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03 - 20241113 Chapter 3 - HousingChapter 3: Housing Chapter 3. Housing 3.1 Introduction The intent of the Housing element is to establish coordinated and comprehensive policies that will help guide decisions on housing issues within and around Port Orchard. Provisions that ensure suitable housing opportunities for all socioeconomic levels are a primary consideration in enhancing the quality of life found in Port Orchard. Information in the Housing Element is supplemented by the June 2023 Housing Action Plan, which identified current housing trends and developed actionable Housing Vision Enable housing opportunities for all socioeconomic levels that accommodates population growth while balancing new and existing neighborhood characteristics. strategies through an equity lens to support and encourage housing production that meet local community housing needs. The Housing Element also works in conjunction w i t h the overarching goals of the entire Comprehensive Plan, as well as the housing goals of Washington's Growth Management Act (GMA). As Port Orchard grows, it will be important to provide a variety of housing types to suit the needs and preferences of the expanding population. Addressing housing from various perspectives, such as promoting homeownership and creating more diverse housing opportunities, will be necessary to meet the housing needs of all of Port Orchard's residents now and into the future. Through the adopted goals and policies under the Housing Element, the City will pursue opportunities to: • Preserve and improve existing housing stock • Expand overall housing supply • Encourage housing that is affordable to all income levels • Establish mechanism to reduce displacement due to development • Promote thriving, healthy neighborhoods Port Orchard Comprehensive Plan DRAFT: November 2024 Chapter 3: Housing 3.2 Conditions and Trends 3.2.1 Housing Stock Housing Type. As of 2021, there were 6,165 housing units in the City, per 2020 census data. Port Orchard's housing stock is predominantly single -unit buildings (70%), nearly all of which are single-family detached homes and a small number of attached townhomes. Larger apartment building with 5+units make up the next largest category (22%). There are relatively few "middle housing" 2-4 units and manufactured homes. The breakdown of housing unit type is shown in Figure 1. 3-4uniu 4% i Housing Age and Production. Port Orchard's 2-Unit housing stock is considerably younger than regional y% averages. Over half of the housing stock was built FM:� nit after 1990, and two-thirds was built after 1980. This is reflective of Port Orchard's high rate of housing production and permitting in recent decades. Figure 2 shows an uptick in permitting starting in the early Source: 2020 American Community Survey 5-Year 2000s and the prevalence of single-family and larger Estimates, Table DP04. apartment developments. Note that this data shows Figure 1— Housing unit Type in Port orchard issued permits, not all these projects were and will be necessarily completed. Most of the single-family development seen in the past five years has been in McCormick Woods subdivision, which was annexed by the City in 2009, and the Bethel-Sedgwick area. Recent forthcoming projects of multifamily developments have been spread out throughout Port Orchard. According to the City's permit data, over 5,000 units are currently in the pipeline which shows some increase in housing diversity with future developments of fourplex, townhomes, accessory dwelling units, and mixed uses. (See Figure 3). The high rate of housing production will almost double the Port Orchard' housing inventory within the next several years. Port Orchard Comprehensive Plan DRAFT: November 2024 Chapter 3: Housing 600 ■ 5+ Unit Mtaltifamily 500 ■Triplex 1 4-Plea 400 ■ Duplex Q. Single -Family ,., 300 2W E z 3D0 0 — 1982 1984 1986 1986 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 Source: U.S Department of Housing and Urban Development (HUD) State of the Cities Data Systems (SOCDS) Figure 2 — Permits Issued in Port Orchard by Unit Type, 1982-2022 3, 000 ■Mixed useuevelopnient 2,500 ■ 5+ Unit Apartn^ent 2,000 ■ 4-PlE�x 1, 500 E ■ Toumhcwse F= 1,000 ■ dpsrPlprxnent inClu-ding �3ngl?.