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HomeMy WebLinkAbout05/20/2026 - PacketContact us: (RCHARD Meeting Location: Phone (360) 874-5533 Meeting is being held via Zoom Email planning@portorchardwa.gov www.portorchardwa.gov Land Use Committee Regular Meeting Wednesday, May 20, 2026 4:45 PM Remote Access Zoom Webinar Public Link (not to be used by LU Committee): https://us02web.zoom.us/I/81034433449 Dial -in: 1 253 215 8782 Webinar ID: 810 3443 3449 1. Call to Order 2. Welcome and Introduction 3. Discussion Items (No Action to Be Taken.) A. Survey Results Code Efficiency B. Givens Park Master Plan Update C. 2026 Legislative Session 1) HB 2266 Encouraging permanent supportive housing 2) HB 2418 Concerning permit review processes 3) HB 1859 Affordable housing on religious -owned properties 4. Next Land Use Committee Meeting A. June and July Land Use Committee Schedule 5. Adjournment Page 1 of 52 CERTIFICATION OF ENROLLMENT ENGROSSED SUBSTITUTE HOUSE BILL 2266 Chapter 232, Laws of 2026 69th Legislature 2026 Regular Session PERMANENT SUPPORTIVE HOUSING, TRANSITIONAL HOUSING, INDOOR EMERGENCY HOUSING, AND INDOOR EMERGENCY SHELTERS -SITING AND PERMITTING EFFECTIVE DATE: June 11, 2026 Passed by the House March 9, 2026 Yeas 56 Nays 39 LAURIE JINKINS Speaker of the House of Representatives Passed by the Senate March 4, 2026 Yeas 29 Nays 20 DENNY HECK President of the Senate Approved March 27, 2026 11:22 AM BOB FERGUSON 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 2266 as passed by the House of Representatives and the Senate on the dates hereon set forth. BERNARD DEAN Chief Clerk FILED March 31, 2026 Secretary of State State of Washington Page 2 of 52 ENGROSSED SUBSTITUTE HOUSE BILL 2266 AS AMENDED BY THE SENATE Passed Legislature - 2026 Regular Session State of Washington 69th Legislature 2026 Regular Session By House Housing (originally sponsored by Representatives Peterson, Macri, Ryu, Parshley, Ramel, Scott, Mena, Reed, Obras, Fitzgibbon, Street, Thomas, Taylor, Doglio, Gregerson, Ormsby, Goodman, Reeves, Farivar, Fosse, Bergquist, Salahuddin, Hill, Pollet, and Wylie) READ FIRST TIME 02/04/26. 1 AN ACT Relating to encouraging permanent supportive housing, 2 transitional housing, indoor emergency housing, and indoor emergency 3 shelters; amending RCW 35.21.683, 35A.21.430, and 36.130.020; 4 reenacting and amending RCW 36.70A.030; adding a new section to 5 chapter 36.70A RCW; and creating new sections. 6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON: 7 NEW SECTION. Sec. 1. The legislature finds that Washington 8 state faces an acute shortage of housing affordable to households at 9 all income levels, resulting in housing insecurity and a growing 10 number of people experiencing homelessness. The legislature further 11 finds that local regulatory barriers, inconsistent siting standards, 12 and discretionary review processes have constrained the timely 13 development of permanent supportive housing, transitional housing, 14 indoor emergency housing, and indoor emergency shelters. It is the 15 intent of the legislature to increase housing supply and advance fair 16 housing by requiring these housing types to be permitted in urban 17 areas on the same terms as other types of lodging and residential 18 development, subject only to objective and nondiscriminatory 19 development standards necessary to protect public health and safety. 20 By streamlining permitting processes and ensuring consistent 21 treatment across jurisdictions, the legislature intends to avoid p. 1 ESHB 2266.SL Page 3 of 52 1 unnecessary cost increases associated with delays and to facilitate 2 the prompt delivery of safe, dignified, and stable housing and to 3 support statewide efforts to address homelessness and the housing 4 crisis. 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 NEW SECTION. Sec. 2. A new section is added to chapter 36.70A RCW to read as follows: (1)(a) A county or city planning under RCW 36.70A.040 must allow: (i) Transitional housing or permanent supportive housing in any zones within an urban growth area in which residential dwelling units or hotels are allowed; and (ii) Indoor emergency shelters and indoor emergency housing in any zones within an urban growth area in which hotels are allowed. Nothing in this subsection allows a county or city to limit indoor emergency shelters and indoor emergency housing in a manner where the capacity of indoor emergency shelters and indoor emergency housing is insufficient to meet the projected needs identified under RCW 36.70A.070(2) (a) (ii). A county or city must allow indoor emergency shelters and indoor emergency housing in additional types of zones when necessary to meet projected needs identified in RCW 36.70A.070(2) (a) (ii) . (b) A county or city may not require transitional housing, permanent supportive housing, indoor emergency housing, and indoor emergency shelters to be located in a zone within an urban growth area zoned for industrial use. (2) Except as provided in subsections (5) through (7) of this section, a county or city may not require through development regulations, ordinances, or legal agreements any standards, conditions, or requirements for transitional housing, permanent supportive housing, indoor emergency housing, and indoor emergency shelters that are more restrictive than those required for other types of lodging or residential development within the same zone, but may apply any objective development regulations, including form -based codes, that are required for lodging or residential development including, but not limited to, density limits, dimensional standards, height restrictions, floor area ratio, setback, lot coverage, stormwater, clearing, and tree canopy and retention requirements. (3) Except as provided in subsections (5) through (7) of this section, a county or city shall only apply the same development permit and environmental review processes to transitional housing, p. 2 ESHB 2266.SL Page 4 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 permanent supportive housing, indoor emergency shelters, and indoor emergency housing that apply to other types of lodging or residential development within the same zone, unless otherwise required by state law including, but not limited to, shoreline regulations under chapter 90.58 RCW, building codes under chapter 19.27 RCW, energy codes under chapter 19.27A RCW, or electrical codes under chapter 19.28 RCW. (4) If applying design review for transitional housing, permanent supportive housing, indoor emergency shelters, and indoor emergency housing, only administrative design review may be required. (5)(a) For an indoor emergency shelter or indoor emergency housing, a county or city may require the sponsor or managing agency to certify in writing that it has, between the date the permit application was approved and the date the certificate of occupancy was issued: (i) Provided the name, if any, of the facility and the name and headquarters address of the managing entity; (ii) Provided a description of any other programs operating in the building and copies of the applicable licenses and certifications held by the program; (iii) Notified residents within 500 feet of the indoor emergency shelter or indoor emergency housing; (iv) Conducted more than one community meeting; (v) Designated at least one point of contact authorized to make decisions and take corrective action in the case of an emergency, and provided at least one telephone number to be used in emergencies; and (vi) Provided documentation of the sponsor's or managing agency's operational policies or procedures for: (A) Promoting and addressing health and safety inside the building and in areas immediately adjacent to the building; (B) Admissions, including a description of the populations the project will serve and potential sources of referral; (C) Program exit or transfer; (D) Handling complaints and grievances from occupants; (E) Health, fire, safety, and occupancy; and (F) Staffing to provide services and resources to the population being served comparable to standard or customary practices for the particular type of housing being provided. The staffing policy or procedure may include, but is not limited to, the number of staff or volunteers present during daytime and nighttime operations, staff or p. 3 ESHB 2266.SL Page 5 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 volunteer training, and other processes to provide services and resources to the populations being served. (b) The written certification by the sponsor or managing entity constitutes full compliance with (a) of this subsection. A county or city may not require the sponsor or managing agency to provide additional certifications outside of what is allowed under (a) of this subsection (5) or to repeat or revise any of the items in (a)(i) through (vi) of this subsection (5). Nothing in this subsection (b) prohibits the sponsor or managing agency from voluntarily updating any of the information submitted under (a) (i) through (vi) of this subsection (5) (6) Nothing in this section requires a city or county to approve a permit application for permanent supportive housing, transitional housing, indoor emergency housing, or indoor emergency shelters that are proposed in a critical area in which no lodging or residential development is permitted, an area of natural hazards that generally prohibit lodging or residential development, or on agricultural, forest, or mineral lands of long-term commercial significance. (7)(a) Upon receipt of a permit application for an indoor emergency shelter or indoor emergency housing with a proposed location within 500 feet of walking distance from another indoor emergency shelter or other indoor emergency housing, or within 500 feet of walking distance from the physical grounds of a public school as defined in RCW 28A.150.010 or a private school approved by the board of education under chapter 28A.195 RCW that existed before an indoor emergency shelter or indoor emergency housing is in operation or has submitted a permit application, the city in which the indoor emergency shelter or indoor emergency housing is proposed, or the county if the indoor emergency shelter or indoor emergency housing is not proposed in a city, may enter into good faith negotiations with the sponsor of the indoor emergency shelter or indoor emergency housing to establish additional and reasonable requirements pertaining to health and safety protocols. (b) If the parties are unable to come to an agreement under (a) of this subsection (7) within 180 days of the permit being submitted, the county or city may deny the permit. If a permit is denied under this subsection, the county or city must assist the sponsor in identifying suitable properties to site the indoor emergency shelter or indoor emergency housing. p. 4 ESHB 2266.SL Page 6 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 (c) This subsection (7) does not apply to an indoor emergency shelter or indoor emergency housing designated for individuals under the age of 18, families, or victims of domestic violence. (d) Nothing in this subsection (7) allows a county or city to limit indoor emergency shelters or indoor emergency housing in a manner where the capacity of indoor emergency shelters and indoor emergency housing is insufficient to meet the projected needs identified under RCW 36.70A.070(2)(a)(ii). Sec. 3. RCW 35.21.683 and 2021 c 254 s 4 are each amended to read as follows: (1) (a) A city ((shall not prohibt transitional)) must allow: JjjZ Transitional housing or permanent supportive housing in any zones in which residential dwelling units or hotels are allowed((.. Effcctiyc Scptcmbcr 30, 2621, a city shallt prohibit indoor)); and (ii) Indoor emergency shelters and indoor emergency housing in any zones in which hotels are allowedN, cxccpt in suchr-eities that hvc ad op eelan ordinancc authorizing indoor cmcrgcncy sti,cicess and indoor c _cr Jcney housing in amajority -of zoncs within a enc mrlc prey o transit. RReasonable—occupancy, —s c i n g d intcnsity of use rcguircmcn} s may bc imposcd by ordinance en pc housing, ' i indoor cmcrgcncy y housing,rd indoor c ___r Je__ey sh_l ers to pre�__r public heal tl., e f_}ly. Any sr}a-7_l., rcguircmcnts on occupancy, spacing, and intcnsity of usc may not pr rt the siting of a suffie-ie nu- cr of permancnt housing, transitional housing, indoor in or indoor cmcrgcncy shelters ncccssary to ee to cach city's r tcd nccd for such housing and shcltcr undcr ROW . ))_ Nothing in this subsection allows a county or city to limit indoor emergency shelters and indoor emergency housing in a manner where the capacity of indoor emergency shelters and indoor emergency housing is insufficient to meet the projected needs identified under RCW 36.70A.070(2) (a) (ii). A county or city must allow indoor emergency shelters and indoor emergency housing in additional types of zones when necessary to meet projected needs identified in RCW 36.70A.070(2) (a) (ii)_ (bb) A city may not require transitional housing, permanent supportive housing, indoor emergency housing, and indoor emergency shelters to be located in a zone within an area zoned for industrial use. p. 5 ESHB 2266.SL Page 7 of 52 1 (2) Except as provided in subsections (5) through (7) of this 2 section, a city may not require through development regulations, 3 ordinances, or legal agreements any development or operating 4 standards, conditions, or requirements for transitional housing, 5 permanent supportive housing, indoor emergency housing, and indoor 6 emergency shelters that are more restrictive than those required for 7 other types of lodging or residential development within the same 8 zone, but may apply any objective development regulations, including 9 form -based codes, that are required for lodging or residential 10 development including, but not limited to, density limits, 11 dimensional standards, height restrictions, floor area ratio, 12 setback, lot coverage, stormwater, clearing, and tree canopy and 13 retention requirements. 