05 May 2, 2023, Planning Commission Meeting PacketCITY OF PORT ORCHARD
Planning Commission
216 Prospect Street, Port Orchard, WA 98366
(36o) 874-5533 planning@cityofportorchard.us
PLANNING COMMISSION MEETING AGENDA
Tuesday, May 2nd, 2023 — 6:00 pm
*** Attendees and Planning Commissioners may attend in person at City Hall or via Zoom***
Join Zoom Meeting, Public Link: https://us02web.zoom.us/i/86180242823
Dial -in (phone audio) only: + 1253 215 8782
Webinar ID: 8618024 2823
Planning Commissioners please use individual webinar links.
1. Call to Order: 6:00 p.m.
Pledge of allegiance.
2. Welcome and Introduction.
Planning Commission and City Staff Introductions.
3. Audience Comments: Topics not listed for public hearing on tonight's agenda.
Please limit comments to 3 minutes.
4. Approval of Minutes from April 4, 2023. (Attachment)(ACTION)
5. Business Items:
a) PUBLIC HEARING: LR23-CODE AMENDMENT-05 (Counter Completeness)
(Attachment) (ACTION)
The City of Port Orchard is considering an Ordinance adopting revisions to Port Orchard Municipal Code
20.24.040 to provide clarification on electronic submittals, timing of fee payment and the timeline to
determine an application counter complete.
Staff Contact: Jim Fisk, Senior Planner
b) PUBLIC HEARING: Housing Action Plan (Attachment)(ACTION)
The City of Port Orchard is considering the adoption of a Housing Action Plan (HAP) which identifies
strategies, actions, and policy tools to create enough housing options to meet community needs. The HAP
is a policy document with a set of steps for the City to support and encourage new housing production
that meets local housing needs for residents of all income levels.
Staff Contact: Jim Fisk, Senior Planner
c) DISCUSSION: Planning Commission Rules (Attachment)
The City of Port Orchard is considering revisions to Port Orchard Municipal Code 2.20 for clearer
guidance and regulations for the Planning Commission.
Staff Contact: Josie Rademacher, Assistant Planner
d) DISCUSSION: Director's Report
Staff Contact: Nick Bond, Community Development Director
6. Adjourn
Next Planning Commission Meeting — June 6, 2023
CITY OF PORT ORCHARD
Planning Commission Minutes
216 Prospect Street, Port Orchard, WA 98366
Phone: (36o) 874-5533 • Fax: (36o) 876-498o
Planning Commission Meeting Minutes
April 4, 2023
Hybrid Zoom Teleconference
COMMISSIONERS:
Present: Bek Ashby, Tyler McKlosky, Dave Bernstein, and Paul Fontenot.
Absent: Annette Stewart, Stephanie Bailey, and Joe Morrison.
STAFF:
Nicholas Bond Community Development Director, Senior Planner Jim Fisk, and Assistant Planner Josie
Rademacher.
1. CALL TO ORDER: Chair Stewart called the meeting to order at 6:03 p.m. and led the Pledge of
Allegiance.
2. WELCOME AND INTRODUCTION: Chair Ashby introduced the present Planning Commissioners,
Vice Chair McKlosky, Commissioner Bernstein, and Commissioner Fontenot and present City staff
members, Community Development Director Nick Bond, Senior Planner Jim Fisk, and Assistant
Planner Josie Rademacher.
3. PUBLIC COMMENTS: Public comment was open to any subject not related to the public hearing. There
were no comments from the public regarding issues not on the agenda.
4. APPROVAL OF MINUTES FROM MARCH 7, 2023: Commissioner McKlosky made a motion to
approve the minutes as presented from the March 7" meeting. Commissioner Bernstein seconded the
motion. The motion passed unanimously.
5. BUSINESS ITEMS:
A. STATE OF THE CITY, MAYOR'S REPORT PRESENTATION
Mayor Ron Putaansuu gave an annual report and presentation on the State of the City. The
presentation addressed projects accomplished by the City in 2022 as well as future projects.
B. HOUSING ACTION PLAN PRESENTATION
Senior Planner Jim Fisk introduced that the City of Port Orchard is currently developing a Housing
Action Plan (HAP) to identify strategies, actions, and policy tools to create enough housing
options to meet the community's needs. Fisk stated that at February's Planning Commission
meeting, staff provided an Existing Conditions Report update revealing that housing production in
Port Orchard falls short on what is needed, putting pressure on housing prices, rents, and limiting
housing options for Port Orchard's lowest -income households.
Fisk stated that City Staff and the City's consultant team, Maker's Architecture, have developed
the first draft of the Housing action Plan. The first draft of the Housing Action Plan is included in
tonight's packet for review. Fisk introduced that the City's consultant, Maker's Architecture, will
be giving a presentation tonight outlining the main elements of the Housing Action Plan thus far.
Scott Bonjukian, from Maker's Architecture, and Andrew Oliver, from Leland, gave the
presentation on the main elements proposed in the draft Housing Action Plan document.
C. POMC 2.20 PLANNING COMMISSION
Assistant Planner, Josie Rademacher shared that City staff were made aware of a lack of
regulations and guidance for the Planning Commission's activities and that some regulations
would be helpful for the Planning Commission in carrying out their duties. Rademacher stated that
while Port Orchard Municipal Code 2.20 provides some direction for the Commission, it does
deserve some attention and potential updates.
Rademacher stated that in tonight's packet City staff has provided the current language from
POMC 2.20, and examples of Planning Commission regulations from nearby communities
including Poulsbo, Gig Harbor, Bainbridge Island, and Bremerton for the Planning Commission's
review. Rademacher stated that the Planning Commission should consider the direction it would
like to take and provide feedback to staff should they choose to amend POMC 2.20.
D. POW 20.24.040 COUNTER COMPLETENESS
Senior Planner, Jim Fisk shared that Port Orchard Municipal Code 20.24.040 provides
requirements for determining applications to be counter complete. Fisk stated that the
determination of counter completeness is important to the City and to applicants in determining
submittal date and determining permitting timelines.
Fisk stated that since the adoption of POMC 2.24.040, the City has seen an increase in electronic
submittals and while the interpretation of the existing code has allowed the City to maintain
acceptable processing periods, clarifying electronic submittals and the payment of associated
permitting fees should provide more certainty to all users of this section of Code.
Fisk stated that staff proposes amending POMC 20.24.040 as described in the attached redline
version of POMC 20.24.040 to provide clarification on electronic submittals, timing of fee
payment and the timeline to determine an application counter complete. The current language in
the code, and the proposed language to be included in an ordinance, are presented for the Planning
Commission's review.
The Planning Commission is requested to hold a public hearing at the May 2, 2023, Planning
Commission meeting.
E. DIRECTOR'S REPORT
Community Development Director, Nick Bond, shared information on a training opportunity for
Planning Commissioner's and Elected Officials through Puget Sound Regional Council (PSRC) on
the Comprehensive Plan Update Process, that will be held on May 18t', from 12-1:30pm.
Bond also shared information on the new key cards handed out to Planning Commissioner's and
the times that the key cards work for access to City Hall to collect packets.
Page 2 of 3
ADJOURN: Chair Ashby adjourned the meeting at 8:00 pm.
Bek Ashby, Chair
Nick Bond, Community Development Director
Page 3 of 3
CITY OF PORT ORCHARD
DEPARTMENT OF COMMUNITY DEVELOPMENT
216 Prospect Street, Port Orchard, WA 98366
Ph.: (36o) 874-5533 • FAX: (36o) 876-4980
PLANNING COMMISSION STAFF REPORT
Agenda Item No: 5(a) Meeting Date: May 2, 2023
Public Hearing - Revisions to
Subject:
POMC 20.24.040 Counter
Completeness
Prepared by: Nick Bond, Development
Director
Issue: Port Orchard Municipal Code (POMC) Chapter 20.24.040 provides contains requirements for
determining applications to be counter complete. The determination of a counter complete application is
important to the City and to applicants in determining submittal date and calculating permitting timelines.
Since the adoption of POMC 20.24.040 the City has seen an increase in electronic submittals and while the
interpretation of the existing code has allowed the City to maintain acceptable processing periods,
clarifying electronic submittals and the payment of associated permitting fees should provide more
certainty to all users of this section of Code.
Staff introduced the proposed amendment to POMC 20.24.040 at the April 4, 2023 Planning Commission
meeting. Since introduction, the City of Port Orchard SEPA Responsible Official issued a Determination of
Nonsignificance (DNS) on April 10, 2023. Staff notified the Department of Commerce of the proposed
changes after the issuance of the DNS and requested 15-day expedited review on April 10, 2023.
Public notice for the tonight's public hearing was properly noticed consistent with the requirements of
POMC 20.25 on April 18, 2023. As of the date of Report preparation, the Department of Community
Development has not received comments regarding the proposed code amendment or the DNS.
The proposed language to be included in the ordinance, are presented for the Planning Commission's
review and recommendation to the City Council.
Recommendation: : Staff recommends approval of the proposed amendments to POMC 20.24.040.
Suggested Motion: "I move to recommend that the City Council approve an ordinance amending Port
Orchard Municipal Code 20.24.040, as presented.
Attachments: Ordinance
ORDINANCE NO. -23
AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON, ADOPTING
REVISIONS TO PORT ORCHARD MUNICIPAL CODE (POMC) 20.24.040 TO PROVIDE
CLARIFICATION ON ELECTRONIC SUBMITTALS, TIMING OF FEE PAYMENT AND THE
TIMELINE TO DETERMINE AN APPLICATION COUNTER COMPLETE; PROVIDING FOR
SEVERABILITY AND CORRECTIONS; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, on June 13, 2017, the Port Orchard City Council adopted ordinance 019-17
establishing a new unified development code (Title 20 POMQ and
WHEREAS, the City may adopt amendments to the City's development regulations
pursuant to RCW 36.70A.106; and
WHEREAS, the City Council desires to amend POMC Chapter 20.24.040 (Counter -
completeness) in order to provide clarification on electronic submittals, timing of fee payment
and the timeline to determine an application counter complete.; and
WHEREAS, on April 10, 2023, the City submitted to the Department of Commerce a
request for expedited review of the proposed revision POMC 20.24.040, pursuant to RCW
36.70A.106(3)(b); and
WHEREAS, on April 10, 2023, the City's SEPA official issued a determination of non -
significance for the proposed adoption of revisions POMC 20.24.040, and there have been no
appeals; and
WHEREAS, on May 2, 2023, the Planning Commission held a duly -noticed public hearing
on the proposed adoption of revisions to POMC 20.24.040, and the Planning Commission
recommended approval of the proposed ordinance to the City Council; and
WHEREAS, the City Council, after careful consideration of the recommendation from the
Planning Commission, all public comment, and the Ordinance, finds that this Ordinance is
consistent with the City's Comprehensive Plan and development regulations, the Growth
Management Act, Chapter 36.70A RCW, and that the amendments herein are in the best
interests of the residents of the City and further advance the public health, safety and welfare,
now, therefore,
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS
IQ XVI&I
SECTION 1. The City Council adopts all of the "Whereas" sections of this ordinance as
findings in support of this ordinance.
Ordinance No. -22
Page 2 of 3
SECTION 2. The Port Orchard Municipal Code, Section 20.24.040 is hereby amended to
read as follows:
20.24.040 Counter -completeness.
(1) Applications may eitheF be submitted to the city in any of the following
manners: brought in person to the city, eF applicatiens may be mailed to the city,
or submitted electronically using the city's online permits system. All three of
these systems are acceptable methods for counter -complete review. However,
in no case will an application be deemed counter -complete until such time as the
minimum required permit fee is remitted in full.
(2) An application is counter -complete if the director finds that the application
purports and appears to include the information required by the master permit
application and associated permit application(s) and all required fees have been
paLid; provided, no effort shall be made to evaluate the substantive adequacy of
the information in the application(s) in the counter -complete review process. No
effort shall be made to determine ownership of land as part of the counter -
complete review process.
(3) The director shall make a counter -complete determination regarding an
application brought in person to the city while the applicant is present. If the
director decides that the application is counter complete, then the applicant
shall pay the appropriate fees at the time of submittal. For applications mailed to
the city or submitted electronically, the counter -complete determination shall be
made within two business days from the date of receipt of all application
components, including the receipt of any required fees. If the city does not
provide a counter -complete determination for a mailed application, the
application shall be deemed counter -complete as of the third business day from
receipt provided that all fees are included with the mailed application. If the city
does not provide a counter -complete determination for an electronically
submitted application, the application shall be deemed complete within five
business days of the online submittal only if the fees are received no later than
four business days following the submittal. No application shall be automatically
deemed counter -complete due to the passage of time unless the fees are timely
received in accordance with this section.
(n�f the d*F26tAer dd 26*{ e s the aPPI*Gat_iA_.A *SC� ,AeF complete, *tee
appliGatieR may besu .itted- -A.Ad- the appppFepp�Fiate fee be paid by rh
Ordinance No. _-22
Page 3 of 3
(154) If the director decides the application is not counter -complete, then the city
shall reject and return the application and identify in writing what is needed to
make the application counter -complete.
SECTION 3. Severability. If any section, sentence, clause or phrase of this ordinance
should be held to be invalid or unconstitutional by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity of constitutionality of any other
section, sentence, clause or phrase of this ordinance.
SECTION 4. Corrections. Upon the approval of the city attorney, the city clerk and/or
code publisher is authorized to make any necessary technical corrections to this ordinance,
including but not limited to the correction of scrivener's/clerical errors, references, ordinance
numbering, section/subsection numbers, and any reference thereto.
SECTION 17. Effective Date. This ordinance shall be published in the official newspaper
of the city and shall take full force and effect five (5) days after the date of publication. A
summary of this ordinance in the form of the ordinance title may be published in lieu of
publishing the ordinance in its entirety.
PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and attested
by the City Clerk in authentication of such passage this 9t" day of May 2023.
ATTEST:
Brandy Wallace, MMC, City Clerk
APPROVED AS TO FORM:
Charlotte A. Archer, City Attorney
PUBLISHED:
EFFECTIVE DATE:
Robert Putaansuu, Mayor
Sponsored by:
Scott Diener, Councilmember
CITY OF PORT ORCHARD
DEPARTMENT OF COMMUNITY DEVELOPMENT
216 Prospect Street, Port Orchard, WA 98366
Ph.: (36o) 874-5533 • FAX: (36o) 876-4980
PLANNING COMMISSION STAFF REPORT
Agenda Item No: 5b Meeting Date: May 2, 2023
Public Hearing- Housing Prepared by: Nick Bond, Development
Subject: Action Plan Director
Issue: The City of Port Orchard is currently developing a Housing Action Plan (HAP) to identify strategies, actions,
and policy tools to create enough housing options to meet community needs. The HAP is a policy document with a
set of steps for the City to support and encourage new housing production that meets local housing needs for
residents of all income levels.
At February's Planning Commission meeting, staff provided an Existing Conditions Report update which revealed
that housing production in Port Orchard falls short of what is needed, putting pressure on housing prices, rents and
limiting housing options for Port Orchard's lowest -income households.
At the April 4, 2023 Planning Commission meeting, Makers Architecture provided a presentation addressing work to
date and the work to follow for HAP development. In the April Planning Commission meeting packet, staff provided
the initial draft of the HAP. Even though the report was not quite finished, staff wanted to share some preliminary
recommendations from the report. Since then, staff and Maker's Architecture have further refined the HAP which
includes sections addressing 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.
Staff discussed the Housing Action Plan with the Land Use Committee in March where the Committee provided
comment regarding the draft HAP.
Public notice for tonight's public hearing was properly noticed consistent with the requirements of POMC 20.25 on
April 18, 2023. As of the date of Report preparation, the Department of Community Development has not received
comments regarding the HAP. The Planning Commission is requested to open a public hearing on the draft Housing
Action Plan, take public testimony, and continue the hearing until the June 6, 2023, Planning Commission meeting.
At the June 6 meeting, the public will have an additional opportunity to review the HAP and provide testimony. The
Planning Commission will be asked to provide a recommendation to the City Council on the HAP after the conclusion
of the public hearing at the June 6 meeting.
Recommendation: Staff recommends a continuance of the public hearing to the June 6, 2023 Planning Commission
meeting.
Suggested Motion: "I move to continue the Housing Action Plan public hearing to the June 6, 2023 Planning
Commission meeting."
Attachments: Housing Action Plan
Port O
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Housing Action Plan
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Second Draft - April 25, 2023
Port Orchard Housing Action Plan - June 2023 1 DRAFT — APRIL 25, 2023
Thank You
Special thanks to the Port Orchard community for sharing your time, knowledge, and energy to
shape this housing action plan that meets your needs and interests.
Mayor
Robert Putaansuu
City Council
Fred Chang
John Clauson
Shawn Cucciardi
Scott Diener
Cindy Lucarelli
Jay Rosapepe
Mark Trenary
City Staff
Nick Bond, Director of the Community Development Department
Jim Fisk, Senior Planner
Josie Rademacher, Assistant Planner
Stephanie Andrews, Senior Planner
Consultant Team
MAKERS Architecture & Urban Design: Bob Bengford, Scott Bonjukian, Markus Johnson
Leland Consulting Group: Chris Zahas, Andrew Oliver
Stakeholder Organizations Interviewed
Port Orchard City Council and Mayor
Kitsap Housing Authority
Disney & Associates
Port Orchard Chamber of Commerce
Tarragon
Contour Construction
McCormick Communities
Washington State
This plan was supported by a Department of Commerce grant for cities to support housing
affordability.
Port Orchard Housing Action Plan - June 2023 1 DRAFT - APRIL 25, 2023 Page 3
Contents
Table of Contents
ExecutiveSummary...........................................................................................................................4
1 - Background Information.............................................................................................................6
2 - Regulatory Strategies................................................................................................................13
3 - Programmatic Strategies.........................................................................................................29
4 - Citywide Planning Strategies...................................................................................................45
5 - Funding Strategies....................................................................................................................53
6 - Implementation.........................................................................................................................63
Abbreviations
ACS. American Community Survey, an annual product of the U.S. Census Bureau.
ADU. Accessory dwelling unit.
AMI. Area median income.
CHAS. Comprehensive Housing Affordability Strategy, a product of the U.S. Department of
Housing and Urban Development.
GIS. Geographic information system.
GFC. General facilities charge.
HAP. Housing Action Plan.
HUD. U.S. Department of Housing and Urban Development.
LEHD. Longitudinal Employer -Household Dynamics, a product of the U.S. Census Bureau.
MFTE. Multifamily tax exemption program.
MSA. Metropolitan Statistical Area.
OFM. Washington State Office of Financial Management.
POMC. Port Orchard Municipal Code (city law).
RCW. Revised Code of Washington (state law).
Port Orchard Housing Action Plan - June 2023 1 DRAFT — APRIL 25, 2023 Page 4
Executive Summary
The Port Orchard Housing Action Plan (HAP) defines strategies and implementing actions that
promote greater housing diversity, affordability, and access to opportunity for residents of all
income levels. The process to develop the HAP included a review of Port Orchard's system of
policies, programs, and regulations which shape opportunities for housing development and
which impact the affordability of existing and new housing.
The purpose of this effort is to identify ways to encourage construction of additional affordable
and market rate housing in a greater variety of housing types and at prices accessible to a
greater variety of incomes. The priorities for the HAP were informed by an existing conditions
and housing needs assessment, public engagement, discussion with the City Council and
Planning Commission, and City staff.
