How Olympia’s current draft of Middle Housing Code Amendments affects our neighborhood

Submitted by Lorie Hewitt, SCNA At-Large Member

For some time now, the South Capitol Neighborhood Association (SCNA) Board has been following the City of Olympia’s drafting of housing code amendments to address Middle Housing. In accordance with new state legislation passed in 2023 and 2024, the city is required to make changes to codes and development regulations to allow middle housing and multiple units on most lots.

While there is much to support in these new housing code amendments, the city is proposing to go beyond the minimum requirements of the new state laws. Olympia has decided to adopt standards for a Tier 1 city (population over 75,000). Olympia is currently a Tier 2 city with a population of about 55,000. This choice triggers the higher densities allowed on lots and appears to loosen other design standards for new units and lot requirements.

Our neighborhood already has some of the highest lot densities in the city. The Middle Housing amendments as drafted will allow up to 6 units on existing lots with questionable amounts of design and construction oversight of these new units. Though we are largely in favor of higher lot densities to increase housing options and potentially decrease costs of ownership and rent, the Board has concerns about how to increase the density and still maintain the historic character of our neighborhood, which is on the National Historic Register.

The City is on a path to adopt the code amendments by this December. On August 14, 2025, the SCNA Board sent a comment letter to Lead City Planner Joyce Phillips, with copies to the Planning Commission and the City Council.

On Monday, August 18th, the Olympia Planning Commission held a public hearing on the Middle Housing code amendments, and SCNA President John Saunders spoke at the hearing, referencing the Board’s letter and summarizing its concerns. (Public comment begins at 33:56)

Several other commenters also expressed concerns about Olympia’s approach to go beyond the state’s minimum requirements. Listening to comments from the public, it became very clear that most Olympia residents and homeowners have no idea what the City is doing that affects properties in potentially major ways. The Board hopes this blog post will help inform our residents about these complicated code changes.

John made the following points at the Olympia Planning Commission hearing:

1. We support increased housing in the South Capitol neighborhood – which is, in fact, already zoned for multiple units per lot. We are eager to see the City implement the Middle Housing Code in a way that maintains the charm of the South Capitol neighborhood while helping people from all walks of life afford to live in it.
2. We have seen far too many conversions of homes and construction of new units for commercial purposes (i.e. office space and short-term rentals). This trend is inconsistent with the goal of these amendments. We ask that the City strengthen the design review and code enforcement process to prevent further loss of housing.
3. We are concerned that allowing up to 6 units per lot in the South Capitol Neighborhood (due to proximity to major transit and the potential choice to plan for a Tier 1 city) will not allow for design standards that respect the historic nature of our streets and houses. Therefore, we ask that the design review process be maintained for projects proposing 5 or more units per lot.
4. We are concerned that taller buildings may obscure existing solar panel installations. We urge the City to adopt rules to prevent obstruction of residents’ solar panels
5. We believe that the proposed amendments do not go far enough to encourage affordable housing.
6. We request that Olympia allow more time and public involvement to address these major changes, including the Tier 1 designation.

The Planning Commission is expected to continue its deliberations at its next meeting on September 15, 2025 and may vote on a recommendation at that meeting. (link to city calendar with agendas and meeting materials)

The Land Use and Environment Committee is scheduled to consider the Planning Commission’s recommendation at its meeting on October 23, and the Olympia City Council will likely consider the proposed code changes at a meeting in November.