14 1Z Except as provided in subsections (5) through (7) of this 15 section, a county or city shall only apply the same development 16 permit and environmental review processes to transitional housing, 17 permanent supportive housing, indoor emergency shelters, and indoor 18 emergency housing that apply to other types of lodging or residential 19 development within the same zone, unless otherwise required by state 20 law including, but not limited to, shoreline regulations under 21 chapter 90.58 RCW, building codes under chapter 19.27 RCW, energy 22 codes under chapter 19.27A RCW, or electrical codes under chapter 23 19.28 RCW_ 24 If applying design review for transitional housing, permanent 25 supportive housing, indoor emergency shelters, and indoor emergency 26 housing, only administrative design review may be required. For the 27 purposes of this subsection, "administrative design review" means a 28 development permit process whereby an application is reviewed, 29 approved, or denied by the planning director or the planning 30 director's designee based solely on objective design and development 31 standards without a public predecision hearing, unless such review is 32 otherwise required by state or federal law, or the structure is a 33 designated landmark or within a historic district established under a 34 local preservation ordinance. A city may approve requests for 35 variances from locally established design review standards. 36 (5)(a) For an indoor emergency shelter or indoor emergency 37 housing, a city may require the sponsor or managing agency to certify 38 in writing that it has, between the date the permit application was 39 approved and the date the certificate of occupancy was issued: ESHB 2266.SL Page 8 of 52 1 IIIProvided the name, if any, of the facility and the name and 2 headquarters address of the managing entity; 3 (ii) Provided a description of any other programs operating in 4 the building and copies of the applicable licenses and certifications 5 held by the program; 6 (iii) Notified residents within 500 feet of the indoor emergency 7 shelter or indoor emergency housing; 8 (iv)Conducted more than one community meeting; 9 jj Designated at least one point of contact authorized to make 10 decisions and take corrective action in the case of an emergency, and 11 provided at least one telephone number to be used in emergencies; and 12 (vi) Provided documentation of the sponsor's or managing agency's 13 operational policies or procedures for: 14 (AA) Promoting and addressing health and safety inside the 15 building and in areas immediately adjacent to the building; 16 Admissions, including a description of the populations the 17 project will serve and potential sources of referral; 18 j�Z_Program exit or transfer; 19 Jj_Handling complaints and grievances from occupants; 20 J_Health, fire, safety, and occupancy; and 21 Staffing to provide services and resources to the population 22 being served comparable to standard or customary practices for the 23 particular type of housing being provided. The staffing policy or 24 procedure may include, but is not limited to, the number of staff or 25 volunteers present during daytime and nighttime operations, staff or 26 volunteer training, and other processes to provide services and 27 resources to the populations being served. 28 (bb) The written certification by the sponsor or managing entity 29 constitutes full compliance with (a) of this subsection (5). A city 30 may not require the sponsor or managing agency to provide additional 31 certifications outside of what is allowed under (a) of this 32 subsection (5) or to repeat or revise any of the items in (a)(i) 33 through (vi) of this subsection (5). Nothing in this subsection (b) 34 prohibits the sponsor or managing agency from voluntarily updating 35 any of the information submitted under (a)(i) through (vi) of this 36 subsection II- 37 Jj Nothing in this section requires a city to approve a permit 38 application for permanent supportive housing, transitional housing, 39 indoor emergency housing, or indoor emergency shelters that are 40 proposed in a critical area in which no lodging or residential p. 7 ESHB 2266.SL Page 9 of 52 1 development is permitted, an area of natural hazards that generally 2 prohibit lodging or residential development, or on agricultural, 3 forest, or mineral lands of long-term commercial significance. 4 (7)(a) Upon receipt of a permit application for an indoor 5 emergency shelter or indoor emergency housing with a proposed 6 location within 500 feet of walking distance from another indoor 7 emergency shelter or other indoor emergency housing, or within 500 8 feet of walking distance from the physical grounds of a public school 9 as defined in RCW 28A.150.010 or a private school approved by the 10 board of education under chapter 28A.195 RCW that existed before an 11 indoor emergency shelter or indoor emergency housing is in operation 12 or has submitted a permit application, a city may enter into good 13 faith negotiations with the sponsor of the indoor emergency shelter 14 or indoor emergency housing to establish additional and reasonable 15 requirements pertaining to health and safety protocols. 16 jIf the parties are unable to come to an agreement under (a) 17 of this subsection within 180 days of the permit being submitted, 18 the city may deny the permit. If a permit is denied under this 19 subsection, the city must assist the sponsor in identifying suitable 20 properties to site the indoor emergency shelter or indoor emergency 21 housing. 22 This subsection (7) does not apply to an indoor emergency 23 shelter or indoor emergency housing designated for individuals under 24 the age of 18, families, or victims of domestic violence. 25 1Z_Nothing in this subsection (7) allows a city to limit indoor 26 emergency shelters or indoor emergency housing in a manner where the 27 capacity of indoor emergency shelters and indoor emergency housing is 28 insufficient to meet the projected needs identified under RCW 29 36.70A.070 (2) (a) (ii)_ 30 For purposes of this section, "emergency housing," "emergency 31 shelter," "permanent supportive housing," and "transitional housing" 32 have the same meaning as in RCW 36.70A.030. 33 Sec. 4. RCW 35A.21.430 and 2021 c 254 s 3 are each amended to 34 read as follows: 35 (1) (a) A code city ((Ghall net prohibit transitional)) must 36 allow: 37 1Z Transitional housing or permanent supportive housing in any 38 zones in which residential dwelling units or hotels are allowed((. p. 8 ESHB 2266.SL Page 10 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Effective— cpelser 30, 202, a cock city shall not prohibit indoor)); and (ii) Indoor emergency shelters and indoor emergency housing in any zones in which hotels are allowed((; usercguircmcnts may bc imposcd by ordinancc on pc housing, transitional housing, indoor cmcrgcncy housing, and indoor c ___r Jc__cy shelters to pretcr public health d f_}ly. Any sr}--7ch rcguircmcnts on occupancy, spacing, and intcnsity of usc may not prevent the siting of a suffie-ie t numbcr of pc hosing, transitional housing, indoor housing, or indoor cmcrgcncy shcltcrs ncccssary to accoodatc—each cods citya 36.70A.070(2) (a)))) . Nothing in this subsection allows a county or city to limit indoor emergency shelters and indoor emergency housing in a manner where the capacity of indoor emergency shelters and indoor emergency housing is insufficient to meet the projected needs identified under RCW 36.70A.070(2) (a) (ii). A county or city must allow indoor emergency shelters and indoor emergency housing in additional types of zones when necessary to meet projected needs identified in RCW 36.70A.070(2) (a) (ii) . (bb) A code city may not require transitional housing, permanent supportive housing, indoor emergencv housing, and indoor emeraenc shelters to be located in a zone within an area zoned for industrial use. JJ_Except as provided in subsections (5) through (7) of this section, a code city may not require through development regulations, ordinances, or legal agreements any development or operating standards, conditions, or requirements for transitional housing, permanent supportive housing, indoor emergency housing, and indoor emergency shelters that are more restrictive than those required for other types of lodging or residential development within the same zone, but may apply any objective development regulations, including form -based codes, that are required for lodging or residential development including, but not limited to, density limits, dimensional standards, height restrictions, floor area ratio, setback, lot coverage, stormwater, clearing, and tree canopv and retention requirements. p. 9 ESHB 2266.SL Page 11 of 52 1 1Z Except as provided in subsections (5) through (7) of this 2 section, a code city shall only apply the same development permit and 3 environmental review processes to transitional housing, permanent 4 supportive housing, indoor emergency shelters, and indoor emergency 5 housing that apply to other types of lodging or residential 6 development within the same zone, unless otherwise required by state 7 law including, but not limited to, shoreline regulations under 8 chapter 90.58 RCW, building codes under chapter 19.27 RCW, energy 9 codes under chapter 19.27A RCW, or electrical codes under chapter 10 19.28 RCW_ 11 (4) If applying design review for transitional housing, permanent 12 supportive housing, indoor emergency shelters, and indoor emergency 13 housing, only administrative design review may be required. For the 14 purposes of this subsection, "administrative design review" means a 15 development permit process whereby an application is reviewed, 16 approved, or denied by the planning director or the planning 17 director's designee based solely on objective design and development 18 standards without a public predecision hearing, unless such review is 19 otherwise required by state or federal law, or the structure is a 20 designated landmark or within a historic district established under a 21 local preservation ordinance. A city may approve requests for 22 variances from locally established design review standards. 23 (5)(a) For an indoor emergency shelter or indoor emergency 24 housing, a code city may require the sponsor or managing agency to 25 certify in writing that it has, between the date the permit 26 application was approved and the date the certificate of occupancy 27 was issued: 28 IiiProvided the name, if any, of the facility and the name and 29 headquarters address of the managing entity; 30(ii) Provided a description of any other programs operating in 31 the building and copies of the applicable licenses and certifications 32 held by the program; 33 (iii) Notified residents within 500 feet of the indoor emergency 34 shelter or indoor emergency housing; 35 iv Conducted more than one community meeting; 36 jj Designated at least one point of contact authorized to make 37 decisions and take corrective action in the case of an emergency, and 38 provided at least one telephone number to be used in emergencies; and 39 (vi) Provided documentation of the sponsor's or managing agency's 40 operational policies or procedures for: p. 10 ESHB 2266.SL Page 12 of 52 1 jjPromoting and addressing health and safety inside the 2 building and in areas immediately adjacent to the building; 3 Admissions, including a description of the populations the 4 project will serve and potential sources of referral; 5 JZ_Program exit or transfer; 6 JZ_Handling complaints and grievances from occupants; 7 J_Health, fire, safety, and occupancy; and 8 Staffing to provide services and resources to the population 9 being served comparable to standard or customary practices for the 10 particular type of housing being provided. The staffing policy or 11 procedure may include, but is not limited to, the number of staff or 12 volunteers present during daytime and nighttime operations, staff or 13 volunteer training, and other processes to provide services and 14 resources to the populations being served. 15 (bb) The written certification by the sponsor or managing entity 16 constitutes full compliance with (a) of this subsection (5). A code 17 city may not require the sponsor or managing agency to provide 18 additional certifications outside of what is allowed under (a) of 19 this subsection j_or to repeat or revise any of the items in (a)(i) 20 through (vi) of this subsection (5). Nothing in this subsection (b) 21 prohibits the sponsor or managing agency from voluntarily updating 22 any of the information submitted under (a) (i) through (vi) of this 23 subsection II- 24 Jj Nothing in this section requires a city to approve a permit 25 application for permanent supportive housing, transitional housing, 26 indoor emergency housing, or indoor emergency shelters that are 27 proposed in a critical area in which no lodging or residential 28 development is permitted, an area of natural hazards that generally 29 prohibit lodging or residential development, or on agricultural, 30 forest, or mineral lands of long-term commercial significance. 31 (7)(a) Upon receipt of a permit application for an indoor 32 emergency shelter or indoor emergency housing with a proposed 33 location within 500 feet of walking distance from another indoor 34 emergency shelter or other indoor emergency housing, or within 500 35 feet of walking distance from the physical grounds of a public school 36 as defined in RCW 28A.150.010 or a private school approved by the 37 board of education under chapter 28A.195 RCW that existed before an 38 indoor emergency shelter or indoor emergency housing is in operation 39 or has submitted a permit application, a code city may enter into 40 good faith negotiations with the sponsor of the indoor emergencv P. 11 ESHB 2266.SL Page 13 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 shelter or indoor emergency housing to establish additional and reasonable requirements pertaining to health and safety protocols. jj_If the parties are unable to come to an agreement under (a) of this subsection Sl within 180 days of the permit being submitted, the code city may deny the permit. If a permit is denied under this subsection, the city must assist the sponsor in identifying suitable properties to site the indoor emergency shelter or indoor emergency housing. J�jThis subsection (7) does not apply to an indoor emergency shelter or indoor emergency housing designated for individuals under the age of 18, families, or victims of domestic violence. 