Edmonds: Middle Housing and Impact Fee Code Update 2025

The City of Edmonds is undertaking a significant Development Code Update in 2025, driven primarily by state mandates concerning middle housing and impact fees. Senior Planner Brad Shipley presented key issues to the Planning Board on February 26, 2025, outlining the scope and challenges of this update.

The core driver is House Bill 1110, which requires cities to allow middle housing on all lots zoned predominantly for residential use. This necessitates the adoption of regulations permitting at least six middle housing building types and ensuring a minimum of four units per lot, either by right for lots near major transit stops or through an affordability incentive for other lots. This legislation aims to increase housing choice and affordability, boost new housing production, promote housing near job centers and infrastructure, and reduce development pressure on rural lands.

Senate Bill 5258 further complicates the update by requiring transportation and parks impact fees to reflect the proportionate impact of new, smaller housing units. This addresses the issue of middle housing units, which are generally smaller than single-family homes, being unfairly classified and charged higher fees.

The scope of the code update includes creating a new Middle Housing Zone (16.20), revising subdivision regulations (20.75), updating definitions (Title 21), and adjusting impact fees (3.36). The update is being approached in phases, with Phase II focusing on achieving compliance by June 30, 2025, and Phase III aiming to refine standards and enhance user-friendliness by the end of 2025.

Key issues under discussion include:

• Determining the best way to regulate middle housing, considering the variety of building types and lot layouts. Options include organizing by lot size, amenity-rich neighborhoods, or a combination. The goal is to ensure feasibility and scalability while maintaining neighborhood character.

• Deciding the appropriate level of detail to include in Phase II, balancing the need for clear standards with the desire for flexibility. This involves considering block models, building type standards, building placement, and building form.

• Addressing the state mandate for four units per lot, either by right or through an affordability incentive. The city must weigh the benefits of incentivizing affordable housing against the administrative burden of tracking compliance over a 50-year period. An alternative is allowing three units by-right.

• Implementing the new regulations regarding impact fees, and ensuring that middle housing does not incur the same fees as single family dwellings, due to their smaller footprint.

The discussion also touched on the need to consider which middle housing types are most suitable for different lot sizes and neighborhood contexts. Further discussions regarding subdivisions and accessory dwelling units (ADUs) are planned for future meetings. The city aims to create a regulatory framework that is both compliant and adaptable for future development.