The Monroe City Council voted on May 20 to approve first reading of an ordinance implementing House Bill 1042, which removes certain local barriers to converting existing commercial or mixed-use buildings to residential uses.

Staff presented background and required code changes. William Barr told council that HB 1042 defines an "existing building" as one completed at least three years earlier and directs cities to allow a 50% greater residential density when a conversion takes place entirely within an existing commercial or mixed-use building. The law also prohibits local governments from imposing certain additional requirements on these conversions: cities may not require additional parking for the converted area, cannot impose extra exterior-design standards for the converted portion (except along a designated major pedestrian corridor), cannot require additional transportation studies or SEPA review for conversions beyond what would be required for a new building in the same location, and cannot deny conversions based solely on existing nonconformities (for example, setbacks that predate current code).

Why it matters: enabling interior conversions of underused commercial buildings is intended to increase housing supply while reducing sprawl by reusing existing built stock. Monroe staff identified several local older buildings that could be candidates and estimated limited local uptake based on comparable-sized cities, but noted conversion costs (insulation, windows, mechanicals, structural or seismic upgrades) may be significant for property owners.

Council action

- Councilmember Beaumont moved, and Councilmember Walker seconded, approval of the ordinance for first reading. The motion passed 7-0. The ordinance language will return for second reading and adoption on June 10 so the city meets state implementation timelines.

Notable points from staff presentation and public comment

- HB 1042 requires cities to allow a 50% increase in density for conversions done entirely within existing commercial buildings (example: a building that could support 10 units may be allowed 15 via internal conversion).

- The law limits local ability to add parking, design, or environmental review requirements for the converted areas, though cities may require existing on-site parking be retained.

- Staff noted potential high upgrade costs for a conversion (energy upgrades, mechanicals, possible seismic work). Staff also cited outside examples: Seattle projects expect about a dozen such conversions in seven years, Bellevue fewer than five; for Monroe staff estimated the city might see fewer than one over seven years, but stressed uncertainty.

- Public comment: Stacy McGregor (resident) asked council to consider allowing two-unit conversions for some historic single-family homes rather than a three-unit minimum in specific neighborhood commercial zones; staff acknowledged the concern and will continue review as code changes progress.

Next steps

- Second reading and potential adoption scheduled for June 10, 2025. If approved, the new local code amendments will align Monroe with state law requirements on conversions.

Speakers

- William Barr, Staff member (presenter)
- Stacy McGregor, Resident (public comment)

Authorities

- House Bill 1042 (use of existing buildings for residential purposes), passed 07/23/2023
- Monroe Municipal Code chapters proposed for amendment (22.22, 22.26, 22.42, 22.44, 22.78) as listed in the ordinance title presented at first reading

Provenance

- Topic introduced during the public hearing and first reading at the May 20 meeting; the ordinance passed first reading (7-0) and will return for second reading on June 10.

Tags: HB1042, conversion, commercial-to-residential, Monroe City