Seattle Times columnist Jonathan Martin recently wrote a column advocating for adopting impact fees in Seattle, arguing that “growth doesn’t pay for growth.” That statement is simply not true. New development already generates other taxes and fees, such as the REET and sales taxes, which pay for transportation, infrastructure, and other priorities.

Our association is concerned about the effect of any added fee on housing costs, especially in light of our current housing affordability crisis. Housing affordability is a concern throughout our region and while the developer or builder initially pays the impact fee for new construction in jurisdictions that charge these fees, it is almost always added on to the sale price of the home. Any additional fees would likely be passed along to buyers or renters, further driving up home prices and rents at a time when housing costs are already skyrocketing. New homebuyers would be forced to pay for the fee with interest over the life of their mortgage.

The reality is that impact fees disproportionately affect new homebuyers, especially those at or below the median family income. The increasing use of impact fees and the costs that they add to development raises serious concerns about the effect of using impact fees to fund infrastructure will have on the affordability of housing.

Furthermore, impact fees are a one-time-only assessment and will never replace other fees/taxes in being a good, stable source of revenue. The city would be better served if a more stable type of user fee were used.

This week, Nick Harper steps in for Shannon and talks to Clay White, LDC Inc., about the recently passed SB 5254 and what it will do for the housing industry.

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Event part of MBAKS’ ongoing engagement on HB 1110 & HB 1337 implementation

MBAKS recently hosted a Middle Housing Forum focusing on state law changes now being implemented that could transform the housing landscape in our region and state.

The March 25 learn-at-lunch style event drew nearly 100 attendees. It was designed to help MBAKS members navigate the coming changes related to middle housing and accessory dwelling units (ADUs) following the adoption of HB 1110 and HB 1337 in 2023.

Panelists included Lilith Vespier, Infill Housing Manager with the Department of Commerce; Adam Weinstein, Director of Planning & Building for the City of Kirkland; and Ryan Gillis, Founder and CEO of Gillis Real Estate. 

In case you missed it, members can find a copy of the presenters’ PowerPoint slides on our Middle Housing & ADU Resources page, which is part of the Resource Library on MBAKS Connect.

Following panel presentations, attendees also heard brief updates from a handful of other city representatives in attendance from Bellevue, Bothell, Kent, and Lynnwood. Many cities in our two counties are in the process of updating local codes to comply with the new middle housing and ADU state laws. Local jurisdictions have until June 30, 2025 to update their codes.

The forum ended with audience Q&A time. During this open discussion, some members reiterated a point Ryan Gillis made during his presentation--the importance of flexibility in local codes so that builders can better respond to market demand. Another member stressed the importance of ensuring floor area ratios and building heights are properly set so that more project types are feasible to build. 

Members also expressed concerns about affordable housing fees that some jurisdictions are adopting alongside middle housing codes, as they will create unnecessary barriers to adding more housing choices.

MBAKS Executive Director Jerry Hall closed by sharing MBAKS’ overarching suggestion for cities implementing middle housing and ADU changes – “keep it simple.” The easier and more cost-effective it is to build middle housing, the more likely it is to be built, and the more attainable it will be for those looking for a place to call home.

Thanks to all who attended the Middle Housing Forum! To keep up with our advocacy work and changes related to middle housing and ADUs, MBAKS members are encouraged to engage with our Builders Councils.