Developing in Shoreline, WA: A Complete Guide for Builders & Investors

Developing in Shoreline, WA: A Complete Guide for Builders & Investors

Shoreline, Washington, is an attractive location for real estate development, offering zoning flexibility, tax incentives, and sustainability programs. Whether you’re planning a multifamily development, an ADU, or a mixed-use project, understanding the city's regulations is key to a successful build.

Why Develop in Shoreline, WA?

Shoreline is growing rapidly, with planned transit-oriented developments and rezoning efforts making it an appealing spot for builders and investors. Key advantages include:

✅ Zoning Flexibility: Neighborhood Residential (NR) and Multifamily zones support various housing types.

✅ Green Building Incentives: Reduced permit fees and expedited reviews for sustainable projects.

✅ Tax Benefits for Multifamily Developments: The Multifamily Property Tax Exemption (MFTE) program can provide a 12-year exemption.

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Understanding Shoreline’s Zoning & Development Rules

1. Neighborhood Residential (NR) Zones

• Ideal for single-family homes, townhouses, and ADUs.

• ADUs require compliance with fire separation and parking requirements.

• Height limit: 30 feet, with standard setback requirements.

2. Multifamily & Mixed-Use Residential (MUR) Zones

• Higher-density residential and commercial developments allowed.

• Located near planned transit hubs (e.g., NE 185th Street Light Rail Station).

• Potential for commercial space on the ground floor with residential above.

3. Accessory Dwelling Units (ADUs)

• Both Detached (DADUs) and Attached (ADUs) are permitted.

• Maximum size is 50% of the main home’s square footage.

• Parking requirements waived if the unit is within a quarter-mile of major transit.

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Permitting & Approval Process

✅ Step 1: Pre-Application Meeting

• Required for large developments.

• City planning officials provide feedback on zoning, environmental impact, and neighborhood considerations.

✅ Step 2: Permit Requirements

• Building Permits – Required for all new construction.

• Site Development Permits – Needed for grading, drainage, and utility work.

• Environmental Reviews – Required if the site includes wetlands or steep slopes.

✅ Step 3: Neighborhood Engagement

• Developers must hold a neighborhood meeting before approval.

• Community feedback must be documented and submitted with permit applications.

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Sustainability Incentives for Developers

🌱 Deep Green Incentive Program (DGIP)

• Reduces permit fees by up to 100% for projects using LEED, Built Green, or Passive House standards.

• Includes expedited permit reviews for sustainable construction.

💰 Multifamily Property Tax Exemption (MFTE)

• 12-year tax exemption if 20% of units are designated as affordable.

• Applies to high-density multifamily zones.

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Financial & Tax Considerations

• Impact Fees: Developers must budget for transportation, parks, and fire service fees.

• Qualified Research Expenditures (QRE) Tax Credits: Available for innovative or sustainable construction projects.

• Financing Options: SBA-backed loans, community banks, and private lenders support real estate projects.

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Next Steps for Developers in Shoreline

🚀 Conduct Feasibility Studies – Assess land costs and potential ROI.

🏗 Engage with City Planning – Pre-application meetings streamline approvals.

🏡 Optimize Design for Sustainability – Leverage DGIP for cost savings.

📈 Secure Financing & Investors – Utilize tax benefits like MFTE and QRE.

🗣 Plan for Neighborhood Engagement – Address community concerns early.

💡 Need help navigating Shoreline’s development process? Contact us today for expert consulting on zoning, permits, and financing options.