COBI requests extension from Commerce for housing regulations

Published 1:30 am Friday, July 31, 2026

The Bainbridge Island City Council held a joint public hearing with the Department of Commerce for a housing accountability review as part of its July 28 regular business meeting.

Laura Hodgson, a housing planning and data manager at the Department of Commerce, said the agency received a request for an extension from the City of Bainbridge Island July 27, as the city is not likely able to adopt the housing element of the Comprehensive Plan and housing development regulations by the Aug. 21 deadline.

Hodgson said Commerce hopes to come to a decision regarding the request for an extension in the coming weeks. In the event COBI is either not able to meet the deadline or Commerce declines to provide an extension, the builder’s remedy (a legal rule allowing developers to bypass local zoning limits when cities fail to meet state housing development requirements) would apply until the city adopts a consistent plan and regulation, she said.

“Under the builder’s remedy, a jurisdiction cannot deny, condition, or restrict an affordable or moderate-income housing development that has a substantial adverse impact on the viability of a project or degree of affordability,” per city documents. Unless specific conditions include: when critical area regulations are not met, the project is in areas where housing development is not allowed, or when development is precluded by state or federal law. Being out of compliance could also mean a jurisdiction may not be eligible for certain state grants and loans.

Previously in January, COBI was notified by Commerce that it had been selected for review under the Housing Accountability Act due to the Comp Plan periodic update being overdue. Commerce staff provided the council with an overview of HAA Feb. 17. In March, COBI provided the agency with required information. COBI was later notified in April that the Department of Commerce found some city materials to be inconsistent with state requirements. Some of the items identified by Commerce in the April report have been addressed through further edits to the draft updated Comp Plan, Winslow Subarea Plan, or the draft implementing regulations, per city documents.

Interim city manager Ellen Schroer confirmed the hearing was specific to the HAA and not the same as the Comp Plan update, which will have a separate public hearing.

Hodgson said once the agency receives adopted material, it undergoes a review process and a determination is made if the plan is compliant with state requirements. Following Commerce receiving adopted materials, they will issue a compliance decision within 90 days. The agency confirmed they previously received updated materials May 14 and completed their review with written feedback July 13.

Presentation materials note the Land Capacity Analysis has not been included in the Comp Plan as it’s being updated to reflect council’s July 14 direction on development standards. “A Final Environmental Impact Statement (FEIS) will be completed once the total of population, dwelling units and jobs of the City Council’s final alternative have been calculated,” per city documents.

The Growth Management Act is intended to help concentrate growth in areas where there’s infrastructure and investments, and help preserve rural and resource areas, Hodgson said. While the hearing is intended to provide direct feedback from the community, it helps both Commerce and the city council as it finalizes adoption choices. Hodgson said in the future, the council will adopt periodic updates to the Comp Plan every 10 years with smaller new amendments annually with development regulations as needed.

Schroer said COBI is required to plan for roughly 1,977 new dwelling units over the next 20 years, with 1,139 units being affordable at or below 80% of Area Median Income.

Commerce projected housing needs at the countywide level, with Hodgson adding, “local jurisdictions, in coordination with the counties that they’re in, have the best understanding of the constraints about where housing should go in their communities. So the Department of Commerce created projections of housing need at the county level, and allowed counties to work with cities to determine where that growth should go,” she said. “So it’s important to recognize that moving forward, those are collaborative decisions that are made together, and that should take into account unique circumstances of each community, whether that’s infrastructure, resources, critical areas, or nonprofit providers.”

Last year, the state legislature passed SB 5148 (HAA), which aims to “support robust and accountable housing” planning efforts statewide. “The law establishes both voluntary and selected review processes for local housing elements and housing-related development regulations, with the goal of improving alignment with the GMA…and ensuring jurisdictions plan for and accommodate countywide housing allocations,” per city documents.

BI Chamber of Commerce board member Eric Ludwig spoke in support of the Comp Plan and goal of aligning with the HAA.

“The chamber believes the recent changes, including increases to base and bonus density, to attract more private funding for housing, and especially affordable housing, represent a reasonable and important step towards ensuring Bainbridge Island remains a vibrant, economically resilient, and inclusive community well into the future. We ask the council to approve the recent changes to the subarea plan and move forward with the comprehensive plan without delay. As advocates for local businesses, we see firsthand the challenges facing employers of all sizes across the island. Businesses, nonprofits, healthcare providers, schools, and public agencies increasingly struggle to recruit and retain employees because many workers cannot afford to live in the community they serve, expanding housing opportunities and supporting a wide range of housing types are essential, not only for meeting state requirements, but for maintaining a healthy local economy, a diverse community, and the sustainment of the services and amenities that residents depend on and enjoy,” he said.

Regarding next steps, COBI is requesting a 120-day extension of the HAA deadline and is waiting for a response from Commerce, Shroer said.