From Washington State Department of Commerce <[email protected]>
Subject Planners’ Newsletter – Legislative Update
Date May 29, 2025 7:31 PM
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New laws affect planners across Washington



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May 29, 2025
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Planners’ Newsletter – Legislative Update
Washington state Capitol

With Gov. Ferguson’s final signatures last week, the 2025 legislative session is in the books. It was a memorable session, both for the new leadership and the challenging budget scenario lawmakers faced.

Despite the budget pressure, support for local planning remained strong. Land use and housing were hot topics, with many bills aimed at bolstering housing production and streamlining permitting processes to meet the goal of 1.1 million new homes by 2044.

Below is a summary of legislation important to communities planning under the Growth Management Act. Some bills have specific timelines for implementation. If no effective date is specified, the law takes effect July 27, 2025.

If you have questions about how these new laws affect your jurisdiction, please contact your regional planner [ [link removed] ].  

 

SB 5148: Housing Accountability Act

SB 5148 [ [link removed] ] (codified Chapter 269, Laws of 2025) provides cities and counties the option to request Commerce review and certify their housing elements and development regulations. Commerce also must select 10 cities or counties each year for review of their housing elements and any associated housing development regulations. Certification is based on consistency with laws and regulations specified in the bill.

If Commerce determines that a city or county under review is not in compliance with the requirements, the jurisdiction has several opportunities to revise their housing element and regulations before it is considered non-compliant. Non-compliant jurisdictions may not deny affordable or moderate-income housing developments. 

*How it works:*


* Commerce publishes objective standards and maintains compliance status.
* Up to 10 jurisdictions per year may be selected for detailed
* Non-compliant jurisdictions cannot deny affordable or moderate-income projects that meet density, critical areas, and shoreline criteria.

*Impact for **p**lanners:* Option to request Commerce review; potential restrictions on discretionary denials; new tracking of compliance.

 

HB 1494: Expanding the MFTE program

HB 1494 [ [link removed] ] (Chapter 164, Laws of 2025) implements recommendations from Commerce’s 2023 Legislative report [ [link removed] ] to improve the multifamily tax exemption (MFTE) program.

The bill extends the 20-year rental program to 70 cities, and adds Snohomish, Clark and Kitsap to the list of counties eligible to adopt MFTE programs in unincorporated areas.

It requires jurisdictions to follow anti-displacement requirements in their MFTE program and strengthens the tools for jurisdictions to enforce compliance from participants.

Commerce will update MFTE guidance by spring 2026. Find existing guidance on Commerce’s MFTE webpage [ [link removed] ].

*Impact for **p**lanners:* Provides increased options in more counties and cities to offer MFTE.

 

HB 1353: ADU self-certification programs

HB 1353 [ [link removed] ] (Chapter 22, Laws of 2025) authorizes cities to operate programs that allow architects to certify that ADU plans meet building codes. If the permit application is deemed complete and is self-certified, then the city may consider the application in compliance with building, electric, plumbing, mechanical, and fire code requirements.

Participating cities must set rules, use a standard form, audit submissions, and report to Commerce. Architects who fail audits are barred from self-certification.

*Requirements:*


* Only registered architects may self-certify code compliance.
* Participating cities must adopt rules, use a standardized certification form, audit a sample of plans, and report audit results to Commerce.
* Commerce maintains a list of architects suspended from self-certification.

*Impact for **p**lanners:* Optional program to shorten ADU review timelines; need to establish audit and reporting workflows.

 

SB 5611: Binding site plans

Under SB 5611 [ [link removed] ] (Chapter 208, Laws of 2025), multifamily housing can use binding site plans — an existing tool more common in commercial projects — to divide land. The bill also clarifies how long cities have to act on permit applications and bans hidden deadline extensions.

*Impact for **p**lanners:* New option for large multifamily subdivisions; tighter controls on permit-review deadlines.

*Effective:* July 27, 2025, except for Section 3, which takes effect Jan. 1, 2028.

 

SB 5559: Unit lot subdivisions

SB 5559 [ [link removed] ] (Chapter 271, Laws of 2025) expanded on the 2024 law that authorized unit lot subdivisions, which may divide a standard-size lot into portions for sale, such as selling an ADU and surrounding property. This bill provides the framework for how a unit lot subdivision is reviewed and processed, including timelines.  

