The House passed SB 6026 with two final amendments that maintained AWC’s and many engaged cities’ tenuous neutrality that previous amendments had achieved. Our expectation is that the Senate will concur and send the bill to the Governor for signature.

The final two amendments adopted by the House made the following changes to the bill:

• Includes employment overlay zones that prohibit residential uses and that were adopted prior to the effective date of the act as an industrial zone area, exempting those lots from the bill; and
• Requires cities to offer an administrative process for applicants to request a waiver of first-floor retail requirements. That process must include at least consideration of the benefits of additional housing units but can otherwise include any other factors as determined by the city. Cities who have a waiver process, legislative or administrative, in place before the effective date of the bill are not required to adopt a new process.

Cities have 18 months from the effective date of the bill to adopt ordinances to comply with the act. However, the bill clarifies that cities are not required to update their growth and development assumptions until their comprehensive plan update starting in 2031.

Commercial zoning bill passes Appropriations Committee

March 3, 2026

The House Appropriations Committee passed SB 6026 with one amendment but largely in good shape. Cities had been asking the committee not to make further amendments, and while one was adopted, the primary structure of the bill remains intact.

The amendment from Rep. Gerry Pollet (D–Seattle) states that the bill does not:

• Require or authorize a local government to invalidate or withdraw a development permit that was issued under regulations that imposed ground-floor commercial or mixed-use requirements as a condition of permitting the development of residential housing; or
• Prohibit an applicant from withdrawing an existing permit application and submitting a new one after the jurisdiction adopts or amends regulations in compliance with the provisions of the bill.

Further, the bill provides that if a lot subject to a development permit issued under such regulations within 18 months of the effective date of the act is sold more than 18 months after the effective date, the purchaser must be allowed to file a new development permit application.

Commercial zoning bill takes a helpful turn

March 2, 2026

The House Local Government Committee passed SB 6026 with a new, simpler approach that has moved many cities and AWC to neutral on the proposal.

The committee decided to remove many of the small carve-outs or exemptions to the restrictions on first-floor retail and replace them with a larger portion of commercially zoned areas, going up from 20% to 40%.

Cities may now apply first-floor commercial requirements in 40% of the total acreage in commercial or mixed-use zones. Those areas are calculated by first removing the following because these areas are exempted under the bill:

• Transit station areas;
• Areas within the city that allow—by right or through an incentive—building heights of at least 85 feet;
• Areas within industrial zones;
• Areas within 3,200 feet of an oil or gas refinery;
• Areas with airport or military base conflicts;
• Areas that would require the destruction of historic landmark buildings;
• Tax increment financing areas established prior to the effective date of the bill; and
• Shoreline buffers or critical areas.

The committee also extended the implementation timeline from 12 months to 18 months.

AWC is asking that the House Appropriations Committee pass the bill without further amendments. We will provide an update on the progress of the bill in Wednesday’s CityVoice newsletter.

Housing in commercial areas bill passes Senate in amended form

February 13, 2026

The Senate passed SB 6026 with two floor amendments in addition to changes adopted by the fiscal committee. Although some of the amendments are helpful, AWC remains opposed due to the impact, primarily, of losing first-floor retail authority. The bill takes a step backward in its recent changes.

The bill retains the substitute language passed out of the Housing Committee with the following changes:

