or an occupancy agreement. 37 (((19))) (13) "Emergency shelter" means a facility that provides 38 a temporary shelter for individuals or families who are currently 39 homeless. Emergency shelter may not require occupants to enter into a 40 lease or an occupancy agreement. Emergency shelter facilities may Official Print - 3 1110-S2.E AMS ENGR 52959.E 1 include day and warming centers that do not provide overnight 2 accommodations. 3 (({1})) (14) "Extremely low-income household" means a single 4 person, family, or unrelated persons living together whose adjusted 5 income is at or below thirty percent of the median household income 6 adjusted for household size, for the county where the household is 7 located, as reported by the United States department of housing and 8 urban development. 9 (((a:2))) (15) "Forestland" means land primarily devoted to 10 growing trees for long-term commercial timber production on land that 11 can be economically and practically managed for such production, 12 including Christmas trees subject to the excise tax imposed under RCW 13 84.33.100 through 84.33.140, and that has long-term commercial 14 significance. In determining whether forestland is primarily devoted 15 to growing trees for long-term commercial timber production on land 16 that can be economically and practically managed for such production, 17 the following factors shall be considered: (a) The proximity of the 18 land to urban, suburban, and rural settlements; (b) surrounding 19 parcel size and the compatibility and intensity of adjacent and 20 nearby land uses; (c) long-term local economic conditions that affect 21 the ability to manage for timber production; and (d) the availability 22 of public facilities and services conducive to conversion of 23 forestland to other uses. 24 ((( 13) ) (16) "Freight rail dependent uses" means buildings and 25 other infrastructure that are used in the fabrication, processing, 26 storage, and transport of goods where the use is dependent on and 27 makes use of an adjacent short line railroad. Such facilities are 28 both urban and rural development for purposes of this chapter. 29 "Freight rail dependent uses" does not include buildings and other 30 infrastructure that are used in the fabrication, processing, storage, 31 and transport of coal, liquefied natural gas, or "crude oil" as 32 defined in RCW 90.56.010. 33 (((1 4))) (17) "Geologically hazardous areas" means areas that 34 because of their susceptibility to erosion, sliding, earthquake, or 35 other geological events, are not suited to the siting of commercial, 36 residential, or industrial development consistent with public health 37 or safety concerns. 38 (((15))) (18) "Long-term commercial significance" includes the 39 growing capacity, productivity, and soil composition of the land for 40 long-term commercial production, in consideration with the land's Official Print - 4 1110-S2.E AMS ENGR 52959.E 1 proximity to population areas, and the possibility of more intense 2 uses of the land. 3 (((16))) (19) "Low-income household" means a single person, 4 family, or unrelated persons living together whose adjusted income is 5 at or below eighty percent of the median household income adjusted 6 for household size, for the county where the household is located, as 7 reported by the United States department of housing and urban 8 development. 9 (((a:7))) (20) "Major transit stop" means: 10 (a) A stop on a high capacity transportation system funded or 11 expanded under the provisions of chapter 81.104 RCW; 12 (b) Commuter rail stops; 13 (c) Stops on rail or fixed guideway systems; or 14 (d) Stops on bus rapid transit routes. 15 (21) "Middle housing" means buildings that are compatible in 16 scale, form, and character with single-family houses and contain two 17 or more attached, stacked, or clustered homes including duplexes, 18 triplexes, fourplexes, fiveplexes, sixplexes, townhouses, stacked 19 flats, courtyard apartments, and cottage housing 20 (22) "Minerals" include gravel, sand, and valuable metallic 21 substances. 22 (((18))) (23) "Moderate -income household" means a single person, 23 family, or unrelated persons living together whose adjusted income is 24 at or below 120 percent of the median household income adjusted for 25 household size, for the county where the household is located, as 26 reported by the United States department of housing and urban 27 development. 28 (((19))) (24) "Permanent supportive housing" is subsidized, 29 leased housing with no limit on length of stay that prioritizes 30 people who need comprehensive support services to retain tenancy and 31 utilizes admissions practices designed to use lower barriers to entry 32 than would be typical for other subsidized or unsubsidized rental 33 housing, especially related to rental history, criminal history, and 34 personal behaviors. Permanent supportive housing is paired with on- 35 site or off -site voluntary services designed to support a person 36 living with a complex and disabling behavioral health or physical 37 health condition who was experiencing homelessness or was at imminent 38 risk of homelessness prior to moving into housing to retain their 39 housing and be a successful tenant in a housing arrangement, improve 40 the resident's health status, and connect the resident of the housing Official Print - 5 1110-S2.E AMS ENGR 52959.E 1 with community -based health care, treatment, or employment services. 2 Permanent supportive housing is subject to all of the rights and 3 responsibilities defined in chapter 59.18 RCW. 4 (((29))) (25) "Public facilities" include streets, roads, 5 highways, sidewalks, street and road lighting systems, traffic 6 signals, domestic water systems, storm and sanitary sewer systems, 7 parks and recreational facilities, and schools. 8 (((2a:))) (26) "Public services" include fire protection and 9 suppression, law enforcement, public health, education, recreation, 10 environmental protection, and other governmental services. 11 (((22))) (27) "Recreational land" means land so designated under 12 RCW 36.70A.1701 and that, immediately prior to this designation, was 13 designated as agricultural land of long-term commercial significance 14 under RCW 36.70A.170. Recreational land must have playing fields and 15 supporting facilities existing before July 1, 2004, for sports played 16 on grass playing fields. 17 (((23))) (28) "Rural character" refers to the patterns of land 18 use and development established by a county in the rural element of 19 its comprehensive plan: 20 (a) In which open space, the natural landscape, and vegetation 21 predominate over the built environment; 22 (b) That foster traditional rural lifestyles, rural -based 23 economies, and opportunities to both live and work in rural areas; 24 (c) That provide visual landscapes that are traditionally found 25 in rural areas and communities; 26 (d) That are compatible with the use of the land by wildlife and 27 for fish and wildlife habitat; 28 (e) That reduce the inappropriate conversion of undeveloped land 29 into sprawling, low -density development; 30 (f) That generally do not require the extension of urban 31 governmental services; and 32 (g) That are consistent with the protection of natural surface 33 water flows and groundwater and surface water recharge and discharge 34 areas. 35 (((24) ) (29) "Rural development" refers to development outside 36 the urban growth area and outside agricultural, forest, and mineral 37 resource lands designated pursuant to RCW 36.70A.170. Rural 38 development can consist of a variety of uses and residential 39 densities, including clustered residential development, at levels 40 that are consistent with the preservation of rural character and the Official Print - 6 1110-S2.E AMS ENGR 52959.E 1 requirements of the rural element. Rural development does not refer 2 to agriculture or forestry activities that may be conducted in rural 3 areas. 4 (((2S) (30) "Rural governmental services" or "rural services" 5 include those public services and public facilities historically and 6 typically delivered at an intensity usually found in rural areas, and 7 may include domestic water systems((,-)) and fire and police 8 protection services((, transpertatien and piiblie trans -it sera:ees, 9 a -a_ ether piiblie ut es)) associated with rural development and 10 normally not associated with urban areas. Rural services do not 11 include storm or sanitary sewers, except as otherwise authorized by 12 RCW 36.70A.110(4). 13 (((26))) (31) "Short line railroad" means those railroad lines 14 designated class II or class III by the United States surface 15 transportation board. 16 (({2})) (32) "Single-family zones" means those zones where 17 single-family detached housing is the predominant land use. 18 (33) "Stacked flat" means dwelling units in a residential 19 building of no more than three stories on a residential zoned lot in 20 which each floor may be separately rented or owned. 21 (34) "Townhouses" means buildings that contain three or more 22 attached single-family dwelling units that extend from foundation to 23 roof and that have a yard or public way on not less than two sides. 24 (35) "Urban governmental services" or "urban services" include 25 those public services and public facilities at an intensity 26 historically and typically provided in cities, specifically including 27 storm and sanitary sewer systems, domestic water systems, street 28 cleaning services, fire and police protection services, public 29 transit services, and other public utilities associated with urban 30 areas and normally not associated with rural areas. 