Bellevue council narrows some middle-housing rules, approves $150,000 fee option and other tailoring ahead of state deadline

Bellevue'The Bellevue City Council on June 10 gave staff direction to finalize a locally tailored ordinance implementing the state'mandated middle-housing laws, approving several elements of the staff and planning commission recommendation while splitting on others. Council members moved the package toward adoption with one final ordinance expected to return for action June 24, ahead of the state's adoption deadline of June 30.

The council's study-session and public-comment portion ran for several hours and included more than 20 speakers, with advocates and homeowners sharply divided over scale, trees, traffic and property rights. The package implements requirements from House Bill 11 10 (middle housing) and House Bill 13 37 (accessory dwelling units), and adapts some elements beyond the state baseline to Bellevue'specific conditions.

Why it matters: The state bills require jurisdictions to allow more housing options in single-family neighborhoods; Bellevue's final decisions will shape how and where duplexes, triplexes, townhouses, cottages and ADUs can be built, the heights and sizes allowed, parking expectations, and whether developers may pay a fee instead of placing affordable units on site. The council'staff repeatedly noted the June 30 deadline for local adoption to avoid the state'model ordinance taking effect by default.

Key council directions and outcomes

Votes at a glance - Density near transit: Council directed staff to use the state baseline quarter-mile walking distance for automatic six-unit allowances (motion by Councilmember Newenhouse). Outcome: approved (motion passed 4'3). - Middle housing types: Council directed staff to allow all nine middle-housing types recommended by the planning commission (duplex through sixplex, stacked flats, townhouses, cottages, courtyard forms). Outcome: approved (motion by Councilmember Bhargava). - Dimensional standards (height): Council directed staff to adopt more modest height limits than the LUCA'draft, aligning closer to single-family scales (option selected: 32-foot flat / 35-foot pitched roof maximums for middle housing). Outcome: approved (motion by Councilmember Summa De Wiria). - Cottage housing scale: Council directed staff to limit cottages to a smaller scale option (24-foot maximum height and a 1,500-square-foot cap plus a 300-square-foot garage exemption). Outcome: approved (motion by Councilmember Neuhaus; final count reported 4'3 in favor). - Density near centers: Council directed staff to allow six-unit by-right where within a quarter-mile walking distance of Bellevue'identified centers (downtown and candidate countywide centers). Outcome: approved (motion by Councilmember Hamilton; vote 5'2). - Fee in lieu for required affordable units: Council directed staff to include a fee-in-lieu option equal to $150,000 per affordable unit (so a developer opting out of providing two affordable units for a six-unit project would pay $300,000). Outcome: approved (motion by Deputy Mayor Malakutian; vote 4'3). - Parking standard: The council considered adopting the state baseline (which ties parking requirements to lot size) but that motion failed (motion by Councilmember Newenhouse; vote 3'4). No alternative parking rule was finalized in this meeting. - ADU treatment: Council directed staff to treat detached ADUs (DADUs) as counting toward a lot's unit density while attached ADUs will not count toward density. Outcome: approved (motion moved from the dais).

What staff told the council Development Services Director Rebecca Horner and planners reviewed the state requirements and the planning commission'recommended LUCA (land use code amendment) and said the adopted environmental review (FEIS) examined a range of growth scenarios. "We are confident that the EIS captured any potential impacts from this project," Rebecca Horner told the council, while adding that site-by-site development review and permit conditions would still require developers to address utilities and other on-site impacts.

Senior planner Kirsten Mann summarized state baselines: "As a tier 1 city, we are required to permit up to four units by right citywide and up to six units within a quarter mile of a major transit stop, or up to six when two are affordable." Mann also noted HB 13 37 requires allowing up to two ADUs on single-family lots and sets minimum ADU size and height rules.

On the fee-in-lieu, Nick Whipple (code and policy) and others explained the reasoning behind the selected $150,000 figure: it was developed with input from ARCH and other regional housing partners as a figure that, in the commission's judgment, would be usable to leverage affordable housing in denser projects while remaining an option developers might accept on some sites.

Public comment highlights - Troy Schmiel, a local builder, urged the council to retain the Planning Commission's approach and keep cottage maximums and a low fee-in-lieu, saying, "If you roll back the proposed code, you're saying that all you want in Bellevue is more large mansions." - Jasmine Smith, director of local advocacy for FutureWise, urged the council to adopt the Planning Commission recommendation and to be "big and bold" to make room for more neighbors. - Dozens of other residents spoke for and against the proposal, raising concerns about property values, tree canopy loss, traffic, parking and neighborhood character.

Discussion notes and staff clarifications - Infrastructure and services: Staff emphasized that the FEIS considered broad impacts and found no significant adverse impacts to utilities, schools, police or fire at the program level, but individual projects must demonstrate adequate on-site utilities and may need upgrades or developer-funded improvements. - Property taxes: John Resha, Facilities and Asset Management, explained property-tax math: the city levies a fixed dollar levy and assessed values across jurisdictions and property types drive the mill rate. An increase in a single neighborhood's assessed values does not automatically translate to the same proportional jump in an individual homeowner's tax bill. - Covenants and private restrictions: Staff reminded residents that private covenants/CC&Rs may prohibit middle housing regardless of the city's code; staff said they will make that clear in materials to applicants.

Next steps Staff will draft the final LUCA language incorporating council direction and return it to the council for final action on June 24 so Bellevue can meet the June 30 deadline to avoid the state'model ordinance taking effect by default. The council asked staff to bring back details about implementation, additional preapproved cottage designs, and follow-up materials clarifying permit-level infrastructure triggers and how fee-in-lieu funds would be used.

Ending note The council's votes represent a mix of adopting the planning commission's recommendations and tightening scale and height in response to neighborhood concerns; the final ordinance will determine the precise rules property owners and developers must follow in the coming years.