The HAP is intended to inform updates to the Port Orchard Comprehensive Plan (most notably
the Land Use and Housing elements) and to guide implementation strategies such as
development regulations, housing programs, and infrastructure spending priorities.
Research Questions
These research questions developed at the beginning of the project drove the housing analysis
and the subsequent actions and strategies.
What are the most pressing housing needs in Port Orchard for each segment of the
population?
2. What are we most concerned about and most hopeful about for residential development
in Port Orchard over the next 10 years?
3. What code updates can be made to meet the needs of all economic segments of the
Port Orchard community?
4. What are the biggest longstanding or new barriers to affordable and diverse residential
development in Port Orchard?
5. What new or updated tools, policies, staff capacity, and funding are most likely to meet
Port Orchard's housing goals?
Port Orchard Housing Action Plan — June 2023 DRAFT — APRIL 25, 2023 Page 5
Housing Actions and Strategies
The housing actions are organized by broader strategy sections of this plan. The
implementation timeline is an estimate of how long it will take to implement an action. There
are also many sub -sections which may require different timelines if additional community
outreach is needed, alignment with the City's annual budget process is necessary, or there is a
desire to roll policy updates into the next major Comprehensive Plan update. See Section 6 for
more details on implementation priorities.
Strategy Description Priority 11-1��
Regulatory Strategies
2.1
Expand the allowed uses
High
0-6 months
2.2
Streamline the building type standards
Medium
0-6 months
2.3
Adjust form and intensity standards
High
0-6 months
2.4
Adjust other standards
Medium
0-6 months
Programmatic Strategies
3.1
Anti -displacement strategies
Medium
Ongoing
3.2
Homelessness strategies
Medium
Ongoing
3.3
Support staffing needs
Medium
Ongoing
Citywide Planning Strategies
4.1
Housing Element updates
Medium
12-24 months
4.2
Land Use Element updates
High
12-24 months
4.3
Public land for affordable housing
Low
Ongoing
Funding Strategies
5.1
Adjust the multifamily tax exemption program
High
0-6 months
5.2
Development fee adjustments
Low
0-6 months
5.3
Local bank funding
Low
Ongoing
5.4
Tax increment financing
Medium
6-12 months
5.5
Funding for ADU development
Medium
6-12 months
5.6
State advocacy
Low
Ongoing
Next Steps
The scope of Port Orchard's housing challenges demand that a variety of strategies and actions
be pursued immediately and simultaneously. This plan informs and recommends high priorities
for 2023 and beyond, such as code updates (Strategy 2) and refinements to the multifamily tax
exemption program (Strategy 5.1). A housing coordinator staff position should be created and
hired to implement all HAP strategies and serve as the City's lead on housing policy and
coordination. Updates and evaluation are recommended in the next Comprehensive Plan update
in 2024, and other programmatic, funding, and planning actions can begin as soon as resources
are allocated. See Section 6 - Implementation for detailed next steps.
Port Orchard Housing Action Plan — June 2023 1 DRAFT — APRIL 25, 2023 Page 6
1- Background Information
1.1 - Project Purpose
Port Orchard is a great place to live, but it is getting more expensive. As the population grows
and diversifies, the supply of homes and variety of homes is not keeping pace. As a result, it is
getting harder for people of average means and difference family structures to find and afford a
home. The supply of housing is closely linked to the price of housing.
The purpose of the Housing Action Plan is to identify strategies that promote more housing
options for current and future residents at all income levels and support increases in the
housing supply. Port Orchard's residents are diverse and each household has its own
preferences and experiences in how they live. This plan is intended to help guide City actions
over the next several years to promote more housing choices for current and future residents.
The City is able to undertake this project thanks to grant funding provided by Washington State
through the Department of Commerce. This grant program allocated funds for cities with the
goal of supporting housing affordability through regulatory and planning actions.
1.2 — Housing Needs
A summary of Port Orchard's current and future housing needs is provided below. For more
detail, refer to the complete HAP Existing Conditions and Housing Needs Analysis Report in the
Appendix.
Port Orchard is a fast-growing community with a 2022 population estimate of 16,400 and a
2044 population target of 26,087 residents.' The city has grown on average 4 percent annually
since 2000 and is expected to grow at a rate of close to 3 percent over the next 20 years
(excluding possible annexations), potentially exceeding countywide growth targets. Some of the
city's growth has been due to annexations in the 2000s, but the continued forecast for rapid
growth, as well as decreasing vacancy rates over the past decade, suggests an ongoing
demand for housing in Port Orchard.z
Current permitting data indicates that housing in Port Orchard is being produced at a rapid rate.
In total, 5,198 units are in some stage of permitting citywide, and 2,482 of those units are
planned to be completed between 2022 and 2024, of which 45 percent will be multifamily units.'
This high rate of housing production will nearly double the city's housing inventory within the
next several years. Even with this high rate of production, prices are still increasing as detailed
below.
About 60 percent of Port Orchard households are homeowners and 40 percent are renters.
Nearly 70 percent of households are family households, and the average household size is 2.4
1 2022 Population: Washington Office of Financial Management Postcensal Population Estimate. 2044 Population
Target: Kitsap County Countywide Planning Policy Update, 2022.
2 Census -reported rental vacancy rates have declined from 7.8% to 5.8% between 2010-2020, CoStar, a commercial
real estate database, showed multifamily rental vacancy rates declining from 6.5% to 3.5% between 2012 and 2022.
3 City of Port Orchard Permit Data
Port Orchard Housing Action Plan — June 2023 1 DRAFT - APRIL 25, 2023 Page 7
people.4 As shown below in Figure 1, there is a mismatch between household size and housing
unit size, with larger housing units available compared to household sizes. This shows a need
for increased supply of smaller housing units to better serve the variety of household sizes in
the city.
Household Size Housing Unit Size
3-person
household
16°i° 2-person
household
34%
L
bedrooms
41%
Arooms
27°%
Figure 1. Household Size and Housing Unit Size in Port Orchard, 2020. Source: 2020 American Community
Survey 5-Year Estimates, Tables S2501, DP04
Port Orchard's median household income (MHI) was $71,789 in 2020. This is $7,250 less than
the Kitsap County median, though it has increased 21 percent since 2010 - a higher rate than
county and statewide income increases over the same period. However, this increase was
much more pronounced for homeowner households than renter households.' Overall, about
eight percent of Port Orchard residents earn under $10,000 per year, compared to four percent
countywide, and over a quarter of renters earn under 30 percent of the median family income
(MFI).6 Lower -income Port Orchard residents face significant challenges paying for housing -70
percent of households earning under 30 percent of the MFI spend more than half of their
income on housing costs, and 75 percent of households earning between 30 and 50 percent of
the MFI spend over 30 percent of their income on housing costs.' This shows a need for deeply
subsidized housing for Port Orchard's lower -income residents, corroborated by stakeholders
who described over 1,000 people on the waiting list for housing vouchers administered by the
Kitsap Housing Authority.
In recent years, housing prices have risen rapidly in Port Orchard when compared with incomes,
as shown below in Figure 2. Rents increased 28 percent and home values increased 56 percent
between 2015 and 2020, compared to only a 15 percent increase in incomes over the same
4 2020 American Community Survey Five -Year Estimates, Tables S2501, DP04.
5 American Community Survey 2020 Five -Year Estimates, Table S2503, CPI Inflation Index
6 The Median Family Income for the Bremerton -Silverdale Metropolitan Statistical Area, as determined by HUD, was
$102,500 in 2022.
7 HUD Comprehensive Housing Affordability Strategy (CHAS), 2015-2019
Port Orchard Housing Action Plan — June 2023 1 DRAFT — APRIL 25, 2023 Page 8
period. This shows that housing has become more difficult to afford for the average Port
Orchard resident in recent years, a trend also seen across the country. As of 2020, the average
Port Orchard household could afford a home worth about $303,012, but the typical home in the
city was worth 1.5 times as much, $468,702.1
70%
60%
50%
40% _e-0-00,_
30%
20%
10%
0%
-10%
-20%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Median Gross Rent Zillow Home Value Index Median Household Income
Figure 2. Change in Home Prices, Rents, and Incomes in Port Orchard, 2070-2020. Source: Zillow, American
Community Survey 2020 5-Year Estimates, Table S2503, DP04, Leland Consulting Group
Kitsap County targets indicate that Port Orchard will see a demand for up to 4,804 new housing
units by 2044. Figure 3 shows the breakdown of these units by household income level, based
on Port Orchard's current income distribution. The breakdown of units by income is relatively
even. It includes about 1,000 units over the next two decades for the lowest -income
households which can only be met through regulated affordable (i.e., subsidized) housing, and
nearly 1,000 units for households earning between 50 and 80 percent of the AN (often
referred to as "workforce" housing) which can be provided through a variety of channels
including subsidized units, vouchers, other incentive programs such as MFTE, and filtering9 of
existing units as new housing stock is built. There will also remain a demand for about 1,200
market rate housing units targeting households earning more than 120 percent AN over the
next 20 years.
8 Home affordability calculated using Freddie Mac interest rate as of December 2022, Zillow home price data, income
data from 2020 American Community Survey 5-Year Estimates
9 "Filtering" refers to the process by which new housing units depreciate over time, becoming more affordable to
lower -income households as other new units are added to the supply.
Port Orchard Housing Action Plan — June 2023 1 DRAFT — APRIL 25, 2023 Page 9
1,400
� 1,200
N
O
j 1,000
800
z 600
U)
400
a�
z 200
0-30 30-50 50-80 80-100 100-120 120+
% AMI
Figure 3. Housing Demand by Income Bracket in Port Orchard, 2022-2044. Sources: Leland Consulting
Group, 2020 American Community Survey 5-Year Estimates, Kitsap County Countywide Planning Policies
1.3 — Racially Disparate Impacts
While Port Orchard may not have explicitly racist policies in place today, many policies do have
racially disparate origins and impacts. The practice of zoning emerged in the early 1900's and
explicitly race -based zoning had to be banned almost immediately as a result of the 1917
Supreme Court case of Buchanan v. Warley. After that decision, cities crafted less direct
methods to divide people by race and class with zoning policies that are still prevalent today.
The indirect methods largely rely on the differences of wealth, income, and tenure between
peoples' race and ethnicities. In Port Orchard, for example, 40% of all households are occupied
by renters. About 35% of White households are renters, while 58% of Hispanic and Latino
households and 88% of Native Hawaiian/Pacific Islander households are renters.10 Therefore,
policies that restrict the supply and price of rental housing have a disproportionate impact on
people of color. Further, almost half of all renter -occupied households are considered cost -
burdened, while just one in 10 owner -occupied households are considered cost -burdened.
10 Source: American Community Survey 2020 5-Year Estimates, B25003 Tables.
Port Orchard Housing Action Plan — June 2023 1 DRAFT — APRIL 25, 2023 Page 10
All households
White Households
Asian households
Black households
Hispanic and Latino households
Other / Two or more race households
Native Hawaiian / Pacific Islander...
0% 20% 40% 60% 80% 100%
■ Rent ■ Own
Figure 4. Tenure by race. Source: ACS 2020 5-Year Estimates, Table B25003 series
A common form of rental housing is multifamily
(apartment) buildings, which are more limited in
where and how they can be built in Port Orchard
compared to where and how single-family homes
are regulated.
Zoning matters for social welfare because where
people live makes a difference. Neighborhood
quality can have significant effects on long-term
outcomes like school performance, income, labor
mobility, and health. It also contributes to the multi- Figure 5. Example of multifamily housing.
generational wealth gap if some people are not able
to purchase quality homes that increase in value as much over time as homes in higher -priced
neighborhoods, resulting in smaller inheritances for descendants.
People of color generally pay higher shares of their income for housing costs and have less
savings for down payments, meaning the home prices they can afford are lower or they are
forced to rent. Smaller homes which have lower costs are needed not only for people of color,
but also Port Orchard's large share of small households (56% of households are made up of one
or two people but only 37% of housing units are studio, one- or two -bedroom units).
Occasionally, larger multi -bedroom homes are good options for people who want to split costs
with extended family members or roommates, but apartments with three or more bedrooms are
rare and there are few shared -living options like cottage clusters or triplexes available.
Common racially disparate policies and practices at the local level include the following:
• Minimum lot sizes
Lack of available land zoned for multifamily housing and middle housing (like duplexes
and townhomes)
Port Orchard Housing Action Plan - June 2023 1 DRAFT — APRIL 25, 2023 Page 11
• Multifamily housing only allowed in busy
commercial districts, polluted industrial
areas, in hazardous areas like floodplains,
and/or near loud and auto -oriented arterial
roads
• Multifamily housing not being allowed near
amenities like parks, schools, grocery
stores, and healthcare facilities
• Excessive minimum setbacks, building
height limits, parking standards, historic
preservation standards, and other
restrictions that limit the housing capacity on individual sites, especially for multifamily
and middle housing
• Excessive fees, complicated processes, and unclear regulations, especially for small
projects commonly undertaken by local homeowners and small investors like adding an
accessory dwelling unit or building a duplex
• Complete prohibitions on low-cost building materials
• Lack of trees and park space in areas near multifamily housing or neighborhoods with
lower incomes
• Lack of low-cost transportation options like pedestrian/bike routes and transit service
connecting multifamily housing to jobs and services
Racially disparate impacts are not limited to Port Orchard and this issue has been gaining
much -needed attention across the state and country, even earning a statement on zoning from
the White House. Other city -level racially disparate impacts have historically included redlining,
where people of color were not able to access loans and credit in certain neighborhoods;
highways built through communities of color; and disinvestment in infrastructure like transit,
schools, and parks in communities of color.
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.
1.4 — Public Engagement
The Housing Action Plan was informed by early and continuous public engagement.
Engagement was conducted to create a plan that meets the needs and interest of the Port
Orchard community. Key activities included:
• One-on-one interviews with 14 stakeholders
• Housing survey with 140 responses
• Public kickoff meeting and presentation at City Council (July 26, 2022)
• Check -in meeting with existing conditions and housing needs analysis at City Council
(January 10, 2023) and Planning Commission (February 7, 2023)
• Draft plan presentations at Planning Commission (April 4, 2023)
• Public hearing at Planning Commission (May 2, 2023)
Port Orchard Housing Action Plan - June 2023 1 DRAFT - APRIL 25, 2023 Page 12
1.5 - State Law Updates
In April 2023 the Washington State Legislature passed several
housing -related preemptions and other housing regulations.
The following may affect Port Orchard the most significantly.
Cross-references to HAP strategies are provided where
preliminary review finds there are actions Port Orchard should
take to meet new requirements.
Direct effects to City government
• HB 1110 - Reduces other zoning and permitting barriers to middle housing. See
Strategy 4.2.4 for the parking regulation changes needed to comply.
• HB 1337 - Preempts common regulations on accessory dwelling units (ADLI). See
Strategy 2.1.7 for development regulation changes needed to comply.
• SB 5412 - Housing developments in urban growth areas that comply with a
Comprehensive Plan which has undergone an environmental analysis are exempt from
additional environmental review under the State Environmental Policy Act.
• SB 5258 - Cities must provide a short plat procedure for unit lot subdivisions, which is a
division of a parent lot into separately owned unit lots (this is often a useful tool for
middle housing).
• SB 5258 - Also, impact fees for residential development must be lower for smaller units;
see Strategy 5.2 for recommendations to comply.
• SB 5491 - Cities are encouraged to allow single -stairway residential buildings up to six
stories tall and with up to four units per floor (currently such buildings can only be up to
three stories tall). See Strategy 2.4.7 for recommendations.
• HB 1042 - Cities cannot use development regulations (such as density limits or parking)
to prevent additions of housing with an existing building envelope in a zone that allows
multifamily use.
• HB 1181 - Comprehensive Plans must include a Climate Change & Resiliency Element
Indirect effects to City government
• HB 1771 and SB 5198 - Rules are strengthened for giving mobile home park residents
an opportunity to purchase the property when it is proposed for closure or conversion,
and for displaced residents receive relocation assistance.
• SB 5258 and SB 5058 - Encourages construction of small condominium buildings by
modifying the procedures for construction defect actions and warranty claims and
exempts buildings with 12 or fewer units and two or less stories from condo defect
provisions such as extra inspections. There is a new exemption to the real estate excise
tax for first-time homebuyers of condominiums (including townhouses).
• HB 1474 - Creates statewide down payment assistance program for first-time
homebuyers with income less than the area median who were themselves, or are
descendants of someone who was, excluded from homeownership in Washington by a
racially restrictive real estate covenant prior to 1968.
• HB 1074 and SB 5197 - Strengthened tenant protections upon move -out or eviction.
Port Orchard Housing Action Plan — June 2023 1 DRAFT — APRIL 25, 2023 Page 13
2 - Regulatory Strategies
While the City of Port Orchard does not directly supply or control the private housing market, it
does shape what is possible on Port Orchard's land through zoning and development
regulations.
2.1 — Expand the Allowed Uses
Action: Allow more housing types in more zones to promote middle housing and
affordable housing.
Providing more flexibility to integrate a variety of housing options is an important tool to
expanding housing supply and land capacity. In the HAP community survey, 70% of respondents
support the concept to "Allow more housing types like duplexes, cottages, and townhouses in
single-family neighborhoods if they're compatibly sized and designed." This concept was also
supported by most stakeholders when it came up in interviews. Consider the following changes.
2.1.1 — R5 Zone
Consider eliminating this zone from the code, as there are no current mapped R5 zones and the
proposed changes to R4 (including height bonuses) likely make this zone unnecessary. If
implemented, the R6 zone could be renamed to R5 to avoid a gap in zone naming.
2.1.2 — NMU Zone
The use table in POMC 20.39.040 allows multi -family of 5+ units in Neighborhood Mixed Use
(NMU) zones, but the apartment building type is not permitted in NMU.
Allow the apartment building type in the NMU zone to correct this inconsistency.
2.1.3 — Congregate Living Housing
Streamline the standards for congregate living housing. This type of housing operates, also
known as single -room occupancy (SRO), dorms, or hostels, provides a dignified housing option
for people with the lowest incomes. This form of housing historically served as an invaluable
affordable housing option, but these buildings were mostly zoned and demolished out of
existence starting in the 1970's.11 Conversions of existing buildings (such as aging hotels) may
be more likely than new ground -up congregate living developments, but in either case the zoning
code must be supportive for it to occur.
Congregate living facilities are restricted, being a conditional use in almost every zone they are
allowed. This use has supplemental standards inserted within the definition () that include:
• Residents must have leases of at least 30 days
• The use must be in a center and within one -quarter mile of transit service
• The facility must have 24-hour resident management
11 "The Hotel -Spirit." Slate. July 2022. https://siate.com/business/2022/07/hotels-rental-market-housing-prices-
shortage-solution.html
Port Orchard Housing Action Plan - June 2023 1 DRAFT — APRIL 25, 2023 Page 14
The facility is prohibited from having medical care or social welfare services on -site (as
this could categorize the use as permanent supportive housing, see Strategy 2.1.4
below)
Specific recommendations and considerations:
• Providing land use standards within a definition is not best code practice. Move the
standards to POMC 20.39.100.
• Allow congregate living housing in some non-residential zones by -right, notably in the
CMU zone.
• Clarify the parking requirements. Section POMC 20.124.130 should be amended to
clarify whether congregate living is considered a multifamily residential use, and if not, it
should have a parking requirement of 0.5 spaces per bedroom/resident or less. Under
Table 20.124.140, clarify the blank cell for congregate living by entering "none" (and for
other uses with no parking requirements). See Strategy 4.2.4 for related actions.