31 (((28))) (36) "Urban growth" refers to growth that makes 32 intensive use of land for the location of buildings, structures, and 33 impermeable surfaces to such a degree as to be incompatible with the 34 primary use of land for the production of food, other agricultural 35 products, or fiber, or the extraction of mineral resources, rural 36 uses, rural development, and natural resource lands designated 37 pursuant to RCW 36.70A.170. A pattern of more intensive rural 38 development, as provided in RCW 36.70A.070(5)(d), is not urban 39 growth. When allowed to spread over wide areas, urban growth 40 typically requires urban governmental services. "Characterized by Official Print - 7 1110-S2.E AMS ENGR 52959.E 1 urban growth" refers to land having urban growth located on it, or to 2 land located in relationship to an area with urban growth on it as to 3 be appropriate for urban growth. 4 (((29))) (37) "Urban growth areas" means those areas designated 5 by a county pursuant to RCW 36.70A.110. 6 (({ OM (38) "Very low-income household" means a single person, 7 family, or unrelated persons living together whose adjusted income is 8 at or below fifty percent of the median household income adjusted for 9 household size, for the county where the household is located, as 10 reported by the United States department of housing and urban 11 development. 12 (((31))) (39) "Wetland" or "wetlands" means areas that are 13 inundated or saturated by surface water or groundwater at a frequency 14 and duration sufficient to support, and that under normal 15 circumstances do support, a prevalence of vegetation typically 16 adapted for life in saturated soil conditions. Wetlands generally 17 include swamps, marshes, bogs, and similar areas. Wetlands do not 18 include those artificial wetlands intentionally created from 19 nonwetland sites, including, but not limited to, irrigation and 20 drainage ditches, grass -lined swales, canals, detention facilities, 21 wastewater treatment facilities, farm ponds, and landscape amenities, 22 or those wetlands created after July 1, 1990, that were 23 unintentionally created as a result of the construction of a road, 24 street, or highway. Wetlands may include those artificial wetlands 25 intentionally created from nonwetland areas created to mitigate 26 conversion of wetlands. 27 NEW SECTION. Sec. 3. A new section is added to chapter 36.70A 28 RCW to read as follows: 29 (1) Except as provided in subsection (4) of this section, any 30 city that is required or chooses to plan under RCW 36.70A.040 must 31 provide by ordinance and incorporate into its development 32 regulations, zoning regulations, and other official controls, 33 authorization for the following: 34 (a) For cities with a population of at least 25,000 but less than 35 75,000 based on office of financial management population estimates: 36 (i) The development of at least two units per lot on all lots 37 zoned predominantly for residential use, unless zoning permitting 38 higher densities or intensities applies; Official Print - 8 1110-S2.E AMS ENGR 52959.E 1 (ii) The development of at least four units per lot on all lots 2 zoned predominantly for residential use, unless zoning permitting 3 higher densities or intensities applies, within one -quarter mile 4 walking distance of a major transit stop; and 5 (iii) The development of at least four units per lot on all lots 6 zoned predominantly for residential use, unless zoning permitting 7 higher densities or intensities applies, if at least one unit is 8 affordable housing. 9 (b) For cities with a population of at least 75,000 based on 10 office of financial management population estimates: 11 (i) The development of at least four units per lot on all lots 12 zoned predominantly for residential use, unless zoning permitting 13 higher densities or intensities applies; 14 (ii) The development of at least six units per lot on all lots 15 zoned predominantly for residential use, unless zoning permitting 16 higher densities or intensities applies, within one -quarter mile 17 walking distance of a major transit stop; and 18 (iii) The development of at least six units per lot on all lots 19 zoned predominantly for residential use, unless zoning permitting 20 higher densities or intensities applies, if at least two units are 21 affordable housing. 22 (c) For cities with a population of less than 25,000, that are 23 within a contiguous urban growth area with the largest city in a 24 county with a population of more than 275,000, based on office of 25 financial management population estimates the development of at least 26 two units per lot on all lots zoned predominantly for residential 27 use, unless zoning permitting higher densities or intensities 28 applies. 29 (2)(a) To qualify for the additional units allowed under 30 subsection (1) of this section, the applicant must commit to renting 31 or selling the required number of units as affordable housing. The 32 units must be maintained as affordable for a term of at least 50 33 years, and the property must satisfy that commitment and all required 34 affordability and income eligibility conditions adopted by the local 35 government under this chapter. A city must require the applicant to 36 record a covenant or deed restriction that ensures the continuing 37 rental of units subject to these affordability requirements 38 consistent with the conditions in chapter 84.14 RCW for a period of 39 no less than 50 years. The covenant or deed restriction must also 40 address criteria and policies to maintain public benefit if the Official Print - 9 1110-S2.E AMS ENGR 52959.E 1 property is converted to a use other than which continues to provide 2 for permanently affordable housing. 3 (b) The units dedicated as affordable must be provided in a range 4 of sizes comparable to other units in the development. To the extent 5 practicable, the number of bedrooms in affordable units must be in 6 the same proportion as the number of bedrooms in units within the 7 entire development. The affordable units must generally be 8 distributed throughout the development and have substantially the 9 same functionality as the other units in the development. 10 (c) If a city has enacted a program under RCW 36.70A.540, the 11 terms of that program govern to the extent they vary from the 12 requirements of this subsection. 13 (3) If a city has enacted a program under RCW 36.70A.540, 14 subsection (1) of this section does not preclude the city from 15 requiring any development, including development described in 16 subsection (1) of this section, to provide affordable housing, either 17 on -site or through an in -lieu payment, nor limit the city's ability 18 to expand such a program or modify its requirements. 19 (4)(a) As an alternative to the density requirements in 20 subsection (1) of this section, a city may implement the density 21 requirements in subsection (1) of this section for at least 75 22 percent of lots in the city that are primarily dedicated to single- 23 family detached housing units. 24 (b) The 25 percent of lots for which the requirements of 25 subsection (1) of this section are not implemented must include but 26 are not limited to: 27 (i) Any areas within the city for which the department has 28 certified an extension of the implementation timelines under section 29 5 of this act due to the risk of displacement; 30 (ii) Any areas within the city for which the department has 31 certified an extension of the implementation timelines under section 32 7 of this act due to a lack of infrastructure capacity; 33 (iii) Any lots designated with critical areas or their buffers 34 that are exempt from the density requirements as provided in 35 subsection (8) of this section; 36 (iv) Any portion of a city within a one -mile radius of a 37 commercial airport with at least 9,000,000 annual enplanements that 38 is exempt from the parking requirements under subsection (7)(b) of 39 this section; and Official Print - 10 1110-S2.E AMS ENGR 52959.E 1 (v) Any areas subject to sea level rise, increased flooding, 2 susceptible to wildfires, or geological hazards over the next 100 3 years. 4 (c) Unless identified as at higher risk of displacement under RCW 5 36.70A.070(2)(g), the 25 percent of lots for which the requirements 6 of subsection (1) of this section are not implemented may not 7 include: 8 (i) Any areas for which the exclusion would further racially 9 disparate impacts or result in zoning with a discriminatory effect; 10 (ii) Any areas within one-half mile walking distance of a major 11 transit stop; or 12 (iii) Any areas historically covered by a covenant or deed 13 restriction excluding racial minorities from owning property or 14 living in the area, as known to the city at the time of each 15 comprehensive plan update. 16 (5) A city must allow at least six of the nine types of middle 17 housing to achieve the unit density required in subsection (1) of 18 this section. A city may allow accessory dwelling units to achieve 19 the unit density required in subsection (1) of this section. Cities 20 are not required to allow accessory dwelling units or middle housing 21 types beyond the density requirements in subsection (1) of this 22 section. A city must also allow zero lot line short subdivision where 23 the number of lots created is equal to the unit density required in 24 subsection (1) of this section. 