HB-1337 Explained
Learn how DADU real estate law can help homeowners in dense urban areas like Seattle, Tacoma, and Everett recognize highest and best use of their property.
HB-1337: The “Once-in-a-Generation Law” That Could Change What Your Lot Is Worth
Most homeowners have no idea this happened. HB-1337 quietly rewrote what you’re allowed to build and sell on your own property — and for many lots inside the Urban Growth Area (UGA), it unlocked value that was simply off-limits before.
DADU — Detached Accessory Dwelling Unit
A separate, standalone home built on the same lot as your main house — like a full backyard cottage with its own kitchen, bath, and entrance. “Detached” simply means it’s its own building, not attached to your house.
UGA — Urban Growth Area
What is Condominiumization?
Many people hear the word “condominium” and think of a type of building. In reality, a condominium is a form of ownership, not a type of structure.
Before HB-1337, homeowners who wanted to create separate ownership for multiple homes on a single property typically had to go through a formal subdivision process. That process could be expensive, time-consuming, and subject to extensive local/municipal review.
HB-1337 introduced a simpler alternative. Instead of subdividing the land, property owners can use condominiumization to create separate ownership interests for the homes on the property. This allows a main house and DADUs to be owned and sold separately without going through the traditional subdivision process.
The key difference is that condominiumization creates separate ownership rights rather than new land lots. In practice, however, it can achieve a very similar outcome: multiple independently owned homes on what was originally a single residential property.
In simple terms, HB-1337 lets you achieve many of the benefits of a subdivision—separate ownership and sale of individual homes—without having to formally subdivide the property.
What the HB-1337 DADU Legislation Could Mean for You as a Homeowner
Inside the UGA, HB-1337 allows two DADUs (Detached Accessory Dwelling Units — think standalone backyard homes) per lot. And you get them without a lot split (HB-1096) or subdivision (SB-5559). In practice, that’s like discovering two buildable lots you never knew you owned — no lengthy municipal subdivision process required.
Rent to Anyone – You Don’t Have to Live There
The old rules required homeowners to live on the property in order to rent out a DADU. HB-1337 eliminated those owner-occupancy requirements, meaning you can rent the DADU to anyone—not just family members—and you do not have to live in the main house. This also makes DADUs a powerful addition to rental properties, allowing owners to generate rental income from both the primary home and the DADU.
The law legalized the separate sale of DADUs and/or your main home as individual “units.” Instead of one property that only sells as a whole, you may be able to sell each home on its own.
HB-1337 puts the choice in your hands: create separate ownership for the main house and DADU through condominiumization, or keep both homes under a single ownership. There’s no obligation either way—just a new option that didn’t exist before.
What's the Next Step?
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Why This is Genuinely a “Once-in-a-Generation” Change
Zoning rules this restrictive stood for decades. In one stroke, HB-1337 turned a single-home lot into a potential multi-home, multi-owner opportunity — more housing, more rental income, and more flexibility to sell. For property owners inside the UGA, this is one of the most significant shifts in a lifetime, and most people still don’t know it’s on the books.
If you live in Seattle or any other city urban growth area in Snohomish, King, or Pierce County and are pre-approved for DADU, we can help you move forward with financing and building planning. Contact SkyDADU today.
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