Zoning changes
Understanding Tacoma's Home In Tacoma Initiative: What It Means for Renters, Homeowners, Investors, and Builders
Tacoma’s ambitious Home In Tacoma initiative represents a significant shift in the city’s approach to housing development. This comprehensive rezoning plan aims to tackle the housing affordability crisis by encouraging denser and more diverse housing types throughout the city. Here's a breakdown of what these changes mean for renters, homeowners, investors, and builders. Here is a link to the new zoning map. You can read more about it here. Start your permitting process here.
Key Changes Under Home In Tacoma
Zoning Overhaul: Single-family zoning has been replaced by Low-Scale and Mid-Scale Residential zones.
New Housing Types Allowed: Duplexes, triplexes, fourplexes, townhomes, and small apartment buildings are now permitted in areas previously restricted to single-family homes.
Density Increases: The allowed number of units per lot has increased, especially near transit and commercial hubs.
Affordability Incentives: Developers can earn additional density bonuses if they include affordable housing units.
Multifamily Tax Exemption (MFTE): Property tax breaks are available for multifamily projects that include affordable units.
Implementation Timeline
Initial Approval: The Tacoma City Council approved the Home In Tacoma plan in December 2021.
Ordinance Finalization: Zoning changes and specific codes were adopted in mid-2023.
Effective Date: New zoning regulations took effect in August 2023, with project applications now being accepted under the updated rules.
Zoning Categories and Details
UR1 (Low-Scale Residential): Allows up to 4 units per 6,000 sq ft lot. Typical housing types include duplexes, triplexes, and cottage clusters.
UR2 (Mid-Scale Residential): Allows up to 6 units per lot, with potential increases to 8 units through affordability bonuses. Four-story buildings are common in these zones.
UR3 (Urban Center): Allows 12+ units per lot, emphasizing mixed-use and high-density residential development near transit corridors.
Subdivision Rules
Lot Subdivision: Lots meeting specific size and frontage requirements can be subdivided. For example, a standard 6,000 sq ft lot can be split into multiple parcels if zoning density limits are met.
Minimum Lot Size: Minimum lot size varies by zone, starting from 2,500 sq ft in UR1 areas.
Implications for Renters
More Housing Options: Expect a wider variety of rentals, from basement apartments to small multiplexes.
Potential for Lower Rents: As new units come online, increased supply could help stabilize or reduce rental prices.
Improved Neighborhood Access: Renters may gain access to desirable neighborhoods that were previously single-family only.
Implications for Homeowners
Property Value Changes: Home values could increase due to redevelopment potential, though impacts will vary.
Opportunity for Passive Income: Homeowners can add accessory dwelling units (ADUs) or convert homes into multiplexes.
Community Changes: Expect more diverse housing styles and increased population density.
Implications for Investors
Development Potential: Investors can now build multi-unit properties on lots previously zoned for single-family homes.
Lucrative Tax Breaks: The MFTE program provides long-term tax exemptions for developments that include affordable units.
Appreciation Potential: Properties with development potential may see significant appreciation.
Implications for Builders and Developers
New Project Opportunities: Builders can pursue small- to medium-scale multifamily projects across more of the city.
Reduced Barriers: Rezoning simplifies approval processes for a wider range of housing types.
Affordable Housing Incentives: Builders can access density bonuses and tax breaks when including affordable units.
Looking Ahead
Home In Tacoma represents a bold step toward solving the region's housing challenges. Whether you’re a renter seeking a home, a homeowner exploring development possibilities, or an investor looking for your next project, these changes bring significant opportunities. Tacoma is evolving, and staying informed is key to making the most of this transformative initiative.
