This bill addresses the ongoing housing shortage 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 projects in commercial zones, thereby facilitating the construction of affordable housing.

However, there are exceptions to this mandate. The bill outlines specific circumstances under which residential uses can still be excluded, such as in industrial zones, near active oil or gas refineries, in areas requiring the demolition of historic structures, outside urban growth areas, and in critical areas governed by local 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.