*R**equirements**:*


* Fully planning cities and towns must adopt unit lot subdivision standards by July 27, 2027.
* Adopted procedures must include a set of notes on the legal document used to record the lot split to educate a property owner.
* Cities may not require pre-decision hearings.
* Must allow the unit lot subdivision process to run concurrently with other permit applications.

*Impact for **p**lanners:* Need to adopt unit-lot standards; integrate process into existing subdivision workflows.

*Implementation:* 2027 jurisdictions due with next periodic update. All other jurisdictions due by July 27, 2027.

 

HB 1096: Residential lot splitting

HB 1096 [ [link removed] ] (Chapter 301, Laws of 2025) increases housing options through a one-time administrative lot split which may be processed concurrent with the review of a residential building permit. Each new lot must meet minimum lot size. Cities, towns and counties planning under the GMA and required to complete their periodic update in 2027 must implement HB 1096 with their periodic update. All other GMA jurisdictions are required to implement this bill by July 27, 2027.  

*Standards:*


* Creates one new residential lot via administrative approval.
* May condition approval on frontage improvements or right-of-way dedications.
* New lots must meet local size and density requirements; follow all development regulations for subsequent building permits.

*Impact for **p**lanners:* Update subdivision procedures.

*Implementation:* 2027 jurisdictions due with next periodic update. All other jurisdictions due by July 27, 2027.

 

SB 5471: Middle housing outside cities

SB 5471 [ [link removed] ] (Chapter 386, Laws of 2025) authorizes counties to allow up to four units of middle housing per lot in unincorporated urban growth areas (UGAs), certain limited areas of more intensive rural development (LAMIRDs) where existing sewer service is available, and fully contained communities (FCCs). 

*Impact for planners:* Option to allow middle housing in new areas.

*Implementation:* Because this is optional, there is no due date.

 

HB 1183: Code reform for energy-efficient and affordable housing

HB 1183 [ [link removed] ] (Chapter 139, Laws of 2025) provides building and construction considerations, including minimum standards for new construction or the retrofit of existing buildings to housing and for projects using passive house construction standards. Most sections of the bill must be implemented within six months after the next periodic update or implementation report. 

*Local regulations: *


* Must allow additional setbacks and roof heights (for insulation and solar panels) and interior measurement of gross floor area.  
* Must not require facade modulation and upper-level setbacks for affordable housing, passive housing, conversion of existing buildings to housing; modular construction, and mass timber construction. 
* Must not require off-street parking for affordable housing, passive housing, modular construction or mass timber construction, unless a study shows safety concerns or certain conditions along county roads.  
* Must meet updated requirements in RCW 36.70A.620 [ [link removed] ], unless the community is over 30,000 residents, in which case, RCW 36.70A.620 is repealed. 
* Must not require affordable units to be larger than as described in the bill, unless developed under RCW 36.70A.540 [ [link removed] ]. 

*Impact for **p**lanners:* Amend development regulations to address requirements.

*Implementation:* Due six months after the next periodic update or implementation progress report, whichever is sooner.

 

SB 5184: Parking reform in larger cities

SB 5184 [ [link removed] ] (Chapter 204, Laws of 2025) reduces or eliminates parking requirements for cities with a population of 30,000 or more. This act repeals RCW 36.70A.620 [ [link removed] ] for those jurisdictions but does not apply to areas within a one-mile radius of Seattle-Tacoma International Airport. The bill provides for cities to request certification from Commerce for substantially similar regulations, variance or exemption, as appropriate. 

*Limits:*


* ≤ 0.5 off-street stalls per multifamily unit.
* ≤ 1 stall per single-family unit.
* ≤ 2 stalls per 1,000 square feet commercial space.
* No parking may be required for residences under 1,200 square feet, commercial spaces under 3,000 square feet, affordable housing, senior housing, childcare centers, ground level non-residential space in mixed-use building, or for buildings changing use. 

*Impact for **p**lanners*: Update zoning and parking standards.

*Implementation:*


* Does not apply to cities of less than 30,000 in population.
* Jurisdictions of 30,000-50,000 must adopt by July 2028.
* Jurisdictions of 50,000 or more must adopt by December 2026.

 

HB 1491: Promoting transit-oriented development

HB 1491 [ [link removed] ] (Chapter 267, Laws of 2025) requires cities to designate “station areas” around certain public transit stops for higher-density development. Commerce will develop a model code for station areas and approve exceptions to the program.

