(1) A city or county planning under RCW 36.70A.040 may not require façade modulation or upper-level setbacks as a condition of permitting the following types of residential projects:
(a) Affordable housing;
(b) New construction meeting passive house requirements;
(c) The retrofit of existing buildings meeting passive house requirements;
(d) The conversion of existing buildings to housing or mixed-use development that includes housing;
(e) Modular construction; or
(f) Mass timber construction.
(2) For the purposes of this section:
(a) "Façade modulation" means a change in building plane, either a recess or a projection, that changes the shape of the exterior massing of the building.
(b) "Mass timber construction" means a building with structural components primarily made of mass timber products as defined in RCW 19.27.570.
(c) "Modular construction" means a multistory residential or commercial building constructed of standardized components produced off-site, which are transported and assembled at a final location.
(d) "Passive house requirements" means the criteria for certification as a passive house by Phius or the international passive house institute.
(e) "Upper-level setback" means a required distance between the lot line and the building façade applied only to portions of the building above a specified height.