• Amend the standards to allow more flexible lease arrangements by deleting "at a time"
after "30 days." This allows a minimum stay to still be required but avoids requiring that
residents have monthlong leases.
• Consider renaming uses. There is some confusion between "Congregate Living" and
"Congregate Care"; the latter is differentiated by having on -site medical and/or social
services for residents but it is undefined in code and regulated as a sub -use of "Group
Living."
2.1.4 — Adult Family Homes
New state legislation passed in 2020, RCW 70.128.066, provides a way for adult family homes
to have seven or eight beds. The standards and definition under POMC 20.39.100(10) should be
updated accordingly.
2.1.5 — Supportive Ho
Under RCW 35A.21.430 (2021), Washington cities may not prohibit permanent supportive
housing or transitional housing in areas where multifamily housing or hotels are permitted
(other parts of state law define "multifamily" as four or more units). This supersedes a similar
2019 law, RCW 35A.21.305. Similarly, emergency shelter and emergency housing may not be
prohibited in any zones in which hotels are allowed.
Port Orchard is mostly in compliance, except emergency shelter and emergency housing must
also be allowed in the GMU zone, where hotels are allowed.
Consider providing definitions which reference state law:
• Emergency housing: RCW 36.70A.030
• Emergency shelter: RCW 36.70A.030
• Permanent supportive housing: RCW 36.70A.030
• Transitional housing: RCW 84.36.043
Port Orchard Housing Action Plan — June 2023 1 DRAFT — APRIL 25, 2023 Page 15
Some jurisdictions require operational plans and information -sharing on supportive housing
uses. For example, the City of Bellevue requires registration information from applicants prior to
certificate of occupancy with the following information (and it must be updated when it
changes):12
• Name and contact information of property manager(s) and/or owner(s) who may be
contacted in case of emergency or code violations
• Name and contact information for on -site facility staff (if applicable)
• Standard operating procedures plan for the facility, including:
o The number of residents intended to be housed in the facility
o A description of the supportive services provided to the residents of the facility,
on site and off site, including names and contact information of service providers
• A safety and security plan describing measures that the operator will employ to promote
the safety of Supportive Housing occupants and surrounding residents; and
• A code of conduct that applies to all individuals granted access to the proposed
Supportive Housing use.
Seattle has more limited requirements. The code offers a number of waivers and modifications
for parking and design standards that are reviewed administratively. A community relations plan
is required.13
12 Bellevue Municipal Code LUC 20.20.845.E.2, https://bellevue.municipal.codes/LUC/20.20,845.E.2
13 Seattle Municipal Code 23.42.057,
https://library.municode.com/wa/seattle/codes/municipal_code?nodeld=TIT23LAUSCO_SUBTITLE_I I ILAUSRE_CH
23.42GEUSPR 23.42.057PESUHO
Port Orchard Housing Action Plan - June 2023 1 DRAFT - APRIL 25, 2023 Page 16
2.1.6 — Tiny Homes
Consider defining and permitting tiny homes in as another relatively affordable housing option
but doing so in a limited number of lower intensity zones, such as R1 and R2 zones. Because
tiny homes are uncommon or unknown in Port Orchard, the City could potentially create a pilot
program that allows limited construction on one or two sites in partnerships with the property
owners (such as at a religious facility).
There are currently several building code limitations that the City would have to address to
make tiny homes viable to build. Other regulatory considerations and potential categories of tiny
homes are shown in the following table.
Permanent When a permanent tiny home is placed on a lot with
ADU a principal structure, treat the tiny home as any -
other type of detached ADU. Such homes must be on permanent foundations with all required utility _
connections.
Permanent When more than one permanent tiny home is placed
cluster on a lot, apply permanent tiny home cluster
standards. Such homes must be on permanent
foundations with all required utility connections.
Consider density provisions, such as limiting tiny
homes to 250-300 square feet of floor area and
counting each home as one -fifth of a dwelling unity
for density purposes. Consider providing basic
design standards similar to cottage housing.
Explore reasonable parking requirements that
balance affordability with neighborhood integration;
consider one space per two or three tiny homes as a
starting point. Do not allow tiny homes to be used
for short-term rentals. Consider whether tiny homes
should be able to use a unit lot subdivision to create
homeownership opportunities. See some example
standards from Langley.14
Consider limiting permanent clusters to lower
intensity residential zones such as R1 and R2.
14 Langley Municipal Code 18.22.290.
https://www.codepublishing.com/WA/Langley/#!/Lanaleyl 8/1-angley1822.html#18.22.290
Port Orchard Housing Action Plan - June 2023 1 DRAFT - APRIL 25, 2023 Page 17
Figure 6. Tiny home options
15 Seattle Municipal Code 23.42.054 and 23.42.056.
https://library.municode.com/wa/seattle/codes/municipal_code?nodeld=TIT23LAUSCO_SUBTITLE_IIILAUSRE_CH
23.42GEUSPR
Port Orchard Housing Action Plan - June 2023 1 DRAFT — APRIL 25, 2023 Page 18
2.1.7 — Backyard Cottages and Accessory Dwelling Units
New state law in 2023 (under House Bill 1337) preempts some types of accessory dwelling unit
(ADU) regulations by cities. The Growth Management Act is amended to preempt local ADU
regulations which conflict with the following:
• Cities must adopt at least three of these four options:
o No requirement for off-street parking
o No requirement for property owner occupancy
o No limitations of less than two ADUs per lot
o Limiting ADU impact fees to no more 50% of the fees for princpal units.
• In addition, cities must allow ADUs to contain at least 1,000 square feet in floor area and
for detatched ADUs to be at least 24 feet tall
• Cities may not impose setbacks, lot coverage limits, tree rention requirements,
restrictions on entry door locations, or other design standards which are more restrictive
than for principal units
• ADUs cannot be restricted from being sold as a condominimum unit
• No restrictive covenants or deeds may prohibit ADUs after the effective date of the bill
Port Orchard must make the following code changes within six months after the adoption of the
2024 Comprehensive Plan. Public health, safety, building code, and environmental permitting
requirements may continue to apply to ADUs.
Building Type Standards
These standards under POMC 20.32.030 govern the design of backyard cottages (detached
ADUs).
Under subsection (3)(i), the option for backyard cottages to be limited to 40 percent of
the total square footage of the primary dwelling must be removed
Under subsection (4), the maximum number of backyard cottages allowed per lot must
be increased to at least two; alternatively, the City can adopt reductions to its impact
fees so that the maximum fee for an ADU is no more than 50% of the fees that would be
applicable to the principal unit. See also new state law requirements under Strategy 5.2.
ADU Standards — General Requirements
These standards under POMC 20.68.100 govern the general approval criteria for ADUs.
Under subsection (2), the maximum number of ADUs allowed per lot must be increased
to at least two; alternatively, the City can adopt reductions to its impact fees so that the
maximum fee for an ADU is no more than 50% of the fees that would be applicable to
the principal unit
• The City may wish to add a new subsection clearly stating that ADUs may be created
from existing structures, including but not limited to detached garages, even if said
structure violates current code requirements for setbacks or lot coverage
• The City may wish to add a new subsection clearly stating the ADUs may be sold or
conveyed as a condominium unit independently of the principal unit
Port Orchard Housing Action Plan — June 2023 1 DRAFT — APRIL 25, 2023 Page 19
• The City may wish to add a new subsection clearly stating that ADUs do not trigger any
requirements for public street improvements as a condition of permitting.
ADU Standards — Bulk, Location, and Design
These standards under POMC 20.68.110 govern additional design requirements for ADUs.
• Under subsection (1), detached ADUs must be allowed in at least the NMU and BPMU
zones where single-family detached houses are also allowed
• Under subsection (3), the option for backyard cottages to be limited to 40 percent of the
total square footage of the primary dwelling must be removed
• Under subsections (7) and (9), the restrictions on the placement of entry doors for ADUs
must be removed
Zoning Standards
Chapters 20.34 and 20.35 POMC govern lot standards for backyard cottages. Where they are
allowed, the primary street setback for detached ADUs must match the same setback for
principal buildings or be removed (note that POMC 20.68.110(5) already requires that detached
ADUs be located in rear yards, which is a permissible requirement under state law).
Similarly, the minimum lot size for a backyard cottage must match the same size for detached
houses (applicable in the NMU and BPMU zones).
The rear setback for a detached ADU abutting an alley must be zero feet.
Subdivision Standards
The City may wish to add a new subsection in its subdivision regulations clearly stating that no
new restrictive covenants or deeds may prohibit ADUs. Other protections can also be added,
such as not allowing the development of ADUs to trigger requirements for private street
improvements, not allowing restrictions on renter occupation, and not allowing restrictions on
the development of other building types and land uses permitted by City zoning.16
See related recommendations for middle housing in Strategy 2.4.10.
16 Example of City preemptions of homeowner associations from Ridgefield, WA: RMC 18.401.140.C.
https://library.municode.com/wa/ridgefield/codes/code_of_ordinances?nodeld=CO_TIT18DEC0_CH18.401 PLUND
E_18.401.140 H OAS
Port Orchard Housing Action Plan - June 2023 1 DRAFT — APRIL 25, 2023 Page 20
2.2 - Streamline the Building Types
The permitted building types are unique additional
layer of form -based regulation. Some stakeholders
identified code interpretations and comprehension
as a barrier to middle housing development. This
may be driving most builders and developers to
follow the path of least resistance and continuing to
produce what they know best, which are detached
single-family homes and garden apartments.
Reducing the complexity of the middle housing building types is a strategy to increase their
chances of being produced.
The simplest approach would be removing building types and consolidating their standards
elsewhere (such as POMC Chapter 20.39, Article II Residential Uses). Short of that, this section
suggests modifications to reduce duplication and streamline the building type standards.
2.2.1 — Adjust Cottage Court Standards
Under POMC 20.32.040, the minimum site size for a cottage court development is 22,500
square feet and an additional 4,500 square feet is needed per unit when there are six or more
cottages. These standards apply regardless of the location, and have an unclear relationship to
the separate minimum unit lot area of 1,200 square feet. Stakeholders have identified the
minimum site size standards as a challenge, and it is unique among cottage housing standards
in the region. Consider the following changes to provide flexibility.
Remove or reduce the minimum site size. Building footprints, setbacks, parking, and required
open space largely dictate how much land area is needed for a cottage court. The preferred
approach is to remove the minimum site size standard. If the standard remains necessary,
consider 12,000 square feet for standard front -loaded lots and 10,000 square feet for lots with
alley access.
Reduce the minimum number of cottages from five to four. A minimum of four cottages is
standard among other codes in the region. This provides greater flexibility for cottage court
design on smaller sites.
Adjust the minimum courtyard size standards. The minimum courtyard area is 3,000 square
feet (minimum width 40 feet) with an extra 600 square feet per unit required when there are six
or more cottages. This should be replaced by a simpler approach which requires a minimum of
400 square feet of common courtyard space per cottage cluster regardless of number of units,
and with minimum dimensions of 15-20 feet. These dimensions are more common across the
region and have been shown to provide adequate levels of open space in built projects.
Allow duplex cottages in all zones where cottage courts are allowed to enable more efficient
use of land and materials. This may require a clear statement in the code, since duplex cottages
are generally impractical currently with the maximum building footprint of 1,200 square feet.
Port Orchard Housing Action Plan - June 2023 1 DRAFT - APRIL 25, 2023 Page 21
?.2.2 - Consolidate Duplex Types and Standards
Of the approximately 2,200 units built in Port Orchard over the past decade (2012-2022), a total
of ten units (0.4%) were in duplex buildings. While the building type standards are relatively new
(adopted in 2019), it is possible that complex regulations are one reason duplexes are not being
produced in greater numbers. It is recommended to simplify the duplex standards.
Consolidate the building types "Duplex: Side -by -Side" and "Duplex: Back -to -Back" into one
type called "Duplex."
The land use term "duplex" could replace "Two-family" in Chapter 20.39 POMC to provide
consistency in naming. Also see related suggestions in Strategy 2.3.1 regarding minimum lot
size and width standards.
The type "Attached House" could remain if there is a desire to clearly distinguish this option for
fee -simple ownership. However, from a design standpoint, a duplex on one lot and a duplex on
two lots can have the same appearance. An option to further consolidate "Attached House"
could be to provide a building type definition that addresses all forms of duplexes. Example:
Definition. A building type that accommodates two dwelling units sharing a common wall and
arranged side -to -side, front -to -back, or top -to -bottom. Duplex units may be placed on a single lot or
two separate units: units intended homeownership may require a subdivision, short subdivision, or
condominium.
Also see related suggestions in Strategy 2.3.1 regarding minimum lot size and width standards.
7 7 1 - Pannma the
Rename the Fourplex building type to Triplex/Fourplex. This type is described as allowing 3-4
units, but its misleading name and may cause some code users to conclude triplex buildings are
not allowed. Triplexes should be promoted similarly to duplexes as a middle housing option.
2.2.4 - Adjust Townhouse Type Standards
Remove the minimum site size and width and let other zoning standards and market factors
dictate the land area needed for townhouse development. While 5,000 square feet is a small site
to begin with, this would remove duplication in code and would improve flexibility in where and
how townhouse units can be developed. Standards for open space, parking, setbacks, and
landscaping would continue to apply and influence required land area and how townhouses are
placed on a site. Also see related lot size and width suggestions in Strategy 2.3.1.
Also see related suggestions in Strategy 2.3.1 regarding minimum lot size and width standards.
2.2.5 - Consolidate the Live -Work Type
Live -work has limited feasibility outside of the strongest urban markets and could be de-
emphasized in the code. It is relatively uncommon since a small number of households are self-
employed in businesses which can also be in their home in a separate space (excluding
standard office work -from -home setups). Additionally, live -work units are often expensive since
they need to be relatively large to accommodate the workspace.
Port Orchard Housing Action Plan - June 2023 1 DRAFT — APRIL 25, 2023 Page 22
There is an opportunity to retain the live -work standards while streamlining the code; current
code illustrations and the limitation of "six units in a row" indicate live -work is intended to be
integrated into townhouse -style buildings.
Amend the Townhouse building type section to note where standards differ for Live -Work
configurations. The separate site area and width standards for Live -Work are proposed to be
removed. Notations could also be added to explain Townhouses are allowed in the DMU, CC,
and IF zones only if the development includes space designed for live -work use.
A related option is to allow or encourage the Apartment building type to be designed with
ground floor units that are convertible and usable as commercial space. One option to
incentivize this may be providing a height bonus for such designs.
Also see related suggestions in Strategy 2.3.1 regarding minimum lot size and width standards.
2.2.6 — Adjust Shopfront House Standards
This building type requires a minimum of two dwellings per lot and a maximum of two dwellings
per lot, providing no flexibility in configuration options. It appears no developments have
employed this building type. More design options should be allowed.
Allow a range of 2-4 units per lot with this building type.
2.2.7 — Building Height
All of the building types in Chapter 20.32 POMC have a maximum building height specified, but
this standard is either duplicated or overridden by zone -specific maximum building heights in
Chapters 20.34 and 20.35 POMC. Maximum building height is a critical and sensitive zoning
tool, so it should have clear and consistent standards across the code. A unique case is
backyard cottages and cottage courts which are intended to be small.
Remove the maximum building height from all building types, except for backyard cottages
and cottage courts. Regulate accessory structure height limits in the zoning chapters.
2.2.8 — Minimum Private Useable Open Space
Integrating multiple dwelling units onto relatively small lots requires careful planning to
integrate the buildings, access and parking, and usable open space in a way which works for the
site residents and the neighborhood. The Design Standards in Chapter 20.127 POMC require
usable open space for multifamily uses but not middle housing types. However, middle housing
is detached houses, backyard cottages, cottage court, duplexes, attached houses, fourplexes,
and townhouses are exempt from those standards. Recommendations in Strategy 2.3.1 call for
relaxing lot dimensional standards for; that is coupled with this recommendation .
Port Orchard Housing Action Plan - June 2023 1 DRAFT — APRIL 25, 2023 Page 23
Add requirements for minimum private usable open space for duplexes (multiple types),
triplexes/fourplexes, townhouses, and shopfront houses. Specific recommend standards:
• Minimum private usable open space per unit: 300 square feet (50% of the required
usable open space may be satisfied through a rooftop patio or balcony)
• Minimum dimensions: 10 feet for each unit, except 6 feet for rooftop patio or balcony.
• Spaces shared between two or three units are permitted, provided the shared open
space dimension is 15 feet and the space is located adjacent to each unit. For
townhouses with four or more units, shared open spaces must comply with
20.127.350(2)(b), On -site open space.
• The front yard may be used as private usable open space, provided a low fence (between
16" and 48" demarcates the space
• Private usable open space cannot be parked or driven on, except for emergency access
2.2.9 — Ground Floor Elevation
Nearly all of the building types require a minimum ground floor elevation of two feet. This adds
significant cost to construction by requiring a taller foundation and the addition of ramps for
ADA wheelchair access on buildings with four or more units.
The purpose behind this type of standard is usually to promote a transition between the public
and private realms and improve security and privacy for ground -floor residents. This is already
addressed by the block frontage standards under POMC 20.127.230, which requires a
combination of setbacks and/or raised elevation for ground floor residential units, depending on
the context. The block frontage standards apply to all building types except single-family and
duplexes.
Recommendation: Apply this standard only to detached houses and duplex types, and reduce
the minimum elevation from two feet to 16 inches.
_.2.10 — Blank Walls
Blank walls are regulated in the design standards in POMC 20.127.460, which applies to
commercial uses and multifamily uses with five or more units. To reduce duplication or
conflicts, the blank wall standards can be removed for at least the apartment, single -story
shopfront, mixed use shopfront, and general building types. For the smaller building types where
blank walls are regulated, consider applying a standard consistent with POMC 20.127.460.
2.2.11 —Transparency
POMC 20.139.025(3) provides transparency standards for detached houses, cottage courts,
duplex types, and townhouses. The minimum transparency standard of 8% should be moved to
the building types in Chapter 20.32 POMC for consistency, where other building types like
fourplexes and apartments have transparency standards listed. The measurement method of
transparency could be retained in Chapter 20.139.
Port Orchard Housing Action Plan - June 2023 1 DRAFT — APRIL 25, 2023 Page 24
2.3 — Adjust Form & Intensity Standards
Action: Adjust the form and intensity (dimensional) standards to improve the physical
and economic feasibility of building small homes, multifamily housing, and affordable
housing.
Following public interest and an analysis of the
situation by the consultant team, some changes to
dimensional standards are proposed.
2.3.1 — Adjust Minimum Lot Dimensions
Consider relaxing the minimum lot size and width
provisions for "middle" housing/building types to
reduce barriers to those housing/building types.
Such action should occur in concert with requiring a
minimum amount of private usable open space (see Strategy 2.4.2). Specific recommendations:
R2 zone:
• Retain the current minimum lot dimensions for detached houses
For cottage courts, see Strategy 2.2.1 for updated suggestions for minimum site area
Exempt other "middle" building types from both minimum lot area and width standards.
This includes duplexes (all types), attached houses, triplexes/fourplexes, and
townhouses.
R3 zone:
Retain the current minimum lot dimensions for detached houses
• For cottage courts, see Strategy 2.2.1 for updated suggestions for minimum site area.
• Exempt other "middle" building types from both minimum lot area and width standards.
This includes backyard cottages, duplexes (both types), attached houses, fourplexes,
and townhouses.
• For apartments, reduce the current 10,000 square foot lot size minimum to 7,000 square
feet, with the option for 5,000 square foot lots where alley access is available. Reduce
minimum lot width from 80 feet to 70 feet, with the option for 50-foot wide lots where
alley access is available.
