Federal Way Code Changes for New Housing

Seattle King County REALTORS® continue to support Federal Way’s proactive efforts to address the housing crisis through zoning reform, partnerships, and strategic planning. Earlier this year, REALTORS® backed code changes to promote middle housing and streamline the development of owner-occupied townhomes—making it easier, faster, and more affordable to build.

More recently, REALTORS® have supported initiatives to partner with churches for affordable housing and ensure city council members receive practical feedback from construction experts on proposed code changes. These efforts reflect a broader  commitment to expanding housing options and improving regulatory clarity.

A major focus is the proposed expansion of Federal Way’s Regional Growth Center by 10%, adding 20 acres to create the new “South Station Subarea.” This area is envisioned as a dense, walkable, transit-oriented neighborhood anchored by Sound Transit’s Link extension. The plan includes 4,804 new housing units, integrated  with retail, commercial space, and public amenities. The city also projects 7,338 new jobs in the Growth Center by 2044. The Puget Sound Regional Council (PSRC) granted preliminary certification in May, allowing Federal Way to compete for transportation funding while formal subarea planning continues.

In addition, Federal Way has proposed amendments to its middle housing and ADU codes to meet state deadlines and improve  clarity. These include updates to open space requirements for larger unit lot subdivisions, refined definitions for middle housing in SP and RS zones, and new options for affordable housing in subdivisions. ADU Development Agreement changes aim to provide flexibility and predictability for builders by listing public benefits—such as open space, multimodal connections, and affordable housing—that can justify departures from standard code requirements.

Finally, the city is aligning its definition of “development standards” with state law, covering height, setbacks, drainage, landscaping, and other features. These updates reflect Federal Way’s commitment to balancing growth, affordability, and livability.