- family h&,nes and toamho.nes Single Family 0 2022 2023 2024 Pt. mitlirig IY1it,3t 1. Tmeline Uncertain Source: City of Port Orchard. Figure 3 — Number of Units Permitted with Certificates of Occupancy Expected 2022 and Later by Unit Type Port Orchard Comprehensive Plan DRAFT: November 2024 Chapter 3: Housing Middle housing provides solutions to expand housing choices and opportunities for households at all income levels and stages of life. As seen in Figure 3, developments of middle housing types, including fourplexes and townhomes, are gaining traction, likely due to the increasing need of more attainable housing choices. Supporting the development of middle housing can help expand the overall housing supply, potentially alleviating price pressures across the housing market. Additionally, it can create more homeownership opportunities, as these housing types are generally more affordable than single-family homes due to lower per -unit construction and land costs. Middle housing can also gently increase residential density in existing residential and mixed -use neighborhoods, easing pressures for additional infrastructure or further sprawl and foster more walkable neighborhoods as more residents can live nearjob centers and transit hubs and support retail corridors. What is Middle Housing? "Middle housing" includes duplexes, townhouses, cottages, courtyard apartments, and other building types that fall between single-family detached houses and apartments. Middle housing units tend to be more affordable to build than single-family houses and offers greater varieties of layout and sizes that are suited for a wider range of households. Expanding the areas where middle housing is allowed offer greater opportunities for "starter homes", or homeownership, to the new generation. ADUs Duplexes/ Triplexes Fourplexes Cottage Clusters AV - Townhouses Courtyard apartments Small apartments (5-10 units) r- Source: Makers, 2023 Tenure. The majority of Port Orchard residents are homeowners (61%), while 39 percent are renters. This closely mirrors the statewide averages for renter households (36%), but it is notably higher than the county average (30%), largely due to the number of apartments in Port Orchard compared to the other parts of the county. Renters often face greater housing instability, including risks of eviction and rent increases, challenges that homeowners are less likely to encounter. Moreover, renters are more likely to be Black, Indigenous, and Other People of Color (BIPOC), as well as lower -income households, compounding these housing -related challenges. See 3.3 Housing Affordability and Figure 11, Share of Household Tenure by Race/Ethnicity. Port Orchard Comprehensive Plan DRAFT: November 2024 Chapter 3: Housing Figure 4 below shows that renters in Port Orchard tend to earn less than homeowners. In 2021, the median household income for renter households was $47,785, compared to $101,318 for ownership households. Additionally, renters have experienced slower income growth than homeowners. Between 2010 and 2021, renter incomes increase by 28 percent whereas ownership households grew by 58 percent increase. These disparities in both income and growth rate raise concerns about the ability of renters to transition into homeownership, particularly as wealthier households may outbid them for available housing. $75,766 $50,275 $64,068 $101,318 ■ 2010 r 2021 $47,785 $37,351 pr All Households Ownership Households Renter Households Source: American Community Survey 2021 5-Year estimates, Table S2503 Figure 4 — Median Household Income by Tenure in Port Orchard, 2010-2021 Vacancy Rates. During the mid-2010s, vacancy rates for both renters and homeowners decreased but have recently rebounded due to the increase in housing demand and prices. The overall vacancy rate is currently around 8.5 percent as of April 2024. Port Orchard Comprehensive Plan DRAFT: November 2024 Chapter 3: Housing 3.2.2 Demographics Port Orchard is a rapidly growing city, currently home to 18,300 residents as of April 1, 2024. Since the last Comprehensive Plan Update in 2016, Port Orchard has grown on average 3.1 percent annually. Over the 20-year planning horizon for this 2024 Comprehensive Plan Update, the City is required to plan for 10,500 additional population by 2044 based on Countywide Planning Policies and population allocations. The historical growth rate and population allocation suggests a sustained demand for housing in Port Orchard in the coming years. Refer to the Land Use Element Section 2.5.1 for additional population growth and population allocation information. 