All Forum Posts by: Tim Cornwell

Unlocking Housing Opportunities: Understanding Washington's House Bill 1110

Washington State is taking a bold step toward addressing its housing crisis with the introduction of House Bill 1110, a groundbreaking piece of legislation aimed at expanding middle housing across the state.

What Does House Bill 1110 Do?

House Bill 1110 mandates that cities with populations over 75,000 allow at least four units per lot in traditionally single-family zones. This number can increase to six units if the lot is near major transit stops or if a portion of the units are designated as affordable housing. This move is designed to increase housing density, diversify housing options, and ultimately make housing more attainable for Washington residents.

Why It Matters

This legislation is crucial in addressing the state's housing shortage. By allowing more units on a single lot, cities can accommodate more residents without needing to expand their urban footprint. This approach supports sustainability, reduces urban sprawl, and makes better use of existing infrastructure.

What about Whatcom County?

In Whatcom County, the demand for housing is projected to grow significantly over the next decade. The need is projected at over 34,000 housing units. The county's comprehensive plan is being updated to accommodate this growth, including the expansion of urban growth areas and revising land use regulations. With the city of Bellingham planning for a 30% population increase over the next 20 years, the need for diverse and accessible housing options has never been greater.

Looking Ahead

With a target of adding over a million homes by 2044, House Bill 1110 represents a significant stride toward meeting the growing demand for housing, particularly in high-demand areas like King County and Whatcom County. 

By fostering more inclusive and varied housing types, this bill paves the way for a more vibrant and resilient community fabric.House Bill 1110 is more than legislation — it’s a doorway to new possibilities for homeowners, investors, and communities across Washington. 

If you're in Whatcom County and wondering what this means for your property, development potential, or next move — I’m here to help you make sense of it all and take strategic action.

What Is Middle Housing? Understanding the “Missing Middle” in Washington

Washington is in the midst of an affordable housing and homelessness crisis. — Washington State Department of Commerce, 2024–2029 Homeless Housing Strategic Plan

In response to this crisis, lawmakers and local governments have been reimagining how we use land and what types of homes we allow in our neighborhoods. One key concept at the heart of this change is middle housing—but what exactly does that mean?

🔍 What Is Middle Housing?

Middle housing refers to a range of multi-unit, house-scale buildings that fit in seamlessly with traditional single-family neighborhoods. These include:

• Duplexes

• Triplexes

• Fourplexes

• Townhomes

• Cottage clusters

• Courtyard apartments

• Accessory dwelling units (ADUs/DADUs)

They are called “middle” not because of their size, but because they fill the gap between detached single-family homes and large apartment complexes.

📉 Why Is Middle Housing “Missing”?

For decades, local zoning laws across Washington (and the country) have made it nearly impossible to build anything other than single-family homes in most residential areas. This has created a shortage of smaller, more affordable housing options that could serve:

• Young families,

• First-time buyers,

• Retirees wanting to downsize, and

• Middle-income workers who can’t afford today's prices.

This “missing middle” has contributed to skyrocketing home prices, longer commutes, and displacement.

🏗️ A New Vision for Neighborhoods

Middle housing is part of a smarter, more inclusive approach to urban planning. It allows cities to:

• Add gentle density without high-rises,

• Make better use of existing infrastructure,

• Provide walkable, livable communities, and

• Create new opportunities for local builders, investors, and homeowners alike.

💬 What This Means for You

Whether you're a homeowner, investor, or simply someone who cares about your neighborhood, middle housing is opening up new doors—literally and figuratively. It allows you to be part of the solution to the housing crisis while building long-term wealth and impact.

📣 In the next post, we’ll break down House Bill 1110, a landmark law that’s reshaping zoning statewide. You won’t want to miss it.

Not 5%...but at a point where the original equity can be returned and the property still cash flows.

Would love to hear more about the platform you mentioned.

Our NOI is around $150,000 currently. Would love a return of original equity.

Jaycee,

I believe we were at a 1.25 DSCR. We have not re-financed yet. Waiting for rates to drop

Solving the Housing Crisis

What Is “Middle Housing” and Why It Matters in Washington Right Now
By Tim Cornwell | Real Estate Agent | Investor

We’re in the midst of an unprecedented shift in housing policy here in Washington State.

If you’re someone who pays attention to zoning, infill, or housing affordability, you may have come across the term “middle housing.” It’s starting to show up more and more in local government plans, developer meetings, and investment strategies—and for good reason.
Middle housing refers to small-scale, multi-unit housing types like duplexes, triplexes, fourplexes, townhomes, courtyard apartments, and cottage clusters—typically built within existing single-family neighborhoods.

For decades, most neighborhoods have been zoned exclusively for single-family homes. That worked for a while. But over time, it contributed to sprawl, higher housing prices, and a severe shortage of attainable housing.

Why This Matters Now
Washington State passed two major pieces of legislation in 2023 that directly affect this conversation:
• House Bill 1110 – Requires most cities to allow at least 2 to 4 units per residential lot in areas previously zoned single-family only.
• House Bill 1337 – Expands the legal use of accessory dwelling units (ADUs), allowing up to two per lot and removing many previous restrictions. Combined, these bills represent a fundamental change in how we think about land use.

And they’re arriving at a critical time. As the Washington State Department of Commerce puts it in their most recent five-year plan:“Washington is in the midst of an affordable housing and homelessness crisis.” — 2024–2029 Homeless Housing Strategic Plan
The goal behind these new laws? Add at least 1 million new homes by 2044—not by paving over farmland or building endless subdivisions, but by reimagining what’s possible in the neighborhoods we already have.

This isn’t just a city planner’s dream or a legislative talking point. It’s a real opportunity for homeowners, investors, and communities to respond to rising demand for diverse, attainable housing—with more flexibility than ever before.

Why I’m Paying Attention...
For those of us who work in real estate daily—whether investing, selling, building, or advising—these new laws change the landscape.
Properties that used to support one home may now support two, four, or even six units, depending on location, lot size, and proximity to transit.

That means:-There is hidden value in older properties and large lots

- More creative paths to cash flow

- New ways to help people find housing and build wealth

-Potential for more affordable housing 

-Opportunity for multi-generational housing on a single lot

Let’s Explore This Together

- What’s your take on middle housing?- Have you seen local changes already?- What questions do you have about what’s coming?

Drop a comment below—I’d love to hear your thoughts.—Tim Cornwell

Investment Info:

Large multi-family (5+ units) buy & hold investment in Bellingham.

Purchase price: $1,730,000
Cash invested: $550,000

10 unit multi family building purchased with 5 members of our real estate agent team. We formed a multi member LLC.

What made you interested in investing in this type of deal?

Cash flow, upside, rents were low

How did you find this deal and how did you negotiate it?

It was listed on the MLS. It was pending inspection and came back on market on a Saturday. Wrote an offer immediately.

How did you finance this deal?

Bank financing

How did you add value to the deal?

Rents at the time were well below market. Used the income approach to value and met the DSCR requirements of the lender and were able to negotiate a price lower than list price with the seller.

What was the outcome?

Increased rents over the past 3 years to market rent and thus increased the NOI and value of the building by 50%

Lessons learned? Challenges?

Should have locked into a fixed rate loan instead of floating. Got hit when loan reset but fortunately still has strong cash flow.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am an agent and did my own deal! I used a local lender called SaviBank and they did a great job. I do have to give credit to what I've learned from Grant Cardone about investing in apartments.

Would love to see some renderings/elevations!

This is epic! I would love to come by and take a look next time I'm in the area. Good on you take the big leap!