Yelm planning commission reviews draft housing element; staff says zoning must change to meet state allocation

At its May 20, 2025 meeting, the Yelm Planning Commission reviewed a draft housing element of the city comprehensive plan and was told by staff that recent state law requires Yelm to “plan for and accommodate housing affordable to all income levels.” Javier, a city staff member who presented the draft, said the regional housing allocation process found the city needs 5,170 additional housing units over the next 20 years.

The presentation matters because the Growth Management Act–related updates and recently passed state bills add new requirements and compliance steps. The draft housing element summarizes three required analyses: a housing allocation, a land‑capacity analysis and an anti‑displacement analysis. Javier said the land‑capacity work shows a deficit of 2,145 units under current zoning, and staff is working with the Thurston Regional Planning Council (TRPC) on a follow‑up analysis.

Staff described the anti‑displacement findings as serious for lower‑income households. The consultant Uncommon Bridges reported that physical displacement risk — from eviction, acquisition, rehabilitation, demolition or expiration of affordability covenants — is the most significant risk. Javier said roughly one‑third of Yelm households are cost‑burdened (spending more than 30% of income on housing) and that the analysis found a 0% vacancy rate for rental units affordable to low‑income residents.

Commission discussion covered tools and zoning changes that could increase capacity for missing housing types, including townhomes, duplexes, triplexes, low‑rise apartments, permanent supportive housing and accessory dwelling units (ADUs). Staff noted recent state legislation that affects local rules: House Bill 1220 adds the ‘‘plan for and accommodate’’ language and other housing element requirements; House Bill 1337 eases ADU rules. Javier summarized selected provisions discussed in the draft: allowing two ADUs per lot in zones that permit single‑family homes, limiting ADU setbacks so they are no more restrictive than the primary residence, capping impact fees for ADUs at 50% of the principal unit’s fee, and prohibiting conditioning ADU approval on street improvements.

Commissioners asked about specific housing types (manufactured housing, condominiums) and about the possibility of adjusting urban growth area boundaries or zoning at annexation. Staff said a UGA expansion is legally possible but requires demonstrating population need and service capacity; they also said TRPC had difficulty modeling capacity in the city’s master plan community zone and is helping refine that estimate.

Staff set a draft timeline: planners aim to have a draft ready for review by Oct. 30 to allow a 60‑day Department of Commerce review period, and they reported the city does not expect final adoption until December 2025. Staff requested written comments on the draft within one week before the next planning commission meeting.

"Plan for and accommodate housing affordable to all income levels," Javier said during the presentation, summarizing the statutory direction and the work the draft attempts to meet.

Next steps: staff will continue the TRPC follow‑up, incorporate commissioner feedback into the draft, and return the housing element for detailed review at a subsequent meeting. No formal vote or code adoption occurred at the May 20 meeting.