25 (6) Any city subject to the requirements of this section: 26 (a) If applying design review for middle housing, only 27 administrative design review shall be required; 28 (b) Except as provided in (a) of this subsection, shall not 29 require through development regulations any standards for middle 30 housing that are more restrictive than those required for detached 31 single-family residences, but may apply any objective development 32 regulations that are required for detached single-family residences, 33 including, but not limited to, set -back, lot coverage, stormwater, 34 clearing, and tree canopy and retention requirements to ensure 35 compliance with existing ordinances intended to protect critical 36 areas and public health and safety; 37 (c) Shall apply to middle housing the same development permit and 38 environmental review processes that apply to detached single-family 39 residences, unless otherwise required by state law including, but not 40 limited to, shoreline regulations under chapter 90.58 RCW, building Official Print - 11 1110-S2.E AMS ENGR 52959.E 1 codes under chapter 19.27 RCW, energy codes under chapter 19.27A RCW, 2 or electrical codes under chapter 19.28 RCW; 3 (d) Shall not require off-street parking as a condition of 4 permitting development of middle housing within one-half mile walking 5 distance of a major transit stop; 6 (e) Shall not require more than one off-street parking space per 7 unit as a condition of permitting development of middle housing on 8 lots smaller than 6,000 square feet before any zero lot line 9 subdivisions or lot splits; 10 (f) Shall not require more than two off-street parking spaces per 11 unit as a condition of permitting development of middle housing on 12 lots greater than 6,000 square feet before any zero lot line 13 subdivisions or lot splits; and 14 (g) Are not required to achieve the per unit density under this 15 act on lots after subdivision below 1,000 square feet unless the city 16 chooses to enact smaller allowable lot sizes. 17 (7) The provisions of subsection (6)(d) through (f) of this 18 section do not apply: 19 (a) If a local government submits to the department an empirical 20 study prepared by a credentialed transportation or land use planning 21 expert that clearly demonstrates, and the department finds and 22 certifies, that the application of the parking limitations of 23 subsection (6)(d) through (f) of this section for middle housing will 24 be significantly less safe for vehicle drivers or passengers, 25 pedestrians, or bicyclists than if the jurisdiction's parking 26 requirements were applied to the same location for the same number of 27 detached houses. The department must develop guidance to assist 28 cities on items to include in the study; or 29 (b) To portions of cities within a one -mile radius of a 30 commercial airport in Washington with at least 9,000,000 annual 31 enplanements. 32 (8) The provisions of this section do not apply to: 33 (a) Lots designated with critical areas designated under RCW 34 36.70A.170 or their buffers as required by RCW 36.70A.170; 35 (b) A watershed serving a reservoir for potable water if that 36 watershed is or was listed, as of the effective date of this section, 37 as impaired or threatened under section 303(d) of the federal clean 38 water act (33 U.S.C. Sec. 1313(d)); or 39 (c) Lots that have been designated urban separators by countywide 40 planning policies as of the effective date of this section. Official Print - 12 1110-S2.E AMS ENGR 52959.E 1 (9) Nothing in this section prohibits a city from permitting 2 detached single-family residences. 3 (10) Nothing in this section requires a city to issue a building 4 permit if other federal, state, and local requirements for a building 5 permit are not met. 6 (11) A city must comply with the requirements of this section on 7 the latter of: 8 (a) Six months after its next periodic comprehensive plan update 9 required under RCW 36.70A.130 if the city meets the population 10 threshold based on the 2020 office of financial management population 11 data; or 12 (b) 12 months after their next implementation progress report 13 required under RCW 36.70A.130 after a determination by the office of 14 financial management that the city has reached a population threshold 15 established under this section. 16 (12) A city complying with this section and not granted a 17 timeline extension under section 7 of this act does not have to 18 update its capital facilities plan element required by RCW 19 36.70A.070(3) to accommodate the increased housing required by this 20 act until the first periodic comprehensive plan update required for 21 the city under RCW 36.70A.130(5) that occurs on or after June 30, 22 2034. 23 NEW SECTION. Sec. 4. A new section is added to chapter 36.70A 24 RCW to read as follows: 25 (1)(a) The department is directed to provide technical assistance 26 to cities as they implement the requirements under section 3 of this 27 act. 28 (b) The department shall prioritize such technical assistance to 29 cities demonstrating the greatest need. 30 (2)(a) The department shall publish model middle housing 31 ordinances no later than six months following the effective date of 32 this section. 33 (b) In any city subject to section 3 of this act that has not 34 passed ordinances, regulations, or other official controls within the 35 time frames provided under section 3(11) of this act, the model 36 ordinance supersedes, preempts, and invalidates local development 37 regulations until the city takes all actions necessary to implement 38 section 3 of this act. Official Print - 13 1110-S2.E AMS ENGR 52959.E 1 (3)(a) The department is directed to establish a process by which 2 cities implementing the requirements of section 3 of this act may 3 seek approval of alternative local action necessary to meet the 4 requirements of this act. 5 (b) The department may approve actions under this section for 6 cities that have, by January 1, 2023, adopted a comprehensive plan 7 that is substantially similar to the requirements of this act and 8 have adopted, or within one year of the effective date of this 9 section adopts, permanent development regulations that are 10 substantially similar to the requirements of this act. In determining 11 whether a city's adopted comprehensive plan and permanent development 12 regulations are substantially similar, the department must find as 13 substantially similar plans and regulations that: 14 (i) Result in an overall increase in housing units allowed in 15 single-family zones that is at least 75 percent of the increase in 16 housing units allowed in single-family zones if the specific 17 provisions of this act were adopted; 18 (ii) Allow for middle housing throughout the city, rather than 19 just in targeted locations; and 20 (iii) Allow for additional density near major transit stops, and 21 for projects that incorporate dedicated affordable housing. 22 (c) The department may also approve actions under this section 23 for cities that have, by January 1, 2023, adopted a comprehensive 24 plan or development regulations that have significantly reduced or 25 eliminated residentially zoned areas that are predominantly single 26 family. The department must find that a city's actions are 27 substantially similar to the requirements of this act if they have 28 adopted, or within one year of the effective date of this section 29 adopts, permanent development regulations that: 30 (i) Result in an overall increase in housing units allowed in 31 single-family zones that is at least 75 percent of the increase in 32 housing units allowed in single-family zones if the specific 33 provisions of this act were adopted; 34 (ii) Allow for middle housing throughout the city, rather than 35 just in targeted locations; and 36 (iii) Allow for additional density near major transit stops, and 37 for projects that incorporate dedicated affordable housing. 38 (d) The department may determine that a comprehensive plan and 39 development regulations that do not meet these criteria are otherwise 40 substantially similar to the requirements of this act if the city can Official Print - 14 1110-S2.E AMS ENGR 52959.E 1 clearly demonstrate that the regulations adopted will allow for a 2 greater increase in middle housing production within single family 3 zones than would be allowed through implementation of section 3 of 4 this act. 5 (e) Any local actions approved by the department pursuant to (a) 6 of this subsection to implement the requirements under section 3 of 7 this act are exempt from appeals under this chapter and chapter 8 43.21C RCW. 9 (f) The department's final decision to approve or reject actions 10 by cities implementing section 3 of this act may be appealed to the 11 growth management hearings board by filing a petition as provided in 12 RCW 36.70A.290. 13 (4) The department may issue guidance for local jurisdictions to 14 ensure that the levels of middle housing zoning under this act can be 15 integrated with the methods used by cities to calculate zoning 16 densities and intensities in local zoning and development 17 regulations. 18 NEW SECTION. Sec. 5. A new section is added to chapter 36.70A 19 RCW to read as follows: 20 Any city choosing the alternative density requirements in section 21 3(4) of this act may apply to the department for, and the department 22 may certify, an extension for areas at risk of displacement as 23 determined by the antidisplacement analysis that a jurisdiction is 24 required to complete under RCW 36.70A.070(2). The city must create a 25 plan for implementing antidisplacement policies by their next 26 implementation progress report required by RCW 36.70A.130(9). The 27 department may certify one further extension based on evidence of 28 significant ongoing displacement risk in the impacted area. 29 Sec. 6. RCW 36.70A.280 and 2011 c 360 s 17 are each amended to 30 read as follows: 31 (1) The growth management hearings board shall hear and determine 32 only those petitions alleging either: 33 (a) That, except as provided otherwise by this subsection, a 34 state agency, county, or city planning under this chapter is not in 35 compliance with the requirements of this chapter, chapter 90.58 RCW 36 as it relates to the adoption of shoreline master programs or 37 amendments thereto, or chapter 43.21C RCW as it relates to plans, 38 development regulations, or amendments, adopted under RCW 36.70A.040 Official Print - 15 1110-S2.E AMS ENGR 52959.E 1 or chapter 90.58 RCW. Nothing in this subsection authorizes the board 2 to hear petitions alleging noncompliance with RCW 36.70A.5801; 3 (b) That the twenty-year growth management planning population 4 projections adopted by the office of financial management pursuant to 5 RCW 43.62.035 should be adjusted; 6 (c) That the approval of a work plan adopted under RCW 7 36.70A.735(1)(a) is not in compliance with the requirements of the 8 program established under RCW 36.70A.710; 9 (d) That regulations adopted under RCW 36.70A.735(1)(b) are not 10 regionally applicable and cannot be adopted, wholly or partially, by 11 another jurisdiction; ((ems)) 12 (e) That a department certification under RCW 36.70A.735(1)(c) is 13 erroneous; or 14 (f) That the department's final decision to approve or reject 15 actions by a city implementing section 3 of this act is clearly 16 erroneous. 