1Z Nothing in this subsection (7) allows a code city to limit indoor emergency shelters or indoor emergency housing in a manner where the capacity of indoor emergency shelters and indoor emergency housing is insufficient to meet the projected needs identified under RCW 36.70A.070(2) (a) (ii)_ JJ_For purposes of this section, "emergency housing," "emergency shelter," "permanent supportive housing," and "transitional housing" have the same meaning as in RCW 36.70A.030. Sec. 5. RCW 36.130.020 and 2008 c 118 s 3 are each amended to read as follows: (1) A city, county, or other local governmental entity or agency may not adopt, impose, or enforce requirements on an affordable housing development that are different than the requirements imposed on housing developments generally. (2) This section does not prohibit any city, county, or other local governmental entity or agency from extending preferential treatment to affordable housing developments intended for including, but not limited to, occupancy by homeless persons, farmworkers, persons with disabilities, senior citizens, or low-income households. Preferential treatment may include, but is not limited to: A reduction or waiver of fees or changes in applicable requirements including, without limitation, architectural requirements, site development requirements, property line requirements, building setback requirements, or vehicle parking requirements; or other treatment that reduces or is likely to reduce the development or operating costs of an affordable housing development. (3) A city, county, or other local governmental entity or agency may impose and enforce income qualification, coordinated entry, p. 12 ESHB 2266.SL Page 14 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 reporting, and monitoring requirements on affordable housing developments as conditions of loans, grants, financial support, tax benefits, subsidy funds, or sale or lease of public property, or as conditions to eligibility for any affordable housing incentive program under RCW 36.70A.540 or any other program involving bonus density, transfer of development rights, waiver of development regulations or fees, or other development incentives. (4) (a) A county or city may enter into a contract with a sponsor proposing transitional housing, permanent supportive housing, an indoor emergency shelter, or indoor emergency housing to establish additional and reasonable operational requirements pertaining to health and safety protocols. (bb) Legal consideration for a contract entered into under this subsection (4) on the part of the county or city must, at a minimum, include: A donation of real property or a long-term lease of land at least 50 years in length, to be used for the transitional housing, permanent supportive housing, indoor emergency shelter, or indoor emergency housing; or (ii) A significant contribution from the general fund for capital or operating expenses to be mutually determined by both parties. i A county or city that unilaterally withdraws from or modifies the consideration specified in (b) of this subsection (4) is in material breach of the contract and the operational requirements specified in the contract no longer apply to the transitional housing, permanent supportive housing, indoor emergency shelter, or indoor emergency housing. JA county or city may not construe a sponsor's refusal to accept contract terms pertaining to the consideration specified in jjjof this subsection (4) as a failure to meet any of the requirements of other fund sources available for the capital or operational support, or of those otherwise allowed in RCW 35.21.683 or 35A.21.430_or section 2 of this act. j Nothing in this subsection requires a county or city to enter into a contract under this subsection (4). IfI_For purposes of this subsection (4), "emergency housing," "emergency shelter," "permanent supportive housing," and "transitional housing" have the same meanings as in RCW 36.70A.030. p. 13 ESHB 2266.SL Page 15 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 Sec. 6. RCW 36.70A.030 and 2025 c 267 s 2 are each reenacted and amended to read as follows: Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter. (1) "Active transportation" means forms of pedestrian mobility including walking or running, the use of a mobility assistive device such as a wheelchair, bicycling and cycling irrespective of the number of wheels, and the use of small personal devices such as foot scooters or skateboards. Active transportation includes both traditional and electric assist bicycles and other devices. Planning for active transportation must consider and address accommodation pursuant to the Americans with disabilities act and the distinct needs of each form of active transportation. (2) "Active transportation facilities" means facilities provided for the safety and mobility of active transportation users including, but not limited to, trails, as defined in RCW 47.30.005, sidewalks, bike lanes, shared -use paths, and other facilities in the public right-of-way. (3) "Administrative design review" means 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, unless such review is otherwise required by state or federal law, or the structure is a designated landmark or historic district established under a local preservation ordinance. A city may utilize public meetings, hearings, or voluntary review boards to consider, recommend, or approve requests for variances from locally established design review standards. (4) "Adopt a comprehensive land use plan" means to enact a new comprehensive land use plan or to update an existing comprehensive land use plan. (5) "Affordable housing" means, unless the context clearly indicates otherwise, residential housing whose monthly costs, including utilities other than telephone, do not exceed 30 percent of the monthly income of a household whose income is: (a) For rental housing, 60 percent of the median household income adjusted for household size, for the county where the household is located, as reported by the United States department of housing and urban development; or p. 14 ESHB 2266.SL Page 16 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 (b) For owner -occupied housing, 80 percent of the median household income adjusted for household size, for the county where the household is located, as reported by the United States department of housing and urban development. (6) "Agricultural land" means land primarily devoted to the commercial production of horticultural, viticultural, floricultural, dairy, apiary, vegetable, or animal products or of berries, grain, hay, straw, turf, seed, Christmas trees not subject to the excise tax imposed by RCW 84.33.100 through 84.33.140, finfish in upland hatcheries, or livestock, and that has long-term commercial significance for agricultural production. (7) "Bus station area" means all lots that are: (a) Fully within an urban growth area; and (b) Fully or partially within one -quarter mile walking distance of a stop on a fixed route bus system that is designated as a bus rapid transit stop in the transit development plan as required in RCW 35.58.2795, for which an environmental determination has been issued as required under chapter 43.21C RCW, and that features fixed transit assets that indicate permanent, high capacity service including, but not limited to, elevated platforms or enhanced stations, off -board fare collection, dedicated lanes, busways, or transit signal priority. (8) "City" means any city or town, including a code city. (9) "Comprehensive land use plan," "comprehensive plan," or "plan" means a generalized coordinated land use policy statement of the governing body of a county or city that is adopted pursuant to this chapter. (10) "Cottage housing" means residential units on a lot with a common open space that either: (a) Is owned in common; or (b) has units owned as condominium units with property owned in common and a minimum of 20 percent of the lot size as open space. (11) "Courtyard apartments" means attached dwelling units arranged on two or three sides of a yard or court. (12) "Critical areas" include the following areas and ecosystems: (a) Wetlands; (b) areas with a critical recharging effect on aquifers used for potable water; (c) fish and wildlife habitat conservation areas; (d) frequently flooded areas; and (e) geologically hazardous areas. "Fish and wildlife habitat conservation areas" does not include such artificial features or constructs as irrigation delivery systems, irrigation infrastructure, irrigation canals, or drainage p. 15 ESHB 2266.SL Page 17 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 ditches that lie within the boundaries of and are maintained by a port district or an irrigation district or company. (13) "Department" means the department of commerce. (14) "Development regulations" or "regulation" means the controls placed on development or land use activities by a county or city, including, but not limited to, zoning ordinances, critical areas ordinances, shoreline master programs, official controls, planned unit development ordinances, subdivision ordinances, and binding site plan ordinances together with any amendments thereto. A development regulation does not include a decision to approve a project permit application, as defined in ROW 36.70B.020, even though the decision may be expressed in a resolution or ordinance of the legislative body of the county or city. (15) "Emergency housing" means temporary indoor accommodations for individuals or families who are homeless or at imminent risk of becoming homeless that is intended to address the basic health, food, clothing, and personal hygiene needs of individuals or families. Emergency housing may or may not require occupants to enter into a lease or an occupancy agreement. (16) "Emergency shelter" means a facility that provides a temporary shelter for individuals or families who are currently homeless. Emergency shelter may not require occupants to enter into a lease or an occupancy agreement. Emergency shelter facilities may include day and warming centers that do not provide overnight accommodations. (17) "Environmental justice" means the fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to development, implementation, and enforcement of environmental laws, regulations, and policies. Environmental justice includes addressing disproportionate environmental and health impacts in all laws, rules, and policies with environmental impacts by prioritizing vulnerable populations and overburdened communities and the equitable distribution of resources and benefits. (18) "Extremely low-income household" means a single person, family, or unrelated persons living together whose adjusted income is at or below 30 percent of the median household income adjusted for household size, for the county where the household is located, as reported by the United States department of housing and urban development. p. 16 ESHB 2266.SL Page 18 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 (19) "Floor area ratio" means a measure of development intensity equal to building square footage divided by the developable property square footage. Developable property excludes public facilities and portions of lots with critical areas and critical area buffers as designated in RCW 36.70A.060, except for critical aquifer recharge areas where a single-family detached house is an allowed use provided that any requirements to maintain aquifer recharge are met. (20) "Forestland" means land primarily devoted to growing trees for long-term commercial timber production on land that can be economically and practically managed for such production, including Christmas trees subject to the excise tax imposed under RCW 84.33.100 through 84.33.140, and that has long-term commercial significance. In determining whether forestland is primarily devoted to growing trees for long-term commercial timber production on land that can be economically and practically managed for such production, the following factors shall be considered: (a) The proximity of the land to urban, suburban, and rural settlements; (b) surrounding parcel size and the compatibility and intensity of adjacent and nearby land uses; (c) long-term local economic conditions that affect the ability to manage for timber production; and (d) the availability of public facilities and services conducive to conversion of forestland to other uses. (21) "Freight rail dependent uses" means buildings and other infrastructure that are used in the fabrication, processing, storage, and transport of goods where the use is dependent on and makes use of an adjacent short line railroad. Such facilities are both urban and rural development for purposes of this chapter. "Freight rail dependent uses" does not include buildings and other infrastructure that are used in the fabrication, processing, storage, and transport of coal, liquefied natural gas, or "crude oil" as defined in RCW 90.56.010. (22) "Geologically hazardous areas" means areas that because of their susceptibility to erosion, sliding, earthquake, or other geological events, are not suited to the siting of commercial, residential, or industrial development consistent with public health or safety concerns. (23) "Green infrastructure" means a wide array of natural assets and built structures within an urban growth area boundary, including parks and other areas with protected tree canopy, and management practices at multiple scales that manage wet weather and that p. 17 ESHB 2266.SL Page 19 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 maintain and restore natural hydrology by storing, infiltrating, evapotranspiring, and harvesting and using stormwater. (24) "Green space" means an area of land, vegetated by natural features such as grass, trees, or shrubs, within an urban context and less than one acre in size that creates public value through one or more of the following attributes: (a) Is accessible to the public; (b) Promotes physical and mental health of residents; (c) Provides relief from the urban heat island