By Marc Stiles, Puget Sound Business Journal (subscription required)

The size of new houses on Mercer Island will be limited more than anywhere else in the region starting Nov. 1, when new restrictions that the city council approved on Tuesday take effect.

The council voted 5-1 to update the city's residential design standards and approved a new rule to protect mature trees.

The code update affects all of the 6,950 single-family lots on the island, which is a choice market for builders of new homes. The island's average household income of $183,200 is the Puget Sound region's second-highest behind Medina, according to Puget Sound Business Journal research.

New construction and remodeling projects can still be vested under the old code until the end of October, city spokesman Ross Freeman said.

After that, new homes won't be able to cover more than 40 percent of a lot, down from 45 percent. Maximum heights have been cut from 35 to 30 feet, and at least 30 percent of large trees must be kept when a lot under goes major construction. The rules also limit the amount of "hardscape" surfaces, such as decks and patios, to 9 percent of a lot.

Residents who pushed for the change raised concerns about how quickly the character of their neighborhoods have been changing, with old houses being replaced by larger ones.

While the city has been working on the update for about a year, critics say the city rolled out the new rules hither and yon, discussing different changes at different times. They were not discussed as a comprehensive package, according to the Master Builders Association of King and Snohomish Counties, which asked council members to slow down the process and consider their recommendations.

"This is a lose-lose. The (homebuilding industry) was not heard and the community's primary concerns were not addressed," David Hoffman, a government affairs staff member for the homebuilders, said after Tuesday's council vote.

People are still going to build big houses that will upset some neighbors, he said.

This year’s housing solutions breakfast highlighted local permitting changes to make home happen now. We’re thankful to have hosted Senator Mullet as our keynote speaker and a panel of local leaders including North Bend Mayor Rob McFarland,  Auburn Director of Community Development Jeff Tate, and Mill Creek Mayor Brian Holtzclaw, moderated by Snohomish County Executive Director Ken Klein.

The discussion focused on the important role a timely, predictable and fair permitting review process plays in our region’s ability to respond to the housing crisis. In recognition of its importance, on May 8, 2023 Governor Inslee signed into law  Senate Bill 5290 (sponsored by Sen. Mullet) aimed to reduce permit review timelines and facilitate swifter, more predictable construction. This new law will streamline the permit review process by requiring local governments to adopt and report timelines. To help jurisdictions comply, it also established grant programs and permit processing enhancements. This address historically slow permit processes that have elevated housing costs.

MBAKS is ready to serve as a resource with tools and best practices jurisdictions can implement now to comply with the new requirements.  The Housing Toolkit is intended to serve as a guide for local governments, listing specific code updates and process improvements jurisdictions can take to help provide more diverse, affordable housing. As an additional resource specific to SB 5290, MBAKS developed an overview of requirements and best practices to consider when implementing.

15 Years Green

Jason Lear is principal and co-owner (along with his wife, Holly Batt) of Batt + Lear, a 15-year-old Seattle construction firm, employing a diverse group of 25 employees. Batt + Lear builds and remodels structures to be highly energy efficient, simple, and functional and has won numerous green building awards over the years.

Joined MBA for the Health Insurance Trust

Batt + Lear joined the MBA in 2005, specifically for the MBA Health Trust. "Right from the beginning, it had been our dream to be the kind of company that people wanted to work for," says Jason. "Early on, we offered 20 days of paid time off plus health insurance. The MBA Health Trust was the only plan that would let us insure a minimum of just five employees. We also appreciated the ability to pick our own practitioners."

Staying Insured Through Downturns

Jason's company has made it a priority to maintain health insurance benefits, even through difficult financial periods. "Making it through 2008 was tough. We had to cut our 20-employee team by half. But we did have the good fortune to be vested in remodeling. After the financial crash, people couldn't sell or invest in new buildings, but there were a lot of remodel projects. So we got through. Now we're up to 25 employees and doing well."

Temporarily Lured Away

Jason tried another health insurance program for three years before coming back to the MBA Health Trust. "We were lured away by another insurance trust, which seemed less expensive. And it was cheaper initially because we had a group of young employees who never made claims. But when our employees actually started using the insurance, we were penalized, and our costs were hiked drastically by 45 percent. So we found our way back to the MBA Health Trust."

Modest Increases Are Easier to Plan For

All businesses have seen escalation of health insurance premiums the past couple of years, but Jason says the Trust is keeping them reasonable. "You assume rates are going to go up," he says. "We can handle single-digit increases. They are easier to plan for versus what you see outside of the Trust."

Regence BlueShield Is Very Versatile

Regence BlueShield, the Trust's insurer, provides Batt + Lear many care and provider options. "There is a lot of flexibility. Our staff can select the HSA plan or the preferred provider plan," says Jason. "Personally, for my family, I appreciate that Regence supports alternative care, things like massage, chiropractor, naturopathic doctors, etc." Jason says the plan is also well managed. "The administrators are great; they show us owners different plan options for getting the best coverage for the lowest price. And they present well-explained options to our employees and are always available for consultation."

Built Green

Batt + Lear are highly engaged with Built Green, the MBA's program for setting certification standards of excellence for construction that makes a significant impact on housing, health, and the environment. The program provides consumers with an easy-to-understand rating system that quantifies environmentally friendly building practices and gives builders the resources and support to build high-quality, desirable homes. "We were green builders right from the start," says Jason. "We wanted to be more public about it. So we started to certify projects as green. And now I'm on the executive committee of Built Green."

MBA GRIP Program Delivers L&I Refunds

Jason's firm also takes advantage of GRIP, the local safety incentive program for members of the MBA. GRIP provides Batt + Lear with a team of professionals dedicated to helping them reduce on-the-job injuries, manage workers' comp claims, lower L&I premiums, and maximize refunds. "It's a great, overlooked program that I wish we had known about earlier. We left a lot of money on the table. This is the third year we are getting refunds," Jason says.

The MBA Means Advocacy

The MBA has long been known for lobbying and government relations on behalf of its members and Jason is seeing the benefits directly in Seattle. "There's definitely a new focus from the MBA toward Seattle businesses like mine," he says. "The MBA advocacy groups are partnering with other influential groups to provide the Seattle City Council with a voice representing builders and green builders—which we very urgently need."