20.0C-'_ 6 , RopUlatlon —A"rage Annual Growth Rate M N 15r00[l 4 0 a 0 5row 0 05 1960 1970 1990 19 5C 2000 2010 2020 7023 Source: Washington Office of Financial Management, U.S Census Bureau, LCG Figure 5 — Port Orchard Population and Growth Rate, 1960 — 2020 Port Orchard's population is notably younger. During the 2010-2021 period, over half the residents were under 34 years old, typically working and family - building ages, resulting in a corresponding increase in children under 19. Port Orchard also has a smaller share of residents of adults 65 and over. Figure 5 shows the racial and ethnic makeup of Port Orchard residents. About two-thirds of Port Orchard's residents are white and has a relatively large share of Hispanic/Latino and Asian populations. Port Orchard is more diverse than Kitsap County, where 25 percent of the population identifies as persons of color compared to 30 percent in Port Orchard. According to 2021 ACS, about IS percent of Port Orchard residents, or 351 residents, speak Spanish at home. Ty;u ilr Murc dative Hawaiian Races ! PLKik I y arwjLr R9; Ilislltu k / Loth �0 Amerirar { Alaska ,9� Black/A Amerit Source: American Community Survey 2021, 5-year Estimate, Table DP02 Figure 6 — Race & Ethnicity in Port Orchard, 2021 Port Orchard Comprehensive Plan DRAFT: November 2024 Chapter 3: Housing 3.2.3 Households Overall, Port Orchard's average household size (2.56) is similar to county (2.53) and statewide averages (2.55). Port Orchard has a high share of households of married or cohabitating couples with no children (34%) and those with children (29%). Older Adults Living Alone 9% Single Adult(s) 20% Single parents 8% Couple, No children 34% ple, with hildren 29% Source: Washington Office of Financial Management, U.S Census Bureau, LCG Figure 7 — Port Orchard Population and Growth Rate, 1960 — 2020 Figure 8 shows the current mismatch between the need and availability of housing units for smaller household size. Approximately 57 percent of households are made up of one or two people, whereas only 35 percent of housing units are studio, one- or two -bedroom units. Although smaller households may choose to live in larger units, the mismatch can lead to housing affordability issues if smaller households are not able to find units suitable to their needs and budget. 4+ peFr housel {IX �-persor ;usehol. 17% Household Size rson !hold 35% Housing Unit Size 4- Studio } 1 I;t hod ronrn hedr( 42 Source: American Community Survey 2021 5-Year Estimates, Tables DP04, S2501 Figure 8 — Household Size and Housing Unit Size in Port Orchard, 2021 Port Orchard Comprehensive Plan DRAFT: November 2024 MS Chapter 3: Housing Port Orchard's younger population and shifting household dynamics signal the growing demand for smaller, more affordable housing options. As younger residents age and form families, the future demand for larger housing units is also likely to grow. To meet these evolving needs, encouraging alternative housing solutions, such as accessory dwelling units (ADUs) and middle housing, create a flexible and adaptable housing market. These options offer a range of benefits, from accommodating multigenerational households to supporting older adults who wish to age in place and maintain their independence. By diversifying housing choices, Port Orchard can better respond to its residents' changing needs over time, ensuring long-term stability and inclusivity within the community. Universal Design and Aging in Place. Housing opportunities are maximized if housing design and choices accommodate the change people experience over their lives due to aging or life circumstances. Universal design principles ensure that all members of the community, regardless of age, size, or ability, can enjoy and use the built environment. Thus, promoting housing options, services, programs that support independence and choice for people to stay in their neighborhood helps to create a more livable community. 3.3 Housing Affordability Lack of affordable housing has ranked as a very high community concern. The Port Orchard Housing Action Plan (HAP) engaged with housing stakeholders and the general public, who conveyed there is a lack of housing options in Port Orchard, even with recent regulatory changes by the City. Low -to - moderate income workers and fixed -income retirees report struggling to afford housing in Port Orchard, and long-time residents are seeing their adult children unable to afford buying a home in Port Orchard. There is concern that essential service and retail workers are leaving the community, limiting the social and economic diversity of Port Orchard, and thus creating challenging conditions for local businesses. In a survey, a little over 60 percent of renters and almost 50 percent of homeowners reported being at risk of losing their home from a major unexpected