Creating a categorical exemption for multiunit housing development within the incorporated areas in an urban growth area under the state environmental policy act.

SB 5612 creates a categorical exemption from state environmental review requirements for certain multiunit housing developments in incorporated areas within urban growth areas. It allows cities to exempt projects meeting specific density and consistency criteria with local comprehensive plans, including residential, mixed-use, or limited commercial development (up to 65,000 sq ft, excluding retail). Developers must still conduct environmental analysis addressing impacts like transportation and adjacent jurisdictions, and cities must provide 60 days' notice to tribes and the public before adopting the exemption. The exemption applies to projects with two or more housing units in large cities (west of the Cascades) until 2028, and four or more attached units until 2027, without overriding zoning or critical area protections.