Staff flags new state rules for conversions of existing commercial buildings to multifamily; commissioners urged to weigh options

Staff reported that the city must respond to recently identified state requirements—cited in the meeting transcript as an RCW—affecting conversions of existing commercial buildings to multifamily housing in zones where multifamily is already allowed. Staff emphasized that the provisions discussed in the presentation apply to existing buildings only, not new construction.

"This is for existing buildings only," staff said, explaining that the state framework increases allowable maximum densities in certain zones and limits local authorities' ability to require conditions such as additional parking, setbacks or transportation impact mitigation for these conversions. Staff said a building permit and required remodel work would still require building-permit review, but local authorities may be barred from imposing extra site-specific conditions under the state rule as read into the record.

Staff outlined the choices: the city can (1) adopt the required code amendments by the state deadline (staff cited June 30 in the meeting), (2) allow state preemption to take effect (in which case the state rule would overrule local code), or (3) pursue an interim local ordinance as a stopgap where allowed. Staff noted the transcript shows they had contacted the Department of Commerce for clarification and expected additional guidance or fact sheets.

Commissioners sought practical details: how many buildings would be affected (responses in the meeting ranged from two to nine, with commissioners calling the overall city risk "very low"), whether the state provides additional staff or funding to implement code changes (staff said not), and whether environmental or transportation impact studies could still be required (staff said the state rule limits the citys ability to require those in the conversion process). Commissioners asked staff to return with draft code language at the next or following meeting so the commission could review options before the June deadline.

The transcript recorded the cited RCW text imprecisely; staff said they will provide definitive statutory citations and any Commerce guidance in the packet for the commission's next meeting.