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Lacey adopts co‑living housing rules to comply with state law
Summary
The City Council unanimously adopted Ordinance 1697 on March 3 to add co‑living housing regulations to the municipal code, implementing RCW 36.70A.535 and clarifying local zoning, parking caps and program eligibility.
City staff presented Ordinance 1697 to formally regulate co‑living housing in Lacey, explaining the state statute (Engrossed Substitute House Bill 1998, codified at RCW 36.70A.535) requires cities planning under the Growth Management Act to allow co‑living where multifamily housing is permitted and establishes local guardrails.
Staff described co‑living as private lockable sleeping units with shared kitchens and common areas. The ordinance implements statutory guardrails including density calculation (count sleeping units as one quarter of a dwelling unit), parking caps at 0.25 spaces per unit, and eligibility to participate in affordable housing programs.
Council discussed outreach and messaging; Deputy Mayor asked about public awareness and staff said an informational flyer and website updates would be used. Council members asked whether homeowners associations could block co‑living; staff and the city attorney said HOA covenants are private and the city cannot enforce or override HOA restrictions — the municipal code governs what the city permits but an HOA may privately enforce more restrictive covenants.
After brief discussion, the council moved, seconded and unanimously adopted Ordinance 1697 to comply with state law and reinstate local regulatory authority over co‑living housing.