R4 zone:
• Consider eliminating lot dimension standards entirely, particularly as detached houses
are not allowed and there are enough other standards in place to help ensure that the
form and intensity of development meets community objectives.
R5 zone:
• If not eliminating this zone (see Strategy 2.1.6), consider eliminating lot dimension
standards entirely for same reasons as in R4 zone noted above.
Port Orchard Housing Action Plan — June 2023 1 DRAFT — APRIL 25, 2023 Page 25
R6 zone:
Retain the current 4,000 square foot minimum lot size and 40-feet lot width for a
detached house, but exempt other "middle" building types from both minimum lot area
and width standards. This includes duplexes (both types), attached houses,
triplexes/fourplexes, and townhouses.
Commercial and mixed -use zones:
Retain any existing minimum lot size and width provisions for detached house, but
eliminate such standards for all other building types to maximize flexibility. This includes
the McCormick Village Overlay District. Many standards are in place to help ensure that
such building types are integrated in a compatible manner.
2.3.2 — Adjust Height Limits and Add Affordable Housing Bonuses
The City should consider building height limit increases to increase the economic feasibility of
multifamily and mixed -use development. Constrained height regulations have a large negative
impact on housing affordability, particularly in urbanizing areas with increasing land prices such
as Port Orchard."
Several of the zones where Port Orchard allows
multifamily housing and mixed -use development
have relatively low height limits in the 35-45 feet
range, which creates feasibility challenges for light
wood frame construction (the most common
material for multifamily buildings in the Puget
Sound region). Construction costs per square foot
for wood buildings between three and seven stories
are relatively constant, regardless of building
height." Another key cost item is elevators, which cost at least $100,000 each and are required
for buildings four stories and taller.
Allowing more height enables developments to create additional dwelling units that help spread
out of the cost of construction. The economic benefits of light wood frame construction are
maximized with height limits in the 65-85 feet range; taller structures in this range are often a
hybrid with the lower floors being built of concrete and include structured parking. Also note
that many jurisdictions assume residential floor -to -floor heights are 10 feet, but 11-12 feet is
oftentimes preferred by designers and builders for accommodating mechanical systems and
energy code ventilation requirements, especially for taller buildings. Commercial ground floors
are often desired to be 15-20 feet tall.
The cost and risk of developing mixed -use structures and leasing ground -floor commercial
space typically can be offset by a higher amount of residential floor area. Since the COVID-19
17 Eriksen, & Orlando, A. W. (2022). Returns to Scale in Residential Construction: The Marginal Impact of Building
Height. Real Estate Economics, 50(2), 534-564. httpss://doi.org/l0.1111/1540-6229.12357
18 Ibid.
Port Orchard Housing Action Plan - June 2023 1 DRAFT — APRIL 25, 2023 Page 26
pandemic, developers are indicating increased risk associated with commercial development
due to continued uncertainty about the retail and particularly office markets. This further
increases the attractiveness of developments with a higher share of residential floor area.
Port Orchard allows height increases through the use of a transfer -of -development -rights (TDR)
ordinance adopted in 2019 in partnership with Kitsap County (Chapter 20.41 POMC). TDR
programs facilitate the exchange of zoned dwelling units from incorporated resource lands to
eligible "receiving sites" in the city limits. TDR programs are complex and require savvy
participants and willing rural landowners to participate. No project has yet used Port Orchard's
TDR program, and other Washington jurisdictions have found it difficult to attract participants to
TDR programs outside of the highest -priced markets like Seattle and King County. The proposed
height changes below would decrease the attractiveness of Port Orchard's TDR program with
the tradeoff of incentivizing affordable (subsidized) housing. However, TDR would continue to
be the only way to achieve the tallest allowed buildings in certain locations (up to eight stories
or 88 feet).
Increased height limits and potentially larger buildings will be mitigated by the broad set of
multifamily and commercial design standards Port Orchard already has in place. These include
standards to provide high -quality building massing, light and air access, useable open space,
attractive materials, windows and entries, and other provisions.
The table below shows recommend height increases to explore in Port Orchard's key
multifamily and commercial zones. These include modest changes to base height limits (up to
one floor).
In addition, new bonus height limits allowing up to an additional two floors are proposed for
developments participating in the City's multifamily tax exemption (MFTE) program,
incentivizing greater production of multifamily housing in general and also affordable
(subsidized) housing. The MFTE bonus should be limited to the Type 1,12-year affordability
program, and it could be expanded to the 20-year affordability program if the City adopts one.
See other recommendations for the MFTE program in Strategy 5.1.1.
R3
Currentimt,
35
...
45
Proposed :.
Participation
55
R4
45
55
R5 (if zone is not deleted per strategy 2.1.1)
55
65
Commercial Corridor (CC)
35
45
65
Commercial Mixed Use (CMU)
40
55
75
Neighborhood Mixed Use (NMU)
35
45
55
Business Professional Mixed Use (BPMU)
40
55
Ruby Creek Overlay District
55
65
Figure 7 - Recommended height limits
Port Orchard Housing Action Plan — June 2023 1 DRAFT — APRIL 25, 2023 Page 27
2.3.3 — Minimum Residential Density
Comprehensive Plan policies LU-11, HS-9, and HS-16 call for minimum residential densities at
least in centers. In addition, any locations where a multifamily tax exemption (MFTE) 12-year
and 20-year program is available must allow at least 15 units per acre. Development at 15 units
per acre is also the rough threshold where fixed -route transit service becomes more
sustainable. Minimum density standards can help provide consistency with state law and a level
of expectation to leverage public infrastructure investments and maximize the efficiency of land
where compact and walkable development is desired.
In order to reduce complications for small infill
development and promote economies of scale, the
minimum density requirement could apply only to
new development on sites above a certain site size
such as a 1/4 acre or 1/2 net acre; a "net acre" could
use the same measurement as applied in the MFTE
chapter, which is defined to exclude critical areas
and buffer, and other land that is undevelopable
such as shoreline buffers and tidelands.
Another option is to apply the standard only to sites within designated centers, where the City is
seeking to direct growth most intensely.
Based on public feedback and where the MFTE program typically applies, a limited number of
zones is proposed to have a minimum residential standard.
Apply only to sites above a certain size as a i, or v2 net acre
R3
12
R
115
R5 (if zone is not deleted per strategy 2.1.2)
15
cc
20
cMU
25
GMU
25
DMU
25
Figure 8 - Recommended minimum density standards
Port Orchard Housing Action Plan - June 2023 1 DRAFT — APRIL 25, 2023 Page 28
2.3.4 — Religiously -Owned Land Density Bonus
Under state law RCW 35A.63.300 (2019), upon request from a religious organization, cities
planning under the GMA must allow an increased density bonus on such properties consistent
with local needs for affordable housing development. The density bonus must be contingent
upon the religious organization's land being used for housing occupied exclusively by low-
income households for at least 50 years. The density bonus can be used for any type of
housing, ranging from single-family to multifamily.
Port Orchard is home to a number of churches. Most are on properties ranging from 0.5 to 5
acres and are located in residential or mixed -use neighborhoods. They are mostly zoned Civic
and Institutional, which does not allow any types of residential uses. The state requirements
could be implemented in several ways, such as an update to underlying zoning, creation of a
new overlay zone, or development agreements.
Development agreements are preferred option since use of this bonus could be relatively rare.
Port Orchard should consider adding a religiously -owned affordable housing policy in the
Comprehensive Plan that allows religious organizations to partner with the city to develop
affordable housing through a development agreement. The policy could stipulate a minimum
density, such as 30 dwelling units per net acre. Port Orchard can also begin proactively reaching
out to religious organizations to see if they are interested in developing affordable housing on
their properties (this could be a role of the Housing Coordinator staff position described in
Strategy 3.3).
Port Orchard Housing Action Plan — June 2023 1 DRAFT — APRIL 25, 2023 Page 29
2.4 — Adjust Other Standards
Action: Adjust other development regulations to help reduce barriers to housing
production.
A miscellaneous set of other standards can be updated to streamline the development
regulations and potentially reduce construction costs.
2.4.1 — Residential Design Standards
Chapter 20.139 POMC provides some supplemental design standards to the building types
including for driveways, architectural details and variety, roof design, and walls fences. Some
minor adjustments are recommended to improve the function of these standards.
• The building type standards (Chapter 20.32 POMC) should have additional cross-
references to the residential design standards for ease of code use
• The duplex garage configuration standards in section 20.139.015 will need to be
consolidated consistent with Strategy 2.2.2. It is recommended to use the 40-feet lot
width threshold for all configurations.
• The transparency standards in subsection 20.139.025(3) for some building types should
be placed in the building type standards for consistency (also see Strategy 2.2.11)
• The minimum 4:12 roof pitch in subsection 20.139.045(2) for detached houses and
duplexes prevents modern architectural styles with flat roofs and roof decks (particularly
on small infill lots) and creates a de facto prohibition on typical manufactured homes.
The first sentence of the standard could be deleted, and the roof elements standard
could continue but remove the word "pitched."
• Section 20.139.055 for duplexes has repetitive driveway standards and conflicting
transparency standards from other sections in the chapter, which should be resolved.
Further, the allowed porch projection standard in subsection (2) is duplicative of POMC
20.122.060
2.4.2 — Sir--;4;^ant Tree Standards
The current standards of Chapter POMC 20.129 can considerably reduce housing capacity on
individual sites and can also result in unsafe situations where a lone remaining significant tree
is exposed to wind and erosion subsequent to development. An architect's analysis of similar
proposed tree preservation standards in Seattle found that tree retention plans can add tens of
thousands of dollars in soft costs and government staff costs without guaranteeing any new
trees are planted.19
Explore alternative approaches for tree standards which easier to administer and have less
impacts on soft costs and housing capacity. One option is not focusing on individual trees and
instead require requiring a minimum tree canopy coverage after some years of construction is
completed (allowing both newly planted and existing trees to contribute). This is the method
used in Port Orchard for the McCormick Village Overlay District under POMC 20.38.280.
19 "Does Money Grow on Trees?" Neiman Taber Architects. April 2023.
http://nei manarchitects. bIoospot. comZ2023/04/does-money-arows-on-trees. htmI
Port Orchard Housing Action Plan — June 2023 1 DRAFT — APRIL 25, 2023 Page 30
Recommendation: Exempt middle housing developments (all types of duplexes, cottage
housing, townhouses, and triplexes/fourplexes) from the requirement to prepare a significant
tree retention plan by a certified arborist, horticulturalist, landscape architect, forester or other
qualified professional. This would expand the exemption beyond detached houses and
backyard cottages but still apply the tree requirements of the chapter.
?.4.3 — Family Definition
Amend the definition of "family" under POMC 20.12.010 to be consistent with state law RCW
35A.21.314 (2021). Cities may not regulate or limit the number of unrelated persons that may
occupy a household or dwelling unit. A simple approach is shown below.
"Family" means any number of persons related by blood, marriage or legal adoption and including
foster children and exchange students living together as a single housekeeping unit. "Family' also
means the following when living together as a single, not -for -profit housekeeping unit:
(1) A group of related and unrelated adults and their related minor children, -but
not tc exceed n total of eight related and unrelated persons or
(2) Not more than eight disabled persons, whether adults or minors, living together in a consensual
residential living arrangement but not to exceed a total of eight persons; or
(3) State licensed adult family homes as defined by RCW 70.128.010; or
(4) State licensed foster family homes and group care facilities as defined in RCW 74.15.020.
2.4.4 — Elevator Penthouse
As more multifamily and mixed -use housing is built in Port Orchard, details like elevator design
are important factors for livability and functionality. Ten -feet tall elevator cabs are desirable for
residents to move the largest pieces of furniture which cannot fit through stairwells. Also
popular are elevator -accessible roof decks that help meet developments meet residential open
space requirements.
However, these two features are difficult to combine due to the limitations of POMC
20.40.050(2)(c)(i). This subsection limits structures screening elevators to 10 feet in height
where the elevator is accessing a roof deck.
Elevator technology is evolving. Over the past decade the "Machine Room -Less" elevator has
become a cost-effective option for buildings over four stories tall and it avoids the
environmental impacts of hydraulic piston designs which penetrate deep into the ground below
the building (a technology which was previously typical for buildings up to eight stories). The
Machine Room -Less design uses a hoistway and mounts mechanical equipment on top of the
cab, which increases the overrun above the roof level beyond that assumed by the code.
Recommendation: To achieve a 10-feet interior cab dimension and accounting for the assembly
of the penthouse structure, it is recommended to increase the code allowance to 17 feet.
Port Orchard Housing Action Plan - June 2023 1 DRAFT — APRIL 25, 2023 Page 31
2.4.5 — Parking Lot Landscaping
Under POW 20.128.070(3), reduce and simplify minimum planting area widths to allow more
efficient use of land. This is critical for smaller lots where infill multifamily and townhouse
development may occur, but still meet the purpose of parking lot landscaping.
Consider reducing the minimum width of landscaping along public streets to 7.5 feet regardless
of the block frontage designation, and to five feet along internal lot lines.
Also, consider making parking lot landscaping its own code section so it is easier to find in
tables of contents and because it is frequently used. For example, convert subsection (3) to new
20.128.075.
2.4.6 — Service Areas and Mechanical Equipment
Under POW 20.127.360, some minor clarifications can be made about applicability to offer
some more flexibility.
Subsection (2) currently acts as a title but could be expanded with examples to replace the
parenthetical in subsection (2)(a), to read: "(2). Location of ground related service areas and
mechanical equipment. Ground -level building service areas and mechanical equipment includes
loading docks, trash collection and compactors, dumpster areas, storage tanks, electrical panels,
HVAC equipment, and other utility equipment. If any such elements are outside the building at
ground level, the following location standards apply:"
Under subsection (3)(a)(iv), say collection points must be located and configured "to the extent
practical" to help moderate construction costs in certain situations.
Under subsection (5)(b), consider removing the prohibition on perforated metal as a rooftop
equipment screening material since it is cost effective and has a variety of design options.
?.4.7 — Sinale-Stair Buildings
New state law in 2023 (under Senate Bill 5491) provides model code language for cities to
adopt the Seattle version of stairway regulations through July 2026. Up to two buildings per
property may feature single -stairway designs. There are several conditions for fire safety, such
as requiring minimum one -hour fire ratings, automatic sprinkler systems, maximum walking
distances to exits, and minimum water flow capacity availability at the site. Certain group
residential uses cannot be located in single -staircase buildings. By July 2026, the State Building
Council will provide statewide standards for single -staircase buildings which local jurisdictions
can choose to adopt.
Recommendation: Examine updating Port Orchard's locally -adopted version of the International
Building Code (POMC 20.200.012) to allow single -stair multifamily buildings up to six stories
where there are four or less units per floor. By default, the International Building Code limits this
condition to three floors. Seattle has allowed it since 1977.20 This could be an opportunity to
reduce construction costs and increase design flexibility for small apartment buildings on infill
lots, especially in conjunction with height limits recommendations under Strategy 2.3.2.
20 "Second Egress: Building a Code Change". https://secondearess.ca/Seattle
Port Orchard Housing Action Plan — June 2023 1 DRAFT — APRIL 25, 2023 Page 32
?.4.8 — Apply the International Residential Code to Middle Housing
Examine updating Port Orchard's locally -adopted version of the International Building Code
(POMC 20.200.012) and the International Residential Code (POMC 20.200.014) to allow small
residential structures with less than 5,000 square feet of floor area (e.g. triplexes, townhouses,
and small multifamily buildings) to be designed and built under the less -strict provisions of the
International Residential Code. Normally, structures with three or more units are considered
commercial and fall under the International Building Code which requires fire sprinklers. In
exchange, applicable structures would be required to have a higher 2-hour fire rating for wall
and floor/ceiling assemblies.
Since sprinklers can cost up to $15,000 per unit to install, this can help reduce the costs of
attached middle housing while still ensuring fire safety. Other opportunities for streamlining
include revisions to egress requirements in common spaces and allowing combined
mechanical, electrical, and plumbing drawings.21
Demonstrated success in at least one community (Memphis, TN) suggests the topic may be
worth further discussion.22 Making a change for only three- or four -unit buildings may still
provide cost benefits.
In 2023, House Bill 1167 would have advanced this change statewide; it did not pass but will be
on the docket for the 2024 session of the Washington Legislature. Port Orchard could be a
leader on this issue by working with legislators and coordinating with the design and
development community on the best path forward, along with stakeholders such as building
officials, the fire district, and others.
2.4.9 — Create Standards for Unit Lot Subdivisions
Senate Bill 5258, adopted in 2023 and
codified in RCW 58.17.060, now requires
all local jurisdictions to provide unit lot
subdivision procedures for short plats (up �Pa,
to 9 lots). It is recommended that Port
Owned ,n Cam
Orchard comply with this statue and also
make the option available for regular plats
(10 or more lots). Unit lot subdivisions
follow the procedures for the underlying
plat type.
Unit lot subdivisions facilitate the Figure 9 - Diagram of the unit lot subdivision concept
development of homeownership options
for middle housing like side -by -side duplexes, triplexes, and fourplexes, townhomes, and cottage
housing. Zoning regulations such as setbacks and lot coverage are applied to the overall "parent
21 "A Trailblazing Reform Supports Small -Scale Development in Memphis." Strong Towns. January 2022.
https://www.stronatowns.ora/iournal/2022/l /26/a-trailblazina-reform-supports-small-scale-development-in-
memphis
22 "Memphis, TN Amends Local Building Code to Allow up to Six Units Under Residential Building Code (IRC) to Enable
Missing Middle Housing." Opticos Design. January 2022. https://opticosdesian.com/bloa/memphis-tn-amends-
local-building-code-to-allow-up-to-six-units-under-residential-building-code-irc-to-enable-missing-middle-housina/
Port Orchard Housing Action Plan - June 2023 1 DRAFT — APRIL 25, 2023 Page 33
parcel" existing before the subdivision, allowing the individual "unit lots" upon which dwelling
units are placed to be arranged and sized in almost any configuration. Remaining pieces of the
parent lot are owned in common or managed by a homeowners' association.
There is no template for unit lot subdivision provisions in Washington State, but many cities
allow them. Examples of code language can be found in Anacortes. Everett, Port Angeles, and
Wenatchee.
2.4.10 — Prohibit Subdivision Covenants on Middle Housing
New state law in 2023 under House Bill 1110 prohibits new restrictive covenants or deeds from
prohibiting middle housing (defined as duplexes, triplexes, fourplexes, fiveplexes, sixplexes,
townhouses, stacked flats, courtyard apartments, and cottage housing). In other words, private
agreements are not allowed to exercise zoning -like powers that are the domain of City
government. Existing restrictive covenants or deeds are unaffected.
It is recommended that Port Orchard update Title 20, Article V POMC to implement this
restriction. Other protections can also be added, such as not allowing restrictions on renter
occupation. See similar recommendations for ADU's under Strategy 2.1.7.
Port Orchard Housing Action Plan — June 2023 1 DRAFT — APRIL 25, 2023 Page 34
3 - Programmatic Strategies
In addition to regulatory considerations, this section discusses strategies which Port Orchard
can consider for increasing housing opportunities through programs addressing displacement,
tenant protections, and strategies for reducing homelessness.
3.1- Anti -Displacement Strategies
Action: Adopt local tenant protections and consider other regulatory and
programmatic anti -displacement actions to improve the stability of renter households.
