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Olympia adopts state-mandated "missing middle" housing code changes to allow more small-scale infill

Olympia City Council · November 19, 2025
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Summary

Council approved a package of code amendments to implement Washington’s middle-housing requirements, expanding accessory dwelling unit rules, allowing up to four units per lot (six near frequent transit or with affordability), and enabling unit-lot subdivisions to encourage ownership.

The Olympia City Council voted to adopt a set of code amendments Tuesday to implement the state’s middle-housing laws and to update local rules that govern accessory dwelling units (ADUs), co‑living housing and unit-lot subdivisions.

“Most of the revisions are required to implement changes in state law,” said Joyce Phillips, the city’s long-range planning manager, noting the ordinance was written to meet Tier 1 unit-lot density using the city and urban-growth-area population projections. The code will allow up to four dwelling units per lot generally and up to six on lots within a half-mile of frequent transit routes or where at least two units will be preserved as long-term affordable housing for 50 years.

The ordinance also updates ADU rules to meet state minimums (raising the allowed ADU size where required), requires a paved, well-lit path to ADU entrances, and clarifies how co-living housing (single-room-occupancy/co-living) may be sited and permitted. Unit-lot subdivisions — which allow separate ownership of individual units when the parent-parcel standards are met — were added to promote homeownership of small-unit developments.

Council members and planning commissioners discussed several local policy choices embedded in the draft: using locally defined frequent transit routes (and a half-mile radius) rather than the state’s major-transit-stop definition, counting ADUs toward unit-lot density, and modest changes to height and setback rules in lower-density zones. Several council members praised the planning staff’s outreach and recommended standards.

The ordinance passed by voice vote. Staff said final implementation will respect other site constraints (easements, critical-area buffers, tree preservation) and that permits will be issued only when developers demonstrate compliance with building, fire, engineering and zoning standards.