(1) As provided for in RCW 36.70A.637, any city choosing the alternative density requirements in RCW 36.70A.635(4) may apply to the department for an extension for areas at risk of displacement as determined by the antidisplacement analysis that the city is required to complete under RCW 36.70A.070(2). The requirement to request an extension under RCW 36.70A.637 shall apply if a city proposes to exclude more than 25 percent of lots primarily dedicated to single-family detached units in the city and if any of those lots are identified at higher risk of displacement in the comprehensive plan. Cities may exclude up to 25 percent of the lots in the city without the department's certification, even if those lots include lots identified at higher risk of displacement in the adopted comprehensive plan. Calculation of the 25 percent must include certain lots identified in RCW 36.70A.635 (4)(b)(i) through (v).

(2) Notice of intent to apply for a certification of an extension for certain areas at risk of displacement:

(a) The city must notify the department in writing of its intention to apply for certification for an extension authorized by RCW 36.70A.637 at least 30 calendar days prior to the submittal of the formal request. Prior notification allows the department to be aware in advance of a request, anticipate the need to consult with state and other agencies and, if needed, provide technical assistance to the city on required submittal materials.

(b) The city's notice of intent to apply for approval of an extension must include:

(i) Application form;

(ii) Identification of the ordinance(s), plan(s), documents and other materials the city intends to submit to support its request for the department's certification, as best known when submitting the notice of intent;

(iii) The geographic areas to which the extension request will be made, as best known at the time of submittal of the notice of intent; and

(iv) A summary of the status of the analysis performed to support the application for approval of an alternative approach to density provision under RCW 36.70A.635(4).

(3) Public notice of intent to apply for certification of a time extension.

(a) The department will publish notice in the Washington State Register that a city has notified the department of its intent to request the certification of a time extension.

(b) The department will post a copy of the notice of intent to apply for certification of a time extension on the department website.

(c) The department will notify state agencies with expertise that a city has notified the department of its intent to apply for certification for a time extension authorized by RCW 36.70A.637.

(4) Procedures for certification of a time extension. A city's application for certification of a time extension authorized by RCW 36.70A.637 must include the following items:

(a) Formal application form;

(b) Cover letter from the city requesting the certification, to include a narrative that identifies areas that may be at higher risk of displacement as well as adopted antidisplacement policies meeting the requirements of RCW 36.70A.070 (2)(g) and (h) using data and community engagement:

(i) For cities with a population of more than 6,000 as of April 1, 2021, the city has a plan for implementing the adopted antidisplacement policies by the next implementation progress report required by RCW 36.70A.130(9) and shows that the risk of displacement for the proposed certified area(s) will be reduced over time; or

(ii) For cities with a population of 6,000 or less as of April 1, 2021, the city has provided a plan for implementing the adopted antidisplacement policies within five years of its most recent periodic review update deadline required under RCW 36.70A.130 and shows that the risk of displacement for the proposed certified area will be reduced over time;

(c) Identification of areas at risk of displacement as determined by the antidisplacement analysis that the city has completed as required by RCW 36.70A.070(2). This includes maps that specify those portions of areas at risk of displacement proposed to be certified for extension;

(d) A plan for how to implement middle housing on the temporarily excluded areas once the antidisplacement policies have been implemented;

(e) The adopted comprehensive plan housing element, and related elements, that include supporting analysis performed by the city to identify areas at high risk of displacement and which identify the city's adopted antidisplacement policies;

(f) Calculations that document that the percentages in RCW 36.70A.635 (4)(a) and (b) for lots in the city primarily dedicated to single-family detached housing units have been met;

(g) The proposed length of time for the extension request; and

(h) Any additional information that the city believes supports the request for certification of an extension.

(5) Certification determination procedures.

(a) The department must approve or deny the application within 60 calendar days of receiving a city's complete request for approval of alternative action. An application is complete when the department has received all the required information identified in WAC 365-199-060(4) including all additional information requested by the department.

(b) The department's action may, at the department's sole discretion, be extended beyond 60 calendar days.

(c) The department will issue its certification decision in the form of a written statement, including findings of fact and conclusions, the length of the extension, and noting the date of the issuance of its decision.

(d) The department will publish its certification decision on the application for determination of compliance as follows:

(i) Notify the city in writing of its determination;

(ii) Publish a notice of action in the Washington State Register;

(iii) Post a notice of its decision on the department's website; and

(iv) Notify state agencies with expertise with which department consulted and received substantive comments from regarding the request for approval.

(v) For the purposes of RCW 36.70A.290, the date of publication is the date the notice of decision is published in the Washington State Register.

(6) Subsequent extensions.

(a) If there is evidence of significant ongoing displacement risk in an area previously certified for a time extension, the department may certify one further time extension.

(b) Notice of intent to apply for an additional time extension request must be made at least six months prior to the expiration date of the original certification.

(c) The application for additional extension certification shall follow the process for an extension as described in this section; except that, the city shall also submit:

(i) Evidence of significant ongoing displacement risk in the impacted area.

(ii) Discussion of the effectiveness of the city's antidisplacement policies adopted under RCW 36.70A.070(2) and revisions to those policies necessary to address the significant ongoing displacement risk in the impacted area.

(7) Extension certification determination procedures.

(a) The department must certify or deny the application within 60 calendar days of receiving a city's complete request for certification of an extension as provided for in RCW 36.70A.637. An application is complete when the department has received all the required information identified in subsections (4) and (6) of this section including all additional information requested by the department.

(b) The department's action may, at the department's sole discretion, extend beyond 60 calendar days.

(c) The department will issue its subsequent time extension certification decision in the form of a written statement, including findings of fact and conclusions, including the length of the extension, and noting the date of the issuance of its decision.

(d) A subsequent extension of time should not exceed the length of the original time extension in years, and should, if certified, be considered the only additional time extension that will be given.

(e) The department will publish its extension certification decision on the application as follows:

(i) Notify the city in writing of its decision;

(ii) Publish a notice of action in the Washington State Register;

(iii) Post a notice of its decision on the department's website; and

(iv) Notify state agencies with expertise with which department consulted and received substantive comments from regarding the request for approval.

(f) If the department denies the request, a city may seek agency review as a brief adjudicative proceeding under RCW 34.05.482 through 34.05.494.