As discussed above in Section 1.3, exclusionary zoning practices have led to numerous facets
of housing inequity across the U.S. Additionally, redevelopment programs implemented in
earlier decades resulted in both intentional and unintentional displacement of lower -income
residents and people of color in many communities. Therefore, strategies to mitigate or prevent
displacement have gained much attention in recent years, and a variety of approaches have
emerged. Overall, the effectiveness of anti -displacement strategies is highly neighborhood- and
community -specific, and recent academic research has found decidedly mixed results of many
approaches.23
While most strategies have focused on minimizing displacement pressures, it should be noted
that not all displacement is involuntary (there is always some movement in the housing market),
and displacement can sometimes mean moving "up" to a higher opportunity neighborhood.
Increasing housing production overall, including market -rate housing production, is an important
tool to moderate price increases and therefore make housing more affordable to low and
moderate income families and prevent displacement.24 This is particularly true in hot housing
markets and if the new housing units are comprised of a variety of housing types. A study in
California found that both market -rate and subsidized housing production reduced
displacement rates in San Francisco, but subsidized housing production decreased
displacement risk more significantly.25 The same study also found that the positive effects of
production on displacement at a hyperlocal neighborhood scale may differ depending on the
complex neighborhood context.
One downside of increased production is the time it takes to build new housing, which can be
lengthy not only for construction, but also design and permitting. The most comprehensive
academic survey of anti -displacement strategies to date suggests that in addition to production,
neighborhood stabilization and tenant protection policies have the most immediate impact on
23 Chapple, Karen and Anastasia Loukaitou-Sideris. "White Paper on Anti -Displacement Strategy Effectiveness."
Prepared for the California Air Resources Board, February 2021.
24 Been, Vicki, Ingrid Gould and Katherine O'Regan. "Supply Skepticism: Housing Supply and Affordability." New York
University Furman Center, August 2018.
25 Zuk, Miriam and Karen Chapple. "Research Brief. Housing Production, Filtering, and Displacement: Untangling the
Relationships." UC Berkeley Institute of Governmental Studies. May 2016.
Port Orchard Housing Action Plan — June 2023 1 DRAFT — APRIL 25, 2023 Page 35
mitigating displacement.21 The following are suggestions for proactive policies that Port
Orchard can adopt to further prevent displacement.
A study from Common Good Labs analyzed data on thousands of U.S. neighborhoods over 15
years (2000 to 2015) to understand how poverty is reduced without community displacement.27
It found eight indicators that are associated with inclusion, increased prosperity, and decrease
in poverty. Three of the indicators can be most directly affected by municipal policies, noted in
the table below.
Inclusion Indicator
0
Increased housing density
Zoning standards that directly regulate the density of residential development.
Higher rates of
Zoning and subdivision standards that allow and encourage a greater variety of small
homeownership
and attached housing types (e.g., small single-family, cottages, townhomes, flats,
condos). A New York Times report finds that the production of entry/starter homes
has never been lower than today (particularly homes smaller than 1,400 square
feet).28
Presence of community
Financial and/or staffing support for community organizations.
organizations
Zoning standards that provide low-cost commercial space and/or municipal facilities
with space for community organizations to have offices, host events, run recreation
and cultural programs, etc.
Figure 10. Inclusion indicators
3.1.1 — Local Tenant Protections
Washington State sets the baseline for the landlord -tenant relationship through the State
Residential Landlord -Tenant Act, RCW 59.18. Washington State regularly amends the Act as
summarized in the HAP Existing Conditions and Housing Needs Analysis Report. According to
the Attorney General's Office, there is no centralized enforcement mechanism for the RCW, and
so it is incumbent upon landlords and tenants to either self -remedy violations, seek counseling
or low-cost legal help from non-profit organizations, and/or resolve disputes through the courts.
Local ordinances are enforced by the local
jurisdiction. Cities are free to adopt additional or
more stringent regulations than those provided by
the state (with the exception of market -rate rent
control), and numerous Washington communities
have done so. Port Orchard has not enacted any
local tenant protection ordinances.
The King County Bar Association (KCBA) provides a
model tenant protection ordinance within the
framework of Washington State law. This is summarized in the table below.
2e Chapple and Loukaitou-Sideris.
27 "Reducing poverty without community displacement: Indicators of inclusive prosperity in U.S. neighborhoods."
Brookings. September 2022. https://www.brookings.edu/research/reducing-poverty-without-communitym
displacement-indicators-of-inclusive-prosperity-in-u-s-neighborhoods/
28 "Whatever Happened to the Starter Home?" The New York Times. September 2022.
hitps://www.nytimes.com/2022/09/25/upshot/starter-home-prices.html
Port Orchard Housing Action Plan — June 2023 1 DRAFT — APRIL 25, 2023 Page 36
. Local Tenant Protection Option
Other
Rents and Payments
Notice of monthly rent increases 90-180
The state law default is 60 days notice per RCW 59.18.140. Upon
days before the effective date, with more
receipt of notice, allow tenants to terminate tenancy early without
notice required for larger increases
further payment except pro rata rent.
No increase in rent allowed if the property
Poor conditions means the dwelling unit has defective conditions
is in poor condition
making it unlivable, a request for repairs has not been completed, or
the property is otherwise in violation of RCW 59.18.060.
Increases over 10% of monthly rent over a
The tenant must be notified this is an option in every rent increase
12-month period requires landlord to pay
notice regardless of the increase amount. The assistance can be
relocation assistance for economically-
valued in a number of ways — the KCBA model bases it on three
displaced tenants.
times the monthly rent amount. Optionally, this tool could require
relocation assistance for physical displacement as well (due to
property renovations or demolition).
Move -in fees capped at one month's rent
Allow up to a six month installment plan which commences upon
and require offer of installment plans
move -in. This helps lower income tenants manage move -in fees that
can be many thousands of dollars.
Caps on rent payment late fees
The KCBA approach is a cap of $10 per month and the tenant is not
responsible for any legal fees or other services.
Leases must allow rent to be paid on
This allows tenants to adjust the due date of rent payments if the
different days of the month
tenant has a fixed income source (e.g. a paycheck lag after the first
of the month or a social security payment). A landlord shall not
refuse to lease to tenants who request this.
Evictions and Discrimination
Require cause to evict as specified in the
Only allow for evictions for: 1) failure to pay rent after receiving all
lease agreement
notices required; 2) substantial breach of a non -monetary term of the
lease and all steps to resolve it have failed within the time required;
or 3) the landlord seeks to remove the unit from the market with
honest intent (with 120 days notice).
Banning discriminatory, deceptive, and
Prohibits inquiries or verification requirements based on immigration
unfair practices in the rental market
or citizenship status, using social security numbers as a method of
proving financial eligibility, and representing that a unit is not
available when it is in fact available. Also prohibits requiring that a
lease be signed by children and deceptive omissions and practices
like confusing lease terms or taking advantage of a lack of
understanding by tenants.
Administration
Rental unit registration and inspection
The purpose of such programs is to ensure rental housing meets
programs
standard living conditions. Registration includes property address,
contact information, list of rental units, and condition of the housing
units. Fees may be imposed and re -registration is required with new
ownership.
Figure 11. Tenant protection options
No particular set of tenant protections is recommended as part of this HAP. The Port Orchard
community and decision makers are encouraged to use this "menu" of options as a basis for
Port Orchard Housing Action Plan — June 2023 1 DRAFT — APRIL 25, 2023 Page 37
continued discussion. Port Orchard can look to other communities like Burien and Kenmore that
have adopted some of these protections. 29, 30, 31
Longer rent increase notice time, move -in fee caps, and economic/physical relocation
assistance are some of the strongest anti -displacement strategies available for low-income
residents forced to move, giving them an opportunity to find new housing in the same
community within a reasonable amount of time.
Any new regulatory action would require some degree of effort, ranging from education and
outreach to increased staffing and resources for monitoring and enforcement. Regulatory
action could also be considered at the regional level to provide consistency for landlords and
property management companies working across multiple Kitsap County jurisdictions.
3.1.2 - Other Anti -Displacement Strategies
Strategic Acquisition of Existing Multifamily Housing
To better retain affordable housing, the City of Port Orchard should work with Housing Kitsap,
land trusts, and other non-profit providers to identify naturally occurring affordable housing and
multifamily housing with income restrictions or covenants that are close to expiration. Funds
should be identified to acquire as many such properties as possible to avoid displacement of
low- or moderate -income residents. This practice preserves existing communities and retains
long-term affordable housing stock at a lower cost than development of new affordable
housing.
Tenant Legal Services
Eviction rates have been shown to drop when tenants facing eviction have access to legal
representation. The Washington State Office of the Attorney General has a comprehensive list
of resources for tenants facing legal issues, including free phone assistance from the
Northwest Justice Project for low-income tenants statewide.32 Contacts and guidance could be
provided alongside or in addition to the homeless services directory (see Section 3.2).
Tenant Opportunity to Purchase
A tenant opportunity to purchase program, such as the one instituted in Washington, D.C. in
1980, gives tenants the first right to purchase their unit if it is being converted into a
condominium. In D.C., a study of the program showed this helped 58% of eligible tenants
purchase their unit.33 The D.C. program has also resulted in the creation of many limited equity
29 "City of Burien, Washington, Ordinance No. 804." October 2022.
https:/Zburienwa.civicweb. net/fi lepro/documents/33975/?preview=76250
30 City of Kenmore, Washington, Ordinance No. 22-0545." March 2022.
https://kenmore.civicweb.net/filepro/documents/118191 /?preview=119244
31 "Five Seattle suburbs added new landlord -renter laws this year. Here's what they do." The Seattle Times. December
15, 2022. https://www.seattletimes.com/seattle-news/politics/five-seattle-suburbs-added-new-landlord-renter-
laws-this-year-heres-what-they-do/
32 "Residential Landlord -Tenant Resources." Washington State Office of the Attorney General.
https://www.atg.wa.gov/residential-landlord-tenant-resources
33 Chapple, Karen and Anastasia Loukaitou-Sideris. "White Paper on Anti -Displacement Strategy Effectiveness."
Prepared for the California Air Resources Board, February 2021.
Port Orchard Housing Action Plan — June 2023 1 DRAFT — APRIL 25, 2023 Page 38
cooperatives when tenants work together to purchase a building being converted to
condominiums.34
Rental Assistance Programs
Rental assistance programs help low-income tenants pay rent in moments of hardship. Such a
program can be very helpful in preventing families and individuals from becoming homeless and
help stave off eviction and displacement. However, rental assistance programs are also
relatively expensive and may have limited reach in a city of Port Orchard's size. One option
would be to investigate a temporary rental assistance fund for eligible low-income renters which
can provide assistance for 1-3 months when a tenant is experiencing a financial crisis.
Housing Rehabilitation
Some low-income households are unable to afford ongoing maintenance on their homes,
particularly older housing units. This can lead to displacement if the homes become
uninhabitable or the home is sold at a low price. Many cities and counties in Washington,
including Vancouver, Spokane, and Pierce County for example, provide no- or low -interest loans
to qualifying low-income homeowners to help repair and rehabilitate their homes. 15, 36, 37
Some programs do not require repayment of the loan until after the house is sold, and others
defer payments if residents cannot afford them, or waive interest for disability modifications.
These programs are funded by a variety of sources, including city or county affordable housing
funds, CDBG block grants from HUD, or HOME Investment Partnership programs.
Community Control of Land
There are several models of cooperative or shared land ownership which have been used to
remove land speculation and market pressures from ownership housing and provide affordable
and stable ownership opportunities for lower- and moderate -income households. Such
organizations have mostly taken the form of cooperatives and community land trusts (CLT), or a
combination of both approaches.
In a community land trust, the land is held in trust by a nonprofit or city and only the housing unit
is bought and sold, usually with permanent affordability restrictions in the covenant. Although
this can reduce the amount of equity which can be built by buying and selling a home in a CLT, it
does create opportunity for households whose incomes would typically exclude them from
homeownership.
In a co-op model, residents own shares in the land or buildings (depending on the model) and
pay affordable monthly payments with limited equity to residents. One Oregon model showed
34 "Tenant/Community Opportunity to Purchase." PolicyLink. https://www.policylink.ora/resources-tools/tools/all-in-
cities/housing-anti-displacement/topa-copaa
35 "Housing Rehabilitation Loan Program." City of Vancouver. https://www.cityofvancouver.us/eph/paae/housing-
rehabilitation -loan -program
36 "Home Rehabilitation." City of Spokane. https://my.spokanecity.ora/housing/affordable/
37 "Home Rehabilitation Loan Program." Pierce County. https://www.piercecountywa.aov/3093/Home-Rehabilitation-
Loan-Program
Port Orchard Housing Action Plan — June 2023 1 DRAFT — APRIL 25, 2023 Page 39
that combining a CLT and co-op yielded opportunities for homeownership for households
earning 30-60% of the AM1.38
Overall, the largest barrier to community land control models is lack of funding for ownership
affordable housing to jumpstart these types of organizations.39
Foreclosure Assistance
Foreclosure assistance can take the form of financial support to homeowners facing
foreclosure, similar to the rental assistance programs described above. Additionally, foreclosure
assistance can take the form of technical assistance and counseling to households at risk. A
study conducted by the Urban Institute during the Great Recession found that households that
received counseling were more likely to avoid default and modify their loans to be able to keep
making payments.40 Such a program could be provided by the city or in partnership with another
organization.
Living Wage Ordinance
In the Port Orchard area, the hourly wage needed to afford the average two -bedroom apartment
is $32.69 an hour. 41 The minimum wage in Port Orchard is the default Washington State
minimum wage of $15.74 per hour.
A living wage ordinance requires a higher minimum wage than that required by state law, which
can help reduce housing cost burden. Local ordinances are not widespread in Washington; only
the cities of Seattle, SeaTac, and Tukwila currently have minimum wages higher than the
statewide minimum.42
Childcare and Early Education Subsidies
Subsidizing early education is another way to help lower -income households who are unable to
afford housing, as well as improving lifelong outcomes for children. Washington State provides
financial assistance for child care for low-income families through the Working Connections
Child Care subsidy. Other municipalities in Washington also provide childcare subsidy, such as
Seattle's Child Care Assistance Program and the King/Pierce County Child Care Resources
subsidy program for families experiencing homelessness.
38 "A Case for Public Investment in Shared -Equity Homeownership." SquareOne Villages. September 2020.
https://olis.oregonleaisIature.gov/1iz/2021 R1/Downloads/PublicTestimonyDocument/20717
39 Gabobe, Nisma. "How Can Cities Move The Needle on Community Land Trusts?" Sightline Institute. August 2021.
https://www.sightline.org/2021 /08/23/how-can-cities-move-the-needle-on-community-land-trusts/
40 Chapple, Karen and Anastasia Loukaitou-Sideris. "White Paper on Anti -Displacement Strategy Effectiveness."
Prepared for the California Air Resources Board, February 2021.
41 National Low Income Housing Coalition, "Out of Reach: The High Cost of Housing." 2022.
https://nlihc.org/oor/zip?code=98367
42 "Minimum Wage", Washington State Department of Labor & Industries. https://www.Ini.wa.aov/workers-
rights/wages/minimum-wage/
Port Orchard Housing Action Plan — June 2023 1 DRAFT — APRIL 25, 2023 Page 40
3.2 — Homelessness Strategies
Action: Strengthen coordination between the City and local homelessness support
services and adopt a Housing First approach.
Homelessness is a government concern because it relates to the health, safety, and welfare of
individuals and the community at-large.43 This housing action plan addresses homelessness
because the production and price of housing, which is affected by City policy, is directly
correlated to the rate of homelessness.44 At the national level, every $100 increase in median
rent is associated with a nine percent increase in the estimated homelessness population, even
after accounting for demographic and economic characteristics.45
Kitsap County conducts a point -in -time count of people experiencing homelessness countywide
each year, typically in January. In 2022, the count was conducted in February instead. The count
encompasses both sheltered and unsheltered people and is conducted during one 24-hour
period each year. Therefore, the number is generally considered to be an undercount of the true
population experiencing homelessness. In February 2022, 563 individuals were experiencing
homelessness countywide, of which 136 were in transitional housing, 244 in emergency
shelters, and 183 unsheltered. Of the 183 unsheltered residents surveyed, 23 percent, or 42
people, were in Port Orchard. Countywide, 67 percent of those surveyed reported becoming
homeless due to health or mental health issues, 58 percent due to job loss, 40 percent due to
loss of housing, 35 percent due to family conflict, and 25 percent due to substance use.46
Port Orchard staff should continue to monitor the annual point -in -time count and support the
county as necessary to ensure consistent data collection on the extent and changes in the
homeless population in the city.
3.2.1 — Coordination
The City does not directly offer any homeless shelters or transitional housing. Continue working
with Kitsap County and service providers to provide outreach and offers for service and shelter
for homeless individuals.
This could include creation of a standardized directory of support services with available times
and contact information (such as food banks, shelters, counseling, public transit, etc.), and
distribute it on the City website and in print with local service providers. Assign a City staff
person to contact each service at least monthly to maintain and update the directory.
3.2.2 — Adopt a "Housing First" Approach
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
43 "Homelessness — Common Questions & Answers." Washington State Department of Commerce. January 2019.
https://www.skagitcounty.net/HumanServices/Documents/Housing/Homelessness°/o20FAOs°/o2001-2019.pdf
44 "Homelessness is a Housing Problem." Greg Colburn and Clayton Page Aldern.
https://homelessnesshousingproblem.com/
45 "How COVID-19 Could Aggravate the Homelessness Crisis?" August 2020. United States Government
Accountability Office. https://www.gao.gov/blog/how-covid-19-could-aggravate-homelessness-crisis
46 Kitsap County Point In Time Count. https://www.kitsapgov.com/hs/Pages/HH-Point-in-Time.aspxx
Port Orchard Housing Action Plan — June 2023 1 DRAFT — APRIL 25, 2023 Page 41
most vulnerable people.41 This is because it is extremely difficult or impossible to address the
personal, financial, mental, or physical problems that underlie homelessness while simply trying
to stay alive.
The "housing first" approach eliminates bureaucratic steps and places no criteria on sobriety,
employment, criminal history, or completing a religious program before individuals are moved
into a home. When someone is drowning, it doesn't help if a rescuer insists the victim learn to
swim before bringing them to shore. They can address their issues once they are on solid
ground with private space, a stable address, and the dignity of meeting basic needs like food,
warmth, and bathing.
This approach is less costly to taxpayers than the combined costs of roving service contacts,
emergency room visits, jail and shelter stays, towed vehicles, and maintenance of public
spaces. Success stories and lessons abound from places as varied as Houston, TX, Columbus,
OH and Salt Lake City, UT.
The provision of homes can be done indirectly through vouchers, in which public funding
directly subsidizes the cost of a market -rate rental unit, or directly through publicly owned
housing. The type of housing is oftentimes and preferably in the form of apartments which are
the cheapest type of housing to build and operate per unit. Sometimes existing apartment or
motels are purchased, or a warehouse can be renovated for residential use. "Tiny home
villages", which are rapidly constructed on vacant sites or parking lots, may be appropriate but
only on a temporary basis since they are not as durable, weather-proof, or livable as permanent
structures.
"Housing first" includes intensive wraparound social services and case management for the
residents, either on -site or off -site. These services usually include support for people living with
complex and disabling behavioral health or physical health conditions, addiction treatment, and
employment assistance. Research has found that an overwhelming majority of permanent
supportive housing residents eventually stabilize their lives and health enough to move to
market -rate housing.
