NEWS GLEAMS | Legislation Eases Commercial-to-Residential Conversions; Rulemaking Begins for Youth Crisis Relief Centers

A roundup of news and announcements we don't want to get lost in the fast-churning news cycle.

by Vee Hua 華婷婷

Seattle City Council Passes Legislation to Ease Commercial-to-Residential Conversions

On Tuesday, July 9, the Seattle City Council unanimously passed new legislation to ease regulatory barriers around the conversion of unused office spaces to residential units. Mayor Bruce Harrell first introduced the legislation in late March as a part of his Downtown Activation Plan to "revitalize" downtown Seattle following closures from the COVID-19 pandemic.

The new legislation clarifies guidelines for determining what defines a "residential conversion." Whenever existing structures, such as office buildings, are converted to housing units or residential units are added to existing structures, exemptions from certain design development standards will also be enacted, which would allow for increased expediency, affordability, and feasibility in conversions. The downtown core of the city is the main focus of the office-to-residential conversions, but the legislation also applies to all city zoning districts that fall under Commercial (C), Neighborhood Commercial (NC), and Seattle Mixed (SM).

"We must take advantage of every opportunity and tool available to create more housing options to address the issues at the root of Seattle's affordability crisis, which impacts everyone in our city," Harrell said in a press release. "These efforts will build on the housing levy approved by voters last year, and include adoption of a new State law to exempt residential and mixed-use projects from SEPA review and legislation to permanently exempt affordable rental and homeownership projects from design review."

With downtown office vacancy rates exceeding 20% following the initial COVID-19 pandemic closures and increased work-from-home habits for white-collar workers, Harrell has been promoting commercial-to-residential conversions since his 2023 annual "State of the City" speech. Last summer, the City's Office of Planning and Community Development ran a design competition, which yielded design solutions and architectural renderings. Twelve design teams submitted 13 potential solutions to the City.

None of the solutions from the design competition directly resulted in developments, but they helped to inform the current legislation. According to a press release from the mayor's office, the design teams learned whether older commercial structures were suitable for conversion; that financial incentives were necessary due to the complexity and expense of the process; and about the importance of more streamlined permit-review processes and more flexible construction codes.

Rulemaking Is Underway for Crisis Relief Centers to Serve Youth and Children

In 2023, the Washington State Legislature passed Second Substitute Senate Bill (2SSB) 5120, which established a new license type for the creation of 23-hour crisis relief centers (CRCs) in the state. The 23-hour crisis relief centers were based on a national model for behavioral health care developed by the Substance Abuse and Mental Health Services Administration (SAMHSA), which focused on three tenets: regional crisis call hub services, such as Washington State's 988 helpline; mobile crisis team services; and crisis receiving and stabilization services, such as CRCs.

When first passed, the bill was only intended to serve adults, and crucial aspects of its rulemaking process had yet to be defined. An amendment was passed in 2024, which removed limitations that CRCs could only serve adults and also added select requirements for CRCs that want to serve children 8 years and older. Those requirements mandate that children cannot be in contact with adult clients, must have care that matches the needs of the children and their families, must have special planning if they are at risk of dependency, out-of-home placement or homelessness, and more.

The amendments to 2SSB 5210 dictate that by March 31, 2025, "the secretary shall amend licensure and certification rules for 23-hour crisis relief clinics in consultation with the authority and the department of children, youth, and families to create standards for licensure or certification of 23-hour crisis relief centers which provide services to children."

The Washington State Department of Health (DOH) has filed a CR-101, or Preposal Statement of Inquiry, to invite the public into a process of "collaborative rulemaking." The process will help inform and "amend the licensure and certification rules for CRCs to create standards for the licensure or certification of CRCs which provide services to children."

Those who wish to participate in the rulemaking process can participate in the following events:

• Monday, Aug. 5, from 11:00 a.m. to 12 p.m. — Kickoff meeting to discuss and plan remaining workshops for the year.
• Monday, Sept. 9, from 12:00 p.m. to 2:00 p.m. — Recurring meetings every Monday, as needed for an anticipated 3—5 weeks.
• Wednesday evenings — Review sessions for those who are unable to attend the Monday meetings.

Workshop details will be posted to DOH's BHA Rules in Progress webpage or can be delivered via GovDelivery. To sign up for GovDelivery, enter your email address and select "Health Systems Quality Assurance (HSQA) and Behavioral Health Care Integration." All questions can be directed to Dan.Overton@doh.wa.gov.

"Doors Open" Opens Funding Opportunities for County Arts Organizations

The "Doors Open" funding program was passed by the King County Council in 2023 to increase funding to the county's nonprofit organizations that work in arts, heritage, science, and historic preservation. The program is funded through a 0.1% sales tax that is estimated to raise approximately $800 million over the next seven years, averaging $40 per family per year. The program is modeled after similar programs in Tacoma and Denver, and a minimum of 25% of its funds are required to go to King County cities outside of Seattle. The program will also benefit a mixture of public and nonprofit organizations.

"A full 15% of Doors Open expenditures will go to public school students, where art and music programs are being cut to balance budgets," according to a King County press release. "Annually, that's at least $12 million to support partnerships, field trips, before- and after-school programs, transportation and admission costs, internships, free or discounted ticket programs and more."

King County estimates that over 500 additional arts organizations will benefit from Doors Open funds. Funding for nonprofit organizations will be disbursed through 4Culture, which has a long history of local grantmaking and support services for artists and arts organizations. The main programs 4Culture will operate under Doors Open include the Sustained Support and Facilities programs, both due on Sept. 4, 2024. Sustained Support is a flagship 4Culture program that was amended this year to provide one year of unrestricted funding. The program will return to its previous two-year cycle starting in fall 2025.

The Facilities funds are scaled for organizations of varying sizes and are designed to "help organizations acquire, build, or renovate the brick-and-mortar buildings and spaces that make cultural experiences possible." Totaling $24 million for all grant recipients, they provide a one-time investment that is similar to its previous Building for Equity Program, which is currently on hiatus and will be slated to reopen in 2025.

According to the Bureau of Economic Analysis, Washington State's Arts & Culture sector represents 10.8% of the state's Gross Domestic Product, contributes $72.8 billion to the state economy, and supports nearly 190,000 jobs statewide.

4Culture is hosting an informational Zoom Webinar on Friday, July 12, from 12 to 12:45 p.m., to speak more about Doors Open's eligibility and timelines. Register for the lunchtime Zoom Webinar through ArtsFund.

📸 Featured Image: Pioneer Square in 2018. In 2023, the City's Office of Planning and Community Development ran a design competition seeking ideas for downtown office space conversions. The third-place winning team submitted a proposal focusing on reusing historic buildings in Pioneer Square, converting them into residential units and a shared courtyard. Photo via Roman Khomlyak/Shutterstock.com

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