Olympia, WA Zoning Overlays & Bonuses: Density Bonus Law (2026)

Olympia's residential density bonuses are in OMC 18.04.080(A)(4). The maximum housing densities in Table 4.04 can be increased and authorized by the Director or by the Hearing Examiner, with one condition: in the R 4-8 District, Transfer of Development Rights (TDRs) must be obtained under OMC 18.04.080(A)(5).

Four bonuses are listed. Restoration of critical areas: at the applicant's request, the Approval Authority can grant up to 20 percent for sites where damaged or degraded wetlands or stream corridors will be restored and maintained to City-approved specifications. The request must accompany the land use application under OMC 18.70.040, and the Approval Authority weighs public comments, the expected public benefit, the probable net effect of the restoration, the relative cost of restoration against the value of the added density, and the impact on surrounding land uses, traffic, infrastructure, schools and parks. The bonus does not apply to features damaged during a current project under an active permit, or through an illegal or intentional action by the current owner or someone acting at the owner's direction.

Cottage housing projects receive a 50 percent bonus. Townhouses receive 15 percent in the R 4-8 and R 6-12 districts. Low income housing earns one additional unit for each low income unit provided, up to a 20 percent bonus, which the code says is different from the unit lot density increases for affordable housing in subsection (A)(1). For the low income bonus the applicant must submit a document approved by the City Attorney or designee promising the housing remains low income for at least 20 years from the date of the Building Official's final inspection, and record it at the Thurston County Auditor's Office at the applicant's expense.

The TDR rule in subsection (A)(5) requires development rights from an eligible owner in a Thurston County TDR Sending Zone to develop above eight units per acre in an R 4-8 District, though not for the bonuses above. With one TDR credit, a density of nine units per acre can be achieved there.