The "housing first" policy has its limitations. It can only work if housing and service providers
agree on the approach, if there is enough supply of housing available to work with at different
income levels, and there is adequate long-term funding. All three requirements will require
strategic planning and time to develop. To that end, this HAP recommends the following:
• Convene a meeting of all relevant homelessness stakeholders to discuss the "housing
first" approach
• Adopt a "housing first" policy in the Comprehensive Plan
• Regularly survey and monitor the scale of the homeless population
• Provide or seek new funding for supportive housing such as rent vouchers or a City -
owned supportive housing development
• Study alternatives for providing supportive housing with City funding or grant funding
47 "Homelessness research: A guide for economists (and friends)." 2019.
https://www.sciencedirect.com/science/article/abs/pii/Sl 051137718302109
Port Orchard Housing Action Plan - June 2023 1 DRAFT — APRIL 25, 2023
• Inventory hotels/motels which could be candidates for purchase and conversion to
permanent supportive housing
• Explore programs and partnerships that could enable more social, health, and human
care services to establish branch locations in Port Orchard.
Port Orchard Housing Action Plan - June 2023 1 DRAFT — APRIL 25, 2023 Page 43
3.3 — Support Staffing Needs
Action: Fund, recruit, and hire a housing coordinator to help implement this Housing
Action Plan, connect and collaborate with housing stakeholders, and promote more
market -rate and affordable housing development in Port Orchard.
A housing coordinator would be a specialized
position in the Community Development
Department that promotes implementation of the
Housing Action Plan and provides long-term policy
support and relationship -building among Port
Orchard's residents, landlords, developers, human
service providers, and City staff.
This could be a permanent position or, at a
minimum, a two year position focused on
implementing the Housing Action Plan.
Key responsibilities for the position should include:
• Implement the actions and strategies of the Housing Action Plan
• Plan, organize, coordinate, and implement the work plan and policies related to the City's
housing policies, projects, and programs. Study, evaluate, and recommend housing
policies and procedures.
• Serve as the City liaison to other departments and advisory boards on housing issues
related to housing policy and provide citywide leadership and coordination on housing
policy issues.
• Oversee and manage the City's housing funds including the housing sales tax and
Community Development Block Grant funds. Monitor other state funding and grant
opportunities and write applications for funding, including joint applications with partner
agencies.
• Administer and monitor the MFTE program and provide guidance for property owners
• Monitor housing production, the number and location of affordable housing units, and
the number of unhoused people in Port Orchard and support department reports on
housing and demographic trends
• Build relationships with community partners in the non-profit, public, and private sectors,
including acting as liaison to Housing Kitsap, Habitat for Humanity, and
• Market Port Orchard to the residential real estate industry and manage inquiries, with a
focus on promoting the qualities of the town, economic development opportunities, the
friendly regulatory environment, and any financial incentives available
• Recruit human service providers and senior housing developers to locate and build
facilities in Port Orchard
• Connect businesses and prospective residents to housing listings and providers
• Connect tenants and landlords to resources help resolve disputes
• Educate property owners and developers on development regulations and site -specific
opportunities and share resources such as case studies, best practices, property
maintenance standards, and property tax resources
Port Orchard Housing Action Plan - June 2023 1 DRAFT — APRIL 25, 2023 Page 44
Monitor changes to the Growth Management Act and related state laws on housing
Qualifications for the position should include:
• Bachelor's degree in planning, real estate, public administration, finance, economics,
business, or other fields where the knowledge and skills can translate to the
responsibilities of the position.
• Considerable (3-5 years) experience in program management, affordable housing policy,
community planning, public policy, real estate finance or development, business
administration, or economic development.
• Proficiency with Microsoft Office and other software related to planning operations.
The ideal candidate will:
• Have a creative, open-minded, and pragmatic attitude.
• Thrive in a fast -paced, team -based environment while also being able to work
independently.
• Clearly communicate ideas and concepts.
• Have strong organizational and data analysis skills.
Port Orchard Housing Action Plan - June 2023 1 DRAFT — APRIL 25, 2023 Page 45
4 - Citywide Planning Strategies
These actions relate to the City's budget and updating the Comprehensive Plan.
4.1— Housing Element Updates
Action: In the next Comprehensive Plan update, update the Housing Element to
support the actions of this Housing Action Plan and integrate new provisions required
by state law.
Recent updates to the Growth Management Act require some updates on data and
goals/policies for the Comprehensive Plan's Housing element. Many of these required updates
overlap with the data and objectives provided in this Housing Action Plan, though some
additional work may be needed.
In addition to statements of goals, policies, objectives, and mandatory provisions for the
preservation, improvement, and development of housing, updated RCW 36.70A.070(2) (2021)
now requires:
• An inventory and analysis of existing and projected housing needs that identifies the
number of housing units necessary to manage projected growth including:
o Units for moderate, low, very low, and extremely low-income households
o Emergency housing, emergency shelters, and permanent supportive housing
• Goals and policies for moderate density housing options including, but not limited to,
duplexes, triplexes, and townhomes
• Identify sufficient capacity of land for housing including, but not limited to, government -
assisted housing, housing for moderate, low, very low, and extremely low-income
households, manufactured housing, multifamily housing, group homes, foster care
facilities, emergency housing, emergency shelters, permanent supportive housing, and
consideration of duplexes, triplexes, and townhomes
• Makes adequate provisions for all economic segments of the community, including:
o Low, very low, extremely low, and moderate -income households
o Documenting programs and actions needed to achieve housing availability
including gaps in local funding, barriers such as development regulations, and
other limitations
o Consideration of housing locations in relation to employment location
o Consideration of the role of accessory dwelling units in meeting housing needs
• Identify local policies and regulations that result in racially disparate impacts,
displacement, and exclusion in housing, including:
o Zoning that may have a discriminatory effect
o Disinvestment
o Infrastructure availability
• Identify and implement policies and regulations to address and begin to undo racially
disparate impacts, displacement, and exclusion in housing caused by local policies,
plans, and actions
Port Orchard Housing Action Plan - June 2023 1 DRAFT — APRIL 25, 2023 Page 46
• Identify areas that may be at higher risk of displacement from market forces that occur
with changes to zoning development regulations and capital investments; and
• Establish anti -displacement policies, with consideration given to the preservation of
historical and cultural communities as well as investments in low, very low, extremely
low, and moderate -income housing; equitable development initiatives; inclusionary
zoning; community planning requirements; tenant protections; land disposition policies;
and consideration of land that may be used for affordable housing.
In the annual amendment cycle or the next major update (due in 2024), the Housing Element
could be updated with specific policies relating to the many strategies and actions of this
Housing Action Plan. Relevant HAP actions to acknowledge at the comprehensive planning
level may include, but are not limited to, the following:
• Development regulation streamlining that provides more housing options
• Guidance on homelessness reduction and prevention
• Support for a multifamily tax exemption program, tax increment financing for
infrastructure and affordable housing, and transit funding to support housing and
economic development
• Policies for the acquisition and disposition of surplus public land for affordable housing
(see Strategy 4.4), especially City -owned land in downtown.
• Support for new anti -displacement policies
4.2 — Land Use Element Updates
The Comprehensive Plan Land Use element should be reviewed for potential updates on these
issues.
4.2.1 — Corridor Zoning
Action: In the next major Comprehensive Plan Update, review the balance between
residential and commercial land capacity and adjust the future land use map.
Some of Port Orchard's major transportation corridors are targeted for transit investments by
Kitsap Transit. The Comprehensive Plan update should consider whether land use regulations
and infrastructure plans are supportive of transit -oriented development, particularly in
designated centers.
The City's primary commercial corridor, Bethel Road, is planned to have an upgraded roadway
with roundabouts and bike and pedestrian infrastructure in the next few years. At the same time,
Kitsap Transit plans a bus rapid transit route in the corridor. However, there is room for
improvement in land use and amenities in the transit walkshed (a quarter to half mile). The
corridor has a patchwork of zoning with few clear patterns and low building height limits,
including low -density residential zoning both inside and outside the city limits. Existing
development is largely not pedestrian -oriented, being characterized by large parking lots, low -
scale commercial buildings, residential cul-de-sacs, and a discontinuous street grid. The
Commercial Heavy zone does not allow general residential development, potentially locking in
suburban -style strip malls and shopping centers on large parcels. There are no public parks,
schools, community centers, or other civic amenities in the corridor that can help attract and
Port Orchard Housing Action Plan - June 2023 1 DRAFT — APRIL 25, 2023 Page 47
serve high -density residential development. Opportunities for infill and mixed -use
redevelopment, including affordable housing, should be explored in the Comprehensive Plan
and a future Bethel subarea plan.
The Mile Hill corridor has similar challenges but at a smaller scale. Incentives could be adjusted
to support redevelopment of strategic sites like self -storage facilities and infilling underutilized
parking lots. Explorations should consider the proximity to Downtown, South Kitsap High
School, and Blackjack Creek.
The Tremont, Pottery, and Sidney corridors are generally characterized by R2 or BPMU zoning
and proximity to parks and schools. Kitsap Transit plans transit service enhancements in some
of these areas. Upzones to allow at least moderate -scale multifamily development in more
areas should be considered.
The Lund and Jackson corridors in the unincorporated urban growth area could also be
explored for near -term annexation and subsequent zoning that incentivizes infill middle housing
and multifamily housing which helps pay for infrastructure and services. These areas are mostly
developed with a mix of low -to -medium density housing and have an identity linked to Port
Orchard. Proximity to South Kitsap Regional Park and several schools is an asset to be
leveraged.
4.2.2 — Neighborhood Commercial Uses
Action: Review the opportunity for allowing small neighborhood commercial uses in
residential neighborhoods. .
Residential zones are not permitted to have restaurants, cafes, convenience stores, or other
types of small commercial uses. The City uses the NMU zone for this purpose, which allows the
shopfront house building type (also see Strategy 2.2.6) but not single -purpose apartment
buildings. Consider adding more nodes of NMU zoning in residential neighborhoods, particularly
on corner lots. Forest Park Grocery and Deli near the intersection of West Avenue and South
Street is a good example of the types of development that may occur with this zoning over time,
providing more neighborhood services within walking distance of housing.
Review other NMU zoning standards to ensure commercial uses are well -integrated into
residential neighborhoods. This could include limitations on the size of commercial uses (e.g.
1,000 to 2,500 square feet, with clarity on gross or net), reduced or eliminated off-street parking
requirements for businesses, and prohibiting incompatible activities such as outdoor storage.
4.2.3 — Park -Oriented Development
Action: Consider increasing zoning capacity around Port Orchard's major parks.
Port Orchard's parks are major assets of the community, and access to outdoor recreation is
important for public health and well-being. Allowing more housing near major parks (such as
within a quarter -mile) can have several benefits, including allowing more people to walk and
bike to parks for healthy recreation and encouraging a long-term increase in park users and
community ownership of parks. Park access is particularly important for families with children.
Notable rezoning opportunities are in the areas around Van Zee Park, Givens Playfield (also
adjacent to a community center), and Clayton Park. Most parks are also near transit stops.
Port Orchard Housing Action Plan — June 2023 1 DRAFT — APRIL 25, 2023 Page 48
Part of the area north of Givens Playfield is also near the Kitsap County campus and zoned
BPMU. This area consists mostly of detached homes and some vacant lots. The zoning
encourages a transition to commercial uses over time, though little such activity has occurred.
Rezoning this area for park -oriented development could also have the dual benefits of
increasing the feasibility of mixed -use development with commercial space and multifamily
housing.
Figure 12 - The vicinity of Givens Playfield (Google Maps)
Another large park which Port Orchard residents utilize is South Kitsap Regional Park. This is
currently outside the city limits but contained in the urban growth area. When this area is
annexed the City should consider park -oriented zoning that allows for a wider range of housing
types near the park.
Port Orchard Housing Action Plan — June 2023 1 DRAFT — APRIL 25, 2023 Page 49
4.2.4— Parking
Action: In the next major Comprehensive Plan Update, review the need for minimum
parking requirements citywide and review national case studies for best practices.
Parking is an issue that should be revisited in the next Comprehensive Plan update. Consider
policy support for removing minimum requirements entirely, as is increasingly being done in
cities and states across the country and called for by professional planning and engineering
organizations .48, 49 A related option is to add maximum parking requirements, especially for the
most intense uses such as retail.so
Removing parking requirements does not have any immediate effect on housing supply or
prices or neighborhood design. Related requirements such as parking lot landscaping and
stormwater treatment for impervious surfaces would remain. Over time, it gives the power of
parking design back to property owners and businesses to decide how much parking they need
to attract tenants and customers.51 New development will still include parking spaces, but the
number of spaces will be decided based on what owners need based on their experience and
budget rather than government rules.sz
Removing the minimum requirement can also ease the
renovation of older vacant buildings and allow new small
businesses to open in commercial spaces where they
couldn't before. Removing parking requirements
significantly reduces the red tape and studies that are
required to justify modifications, reductions, or cooperative
parking agreements, the costs of which may exceed the
budgets of local property owners or small investors. Starter
homes like townhomes and condos may become easier to
build and improve homeownership opportunities.
Removing parking standards would complement increased
transit service, as discussed in Strategy 5.6.
At the minimum, new state law adopted in 2023 (House Bill 1110) sets maximum limits on the
minimum parking spaces for middle housing (duplexes, triplexes, fourplexes, fiveplexes,
sixplexes, townhouses, stacked flats, courtyard apartments, and cottage housing). This
preemption must be codified within six months of the major Comprehensive Plan update being
adopted. Up to one parking space per unit may be required on lots smaller than 6,000 SF (before
any zero lot line subdivisions or lot splits) and up to two 2 spaces per unit may be required on
larger lots.
48 "Parking Reform Network." https://parkingreform.org/resources/mandates-map/
49 "Rethinking Parking Minimums." Institute of Transportation Engineers. February 2019.
https://www.dropbox.com/s/1 becvgm8ebznwj2/ITE°io20journal.pdf?dl=0
50 -Parking Maximums." Sustainable Development Code. https://sustainablecitycode.ora/brief/parking-maximums-7/
51 "End Parking Mandates & Subsidies." Strong Towns. https://www.stronatowns.ora/parkina
52 "Save Anchorage from Parking Mandates." Sightline. September 2022.
https://www.siahtline.ora/2022/09/30/save-anchorage-from-parki ng-mandates/
Port Orchard Housing Action Plan — June 2023 1 DRAFT — APRIL 25, 2023 Page 50
4.3 — Public Land for Affordable Housing
Actions: Consider rezonings, environmental assessments, pre -development activities,
and partnerships to promote use of surplus public land for affordable housing.
The City has a modest amount of surplus publicly -owned land. Some of it is well -located or
positioned to merit consideration for housing development. Considerations for key properties
and strategies are described in this section. Other public lands (such as those owned by Kitsap
County, the Port of Bremerton, and other agencies) could be reviewed in the future.
4.3.1 — Disposition Policy
Formally adopt a surplus land disposition policy that gives the right -of -first -refusal to affordable
housing developers or other community -determined uses, consistent with the allowances of
RCW 39.33.015 (note that some modifications to the affordability provisions of the statue were
made in 2023 under House Bill 1695). The policy could be adopted by City Council resolution
and embedded within the Comprehensive Plan's Housing Element (also see Strategy 4.2).
4.3.2 — Land Acquisition
The cost of land can be a major cost for any housing development, and providing a discounted
land lease or sale can help some projects become economically viable. Since the City does not
have much surplus land, the City can identify and purchase underutilized or vacant properties
that can be developed as affordable housing. Land assembly can be a powerful tool for putting
together larger sites that can be redeveloped at a more economically feasible scale.
This strategy could be focused on close -in locations (e.g. Downtown and the Bethel Avenue and
Mile Hill Drive corridors) where land ownership is fragmented. Port Orchard may also focus on
vacant, abandoned, or tax -delinquent properties. These sites usually have negative impacts on
surrounding properties and the City's role would include resolving ownership issues and/or
addressing tax liens or land encumbrances that otherwise deter developers from pursuing these
properties.sa
Once acquired and assembled, Port Orchard would lease or sell the land for affordable housing.
See the related need for a land disposition policy in Strategy 4.4.1
4.3.3 — Tremont/Pottery Roundabout Property (Parcel 342401-4-016-2001 & 342401-
4-015-2002)
This is a one -acre vacant site within the Tremont Center and zoned Commercial Mixed Use. The
site could be viable for townhomes or multifamily development with a small commercial
component, potentially leveraging new single stair provisions (see Strategy 2.4.7). It is eligible
for the Type 1 and Type 3 MFTE programs, which could improve the feasibility of affordable
housing on the site.
While Tremont Street is newly rebuilt with pedestrian and bike infrastructure, the general area is
not walkable to services besides gas stations, medical offices, and schools. This and parking
53 "Support the Reuse of Abandoned, Vacant, & Delinquent Properties." Family Housing Fund.
https://www.fhfund.org/report/reuse-of-abandoned-properties/
Port Orchard Housing Action Plan - June 2023 1 DRAFT — APRIL 25, 2023 Page 51
requirements will require a significant portion of the site be dedicated to surface parking,
limiting the housing capacity of the site. Some amount of structured parking might be
economically feasible with the savings from a discounted land transfer, though the site's
irregular shape could make efficient parking layouts a challenge. Parking could potentially be
shared with the healthcare facility directly behind the site to the north.
Development could fully or partially vacate Alder Lane, which is City right-of-way and does not
serve any other properties (any utilities may need to be relocated). The site could also
potentially expand by acquiring part of the adjacent healthcare facility site if there is
underutilized parking there; that site is zoned as Public Facilities which does not allow any
residential land uses.
EOF
i
4.3.4 — Mitchell Avenue Property (Parcel 252401-3-045-2009)
This is a 1.7 acre forested site within the Lower Mile Hill Center and it is zoned R4, which allows
up to four-story buildings. The site boundary has a small cutout of R3 zoning where there is a
cell phone tower. The site could be viable for townhomes or multifamily development. The site
is across the street from South Kitsap High School and could be an ideal location for family
housing (units with two or more bedrooms). It is eligible for the Type 1 MFTE program, which
could improve the feasibility of affordable housing on the site.
The site is moderately sloped, with a 70 feet elevation difference between the top and bottom of
the property (a horizontal distance of 240 feet). Significant tree standards and topography may
Port Orchard Housing Action Plan — June 2023 1 DRAFT — APRIL 25, 2023 Page 52
add construction costs and reduce housing capacity, but the economic feasibility may also be
improved with the savings from a discounted land transfer. A recent study by Portland State
University suggested an increase of 40-50% in development costs for affordable housing built
on sites of 20% slope or more.54 The site could potentially be configured with two separate
clusters of buildings at the top and bottom of the hill. The site is bordered to the west and north
by strips of undeveloped City right-of-way, which could be vacated to expand the site and/or
provide access solutions.
The site could also potentially expand by acquiring one or more of the adjacent parcels,
particularly off Bethel Avenue, to increase circulation options and improve economies of scale.
The adjacent commercial properties are either vacant or have low -value improvements, they are
zoned Gateway Mixed Use, and they are within the Downtown Height Overlay District 5 which
allows up to five -story buildings.
r
19
V
Legend
City -Owned Parcels
Other Parcels
54"Impact of Slope on Housing Development Costs." Portland State University. 2010.
https://www.pdx.edu/realestate/sites/g/files/znldhr3251 /files/2020-
10/01 _impact_of_slope_on_development_SU20_p2. pdf
Note: This study also has other useful data on the impact of slope on development costs for various building types
Port Orchard Housing Action Plan - June 2023 1 DRAFT - APRIL 25, 2023 Page 53
5 - Funding Strategies
These actions relate to the financing and funding of affordable housing and related issues like
taxes, fees, and state law.