effects; (d) Promotes recreational and aesthetic values; (e) Protects streams or water supply; or (f) Preserves visual quality along highway, road, or street corridors. (25) "Long-term commercial significance" includes the growing capacity, productivity, and soil composition of the land for long- term commercial production, in consideration with the land's proximity to population areas, and the possibility of more intense uses of the land. (26) "Low-income household" means a single person, family, or unrelated persons living together whose adjusted income is at or below 80 percent of the median household income adjusted for household size, for the county where the household is located, as reported by the United States department of housing and urban development. (27) "Major transit stop" means: (a) A stop on a high capacity transportation system funded or expanded under the provisions of chapter 81.104 ROW, except for any stop that solely serves express bus service or serves express bus service and other bus services not otherwise meeting the definition of major transit stop; (b) Commuter rail stops; (c) Stops on rail or fixed guideway systems; or (d) Stops on bus rapid transit routes, including those stops that are under construction. (28) "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. ESHB 2266.SL Page 20 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 (29) "Minerals" include gravel, sand, and valuable metallic substances. (30) "Moderate -income household" means a single person, family, or unrelated persons living together whose adjusted income is at or below 120 percent of the median household income adjusted for household size, for the county where the household is located, as reported by the United States department of housing and urban development. (31) "Overburdened community" means a geographic area where vulnerable populations face combined, multiple environmental harms and health impacts, and includes, but is not limited to, highly impacted communities as defined in RCW 19.405.020. (32) "Per capita vehicle miles traveled" means the number of miles traveled using cars and light trucks in a calendar year divided by the number of residents in Washington. The calculation of this value excludes vehicle miles driven conveying freight. (33) "Permanent supportive housing" is subsidized, leased housing with no limit on length of stay that prioritizes people who need comprehensive support services to retain tenancy and utilizes admissions practices designed to use lower barriers to entry than would be typical for other subsidized or unsubsidized rental housing, especially related to rental history, criminal history, and personal behaviors. Permanent supportive housing is paired with on -site or off -site voluntary services designed to support a person living with a complex and disabling behavioral health or physical health condition who was experiencing homelessness or was at imminent risk of homelessness prior to moving into housing to retain their housing and be a successful tenant in a housing arrangement, improve the resident's health status, and connect the resident of the housing with community -based health care, treatment, or employment services. Permanent supportive housing is subject to all of the rights and responsibilities defined in chapter 59.18 RCW. (34) "Public facilities" include streets, roads, highways, sidewalks, street and road lighting systems, traffic signals, domestic water systems, storm and sanitary sewer systems, parks and recreational facilities, and schools. (35) "Public services" include fire protection and suppression, law enforcement, public health, education, recreation, environmental protection, and other governmental services. p. 19 ESHB 2266.SL Page 21 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 (36) "Rail station area" means all lots fully within an urban growth area that are: (a) Fully or partially within one-half mile walking distance of an entrance to a train station with a stop on a light rail system, a commuter rail stop in a city with a population greater than 15,000, or a stop on a rail trolley operated west of the crest of the Cascade mountains; or (b) Fully or partially within one -quarter mile walking distance of an entrance to a train station with a commuter rail stop in a city with a population no greater than 15,000. (37) "Recreational land" means land so designated under RCW 36.70A.1701 and that, immediately prior to this designation, was designated as agricultural land of long-term commercial significance under RCW 36.70A.170. Recreational land must have playing fields and supporting facilities existing before July 1, 2004, for sports played on grass playing fields. (38) "Rural character" refers to the patterns of land use and development established by a county in the rural element of its comprehensive plan: (a) In which open space, the natural landscape, and vegetation predominate over the built environment; (b) That foster traditional rural lifestyles, rural -based economies, and opportunities to both live and work in rural areas; (c) That provide visual landscapes that are traditionally found in rural areas and communities; (d) That are compatible with the use of the land by wildlife and for fish and wildlife habitat; (e) That reduce the inappropriate conversion of undeveloped land into sprawling, low -density development; (f) That generally do not require the extension of urban governmental services; and (g) That are consistent with the protection of natural surface water flows and groundwater and surface water recharge and discharge areas. (39) "Rural development" refers to development outside the urban growth area and outside agricultural, forest, and mineral resource lands designated pursuant to RCW 36.70A.170. Rural development can consist of a variety of uses and residential densities, including clustered residential development, at levels that are consistent with the preservation of rural character and the requirements of the rural p. 20 ESHB 2266.SL Page 22 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 element. Rural development does not refer to agriculture or forestry activities that may be conducted in rural areas. (40) "Rural governmental services" or "rural services" include those public services and public facilities historically and typically delivered at an intensity usually found in rural areas, and may include domestic water systems and fire and police protection services associated with rural development and normally not associated with urban areas. Rural services do not include storm or sanitary sewers, except as otherwise authorized by RCW 36.70A.110(4). (41) "Short line railroad" means those railroad lines designated class II or class III by the United States surface transportation board. (42) "Single-family zones" means those zones where single-family detached housing is the predominant land use. (43) "Stacked flat" means dwelling units in a residential building of no more than three stories on a residential zoned lot in which each floor may be separately rented or owned. (44) "Station area" means a bus station area or a rail station area. (45) "Townhouses" means buildings that contain three or more attached single-family dwelling units that extend from foundation to roof and that have a yard or public way on not less than two sides. (46) "Transitional housing" has the same meaning as in RCW 84.36.043_ (47) "Transportation system" means all infrastructure and services for all forms of transportation within a geographical area, irrespective of the responsible jurisdiction or transportation provider. (((47))) (48) "Urban governmental services" or "urban services" include those public services and public facilities at an intensity historically and typically provided in cities, specifically including storm and sanitary sewer systems, domestic water systems, street cleaning services, fire and police protection services, public transit services, and other public utilities associated with urban areas and normally not associated with rural areas. (((48))) (49) "Urban growth" refers to growth that makes intensive use of land for the location of buildings, structures, and impermeable surfaces to such a degree as to be incompatible with the primary use of land for the production of food, other agricultural products, or fiber, or the extraction of mineral resources, rural p. 21 ESHB 2266.SL Page 23 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 uses, rural development, and natural resource lands designated pursuant to RCW 36.70A.170. A pattern of more intensive rural development, as provided in RCW 36.70A.070(5)(d), is not urban growth. When allowed to spread over wide areas, urban growth typically requires urban governmental services. "Characterized by urban growth" refers to land having urban growth located on it, or to land located in relationship to an area with urban growth on it as to be appropriate for urban growth. (((49))) (50) "Urban growth areas" means those areas designated by a county pursuant to RCW 36.70A.110. (((5&))) (51) "Very low-income household" means a single person, family, or unrelated persons living together whose adjusted income is at or below 50 percent of the median household income adjusted for household size, for the county where the household is located, as reported by the United States department of housing and urban development. (((51))) (52) (a) "Vulnerable populations" means population groups that are more likely to be at higher risk for poor health outcomes in response to environmental harms, due to: (i) Adverse socioeconomic factors, such as unemployment, high housing and transportation costs relative to income, limited access to nutritious food and adequate health care, linguistic isolation, and other factors that negatively affect health outcomes and increase vulnerability to the effects of environmental harms; and (ii) sensitivity factors, such as low birth weight and higher rates of hospitalization. (b) "Vulnerable populations" includes, but is not limited to: (i) Racial or ethnic minorities; (ii) Low-income populations; and (iii) Populations disproportionately impacted by environmental harms. (((52))) (53) "Wetland" or "wetlands" means areas that are inundated or saturated by surface water or groundwater at a frequency and duration sufficient to support, and that under normal circumstances do support, a prevalence of vegetation typically adapted for life in saturated soil conditions. Wetlands generally include swamps, marshes, bogs, and similar areas. Wetlands do not include those artificial wetlands intentionally created from nonwetland sites, including, but not limited to, irrigation and drainage ditches, grass -lined swales, canals, detention facilities, wastewater treatment facilities, farm ponds, and landscape amenities, p. 22 ESHB 2266.SL Page 24 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 or those wetlands created after July unintentionally created as a result of the street, or highway. Wetlands may include t1 intentionally created from nonwetland areE conversion of wetlands. (((53))) (54) "Wildland urban interface" area where structures and other human intermingles with wildland vegetative fuels. 1, 1990, that were construction of a road, ose artificial wetlands s created to mitigate means the geographical development meets or NEW SECTION. Sec. 7. (1) A county or city subject to this act shall adopt or amend by ordinance, and incorporate into its development regulations, zoning regulations, and other official controls, the requirements of this act within two years of the effective date of this section or its next comprehensive plan update, whichever occurs first. The requirements of this act supersede, preempt, and invalidate any conflicting local regulations and apply regardless of whether a county or city has incorporated the requirements of this act into the county's or city's development regulations, zoning regulations, and other official controls. (2) This act does not apply to transitional housing, permanent supportive housing, indoor emergency shelters, and indoor emergency housing in operation on the effective date of this section. A county or city may not deem transitional housing, permanent supportive housing, indoor emergency shelters, and indoor emergency housing in operation on the effective date of this section unlawful or noncompliant due to the provisions of the act or due to ordinances, regulations, or controls adopted or amended under subsection (1) of this section. Passed by the House March 9, 2026. Passed by the Senate March 4, 2026. Approved by the Governor March 27, 2026. Filed in Office of Secretary of State March 31, 2026. --- END --- p. 23 ESHB 2266.SL Page 25 of 52 CERTIFICATION OF ENROLLMENT ENGROSSED SECOND SUBSTITUTE HOUSE BILL 2418 Chapter 235, Laws of 2026 69th Legislature 2026 Regular Session PROJECT PERMITS -REVIEW PROCESS EFFECTIVE DATE: June 11, 2026 Passed by the House March 11, 2026 Yeas 96 Nays 0 LAURIE JINKINS Speaker of the House of Representatives Passed by the Senate March 4, 2026 Yeas 49 Nays 0 DENNY HECK President of the Senate Approved March 27, 2026 11:28 AM BOB FERGUSON 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 2418 as passed by the House of Representatives and the Senate on the dates hereon set forth. BERNARD DEAN Chief Clerk FILED March 31, 2026 Secretary of State State of Washington Page 26 of 52 ENGROSSED SECOND SUBSTITUTE HOUSE BILL 2418 AS AMENDED BY THE SENATE Passed Legislature - 2026 Regular Session State of Washington 69th Legislature 2026 Regular Session By House Appropriations (originally sponsored by Representatives Duerr, Zahn, Parshley, Peterson, and Reed) READ FIRST TIME 02/09/26. 