17 (2) A petition may be filed only by: (a) The state, or a county 18 or city that plans under this chapter; (b) a person who has 19 participated orally or in writing before the county or city regarding 20 the matter on which a review is being requested; (c) a person who is 21 certified by the governor within sixty days of filing the request 22 with the board; or (d) a person qualified pursuant to RCW 34.05.530. 23 (3) For purposes of this section "person" means any individual, 24 partnership, corporation, association, state agency, governmental 25 subdivision or unit thereof, or public or private organization or 26 entity of any character. 27 (4) To establish participation standing under subsection (2)(b) 28 of this section, a person must show that his or her participation 29 before the county or city was reasonably related to the person's 30 issue as presented to the board. 31 (5) When considering a possible adjustment to a growth management 32 planning population projection prepared by the office of financial 33 management, the board shall consider the implications of any such 34 adjustment to the population forecast for the entire state. 35 The rationale for any adjustment that is adopted by the board 36 must be documented and filed with the office of financial management 37 within ten working days after adoption. 38 If adjusted by the board, a county growth management planning 39 population projection shall only be used for the planning purposes 40 set forth in this chapter and shall be known as the "board adjusted Official Print - 16 1110-S2.E AMS ENGR 52959.E 1 population projection." None of these changes shall affect the 2 official state and county population forecasts prepared by the office 3 of financial management, which shall continue to be used for state 4 budget and planning purposes. 5 NEW SECTION. Sec. 7. A new section is added to chapter 36.70A 6 RCW to read as follows: 7 (1) Any city choosing the alternative density requirements in 8 section 3(4) of this act may apply to the department for, and the 9 department may certify, an extension of the implementation timelines 10 established under section 3(11) of this act. 11 (2) An extension certified under this section may be applied only 12 to specific areas where a city can demonstrate that water, sewer, 13 stormwater, transportation infrastructure, including facilities and 14 transit services, or fire protection services lack capacity to 15 accommodate the density required in section 3 of this act, and the 16 city has: 17 (a) Included one or more improvements, as needed, within its 18 capital facilities plan to adequately increase capacity; or 19 (b) Identified which special district is responsible for 20 providing the necessary infrastructure if the infrastructure is 21 provided by a special purpose district. 22 (3) If an extension of the implementation timelines is requested 23 due to lack of water supply from the city or the purveyors who serve 24 water within the city, the department's evaluation of the extension 25 must be based on the applicable water system plans in effect and 26 approved by the department of health. Water system plan updates 27 initiated after the effective date of this section must include 28 consideration of water supply requirements for middle housing types. 29 (4) An extension granted under this section remains in effect 30 until the earliest of: 31 (a) The infrastructure is improved to accommodate the capacity; 32 (b) The city's deadline to complete its next periodic 33 comprehensive plan update under RCW 36.70A.130; or 34 (c) The city's deadline to complete its implementation progress 35 report to the department as required under RCW 36.70A.130(9). 36 (5) A city that has received an extension under this section may 37 reapply for any needed extension with its next periodic comprehensive 38 plan update under RCW 36.70A.130 or its implementation progress 39 report to the department under RCW 36.70A.130(9). The application for Official Print - 17 1110-S2.E AMS ENGR 52959.E 1 an additional extension must include a list of infrastructure 2 improvements necessary to meet the capacity required in section 3 of 3 this act. Such additional extension must only be to address 4 infrastructure deficiency that a city is not reasonably able to 5 address within the first extension. 6 (6) The department may establish by rule any standards or 7 procedures necessary to implement this section. 8 (7) The department must provide the legislature with a list of 9 projects identified in a city's capital facilities plan that were the 10 basis for the extension under this section, including planning level 11 estimates. Additionally, the city must contact special purpose 12 districts to identify additional projects associated with extensions 13 under this section. 14 (8) A city granted an extension for a specific area must allow 15 development as provided under section 3 of this act if the developer 16 commits to providing the necessary water, sewer, or stormwater 17 infrastructure. 18 (9) If an area zoned predominantly for residential use is 19 currently served only by private wells, group B water systems or 20 group A water systems with less than 50 connections, or a city or 21 water providers within the city do not have an adequate water supply 22 or available connections to serve the zoning increase required under 23 section 3 of this act, the city may limit the areas subject to the 24 requirements under section 3 of this act to match current water 25 availability. Nothing in this act affects or modifies the 26 responsibilities of cities to plan for or provide urban governmental 27 services as defined in RCW 36.70A.030 or affordable housing as 28 required by RCW 36.70A.070. 29 (10) No city shall approve a building permit for housing under 30 section 3 of this act without compliance with the adequate water 31 supply requirements of RCW 19.27.097. 32 (11) If an area zoned predominantly for residential use is 33 currently served only by on -site sewage systems, development may be 34 limited to two units per lot, until either the landowner or local 35 government provides sewer service or demonstrates a sewer system will 36 serve the development at the time of construction. Nothing in this 37 act affects or modifies the responsibilities of cities to plan for or 38 provide urban governmental services as defined in RCW 36.70A.030. Official Print - 18 1110-S2.E AMS ENGR 52959.E 1 Sec. 8. RCW 43.21C.495 and 2022 c 246 s 3 are each amended to 2 read as follows: 3 (1) Adoption of ordinances, development regulations and 4 amendments to such regulations, and other nonproject actions taken by 5 a city to implement: The actions specified in section 2, chapter 246, 6 Laws of 2022 unless the adoption of such ordinances, development 7 regulations and amendments to such regulations, or other nonproject 8 actions has a probable significant adverse impact on fish habitat; 9 and the increased residential building capacity actions identified in 10 RCW 36.70A.600(1), with the exception of the action specified in RCW 11 36.70A.600(1)(f), are not subject to administrative or judicial 12 appeals under this chapter. 13 (2) Amendments to development regulations and other nonproject 14 actions taken by a city to implement the requirements under section 3 15 of this act pursuant to section 4 (3) (b) of this act are not subject 16 to administrative or judicial appeals under this chapter. 17 Sec. 9. RCW 43.21C.450 and 2012 1st sp.s. c 1 s 307 are each 18 amended to read as follows: 19 The following nonproject actions are categorically exempt from 20 the requirements of this chapter: 21 (1) Amendments to development regulations that are required to 22 ensure consistency with an adopted comprehensive plan pursuant to RCW 23 36.70A.040, where the comprehensive plan was previously subjected to 24 environmental review pursuant to this chapter and the impacts 25 associated with the proposed regulation were specifically addressed 26 in the prior environmental review; 27 (2) Amendments to development regulations that are required to 28 ensure consistency with a shoreline master program approved pursuant 29 to RCW 90.58.090, where the shoreline master program was previously 30 subjected to environmental review pursuant to this chapter and the 31 impacts associated with the proposed regulation were specifically 32 addressed in the prior environmental review; 33 (3) Amendments to development regulations that, upon 34 implementation of a project action, will provide increased 35 environmental protection, limited to the following: 36 (a) Increased protections for critical areas, such as enhanced 37 buffers or setbacks; 38 (b) Increased vegetation retention or decreased impervious 39 surface areas in shoreline jurisdiction; and Official Print - 19 1110-S2.E AMS ENGR 52959.E 1 (c) Increased vegetation retention or decreased impervious 2 surface areas in critical areas; 3 (4) Amendments to technical codes adopted by a county, city, or 4 town to ensure consistency with minimum standards contained in state 5 law, including the following: 6 (a) Building codes required by chapter 19.27 RCW; 7 (b) Energy codes required by chapter 19.27A RCW; and 8 (c) Electrical codes required by chapter 19.28 RCW. 9 (5) Amendments to development regulations to remove requirements 10 for parking from development proposed to fill in an urban growth area 11 designated according to RCW 36.70A.110. 