Next stop for Washington housing: More construction near transit

Noticed apartment buildings cropping up next to bus and light rail stations? More could be on the way.

Gov. Bob Ferguson on Tuesday signed House Bill 1491 into law, setting new state requirements for mixed-income housing development near transit and incentivizing this kind of construction.

So-called “transit-oriented development” allows for more dense housing, which Washington desperately needs, while also potentially reducing pollution as more people use buses and rail to commute instead of driving.

“This bill can help Washington meet its housing and environmental goals,” Ferguson said. “I actually live very close to a light rail station and so I have some familiarity with this and how important it is.”

The first cities eyed for development around transit are Vancouver and Spokane, the governor said.

“By 2029, we expect to see new zoning around 100 rail stations and more than 200 bus stations in the Puget Sound area,” Ferguson added.

Incentivizing transit-oriented development was one of the top priorities included in Lt. Gov. Denny Heck’s Housing Action Plan, developed during Ferguson’s transition to the governor’s office.

Not only that, the report said no other policy would result in more homes than this one.

Last year, a similar bill passed the House before stalling in the Senate.

This year’s measure requires Washington cities to allow housing development in what are called bus and rail “station areas.”

This includes places within a half-mile of a light rail station, commuter rail stop in a large city or a western Washington trolley system, like Seattle’s Streetcar. It also covers areas within a quarter-mile of bus rapid transit stops.

In these locations, the bill sets guidelines for how dense the housing must be. Developers would get to fit even more building square footage on their lots if they build affordable housing or so-called workforce housing intended for people earning low and moderate incomes.

The bill also requires 10% of units to be considered affordable and 20% set aside for workforce housing for the next 50 years. The legislation defines affordable as not costing more than 30% of the income for renters who make up 60% of the county’s median income or homeowners who make 80% of the median.

Developers who meet the requirements would get a 20-year multifamily property tax exemption. And they’d get half off local impact fees meant to help pay for transportation projects to accommodate the population growth.

Cities also can’t require off-street parking, except spots dedicated for people with disabilities or delivery drivers.

Under the legislation, the state Department of Commerce also needs to set up a new grant program to help cities build infrastructure to provide utilities and other services.

The bill passed the Legislature along mostly party lines. Though supportive of the general concept, some Republicans objected to the affordability component, which they thought would drive developers away from building housing near transit.

The legislation takes effect in late July. But implementation of the new requirements wouldn’t come until 2029 for cities that updated their comprehensive plans last year. Cities that next revise their plans later than 2024 must follow the new rules within six months of updating.

The piece of legislation is one of many Ferguson has signed in his first year to remove barriers to additional housing, including for condominiums. He also signed a bill last week to ease parking requirements that can pose a costly obstacle to development. It’s the top issue he heard on the campaign trail last year, he said.