H-0431.1
HOUSE BILL 1337
State of Washington 67th Legislature 2021 Regular Session
By Representatives Gregerson, Barkis, Fitzgibbon, Chambers, Peterson,
Davis, Gilday, Bateman, Callan, Eslick, Young, Harris-Talley, and
Macri
Read first time 01/21/21. Referred to Committee on Local Government.
1 AN ACT Relating to accessory dwelling units; amending RCW
2 36.70A.696 and 43.21C.495; adding new sections to chapter 36.70A RCW;
3 adding new sections to chapter 82.14 RCW; creating a new section; and
4 repealing RCW 35.63.210, 35A.63.230, 36.70A.400, 36.70.677, and
5 43.63A.215.
6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
7 NEW SECTION. Sec. 1. (1) The legislature makes the following
8 findings:
9 (a) Washington state is experiencing a housing affordability
10 crisis. Many communities across the state are in need of more housing
11 for renters across the income spectrum.
12 (b) Many cities dedicate the majority of residentially zoned land
13 to single-detached houses that are increasingly financially out of
14 reach for many households. Due to their smaller size, accessory
15 dwelling units can provide a more affordable housing option in those
16 single-family zones.
17 (c) Localities can start to correct for historic economic and
18 racial exclusion in single-family zones by opening up these
19 neighborhoods to more diverse housing types, including accessory
20 dwelling units, that provide lower cost homes. Increasing housing
21 options in expensive, high-opportunity neighborhoods will give more
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 1 families access to schools, parks, and other public amenities
2 otherwise accessible to only the wealthy.
3 (d) Accessory dwelling units are frequently rented below market
4 rate, providing additional affordable housing options for renters.
5 (e) Accessory dwelling units can also help to provide housing for
6 very low-income households. More than 10 percent of accessory
7 dwelling units in some areas are occupied by tenants who pay no rent
8 at all; among these tenants are grandparents, adult children, family
9 members with disabilities, friends going through life transitions,
10 and community members in need. Accessory dwelling units meet the
11 needs of these people who might otherwise require subsidized housing
12 space and resources.
13 (f) Accessory dwelling units can meet the needs of Washington's
14 growing senior population, making it possible for this population to
15 age in their communities by offering senior-friendly housing, which
16 prioritizes physical accessibility, in walkable communities near
17 amenities essential to successful aging in place, including transit
18 and grocery stores, without requiring costly renovations of existing
19 housing stock.
20 (g) Homeowners who add an accessory dwelling unit may benefit
21 from added income and an increased sense of security.
22 (h) Encouraging localities to adopt measures that spur accessory
23 dwelling unit construction would create jobs as the state recovers
24 from the COVID-19 economic shutdown.
25 (i) Accessory dwelling units provide environmental benefits. On
26 average they are more energy efficient than single-detached houses,
27 and they incentivize adaptive reuse of existing homes and materials.
28 (j) Siting accessory dwelling units near transit hubs, employment
29 centers, and public amenities can help to reduce greenhouse gas
30 emissions by increasing walkability, shortening household commutes,
31 and curtailing sprawl.
32 (2) The legislature intends to promote and encourage the creation
33 of accessory dwelling units as a means to address the need for
34 additional affordable housing options.
35 (3) The legislature intends to accelerate production of accessory
36 dwelling units by offering local governments the equivalent of the
37 state's portion of sales tax generated by accessory dwelling unit
38 construction in their jurisdiction, if they adopt state-approved
39 model code requirements for accessory dwelling units. This program
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 1 will be assisted by the department of commerce, which will verify the
2 amount of new accessory dwelling unit construction that has occurred.
3 Sec. 2. RCW 36.70A.696 and 2020 c 217 s 2 are each amended to
4 read as follows:
5 The definitions in this section apply throughout RCW 36.70A.697
6 ((and)), 36.70A.698, and sections 3 and 4 of this act unless the
7 context clearly requires otherwise.
8 (1) "Accessory dwelling unit" means a dwelling unit located on
9 the same lot as a single-family housing unit, duplex, triplex,
10 townhome, or other housing unit.
11 (2) "Attached accessory dwelling unit" means an accessory
12 dwelling unit located within or attached to a single-family housing
13 unit, duplex, triplex, townhome, or other housing unit.
14 (3) "City" means any city, code city, and town located in a
15 county planning under RCW 36.70A.040.
16 (4) "Detached accessory dwelling unit" means an accessory
17 dwelling unit that consists partly or entirely of a building that is
18 separate and detached from a single-family housing unit, duplex,
19 triplex, townhome, or other housing unit.
20 (5) "Dwelling unit" means a residential living unit that provides
21 complete independent living facilities for one or more persons and
22 that includes permanent provisions for living, sleeping, eating,
23 cooking, and sanitation.