12 NEW SECTION. Sec. 10. A new section is added to chapter 64.34 13 RCW to read as follows: 14 A declaration created after the effective date of this section 15 and applicable to an area within a city subject to the middle housing 16 requirements in section 3 of this act may not actively or effectively 17 prohibit the construction, development, or use of additional housing 18 units as required in section 3 of this act. 19 NEW SECTION. Sec. 11. A new section is added to chapter 64.32 20 RCW to read as follows: 21 A declaration created after the effective date of this section 22 and applicable to an association of apartment owners located within 23 an area of a city subject to the middle housing requirements in 24 section 3 of this act may not actively or effectively prohibit the 25 construction, development, or use of additional housing units as 26 required in section 3 of this act. 27 NEW SECTION. Sec. 12. A new section is added to chapter 64.38 28 RCW to read as follows: 29 Governing documents of associations within cities subject to the 30 middle housing requirements in section 3 of this act that are created 31 after the effective date of this section may not actively or 32 effectively prohibit the construction, development, or use of 33 additional housing units as required in section 3 of this act. 34 NEW SECTION. Sec. 13. A new section is added to chapter 64.90 35 RCW to read as follows: Official Print - 20 1110-S2.E AMS ENGR 52959.E 1 Declarations and governing documents of a common interest 2 community within cities subject to the middle housing requirements in 3 section 3 of this act that are created after the effective date of 4 this section may not actively or effectively prohibit the 5 construction, development, or use of additional housing units as 6 required in section 3 of this act. 7 NEW SECTION. Sec. 14. The department of commerce may establish 8 by rule any standards or procedures necessary to implement sections 2 9 through 7 of this act. 10 NEW SECTION. Sec. 15. If specific funding for the purposes of 11 this act, referencing this act by bill or chapter number, is not 12 provided by June 30, 2023, in the omnibus appropriations act, this 13 act is null and void." E2SHB 1110 - S COMM AMD By Committee on Ways & Means ADOPTED 04/11/2023 14 On page 1, line 3 of the title, after "housing;" strike the 15 remainder of the title and insert "amending RCW 36.70A.030, 16 36.70A.280, 43.21C.495, and 43.21C.450; adding new sections to 17 chapter 36.70A RCW; adding a new section to chapter 64.34 RCW; adding 18 a new section to chapter 64.32 RCW; adding a new section to chapter 19 64.38 RCW; adding a new section to chapter 64.90 RCW; and creating 20 new sections." --- END --- Official Print - 21 1110-S2.E AMS ENGR 52959.E Revised July 2023 Middle Housing in Washington: Fact Sheet for Implementing E2SHB 1110 Topics In 2023, the Washington State Legislature passed E2SHB 1110 ("HB 1110"), which substantially changes the way many cities in Washington are to plan for housing. HB 1110 requires cities of certain sizes and locations to allow multiple dwelling units per lot in a middle housing type of form. Commerce is collecting questions from local governments about the bill and other related legislation passed this session, and has answered certain questions received below, with more to follow. If you have additional questions or need for technical assistance, please email dave.osaki@commerce.wa.aov or Anne.Fritzel@commerce.wa.gov. What is middle housing? HB 1110 defines "Middle housing" as "buildings that are compatible in scale, form, and character with single-family houses and contain two or more attached, stacked, or clustered homes including duplexes, triplexes, fourplexes, fiveplexes, sixplexes, townhouses, stacked flats, courtyard apartments, and cottage housing." What types of assistance will be coming from Commerce? • Model ordinances: Commerce is directed under the HB 1110 to publish model ordinances no later than six months following the effective date of the bill, which will be in January of 2024. Stakeholders will be notified of the opportunity to review drafts of the model middle housing ordinances in the fall of 2023 and invited to provide comment. • Grant program: Commerce will offer a statewide competitive grant program in the 2023-2025 biennium to help jurisdictions implement the bill's requirements. All grant funds must be expended by June of 2025. • Continuing guidance from Commerce: Commerce has already developed a web page on middle housing, which includes tools such as PowerPoint presentations, photos, posters, and will include objective design standards, and a pro -forma calculator that local governments can use to communicate about middle housing.' Commerce will also be developing the following to implement the middle housing legislation: • Middle housing model ordinances and guidance on the requirements • Rules for a process by which cities may seek Commerce approval of an alternative local action necessary to meet the requirements of the bill.' www.co=eme. wa. gov/serving-communities/growth-management/growth-management-tonics/manning-for-middle-housing/ 2 See E2SHB 1110, Sec. 4(3) E25HB 1110 MIDDLE HOUSING PRELIMINARY INFORMATION, JULY 13, 2023 V3.1 • Standards and procedures for Commerce to use when processing a city request to extend the date by when middle housing rules must be applied, when and where certain criteria apply. • Guidance to assist cities on preparing a parking study.' • Possible changes to land capacity and buildable lands guidance to address units per lot density requirements. APPLICABILITY What are cities required to do? Table 1 below summarizes the middle housing requirements that apply to cities in each of the three population tiers established by HB 1110.' Commerce will provide more detail in the coming year on requirements of the bill and implementation tools. Table 1: Basic requirements for cities subject to the HB 1110 in the 2024-2027 periodic update. Minimum number of NEAR A MAJOR TRANSIT WITH AFFORDABLE middle housing units that STOP: Minimum number of HOUSING: Minimum must be allowed per lot in middle housing units that number of middle housing predominately residential must be allowed per lot units that must be allowed zones within % mile walking per lot with affordable distance of major transit stop housing in predominately in predominately residential residential zones where zones density in applicable zone does not otherwise allow this number (See also HB 1110, Sec. 3(2)) TIER ONE: Cities with 4 du/lot, unless zoning 6 du/ lot, unless zoning 6 du/lot if at least 2 units population of at least 75,000 permits higher densities permits higher densities are affordable, unless E2SHB 1110, Sec. 3(1)(b) zoning permits higher densities TIER TWO: Cities with 2 du/lot unless zoning 4 du/lot, unless zoning 4 du/lot if at least 1 unit is population of at least permits higher densities permits higher densities affordable, unless zoning 25,000 but less than 75,000 permits higher densities E2SHB 1110, Sec. 3(1)(a) TIER THREE: Cities with 2 du/lot, unless zoning N/A N/A population under 25,000 permits higher densities that are contiguous with a UGA that includes the largest city in a county with a population over 275,000 E2SHB 1110, Sec. 3(1)(c) Which cities are required to allow middle housing? Over the 2024-2027 periodic update cycle, cities of at least 25,000 in population must allow middle housing, as well as cities with a population less than 25,000 in a county of over 275,000 population and which are within a contiguous urban growth area that includes the largest city in the county. Table 2, at the end of the document, identifies 3 See E2SHB 1110, Sec. 3(7)(a) 4 E2SHB 1110, Sec. 3(11)(a) requires use of the Washington State Office of Financial Management's 2020 April 1 population data. https:Hofm.wa.gov/wash ingLon-data-research/population-demographics/population-esti mates E25HB 1110 MIDDLE HOUSING PRELIMINARY INFORMATION, JULY 13, 2023 V3.1 cities currently subject to the requirements of HB 1110, based on 2020 Office of Financial Management population data, and Commerce's best understanding.' When does a local government need to allow middle housing? Cities subject to the bill must implement the requirements no later than six months after their next periodic update required under RCW 36.70A.130. Cities in the central Puget Sound region (within King, Kitsap, Snohomish and Pierce counties) have the earliest periodic review deadline, on December 31, 2024, which means that they must implement the bill by June 30, 2025. Additional cities may be added to this list over time or moved to the next tier, should they meet the population threshold in future years. Commerce recommends cities look ahead to when their population might meet the thresholds in the bill and be prepared to meet the requirement, if applicable, within 12 months after their next implementation progress report required under RCW 36.70A.130.6 DESIGN AND DENSITY What does E2SHB 1110 mean when it uses the term "density"? "Density" measured in "dwelling units per acre" has traditionally been the way that zoning ordinances have regulated residential land use. HB 1110 introduces the term "unit density' because