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03/29/2023 - PacketCity of Port Orchard Land Use Committee March 29, 2023 4:30 pm Remote access on Zoom Webinar Public Link (not to be used bV LU Committee): https://us02web.zoom.us/j/81034433449 Dial -in: 1 253 215 8782 Webinar ID: 810 3443 3449 AGENDA 1. Discussion: Housing Action Plan 2. Discussion: Planning Commission Rules, POMC 2.20 3. Discussion: April Meeting Date Agenda Item No.: Business Item ** Subject: Draft Housing Action Plan City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (36o) 876-4407 0 FAX (36o) 895-9029 Staff Report Meeting Date: March 29, 2023 Prepared by: Nicholas Bond, AICP DCD Director Atty Routing No.: NA Atty Review Date: NA Issue: A draft Housing Action Plan is nearly ready for public release but was not available for inclusion in the Land Use Committee meeting packet. If the draft plan becomes available prior to the Land Use Committee meeting, it will be sent to the committee via email. Even though the report is not quite finished, we wanted to share some preliminary recommendations from the report. The HAP will be organized by broader strategy sections including Background, Regulatory, Programmatic, Citywide Planning, and Funding strategies. Implementation of the recommendations in the report will likely proceed on a piecemeal basis with some actions that can be considered immediately and others that may require significant public outreach or which may need to be incorporated into the Comprehensive Plan Update. 1— Background Information: 1.X — Project Purpose: This section summarizes the Project's Purpose. 1.X — Housing Needs: Relies heavily on the Existing Conditions Report to demonstrate the need for the Plan. Provides description of current, historic and forecasted growth rates while describing the socioeconomic status of community households and comparisons to County and Statewide data. This section will describe housing affordability in the community. 1.X— Racially Disparate Impacts: This Housing Action Plan provides a number of strategies to address most of these issues, which focus on easing regulations and streamlining standards to make it easier to build middle housing and multifamily housing in more locations. 1.X — Public Engagement: This section summarizes Public Engagement efforts and documents results. 1.X—State Law Updates: Port Orchard should anticipate state preemption on several common types of development regulations which have some of the greatest impacts on housing affordability and site -specific feasibility. This section recognizes the current legislative session's work related to housing. 2 — Regulatory Strategies: The City's development regulations influence the form housing takes in the City. This section identifies potential barriers to housing development and suggests actions which may remedy some of that. 2.1—Allowed Uses 2.1.X — R2 Zone: Port Orchard: This section identifies R2 as the predominant district in Port Orchard and suggests allowing multifamily dwellings (3 or 4 units) by right. 2.1.X— BPMU and NMU Zones: Suggests allowing apartments as a building type in these districts. 2.1.X — Single Room Occupancy Housing: Suggests streamlining standards for single -room occupancy (SRO) housing and addressing congregate living facilities. 2.1.X—Adult Family Homes: Suggests updating the standards and definition under POMC 20.39.100(10) to be consistent with state legislation passed in 2020. 2.1.X — Supportive Housing: Port Orchard's current regulations are consistent with RCW 35A.21.430, but Gateway Mixed Use district should be updated to allow permanent supportive housing or transitional housing. Also suggests updating the design standards applicability to supportive housing uses. 2.2 — Building Types: Suggests some simplification to this section and incorporation of some of the dimensional requirements into the land use and residential design standards. This suggested edit is intended to make this section more user friendly. 2.2.X — Adjust Cottage Court Standards: Suggests removing the minimum site size, adjusting the minimum courtyard size standards, and allowing duplex cottages. 2.2.X — Consolidate Duplex Types and Standards: Suggests consolidating "Duplex: Side -by -Side", "Duplex: Back -to -Back", and "Attached House" into a single building type called "Duplex." 2.2.X — Rename the Fourplex Type: Suggests renaming this building type as the building type allows three units which is misleading. 