Lacey staff outline draft middle-housing ordinance, discuss height choices and incentives

Jennifer, a staff member leading the middle-housing effort, updated the Planning Commission on June 11 on the city's work to develop a local ordinance to comply with House Bill 1110 and related state guidance.

The city received a $75,000 grant from the Washington State Department of Commerce to support administrative work for middle housing. Jennifer said three early deliverables for the grant were completed and that the last deliverable – worth $27,500 – remains; the grant period is ending in June. The draft ordinance in the commission packet creates a standalone middle‑housing chapter and a separate unit‑lot subdivision chapter; staff said the structure centralizes standards for duplexes, triplexes, townhouses, stacked flats, cottage housing and other middle‑housing types the state identifies.

"For us, that meant the maximum amount was $75,000," Jennifer said of the Commerce grant, adding the final grant deliverable focuses on detailed code language and public engagement. She said the state requires jurisdictions to allow six of nine middle‑housing types and that Lacey's existing code already allows duplexes, triplexes, townhouses and cottage housing in many residential zones.

The commission spent significant time on height and form. Commerce model materials often use a 35‑foot maximum to enable three stories in some designs, while Lacey's current low‑density height limit is 25 feet (with an allowance to reach higher where certain pitched‑roof measurements apply), the historic‑neighborhood district is 35 feet, and moderate density is 40 feet. Staff outlined options: leave existing height limits in place; adopt a flat 35‑foot cap for middle housing; or adopt a base (lower) height with a bonus system to earn additional height for design or environmental priorities.

Commissioners raised concerns. One commissioner emphasized parking conflicts and neighborhood compatibility, saying frequent on‑street parking disputes have accompanied denser infill in other cities. Another suggested any incentives should reward land- and tree‑preservation rather than purely decorative architectural items. Several commissioners said they preferred retaining the lower pitched‑roof limitation in low‑density areas to avoid three‑story infill that could feel out of scale.

Jennifer said moderate‑density zones already allow between 8 and 16 units per acre and are the likely place for three‑story townhomes and stacked‑flat designs; those forms would remain viable in moderate density even under a conservative low‑density approach.

Staff told the commission they plan public outreach in July, continue cross‑departmental review (including public works on infrastructure and stormwater capacity), refine the draft, and return to the commission and ultimately the City Council. Jennifer said a target adoption timeframe for a citywide middle‑housing ordinance is June 2026.