the bill focuses instead on the minimum number of dwelling units on a lot, not on a per acre basis. Local jurisdictions may need to review and amend comprehensive plan policies and development regulations to take this into consideration, at least for accommodating middle housing. How can cities adopt design and development standards that reflect differences between detached single -unit houses and "middle housing" types? One way to adopt design and development standards that reflect differences between detached single - unit houses and "middle housing" types is to adopt standards for middle housing that are less restrictive than existing standards required for detached single-family residences. Because HB 1110 Section (6)(b) states that middle housing regulations may not be "more restrictive" than for detached single-family residences, there is flexibility for some standards to be less restrictive.' One example might be to allow driveway widths that are narrower for certain middle housing types than for a detached house. The less restrictive standard, however, must still be objective (see further below in a separate question regarding EHB 1293's objective development regulations). An alternate way to adopt design and development standards is through the administrative design review process in HB 1110 Section 3(6)(a). "Administrative design review" is defined, in part, as, "...a development permit process whereby an application is reviewed, approved, or denied by the planning director or the planning director's designee based solely on objective design and development standards without a public predecision hearing..."' Objective design review standards enable a city to adopt those middle housing specific standards that it deems necessary to achieve compatibility in residential zones where detached single family houses are the predominant use. These middle housing standards may include design and development standards that are not existing requirements for a detached single family residence so long as these design and development standards are "objective" and promote compatibility. The middle housing definition conveys that objective design and development standards are intended to make middle housing buildings compatible with, not identical to, the scale, form and character of detached single family houses. z *NEW* QUESTION JULY 2023: Can a city still have a design review board? While some cities may choose to have a design review board review certain types of permits, e.g., for commercial development, HB 1110 allows only administrative design review for middle housing. This means that the planning director or the planning director's designee must decide based on objective criteria, and not a design review board.10 Another 2023 bill, ESHB 1293, places constraints on all design review, not just for housing, including a limitation of no more than one public meeting and the requirement to use only "clear and objective" development regulations. ' If your city is incorrectly listed or incorrectly omitted, please contact Commerce. 6 E2SHB 1110, Sec. 3(11)(b) 7 See E2SHB 1110, Sec. 3 6(a) and 6(b) 8 See E2SHB 1110, Sec. 2(1) 9 See E2SHB 1110, Sec 2(21) "Middle housing" means buildings that are compatible in scale, form, and character with single-family houses and contain two or more attached, stacked, or clustered homes including duplexes, triplexes, fourplexes, fiveplexes, sixplexes, townhouses, stacked flats, courtyard apartments, and cottage housing. 10 E2SHB 1110, Sec. 3(6)(a) E25HB 1110 MIDDLE HOUSING PRELIMINARY INFORMATION, JULY 13, 2023 V3.1 *NEW* QUESTION JULY 2023 Are cities required to adopt Commerce's 2023 Objective Design and Development Standards? No. The standards in the Objective Design and Development Standards Toolkit are provided solely as a resource for cities to consider at their discretion to provide for middle housing. Commerce will prepare model ordinances by January 2024 specific to HB 1110 requirements. Given that all cities must allow two accessory dwelling units per lot under HB 1337, how does this harmonize with E2SHB 1110 (middle housing)? HB 1337 (section 4(1)(c)) requires that, within urban growth areas, cities and counties allow two accessory dwelling units on all lots in zoning districts that allow single-family homes. HB 1110 (section 3(5)), requires that cities allow at least six of the nine types of middle housing to achieve the required unit count. A city must allow accessory dwelling units and such units may help achieve the unit count, AND the city also must allow middle housing types (such as a duplex) that can satisfy the minimum density" (i.e., unit count per lot). For example, where a city must allow two or four units per lot, it does not have to increase the unit count to also accommodate two ADUs.12 A city may choose to allow such a higher count but is not required to do so. Both bills require that a city allow separate sale of units and the land they sit upon. *NEW* QUESTION JULY 2023 Is a city required to change the name of zoning districts that include "single-family" (or something similar) in the title? No. HB 1110 does not require that anew name, be assigned to a zoning district, however, some cities have chosen to rename their single-family zones. For example, the City of Walla Walla has renamed its previous "single family" zones as "Neighborhood Residential Zones" which allow both detached and middle housing types. A city that wishes to rename an existing zoning district, or to create, name, and map a new one, has authority to do so as a legislative action, LOT SPLITS AND SUBDIVISION Does HB 1110 require a city to allow subdivision of land into lots smaller than 1,000 square feet and then also require that the city allow additional units on these small lots? HB 1110 Section 3(6)(g) states, in part, "Any city subject to the requirements of this section ... are not required to achieve the .... density under this act on lots after subdivision below 1,000 square feet unless the city chooses to enact smaller allowable lot sizes." A city has discretion to allow subdivision of land into lots less than 1,000 square feet and allow additional units on each of those lots, but is not required to do so. While lots may be subdivided (or even if a lot is not subdivided), the ability to fully achieve four units per lot, for instance, may be limited by the size of the lot and the application of development standards such as maximum lot coverage, parking, and setback requirements. TRANSIT STOPS AND PARKING *NEW* QUESTION JULY 2023: The middle housing bill requires increases in allowed density within "walking distance of a major transit stop". Does this mean distance is to be measured along some reasonable path, such as street network or by a straight line distance? A city may use a method of measuring walking distance that is not just a straight line distance (although using a straight line distance is acceptable if a city chooses that method). To measure walking distance typically means to calculate the actual walking distance of each path (whether sidewalk, street edge, or trail) that connects one location to another. For purposes of HB 1110, this would include measuring the walking distance of each pedestrian route leading from a lot to the lot or specific right of way location on which a major transit stop is located. This type of measurement can be done using certain computerized mapping applications. However, it is likely to result in a smaller total area (and not identified by standard shape, such as a circle) on a map than a simple measurement that radiates equidistant from the major transit stop. For practical reasons, jurisdictions are encouraged 11 E2SHB 1110, Section 3(5) states, "A city must allow at least six of the nine types of middle housing to achieve the unit density required in subsection (1) of this section. A city may allow accessory dwelling units to achieve the unit density required in subsection (1) of this section. Cities are not required to allow accessory dwelling units or middle housing types beyond the density requirements in subsection (1) of this section. A city must also allow zero lot line short subdivision where the number of lots created is equal to the unit density required in subsection (1) of this section." 12 E2SHB 1110 and EHB 1337 do not expressly state how to reconcile the different requirements between the two bills for jurisdictions with a two unit density requirement per lot. E2SHB 1110 MIDDLE HOUSING PRELIMINARY INFORMATION, JULY 13, 2023 V3.1 to define a station area using logical boundaries such as roads, edges of land use designations, or other features to delineate a logical area. *NEW* QUESTION July 2023 What is the maximum off-street parking requirement for middle housing on a lot exactly 6,000 square feet in area? E2SHB 1110 Section 3(6)(e) and (f) address off-street parking requirements for middle housing based on lot size as follows, "(e) Shall 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 before any zero lot line subdivisions or lot splits; (f) Shall 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 before any zero lot line subdivisions or lot splits;" A lot exactly 6,000 square feet is not addressed. In instances where a lot is 6,000 square feet, a jurisdiction may specify in its development regulations whether (6)(e) or (6)(f) will apply. Regardless, fewer parking spaces than the maximum under HB 1110 may be appropriate in many locations. In general, in this specific situation, Commerce recommends requiring fewer parking spaces to reduce barriers to housing development. A developer may choose to provide additional parking spaces. ADDITIONAL QUESTIONS: Commerce has received additional questions, which will be answered in further updates, including: • How are jurisdictions