2.2.X — Adjust Townhouse Type Standards: Suggests removing the minimum site size and width, not requiring townhomes to be on their own lots, and allowing townhouses to be narrower than 20 feet 2.2.X — Consolidate the Live -Work Type: streamlining the code and integrating this building type into the townhouse building type. 2.2.X — Adjust Shopfront House Standards: Suggests increasing the number of dwelling units permitted on a Lot to create flexibility. 2.2.X — Building Height: Suggests removing building type height limits and relying solely on the zoning regulations to address height limits. 2.2.X — Ground Floor Elevation: Suggests removing minimum ground floor elevation from every building type. 2.2.X — Blank Walls: Suggests removing blank wall regulations from Building Type section and rely on design standard sections. 2.3 — Adjust Form & Intensity Standards 2.3.X—Adjust Minimum Lot Dimensions: Suggests regulating minimum lot width by zone and alley access rather than by building type. This is intended to streamline standards and promote fairness in how middle housing is treated. 2.3.X—Adjust Height Limits and Add Affordable Housing Bonuses: Suggests building height limit increases to increase the economic feasibility of multifamily and mixed -use development. New bonus height limits associated with the multifamily tax exemption (MFTE) program can also be used to incentivize greater production of multifamily housing generally and affordable (subsidized) housing. 2.3.X—Add Minimum Density and Housing Mix Requirements: Suggests creating a minimum density requirement to leverage public infrastructure investments and maximize the efficiency of land where compact and walkable development is desired. 2.3.X — Religiously -Owned Land Density Bonus: Suggests to be consistent with state requirements, implementing an update to underlying zoning, creation of a new overlay zone, or property -specific development agreements to allow density bonuses to religiously owned land. 2.4 — Adjust Other Standards 2.4.X — Family Definition: Suggests amending the definition of "family" under POMC 20.12.010 to be consistent with state law RCW 35A.21.314. (1) A group of ^^* m^-- *"^^ four related and unrelated adults and their related minor children, but net t ead a t t l f gtit - i, ted and . in elated p ns; 2.4.X — Usable Residential Open Space: Suggests minor adjustments to improve the clarity of the open space standards for multifamily and mixed -use housing developments. 2.4.x — Elevator Penthouse: Suggests increasing height limit exceptions for elevator infrastructure. 2.4.X — Parking Lot Landscaping: Suggests reducing and simplifying minimum planting area widths to allow more efficient use of land in POMC 20.128.070(3) 2.4.X — Service Areas and Mechanical Equipment: Suggests minor clarifications to be made about applicability to offer some more flexibility under POMC 20.127.360. 2 2.4.X — Building Materials: Suggests updating POMC 20.127.450(2) to clarify the applicability of durable materials on the ground floor. 2.4.X — Blank Wall Standards: Suggests updating the applicability for blank wall treatment standards to reduce construction cost impacts 3 — Programmatic Strategies 3.1 - Anti -Displacement Strategies: Suggests adopting local tenant protections and consider other regulatory and programmatic anti -displacement actions to improve the stability of renter households. 3.1.X — Local Tenant Protections: Suggests a menu of options as a basis for continued discussion by decision makers. 3.1.X - Other Anti -Displacement Strategies: Suggests strategic acquisition of existing multifamily housing in coordination with Housing Kitsap, tenant legal services, programs for tenant opportunities to purchase, rental assistance programs, housing rehabilitation, and other similar programs. 3.2 — Homelessness Strategies: Suggests strengthening coordination between the City and local homelessness support services and adopt a "Housing First" approach. 3.2.X — Coordination: Suggests continuation of working with Kitsap County and service providers to provide outreach and offers for service and shelter for homeless individuals 3.2.X—Adopt a "Housing First" Approach: Suggests eliminating bureaucratic steps and places no criteria on sobriety, employment, criminal history, or completing a religious program before individuals are moved into a home. Decades of research have found that helping homeless people move off the street and into a home of their own is the most effective way to reduce long-term (chronic) homelessness for the most vulnerable people. 