5.1- Multifamily Tax Exemption Program
Action: Update 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.
5.1.1 - MFTE Overview
A multifamily tax exemption (MFTE) program is authorized by a 1995 state law, RCW 84.14.
Cities can grant an 8-year property tax exemption for any multifamily development or a 12-year
exemption for multifamily developments that reserve at least 20 percent of units for low- and
moderate -income households.
The state made several changes to the MFTE program in 2021. The 12-year tax exemption and
affordability covenants can now be renewed for 12 more years if the property owner continues
to provide units affordable to low-income families. Cities may now also offer a 20-year tax
exemption for ownership units if at least 25 percent of these condominium units are sold as
permanently affordable ownership housing.ss
A MFTE program can be used for new buildings or existing buildings that require major
rehabilitation. For cities under 20,000 residents, both the 12-year and the 20-year programs
require the development to be in a zone that allows at least 15 dwelling units per acre.
Land, existing site improvements, and non-residential improvements are not exempt and are
subject to normal property taxes. At the local government's discretion, the exemption's basis
may be limited to the value of affordable units or other criteria. The local government has
latitude in many aspects. It can require certain public benefits, change what types of
development apply, and can map specific areas where the exemption is available. Cities can
also set lower maximum rent prices than the statute allows and other lease stipulations such as
requiring the participating units to be pet -friendly.
The MFTE program can have complex fiscal implications due to Washington's "levy lid"
restrictions which limit the rate of increase of total regular property tax revenue to 1 % per year
for communities of 10,000 or more. In theory, the value of the tax exemption granted to
developers would represent foregone revenue for the city. However, the reality is more
complicated. Construction of MFTE projects often takes place over multiple years and county
assessors are required to factor in the portion of new projects which are completed by July 31
each year. However, the tax exemption itself does not take effect until January 1 after the year
in which the project is completed. Theoretically, the assessor should remove the value of the
partially -constructed MFTE properties which were previously added at this point, however, in
55 "Overview of 2021 Changes to the Multifamily Housing Tax Exemption Program." Washington State Department of
Commerce. https://deptofcommerce.box.com/shared/static/7k5p88yv4l m8ot882gbtzafwzlofkf05.pdf
Port Orchard Housing Action Plan — June 2023 1 DRAFT — APRIL 25, 2023 Page 54
reality this happens inconsistently. As a result, the value of the portion of the property which
was completed in years prior to the final year of construction can result in a "tax shift" where
taxes on that portion of the project's property value are shifted to the citywide tax base if that
portion is not removed from the assessor's table of total taxable property value.56 This complex
situation can obfuscate whether the tax exemption results in foregone revenue to the city or
whether it merely shifts taxes to the citywide tax base. In most cases, both are occurring to
some degree. The Washington Joint Legislative Audit and Review Committee's 2019 audit of
the MFTE program found that they could not determine the amount of local tax savings which
was shifted to other taxpayers as a result of the complex situation around the "levy lid."57
5.1.2 — Port Orchard MFTE Summary
Port Orchard has had an MFTE program in place since 2016, which is codified under Chapter
3.48 POMC, and which provides three types of exemptions. The "Type 1 " program is a 12-year
exemption available to properties zoned for multifamily or mixed -use near transit or ferry and
requires 20 percent of units to be rented at affordable rates based on HUDs fair market rent.
The "Type 2" program is an 8-year exemption available to abandoned or underutilized properties
within local centers of importance which are encouraged to redevelop. The "Type 3" program is
an 8-year exemption available to properties within local centers of importance and zoned for
multifamily or mixed -use with requirements for denser, "urban" style development: a minimum
density of 50 units per acre and at least 50 percent structured parking, shopfronts equal to 40
percent of all building footprints, or additional height purchased through the city's transfer of
development rights program.
A total of four projects totaling 332 units (including 20 affordable units) have been built using
Port Orchard's MFTE program, and four more projects totaling 427 more units (including 45
affordable units) are currently in progress. For a full summary of Port Orchard's MFTE program,
see Section 5 of the Existing Conditions and Housing Needs Analysis Report in the Appendix.
Port Orchard's method of setting subsidized rents in MFTE projects at 10 percent below HUD
fair market rents is unusual, as most jurisdictions in Washington rent subsidized MFTE units to
families earning between 80 and 115 percent of HUD's MFI for their area, and cap the rent at 30
percent of the household's income, adjusted for household size. 58 However, Port Orchard's
system meets legal state requirements and, based on a preliminary analysis, seems to result in
rents which are lower than those based on the larger Bremerton -Silverdale MSA HUD MFI.
5.1.2 — Recommendations
Port Orchard has seen an increase in proposed downtown residential -commercial mixed -use
projects in recent years. Since these types of projects would be eligible for MFTE funding, it is
important to revisit and potentially update some aspects of the program to balance the benefit
56 This concept is very complex and more information can be found in Commerce's "What is Tax Shift?" guidesheet
here https://deptofcommerce.app.box.com/s/90Vp2ebm467ddpmb1 c5u3d4ei22cs1 n as well as starting on p. 37 of
Commerce's MFTE guidebook here: https://deptofcommerce.app.box.com/s/i*5o80ne5el740mmh6uO5gr*k047a3cw
57 The JLARC audit's findings can be found at: https://leg.wa.gov/*Iarc/taxReports/2019/MFTE/f_ii/default.html
58 Following HUD's definition of a "cost -burdened" household
Port Orchard Housing Action Plan - June 2023 1 DRAFT — APRIL 25, 2023 Page 55
and foregone tax revenue of affordable units to ensure the program's goals are being met and
to address recent changes in the program allowed under state law.59
Clarify map and zoning of areas of MFTE eligibility. MFTE projects must be in urban centers as
defined by RCW 84.14.010, which describes compact districts with a variety of shops, a mix of
uses, and public facilities. Port Orchard's municipal code contains maps of parcels eligible for
MFTE funding, but they are difficult to read and are not updated with the latest parcel lines, as
shown below in Figure 6. An improved map which shows both the city's established "centers"
and the outline of areas eligible for MFTE development at a larger scale would streamline the
process for potential developers.
_ t
Ll 1
Figure 13. Maps of parcels currently eligible for the Type 1, Type 2, and Type 3 MFTE programs. Source: City
of Port Orchard Municipal Code
Correct definition of underutilized buildings. POW 3.48.040(2)(a)(iii) states that underutilized
buildings have an "assessed building value to land ratio of two -to -one or more." This appears to
be backwards, as underutilized buildings are defined by a low building to land -value ratio. The
code should be revised to state "building value to land ratio of two -to -one or less," or land value
to building value ratio of two -to -one or more."
Add minimum density in units per acre to multifamily and mixed -use zones. State law requires
that 12-year and 20-year MFTE programs which contain affordable rental or homeownership
units be located in areas zoned for a minimum average density of 15 units per acre in cities with
populations under 20,000. Port Orchard does not currently define minimum unit densities in its
code, although the allowed zoning in MFTE areas likely meets this threshold based on allowed
height, setbacks, FAR, etc. However, to better comply with state law, considering quantifying
minimum densities in the zoning code for mixed -use and multifamily zones. See Section 2.3.3
for considerations.
Consider changes to the method of income calculations for affordable units and conduct an
audit of the program. Port Orchard's program is unusual in that it uses HUD fair market rent to
calculate rents for subsidized units. Although the system seems to be working and is allowed
under state law, it may be more complex for developers or property managers who are
accustomed to methods used in most other cities where MFTE programs are tied to the HUD
median family income. If the City wishes to ensure a deeper level of affordability compared to
"A comprehensive list of 2021 legislative changes to the MFTE program can be found here:
https://deptofcommerce.box.com/shared/static/7k5p88yv4l m8ot882gbtzafwzlofkf05.pdf
Port Orchard Housing Action Plan — June 2023 1 DRAFT — APRIL 25, 2023 Page 56
the MFI, the program could be calibrated to a lower level (such as 60 percent rather than 80
percent MFI). Regardless of the method used, the city should audit the MFTE program annually
to ensure that the cumulative benefit to income -restricted residents is greater than the foregone
revenue from the tax exemption. This audit should be conducted by the Community
Development or Finance department and should result in an annual report presented to city
council. Additionally, consider partnering with Housing Kitsap for MFTE administration and to
reduce city staff's workload when verifying incomes of subsidized unit residents, since housing
authorities have infrastructure and skills in place to conduct such income verifications.
Consider removing transit proximity for affordable units. Port Orchard's Type 1 program
currently requires projects to be within 'i2 mile of a transit stop or ferry terminal. Although this
provides benefits to lower -income residents who do not own vehicles, the quality and availability
of transit service in Port Orchard is low and is a recent study by WSDOT indicates that transit in
the city is not at the level or frequency which encourages residents to own fewer vehicles."
It is also not clear that transit proximity has any practical effect, since the maps for the Type 1
and Type 3 programs are nearly identical. Removing this requirement could expand eligible
projects and the distribution of affordable units across the city.
Consider a height bonus for MFTE developments. Currently Port Orchard allows a height bonus
for Type 3 MFTE developments through the Transfer of Development Rights (TDR) program.
Such programs are rarely used. Numerous cities in Washington, including Port Angeles and
Kirkland, allow height bonuses in exchange for the provision of affordable units in their MFTE
programs. Consider adding such a bonus to the MFTE to improve development feasibility. Such
a program could have separate height bonus allowances based on zoning and MFTE program
type. See Strategy 2.3.2 for more details.
Streamline requirements for Type 3 program. The Type 3 program currently has somewhat
stringent requirements to create denser, urban -style buildings through various criteria. Although
the intention to stimulate higher density development in centers is an important component of
the program, recent projects suggest that the share of structured parking, density, and
commercial square footage required may be disincentivizing use. Each of the three
requirements could be streamlined to increase viability of participating in the program:
The requirement for 50 percent structured parking combined with 50 units per acre of
density may be redundant since the only way to achieve higher densities is by putting
parking into structures. Eliminating the structured parking requirement but retaining a
relatively high -density requirement (40-50 units per acre) would effectively require that
the project either include structured parking or that surface parking ratios are relatively
low.
• Reducing the requirement for 40 percent of all building footprints to contain
commercial use or replacing this requirement with a required minimum percentage of
the frontage being commercial would be appropriate given the exiting amount of
60 "Frequent Transit Service Study." Washington State Department of Transportation.
https://enaaae.wsdot.wa.aov/frequent-transit-service-study/
Port Orchard Housing Action Plan - June 2023 1 DRAFT — APRIL 25, 2023 Page 57
commercial zoning in Port Orchard. The design requirements in the MFTE ordinance
may also be superfluous given the existing block frontage standards in POMC 20.127.
• Finally, an overall height bonus for MFTE developments as discussed above may be
more effective than the TDR height bonus option currently in the Type 3 program.
Reduce minimum number of units required for participation. Port Orchard's program currently
requires a minimum of 10 units in a project to qualify for the MFTE program. State law only
requires a minimum of four units. Updating the Port Orchard program to require a minimum of
four units would bring the program in line with statewide standards as well as potentially
providing added feasibility for smaller "missing middle" housing types.
Consider adding a requirement for affordable units to be distributed within a
development/building. This promotes principles of mixed -income communities and avoids real
or perceived concentrations of pover
Consider adding a 20-year MFTE program. Since 2021, cities under 20,000 residents such as
Port Orchard can add a 20-year ownership MFTE program under RCW 84.14.021(1)(b) where at
least 25 percent of units must be sold to a qualified nonprofit or local government partner that
will ensure permanent affordable homeownership. Providing affordable homeownership
opportunities to low- and moderate -income households can help build wealth for households
which otherwise could not afford to own a home.
Allow a 12-year extension for Type 1 participating property owners. Since 2021, cities are
allowed to grant a 12-year extension to existing MFTE programs within 18 months of expiration.
Multifamily housing approved for a 12-year extension must maintain 20% of units as affordable
for low-income households (during the extension period moderate -income households are no
longer included in the affordable unit counts). Tenant notice and relocation assistance are
required in the 10th and 11th years of projects receiving a 12-year extension (see more detail
below). Port Orchard should consider adding this provision to its MFTE program to ensure
continued affordability of units created through this program.
Require relocation assistance for low-income tenants whose rent subsidy is expiring. The
2021 changes to the MFTE program which allow the 12-year extension described above also
require that landlords provide notice in the 10th and 11th years of the program that it will expire in
the 12th year and provide one month's rent as relocation assistance to qualified tenants in their
final month of tenancy. Best practices in line with the anti -displacement strategies in Strategy
3.1 would also extend these tenant protections to any Type 1 property, regardless of whether it
is an extension or not.
Port Orchard Housing Action Plan - June 2023 1 DRAFT — APRIL 25, 2023 Page 58
5.2 — Development Fee Adjustments
Action: Consider 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. Some adjustments may be needed to impact fee structure to comply
with 2023 state legislative changes.
Port Orchard, like many municipalities, levies impact and development fees on new construction
to fund improvements in infrastructure for schools, parks, and other services, as well as hookup
and general facilities charges for water and sewer connections to new developments.
Stakeholders interviewed by the HAP project team in 2022 indicated that Port Orchard's fees are
considered to be high, particularly in relation to Kitsap County's fees and other nearby
jurisdictions. A full breakdown of Port Orchard's impact fees can be found in the appendices of
the Existing Conditions and Housing Needs Analysis Report.
Water and sewer hookup fees and general facilities charges are difficult to compare due to
different structures across municipalities, but Port Orchard's fees seem to be at the higher end
of the Kitsap region, at $11,571 per water hookup and $12,788 per sewer hookup per ERU
(defined in the code as one single-family dwelling unit of any type, attached or detached). By
comparison, Bremerton charges $4,245 for water hookups and Poulsbo charges $5,065 for
water hookups and $11,211 for sewer hookups per ERU.
Port Orchard does prorate its impact fees by unit type. This is a best practice in encouraging a
diversity of housing types and sizes. However, the margins of discount for 2-4 unit buildings
could be increased to incentivize more "middle housing" development. Senate Bill 5258,
adopted in 2023 and codified in RCW 82.02.060, now requires that impact fees for residential
development have proportionally lower fees for smaller housing units. The method of
calculating the proportional impact fees must be "based on the square footage, number of
bedrooms, or trips generated" by the new housing unit. The new legislation takes the best
practice of prorating impact fees by housing unit type and size, and makes it a requirement
across the State. Port Orchard will need to study its impact fee structure and potentially make
adjustments or demonstrate that the existing fees comply with this new legislation.
In addition, some cities reduce impact fees for affordable housing units and are allowed to
reduce such fees by up to 80% under RCW 82.02.060. Port Orchard could consider some
reductions for affordable housing units to incentivize more development of subsidized units.
House Bill 1326, passed in 2023, now also authorizes waivers for utility connection charges for
nonprofits and housing authorities building affordable housing. Finally, Port Orchard currently
exempts small ADUs from sewer and water hookup fees as discussed in Section 5.4, another
best practice in encouraging infill housing.
Any reduction in impact or hookup fees or GFCs would need to be rebalanced elsewhere for
market -rate development.
Port Orchard Housing Action Plan — June 2023 1 DRAFT — APRIL 25, 2023 Page 59
5.3 — Local Bank Funding
Action: Encourage local banks to create a fund for affordable housing finance
Under the Community Reinvestment Act (CRA), banks are required to meet the credit needs of
low- and moderate -income households in communities in which they operate. Many banks meet
their CRA requirements by investing in Low -Income Housing Tax Credits (LIHTC), providing
capital to nonprofit affordable housing providers who use the capital to build regulated
affordable housing, usually for households earning under 60-80 percent of the AMI. Outside of
LIHTC, some banks are also working with cities across the country to fund other types of
affordable housing, including "workforce" housing for households earning between 80 and 120
percent AMI, through non -tax credit programs.61 For example, the Charlotte Housing Opportunity
Fund combines city bond money with private investment from banks to provide gap funding for
affordable housing projects. The fund has doubled the city's affordable housing finance pool
since 2019, creating or preserving 1,047 housing units in the city.62 The Washington Housing
Initiative Impact Pool is a similar nonprofit -run fund which targets housing for low- and
moderate -income African American residents of Washington D.C.63
Port Orchard could consider working with local banks to create a such housing fund which
could be used for gap financing of affordable housing projects and which would encourage
local banks to invest in the Port Orchard community. Outreach to and coordination with the local
lending community could be part of the work of the housing coordinator position described in
section 3.3.
5.4 — Tax Increment Financing 1
Action: Explore the potential to use Tax Increment Financing (TIF) for identified sites
and projects in the Downtown and Waterfront areas.
In 2021, Washington State granted new powers of tax increment financing (TIF) to the state's
cities, counties, and port districts.64 This funding mechanism allows municipalities to establish
a geographic district (called the increment area) that is expected to benefit the most from a
proposed new infrastructure investment. Typically, bonds are issued at the outset and the
additional tax revenue resulting from the increased land and property values are then captured
to pay for the new infrastructure and pay off the bonds.
TIF is widely used in other states across the country, but Washington's new program has some
specific guidelines which differ from other states. In Washington, the state school levy and
some other local taxes used to repay general obligation bonds are exempt. Additionally, TIF
financing can only be used for specific authorized public improvements which are expected to
61 Mattson-Teig, Beth. "Banks Focus CRA Dollars on Affordable Housing." WealthManagement.com, Jan 2, 2020.
https://www.wealthmanaaement.com/finance-lending/banks-focus-cra-dollars-affordable-housing
62 "Charlotte Housing Opportunity Investment Fund creates affordablew housing and model for the future." LISC
Strategic Investments, June 14, 2022. https://www.liscstrateaicinvestments.ora/post/choif-three-year-impact-report
63 "Washington Housing Initiative Impact Pool: 2021 Impact Report." JBG Smith.
https://www. washingtonhousinginitiative.com/_files/ugd/36926a_182d6b3b6e814466a17bf33ec1616407.pdf
64 "Tax Increment Financing (TIF)". Municipal Research Service Center. https://mrsc.org/Home/Explore-
Topics/Economic-Development/Financing-Economic-Development/Tax-Increment-Financing.aspxx
Port Orchard Housing Action Plan — June 2023 1 DRAFT — APRIL 25, 2023 Page 60
encourage private development and increased assessed valuation which would not otherwise
happen without the improvements. These improvements may be located inside or outside the
increment area and include streets, water and sewer systems, sidewalks, streetlights, parking
facilities, parks and recreational areas, broadband service, or brownfield mitigation. TIF can also
be used to pay for long-term affordable housing, childcare service, providing maintenance and
security for public improvements, and acquiring property for historic preservation. Unlike in
other states, TIF funding in Washington can only be used for the specified projects or
improvements set forth in the initial application, and project lists cannot be modified later. Thus,
TIF is only applicable to existing and well-defined projects with specific infrastructure needs.
The TIF district must have a maximum sunset date of 25 years and not have an assessed
valuation greater than $20 million, and each city may not have more than two districts.65
Explore the possibility of using TIF in Downtown to continue to catalyze redevelopment
projects, street or active transportation investments. TIF could support infrastructure or utility
investments to support denser mixed -use developments such as the proposed development at
640 Bay Street66 could help support increasing housing supply downtown. TIF funds could also
be used for identified projects in the Downtown Subarea Plan such as a concept plan to "break
down the scale of existing large scale sites to provide a more walkable land -use pattern", or for
streetscape and pedestrian improvements to enhance livability of potential waterfront or
downtown redevelopment sites, particularly if or when such sites have development proposals.