24 (6) "Gross floor area" means the interior habitable area of a
25 dwelling unit including basements and attics but not including a
26 garage or accessory structure.
27 (7) "Major transit stop" means:
28 (a) A stop on a high capacity transportation system funded or
29 expanded under the provisions of chapter 81.104 RCW;
30 (b) Commuter rail stops;
31 (c) Stops on rail or fixed guideway systems, including
32 transitways;
33 (d) Stops on bus rapid transit routes or routes that run on high
34 occupancy vehicle lanes; or
35 (e) Stops for a bus or other transit mode providing fixed route
36 service at intervals of at least fifteen minutes during the peak
37 hours of operation.
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1 (8) "Principal unit" means the single-family housing unit,
2 duplex, triplex, townhome, or other housing unit located on the same
3 lot as an accessory dwelling unit.
4 NEW SECTION. Sec. 3. A new section is added to chapter 36.70A
5 RCW to read as follows:
6 (1) Cities and counties may adopt or amend by ordinance and
7 incorporate into their development regulations, zoning regulations,
8 and other official controls, an authorization for the creation of
9 accessory dwelling units that is consistent with this section and
10 section 4 of this act. A city or county that complies with the
11 provisions of this section and section 4 of this act is eligible to
12 apply for a distribution from the accessory dwelling unit incentive
13 account under section 6 of this act.
14 (2) Ordinances, development regulations, and other official
15 controls adopted or amended pursuant to this section and section 4 of
16 this act need only apply in the portions of towns, cities, and
17 counties that are within urban growth areas designated under this
18 chapter.
19 (3) Attached or detached accessory dwelling units may not be
20 considered as contributing to the overall underlying density within
21 the urban growth area boundary of a county for purposes of compliance
22 with this chapter.
23 (4) Any action taken by a city or county to comply with the
24 requirements of this section or section 4 of this act is not subject
25 to legal challenge under this chapter or chapter 43.21C RCW.
26 (5) Nothing in this section or section 4 of this act requires or
27 authorizes a city or county to authorize the construction of an
28 accessory dwelling unit in a location where development is restricted
29 under other laws, rules, or ordinances as a result of physical
30 proximity to on-site sewage system infrastructure, critical areas, or
31 other unsuitable physical characteristics of a property.
32 NEW SECTION. Sec. 4. A new section is added to chapter 36.70A
33 RCW to read as follows:
34 (1) In addition to ordinances, development regulations, and other
35 official controls adopted or amended to comply with section 3 of this
36 act and subsections (2) and (3) of this section, a city or county
37 must comply with a minimum of three of the following policies to
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 1 qualify for a distribution from the accessory dwelling unit incentive
2 account under section 6 of this act:
3 (a) The city or county may not establish a requirement for the
4 provision of off-street parking for accessory dwelling units;
5 (b) The city or county may not assess impact fees on the
6 construction of accessory dwelling units;
7 (c) The city or county may not require the owner of a lot on
8 which there is an accessory dwelling unit to reside in or occupy the
9 accessory dwelling unit or another housing unit on the same lot; and
10 (d) The city or county must allow at least two accessory dwelling
11 units on all lots that are located in all zoning districts that allow
12 for single-family homes in the following configurations:
13 (i) One attached accessory dwelling unit and one detached
14 accessory dwelling unit;
15 (ii) Two attached accessory dwelling units; or
16 (iii) Two detached accessory dwelling units, which may be
17 comprised of either one or two detached structures.
18 (2) Through ordinances, development regulations, and other
19 official controls adopted or amended to comply with section 3 of this
20 act and subsections (1) and (3) of this section, a city or county
21 must also comply with a minimum of five of the following policies to
22 qualify for a distribution from the accessory dwelling unit incentive
23 account under section 6 of this act:
24 (a) The city or county may not count residents of accessory
25 dwelling units against existing limits on the number of unrelated
26 residents on a lot;
27 (b) The city or county may not establish a minimum gross floor
28 area for accessory dwelling units that exceeds the state building
29 code;
30 (c) The city or county may not count the gross floor area of an
31 accessory dwelling unit against floor-area-ratio limitations that
32 apply to principal units;
33 (d) The city or county may not count indoor parking, unheated
34 storage, or heated basements against the gross floor area limits for
35 accessory dwelling units;
36 (e) The city or county must make the same allowances for
37 accessory dwelling units' roof decks, balconies, and porches to
38 encroach on setbacks as are allowed for the principal unit;
39 (f) The city or county must allow accessory dwelling units to
40 encroach on setbacks if there is written approval from the property
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 1 owner with whom the lot line is shared on file in the jurisdiction in
2 which the detached accessory dwelling unit is located and the
3 encroachment is not prohibited by the applicable local fire code;
4 (g) The city or county must apply abutting lot setbacks to
5 accessory dwelling units on lots abutting zones with lower setback
6 requirements;
7 (h) The city or county must adopt model accessory dwelling unit
8 architectural plans that are preapproved for public use under local
9 permitting requirements; and
10 (i) The city or county must establish an amnesty program to help
11 owners of unpermitted accessory dwelling units to obtain a permit.
