Olympia proposes middle housing code changes to expand residential options 

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A series of proposed code changes that introduce strategies to address housing diversity and affordability were unveiled at the Olympia Planning Commission meeting on Monday, April 21.  

Joyce Phillips, principal planner with the Community Planning and Economic Development, said the code amendments are designed to align with state mandates about middle housing provisions, through House Bills 1110 and 2321. 

Unit lot density 

Phillips said the proposed amendments introduce a new unit lot density approach that allows more housing units per lot, with specific provisions based on the city's population tier.  

Tier 1 city has a population of 75,000 or more; while Tier 2 city has 25,000 to 75,000 residents. 

Phillips explained that for Tier 2 cities like Olympia, the requirement is to allow at least two units per lot, with potential expansion to four units if the lot is within one-quarter mile of major transit stops or when dedicating one unit to affordable housing.  

Olympia's current population stands at 57,450 within city limits. According to Thurston Regional Planning Council's 2024 projections, the city is expected to reach the 75,000-person threshold by 2030 when including the urban growth area.  

If considering only current city limits, Phillips said Olympia is not projected to exceed 75,000 residents until after 2045.  

But if Olympia meets Tier 1, Phillips shared a draft that would allow up to six units per lot within one-half mile of frequent transit routes or when two units are designated as affordable housing for 50 years. 

The proposed amendments also introduce a unit lot subdivision option, allowing property owners to divide a single lot into separately sellable units. While the parent lot must meet existing zoning standards, the individual unit lots would not need to meet the same minimum size requirements.  

"It would allow more homeownership opportunities. These would be individual, sellable, legal lots of record with their own tax or personal identification number. Our code is currently completely silent on this type of subdivision," Phillips pointed out.  

During her presentation, Phillips showed visual examples from the Washington State Department of Commerce to help illustrate what middle housing infill might look like in neighborhoods.  

Examples included blocks with and without alleys, varied lot sizes, and considerations like slope and trees. Each development must still meet standards around stormwater, tree preservation, setbacks and others.  

Accessory dwelling units (ADUs)

Phillips said Olympia has already addressed many of the state's new requirements for ADUs in its code. 

The city currently allows one ADU unit per lot with a single-family detached home, with a maximum size of 850 square feet.  

Under the proposed changes, Olympia would need to allow two ADUs per lot — this includes duplexes or triplexes, not just single-family homes. The city also plans to increase the maximum size to 1,000 square feet, or potentially eliminate having a maximum size.  

The state law proposed a requirement that the local jurisdictions are prohibited from charging impact fees on ADUs that exceed 50% of the fees imposed on the principal dwelling unit.  

Planning Commissioner Tammy Adams asked if small property owners are receiving sufficient support, such as tax breaks or incentives, for building ADUs or middle housing on their properties.

"Are we doing anything to help the small landlords? … We are leaving them out of the game," Adams said.

Phillips explained the current tax provisions are tied to single-family homes and it is unclear if the state will expand them under new middle housing rules. She noted most incentives, like the Multifamily Tax Exemption, target larger projects, but the middle housing updates offers more options for lot owners.  

Phillips encouraged the public to participate in the ongoing review process. The city's online survey about the proposed amendments has been extended through May 15.  

Comments

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  • Southsoundguy

    Abolish zoning and end the practice of treating homes as a store of value.

    Thursday, April 24 Report this

  • BobJacobs

    This is another really bad idea.

    The legislature and city are destroying existing primarily single-family neighborhoods which are the heart of the city -- the places where most people who vote and volunteer and care about their surroundings reside.

    And the city is proposing to make matters even worse than the legislature has already done by greatly exceeding state requirements.

    Just look at the graphic in the article. As applied to an existing neighborhood, most of the houses are gone -- replaced by multi-plexes.

    If the city an state want to engage in this kind of experimentation, they should do it in new developments, not existing neighborhoods.

    Bob Jacobs

    Thursday, April 24 Report this

  • susanh

    There are many new apartment developments going up now in Tumwater and Lacey - and it remains to be seen whether that housing will be “affordable”. Why does Olympia continue to give tax breaks to multi-unit developers and raise property taxes on other property owners? And what proof is there that any of the middle-housing units will be “affordable”?

    Friday, April 25 Report this

  • Southsoundguy

    They keep doing it because they have no choice. Municipalities have become infrastructure ponzis that must grow to pay for existing stuff. This, combined with federal subsidized lending and zoning practices, is what forces real estate prices up artificially. Here is an excellent explanation of the problem: https://youtu.be/ozYfet3BuN4

    Friday, April 25 Report this

  • JnNwmn

    The new rezoning state laws will not create what is promised. The City of Olympia and the state legislature keep promising that there will be more affordable housing created if we go along with their ideas. The truth is that there will be NO IMPACTS on affordable housing numbers. WHY? Because private industry is not interested in Affordable Housing and private industry will NEVER build Affordable Housing without direction. Look at the real estate ad above this comment. $699,900 for a 4 bedroom house !!! Private industry makes plenty of money with Market Rate construction. The City and State have to look at a more hands on approach to creating Affordable Housing. Ahe tax breaks must go to affordable housing not market rate housing. Architects can design housing surrounded by small parks not 6-plexes. There is actually plenty of land within the city boundaries to do this. The City can sponsor a Design Competition for creative designs. Offer an award of low interest money for winners. We can build for the future.

    Saturday, May 3 Report this