Support for New Ordinances in Federal Way

Seattle King County REALTORS® advocacy in Federal Way during Q2 of 2025 focused on support for two proposed ordinances for Middle Housing (MH) and Unit Lot Subdivision (ULS). In addition SKCR connected city councilmembers with home builders and representatives of the Master Builders Association to identify specific opportunities and processes to ensure that implementation of the MH and ULS ordinances will produce significant new housing inventory quickly.

SKCR provided detailed written comments in support of both proposed ordinances (MH and ULS), resulting in city councilmembers reaching out to request follow-up assistance, which we are continuing to provide. The City Council approved both ordinances supported by SKCR on June 3.

Middle Housing

Federal Way’s Middle Housing Ordinance amends Titles 18 & 19 of the city code by making the following changes to accommodate Middle Housing:

• Adds new Use Zone Charts and Development Standards for Middle Housing
• Allows higher density for attached and stacked multifamily housing
• Removes per-dwelling minimum lot size requirements for multifamily housing
• Updates retention exemptions for trees and vegetation
• Exempts Middle Housing from community design guidelines
• Revises cottage housing development standards

Unit Lot Subdivisions

Federal Way’s Unit Lot Subdivision Ordinance amends Title 18 of the city code by incorporating ULS provisions required by Senate Bill 5258, including:

• Adding and amending definitions to establish Unit Lot Subdivisions as a type of subdivision.
• Updating density provisions to accommodate Unit Lot Subdivisions; and
• Adding a new chapter to Title 18 that includes review criteria and procedures for Unit Lot Subdivisions.

REALTORS® encouraged the City to act quickly to adopt and implement the Lot Splitting and Unit Lot Subdivision provisions signed into law by the governor following adjournment of the legislature on April 27.

When Councilmember Jack Dovey received the REALTORS® formal comment letter on the MH and ULS proposed ordinances, he called SKCR staff to make sure he understood our comments, and to ask for additional assistance regarding strategies and tactics that might assist the city in ensuring more of the newly constructed housing units in the city are ownership housing, rather than just rentals. His initial focus was on a potential requirement for a minimum percentage of new units to be ownership housing (because Federal Way has long had a disproportionately large percentage of rental housing stock). Based on our concerns that any percentage requirement might ultimately become a “lid” rather than a “floor,” we were able to suggest he three additional alternatives:

1. Fully and quickly implement the provisions just signed into state law by the governor,
2. Reach out to builders to identify what substantive standards and process changes would help and inspire them to build more ownership housing in Federal Way, and
3. Without making other residential construction harder than it already is, make Lot Splitting and Unit Lot Subdivision projects less costly, faster and easier to bring to market, and easier to finance than any other type of new residential construction anywhere in South King County. We advised that, in the process, it would be important to be clear with the builders that the city wants to implement fundamental changes that will be sufficient to cause builders to compete to acquire properties where they can build ownership housing in Federal Way.

At the Seattle King County REALTORS® Housing Issues Briefing on June 25, we were able to connect Representative Dovey with builders and Master Builders Association staff, resulting in scheduled meetings with both parties and Keith Niven, Federal Way’s Director of Community Development.