67
TIF funding could also be considered for the Beth el/Sedgewick Corridor, which was the subject
of a corridor study in 2018 recommending changes to the road design which could be financed
through this funding mechanism.
65 "Washington State's Expanded TIF Authority Creates Powerful Catalyst for Public -Private Partnerships." Denis
Wright Tremaine. May 2022. https://www.dwt.com/insights/2021/05/washinaton-state-tax-increment-financing-
law
66 Detailed in the "Project Spotlights: Downtown Mixed Use" section of the Existing Conditions and Housing Needs
Analysis Report.
67 City of Port Orchard. "Downtown Port Orchard Subarea Plan."
https://storage.aoogleapis.com/proudcity/portorchardwa/uploads/2021 /07/FINAL-ADOPTED-Downtown-Subarea-
Plan-and-Regs-reduced.pdf
Port Orchard Housing Action Plan — June 2023 1 DRAFT — APRIL 25, 2023 Page 61
5.5 — Funding for ADU Development
Action: Explore the possibility of partially financing or streamlining ADU development
and permitting processes, particularly for lower -income homeowners.
Cities across the U.S. have adopted a variety of programs designed to reduce the cost of ADU
development for homeowners, including minimizing design review, waiving permit or utility fees,
providing technical assistance, and providing sources of financing.68 Port Orchard currently
allows ADUs of less than 1,000 square feet to be served by the same water and sewer
connections as the primary residence, a significant savings.69 In addition, Port Orchard
amended its ADU standards with Ordinance 038-22 in October 2022 which removes owner
occupancy and parking requirements for ADUs, two of the most common barriers to ADU
construction and feasibility.
Numerous municipalities including Boston, Los Angeles, Montpelier, VT, and Santa Cruz County,
CA have established programs which incorporate equity and loan assistance as well as
technical assistance and simplified permitting processes.70 Funding sources for these
programs include Community Development Block Grants, cities, philanthropists, and
partnerships with nonprofits such as Habitat for Humanity. Many of these programs are
targeted at lower -income renters, requiring either that the ADU be made available to households
earning 80% AMI or lower, or to households using Housing Choice (Section 8) Vouchers.
Onerous income reporting requirements can be a disincentive.
In some cases, these programs have been targeted at lower -income homeowners as well, such
as the Small Homes Northwest community ADU demonstration project implemented by
Hacienda CDC in Portland and funded by the Oregon legislature, which helps income eligible
homeowners develop ADUs in neighborhoods at risk of gentrification.
68 Chapple, Karen, Wegmann, Jake, Mashood Farzad, and Coleman, Rebecca. "Jumpstarting the Market for Accessory
Dwelling Units." Urban land Institute. https://ternercenter.berkeley.edu/wp
content/uploads/pdfs/Jumpstarting_the_Market=-_ULI.pdf
69 Port Orchard Municipal Code 13.04.030(1)(e)(i), 13.04.040(1)(e)(i)
70 ADU Aid Programs Across the U.S." Villa. https://villahomes.com/blog/adu-aid-programs/
Port Orchard Housing Action Plan — June 2023 1 DRAFT — APRIL 25, 2023 Page 62
5.6 — State Advocacy
Action: Advocate for additional state investment in the Housing Trust Fund,
condominium law reform, and Growth Management Act updates.
Surveying done for this HAP found strong community support for "City advocacy for more
county, state, or federal funding for affordable housing projects." Primarily, this should involve
lobbying the Legislature for more funds in the state's Housing Trust Fund, which provides
capital funding." The trust has helped build or preserve more than 50,000 affordable housing
units statewide since 1986. The Legislature appropriates funding to the trust every biennium.
More money in the trust would help smaller communities like Port Orchard (and the affordable
housing providers who work in Port Orchard) have a greater chance of receiving funding.
Port Orchard could also update its legislative agenda with condominium legislation reform.
Condos are a highly in -demand type of ownership housing, especially for first-time homebuyers
and seniors seeking to downgrade, but they are rarely built in Washington State due to the
liabilities placed on developers under state law.7273 The main barriers are a requirement for a
10-year warranty against construction defects and additional building code and inspection
requirements that do not apply to rental apartments.
The City may comment on reform to the State Environmental Policy Act (SEPA), which can add
significant delay and complications to approval of residential development. Advocacy might
involve exempting all residential development from SEPA review if the development intensity is
consistent with the Comprehensive Plan.
In addition, the City may comment on updates to state law that affect land use, housing, zoning,
and transportation. As noted in Section 1.4, zoning preemptions and other changes to the
Growth Management Act are likely to be proposed and debated by the Legislature in the coming
years. The City should provide input on proposals that affect the implementation of the Housing
Action Plan, either independently or through its involvement in statewide organizations like the
Association of Washington Cities.
Continued coordination and involvement with regional partners (such as Kitsap County) and the
federal government is also recommended to promote and fund affordable housing.
71 "Housing Trust Fund." Washington State Department of Commerce. https://www.commerce.wa.gov/building-
infrastructure/housing/housing-trust-fund/
72 "Washington state's condo law changes could ease restrictions." Spokane Journal of Business, November 2021.
https://www.spokane'ournal.com/specia I-report/washi ngton-states-condo-law-changes-cou Id -ease -restrictions/
73 "As Gen X and Boomers Age, They Confront Living Alone." The New York Times. November 2022.
https://www.nytimes.com/2022/11/`27/us/livina-alone-aaina.html
Port Orchard Housing Action Plan — June 2023 1 DRAFT — APRIL 25, 2023 Page 63
6 - Implementation
The planning matrix below organizes the actions of this Housing Action Plan. The City Council
and Mayor will be involved in most or all action implementation through ordinances, resolutions,
budgeting, and partnerships with other agencies. This matrix should be used as a framework for
regular progress reports on implementation and could be a live document on the City website.
DepartmentLead
# Description Priority ..
Regulatory Strategies
2.1
Expand the allowed
High
Planning
0-6
$
Development
uses
Services
months
regulation ordinances
2.2
Streamline the building
Medium
Planning
0-6
$
Development
type standards
Services
months
regulation ordinances
2.3
Adjust form and
High
Planning
0-6
$
Development
intensity standards
Services
months
regulation ordinances
2.4
Adjust other standards
Medium
Planning
0-6
$
Development
Services
months
regulation ordinances
Programmatic
Strategies
3.1
Anti -displacement
Medium
City Council
Ongoing
$$
Tenant Protection
strategies
Ordinance and future
amendments as
needed
Other strategies:
Further study, City
budget, and future
ordinances
3.2
Homelessness
Medium
City Council
Ongoing
$$
Intermediate actions
strategies
Other actions: Further
study and City Budget
3.3
Hire a housing
Medium
City Council
0-6
$$
City Budget
coordinator
months
Citywide Planning Strategies
4.1
Housing Element
Medium
Planning
12-24
$$
Comprehensive Plan
updates
Services
months
annual amendment
and major periodic
update
4.2
Land Use Element
High
Planning
12-24
$$
Comprehensive Plan
updates
Services
months
annual amendment
and major periodic
update
4.3
Public land for
Low
City Council
Ongoing
$$$
Partnerships, City
affordable housing
(with Planning
budget, policy in
Services)
resolution or
Comprehensive Plan,
Port Orchard Housing Action Plan - June 2023 1 DRAFT — APRIL 25, 2023 Page 64
..
Description Priority•. • ••
and future
77ordinances
Funding Strategies
5.1
Adjust the multifamily
High
Planning
0-6
$
MFTE ordinances
tax exemption
Services (with
months
program
City Treasurer
and City
Council)
5.2
Development fee
Low
Planning
0-6
$
Fee schedule
adjustments
Services
months
updates
5.3
Local bank funding
Low
City Council
Ongoing
$
Partnerships
(with Planning
Services)
5.4
Tax increment
Medium
Planning
6-12
$
Further study and
financing
Services (with
months
future ordinance
City Treasurer)
5.5
Funding for ADU
Medium
Planning
6-12
$$
City Budget
development
Services (with
months
City Treasurer)
5.6
State advocacy
Low
City Council
Ongoing
$
Legislative agenda
and engagement with
American Planning
Association WA and
Association of
Washington Cities
Figure 14 - Implementation matrix
6.1 — High Priority Implementation
Given the limited resources of government, it is important to set priorities. The following items
are high priority for implementation within the next 12 months.
• Adjust the multifamily tax exemption (MFTE) program
• Comprehensive Plan Land Use and Housing element updates
• Development regulation updates
6.2 — Monitoring
The only way to know if housing actions are successful is to measure and report on outcomes.
By developing a monitoring program, Port Orchard can track progress toward achieving housing
goals and identify where more work or changes are needed. Interviews with housing developers
one year after HAP adoption (or at other regular intervals) can also be helpful to get feedback
on what HAP actions are working well and where there may still be barriers.
Port Orchard Housing Action Plan — June 2023 1 DRAFT — APRIL 25, 2023 Page 65
Monitoring will be a key role of the new Housing Coordinator staff position. Even so, integrating
monitoring into existing work and activities could help preserve limited staff time. Monitoring
the HAP implementation could be merged into:
• DCD's annual or monthly reports to the City Council
• Monitoring of population growth and development permits
• Comprehensive plan monitoring
• Buildable lands reports
Potential performance metrics based on the HAP Existing Conditions and Housing Needs
Analysis Report are listed below.
Objective
Performance Metric
Target
Greater housing diversity
Number of duplex, triplex, fourplex, ADUs,
10-20% of new housing units are in
with a greater variety of
and small apartment units permitted
projects with 2-20 units
housing types accessible
Number of mixed -use and urban style
One development every two years
to a greater variety of
apartment with structured parking
incomes, for both rental
permitted
and homeownership
opportunities
Slow down and stabilize
Home price increases
Annual median home price increases
the rise in housing prices
are lower than regional, state, or
national increases
Rental price increases
Annual median rental price increases
are lower than regional, state, or
national increases
Vacancy rate
Rental unit vacancy rates reach 6-8%
Refine regulatory
Overall housing production
Average annual production rate within
standards to reduce
± 20% of that needed to meet the
barriers to housing
Comprehensive Plan 20-year target
development
Housing diversity
10-20% of new housing units are in
projects with 2-20 units
Adopt new financial tools
Affordable housing production for cost-
Average annual production rate within
to support and promote
burdened low-income households (80%
± 20% of that needed to meet the
development of affordable
AMI and below)
Comprehensive Plan income -based 20-
housing
year targets
MFTE program participation
25-50 new affordable units per year
added from MFTE projects
Figure 15 - Monitoring matrix
DRAFT - APRIL 25, 2023
Appendix A
Downtown Height Limit Considerations
There is a long history of protecting views in the Downtown area. However, Downtown is also
one of the most favorable locations for affordable mixed -use and infill housing due to its transit
connections and walkability. This creates a conflict between the objectives of view protection
and Comprehensive Plan goals for expanded housing affordability and choice.
The compromise currently in place is the Downtown Height Overlay District (DHOD), which
provides greater height limits than the underlying Downtown zoning (Downtown Mixed Use and
Gateway Mixed Use). The DHOD is divided into three sub -zones, and there were slightly
modified with adoption of the 2021 Downtown Subarea Plan.74
Downtown Mixed Use (DMU)
38 feet, three stories
Gateway Mixed Use (GMU)
38 feet, three stories
Downtown Height Overlay District (DHOD)
DHOD 3: 48 feet, three stories
DHOD 4: 58 feet, four stories
DHOD 5: 68 feet, five stories
Figure 76 - Height limits in Downtown
While Downtown would also be an ideal location for affordable (subsidized) housing under the
MFTE program, no height limit changes or bonus incentive is proposed in Downtown zones to
avoid conflict with the existing 10-feet bonus height available for a mixed -used development
which includes a grocery store (POMC 20.38.640). Locating a grocery in Downtown has also
been a longstanding objective; however, it is only likely to occur when the market demand for
such a store is stimulated by a larger Downtown resident population, which can be enabled
through more housing development. Further, the benefits of a height bonus would accrue to the
developer, not the grocery tenant, which creates development risk of a grocer expecting a rent
subsidy and the City not allowing any other tenants if the original grocer leaves. In any case, a
grocery tenant is not likely to locate in Downtown until there is a strong enough market. These
are additional tradeoffs to consider.
The View Protection Overlay District (VPOD), which covers several blocks uphill from Bay Street,
has current height limits of 15 and 27 feet. Uniquely, in the VPOD these height limits are
measured from the uphill property line, so these relatively low limits could still allow relatively
large multi -story buildings that are built into the hillside. Further modifications to the VPOD
could consider that private view easements are an alternative mechanism for property owners
to preserve views.
74 Downtown Subarea Plan, City of Port Orchard. https://portorchardwa.goy/downtown-subarea-plan/
DRAFT - APRIL 25, 2023
Appendix 6
Existing Conditions Report & Housing Needs
Analysis
DRAFT - APRIL 25, 2023
Appendix C
Public Engagement Report
CITY OF PORT ORCHARD
DEPARTMENT OF COMMUNITY DEVELOPMENT
216 Prospect Street, Port Orchard, WA 98366
Ph.: (36o) 874-5533 • FAX: (36o) 876-4980
PLANNING COMMISSION STAFF REPORT
Agenda Item No: 5(c) Meeting Date: May 2, 2023
Planning Commission Rules +
Subject: Regulations (POMC 2.20) Prepared by: Nick Bond, Development Director
Summary: City Staff is considering revising Port Orchard Municipal Code (POMC) 2.20 for clearer guidance and
regulations for the Planning Commission. City Staff shared examples of other jurisdictions code regarding
Planning Commission regulations (Poulsbo, Gig Harbor, Bremerton, and Bainbridge Island) to the Planning
Commissioners as well as the existing POMC 2.20 Planning Commission, which provides regulations for the
Commission currently. Staff gathered feedback on how the Planning Commission would like to proceed with the
code amendment and drafted the attached redlines in response.
Staff proposes to amend POMC 2.20 as described in the attached redline version of POMC 2.20 to provide
guidance to the Planning Commission in carrying out their duties. The current language in the code is presented
for the Planning Commission's review. The Planning Commission is requested to hold a public hearing at the
June 6, 2023, Planning Commission meeting.
Recommendation: The Planning Commission should review the proposed revisions to POMC 2.20 prior to
scheduling a public hearing. Staff recommends that a public hearing be scheduled for June 6, 2023, on the
proposed amendment.
Attachments: Port Orchard Municipal Code (POMC) 2.20 Planning Commission Redline
Chapter 2.20
PLANNING COMMISSION
Sections:
2.20.010 Planning CEommission created.
2.20.020 Planning CEommission positions, terms, and term ending dates.
2.20.025 Conduct of meetings.
2.20.030 Powers and duties.
2.20.035
Attendance.
2.20.040
Recommendations to City Ceouncil.
2.20.050
Repealed.
2.20.060
Meetings of Planning Ccommission - Records.
2.20.065
Recordkeeping.
2.20.070
Quorum.
2.20.080
Annual report to City Ccouncil.
2.20.010 Planning CEommission created.
Pursuant to Chapter 35.63 RCW, there is created a city planning commission, which shall consist of
seven members appointed by the Mmayor and confirmed by the Ccity Ccouncil; six shall be residents of
the Ccity and one may be a nonresident of the Ccity except the Mmayor and Ccity Ccouncil may, by
council resolution, temporarily extend the term of a Planning Ccommissioner who, during their his e�
#ef-term, moves out of the Ccity, 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 Ccommissioner terms shall be four years in length. There shall be seven Pplanning
Ccommissioner 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 Pplanning
CEommission 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 M+*�ayor for t4ea 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 they have he ^" -"^ has been
appointed. -(Ord. 036-20 § 2).
2.20.025 Conduct of meetings.
Planning Commission meetings will be held consistent with the Open Public Meetings Act, Chapter 42.30
RCW and the Public Records Act, Chapter 42.56 RCW.
The rules contained in the current edition of Robert's Rules of Order Newly Revised shall govern the
Planning Commission in all cases to which they are applicable and in which they are not inconsistent
with any special rules of order the Planning Commission may adopt.
Planning Commission meetings must have a physical location for the public to attend, however,
members of the Planning Commission may attend the meeting remotely. The means of remote access
shall allow real-time verbal communication.
A Planning Commission quorum shall be required for passage of any matter before the Planning
Commission.
The minutes of the meeting shall reflect the ayes and nays cast on a particular measure as well as the
vote of each member present.
Whenever a tie vote occurs, such a vote shall be considered no decision concluded. In such a case, the
Chairperson shall call for a new motion, or hearing no new motion and determining the case under
consideration cannot be resolved during the current meeting, shall announce and direct the case to be
carried over to the next Planning Commission agenda, at which time it shall be scheduled for further
consideration; or, the Chairperson may forward the request to the City Council with no recommendation
accompanied by the minutes of the reauest.
2.20.030 Powers and duties.
The Pplanning Ccommission 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).
2.20.035 Attendance.
Planning Commissioners shall attend Planning Commission meetings in the ahvsical location where the
meeting is held. Planning Commissioners may attend meetings remotely if necessary.
2.20.040 Recommendations to City council.
The Ceity Ccouncil may refer to the Pplanning Ccommission 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 Planning Ccommission shall promptly report to the City Ccouncil 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 Planning Ccommission — Records.
The Planning Ccommission shall elect its own Cchair ep rson and create and fill such other offices as
it may determine it requires. In general, the Planning Ccommission shall hold a regular meeting once per
month; however, during any month, the Cc -hair of the Planning Ccommission or the Ccity's Department
of Community Development may determine that there are no review items requiring
the Pplanning Ccommission to hold a regular meeting and conduct business during that month; or, that
there are review items requiring the Pplanning Ccommission 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 adept .,,l^s ^f tlral.Sae+;^., ^f "„so.^6s -,ld- s;","
keep a written reGeFd ef its meetings, reselutiens, transactiens, findings and determinatiens, whieh
ee.rd `hall be Of PUbIiG FeGeFd(Ord. 036-20 § 2; Ord. 521 § 5, 1946. Formerly 2.20.050).
2.20.065 Recordkeeping.
The Citv shall Drovide a recordiniz of all Plannine Commission meetings by electronic means. The Cit
shall furnish a copy of a recording of any meeting upon written request of any interested party. The
Party requesting the copy of the recording must bear the costs of producing a copy of the recording. The
Planning Commission will also keep a written record of its meetings, resolutions, transactions, findings,
and conclusions. That record shall be a public record.
2.20.070 Quorum.
A simple majority of the Pplanning Ccommission shall constitute a quorum for the
transaction of business. Any action taken by a majority of those present at any regular meeting of the
Pplanning Ccommission shall be deemed and taken as the action of the Planning Ccommission.
Planning Commissioners attending meetings remotely will count in the quorum.
In the case of a meeting being interrupted by the loss of a quorum during the taking of public comments
or testimony, the Planning Commission may continue to accept and record all the public comments that
are offered but may not take any action on that agenda item, nor may continue to another agenda item,
other than to adjourn.
When a quorum does not exist at a regularly scheduled or special meeting, a member of the Planning
Commission may announce to all present that any public hearings are continued to a time, date, and
location certain, thereby avoiding the need to re -advertise such public hearings (Ord. 036-20 § 2; Ord.
704 § 1, 1962; Ord. 521 § 6, 1946).
2.20.080 Annual report to City council.
The Pplanning Ccommission, at or before its first regular meeting in February of each year, shall make a
full report in writing to the Ceity Ccouncil 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).