CITY OF SEATTLE
ORDINANCE __________________
COUNCIL BILL __________________
title
AN ORDINANCE relating to land use and zoning; adopting temporary regulations to exempt housing projects that meet Mandatory Housing Affordability requirements using on-site performance units from Design Review, and allowing permit applicants for all housing subject to Full Design Review the option of complying with Design Review pursuant to Administrative Design review; temporarily suspending and allowing voluntary design review of proposed development in Titles 23 and 25 of the Seattle Municipal Code, consistent with Chapter 333, Laws of 2023; and amending Section 23.41.004 of the Seattle Municipal Code.
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WHEREAS, on October 18, 1993 the City Council adopted Ordinance 116909, establishing a Design Review program; and
WHEREAS, the City Council intended for the Design Review program to encourage better design and site planning to: help new development enhance the character of the City and sensitively fit into neighborhoods; provide flexibility in the application of development standards to meet the intent of the Land Use Code, City policy, neighborhood objectives, and mitigate the impacts of new development on neighborhoods; and promote and support communication and mutual understanding among applicants, neighborhood, the City, and the community of the future development early on and throughout the development review process; and
WHEREAS, Engrossed Substitute House Bill 1293 (Chapter 333, Laws of 2023) added new requirements for local design review programs starting June 30, 2025; and
WHEREAS, the Seattle Department of Construction and Inspections (SDCI) is working on permanent legislation to amend the Design Review Program to comply with Engrossed Substitute House Bill 1293 and to respond to the stakeholder and public engagement recommendations, including reducing design review requirements and design review permit review times to promote housing production and thereby reduce housing costs in a time of great need in the City and region; and
WEHREAS, SDCI is also working on updates to the Seattle Design Guidelines and Design Guidelines for Downtown Development to make project design and permitting simpler to promote housing production and reduce housing costs; and
WHEREAS, this proposed interim ordinance makes the Design Review Program voluntary for six months to give Seattle additional time to comply with Engrossed Substitute House Bill 1293; and
WHEREAS, by making the Design Review Program voluntary, the proposed ordinance will decrease permit review times to promote housing production and reduce housing costs at a time of great need in the City and region; and
WHEREAS, in July 2023, the City adopted temporary affordable housing Design Review regulations through Ordinance 126854, with an effective date of August 14, 2023, and an expiration date of August 14, 2025, to exempt housing projects that meet Mandatory Housing Affordability (MHA) requirements using on-site performance units from Design Review, adopting a work plan; and
WHEREAS, this proposed ordinance will reenact the temporary affordable housing Design Review regulations; and
WHEREAS, the Design Review exemption for projects that meet MHA requirements using onsite performance units resulted in a marked increase in the overall number of performance units. In 2023, prior to the MHA onsite exemption, a total of 119 MHA performance units were in service. From the adoption of the MHA onsite exemption through April of 2025, an additional 211 onsite performance units have been proposed. This Design Review exemption pilot has shown its potential to more than double MHA onsite performance units; and
WHEREAS, this proposed interim ordinance, in concert with a forthcoming permanent ordinance, seeks to mitigate displacement in the long-term by increasing housing production and reducing housing costs; and
WHEREAS, SDCI evaluated the environmental impact of the proposed ordinance, prepared a threshold determination under the State Environmental Policy Act, and sought public comment on the ordinance; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:
Section 1. Section 23.41.004 of the Seattle Municipal Code, last amended by Ordinance 127100, is amended as follows:
23.41.004 Applicability
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E. Temporary provisions
1. Developments with units provided on-site to comply with Chapter 23.58C through the performance option
a. A development proposal subject to design review under subsection 23.41.004.A that is complying with Chapter 23.58C solely through the performance option by providing affordable units on-site according to subsection 23.58C.050.C shall be exempt from design review if the applicant files a valid and complete building permit application electing the exemption while this ordinance is in effect.
b. A development proposal subject to design review under subsection 23.41.004.A that is complying with Chapter 23.58C solely through the performance option by providing affordable units on-site according to subsection 23.58C.050.C that is vested according to Section 23.76.026 prior to the effective date of this ordinance may elect to be processed as allowed by subsection 23.41.004.E.
c. The design review exemption under subsection 23.41.004.E.1 shall be rescinded for a development proposal that changes from the performance option to the payment option at any time prior to issuance of a building permit.
d. Requests for departures. If a project subject to design review under subsection 23.41.004.A is exempt from design review according to subsection 23.41.004.E.1, the Director may consider requests for departures from any development standard in this Title 23, except as otherwise limited in subsection 23.41.012.B.
e. Departures decision. Requests for departures according to subsection 23.41.004.E.1.d shall be evaluated and may be granted by the Director as a Type I decision if the departure would result in additional housing units being constructed.
2. Low-income housing
a. Notwithstanding any contrary provision of this Title 23, the Director may consider requests for departures from any development standard in this Title 23, except as otherwise limited in subsection 23.41.012.B, for low-income housing.
b. Departures decision. Requests for departures shall be evaluated by the Director, in consultation with the Office of Housing, in light of the particular population designed to be served by the project, and may be granted by the Director as a Type I decision if the departure would result in additional housing units being constructed.
3. The provisions of this subsection 23.41.004.E shall be in effect for six months from the effective date of this ordinance.
F. Interim suspension of required design review for all proposed development
1. Notwithstanding any contrary provision of this Title 23 and Title 25, including but not limited to Chapters 23.40, 23.41, 23.42, 23.45, 23.47A, 23.48, 23.49, 23.57, 23.58B, 23.58C, 23.60A, 23.61, 23.73, 23.76, 25.05, 25.11, 25.16. 25.20, and 25.22, required design review is temporarily suspended for all proposed development.
2. Applicants of proposed development that is being reviewed pursuant to the full, administrative, or streamlined design review process as of the effective date of this ordinance may elect to continue review under the design review process or withdraw the proposed development from the design review process. Applicants of all other proposed development may elect, at any time during the effective period of this ordinance, their proposed development be reviewed pursuant to the full, administrative, or streamlined design review process.
3. The provisions of this subsection 23.41.004.F shall be in effect for six months from the effective date of this ordinance.
Section 2. The interim regulations set forth in Section 1 of this ordinance shall be in effect for a period of six months from the effective date of this ordinance and shall automatically expire after the six month period unless the same is extended as provided by statute, or unless terminated sooner by the City Council.
Section 3. The City Council may renew these interim regulations for one or more six-month periods in accordance with RCW 36.70A.390.
Section 4. This ordinance shall take effect as provided by Seattle Municipal Code Sections 1.04.020 and 1.04.070.
Passed by the City Council the ________ day of _________________________, 2025, and signed by me in open session in authentication of its passage this ________ day of _________________________, 2025.
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President ____________ of the City Council
Approved / returned unsigned / vetoed this ____day of _______________, 2025.
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Bruce A. Harrell, Mayor
Filed by me this ________ day of _________________________, 2025.
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Scheereen Dedman, City Clerk
(Seal)