1 AN ACT Relating to permit review processes; amending RCW 2 36.70B.020, 36.70B.070, 36.70B.080, and 36.70B.060; reenacting and 3 amending RCW 36.70B.160; adding a new section to chapter 54.04 RCW; 4 adding a new section to chapter 43.21A RCW; adding a new section to 5 chapter 57.08 RCW; adding a new section to chapter 86.09 RCW; and 6 adding a new section to chapter 43.21C RCW. 7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON: 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Sec. 1. RCW 36.70B.020 and 2025 c 102 s 1 are each amended to read as follows: Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter. (1) "Closed record appeal" means an administrative appeal on the record to a local government body or officer, including the legislative body, following an open record hearing on a project permit application when the appeal is on the record with no or limited new evidence or information allowed to be submitted and only appeal argument allowed. (2) "Development regulations" means the controls placed on development or land use activities by a county or city including, but not limited to, zoning ordinances, critical areas ordinances, shoreline master programs, official controls, planned unit p. 1 E2SHB 2418.SL Page 27 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 development ordinances, subdivision ordinances, and binding site plan ordinances together with any amendments thereto. A development regulation does not include a decision to approve a project permit application, even though the decision may be expressed in a resolution or ordinance of the legislative body of the county or city. (Z "Local government" means a county, city, or town. (({3-)-)) I4JZ "Open record hearing" means a hearing, conducted by a single hearing body or officer authorized by the local government to conduct such hearings, that creates the local government's record through testimony and submission of evidence and information, under procedures prescribed by the local government by ordinance or resolution. An open record hearing may be held prior to a local government's decision on a project permit to be known as an "open record predecision hearing." An open record hearing may be held on an appeal, to be known as an "open record appeal hearing," if no open record predecision hearing has been held on the project permit. ((+4+)) Li(a) "Project permit" or "project permit application" means any land use or environmental permit or license required from a local government for a project action, including but not limited to subdivisions, binding site plans, planned unit developments, conditional uses, shoreline substantial development permits, site plan review, permits or approvals required by critical area ordinances, site -specific rezones which do not require a comprehensive plan amendment, but excluding the adoption or amendment of a comprehensive plan, subarea plan, or development regulations except as otherwise specifically included in this subsection. (b) "Project permit" or "project permit application" does not include ((bud)) permits issued based on compliance with state and local building codes, or a special purpose district's or public utility district's determination of service availability, system capacity, infrastructure requirements, or review of proposed water, sewer, or stormwater civil plans. JjZ "Public meeting" means an informal meeting, hearing, workshop, or other public gathering of people to obtain comments from the public or other agencies on a proposed project permit prior to the local government's decision. A public meeting may include, but is not limited to, a design review or architectural control board meeting, a special review district or community council meeting, or a scoping meeting on a draft environmental impact statement. A public p. 2 E2SHB 2418.SL Page 28 of 52 1 meeting does not include an open record hearing. The proceedings at a 2 public meeting may be recorded and a report or recommendation may be 3 included in the local government's project permit application file. 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 Sec. 2. RCW 36.70B.070 and 2023 c 338 s 6 are each amended to read as follows: (1)(a) Within 28 days after receiving a project permit application, a local government planning pursuant to RCW 36.70A.040 shall provide a written determination to the applicant. (b) The written determination must state either: (i) That the application is procedurally complete; or (ii) That the application is procedurally incomplete and that the procedural submission requirements of the local government have not been met. The determination shall outline what is necessary to make the application procedurally complete. (c) The number of days shall be calculated by counting every calendar day. (d) To the extent known by the local government, the local government shall identify other agencies of local, state, or federal governments that may have jurisdiction over some aspect of the application. (2) A project permit application is procedurally complete for purposes of this section when it meets the procedural submission requirements of the local government, as outlined on the project permit application. A determination of procedural completeness is not a substantive review of the application and shall not be conditioned on the adequacy, accuracy, or sufficiency of the information submitted. Additional information or studies may be required or project modifications may be undertaken subsequent to the procedural review of the application by the local government. The determination of completeness shall not preclude the local government from requesting additional information or studies either at the time of the notice of completeness or subsequently if new information is required or substantial changes in the proposed action occur. However, if the procedural submission requirements, as outlined on the project permit application have been provided, the need for additional information or studies may not preclude a completeness determination. (3) The determination of completeness may include or be combined with the following: p. 3 E2SHB 2418.SL Page 29 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 (a) A preliminary determination of those development regulations that will be used for project mitigation; (b) A preliminary determination of consistency, as provided under RCW 36.70B.040; (c) Other information the local government chooses to include; or (d) The notice of application pursuant to the requirements in RCW 36.70B.110. (4) (a) An application shall be deemed procedurally complete on the 29th day after receiving a project permit application under this section if the local government does not provide a written determination to the applicant that the application is procedurally incomplete as provided in subsection (1) (b) (ii) of this section. When the local government does not provide a written determination, they may still seek additional information or studies as provided for in subsection (2) of this section. (b) Within 14 days after an applicant has submitted to a local government additional information identified by the local government as being necessary for a complete application, the local government shall notify the applicant whether the application is complete or what additional information is necessary. (c) The notice of application shall be provided within 14 days after the determination of procedural completeness pursuant to RCW 36.70B.110. Sec. 3. RCW 36.70B.080 and 2025 c 208 s 5 are each amended to read as follows: (1)(a) Development regulations adopted pursuant to RCW 36.70A.040 must establish and implement time periods for local government actions for each type of project permit application and provide timely and predictable procedures to determine whether a completed project permit application meets the requirements of those development regulations. Except for modifications by a jurisdiction provided for in (e) of this subsection, the time periods for local government actions for each type of complete project permit application or project type may not exceed those specified in this section. (b) For project permits submitted after January 1, 2025, the development regulations must, for each type of permit application, specify the contents of a completed project permit application p. 4 E2SHB 2418.SL Page 30 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 necessary for the complete compliance with the time periods and procedures. (c) A jurisdiction may exclude certain permit types and timelines for processing project permit applications as provided for in RCW 36.70B.140. (d) The time periods for local government action to issue a final decision for each type of complete project permit application or project type subject to this chapter should not exceed the following time periods unless modified by the local government pursuant to this section or RCW 36.70B.140: (i) For project permits which do not require public notice under RCW 36.70B.110, a local government must issue a final decision within 65 days of the determination of completeness under RCW 36.70B.070; (ii) For project permits which require public notice under RCW 36.70B.110, a local government must issue a final decision within 100 days of the determination of completeness under RCW 36.70B.070; and (iii) For project permits which require public notice under RCW 36.70B.110 and a public hearing, a local government must issue a final decision within 170 days of the determination of completeness under RCW 36.70B.070. (e) A jurisdiction may modify the provisions in (d) of this subsection to add permit types not identified, change the permit names or types in each category, address how consolidated review time periods may be different than permits submitted individually, and provide for how projects of a certain size or type may be differentiated, including by differentiating between permits that include a residential land use as a principal use of the land and permits that do not. Unless otherwise provided for the consolidated review of more than one permit, the time period for a final decision shall be the longest of the permit time periods identified in (d) of this subsection or as amended by a local government. (f) If a local government does not adopt an ordinance or resolution modifying the provisions in (d) of this subsection, the time periods in (d) of this subsection apply. (g) The number of days an application is in review with the county or city shall be calculated from the day completeness is determined under RCW 36.70B.070 to the date a final decision is issued on the project permit application. The number of days shall be calculated by counting every calendar day and excluding the following time periods: p. 5 E2SHB 2418.SL Page 31 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 (i) Any period between the day that the county or city has notified the applicant, in writing, that additional information is required to further process the application, an applicable fee must be paid, or a required notice must be posted, and the day when responsive information is resubmitted by the applicant, the fee is paid, or the notice is posted; (ii) Any period after an applicant informs the local government, in writing, that they would like to temporarily suspend review of the project permit application until the time that the applicant notifies the local government, in writing, that they would like to resume the application. A local government may set conditions for the temporary suspension of a permit application; (()) (iii) Any period that the local government has completed all possible work on the application but must wait for necessary action by a government entity subject to subsection or (3) of this section; iv Any period during which a draft or final environmental impact statement is being prepared following a determination of significance under chapter 43.21C RCW; jj Any period between issuance of a final decision and the expiration of the applicable administrative appeal period; and vi Any period after an administrative appeal is filed until the administrative appeal is resolved and any additional time period provided by the administrative appeal has expired. (h) The time periods for a local government to process a permit shall start over if an applicant proposes a change in use that adds or removes commercial or residential elements from the original application that would make the application fail to meet the determination of procedural completeness for the new use, as required by the local government under RCW 36.70B.070. (i) If, at any time, an applicant informs the local government, in writing, that the applicant would like to temporarily suspend the review of the project for more than 60 days, or if an applicant is not responsive for more than 60 consecutive days after the county or city has notified the applicant, in writing, that additional information is required to further process the application, an additional 30 days may be added to the time periods for local government action to issue a final decision for each type of project permit that is subject to this chapter. Any written notice from the local government to the applicant that additional information is I• • E2SHB 2418.SL Page 32 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 required to further process the application must include a notice that nonresponsiveness for 60 consecutive days may result in 30 days being added to the time for review. For the purposes of this subsection, "nonresponsiveness" means that an applicant is not making demonstrable progress on providing additional requested information to the local government, or that there is no ongoing communication from the applicant to the local government on the applicant's ability or willingness to provide the additional information. (j) Annual amendments to the comprehensive plan are not subject to the requirements of this section. (k) A county's or city's adoption of a resolution or ordinance to implement this subsection shall not be subject to appeal under chapter 36.70A RCW unless the resolution or ordinance modifies the time periods provided in (d) of this subsection by providing for a review period of more than 170 days for any project permit. (1) (i) When permit time periods provided for in (d) of this subsection, as may be amended by a local government, and as may be extended as provided for in (i) of this subsection, are not met, a portion of the permit fee must be refunded to the applicant as provided in this subsection. A local government may provide for the collection of only 80 percent of a permit fee initially, and for the collection of the remaining balance if the permitting time periods are met. The portion of the fee refunded for missing time periods shall be: (A) 10 percent if the final decision of the project permit application was made after the applicable deadline but the period from the passage of the deadline to the time of issuance of the final decision did not exceed 20 percent of the original time period; or (B) 20 percent if the period from the passage of the deadline to the time of the issuance of the final decision exceeded 20 percent of the original time period. (ii) Except as provided in RCW 36.70B.160, the provisions in ((+-(+)-+)) 1)(i) of this subsection are not applicable to ((dice and counties)) a local government which ((fie)) has implemented at least three of the options in RCW 36.70B.160(1) (a) through (j) at the time an application is deemed procedurally complete. (2)jZ Any government entity other than a local government, special purpose district, or public utility district, that imposes a fee on an applicant for review of a project permit application, or a portion thereof, related to a residential project must complete its p. 7 E2SHB 2418.SL Page 33 of 52 1 review of the project permit application within the time periods 2 established in subsection (1)(d) of this section, unless the 3 applicant agrees in writing to waive the application of the time 4 period for review. Such a waiver may occur at any time prior to the 5 denial of the project permit application or the exhaustion of the 6 time period for review. If an applicant has agreed to waive the 7 application of the time period, then the provisions of this 8 subsection (2) do not apply to the review of the project permit 9 application. 