New state laws require Chelan to update housing and development rules

CHELAN — Chelan will need to revise portions of its municipal development code to comply with a dozen state housing and land-use laws passed since 2021, including several that already override existing city regulations.

The changes are not being initiated by the city. They are required by state legislation addressing housing, parking, property divisions, design standards and other development regulations.

Community Development Director John Ajax outlined the requirements during the Oct. 27 Chelan City Council meeting, explaining that some state laws have taken effect before Chelan could formally update its municipal code.

Five of the 12 laws are already in effect, meaning city staff must apply the state requirements when reviewing development applications, even where the city's written regulations say otherwise.

The affected provisions include household occupancy limits, residential parking configurations, adding housing units within existing buildings, exterior building materials and housing density allowances for religious organizations.

In those cases, the state requirements take precedence. Staff are applying them directly during permit reviews and documenting the applicable laws in each permit file.

The remaining work is to bring Chelan's written regulations into agreement with requirements already established by the Legislature.

One of the largest changes will involve the city's downtown design standards.

Under state legislation requiring objective design review, Chelan must replace subjective requirements, including terms such as "compatible" and "as determined by the director," with measurable standards that can be applied consistently.

Rather than allowing decisions based on broad interpretations of a proposed building's appearance, the revised regulations must establish criteria that applicants and reviewers can evaluate objectively.

The change does not necessarily eliminate downtown design requirements, but it will change how those requirements are written and enforced. The city's presentation identifies the downtown design chapter as its most substantial anticipated rewrite.

Other state-mandated updates address supportive and transitional housing, child care centers, permit processing and procedures for dividing property into smaller lots.

Several of those amendments must be adopted alongside Chelan's comprehensive plan update, which has an approved completion deadline of June 30, 2027. Other provisions carry separate deadlines later in the year.

Ajax explained that the normal planning process generally begins with a comprehensive plan update, followed by revisions to zoning and development regulations.

The new legislation has complicated that sequence because some requirements must already be followed, regardless of whether the city's comprehensive plan and municipal code have been updated.

The city has previously adopted regulations allowing two accessory dwelling units per lot, as well as provisions addressing co-living housing and unit lot subdivisions. However, more recent legislation will require additional changes to the subdivision rules.

City staff plan to prepare the remaining amendments for consideration alongside the comprehensive plan, with Planning Commission review, public hearings and council approval.

If an amendment cannot be completed by the applicable deadline, the city could adopt a temporary interim regulation to maintain compliance until permanent rules are approved. Such a measure would also require a public hearing.

Ajax emphasized that compliance with the state laws is not optional. The city's responsibility is to update its local regulations to reflect requirements established in Olympia.

Council received the presentation as an informational briefing and took no action Oct. 27. Individual code amendments will return for consideration as the comprehensive plan process continues.

Andrew Simpson: 509-433-7626 or andrew@ward.media