08/29/2026
BAD BILL OF THE DAY: HB 2266
FEDERAL WAY FOLLOWED THE RULES. THEN OLYMPIA CHANGED THEM.
First, what is STEP housing?
Shelters
Transitional housing
Emergency housing
Permanent supportive housing
Olympia increasingly groups these very different types of housing under one friendly-sounding acronym.
When you hear “STEP,” it's worth asking:
Which one?
2021 — OLYMPIA SETS THE RULES
Washington passed HB 1220, requiring cities like Federal Way to accommodate these housing types.
But the law also expressly allowed cities to create reasonable spacing, occupancy and intensity rules to protect public health and safety.
At the same time, Federal Way was facing a real local example.
King County was proposing to purchase the Extended Stay hotel in Federal Way through its Health Through Housing program.
At a packed July 2021 community meeting, residents raised concerns about drugs, crime, safety, operating rules and impacts on surrounding businesses and neighborhoods.
These weren't hypothetical questions. Residents were asking what would happen at a specific property in their community.
Sen. Claire Wilson later questioned why residents reacted differently to the King County proposal than they had to FUSION, asking whether it was because “a white person is running the organization.”
But there was an important difference:
FUSION had guardrails.
Its family shelter prohibited drugs, alcohol and weapons and had screening and expectations for residents.
Those rules protected neighbors — but they also helped protect the vulnerable families and children living inside.
The community's question was straightforward:
What are the rules, and what happens when something goes wrong?
2021–2024 — FEDERAL WAY DOES THE WORK
Federal Way followed HB 1220.
The city spent years developing zoning, spacing, transit-access, licensing and operating safeguards.
Residents submitted extensive questions. Staff researched them. The Planning Commission and City Council worked through concerns involving drugs and overdoses, treatment, police and fire impacts, criminal histories, behavioral-health crises, schools, concentration, security and operator accountability.
Federal Way was implementing the mandate using the local authority Olympia had provided.
ANOTHER COMPLICATION — THE RED LION
King County also purchased Federal Way's former Red Lion for homelessness housing.
Methamphetamine contamination was discovered and required extensive remediation, delaying its use.
Importantly, the contamination existed before the new homelessness program opened and should not be blamed on future residents.
But the delay mattered. The Federal Way Day Center continued serving people during the day without sufficient nearby overnight shelter.
2023 — THE SPACING RULE GETS TESTED
Catholic Community Services proposed converting the Stevenson Motel into an overnight emergency shelter near its existing Federal Way Day Center.
CCS saw having the facilities close together as an advantage.
Nearby businesses saw it differently. They were already concerned about drugs, disorder and impacts around the Day Center and feared another nearby facility could turn a daytime problem into a day-and-night problem.
Federal Way had a 1,000-foot spacing requirement adopted under the authority Olympia provided.
Stevenson was approximately 921 feet away — 79 feet too close.
Federal Way denied the application.
The city was using the authority Olympia had given it in the bill.
2024–2025 — LOCAL ACCOUNTABILITY
The Day Center itself later faced neighborhood and City Council concerns.
Federal Way didn't shut it down.
Instead, the City Council temporarily withheld a recommended $50,000 grant while the operator addressed problems and licensing/code compliance.
Improvements followed.
In May 2025, the Council unanimously restored the funding.
That's local accountability: support the service while still expecting problems to be fixed.
2026 — OLYMPIA CHANGES THE RULES
Then came HB 2266.
Olympia deleted the broad authority it had given cities in HB 1220 to impose reasonable occupancy, spacing and intensity-of-use requirements to protect public health and safety.
HB 2266 also says conflicting local regulations are:
“superseded, preempted, and invalidated.”
Federal Way's current 30th District lawmakers supported the change:
Rep. Jamila Taylor — HB 2266 sponsor + YES
Rep. Kristine Reeves — HB 2266 sponsor + YES
Sen. Claire Wilson — Senate companion sponsor + YES
Taylor and Wilson had also voted for HB 1220 in 2021.
Federal Way followed Olympia's rules.
The City of Federal Way spent years listening to residents and developing safeguards under authority Olympia expressly provided.
Then Olympia concluded that local regulatory barriers were constraining this housing.
So Olympia changed the rules.
That's the local-control problem with HB 2266.