3.3 - Support Staffing Needs: Suggests funding, recruiting and hiring a housing coordinator to help implement the HAP, connect and collaborate with housing stakeholders, and promote more market -rate and affordable housing development in Port Orchard. 4 — Citywide Planning Strategies: Suggests actions related to the City's budget and updating the Comprehensive Plan. 4.X — Housing Element Updates: Suggests in the next Comprehensive Plan update, update the Housing Element to support the actions of the HAP and integrate new provisions required by state law. 4.X — Land Use Element Updates: Suggests reviewing the Land Use Element for potential updates on the following issues. 4.X.X — Corridor Zoning: Suggests reviewing the balance between residential and commercial land capacity and adjust the future land use map. 4. X.X — Commercial Uses in Residential Zones: Suggests reviewing the opportunity for allowing small neighborhood commercial uses in residential neighborhoods. 4. X.X — Parking: Suggests reviewing the need for minimum parking requirements citywide and review national case studies for best practices. 4.4 — Public Land for Affordable Housing: Suggests the consideration of rezonings, environmental assessments, pre -development activities, and partnerships to promote use of surplus public land for affordable housing. 4.4.X — Disposition Policy: Suggests formally adopting a surplus land disposition policy that gives the right -of -first -refusal to affordable housing developers or other community -determined uses. 4.4.X — Land Acquisition: Suggests the City identify and purchase underutilized or vacant properties that can be developed as affordable housing. 5 — Funding Strategies: Suggests actions related to the financing and funding of affordable housing and related issues like taxes, fees, and state law. 5.1 - Multifamily Tax Exemption Program 3 5.1.X— MFTE Overview: Suggests updating the MFTE program based on increased developer interest in multifamily and mixed -use projects to streamline requirements, balance affordability and foregone tax revenue, and take advantage of increased flexibility in statewide legislation. 5.1.X — Recommendations: Suggests — • Clarification of map and zoning of areas of MFTE eligibility, • Correcting definition of underutilized buildings, • Adding minimum density in units per acre to multifamily and mixed -use zones, considering changes to the method of income calculations for affordable units and conduct an audit of the program, • Considering removing transit proximity for affordable units, • Considering a height bonus for MFTE developments, • Streamlining requirements for Type 3 program, • Reducing the minimum number of units required for participation, and • Considering adding a 20-year MFTE program 5.X — Development Fee Adjustments: Suggests adjusting development fees for 2-4 unit buildings and some fee discounts for affordable housing while continuing to offer sewer and water exemptions for small ADUs. 5.X — Local Bank Funding: Suggests encouraging local banks to create a fund for affordable housing finance 5.X—Tax Increment Financing: Suggests exploring the potential to use Tax Increment Financing (TIF) for identified sites and projects in the Downtown and Waterfront areas. 5.X — Funding for ADU Development: Suggests exploring the possibility of partially financing or streamlining ADU development and permitting processes, particularly for lower -income homeowners. 5.X — Transit and Sidewalk Funding: Suggests evaluating expansion of the transportation benefit district to increase funding for transportation projects connecting housing to services. 5.X — State Advocacy: Suggests advocating for additional state investment in the Housing Trust Fund, condominium law reform, and Growth Management Act updates. 6 — Implementation: Suggests a planning matrix organizing the actions of the HAP. The City Council and Mayor will be involved in most or all action implementation through ordinances, resolutions, budgeting, and partnerships with other agencies. 6.X— High Priority Implementation: Identifies issues of high priority for implementation within the next 12 months. 6.X — Monitoring: Suggests developing a monitoring program to measure and report on outcomes related to housing actions. 4 Chapter 2.20 PLANNING COMMISSION Sections: 2.20.010 Planning commission created. 2.20.020 Planning commission positions, terms, and term ending dates. 2.20.030 Powers and duties. 2.20.040 Recommendations to council. 2.20.050 Repealed. 