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Commission hears introduction to state-required 'STEP' housing code updates
Summary
City staff introduced proposed development-code revisions to implement the comprehensive plan's housing policies and state law requiring allowance for emergency shelters, transitional housing and permanent supportive housing; no formal action taken.
Principal planner David Levitan and staff introduced a multi-part update to Lake Stevens’ development code to implement housing provisions in the 2024 comprehensive plan and to satisfy state requirements from the referenced legislation.
Levitan said the update responds to House Bill "12 20" (as cited in the meeting) and the Growth Management Act direction to adopt goals and policies and then create implementing code for certain housing types. He described the acronym "STEP" as shorthand used in staff materials: S for shelters (emergency shelters), T for transitional housing, E for emergency housing (indoor/longer-term than shelters), and P for permanent supportive housing.
Where STEP housing must be allowed: Levitan said state guidance prohibits excluding emergency shelters and emergency housing from zones that allow hotels; in Lake Stevens that generally corresponds to commercial zones, including the central business district and other commercial districts. Transitional housing and permanent supportive housing must be allowed in zones that permit residential or hotel uses, which staff said opens most residential and multifamily districts across the city.
Practical implications and limits: Commissioners asked how STEP designations would affect existing uses and whether public funding or city property would be required. Levitan said the city is not required by the law to make financial or property commitments; the update is intended to provide the regulatory capacity so such housing can be sited. "We are required to provide the capacity and the regulations to allow for the reasonable siting," Levitan said. He added that building permanent supportive housing commonly depends on partnerships with nonprofits, faith-based groups and other agencies because such projects are difficult to deliver at market rates.
Commission concerns and staff response: Commissioners pressed staff on what partnership commitments would look like and whether any STEP-type housing already exists in the city. Levitan said he was not aware of any uses that clearly meet the STEP definitions; some housing authority properties may include wraparound services but are generally treated as public housing rather than explicitly labeled permanent supportive housing. He also reiterated that state law prevents charging impact fees for emergency housing, a policy included in the adopted housing element.
Next steps: staff said they will develop specific development standards and reasonable regulations addressing health, safety and physical development that comply with state law, then return to the commission for feedback as the code is drafted. No formal motion or vote was taken on STEP housing at the March 5 meeting.
