This bill creates a new, temporary statutory authorization that allows cities and code cities to designate "housing development opportunity zones" in areas dominated by large commercial sites (for example, shopping malls, vacant department stores, and vacant grocery stores). It adds new sections to chapters 35.21 and 35A.21 RCW and establishes development rules requiring that residential development be prioritized, use existing stormwater permits, facilities, services, and infrastructure, use the project site area as defined by existing parcel improvements (including parking and landscape areas), and comply with the setbacks that were required at the time of the initial development. Cities may waive impact fees for development or redevelopment within a zone. Resolutions or ordinances implementing a zone are exempt from the requirements of RCW 36.70A.130 and may be adopted at any time within the planning period provided the next comprehensive plan update incorporates the change. The act is a procedural and land use change rather than a criminal or penalty statute. It requires the Joint Legislative Audit and Review Committee (JLARC) to evaluate the number of housing units and affordable housing units created in zones established under the act, to deliver that review to the appropriate legislative committees by September 1, 2043, and states the legislature’s intent to repeal the cities’ authorization to establish these zones if JLARC’s review finds affordable housing units have not increased. The act requires cities to cooperate with JLARC and provide requested data, and allows JLARC to use state-collected data or other data sources. The act includes an expiration date of July 1, 2045. The extracted text omits several specifics: the exact RCW section numbers being added are not given; the bill does not define "affordable housing units" or specify the metrics or methodology JLARC must use; it does not detail the required content or criteria for a city's resolution or ordinance designating a zone; it does not explain the substantive requirements of RCW 36.70A.130 from which the zones are exempt; and it does not specify enforcement mechanisms or precise data obligations for cities beyond a general cooperation requirement.

If enacted, cities and code cities would get a new, faster tool to convert large commercial sites like malls and vacant big-box stores into housing by designating "housing development opportunity zones." Projects in those zones would be expected to prioritize residential uses, rely on existing stormwater permits, facilities and infrastructure, meet the original setbacks, and could have impact fees waived, which would likely reduce development costs and speed redevelopment while reducing some local fee revenue and oversight tied to RCW 36.70A.130. Cities would also take on a new reporting duty: they must cooperate with JLARC, which must report to the legislature by September 1, 2043 on how many housing and affordable units were produced; if affordable housing hasn’t increased, the legislature intends to repeal the authorization. The act expires July 1, 2045, and key details—how "affordable" is defined, what data cities must provide, and the criteria for designating zones—are not specified here, so the program’s real-world reach and enforceability remain uncertain.