This bill aims to address Washington state's housing affordability crisis by legalizing co-living housing, which is defined as residential developments where sleeping units are independently rented and share kitchen facilities. The legislature recognizes that co-living housing can provide affordable rental options for individuals with moderate to low incomes without the need for public funding. The bill outlines the benefits of co-living housing, including its potential to reduce pressure on publicly funded affordable housing, its suitability for various demographics such as seniors and single-person households, and its energy efficiency.

To facilitate the development of co-living housing, the bill mandates that cities and counties allow it as a permitted use in urban growth areas that permit multifamily residential units. It prohibits local governments from imposing more restrictive standards on co-living housing compared to other multifamily residential uses, including limitations on unit sizes, parking requirements, and participation in affordable housing incentive programs. Additionally, the bill requires local jurisdictions to adopt necessary regulations by December 31, 2025, and ensures that any actions taken to comply with these requirements cannot be legally challenged.