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Senate Bill 5749, sponsored by Sen. Jeff Wilson, R-Longview, makes it easier for cities to authorize new housing conversions in disused shopping malls, grocery stores, department stores and other commercial properties.
The bill allows developers to utilize existing permits and infrastructure, without first requiring cities to update their comprehensive plans.
“Every city these days seems to have abandoned shopping malls, big-box stores and other commercial properties that are ripe for redevelopment,” Wilson said. “These underutilized properties offer an opportunity to help meet the demand for new housing. This bill allows cities to move quickly to replace commercial blight with much-needed housing.”
The bill allows cities to declare “housing development opportunity zones” in areas of large commercial development, encompassing both structures and parking lots. They would not have to wait for once-a-decade comprehensive plan updates before authorizing residential developments in areas zoned for commercial use.
Cities also would be allowed to waive impact fees associated with new developments in the opportunity zones.
As shopping patterns change and malls across the country go dark, housing conversions have become a small but growing trend. According to Forbes.com, 192 malls nationwide have announced plans to incorporate housing in their spaces.
The projects put ailing commercial properties back onto the tax rolls at the same time they help relieve pressure for new housing, Wilson said.
“We are starting to see news reports about successful redevelopments elsewhere,” Wilson said. “We should harness that energy and put it to work here in Washington state.”
The state Department of Commerce estimated two years ago that Washington will need 1 million new housing units over the next two decades to meet the needs of a growing population.
The bill passed the Senate 47-2 and has been sent to the House for consideration.
