Council agrees to renew interim regulations on shelters and supportive housing as state law changes are implemented

Mercer Island City Council voted on July 15 to continue moving forward with a renewal of interim land-use regulations addressing emergency shelters, transitional housing and permanent supportive housing while staff completes permanent code amendments to align with state law.

Molly (staff presenter) and Director Jeff Thomas reviewed background on House Bill 1220, which requires cities to allow transitional, supportive and permanent supportive housing and indoor emergency shelters in all residential zones and in zones where hotels are allowed. Molly said interim regulations first adopted in 2022 were renewed several times, lapsed in 2024 and were reinstated and renewed in March 2025; they are set to expire again in October unless renewed.

She said the law also requires that local spacing and intensity rules be reasonable and not used to prevent siting of needed housing units, and that Commerce guidance (the “STEP Housing guidance” referenced by staff) addresses spacing and other compliance issues. Staff recommended renewing the interim regulations without change so there would be rules in place while permanent regulations are drafted.

Council voted to schedule Ordinance No. 25-15 for a second reading on Sept. 2, 2025, to continue the interim regulations. Jeff Thomas said the renewal will serve as a bridge while permanent code amendments are developed as part of the city’s larger code-update work.

No members of the public had signed up to speak during the public hearing on this item earlier in the meeting; the council closed the public hearing before the discussion.