2.20.060 Meetings of commission — Records. 2.20.070 Quorum. 2.20.080 Annual report to council. 2.20.010 Planning commission created. Pursuant to Chapter 35.63 RCW, there is created a city planning commission, which shall consist of seven members appointed by the mayor and confirmed by the city council; six shall be residents of the city and one may be a nonresident of the city except the mayor and city council may, by council resolution, temporarily extend the term of a commissioner who, during his or her term, moves out of the city, to provide for continuity of specific projects or planning processes. (Ord. 036-20 § 2; Ord. 025- 11 § 1; Ord. 1566 § 1, 1992; Ord. 1129, 1980; Ord. 704 § 1, 1962; Ord. 521 § 1, 1946). 2.20.020 Planning commission positions, terms, and term ending dates. (1) Planning commissioner terms shall be four years in length. There shall be seven planning commissioner positions to be known as Position 1, Position 2, Position 3, Position 4, Position 5, Position 6, and Position 7, respectively. The current term expiration for each of the respective planning commission positions as of the date of the ordinance codified in this chapter is as follows: Position Term Expiration Position 1 December 31, 2020 Position 2 December 31, 2020 Position 3 December 31, 2021 Position 4 December 31, 2022 Position 5 December 31, 2023 Position 6 December 31, 2023 Position 7 December 31, 2023 (2) Upon expiration of the terms of each position as provided in subsection (1) of this section, reappointments or successors shall be appointed by the mayor for the term of four years each. When an appointment by the mayor is to fill an open position prior to the end of the term, then the person so appointed shall serve out the term of the position into which he or she has been appointed. (Ord. 036- 20 § 2). 2.20.030 Powers and duties. The planning commission shall have all of the powers and perform each and all of the duties specified by Chapter 35.63 RCW, together with any other duties or authority which may hereafter be conferred upon them by laws of the state of Washington, the performance of such duties and the exercise of such authority to be subject to each and all the limitations expressed in Chapter 35.63 RCW. (Ord. 036-20 § 2; Ord. 521 § 2, 1946. Formerly 2.20.020). 2.20.040 Recommendations to council. The city council may refer to the planning commission for its recommendation and report, any ordinance, resolution or other proposal relating to any of the matters and subjects referred to in Chapter 35.63 RCW, and the commission shall promptly report to the council thereon, making such recommendations and giving such counsel as it may deem proper. (Ord. 036-20 § 2; Ord. 521 § 3, 1946. Formerly 2.20.030). 2.20.050 Plats submitted to commission. Repealed by Ord. 047-07. (Ord. 521 § 4, 1946. Formerly 2.20.040). 2.20.060 Meetings of commission — Records. The commission shall elect its own chairman and create and fill such other offices as it may determine it requires. In general, the commission shall hold a regular meeting once per month; however, during any month, the chair of the commission or the city's planning director may determine that there are no review items requiring the planning commission to hold a regular meeting and conduct business during that month; or, that there are review items requiring the planning commission to hold a regular meeting and conduct business more often than once during that month. All meetings shall be open to the public and shall be noticed in accordance with Chapter 42.30 RCW. It shall adopt rules of transaction of business and shall keep a written record of its meetings, resolutions, transactions, findings and determinations, which record shall be of public record. (Ord. 036-20 § 2; Ord. 521 § 5, 1946. Formerly 2.20.050). 2.20.070 Quorum. Four members of the planning commission shall constitute a quorum for the transaction of business. Any action taken by a majority of those present at any regular meeting of the planning commission shall be deemed and taken as the action of the commission. (Ord. 036-20 § 2; Ord. 704 § 1, 1962; Ord. 521 § 6, 1946). 2.20.080 Annual report to council. The planning commission, at or before its first regular meeting in February of each year, shall make a full report in writing to the city council of its transactions and expenditures, if any, for the preceding year, with such general recommendations as to matters covered by its prescribed duties and authority as may to it seem proper. (Ord. 036-20 § 2; Ord. 521 § 7, 1946).