to allow zero lot line subdivisions? • How does the definition of Major Transit Stop, which includes, "fixed guideway systems', apply? • How does the provision in ESHB 1293 about height apply to "stepbacks" in particular circumstances (such as for properties adjacent to single-family zones)? • Should airport overlay areas be exempted from needing to allow additional middle housing? • Are there best practices for wildfire/urban interface areas that could be used for E2SHB 1110 implementation? • Will Commerce provide guidance to utilities to help with growth modeling? • E2SHB 1110, EHB 1337, and ESHB 1293 establish requirements for local government development regulations, but not comprehensive plans. Do we need to adopt plan policies that reference or align with these new regulatory changes? • Can a city adopt and apply middle housing design and development standards through an overlay zone? • What type of design standards may cities require for accessory dwelling units? • How should land capacity be calculated, given that more units will be allowed? • Does E2SHB 1110 have any bearing on vacant residential land that is yet to be platted? The bill does not seem to indicate if it only applies to platted lots of record as of 2023, or if lots created through future residential plats would also be affected. AFFORDABILITY • Would the bill requirement for mid -size cities to allow 4 units per lot outside Y. mile distance from a major transit stop mean we cannot allow additional units without an affordability requirement? • Does E2SHB 1110 require jurisdictions to allow plats within X mile of transit with 4-plexes on each lot, or does that requirement only apply to existing lots meeting the size requirements of the zoning? • Does E2SHB 1110 allow jurisdictions to apply affordability requirements within X mile of transit? • Would an affordability requirement that provided the same number of affordable units, but some flexibility in the types of units allowed, be considered compliant? CONTACT INFORMATION Dave Osaki, Middle Housing Lead: dave.osaki@commerce.wa.us Anne Fritzel: Growth Management Housing Programs Manager anne.fritzel@commerce.wa.us E2SHB 1110 MIDDLE HOUSING PRELIMINARY INFORMATION, JULY 13, 2023 V3.1 Table 2 - 2020 City populations and three tiers per HB 1110 Section 3(1)(a)-(c) TIER 1 TIER 2 TIER 3 Cities with population of at least 75k Cities with population of at least 25k and but less than 75k Cities with populations less than 25K that are within a contiguous UGA with the largest city, in a county with a population more than 275,000 Seattle 737,015 Redmond 73,256 Kenmore 23,914 Spokane 228,989 Marysville 70,714 Tukwila 21,798 Tacoma 219,346 Sammamish 67,455 Mukilteo 21,538 Vancouver 190,915 Lakewood 63,612 Mountlake Terrace 21,286 Bellevue 151,854 Richland 60,560 Mill Creek 20,926 Kent 136,588 Shoreline 58,608 Covington 20,777 Everett 110,629 Olympia 55,382 Arlington 19,868 Renton 106,785 Lacey 53,526 Washougal 17,039 Spokane Valley 102,976 Burien 52,066 Port Orchard 15,587 Federal Way 101,030 Bothell 48,161 Lake Forest Park 13,630 Yakima 96,968 Bremerton 43,505 Woodinville 13,069 Kirkland 92,175 Puyallup 42,937 Newcastle 13,017 Bellingham 91,482 Edmonds 42,853 Edgewood 12,327 Auburn 87,256 Issaquah 40,051 Liberty Lake 12,003 Kennewick 83,921 Lynnwood 38,568 Fife 10,999 Pasco 77,108 Lake Stevens 35,630 Airway Heights 10,757 Counties with April 1, 2020 population greater than 275,000 Wenatchee 35,575 Sumner 10,621 Mount Vernon 35,219 DuPont 10,151 King 2,269,675 University Place 34,866 Milton 8,697 Pierce 920,393 Walla Walla 34,060 Pacific 7,235 E2SHB 1110 MIDDLE HOUSING PRELIMINARY INFORMATION, JULY 13, 2023 V3.1 Snohomish 827,957 Des Moines 32,888 Fircrest 7,156 Spokane 539,339 SeaTac 31,454 Normandy Park 6,771 Clark 503,311 Maple Valley 28,013 Steilacoom 6,727 Thurston 294,793 Camas 26,065 Brier 6,560 Kitsap 275,611 Mercer Island 25,748 Black Diamond 41697 Tumwater 25,573 Algona 3,290 Moses Lake 25,146 Clyde Hill 3,126 Medina 2,915 Millwood 1,881 Woodway 1,318 Yarrow Point 1,134 Ruston 1,055 Hunts Point 457 Beaux Arts Village 317 E2SHB 1110 MIDDLE HOUSING PRELIMINARY INFORMATION, JULY 13, 2023 V3.1 CITY OF SPOKANE VALLEY Request for Planning Commission Action Meeting Date: August 24, 2023 Item: Check all that apply ❑ old business ❑ new business ❑ public hearing ❑ information ® study session ❑ pending legislation AGENDA ITEM TITLE: HB 1425 Annexation Sales & Use Tax GOVERNING LEGISLATION: RCW 35.13.470 and RCW 82.14.415 PREVIOUS COMMISSION ACTION: None BACKGROUND: On May 9, 2023, Governor Inslee signed HB 1425 relating to facilitating municipal annexations known as the Annexation Sales and Use Tax with an effective date of July 23, 2023. Counties are growing in unincorporated areas. The Growth Management Act assumes that unincorporated Urban Growth Areas will be annexed over time by cities. Cities are better equipped to provide urban services than counties and allow a wider array of housing types at greater densities than counties. Cities have resisted annexing unincorporated areas due to the fiscal impact of providing the urban services. The Annexation Sales and Use Tax provides the financial incentive for cities to annex areas. An interlocal agreement between the county and city is required to balance the financial impacts of annexation. The annexation can negatively impact counties as cities annex land for commercial and industrial lands while leaving residential lands to the county. The interlocal agreement requires a discussion about balancing such annexations to prevent financial damage to counties who keep residential areas and give up commercial and industrial areas. HB 1425 applies to all cities and counties and is triggered by an inter -local agreement between a city and county. Cities can receive: • 1/10th of one percent sales tax credit for annexations of more than 2,000 in population but less than 10,000. • 2/10th of one percent sales tax credit for annexations of more than 10,000 in population. • Requires an interlocal agreement for annexed areas in which a sales and use tax is imposed to address certain criteria regarding loss and gain of revenue, development and ownership of infrastructure, and revenue -sharing agreements. • The end date to impose the tax is July 1, 2028. • All revenue collected under this sales tax credit may only be used to provide, maintain, and operate municipal services for the annexation area. The tax is a credit against the state sales and use tax. The Department of Revenue must collect the taxes on behalf of the city at no cost to the city and must remit the tax to the city. ACTION OR MOTION: None STAFF CONTACT: Martin Palaniuk, Associate Planner ATTACHMENTS: 1. Second Substitute House Bill 1425 RPCA Study Session for HB 1425 Legislative Update Page 1 of l [a)0l 4008:0C AN0to]4I<ila■aINNNamahhYY SECOND SUBSTITUTE HOUSE BILL 1425 Chapter 351, Laws of 2023 68th Legislature 2023 Regular Session MUNICIPAL ANNEXATIONS —SALES AND USE TAX EFFECTIVE DATE: July 23, 2023 Passed by the House March 3, 2023 Yeas 96 Nays 0 LAURIE JINKINS Speaker of the House of Representatives Passed by the Senate April 19, 2023 Yeas 49 Nays 0 DENNY HECK President of the Senate Approved May 9, 2023 10:48 AM JAY INSLEE Governor of the State of Washington CERTIFICATE I, Bernard Dean, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is SECOND SUBSTITUTE HOUSE BILL 1425 as passed by the House of Representatives and the Senate on the dates hereon set forth. BERNARD DEAN Chief Clerk FILED May 10, 2023 Secretary of State State of Washington SECOND SUBSTITUTE HOUSE BILL 1425 Passed Legislature - 2023 Regular Session State of Washington 68th Legislature 2023 Regular Session By House Finance (originally sponsored by Representatives Berg, Low, Eslick, Ryu, Stonier, Duerr, Ortiz -Self, Cortes, Peterson, Fosse, Donaghy, and Pollet) READ FIRST TIME 02/23/23. 1 AN ACT Relating to facilitating municipal annexations; and 2 amending RCW 35.13.470 and 82.14.415. 3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON: 4 Sec. 1. RCW 35.13.470 and 2003 c 299 s 1 are each amended to 5 read as follows: 6 (1) The legislative body of a county, city, or town planning 7 under chapter 36.70A RCW and subject to the requirements of RCW 8 36.70A.215 may initiate an annexation process for unincorporated 9 territory by adopting a resolution commencing negotiations for an 10 interlocal agreement as provided in chapter 39.34 RCW between a 11 county and any city or town within the county. The territory proposed 12 for annexation must meet the following criteria: (a) Be within the 13 city or town urban growth area designated under RCW 36.70A.110, and 14 (b) at least ((shy)) 60 percent of the boundaries of the territory 15 proposed for annexation must be contiguous to the annexing city or 16 town or one or more cities or towns. 17 (2) If the territory proposed for annexation has been designated 18 in an adopted county comprehensive plan as part of an urban growth 19 area, urban service area, or potential annexation area for a specific 20 city or town, or if the urban growth area territory proposed for 21 annexation has been designated in a written agreement between a city P. 1 2SHB 1425.SL 1 or town and a county for annexation to a specific city or town, the 2 designation or designations shall receive full consideration before a 3 city or county may initiate the annexation process provided for in 4 RCW 35.13.480. 5 (3) The agreement shall describe the boundaries of the territory 6 to be annexed. A public hearing shall be held by each legislative 7 body, separately or jointly, before the agreement is executed. Each 8 legislative body holding a public hearing shall, separately or 9 jointly, publish the agreement at least once a week for two weeks 10 before the date of the hearing in one or more newspapers of general 11 circulation within the territory proposed for annexation. 