10 jjjThe time that a government entity has taken to review a 11 project permit application must be determined as provided for in 12 subsection (1) (a) of this section, and is exclusive of the time that 13 a local government or other entity has taken to conduct its review of 14 its portion of the project permit application. 15 �Z A government entity that does not complete its review within 16 the required time periods must refund or forgo 20 percent of the fee 17 that it collected or would have collected for its review. A 18 government entity that does not collect a fee for its review of a 19 portion of a project permit application is not required to provide 20 any refund under this section. 21 (3)(a) When a local government requires a special purpose 22 district's or public utility district's determination in order to 23 complete review of a residential project permit application including 24 approval of a preliminary plat or other land division, the review 25 must be conducted as provided for in this subsection (3). 26 (b)(i)_A special purpose district's or public utility district's 27 review period begins when a local government provides a complete 28 referral to the district. A referral is complete if it includes civil 29 plans and supporting materials based on the district's adopted 30 engineering and design standards in effect on the date of the 31 referral, and when the referral includes all materials required to 32 constitute a complete application under the district's adopted 33 procedures. 34 (ii) Within 15 calendar days of receipt of the referral, the 35 district must notify the local government and applicant in writing if 36 the referral is incomplete and identify the additional information 37 required. If a referral is deemed incomplete, a district has an 38 additional 15 calendar days from the receipt of the requested 39 information to notify the local government and applicant in writing 40 if the referral is still incomplete and identify the additional p. 8 E2SHB 2418.SL Page 34 of 52 1 information required. If the district does not provide notice within 2 15 calendar days of the initial referral or of the submission of 3 additional information, the referral is deemed complete for purposes 4 of this section. 5 (c) (U_For routine infrastructure extensions or connections that 6 do not require specialized engineering analysis or external 7 regulatory approval, the district shall issue its written technical 8 determination in the form of written comments within 45 business days 9 of its receipt of a complete referral. A written response may 10 include: 11 (AA) Confirmation of consistency with adopted engineering and 12 design standards; 13 J_Identification of revisions required to achieve compliance; 14 jZ Conditions of service or infrastructure improvements 15 authorized by law; or 16 Identification of capacity, regulatory, or system limitations 17 that preclude approval. 18 (ii)When a proposal involves complex infrastructure or requires 19 specialized engineering review, regulatory coordination, or third - 20 party technical consultation, the time review period for completing 21 the review or issuing a decision may be extended by up to 60 business 22 days over the time period provided for in (c)(i) of this subsection. 23 If a time period is extended in this way, the district must provide 24 written notice to the local government and applicant identifying the 25 basis for extended review and an estimated time frame for completion. 26 No review period may exceed a total of more than 120 calendar days, 27 exclusive of any excluded periods provided for in (d) of this 28 subsection. Complex infrastructure includes, but is not limited to: 29 (AA)_Sewage lift stations or pump stations; 30 Mechanical, electrical, hydraulic, or supervisory control and 31 data acquisition systems; 32 jZ Directional drilling, boring, or installation within state or 33 county rights -of -way; 34 Construction of new off -site capital facilities that are not 35 existing or previously approved for construction and that are 36 required to provide system capacity beyond a direct connection to 37 existing infrastructure; 38 J_System-wide hydraulic or capacity modeling; 39 J_Projects requiring specialty engineering consultation; and E2SHB 2418.SL Page 35 of 52 1 jZ Projects in critical aquifer protection areas, where 2 additional assessment is required. 3 (d)(i) The time periods that a district has been reviewing an 4 application under (c) of this subsection may not include any period 5 in which the district is awaiting: 6 j Approval or other authorization from a state or federal 7 agency; 8 Jj_Right-of-way permits from the state or a local government; 9 J_Franchise utility coordination or relocation approval; 10 Final land use conditions, site layout decisions, or building 11 design necessary to complete engineering review; or 12 J Any other approvals required by state or federal law that are 13 outside the authority of the district. 14 (ii)The review period also does not include any period in which 15 the district is awaiting revisions from the applicant in response to 16 written review comments from the district. The period excluded under 17 this subsection begins on the date the written comments are 18 transmitted to the applicant and ends on the date the district 19 receives revised materials that are responsive to those comments. 20 After an initial period is excluded under this subsection, subsequent 21 excluded periods are limited to those related to review comments 22 arising from revised materials and may not reopen issues previously 23 resolved unless required for public health, safety, or regulatory 24 compliance. 25 (iii) Nothing in this subsection (3) limits the authority of a 26 district to issue additional comments if revised materials introduce 27 new deficiencies or design changes. 28 e i If a district does not provide written comments within the 29 time periods established in (c) of this subsection, exclusive of any 30 periods excluded under (d) of this subsection, the district must 31 refund or forgo 20 percent of the fee that it collected or would have 32 collected for its review of the application. 33 (ii) Only that portion of the fee attributable to civil plan or 34 infrastructure review under this section is subject to a refund. 35 iii _A district's failure to complete review within the 36 applicable time period does not constitute approval of service. 37 fj_Nothing in this subsection Ill- 38 Jjj Expands or limits the substantive authority of a special 39 purpose district or public utility district; P. 10 E2SHB 2418.SL Page 36 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 (ii)_Authorizes the imposition of requirements not otherwise authorized by law; (iii) —Creates a cause of action for damages; or iv Requires provision of service that cannot be safely or legally delivered. (g) Districts subject to this section shall provide review performance information to a local government that referred the residential project permit application to the district if the local government is required to create a performance report under subsection (4 _of this section. The information must include: _The date the referral was received; (ii)_The date the referral was deemed complete; (iii) Whether the referral was for an application eligible for an extension of the initial time period as provided for in (c) (ii) of this subsection; (iv)_The date that written comments were issued; and jj_Whether a refund was issued under (e) of this subsection. IIL(a) Counties subject to the requirements of RCW 36.70A.215 and the cities within those counties that have populations of at least 20,000 must, for each type of permit application, identify the total number of project permit applications for which decisions are issued according to the provisions of this chapter. For each type of project permit application identified, these counties and cities must establish and implement a deadline for issuing a notice of final decision as required by subsection (1) of this section and minimum requirements for applications to be deemed complete under RCW 36.70B.070 as required by subsection (1) of this section. (b) Counties and cities subject to the requirements of this subsection also must prepare an annual performance report that includes information outlining time periods for certain permit types associated with housing. The report must provide: (i) Permit time periods for certain permit processes in the county or city in relation to those established under this section, including whether the county or city has established shorter time periods than those provided in this section; (ii) The total number of decisions issued during the year for the following permit types: Preliminary subdivisions, final subdivisions, binding site plans, permit processes associated with the approval of multifamily housing, and construction plan review for each of these permit types when submitted separately; p. 11 E2SHB 2418.SL Page 37 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 (iii) The total number of decisions for each permit type which included consolidated project permit review, such as concurrent review of a rezone or construction plans; (iv) The average number of days from a submittal to a decision being issued for the project permit types listed in ((subsection (2) (b) (ii) f bn] �zthis �etre r}—�, this - -..- tom - ) ) (b) (ii) of this subsection. This shall be calculated from the day completeness is determined under RCW 36.70B.070 to the date a decision is issued on the application. The number of days shall be calculated by counting every calendar day; (v) The total number of days each project permit application of a type listed in ( (: c Lien (2) (�ri) of this section [ (b) ( of this s bscction;) ) (b) (ii) of this subsection was in review with the county or city. This shall be calculated from the day completeness is determined under RCW 36.70B.070 to the date a final decision is issued on the application. The number of days shall be calculated by counting every calendar day. The days the application is in review with the county or city does not include the time periods in subsection (1)(g)(i) through (iii) of this section; (vi) The total number of days that were excluded from the time period calculation under subsection (1) (g) (i) through (iii) of this section for each project permit application of a type listed in ( (s bsoctien (2) ri) of this section [ (b) of this _,bscct-_n,)) (b)(ii)_of this subsection; and vii Any information received from a special purpose district or public utility district under subsection (3)(a) of this section. (c) Counties and cities subject to the requirements of this subsection must: (i) Post the annual performance report through the county's or city's website; and (ii) Submit the annual performance report to the department of commerce by March 1st each year. (d) No later than July 1st each year, the department of commerce shall publish a report which includes the annual performance report data for each county and city subject to the requirements of this subsection and a list of those counties and cities whose time periods are shorter than those provided for in this section. The annual report must also include key metrics and findings from the information collected. p. 12 E2SHB 2418.SL Page 38 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 (e) The initial annual report required under this subsection must be submitted to the department of commerce by March 1, 2025, and must include information from permitting in 2024. (({3-)-)) 1Z Nothing in this section prohibits a county or city from extending a deadline for issuing a decision for a specific project permit application for any reasonable and certain period of time specified and mutually agreed upon in writing by the applicant and the local government. If an applicant has agreed to extend the deadline for issuing a decision on a specific project permit application, then the provisions of subsection (1) of this section do not apply to the review of the project permit application. Such an extension may occur at any time prior to the denial of the project permit application or the exhaustion of the time period for review. No local government may require or request an extension of an applicable deadline for issuance of a decision for a specific project permit application as a condition or an option at initial submission of a project permit application. Sec. 4. RCW 36.70B.060 and 1995 c 347 s 407 are each amended to read