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Home My WebLink AboutERC Report-Docket 20-Group A-LUA25-000190-ECFDEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT ERC Report 2025 Docket 20, Group A ENVIRONMENTAL REVIEW COMMITTEE REPORT ERC MEETING DATE: July 14, 2025 Project Name: PR25-000002 2025 Docket 20, Group A Project Number: LUA25-000190, ECF Project Manager: Angelea Weihs, Associate Planner Owner: City of Renton Applicant: City of Renton Contact: Angelea Weihs, 425-430-7312 Project Location: All docket items are citywide. Project Summary: The applicant is requesting Environmental (SEPA) Review to review for the following non-project items: D-239 Co-Living – In 2024, the Washington State Legislature passed House Bill (HB) 1998, which aims to expand flexible housing options and streamline co-living development in urban areas. The bill requires jurisdictions to allow co-living housing on any lot within an urban growth area where at least six (6) multi-family units are allowed, including lots zoned for mixed-use development. The City of Renton is required to implement the new housing requirements by December 31, 2025. D-240 Incentivizing Small Businesses – City of Renton staff propose to exempt commercial buildings up to 4,000 gross square footage from impact fees, consistent with our current process for SEPA exemptions. Since these buildings do not require pre-application meetings, business owners often overlook impact fees, leading to unexpected costs at the time of building permit application for tenant improvements. To help support small businesses, staff recommend updating Renton Municipal Code to include this exemption. Exist. Bldg. Area SF: N/A Proposed New Bldg. Area (footprint): Proposed New Bldg. Area (gross): N/A N/A Site Area: N/A Total Building Area GSF: N/A STAFF RECOMMENDATION: Staff Recommends that the Environmental Review Committee issue a Determination of Non-Significance (DNS). PART ONE: PROJECT DESCRIPTION / BACKGROUND D-239 Co-Living – In 2024, the Washington Legislature enacted Engrossed 2nd Substitute House Bill 1998 (HB 1998), now codified in the Revised Code of Washington (RCW) 36.70A.535. This bill mandates that cities and counties subject to the Growth Management Act must adopt development regulations allowing co-living as a permitted use on any lot within an urban growth area that permits at least six (6) multi-family residential units, including those zoned for mixed-use development. The legislation also establishes standards related to unit City of Renton Department of Community & Economic Development Environmental Review Committee Report 2025 DOCKET 20, GROUP A LUA25-0000190, ECF Report of Monday, July 14, 2025 Page 2 of 3 ERC Report 2025 Docket 20, Group A size, parking, density, fees, and other development criteria. In response to these mandates, the City of Renton is required to amend Renton Municipal Code to implement the new housing regulation by December 31, 2025. The following summarized key revisions to Renton Municipal Code are proposed for compliance with HB 1998: • Zoning: Allow Co-living housing as a permitted use on any lot that permits at least six (6) multi-family units, without any additional restrictions compared to other multi-family uses in the same zone.  • Development Standards: Amend code, where necessary, to confirm that all standards and requirements for co-living housing are equivalent to, and not more restrictive than, those required for other multi-family housing types in the same zone. • Unit Standards: Amend code to exclude co-living housing from applicability of RMC 4-4-155, Attached Dwelling Units – Minimum Standards. • Mixed-Use: Amend code to ensure that co-living housing is subject to the same location and mixed-use zoning requirements as other multi-family housing types within the same zones, and to ensure that development standards do not impose additional conditions unique to co-living housing. • Parking: Revise parking requirements for Co-living housing as follows: o No off-street parking is required within a 0.5 mile walking distance (walkshed) of a major transit stop. o Outside of the walkshed, require up to 0.25 parking space per sleeping unit. • Affordable Housing Incentive Programs: Amend code to ensure co-living housing is eligible for all applicable affordable housing incentive programs provided by the city, including the Multi-Family Housing Property Tax Exemption program, Waived Fees program, and affordable housing density bonus. • Density: For density calculations, amend code to indicate that a co-living sleeping unit is equal to 0.25 of a dwelling unit. • Sewer Connection Fees: Review the sewer connection fee structure to verify that existing assessment methods do not conflict with HB 1998 requirements. D-240 Incentivizing Small Businesses – City of Renton staff propose amendments to Renton Municipal Code to exempt commercial buildings with up to 4,000 gross square footage from impact fees, as is currently done for Environmental (SEPA) Review process. Currently, buildings of this size are categorically exempt from SEPA, meaning a pre-application meeting is not required when there is a change of use or a new use (if the building has been vacant). Staff frequently observe that prospective business owners lease or purchase buildings, unaware that impact fees are required when applying for a building permit for tenant improvements. These unforeseen costs— sometimes amounting to thousands of dollars—can significantly disrupt small businesses, especially those in their startup phase or expanding to new locations. City of Renton Department of Community & Economic Development Environmental Review Committee Report 2025 DOCKET 20, GROUP A LUA25-0000190, ECF Report of Monday, July 14, 2025 Page 3 of 3 ERC Report 2025 Docket 20, Group A To foster economic growth and reduce barriers for small businesses, staff recommend amending Renton Municipal Code to include this exemption. By aligning impact fee exemptions with SEPA provisions, this proposed amendment will help reduce financial barriers for small businesses, simplify permitting requirements for small commercial spaces, and encourage activation of vacant commercial properties. PART TWO: ENVIRONMENTAL REVIEW In compliance with RCW 43.21C.240, the following environmental (SEPA) review addresses only those project impacts that are not adequately addressed under existing development standards and environmental regulations. A. Environmental Threshold Recommendation Based on analysis of probable impacts from the proposal, staff recommends that the Responsible Officials: Issue a DNS with a 14-day Appeal Period. B. Mitigation Measures None C. Exhibits None D. Environmental Impacts There are no environmental impacts that are anticipated to occur in conjunction with the proposal. E. Comments of Reviewing Departments The proposal has been circulated to City Department and Division Reviewers. Where applicable, their comments have been incorporated into the text of this report and/or “Advisory Notes to Applicant.”  Copies of all Review Comments are contained in the Official File and may be attached to this report. The Environmental Determination decision will become final if the decision is not appealed within the 14- day appeal period (RCW 43.21.C.075(3); WAC 197-11-680). Environmental Determination Appeal Process: Appeals of the environmental determination must be filed in writing together with the required fee to: Hearing Examiner, City of Renton, 1055 South Grady Way, Renton, WA 98057, on or before 5:00 p.m. on July 28, 2025. Appeals must be submitted electronically to the City Clerk at cityclerk@rentonwa.gov or delivered to City Hall 1st floor Lobby Hub Monday through Friday. The appeal fee, normally due at the time an appeal is submitted, will be collected at a future date if your appeal is submitted electronically. The appeal submitted in person may be paid on the first floor in our Finance Department. Appeals to the Hearing Examiner are governed by RMC 4-8-110 and additional information regarding the appeal process may be obtained from the City Clerk’s Office, cityclerk@rentonwa.gov.