Ellensburg council approves first reading of land development code changes to implement middle housing and ADU rules

Ellensburg City Council on Jan. 6 approved land development code amendments and conducted first reading of Ordinance 4953, a package of changes aimed at implementing state middle-housing requirements and House Bill 1337 standards for accessory dwelling units (ADUs).

The amendments update several chapters of Title 15 — including definitions, subdivisions, density bonus incentives, housing-type standards and off-street parking — to align the city code with the state law and the city's 2021 Housing Action Plan, Community Development Director Dan Carlson told the council at the public hearing.

Carlson said the ordinance package addresses three main topics: middle housing and ADU standards coming from the Housing Action Plan and state law (House Bill 1337); a new allowance for extensions to approved preliminary plats and binding site plans (up to two one-year extensions); and miscellaneous code cleanup, such as removing references to a transfer-of-development-rights program the city does not operate.

Key changes described by staff include a requirement tied to HB 1337 that generally prevents local code from imposing ADU standards that are more restrictive than those for principal units; removal of a minimum ADU square-foot requirement; elimination of a prior rule limiting ADU size to the smaller of 40% of the primary dwelling or 1,000 square feet; and the prohibition on using on-site minimum parking standards for certain ADUs where state law applies. Carlson said the city will still be able to adopt locally stricter approaches in areas not covered by the state definitions (for example, by identifying high-frequency transit stops in the future).

The amendments also add a density bonus path that allows up to a 100% increase in density for projects that set aside at least 20% of units at 60% area median income (AMI) or below; the planning commission requested clarifying language and examples for that section, and staff incorporated those clarifications before the hearing, Carlson said. On plats, the ordinance would permit up to two additional one-year extensions to preliminary plat approvals in cases where applicants can show they are actively working toward final platting.

One public commenter, Klaus Holzer, owner of Aspen Circle Apartments, urged adoption, saying current parking ratios limit infill higher-density redevelopment on centrally located parcels and that the proposed changes would allow the Aspen Circle site to accommodate about 41 additional one- and two-bedroom/studio units. The council received three written comments on the docket, Carlson said, including support from local builder Matt Stalder and a submittal from Inversion Design Build.

Council members asked staff clarifying questions during deliberations. One council member asked whether any Ellensburg transit stops qualify as “major transit stops” under the state ADU rules; staff said they did not have the frequency thresholds on hand and would follow up. Staff also reported that park impact fees are already below the 50% threshold referenced in state guidance but that traffic impact fees are approximately 56% of the principal-unit amount and would require a follow-up amendment in Title 14; the city has until June 30, 2026 to align the fee schedules with state changes. On vesting, staff confirmed that applications are reviewed under the regulations in effect when the application was submitted, though applicants could possibly opt in to new standards if proposed rules would be more permissive.

After discussion, the council voted to approve the proposed code amendments and conduct first reading of Ordinance 4953. The motion passed with all council members present voting in favor.

Ordinance 4953, as read into the record, amends the City of Ellensburg Land Development Code, chapters 15.130, 15.260, 15.330, 15.540 and 15.550.

Council action on first reading means the ordinance will return for a subsequent reading and final action at a later meeting unless otherwise directed; staff will bring any required fee code updates and follow-up clarifications back to council as needed.