Thursday, October 1, 2026
The Lacey Planning Commission got its first look at code changes to accessory dwelling unit (ADU) regulations.
The changes are required under House Bill 1337, a 2023 Washington state law crafted to address the state housing crisis by establishing minimum ADU standards.
City staffers presented a briefing at the commission's meeting on Jan. 28. The City of Lacey is currently operating under a state preemption period that began Jan. 1, with local code adoption expected by mid-summer.
Lacey Housing Coordinator Jennifer Adams said the most significant changes involve density and size requirements.
State law now requires cities to allow at least two ADUs on residential lots where detached single-family homes are permitted, doubling Lacey's current allowance of one. Permitted configurations include one attached and one detached ADU, two attached ADUs, or two detached ADUs.
Additionally, cities may not set a maximum ADU size below 1,000 square feet. Lacey's existing cap is 850 square feet or 50% of the primary dwelling.
"We must reasonably permit two per lot," said Adams, adding the city's code would need revisions to meet state standards.
Lacey Community Planning Manager Ryan Andrews said the legislation also removes discretionary review authority for ADUs.
Under the new law, applications must be processed through ministerial review based solely on objective standards. He noted the change eliminates design review boards and subjective criteria that can delay or deny housing proposals.
Andrews added the law fundamentally changes how cities must treat accessory housing, shifting ADUs from small, subordinate units to additional dwelling units that may be rented independently and, in some cases, sold.
State requirements also include allowing ADU roof heights of at least 24 feet unless the primary dwelling is shorter and permitting conversions of existing structures, including garages, even when those structures do not meet current setback or lot coverage standards.
Owner-occupancy requirements are also prohibited under HB 1337, except in connection with short-term rental regulations. The state law does not apply to lots with critical areas or their buffers.
Adams noted parking rules must also be loosened. For lots of 6,000 square feet or less, cities may not require more than one off-street parking space per unit. Larger lots are capped at two required spaces per unit.
Despite the expanded allowances, Andrews said ADU construction is most likely in older neighborhoods with larger lots connected to sewer infrastructure.
He identified areas south of Lacey Boulevard, including neighborhoods along Golf Club Road and College Street, as the most likely locations for future development. Properties served by septic systems, he noted, generally cannot accommodate additional units due to drain field constraints.
Still, Commissioner Judith Doyle raised concerns about uneven impacts across the city. She noted homeowner associations with existing ADU restrictions can continue to enforce them, but new developments cannot adopt similar prohibitions.
"I believe this is going to create a further separation of parts of Lacey," Doyle said.
Lacey currently has roughly 20 ADUs despite maintaining permissive regulations for decades. Staff attributed the low number to construction costs, financing barriers and interest rates. The city offers preapproved ADU plan sets at the permit counter for about $1,000, excluding construction costs.
State law caps ADU impact fees at 50% of those charged for a principal dwelling. Lacey does not currently charge impact fees for ADU development, aside from a school impact fee paid to the school district.
Looking ahead, Adams said a unit lot subdivision framework expected in 2027 could allow ADUs to be sold as independent units. Andrews said such sales would require owners to establish separate utility connections.
Draft ADU code amendments are expected to return to the Lacey Planning Commission in late February for recommendation to the Lacey City Council.
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Porter
Government overeach
Thursday, February 5 Report this
HeikeSypeck
With today’s high costs of renting or owning a home, it’s crucial to allow existing homeowners to build an ADU on their property—whether in cities or rural areas. I don’t believe Olympia, Lacey, or Tumwater have a true “housing shortage,” especially with large new neighborhoods springing up like mushrooms overnight for years. The real issue is the inflated cost of housing, and many families are searching for ways to give their loved ones a place to live. In our case, our adult daughter, who has a steady career, dreams of having her own little space outside the family home but still on the family property. We own one acre outside city limits, yet we’re not allowed to build a second dwelling because it’s supposedly too small. We can buy a manufactured home or trailer for the lot, but those would only lose value over time. It’s time rural areas had the same right to build ADUs as cities do.
Friday, February 6 Report this