Woodinville council adopts interim inclusionary zoning requiring 10% affordable units in downtown

Woodinville — The City Council on May 6 adopted Ordinance No. 786, an interim inclusionary zoning rule that requires developments of 10 or more dwelling units in the Central Business District to make 10% of units income‑restricted to households at 80% of area median income (AMI).

City planning staff presented the ordinance as a temporary measure, saying the interim regulations are authorized by state procedures and would last six months, with the option to extend up to 12 months while the city completes a feasibility study and develops permanent regulations. City staff said an affordable‑housing agreement would be recorded against affected properties to preserve income restrictions for the required term.

The policy drew public comment from residents who urged deeper affordability. Kevin Stadler, who lives inside the city limits, told the council he supports affordable housing measures but questioned whether owner‑occupied units could be sold at 80% AMI in local market conditions. "The only way you can get there at 80% AMI is if you have a public‑private partnership," Stadler said, arguing ownership at that level is not feasible without subsidies.

Alison Farmer, a resident outside city limits, urged council to require 20% affordability and to delay adoption until the city completes a citywide affordability feasibility study and holds hearings on a proposed GB rezone. "If you don't start high, you will have nothing to give," Farmer said.

Council members debated whether the interim requirement should be deeper than 80% AMI. Council member Bess Campbell moved an amendment to set 10% at 75% AMI; the amendment failed on a 3–4 roll‑call vote. Council members supporting the original 10% at 80% AMI cited the Multifamily Tax Exemption (MFTE) program as a way to achieve deeper affordability where developers seek incentives. Council member Evans noted regional examples where overly stringent thresholds led to canceled projects and urged caution.

After discussion, the council voted unanimously to pass first reading, waive second reading and adopt the ordinance as proposed. The interim code will apply to by‑right development in the CBD and can be renewed with additional hearings and findings if needed. Staff said the interim measure is intended to ensure some affordability is captured while the city completes a technical feasibility study to inform permanent policy.

The council directed staff to return with the feasibility study results and emphasized that the ordinance is an interim, test‑drive tool rather than a permanent solution. The city manager and planning staff said they will coordinate with the planning commission and report back during the periodic Growth Management Act review cycle.

What's next: The ordinance is effective as an interim regulation; staff will begin the feasibility study and work with the planning commission on permanent inclusionary zoning regulations.