Gig Harbor council approves ordinance to allow accessory dwelling units, 6-1

The Gig Harbor City Council on Monday, May 12, approved Ordinance 15-40 to amend Title 17 of the municipal code and allow accessory dwelling units in the city, passing the measure 6-1.

City staff said the ordinance updates multiple chapters of Title 17 to comply with state House Bill 1337 and to clarify local definitions and standards; supporters said ADUs will add housing options while critics warned the state-required fee reductions could strain the city’s general fund.

Senior planner Jeremy Hammer told the council the ordinance would amend civil-code chapters in Title 17 and add a new chapter to permit ADUs in compliance with House Bill 1337. “The definitions do not need to be identical to those in the RCW, but consistent with them,” Hammer said, and staff added clarifying language including an exclusion for related garage area in the maximum-unit-size standard.

Council members debated whether the city should incentivize keeping ADUs as long-term or affordable rentals. Council member Henderson asked whether the city could tie fee reductions to long-term rental commitments; Eric Baker, Community Development director, said incentives such as utility-rate reductions could be discussed but that any local incentive program would create administrative burdens. Baker also noted Department of Commerce guidance and monitoring practices are still being issued and that the city’s reporting cycle tied to its five-year housing report will provide more data through 2029.

Council member Wouk said she supports ADUs but warned of the financial trade-offs from state rules that reduce impact fees for ADUs by half. “I do have major concerns over the 50% of impact fees that are not collected and what that means to the city general fund,” Wouk said, adding that lower fee revenue could slow permit processing and strain staffing.

Council members also asked how ADUs would count toward the city’s housing needs. Staff said ADUs that are short-term rentals do not count toward required affordable-housing totals; Baker said, “No short-term vacation rentals count towards our affordable housing.” The council heard that the city received four new short-term rental applications last year and one this year.

After discussion, Council member Storstedt moved to approve Ordinance 15-40; Council member Rodenberg seconded. The motion passed 6-1. The council record does not list a roll-call breakdown by name in the transcript excerpt.

The ordinance implements state policy locally and establishes a framework the city will monitor; changing the allowance for ADUs to exclude short-term rentals would require a comprehensive-plan amendment and cannot be done until the next amendment cycle, at the earliest by year-end.