WA State: HB 1491 Transit Oriented Housing Development (Proposed)
House Bill 1491 in Washington state aims to address the housing affordability crisis by promoting transit-oriented development (TOD). The bill mandates increased housing density near transit hubs, specifically within a half-mile radius of train stations and a quarter-mile radius of bus rapid transit (BRT) stops. Cities operating under the Growth Management Act (GMA) are required to rezone these areas to allow for higher density residential and mixed-use development.
Key density requirements include a minimum average floor area ratio (FAR) of 3.5 near rail stations and 2.5 near BRT stops, with flexibility for cities to adjust within the area as long as the average is met. Certain lots, such as those with critical areas or historic landmarks, are exempt. The bill defines BRT based on infrastructure, not just service frequency. An additional 1.5 FAR density bonus is offered if all units are designated as affordable housing.
A central component of HB 1491 is its affordability mandate. New residential buildings in station areas must designate either 10% of units for households earning no more than 60% of the area median income (AMI) for rentals and 80% for owner-occupied housing, or 20% of rental units for households at 80% of the AMI. This inclusionary zoning (IZ) provision has sparked significant debate, with critics arguing that overly strict mandates could discourage development and exacerbate housing scarcity. Exemptions exist for projects already subject to pre-existing affordability requirements or in cities with mandatory IZ programs. Rep. Julia Reed, the bill's sponsor, insists that an affordability mandate is essential.
To incentivize development, the bill offers a 20-year property tax exemption for residential and mixed-use buildings within station areas that meet the affordability requirements. Cities must establish procedures for implementing and approving this exemption. The bill also limits minimum residential parking requirements within station areas, with some exceptions. Development within station areas is categorically exempt from State Environmental Policy Act (SEPA) review.
Implementation timelines vary, with Vancouver and Spokane slated for compliance by 2026, and most Puget Sound cities by the end of the decade, aligning with their comprehensive plan updates. The Department of Commerce is tasked with developing a model TOD ordinance, which would take effect if a city fails to implement the requirements by its deadline. The Department can also grant extensions to cities demonstrating a high risk of displacement.
The bill authorizes a grant program, subject to appropriation, to assist cities with infrastructure improvements, planning costs, and staffing related to TOD. Public testimony and legislative discussions have revealed a divide. Supporters emphasize the urgent need for more housing, particularly near transit, and the benefits of denser, more affordable communities. Opponents express concerns about the feasibility of the affordability requirements, the impact on existing communities, the tight implementation timeline, parking requirements, and the need for infrastructure funding. Legislators like Sen. Yasmin Trudeau and Sen. Jesse Salomon have expressed concerns about the efficacy of the bill and the need to tailor affordability mandates to local conditions. The bill is scheduled for a public hearing in the House Committee on Capital Budget, indicating further developments are forthcoming.