Washington’s new “Housing in Commercial and Mixed-Use Zones” law, SB 6026, creates new opportunities to redevelop underused commercial and mixed-use properties for housing. Effective June 11, 2026, the law limits certain cities and counties from excluding residential uses in these areas, potentially providing new options for repositioning underperforming commercial properties.
However, zoning is only part of the analysis. Statutory exceptions, permitting requirements, and private restrictions such as reciprocal easement agreements (REAs) and covenants, conditions, and restrictions (CC&Rs) may still limit redevelopment, making early diligence important when evaluating a project’s feasibility.
Key takeaways:
- Understand where SB 6026 applies and the exceptions that may continue to restrict residential development.
- Consider the law’s limits on ground-floor retail or commercial requirements and its process for reducing or waiving those requirements.
- Review title reports, REAs, CC&Rs, and other recorded agreements early to identify private restrictions that could affect redevelopment.
- Evaluate applicable public and private restrictions before committing significant time and resources to a redevelopment opportunity.
Read the full article for additional insights into how SB 6026 may expand housing opportunities for underused commercial properties, as well as considerations owners and developers should evaluate before pursuing redevelopment.
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