12 (4) If an interlocal agreement under this section is used for a 13 sales and use tax under RCW 82.14.415, the agreement under this 14 section must address the following: 15 (a) Balancing of annexations of commercial, industrial, and 16 residential properties so that any potential loss or gain is 17 considered and distributed fairly as determined by tax revenue; 18 (b) Development, ownership, and maintenance of infrastructure; MOINNOQil 20 (c) The potential for revenue -sharing agreements. 21 (5) Following adoption and execution of the agreement by both 22 legislative bodies, the city or town legislative body shall adopt an 23 ordinance providing for the annexation of the territory described in 24 the agreement. The legislative body shall cause notice of the 25 proposed effective date of the annexation, together with a 26 description of the property to be annexed, to be published at least 27 once each week for two weeks subsequent to passage of the ordinance, 28 in one or more newspapers of general circulation within the city and 29 in one or more newspapers of general circulation within the territory 30 to be annexed. If the annexation ordinance provides for assumption of 31 indebtedness or adoption of a proposed zoning regulation, the notice 32 shall include a statement of the requirements. Any territory to be 33 annexed through an ordinance adopted under this section is annexed 34 and becomes a part of the city or town upon the date fixed in the 35 ordinance of annexation, which date may not be fewer than ((€erty- 36 €tee)) 45 days after adoption of the ordinance. 37 Sec. 2. RCW 82.14.415 and 2016 c 5 s 1 are each amended to read 38 as follows: p. 2 2SHB 1425.SL 1 (1) The legislative authority of any city ((that is leeazed in a 2 )) that 3 annexes an area consistent with its comprehensive plan required by 4 chapter 36.70A RCW may impose a sales and use tax in accordance with 5 the terms of this chapter. The tax is in addition to other taxes 6 authorized by law and is collected from those persons who are taxable 7 by the state under chapters 82.08 and 82.12 RCW upon the occurrence 8 of any taxable event within the city. The tax may only be imposed by 9 a city if: 10 (a) (( 11 12 easeef a erty Eiesembedtinder stibseetren (3)(a) (i) ef this suren, 13 14 4b})) The city legislative authority determines by resolution or 15 ordinance that the projected cost to provide municipal services to 16 the annexation area exceeds the projected general revenue that the 17 city would otherwise receive from the annexation area on an annual 18 basis; and 19 (b) The city, as provided in RCW 35A.14.472, 35A.14.296, or 20 35.13.470, has entered into an interlocal agreement with the county 21 reaardina the proposed annexation area. 22 (2) The tax authorized under this section is a credit against the 23 state tax under chapter 82.08 or 82.12 RCW. The department of revenue 24 must perform the collection of such taxes on behalf of the city at no 25 cost to the city and must remit the tax to the city as provided in 26 RCW 82.14.060. 27 (3) ( ( (a)) weep in (b) this ) The as pre-�i-deb e` sebseetieawe) 28 maximum rate of tax any city may impose under this section is: 29 ((fi})) h 0.1 percent for each annexed area in which the 30 population is greater than ((ten theasand)) 2,000 and less than 31 (( 32 33 34 leeateEi illie five _..d within a ---- 3 1 1 ` ` with - ever ene - - 35 h"narea theuscn )) 10,000; and 36 (((ii))) h 0.2 percent for an annexed area in which the 37 population is greater than (( )) 10,000. 38 (((b) Beginning 4tily 1, 2911, the tax, ifRpese4 fRam-iffttifft rate ef 39 this is9.85t fer are rien the under seetien laeree an anneiEed 40 latie is hca hetisand if the 1 '1 - - J--`--- siiEtee anne-ed area was, p. 3 2SHB 1425.SL 3 4 (4) ( (tea BiEee}a asjare-�ide (b) of this subseetieawe) ) The 5 maximum cumulative rate of tax a city may impose under subsection (3) 6 ((4a})) of this section is 0.2 percent for the total number of 7 annexed areas the city may annex. 8 (( 9 subsection (3)(ter efthis seetien is0.3jaeree.t, beginning '-_,; 10 11 1,2919, 4 hat weidid have etherwise .11ew..a the .._mil- to inereasethe 12 rate ef ta3E rfftlaesea --ems seetien absent —the —rate lifftrt -M. e:ed- 13 in (a) e f th • .-b, eet . 14 15 (3) this is 0.85 the sebseetien (b)e€ seetienjaereent—€er singe 16 17 idnder (b) this ,.eetien net a eity sixbseetien (3) of fftay e nee se - 18 ------ ----------------- ---- - Year. 19 (5) ( ( ) ) The 20 tax imposed by this section may only be imposed at the beginning of a 21 fiscal year and may continue for no more than ((tell)) 10 years from 22 the date that each increment of the tax is first imposed. Tax rate 23 increases due to additional annexed areas are effective on July 1st 24 of the fiscal year following the fiscal year in which the annexation 25 occurred, provided that notice is given to the department as set 26 forth in subsection (9) of this section. 27 (((b) The tax, ifRpesed under siibseetien (3) (b) ef this seetien fRa-Y 28 29 fer ne xftare than years ficefft the Elate 4'h, eh inerefftentefthe 30 taiE s first esed.)) 31 (6) All revenue collected under this section may be used solely 32 to provide, maintain, and operate municipal services for the 33 annexation area. 34 (7) The revenues from the tax authorized in this section may not 35 exceed that which the city deems necessary to generate revenue equal 36 to the difference between the city's cost to provide, maintain, and 37 operate municipal services for the annexation area and the general 38 revenues that the cities would otherwise expect to receive from the 39 annexation during a year. If the revenues from the tax authorized in 40 this section and the revenues from the annexation area exceed the p. 4 2SHB 1425.SL 1 costs to the city to provide, maintain, and operate municipal 2 services for the annexation area during a given year, the city must 3 notify the department and the tax distributions authorized in this 4 section must be suspended for the remainder of the year. 5 (8) No tax may be imposed under this section before July 1, 6 ((2997)) 2023. Before imposing a tax under this section, the 7 legislative authority of a city must adopt an ordinance that includes 8 the following: 9 (a) A certification that the amount needed to provide municipal 10 services to the annexed area reflects the city's true and actual 11 costs; 12 (b) The rate of tax under this section that is imposed within the 13 city; and 14 (c) The threshold amount for the first fiscal year following the 15 annexation and passage of the ordinance. 16 (9) The tax must cease to be distributed to the city for the 17 remainder of the fiscal year once the threshold amount has been 18 reached. No later than March 1st of each year, the city must provide 19 the department with a certification of the city's true and actual 20 costs to provide municipal services to the annexed area, a new 21 threshold amount for the next fiscal year, and notice of any 22 applicable tax rate changes. Distributions of tax under this section 23 must begin again on July 1st of the next fiscal year and continue 24 until the new threshold amount has been reached or June 30th, 25 whichever is sooner. Any revenue generated by the tax in excess of 26 the threshold amount belongs to the state of Washington. Any amount 27 resulting from the threshold amount less the total fiscal year 28 distributions, as of June 30th, may not be carried forward to the 29 next fiscal year. 30 (10) ( (The tamest eease te be Eiistribatedte a ei y ifftpesinej 31 the tax .ier b � (3) (b) f this the .der of L1-SC�ST�J�ef����.-n `__���rJ rSeT�^J�T CTL��C'fii�t 32 the year, if the tetaldistribidtiens te the eity ifftpesinq 33 taiE-cicccccseven --n^rrrr____ seven _________ ______1 ____ __________. _._____: 34 fer tire—€iseal year. eity fftay net ixRjaese tax,inn er subseetien 35 36 the eeelle residing within the anneiEed area. A eit 37 bay a_e_ sabseetien (3) (b)e€ the seeden if it previelesewer 38 serviee in the a ....a . 39 ))) The resident population of the annexation area must be 40 determined in accordance with chapter 35.13 or 35A.14 RCW. p. 5 2SHB 1425.SL 1 ( ((12) ) ) (11) A city may not begin to impose the tax authorized 2 by this section after July 1, 2028. 3 (12) The following definitions apply throughout this section 4 unless the context clearly requires otherwise: 5 (a) "Annexation area" means an area that has been annexed to a 6 city under chapter 35.13 or 35A.14 RCW. "Annexation area" includes 7 all territory described in the city resolution. 8 (b) "Commenced annexation" means the initiation of annexation 9 proceedings has taken place under the direct petition method or the 10 election method under chapter 35.13 or 35A.14 RCW. 11 (c) "Department" means the department of revenue. 12 (d) "Municipal services" means those services customarily 13 provided to the public by city government. 14 (e) "Fiscal year" means the year beginning July 1st and ending 15 the following June 30th. 16 (f) "Potential annexation area" means one or more geographic 17 areas that a city has officially designated for potential future 18 annexation, as part of its comprehensive plan adoption process under 19 the state growth management act, chapter 36.70A RCW. 20 (g) "Threshold amount" means the maximum amount of tax 21 distributions as determined by the city in accordance with subsection 22 (7) of this section that the department must distribute to the city 23 generated from the tax imposed under this section in a fiscal year. Passed by the House March 3, 2023. Passed by the Senate April 19, 2023. Approved by the Governor May 9, 2023. Filed in Office of Secretary of State May 10, 2023. --- END --- p. 6 2SHB 1425.SL