This bill addresses the ongoing housing affordability crisis in Washington by mandating that cities and counties with populations of 30,000 or more cannot exclude residential uses in areas designated for commercial or mixed-use development. Specifically, it prohibits these jurisdictions from requiring mixed-use or ground-floor commercial space as a condition for permitting residential housing. The bill aims to streamline the development process for residential units in commercial zones, thereby expanding housing opportunities.

However, there are exceptions to this mandate. The restrictions do not apply to certain areas, including industrial zones, locations near oil or gas refineries, historic landmarks, areas outside urban growth boundaries, and critical areas governed by specific ordinances. Additionally, the bill clarifies that it does not compel cities to issue building permits if other regulatory requirements are not satisfied. The new regulations will take effect one year after the bill's effective date unless local jurisdictions have already adopted compliant ordinances.