12 (3) Through ordinances, development regulations, and other
13 official controls adopted or amended to comply with section 3 of this
14 act and subsections (1) and (2) of this section, a city or county
15 must also comply with all of the following policies to qualify for an
16 accessory dwelling unit incentive account distribution under section
17 6 of this act:
18 (a) The city or county must permit accessory dwelling units in
19 structures detached from the principal unit, must allow an accessory
20 dwelling unit on any lot that meets the minimum lot size required for
21 the principal unit, and must allow attached accessory dwelling units
22 on any lot with a principal unit that is nonconforming solely because
23 the lot is smaller than the minimum size, as long as the accessory
24 dwelling unit would not increase nonconformity of the residential use
25 with respect to building height, bulk, or lot coverage;
26 (b) The city or county may not establish a maximum gross floor
27 area requirement for accessory dwelling units that are less than
28 1,000 square feet or 60 percent of the principal unit, whichever is
29 greater, or that exceeds 1,200 square feet;
30 (c) The city or county may not establish roof height limits,
31 setback requirements, rear yard coverage limits, tree retention
32 mandates, restrictions on entry door locations, aesthetic
33 requirements, or requirements for design review for accessory
34 dwelling units that are more restrictive than those for principal
35 units;
36 (d) A city or county must allow detached accessory dwelling units
37 to be sited at a lot line if the lot line abuts a public alley,
38 unless the city or county routinely plows snow on the public alley;
39 (e) A city or county must allow accessory dwelling units to be
40 converted from existing structures, including but not limited to
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 1 detached garages, even if they violate current code requirements for
2 setbacks or lot coverage;
3 (f) A city or county may not prohibit the sale or other
4 conveyance of a condominium unit independently of a principal unit
5 solely on the grounds that the condominium unit was originally built
6 as an accessory dwelling unit;
7 (g) A city or county may not charge permitting or plan review
8 fees for accessory dwelling units greater than those that would be
9 charged for a project of similar value or square footage in a
10 principal unit;
11 (h) A city or county may not require public street improvements
12 as a condition of permitting accessory dwelling units; and
13 (i) A city or county may not require installation of a new or
14 separate utility connection between an accessory dwelling unit and a
15 utility unless unusual site conditions make it unavoidable, and if
16 such connection is necessary, the connection fees of capacity charges
17 must:
18 (i) Be proportionate to the burden of the proposed accessory
19 dwelling unit upon the water or sewer system, based on its size or
20 number of plumbing fixtures;
21 (ii) Not exceed the reasonable cost of providing the service; and
22 (iii) Not be inconsistent with water availability requirements,
23 water system plans, small water system management plans, or
24 established policies adopted by the water or sewer utility provider.
25 Sec. 5. RCW 43.21C.495 and 2020 c 173 s 2 are each amended to
26 read as follows:
27 (1) If adopted by April 1, 2023, amendments to development
28 regulations and other nonproject actions taken by a city to implement
29 RCW 36.70A.600 (1) or (4), with the exception of the action specified
30 in RCW 36.70A.600(1)(f), are not subject to administrative or
31 judicial appeals under this chapter.
32 (2) Amendments to development regulations and other nonproject
33 actions taken by a covered city or county consistent with the
34 requirements of sections 3 and 4 of this act are not subject to
35 administrative or judicial appeals under this chapter.
36 NEW SECTION. Sec. 6. A new section is added to chapter 82.14
37 RCW to read as follows:
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 1 (1) A city or county may apply for a distribution from the
2 accessory dwelling unit incentive account based on new accessory
3 dwelling unit construction within urban growth areas designated under
4 chapter 36.70A RCW. This distribution shall occur yearly and must be
5 made subject to the requirements of this section and section 7 of
6 this act.
7 (2) In order to qualify for a distribution, a city or county
8 must:
9 (a) Have adopted and maintained all of the policies required in
10 sections 3 and 4 of this act for the prior fiscal year;
11 (b) Have maintained sufficient data for the department of
12 commerce to verify the amount of new accessory dwelling unit
13 construction that has occurred in urban growth areas within the city
14 in the case of cities, or within the unincorporated areas within the
15 county in the case of counties; and
16 (c) Have submitted an application for a distribution as well as
17 proof of verification of new accessory dwelling unit construction to
18 the department of commerce within 12 months of the conclusion of the
19 fiscal year for which a distribution is sought.
20 (3) The maximum cumulative distributions under this section in
21 any fiscal year may not exceed the maximum amount deposited into the
22 accessory dwelling unit incentive account under section 7 of this
23 act.
24 (4)(a) The department of commerce shall review and verify the
25 amount of new