as follows: Not later than ((March 31, 1996)) June 30, 2027, each local government planning under RCW 36.70A.040 shall establish by ordinance or resolution an integrated and consolidated project permit process that may be included in its development regulations. In addition to the elements required by RCW 36.70B.050, the process shall include the following elements: (1) A determination of completeness to the applicant as required by RCW 36.70B.070; (2)(a) The designation of a permit responsible official for project permit applications related to a residential project. This official has the authority to make all final administrative decisions on project permit applications related to residential projects consistent with the procedural requirements of this chapter. If a local government is also the lead agency responsible for the environmental analysis and procedural requirements under chapter 43.21C RCW for the residential project, then the permit responsible official must be designated as the responsible official under that chapter. jJjThe local government shall designate, for each project permit application, a single point of contact, which may be a designated p. 13 E2SHB 2418.SL Page 39 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 official, position, office, or functional unit of the local government and may be identified by a publicly available telephone number or electronic mail address for purposes of applicant communication. The designation may vary by application. The designated official, position, office, or functional unit must coordinate with other departments and with other agencies or government entities with permit review responsibilities as necessary to ensure that a final decision on project permit applications is issued within the applicable timeline under RCW 36.70B.080. The designation of a single point of contact does not confer independent final decision -making authority unless otherwise provided under local ordinance; Jj A notice of application to the public and agencies with jurisdiction as required by RCW 36.70B.110; (({3-)-)) LIZ Except as provided in RCW 36.70B.140, an optional consolidated project permit review process as provided in RCW 36.70B.120. The review process shall provide for no more than one consolidated open record hearing and one closed record appeal. If an open record predecision hearing is provided prior to the decision on a project permit, the process shall not allow a subsequent open record appeal hearing; (({4-)-)) ±J) Provision allowing for any public meeting or required open record hearing to be combined with any public meeting or open record hearing that may be held on the project by another local, state, regional, federal, or other agency, in accordance with provisions of RCW ((36.gGB .G rd)) 36.70B.110; ((-3-})) j A single report stating all the decisions made as of the date of the report on all project permits included in the consolidated permit process that do not require an open record predecision hearing and any recommendations on project permits that do not require an open record predecision hearing. The report shall state any mitigation required or proposed under the development regulations or the agency's authority under RCW 43.21C.060. The report may be the local permit. If a threshold determination other than a determination of significance has not been issued previously by the local government, the report shall include or append this determination; ((+6+)) I7J Except for the appeal of a determination of significance as provided in RCW 43.21C.075, if a local government elects to provide an appeal of its threshold determinations or p. 14 E2SHB 2418.SL Page 40 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 project permit decisions, the local government shall provide for no more than one consolidated open record hearing on such appeal. The local government need not provide for any further appeal and may provide an appeal for some but not all project permit decisions. If an appeal is provided after the open record hearing, it shall be a closed record appeal before a single decision -making body or officer; ((+7+)) LJZ A notice of decision as required by RCW 36.70B.130 and issued within the time period provided in RCW 36.70B.080 (&n- 36.70E.090i- -(-8-)-_Oomplction of pro j cct rcvicw by thc local govcrnmcnt, including cnvironmcntal rcvicw and public rcvicw and any appoals to the local govcrnmcnt, within any applicabic—time- cried, undcr ROW 3G Inn nnn ���)); and (9) Any other provisions not inconsistent with the requirements of this chapter or chapter 43.21C RCW. Sec. 5. RCW 36.70B.160 and 2023 c 338 s 8 and 2023 c 333 s 2 are each reenacted and amended to read as follows: (1) Each local government is encouraged to adopt further project review and code provisions to provide prompt, coordinated, and objective review and ensure accountability to applicants and the public by: (a) Expediting review for project permit applications for projects that are consistent with adopted development regulations or that include dwelling units that are affordable to low-income or moderate -income households; (b) Imposing reasonable fees, consistent with RCW 82.02.020, on applicants for permits or other governmental approvals to cover the cost to the city, town, county, or other municipal corporation of processing applications, inspecting and reviewing plans, or preparing detailed statements required by chapter 43.21C RCW. The fees imposed may not include a fee for the cost of processing administrative appeals. Nothing in this subsection limits the ability of a county or city to impose a fee for the processing of administrative appeals as otherwise authorized by law; (c) Entering into an interlocal agreement with another jurisdiction to share permitting staff and resources; (d) Maintaining and budgeting for on -call permitting assistance for when permit volumes or staffing levels change rapidly; p. 15 E2SHB 2418.SL Page 41 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 (e) Having new positions budgeted that are contingent on increased permit revenue; (f) Adopting development regulations which only require public hearings for permit applications that are required to have a public hearing by statute; (g) Adopting development regulations which make preapplication meetings optional rather than a requirement of permit application submittal; (h) Adopting development regulations which make housing types an outright permitted use in all zones where the housing type is permitted; (i) Adopting a program to allow for outside professionals with appropriate professional licenses to certify components of applications consistent with their license; or (j) Meeting with the applicant to attempt to resolve outstanding issues during the review process. The meeting must be scheduled within 14 days of a second request for corrections during permit review. If the meeting cannot resolve the issues and a local government proceeds with a third request for additional information or corrections, the local government must approve or deny the application upon receiving the additional information or corrections. (2)(a) After January 1, 2026, a county or city must adopt additional measures under subsection (1) of this section at the time of its next comprehensive plan update under RCW 36.70A.130 if it meets the following conditions: (i) The county or city has adopted at least three project review and code provisions under subsection (1) of this section more than five years prior; and (ii) The county or city is not meeting the permitting deadlines established in RCW 36.70B.080 at least half of the time over the period since its most recent comprehensive plan update under RCW 36.7 0A. 130. (b) A city or county that is required to adopt new measures under (a) of this subsection but fails to do so becomes subject to the provisions of RCW 36.70B.080(1)(1), notwithstanding RCW 36.70B.080(1) (1) (ii) . (3) Nothing in this chapter is intended or shall be construed to prevent a local government from requiring a preapplication conference or a public meeting by rule, ordinance, or resolution, where otherwise required by applicable state law. p. 16 E2SHB 2418.SL Page 42 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 (4) Each local government shall adopt procedures to monitor and enforce permit decisions and conditions. (5) Nothing in this chapter modifies any independent statutory authority for a government agency to appeal a project permit issued by a local government. (6) For the purposes of this section: (a) A dwelling unit is affordable if it requires payment of monthly housing costs, including utilities other than telephone, of no more than 30 percent of the family's income. (b) "Dwelling unit" means a residential living unit that provides complete independent living facilities for one or more persons and that includes permanent provisions for living, sleeping, eating, cooking, and sanitation, and that is sold or rented separately from other dwelling units. (c) "Low-income household" means a single person, family, or unrelated persons living together whose adjusted income is less than 80 percent of the median family income, adjusted for household size, for the county where the household is located, as reported by the United States department of housing and urban development, or less than 80 percent of the city's median income if the project is located in the city, the city has median income of more than 20 percent above the county median income, and the city has adopted an alternative local median income. (d) "Moderate -income household" means a single person, family, or unrelated persons living together whose adjusted income is at or below 120 percent of the median household income, adjusted for household size, for the county where the household is located, as reported by the United States department of housing and urban development, or less than 120 percent of the city's median income if the project is located in the city, the city has median income of more than 20 percent above the county median income, and the city has adopted an alternative local median income. NEW SECTION. Sec. 6. A new section is added to chapter 54.04 RCW to read as follows: (1) Whenever a public utility district imposes a fee on an applicant for the review of a project permit application related to a residential project, the district must complete its review within the time frames provided for in RCW 36.70B.080(3). p. 17 E2SHB 2418.SL Page 43 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 (2) If a public utility district does not complete its review within the required time frame, it must refund or forgo 20 percent of the fee that it charged, or would have charged, the applicant for the review. A district that does not collect a fee for its review of a portion of a project permit application is not required to provide any refund under this section. (3) For the purposes of this section, "project permit" has the same meaning as in RCW 36.70B.020. NEW SECTION. Sec. 7. A new section is added to chapter 43.21A RCW to read as follows: (1) Whenever the department imposes a fee on an applicant for the review of a project permit application related to a residential project, the department must complete its review within the time frames provided for a local government to issue a final decision in RCW 36.70B.080(1) (d) . The time that a project permit application has been under review must be calculated from the date that the department receives the information necessary for it to begin its review until the department has issued its final decision, and excludes any time period that would be excluded from the calculation of the time that a local government has been reviewing an application under RCW 36.70E.080(1) (g) (2) If the department does not complete its review within the required time frame, it must refund or forgo 20 percent of the fee that it charged, or would have charged, the applicant for the review. If the department does not collect a fee for its review of a portion of a project permit application, it is not required to provide any refund under this section. (3) For the purposes of this section, "project permit" has the same meaning as in RCW 36.70B.020. NEW SECTION. Sec. 8. A new section is added to chapter 57.08 RCW to read as follows: (1) Whenever a district imposes a fee on an applicant for the review of a project permit application related to a residential project, the district must complete its review within the time frames provided for in RCW 36.70B.080(3). (2) If a district does not complete its review within the required time frame, it must refund or forgo 20 percent of the fee that it charged, or would have charged, the applicant for the review. p. 18 E2SHB 2418.SL Page 44 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 A district that does not collect a fee for its review of a portion of a project permit application is not required to provide any refund under this section. (3) For the purposes of this section, "project permit" has the same meaning as in RCW 36.70B.020. NEW SECTION. Sec. 9. A new section is added to chapter 86.09 RCW to read as follows: (1) Whenever a district imposes a fee on an applicant for the review of a project permit application related to a residential project, the district must complete its review within the time frames provided for in RCW 36.70B.080(3). (2) If a district does not complete its review within the required time frame, it must refund or forgo 20 percent of the fee that it charged, or would have charged, the applicant for the review. A district that does not collect a fee for its review of a portion of a project permit application is not required to provide any refund under this section. (3) For the purposes of this section, "project permit" has the same meaning as in RCW 36.70B.020. NEW SECTION. Sec. 10. A new section is added to chapter 43.21C RCW to read as follows: If a county, city, or town has designated a permit responsible official under RCW 36.70B.060 on a residential project permit application, that official must also be designated as the responsible official when the county, city, or town is the lead agency responsible for complying with the requirements of this chapter related to the application for the residential project. Passed by the House March 11, 2026. Passed by the Senate March 4, 2026. Approved by the Governor March 27, 2026. Filed in Office of Secretary of State March 31, 2026. --- END --- p. 19 E2SHB 2418.SL Page 45 of 52 CERTIFICATION OF ENROLLMENT SECOND SUBSTITUTE HOUSE BILL 1859 Chapter 2, Laws of 2026 69th Legislature 2026 Regular Session AFFORDABLE HOUSING DEVELOPMENT -PROPERTIES OWNED BY RELIGIOUS ORGANIZATIONS EFFECTIVE DATE: June 11, 2026 Passed by the House February 11, 2026 Yeas 94 Nays 1 LAURIE JINKINS Speaker of the House of Representatives Passed by the Senate February 28, 2026 Yeas 48 Nays 1 DENNY HECK President of the Senate Approved March 9, 2026 9:10 AM BOB FERGUSON 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 1859 as passed by the House of Representatives and the Senate on the dates hereon set forth. BERNARD DEAN Chief Clerk FILED March 10, 2026 Secretary of State State of Washington Page 46 of 52 SECOND SUBSTITUTE HOUSE BILL 1859 Passed Legislature - 2026 Regular Session State of Washington 69th Legislature 2026 Regular Session By House Finance (originally sponsored by Representatives Salahuddin, Peterson, Doglio, Parshley, Dufault, Leavitt, Reed, Gregerson, Nance, Street, Obras, Ormsby, Hill, Timmons, Duerr, and Callan) READ FIRST TIME 02/03/26. 