Mercer Island: Affordable Housing Plan Fails to Meet State Standards
In a landmark decision, Washington's Growth Management Hearings Board (GMHB) ruled that the city of Mercer Island failed to meet state requirements for affordable housing, forcing the city back to the drawing board. The ruling came after an appeal from the land use advocacy group Futurewise, which argued that Mercer Island’s 2024 growth plan fell short of the new standards set by House Bill 1220 (HB 1220). This legislation, a significant change to growth planning, requires cities to specifically plan for future housing needs across a broad range of income levels, not just a single, high-level growth target.
The board found that Mercer Island's plan was insufficient because it improperly combined different income levels, effectively hiding the fact that housing for very low-income residents would likely not materialize. The city had assumed that nearly all new affordable housing would be built in its Town Center, a small area near a new light rail station. However, the ruling pointed out that with an average home price of $2.4 million and minimal incentives for developers, this assumption was unrealistic and unsupported by evidence. Mercer Island's plan assumed that over 1,000 new units would be available for lower-income residents, despite only producing 102 such units under its current system of subsidies.
This GMHB ruling is a crucial legal precedent that will likely impact other cities in Washington. It is the first time the board has fully addressed a challenge to a local plan under HB 1220, affirming the law as a major shift in how cities must approach affordable housing. Futurewise’s director, Alex Brennan, stated that the decision ensures lower-income people will have access to the opportunities available in wealthy communities like Mercer Island.
While the board did not agree with Futurewise's argument that affordable housing cannot be concentrated in one area, it did provide Mercer Island with one year to revise its plan to comply with the law. This will likely require the city to adopt more substantial zoning changes and a more robust program to produce affordable housing. The ruling serves as a clear warning to other jurisdictions that have made similar flawed assumptions, emphasizing that all cities must contribute to solving the statewide housing crisis. The outcome of Mercer Island’s new plan could set a precedent for future growth decisions across the state.