*Requirements:*


* For light rail, commuter rail or trolley station areas, cities must define a half-mile area around the station and allow development with a minimum floor area ratio of 3.5.
* For bus rapid transit routes, cities must define a quarter-mile station area around each station and allow development with a minimum floor area ratio of 2.5.
* Cities must offer a multifamily property tax exemption program in all station areas. Station areas are subject to mandatory affordable housing targets for low-income and workforce housing.
* Cities may not require off-street parking for mixed-use or residential development within a station area, except under certain circumstances.

*Impact for planners:* By the deadline, impacted jurisdictions must adopt or expand MFTE program for station areas, and rezone to meet requirements. The Commerce model code will be pre-emptive with the periodic update. 

*Implementation: *In the Puget Sound region, station areas must be adopted by December 2029.

 

HB 1757: Modifying regulation for existing buildings used for residential purposes

HB 1757 [ [link removed] ] (Chapter 203, Laws of 2025) changed the timeline requirements for updating local codes to support the use of existing buildings for residential purposes in commercial, mixed-use and residential zones.

The bill also adds a new restriction on permit types. A change of use permit cannot be required when the use of an existing structure is changed to provide housing.

*Impact for planners:* Permit application requirements and review procedures for the conversion of existing structures in commercial, mixed-use and residential zones will need to be amended. Additionally, planners will need to ensure other standards including parking, density, design standards, and energy code requirements are updated by the June 30, 2026, deadline. 

*Implementation:* The deadline to update local codes is June 30, 2026. If local governments do not update their local regulations by the deadline, RCWs 35A.21.440 [ [link removed] ] and 35.21.990 [ [link removed] ] will supersede local regulations. There are exceptions to these standards when buildings cannot meet life safety standards.  

 

HB 1135: Strengthening GMA compliance

HB 1135 [ [link removed] ] (Chapter 17, Laws of 2025) closes a potential loophole in enforcement of the Growth Management Act. When a city or county repeals a non-compliant rule, the Growth Management Hearings Board must confirm that the remaining plan or regulatory framework complies with the GMA, not just that the repealing action occurred.

*Impact for **p**lanners:* Any repeal or amendment found non-compliant triggers a two-step GMHB review — first, repeal status; second, residual compliance.

 

SB 5558: Changed deadlines for 2026, moved up development regulations for 2025 and 2027

SB 5558 [ [link removed] ] (Chapter 148, Laws of 2025) extended the periodic update due date of the comprehensive plan and development regulations from June 30 to Dec. 31, 2026, for Benton, Chelan, Cowlitz, Douglas, Franklin, Kittitas, Skamania, Spokane, Walla Walla and Yakima counties and their cities.

The bill also amended adoption dates for design review (RCW 36.70A.630 [ [link removed] ]), middle housing (RCW 36.70A.635 [ [link removed] ]) and accessory dwelling units (RCW 36.70A.680 [ [link removed] ]) to be completed at the same time as respective comprehensive plan updates for any updates due in 2025 through 2027.  

*Impact for planners:*


* Periodic updates due in 2025 must address middle housing, ADUs and design regulations in December 2025. 
* The deadline for periodic updates due in 2026 is extended to Dec. 31, 2026, and design review, middle housing and ADU regulations are due at that time.
* The deadline for 2027 jurisdictions remains June 30, 2027, and design review, middle housing and ADU regulations are due at that time.

 

SB 5509: Easier childcare siting

Under SB 5509 [ [link removed] ] (Chapter 276, Laws of 2025) cities and towns must allow childcare centers, and the conversion of existing buildings for use as childcare centers, as a permitted use in all zones except industrial, light industrial and open space. Cities may impose reasonable restrictions, including pickup and drop-off areas.

*Impact for **p**lanners:* Amend land-use tables and parking standards; integrate childcare definitions into zoning codes.

*Implementation: *2027 jurisdictions due to adopt with next periodic update. All other jurisdictions due by July 27, 2027.

 

HB 1039: Extending urban services to tribal lands

HB 1039 [ [link removed] ] (Chapter 258, Laws of 2025) allows cities to extend urban services such as water and sewer onto neighboring tribal lands with urban development, provided an intergovernmental agreement is reached.

*Impact for **p**lanners:* Negotiate service agreements.

*Implementation**:* Intergovernmental agreements must be established by Dec. 31, 2028.






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