According to bill testimony, the stated intent of HB 1757 is to amend the 2023 law to make commercial to residential building conversion more cost-effective.

To do that, the Senate body adopted the amendments passed in committee that do the following:

• The allowances for existing buildings to be used for residential purposes in commercial and mixed-use zones are extended to residential zones.
• A city may not require a change of use permit for the conversion of an existing building to residential purposes.
• In addition to unchanged portions of an existing building used for residential purposes, cities may not require unchanged portions of an existing building that have been used for previously permit-approved conditioned space purposes to meet the State Energy Code solely because of the addition of new dwelling units within the building.
• When any other existing building is converted to new dwelling units, changed portions of each of those new units must meet State Energy Code requirements except in a few exceptions.
• Cities must comply with the no later than June 30, 2026.

If the House agrees with the changes, the bill is off to the Governor’s desk to be signed into law.

Commercial to residential conversions law faces changes

February 21, 2025

In yet another example of law that has not gone into effect in any jurisdictions but is being amended, the Legislature aims to change the session law that allowed conversions of commercial buildings to residential uses passed in 2023.

HB 1757, sponsored by Rep. Amy Walen (D–Kirkland), has passed out of committee and awaits a vote by all members of the House. The bill proposes the following changes:

• Cities must amend their codes to comply with the statute by June 30, 2026, instead of six months after their next periodic comprehensive plan update deadline.
• Expands the scope to allow conversion in residential zones, in addition to commercial and mixed-use zones.
• Cities are prohibited from requiring a change of use permit for projects that propose to convert a commercial space to a residential. We have concerns about this prohibition as this is a fundamental planning department requirement to ensure building codes address the changes for safe use of the building—for example sleeping and cooking in what used to be a retail space.
• Provides exceptions where the current energy code would not apply to new dwelling units:
  • The new unit does not exceed 2,500sq ft or 25% of the building, whichever is greater;
  • The units’ energy use intensity is less than or equal to the clean building performance standard target; or
  • For residential zones, the unit is within an existing home or accessory building.

Please let us know if your city has concerns with these proposed amendments to current law.