House Bill 1110 Explained
What Seattle Homeowners Need to Know About Washington’s New Housing Law
Washington’s HB 1110 and Its Impact on Homeowners in Seattle
Seattle homeowners are experiencing a significant shift in local housing policy, thanks to Washington’s recently passed HB 1110. This legislation, often called the “Middle Housing” bill, is designed to address the state’s severe housing shortage by encouraging the development of more diverse housing types in traditionally single-family neighborhoods. With Seattle facing a persistent housing supply and affordability crisis, HB 1110 aims to offer solutions by opening the door for more “missing middle” housing options, such as duplexes, triplexes, and fourplexes. Here’s how the bill works and what it could mean for homeowners in Seattle.
What HB 1110 Entails
HB 1110 is focused on relaxing zoning restrictions in urban and suburban areas throughout Washington, including Seattle. The bill allows for:
Up to four units per lot in areas zoned for single-family residences.
Six units per lot near public transit, such as high-capacity bus stops and light rail stations.
This change overrides local zoning laws in these areas, enabling denser, multi-unit buildings where only single-family homes could previously be built. However, there is still much to work out at the city level before going into law on July 1, 2025.
The Rationale Behind E2SHB 1110
The bill’s primary goal is to increase housing availability and affordability, but it’s not explicit on how it will address each need. I think the idea that is if more housing is built, it will be cheaper. But, it doesn’t really work like that in Seattle. Housing is expensive here.
Seattle’s population has surged in recent years, but the supply of housing has struggled to keep pace. HB 1110 aims to provide more affordable and accessible options for renters and buyers alike by allowing denser housing in urban areas. These “missing middle” housing types also allow for gentler density increases than high-rise apartments or large developments, blending better with existing neighborhoods.
What does look like in Seattle? The rise of the DADU.
Density in many parts of Seattle has looked and felt like townhouses popping up where one older home used to reside. But now, we’re starting to see a new kind of construction. I call it the condominium movement, and here are the most common structures seen in today’s market:
Keep the existing home on the lot and build 2-3 detached additional dwelling units (DADUs) in the backyard.
Demolish the existing home and build a sexy larger home ($1.5+M) with an attached townhome (ADU - attached dwelling unit), plus a DADU in the backyard.
Here is a common design for a new construction condominium development in a previously single-family only zoned Seattle neighborhood. The original lot size was 7,500 SF.
All units are sold separately, but as part of a condominium association. They have deeded common interest in the walkways, driveways, and likely the water and sewer lines to the property, which means shared responsibility of maintenance and modifications. But, there’s more.
Any condo development with units that have shared walls will also be required to carry an insurance policy. Often, only the homeowners who share walls pay for this policy, but every condo association operates differently. There are sometimes rules for what types of vehicles can be parked in the driveway, or a limit on the number of days the property is allowed to be rented. It’s important to consult with a condo specialist when evaluating a newly established condo development. A step my buyers NEVER SKIP when we work together.
Check back in another week or so, I should have my “How to Buy a Condo” blog series up and running for ya.
Impact on Everyday Homeowners in Seattle
Increase in Property Value Potential
Homeowners may see the value of their properties increase as their lots can now support multi-unit dwellings. For those considering selling, this could mean a more appealing property for buyers interested in rental income or family co-housing. It may also increase the ability for current homeowners to add accessory units, like an additional duplex, to create rental income. Often, homes with severe deferred maintenance are sold to developers/builders for this type of development. Sellers have a lot more power than they used to with these types of homes. It’s important to work with a licensed realtor who’s NOT affiliated with the builder/buyer.
Investment Opportunities for Homeowners
With new zoning regulations, homeowners might have more freedom to convert their property into multiple units. For example, adding a triplex could allow them to rent out additional units, generating income while remaining in their primary residence. However, converting a single-family home into a multi-unit property requires substantial investment and renovation, so this may not be feasible for everyone. Development is for those with access to cash and/or investors, and a high risk tolerance. This type of investing isn’t for the faint of heart.
Changing Neighborhoods
While adding duplexes and triplexes will not transform Seattle’s neighborhoods overnight, the character of single-family neighborhoods is already shifting. For homeowners who prefer quieter, lower-density areas, this change can be challenging. However, supporters argue that the gradual increase in density can add vitality to neighborhoods, supporting more local businesses, services, and transportation options. What’s problematic is that this type of development isn’t very affordable, which will continue to further isolate middle and lower class families from homeownership.
Possible Tax Implications
As property values adjust to the new zoning potential, property taxes will rise. Increased valuations lead to higher tax assessments, particularly in neighborhoods close to transit hubs. This could impact homeowners who plan to hold their properties long-term. For those on fixed incomes, such as retirees, rising taxes could be a concern; however, state programs may offer tax relief options for qualifying residents.
Impact on Affordability and Accessibility
By increasing the stock of “missing middle” housing, HB 1110 aims to provide a more affordable range of options for residents. This may mean that neighborhoods previously inaccessible to many Seattleites become more affordable. For current homeowners, it could mean a richer, more diverse community of neighbors and an opportunity to support broader access to housing.
Considerations and Challenges
While the goals of HB 1110 are largely positive, some challenges will accompany its implementation. Increased density can lead to demands on infrastructure, including roads, public services, and schools. The City of Seattle doesn’t have the best reputation in many of these areas, it will be interesting to see how they the manage the continued population growth.
HB 1110 will go into effect on July 1, 2025. From that date, cities across Washington, including Seattle, will need to begin implementing the zoning changes mandated by the law. Is this enough time for local governments to prepare for the adjustments in land use and to develop guidelines for how property owners can build and convert multi-unit housing in formerly single-family zones? Probably not.
I know from experience that many title companies are still learning how to navigate these changes. In fact, I had a client last summer who ran into a roadblock with a restrictive covenant recorded in the 1940’s restricting multiple dwellings per parcel. The title company would not insure over this covenant, which left the builder exposed to future limitations on the property. I have a feeling legislation will find a way to eliminate these types of covenants in the future, but for now, there continue to be many gray areas to address.
Moving Forward
For Seattle homeowners, HB 1110 represents both opportunities and adjustments. Whether you’re looking to invest in property, consider future development options, or simply enjoy Seattle’s evolving neighborhoods, it’s essential to understand this bill’s potential impact. As we move into this new chapter in Washington’s housing policy, everyday homeowners can play a part in shaping Seattle’s future as a more inclusive, diverse, and vibrant city. Density isn’t all bad.
Are you interested in learning how HB 1110 might specifically impact your property? Let’s grab a coffee and chat more about your specific needs.