This bill aims to address the housing supply crisis in Washington State by allowing local governments to create "housing development opportunity zones." These zones can be designated in areas with existing commercial development, such as shopping malls and vacant stores, to facilitate residential and mixed-use development. The legislation permits cities and code cities to prioritize residential development within these zones, utilize existing infrastructure to reduce costs, and waive impact fees associated with new developments.

The bill includes provisions that exempt the implementation of these housing development opportunity zones from certain planning requirements, allowing for more immediate action within the planning period, provided that any changes are incorporated into the next comprehensive plan update. This approach is intended to streamline the development process in underutilized areas, thereby promoting sustainable growth and addressing the urgent need for housing.