• Clarifies that the bill does not apply to rural counties;
• Makes the exemption for commercial areas designated as a main street area under the Washington Main Street Program apply to the mixed-use or ground-floor commercial provisions of the bill rather than exempting those areas from the entire act;
• Clarifies that up to 20% of the commercially zoned area (rather than total area) within a local jurisdiction, minus any station areas, can require mixed use or ground-floor commercial;
• Removes the requirement that any amenity space required by local development standards for residential use be considered ground-floor commercial use;
• Removes the requirement that the city or county provide a height increase of 10 feet in at least 30% of the area;
• Authorizes a city or county to establish more than 20% percent of its commercially zoned area that is outside a station area require mixed use or ground-floor commercial, unless the project is publicly subsidized affordable housing, if they provide a height incentive to allow development up to 85 feet;
• Allows a city or county to balance the needs for housing with ground-floor commercial use based on an empirical study prepared by a credentialed expert and submitted to the Department of Commerce (once the city has adopted ordinances and development regulations to reflect, it is exempt from the provisions of Section 2(2) of the bill);  
• Exempts any portion of a lot that is in an industrial zone area or a tax increment financing area;
• Clarifies that any portion of a lot that is within any urban growth area that is not contiguous with a city is exempt;
• Provides that cities are not required to update their growth and development assumptions required under the GMA until their next comprehensive plan update required after January 1, 2031 (however, the bill’s requirements take effect one year after the bill’s effective date); and
• Clarifies that nothing in the bill will impede a local government's ability to ensure adequate access to grocery stores in a community.

Amended Senate version of housing in commercial zones bill doesn’t go far enough

February 6, 2026

The Governor-request bill that intends to allow housing in all commercial zones picked up changes as it passed out of committee, but the fundamental problem remains: a city’s need for economic development and a vibrant downtown that includes housing and businesses. Residents want that, too.

AWC continues to work with legislators on requested amendments to SB 6026 as the bill advances toward the fiscal committee cutoff. Here are the changes adopted in the policy committee:

• Cities may require ground-floor retail or mixed use in commercial zones under the following circumstances:
  1. The building or structure is listed in the state or national register of historic places at the bill’s effective date.
  2. The building or structure is in a business improvement area per chapter 35.87A RCW.
  3. Areas are within a station area unless the project is publicly subsidized affordable housing.
  4. A city may designate that up to 20% of areas outside of a station area require mixed use or ground-floor commercial; however:
     • The project cannot be publicly subsidized affordable housing.
     • Any amenity space required by the city for residential use must be considered commercial space (i.e., common areas, gyms, leasing offices, or similar facilities).
  5. For areas a city designates under #3 and #4 for ground-floor commercial or mixed use, the city must allow a height bonus of at least 10 feet in 30% of the area and cannot count it toward meeting FAR density ratios.
  6. The commercial area is part of a designated main street under the Washington Main Street Program.
• Cities may prohibit residential in commercial or mixed-use zones if any portion of a lot is:
  1. Adjacent to a shoreline environment; or
  2. In a critical area buffer.

Its companion bill, HB 2480, did not advance out of its policy committee in time to meet the cutoff.

Companion bill for housing in commercial zones will be heard

January 23, 2026

The House companion to the bill limiting first-floor retail authority and requiring residential housing in nearly all zones has been scheduled for a public hearing. The committee will hear the bill, HB 2480, as introduced, which is described below. The bill sponsor is Rep. Chipalo Street (D–Seattle).

Date to remember

HB 2480 is scheduled for a public hearing in the House Local Government Committee on Wednesday, January 28, at 8 am.

A short bill with significant consequences – requiring housing in commercial zones

January 9, 2026

Sometimes the most impactful bills aren’t very long. SB 6026, sponsored by Sen. Emily Alvarado (D–Seattle), prohibits cities over 30,000 in population from excluding residential uses in areas zoned for commercial or mixed-use, or from requiring first-floor retail. Cities must come into compliance with this requirement within one year, regardless of when their comprehensive plans are adopted.

AWC has already heard several significant concerns about this proposal beyond the very difficult turnaround time and potential upending of existing comprehensive plans that were based on different development patterns. Many cities have expressed concerns about long-term financial stability and how the elimination of ground-floor retail requirements may exacerbate existing challenges with retail space for small and community businesses.

AWC would greatly appreciate feedback and engagement from affected cities on this proposal.

Date to remember

SB 6026 is scheduled for a public hearing in the Senate Housing Committee on Friday, January 16, at 10:30 am.