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WashingtonSB 60262025-2026 Regular SessionSenateWALLET

Concerning residential development in commercial and mixed-use zones.

Sponsored By: Emily Alvarado (Democratic)

Became Law

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 5 benefits, 0 costs, 1 mixed.

Homes allowed in most commercial zones

The law stops many cities and nonrural counties from banning homes in commercial or mixed‑use zones. It applies to cities with 30,000+ people and counties that plan under state growth rules. Homes can still be blocked in certain places, like industrial zones, within 3,200 feet of an active oil or gas refinery, where a local historic landmark would be torn down, outside or noncontiguous urban growth areas, in areas barred by state safety laws, in older tax increment financing areas, in shoreline zones that prohibit multifamily, and in most critical areas and buffers (with a narrow aquifer exception for single‑family if recharge rules are met).

Limits on forced ground-floor retail

The law caps how much land can require ground‑floor shops in commercial or mixed‑use zones. Cities and counties cannot make ground‑floor retail a condition for homes on more than 40% of that land. Some areas do not count toward the 40% cap, like station areas, zones that allow or encourage tall buildings (at least 85 feet), industrial zones, lots within 3,200 feet of an active refinery, certain shoreline areas, protected environmental areas, and older tax increment financing areas. Every covered city and county must also offer a simple process to ask for a waiver or reduction, and must weigh the project’s merits and added homes.

Permits protected and do overs allowed

Existing development permits issued under older mixed‑use or retail rules stay valid. After a city or county updates its rules to meet this law, applicants may withdraw and reapply under the new rules. If a lot got a permit within 18 months of the law’s start and is sold more than 18 months after, the buyer can file a new permit application.

No retail mandates for subsidized housing

Publicly subsidized affordable housing cannot be forced to include ground‑floor shops in commercial or mixed‑use zones. This ban also applies when using special permits or design departures. The rule covers projects that qualify for the state property tax exemption for affordable housing.

State rules apply after 18 months

Eighteen months after the law takes effect, state rules override any conflicting local rules if a city or county has not complied. Until they comply, those jurisdictions cannot require ground‑floor retail as a condition for housing, outside the listed exception areas. This ensures the new housing rules take effect even if local governments do not act.

Local checks and planning choices kept

The law does not force a city to issue a building permit if other federal, state, or local rules are not met. Cities can still set minimum housing densities in commercial or mixed‑use zones. They can allow ground‑floor space to support grocery access. Cities can wait to update growth and development assumptions until their next plan update after January 1, 2031.

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Sponsors & Cosponsors

Sponsor

  • Emily Alvarado

    Democratic • House

Cosponsors

  • Jessica Bateman

    Democratic • Senate

  • Marko Liias

    Democratic • Senate

  • Noel Frame

    Democratic • Senate

  • Sharon Shewmake

    Democratic • Senate

  • Steve Conway

    Democratic • Senate

  • T'wina Nobles

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 140 • No: 53

Senate vote • 3/10/2026

Final Passage as Amended by the House

Yes: 35 • No: 14

House vote • 3/5/2026

Final Passage as Amended by the House

Yes: 69 • No: 27 • Other: 2

Senate vote • 2/13/2026

3rd Reading & Final Passage

Yes: 36 • No: 12 • Other: 1

Actions Timeline

  1. Effective date 6/11/2026.

    3/27/2026Senate

  2. Chapter 236, 2026 Laws.

    3/27/2026Senate

  3. Governor signed.

    3/27/2026legislature

  4. Delivered to Governor.

    3/12/2026legislature

  5. Speaker signed.

    3/11/2026legislature

  6. President signed.

    3/11/2026legislature

  7. Passed final passage; yeas, 35; nays, 14; absent, 0; excused, 0.

    3/10/2026Senate

  8. Senate concurred in House amendments.

    3/10/2026House

  9. Rules suspended. Placed on Third Reading.

    3/5/2026Senate

  10. Committee amendment(s) adopted as amended.

    3/5/2026Senate

  11. Third reading, passed; yeas, 69; nays, 27; absent, 0; excused, 2.

    3/5/2026Senate

  12. Rules Committee relieved of further consideration. Placed on second reading.

    3/4/2026Senate

  13. Referred to Rules 2 Review.

    3/2/2026Senate

  14. APP - Executive action taken by committee.

    3/2/2026Senate

  15. Minority; without recommendation.

    3/2/2026Senate

  16. Minority; do not pass.

    3/2/2026Senate

  17. APP - Majority; do pass with amendment(s) but without amendment(s) by Local Government.

    3/2/2026Senate

  18. LG - Executive action taken by committee.

    2/25/2026Senate

  19. Referred to Appropriations.

    2/25/2026Senate

  20. Minority; without recommendation.

    2/25/2026Senate

  21. LG - Majority; do pass with amendment(s).

    2/25/2026Senate

  22. First reading, referred to Local Government.

    2/17/2026Senate

  23. Third reading, passed; yeas, 36; nays, 12; absent, 0; excused, 1.

    2/13/2026Senate

  24. Rules suspended. Placed on Third Reading.

    2/13/2026Senate

  25. Floor amendment(s) adopted.

    2/13/2026Senate

Bill Text

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