1 AN ACT Relating to expanding opportunities for affordable housing 2 developments on properties owned by religious organizations; and 3 amending RCW 35.63.280, 35A.63.300, and 36.70A.545. 4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON: 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Sec. 1. RCW 35.63.280 and 2019 c 218 s 1 are each amended to read as follows: (1) A city planning under this chapter must allow an increased density bonus consistent with local needs for any affordable housing development of any single-family or multifamily residence located on real property owned or controlled by a religious organization provided that: (a) ((fie)) (i) At least 50 percent of the affordable housing development is set aside for or occupied exclusively by low-income households; or (ii) At least 20 percent of the affordable housing development is set aside for or occupied exclusively by very low-income households; (b) The affordable housing development is part of a lease or other binding obligation that requires ((thc dcvclopmcnt to be uocd excluoivcly for affordabic housing )) the affordability requirements and other conditions in this subsection (1) to be p. 1 2SHB 1859.SL Page 47 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 maintained for at least ((may)) 50 years, even if the religious organization no longer owns the property; and (c) The affordable housing development does not discriminate against any person who qualifies as a member of a low-income household based on race, creed, color, national origin, sex, veteran or military status, sexual orientation, or mental or physical disability; or otherwise act in violation of the federal fair housing amendments act of 1988 (42 U.S.C. Sec. 3601 et seq.). (2) A city ((may)) must develop policies to implement this section if it receives a request from a religious organization for an increased density bonus for an affordable housing development. A city may establish policies to require an affordable housing development to set aside more residential dwelling units for low-income or very low-income households than is required under subsection (1) of this section to qualify for the increased density bonus. (3) The religious organization or an entity leasing the property for the purpose of developing the affordable housing development must pay all fees, mitigation costs, and other charges required through the development of the affordable housing development. (4) If applicable, the religious organization developing the affordable housing development should work with the local transit agency to ensure appropriate transit services are provided to the affordable housing development. (5) This section applies to any religious organization rehabilitating an existing affordable housing development. (6) For purposes of this section: (a) "Affordable housing development" means a proposed or existing structure in which ((o c h„nEi )) 50 percent of all single-family or multifamily residential dwelling units within the development are set aside for or are occupied by low-income households ((at—a-al_e or rcnt amountof exceed thirty pereent of thc ineomc limit for elow —incomc houoin unit)) or 20 percent of all single-family or multifamily residential dwelling units within the development are set aside for or occupied by very low-income households, whose monthly housing costs, including utilities other than telephone, do not exceed 30 percent of the household's monthly income; (b) "Low-income household" means a single person, family, or unrelated persons living together whose adjusted income is ((fie than cig ty)) at or below 80 percent of the median family income, J - - 1 adjusted for household size, for the county where the affordable p. 2 2SHB 1859.SL Page 48 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 housing development is located, as reported by the United States department of housing and urban development; (()) (c) "Religious organization" has the same meaning as in RCW 35.21.915; and j "Very low-income household" means a single person, family, or unrelated persons living together whose adjusted income is at or below 50 percent of the median family income, adjusted for household size, for the county where the affordable housing development is located, as reported by the United States department of housing and urban development. Sec. 2. RCW 35A.63.300 and 2019 c 218 s 2 are each amended to read as follows: (1) A city planning under this chapter must allow an increased density bonus consistent with local needs for any affordable housing development of any single-family or multifamily residence located on real property owned or controlled by a religious organization provided that: (a) ((ire)) (i) At least 50 percent of the affordable housing development is set aside for or occupied exclusively by low-income households; or (ii) At least 20 percent of the affordable housing development is set aside for or occupied exclusively by very low-income households; (b) The affordable housing development is part of a lease or other binding obligation that requires ((thc dcvclopmcnt to be uscd exclusively for affordablc housing ) ) the affordability requirements and other conditions in this subsection (1) to be maintained for at least ((may)) 50 years, even if the religious organization no longer owns the property; and (c) The affordable housing development does not discriminate against any person who qualifies as a member of a low-income household based on race, creed, color, national origin, sex, veteran or military status, sexual orientation, or mental or physical disability; or otherwise act in violation of the federal fair housing amendments act of 1988 (42 U.S.C. Sec. 3601 et seq.). (2) A city ((may)) must develop policies to implement this section if it receives a request from a religious organization for an increased density bonus for an affordable housing development. A city may establish policies to require an affordable housing development to set aside more residential dwelling units for low-income or very p. 3 2SHB 1859.SL Page 49 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 low-income households than is required under subsection (1) of this section to qualify for the increased density bonus. (3) The religious organization or an entity leasing the property for the purpose of developing the affordable housing development must pay all fees, mitigation costs, and other charges required through the development of the affordable housing development. (4) If applicable, the religious organization developing the affordable housing development should work with the local transit agency to ensure appropriate transit services are provided to the affordable housing development. (5) This section applies to any religious organization rehabilitating an existing affordable housing development. (6) For purposes of this section: (a) "Affordable housing development" means a proposed or existing structure in which ((o c h„nel )) 50 percent of all single-family or multifamily residential dwelling units within the development are set aside for or are occupied by low-income households ((at—asa1cTpr-__ or rct amount that may not cxcccd thirty pereent of thc- neomc limit for elow —ineeFfte heusin )) or 20 percent of all single-family or multifamily residential dwelling units within the development are set aside for or occupied by very low-income households, whose monthly housing costs, including utilities other than telephone, do not exceed 30 percent of the household's monthly income; (b) "Low-income household" means a single person, family, or unrelated persons living together whose adjusted income is ((less than cig ty)) at or below 80 percent of the median family income, J - - 1 adjusted for household size, for the county where the affordable housing development is located, as reported by the United States department of housing and urban development; (()) (c) "Religious organization" has the same meaning as in RCW 35A.21.360; and j "Very low-income household" means a single person, family, or unrelated persons living together whose adjusted income is at or below 50 percent of the median family income, adjusted for household size, for the county where the affordable housing development is located, as reported by the United States department of housing and urban development. Sec. 3. RCW 36.70A.545 and 2019 c 218 s 3 are each amended to read as follows: p. 4 2SHB 1859.SL Page 50 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 (1) Any city or county fully planning under this chapter must allow an increased density bonus consistent with local needs for any affordable housing development of any single-family or multifamily residence located on real property owned or controlled by a religious organization provided that: (a) ((fie)) (i) At least 50 percent of the affordable housing development is set aside for or occupied exclusively by low-income households; or (ii) At least 20 percent of the affordable housing development is set aside for or occupied exclusively by very low-income households; (b) The affordable housing development is part of a lease or other binding obligation that requires ((thc dcvclopmcnt to be uocd excluively for afferdablc hung ) ) the affordability requirements and other conditions in this subsection (1) to be maintained for at least ((may)) 50 years, even if the religious organization no longer owns the property; and (c) The affordable housing development does not discriminate against any person who qualifies as a member of a low-income household based on race, creed, color, national origin, sex, veteran or military status, sexual orientation, or mental or physical disability; or otherwise act in violation of the federal fair housing amendments act of 1988 (42 U.S.C. Sec. 3601 et seq.). (2) A city or county (()) must develop policies to implement this section if it receives a request from a religious organization for an increased density bonus for an affordable housing development. A city or county may establish policies to require an affordable housing development to set aside more residential dwelling units for low-income or very low-income households than is required under subsection (1) of this section to qualify for the increased density bonus. (3) An affordable housing development created by a religious institution within a city or county fully planning under RCW 36.70A.040 must be located within an urban growth area as defined in RCW 36.70A.110. (4) The religious organization or an entity leasing the property for the purpose of developing the affordable housing development must pay all fees, mitigation costs, and other charges required through the development of the affordable housing development. (5) If applicable, the religious organization developing the affordable housing development should work with the local transit p. 5 2SHB 1859.SL Page 51 of 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 agency to ensure appropriate transit services are provided to the affordable housing development. (6) This section applies to any religious organization rehabilitating an existing affordable housing development. (7) For purposes of this section: (a) "Affordable housing development" means a proposed or existing structure in which ((o c h„nEi )) 50 percent of all single-family or multifamily residential dwelling units within the development are set aside for or are occupied by low-income households ((at—a-c3a1cc3 pricc or rct amount that may not exceed thirty pereent of thc- neomc limit for elow —ineeffte hou3in )) or 20 percent of all single-family or multifamily residential dwelling units within the development are set aside for or occupied by very low-income households, whose monthly housing costs, including utilities other than telephone, do not exceed 30 percent of the household's monthly income; (b) "Low-income household" means a single person, family, or unrelated persons living together whose adjusted income is ((303e than eighty)) at or below 80 percent of the median family income, adjusted for household size, for the county where the affordable housing development is located, as reported by the United States department of housing and urban development; (()) (c) "Religious organization" has the same meaning as in ROW 36.01.290; and j�flZ "Very low-income household" means a single person, family, or unrelated persons living together whose adjusted income is at or below 50 percent of the median family income, adjusted for household size, for the county where the affordable housing development is located, as reported by the United States department of housing and urban development. Passed by the House February 11, 2026. Passed by the Senate February 28, 2026. Approved by the Governor March 9, 2026. Filed in Office of Secretary of State March 10, 2026. --- END --- I• • 2SHB 1859.SL Page 52 of 52