Council and Planning Commission debate middle‑housing code changes, inclusionary options and parking rules required by state law

Kirkland’s Planning Commission and staff presented a consolidated set of zoning amendments on June 3 intended to implement new state middle‑housing laws and related accessory dwelling unit (ADU) and parking requirements. The package includes amendments to conform to HB 1110 (middle housing density), HB 1337 (ADU flexibility), SB 6015 (residential parking rules), HB 1293 (design review constraints for middle housing) and connected local changes needed for administration.

Staff emphasized the package’s intent: to meet minimum state compliance while preserving the city’s Comprehensive Plan and to create administrative clarity across multiple code sections. The amendments address terminology, fire‑access standards, floor‑area/conflict clarifications, and unit‑lot subdivision text anticipated in a related follow‑up package. The Planning Commission recommended several specific refinements and added a recommendation on an inclusionary housing approach (a graduated per‑square‑foot charge above a threshold and an exemption for smaller units) that differs from the staff’s initial recommendation.

Key policy debates raised in council discussion - Parking: Senate Bill 5184 establishes new reduced parking standards for many residential types. Staff and the Planning Commission debated whether to apply SB 5184’s lower parking minima to middle‑housing (chapter 113) now or wait and apply changes more broadly in phase 2 (the city’s later code optimization). Staff showed field observations that developers often build more parking than minimums require for cottage/missing‑middle products; Council members asked whether early application will create unintended on‑street parking or enforcement needs and whether case‑by‑case parking studies should be allowed as an exception (staff noted an amendment seeking state‐level exceptions did not pass). The Planning Commission recommended applying SB 5184 standards to middle housing now, which several councilmembers found acceptable but asked staff to track impacts and return with adjustments if needed. - Inclusionary zoning / affordable housing: State law allows cities to require affordable units or payment in lieu when the city creates new development capacity. The council was briefed on multiple options: staff’s “option 2” (a 10% set‑aside at an affordability target), Planning Commission’s graduated approach (exemption for units up to a size threshold and a per‑square‑foot in‑lieu charge above that threshold), and the option to defer any inclusionary requirement to phase 2. Planning Commission recommended a graduated, proportional fee that softens the step change between slightly larger family homes and large “luxury” homes; staff presented sample comparators (Redmond, Sammamish), showing other Eastside cities had adopted higher per‑square‑foot fees. Council asked for more analysis of proportionality and the risk of discouraging housing production. Several councilmembers supported a hybrid “bookmark” approach proposed by the city manager — adopt a requirement now but allow recalibration before it becomes effective and reserve the right to refine requirements in phase 2 — which would preserve the city’s authority to require inclusionary housing for the capacity being added now while allowing further study.

Public comments and commission input: The Planning Commission discussed the package at length and recommended adoption of an affordable housing requirement with the graduated exemption; it also urged caution on changes that would raise parking requirements in some places. A range of public comments were recorded — from developers’ concerns about proportionality and legality of fees to housing advocates urging the city to adopt a mandatory inclusionary mechanism — and staff incorporated a public comment summary into the record.

Schedule and next steps: Staff will return to council on June 17 with ordinance language for adoption. The city manager’s recommended compromise (“option 3”) would adopt an inclusionary requirement now but set a January 1, 2027 effective date and explicitly reserve the council’s right to revise the methodology (including thresholds and the payment‑in‑lieu calculation) before that effective date. Phase 2 (middle housing optimization and additional affordability incentives) is scheduled for 2026 workplan and will provide the opportunity for additional calibration.

Why this matters: The amendments implement state law changes that materially affect allowable housing types, parking policy and ADU rules across every residential zone in Kirkland. Adoption determines whether new capacity added under state law will also carry an affordable‑housing requirement and how parking minima will be applied for middle‑housing products. Councilmembers repeatedly asked for a time‑bound review so the city can adjust inclusionary calculations and parking policy with programmatic analysis and outreach.

Ending: Council directed staff to return on June 17 with ordinance language, and several councilmembers asked that staff include a clear review timeline and the analysis needed to revisit thresholds, enforcement impacts and the fee methodology before any in‑lieu fees go live.