City Council Commences Work to Develop Compliance Strategy

At its annual planning session today, the Mercer Island City Council initiated a strategic effort to align the City’s Comprehensive Plan with state affordable housing requirements. Following a recent Growth Management Hearings Board (GMHB) order requiring the City to revise its plan by July 31, 2026, the Council has committed to a path forward over the coming months to ensure the City meets its obligations.

Under the Washington State Growth Management Act (GMA), cities and counties are required to adopt a comprehensive plan, which is a statement of goals and policies that detail how a county or city will manage and accommodate future growth. The goals and policies of the comprehensive plan are implemented through capital investments, development regulations, and programs. The GMA requires cities and counties to periodically review and update their comprehensive plans on a ten-year cycle. Mercer Island most recently completed a periodic review and update of its Comprehensive Plan in 2024 (see AB 6573).

The 2024 Comprehensive Plan was appealed to the GMHB on the grounds that the Comprehensive Plan did not adequately plan for and accommodate future affordable housing needs (GMHB case number 25-3-0003). On Aug. 1, 2025, the GMHB issued a final decision and order (GMHB Order), which found that the City must revise its Comprehensive Plan to comply with the GMA and remanded the Comprehensive Plan to the City for revision. Specifically, the City must amend its Comprehensive Plan to address the following:

• Land Capacity: Analyze residential land capacity at each housing affordability level and close any identified gaps.
• Adequate Provisions: Adopt incentives, mandatory provisions, and planned actions (“aka adequate provisions”) that will increase the supply of affordable housing.
• Station Area Subarea Plan: Adopt a subarea plan for the area around the transit station.
• Anti-Displacement Measures: Adopt anti-displacement measures to address the potential displacement that can occur with changes in zoning.

Although the Comprehensive Plan adopted in 2024 remains in effect during the remand, the City must update the plan and comply by July 31, 2026, which is one year from the date that the GHMB issued its decision, as established by the GMHB Order (RCW 36.70A.300(3)(b)). Failure to comply with the GMHB Order can result in sanctions against the City (RCW 36.70A.340).

Staff began developing compliance strategies and presented proposed options for City Council consideration and direction on Jan. 16, 2026. The Council provided direction on the preferred strategies and requested additional analysis, implementation options and a refined work plan and schedule for Council consideration in February and March of 2026. Based on the City Council direction, Mercer Island will evaluate how compliance with another state law, House Bill 1491, may efficiently address the GMHB Order. Compliance work will continue thereafter with regular City Council briefings and direction, until compliance is achieved.