Title
Discussion of the Olympia 2045 Comprehensive Plan Housing Chapter
Recommended Action
Committee Recommendation:
The Land Use and Environment Committee reviewed the draft Olympia 2045 Housing Chapter of the Comprehensive Plan and suggested minor revisions. The Committee recommended the chapter be forwarded to the full City Council for discussion at a Study Session.
City Manager Recommendation:
Review and discuss the draft Housing Chapter of the Olympia 2045 Comprehensive Plan.
Report
Issue:
Whether to review and discuss the draft Housing Chapter of the Olympia 2045 Comprehensive Plan.
Staff Contact:
Susan McLaughlin, Director, Community Planning & Economic Development, 360.753.8206
Presenter(s):
Casey Schaufler, Associate Planner
Background and Analysis:
For the last periodic update, the City’s Comprehensive Plan underwent a major rewrite through a planning process that took place from 2009 through 2014. The Plan was adopted in December of 2014. At least once every 10 years, cities and counties that are fully planning under the Growth Management Act (GMA), must update their plan through a process known as a periodic Update. The periodic update requires that jurisdictions update the planning horizon to a minimum of 20 years, update the population projection it is planning for, and address all new planning requirements that have been adopted since the previous update.
In 2021, the Legislature changed the way communities are required to plan for housing. House Bill 1220 (2021) amended the GMA to instruct local governments to “plan for and accommodate” housing affordable to all income levels. This significantly strengthened the previous goal, which was to encourage affordable housing.
The amended law also directed the Department of Commerce to project future housing needs for jurisdictions by income bracket and made significant updates to how jurisdictions are to plan for housing in the housing element of their comprehensive plans. These new changes to local housing elements include:
• Planning for sufficient land capacity for housing needs, including all economic segments of the population (moderate, low, very low and extremely low income, as well as emergency housing and permanent supportive housing).
• Providing moderate density housing options within Urban Growth Areas (UGAs), including but not limited to duplexes, triplexes, and townhomes.
• Making adequate provisions for housing for existing and projected needs for all economic segments of the community, including documenting programs and actions needed to achieve housing availability.
• Identifying racially disparate impacts, displacement and exclusion in housing policies and regulations, and beginning to undo those impacts; and identifying areas at higher risk of displacement and establishing anti-displacement policies.
New requirements in the GMA require jurisdictions to plan for affordable housing for all economic segments of the population in their periodic Comprehensive Plan updates. “Capacity” refers to the potential number of new dwelling units that could be built on a parcel based on zoning, development regulations, development trends, and market factors. Capacity includes greenfield development, infill development, and redevelopment. Olympia, along with Lacey, Tenino, Tumwater, Yelm, and Thurston County partnered with the Thurston Regional Planning Council to implement the requirement to identify sufficient land capacity.
The population forecast for Olympia shows that the city has an overall surplus of capacity based on buildable lands and zoning regulations. This surplus appears largely dependent upon redevelopment of areas in the downtown core and the westside, and new development in urban growth areas. The analysis projects that Olympia and its urban growth area will require approximately 14,295 new housing units by 2045 to accommodate population growth. While land availability is not determined to be a constraint in Olympia, affordability remains a critical issue. Olympia will need approximately 7,616 additional housing units affordable to low-income households. This information has been incorporated into the Housing Chapter, and the final land capacity analysis is included as an attachment to both the draft chapter and this staff report.
The Housing Displacement Risk Analysis is a continued effort at addressing economic displacement and racial disparities in our community. Olympia again partnered with the cities of Lacey, Tumwater, and Yelm to contract with an independent consultant to prepare an analysis and recommendations for each jurisdiction to address these items. While each jurisdiction has specific recommendations as a deliverable, the intent is to also provide a regional look at these impacts.
The partner jurisdictions selected Uncommon Bridges (formerly BDS Planning & Urban Design) to prepare this analysis. Uncommon Bridges held a series of four community affinity group roundtable discussions, and a community survey that resulted in 167 responses. Affinity groups included those with lived experience and relevant connections to 1) Manufactured housing communities, 2) Communities of low-wage workers, 3) Military families and households, and 4) Accessory dwelling units.
The Housing Displacement Analysis evaluated Olympia’s existing housing policies and identified that certain policies focused on preserving neighborhood character may have contributed to exclusionary outcomes by limiting the development of diverse and affordable housing types. These policies can have racially disparate impacts by restricting access to high-opportunity neighborhoods for lower-income and black, indigenous, and other people of color (BIPOC) households.
