SSB 5749
In CommitteeSenate
Housing opportunity zones
Concerning housing development opportunity zones.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill allows Washington cities and code cities to quickly create special zones on underused commercial land—like empty shopping malls or big-box stores—to prioritize new housing and mixed-use development. It gives cities tools to reduce costs and speed up approval, including waiving fees and bypassing some planning rules, while still requiring future updates to the city’s official land-use plan.
- Cities and code cities may designate specific commercial areas (e.g., shopping malls, vacant department stores, vacant grocery stores) as 'Housing Development Opportunity Zones' by resolution or ordinance.
- Development in these zones must prioritize residential or mixed-use residential uses and must use existing infrastructure (e.g., stormwater systems, utilities) to reduce costs.
- Cities may waive impact fees for development within the zones to lower development costs.
- Zoning changes for these zones are exempt from the usual comprehensive plan update cycle, but must be incorporated into the next official plan update.
- Development must occur within the original building setbacks and use the existing project site area (e.g., parking lots, vacant structures).
Who is affected
- Cities and code cities — Cities and code cities (municipal governments) gain the authority to designate specific underutilized commercial sites as zones where residential or mixed-use development is prioritized, with flexibility to waive fees and bypass certain planning requirements.
- Developers and property owners of large commercial sites — Developers and property owners of large commercial sites (e.g., shopping malls, vacant department stores, vacant grocery stores) may benefit from reduced development costs, fee waivers, and streamlined approval processes to convert or redevelop those sites for housing.
- Residents and future residents — Residents and future residents—especially low- and middle-income households—may benefit from increased housing supply in convenient, transit-accessible locations where large commercial sites already exist.
- Local governments (fiscal offices/treasurers) — Local governments may face reduced short-term revenue from waived impact fees, though they may gain long-term property tax revenue from new housing development.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
By enabling rapid conversion of underused commercial land (e.g., vacant malls, big-box stores) into housing, the bill directly increases supply in transit-accessible locations—potentially easing pressure on high-demand neighborhoods and reducing household transportation and housing costs for working- and middle-class families.
HousingPeopleRef: Sec. 2(1) and Sec. 3(1)Waiving impact fees lowers development costs, which may incentivize developers—especially smaller or mission-driven ones—to pursue projects in areas where market conditions would otherwise be marginal, supporting job creation in construction and related trades.
Business & EmploymentPeopleRef: Sec. 2(5) and Sec. 3(5)Requiring use of existing infrastructure (e.g., stormwater systems, utilities) and the existing project site area discourages greenfield development and sprawl, supporting more sustainable, infill-based growth that reduces vehicle miles traveled and greenhouse gas emissions.
EnvironmentPeopleRef: Sec. 2(4)(a)(i) and Sec. 3(4)(a)(i)The ability to act outside the 10-year comprehensive plan cycle allows cities to respond more quickly to urgent housing needs—particularly valuable for jurisdictions facing acute shortages or rapid economic shifts (e.g., retail decline in suburban corridors).
Local GovernmentPeopleRef: Sec. 2(6) and Sec. 3(6)Defining zones by existing improvements (e.g., parking lots, building footprints) helps preserve open space and avoids displacing current residents or businesses, making redevelopment more politically and physically feasible in established neighborhoods.
HousingLean peopleRef: Sec. 2(2) and Sec. 3(2)
Potential Concerns (5)
Waiving impact fees reduces short-term local government revenue without guaranteed replacement funding, potentially straining budgets for schools, roads, and parks—especially in cities already facing fiscal pressure. While long-term property tax gains are possible, many jurisdictions may experience net revenue loss in the first 5–10 years due to the lag between development and tax collection.
Local GovernmentPeopleRef: Sec. 2(5) and Sec. 3(5)Requiring development to occur only within the existing project site area (e.g., parking lots, building footprints) limits housing density and may prevent more transformative infill that could better serve transit-oriented development goals—especially in areas where large commercial sites are already underutilized or obsolete.
HousingLean peopleRef: Sec. 2(4)(a)(ii) and Sec. 3(4)(a)(ii)Exempting zone designations from the usual comprehensive plan update cycle (RCW 36.70A.130) may undermine long-term regional planning coherence and community engagement, especially if cities implement multiple zones outside the normal planning rhythm, leading to fragmented or inconsistent development patterns.
Local GovernmentLean peopleRef: Sec. 2(6) and Sec. 3(6)While residential use is prioritized, the bill does not mandate affordability or inclusionary zoning, meaning new units are likely to be market-rate—potentially pricing out low- and moderate-income residents even as supply increases.
HousingRef: Sec. 2(3) and Sec. 3(3)Relying solely on existing stormwater infrastructure may not account for climate-driven increases in rainfall or aging systems, potentially leading to future flooding or water quality violations if upgrades are not required—especially in older commercial zones with outdated drainage.
EnvironmentLean peopleRef: Sec. 2(4)(a)(i) and Sec. 3(4)(a)(i)
Who Is Most Affected
Cities gain flexibility to act quickly on housing, but may face short-term revenue losses from fee waivers and long-term administrative costs. Smaller cities with limited planning staff may struggle to implement the program effectively without state guidance or funding.
Large commercial property owners (e.g., mall owners, big-box landlords) stand to benefit most—especially those with underperforming assets—by converting vacant or obsolete properties into housing with reduced costs and faster approvals. Smaller developers may benefit less due to scale requirements.
Low- and middle-income households may benefit from increased supply near transit, but only if units are affordable. Without affordability requirements, rising demand in these zones could displace existing residents or price out lower-income households.
Local treasurers may see reduced short-term revenue from waived impact fees, but long-term property tax revenue could increase—especially in cities where the zones catalyze significant redevelopment. Fiscal impact depends heavily on pace and scale of development.
Existing small businesses in or near zones may face displacement or increased competition for labor and customers. However, new residents could boost local demand for services, potentially benefiting mom-and-pop shops in mixed-use developments.