A key finding of the analysis is that the city is facing significant risk of physical displacement, particularly due to the loss of existing low-income homeownership and inadequate supply of affordable rental units for very-low-income households (30-50% area median income). Physical displacement is defined as displacement due to eviction, acquisition, rehabilitation, or demolition of property, or the expiration of covenants on rent or income-restricted housing.
Findings and recommendations resulting from this analysis were used to inform updates to the Housing chapter of the Comprehensive Plan. The full analysis and supplemental technical annex are provided as attachments to the chapter and this staff report.
Social Justice & Equity Commission
A draft of the Housing Chapter, along with the Displacement Analysis, was presented to the Social Justice & Equity Commission (SJEC) during a briefing held on May 19, 2025. The SJEC prepared a comment letter (attached) which summarizes their discussion on addressing accessibility in housing and opportunities for structural retrofitting and rehabilitation.
Olympia Youth Council
The Olympia Youth Council received a briefing on the draft Housing Chapter and Displacement Analysis at their meeting on May 21, 2025. Discussion was wide-ranging on topics including strengthening tenant protections, implementing inclusionary zoning, and establishing clear metrics and tracking of affordability strategies. The Youth Council’s full comment letter is attached.
Olympia Planning Commission
The Olympia Planning Commission received multiple briefings, ranging in focus from the land capacity analysis, the housing displacement analysis, and updates on the draft chapter itself. The public hearing draft of the Housing Chapter was released on August 8, 2025. The Planning Commission held a public hearing on August 18, 2025. Four members of the public provided testimony, which largely demonstrated support for providing additional housing options and streamlining unit buildout. The Planning Commission completed their deliberations on September 15, 2025. The Planning Commission comment letter (attached) recommends minor revision as well as further consideration by City Council to be given to cost barriers to affordable housing.
Land Use & Environment Committee
The Land Use and Environment Committee (LUEC) considered the draft chapter, with revisions proposed to address comments from the Planning Commission. The LUEC recommended a minor revision to the chapter, which has been incorporated into the draft chapter and further recommended that the draft Housing Chapter be forwarded to the full City Council for discussion at a future Council Study Session.
Climate Analysis:
The Housing chapter supports climate goals by encouraging dense, transit-accessible housing and preserving existing homes to reduce construction-related emissions. Policies promoting walkable neighborhoods, infill development, and adaptive reuse align with Olympia’s sustainability objectives. Environmental constraints like sewer and critical area regulations are noted as barriers but also help protect natural resources.
Equity Analysis:
The Housing Displacement Risk Analysis provides an assessment of displacement risk in Olympia, with a strong focus on equity. The analysis identifies renters, low-income households, and communities of color-particularly Hispanic/Latino, Black, and multiracial populations-as being at heightened risk of displacement. These groups are disproportionately cost-burdened and affected by market pressures and policy gaps. The report evaluates Olympia's Comprehensive Plan goals and policies using an equity-centered framework aligned with the Washington State Department of Commerce’s Racially Disparate Impacts (RDI) tool. Many of Olympia's existing policies are rated as "Approaching," indicating partial support for equitable outcomes but highlighting missed opportunities to directly address racial disparities, exclusion, and displacement.
Neighborhood/Community Interests (if known):
The Housing Action Plan, as well as the One Community Plan developed to address homelessness, garnered wide and varied interest from across the City of Olympia and the region at large. Building upon the outreach done in the development of the Housing Action Plan and One Community Plan, City of Olympia staff will provide opportunities for review and comment of the draft housing element in the near future. Significant community interest is expected, particularly among renters, low-income residents, and historically marginalized groups most at risk of displacement. Residents may be especially engaged around recommendations tied to tenant protections and affordable housing development. Neighborhood associations and housing advocates may also express concerns about zoning changes, infill development, and policies referencing “neighborhood character.”
Financial Impact:
This work is being funded, in part, by a $175,000 grant from the Washington State Department of Commerce.
Options:
Discussion only
Attachments:
Draft Housing Chapter with Climate Goals
Planning for and Accommodating Housing Needs in Thurston County TRPC Analysis
Housing Displacement Risk Analysis & Technical Annex
Social Justice & Equity Commission - Housing Chapter Comment Letter
Olympia Youth Council - Housing Chapter Comment Letter
Olympia Planning Commission - Housing Chapter Comment Letter
Olympia 2045 Housing Update Webpage