financial event (such as an illness or job loss). Furthermore, housing providers report that cost inputs for new housing are going in the wrong direction amid rising prices for materials, labor, and land. Despite these great challenges, there may be some regulatory opportunities to improve the cost efficiency of construction plus opportunities to create partnerships with affordable housing providers. Regulatory tweaks to the code and design standards, promoting multifamily tax exemption (MFTE) program, and friendlier development processes for housing providers are among the solutions stakeholders feel could help better achieve Port Orchard's housing goals. Port Orchard Comprehensive Plan DRAFT: November 2024 Chapter 3: Housing 3.3.1 Housing Tools, Incentives, and Barriers In this section, "affordable housing" means housing reserved for people earning below a certain income and who cannot afford market -rate costs (other interrelated terms include low-income housing, subsidized housing, public housing, or rent -restricted housing). The main affordable housing provider in Port Orchard is Housing Kitsap, a government agency that provides housing assistance for families who need affordable alternatives to the private market. Housing Kitsap operates countywide. The City of Port Orchard does not currently have any funding streams directly funding affordable housing development or preservation. Port Orchard previously administered a multifamily tax exemption program (adopted in 2016), under which 20 affordable housing units were developed by private developers prior to the program's repeal in 2023. Port Orchard does not have development regulation incentives for affordable housing. The Housing Action Plan Existing Conditions Report identifies a number of regulatory and financial barriers, including complex code organization, tree protection standards, high impact fees relative to Kitsap County, and land use and form standards that make some types of housing difficult to develop. 3.3.4-2 Housing Prices Rising Faster than Income In recent years, rising housing and rental costs and stagnating income has strained all households across the state, including Port Orchard. Since 1989 (the earliest Kitsap County data is available from the Federal Reserve of St. Louis), housing prices in Kitsap County have increased faster than incomes. From 1989 to 2022, median housing prices have approximately tripled while median incomes have only doubled. The price of goods and services has also more than doubled; in 1989 an item that could be purchased for $10 is now $23.22, per the Bureau of Labor Statistics inflation calculator. Household Income and Housing Price in Kitsap County, 1989-2022 (Indexed to 2000) 3.50 Median Household Income {2024 $) 3.00 Housing Price Index rn a N m�` 0 r- co M a N m� n 0 r­ co M a r N m�� 2 �2 r• c2 rn a N co M rn M M M M M M M a a a a a a a a a r r N cv N rn rn M rn rn M rn rn rn rn rn a a a a a a a a a a a a a a a a a a a a a a a r r r r r r r r r r r CV N N N ", N N N N N CV CV CV CV N CV CV N CV CV N CV N Port Orchard Comprehensive Plan DRAFT: November 2024 Chapter 3: Housing Source: Federal Reserve of St Louis (FRED) database on Household Income and Housing Price Figure 9 — Household Incoming and Housing Price in Kitsap County, 1989-2022 (Indexed to 2000) Despite the wide range of incomes and housing prices in Kitsap County, the overall trend reveals that many workers have not seen their incomes increase at a pace necessary to afford a typical home. The current relationship between housing prices and income has become strained, as housing has become more difficult to afford for the average Port Orchard resident. Households earning the median income may not be able to afford, or have difficulty, in purchasing a median -priced home. Many renters find it challenging to transition into homeownership. The gap between home prices and household earnings highlights a housing market with high demand and limited affordable options, placing additional pressure on both current residents and those seeking to buy a home in Port Orchard. (See Figure 10). t930 ■Household Income [51:U40s1 $Hi7D ■ House Price 31.OXs} S700 $600 Median Sales Price ($468) 5 5 $400 A household edming $100.000 could nut aflordthe median Port Orchard Sales price Uf W6,000 even though they are earning neaFfy $30,000 more than ,he median household Income. $3UA $300 Median Household:,) $200 Income ($75) S100;' 525 $- $100 $607 �2D) Source: American Community Survey 2021 5-Year Estimates, Table S2503, Zillow, Freddie Mac, LCG Figure 10— Housing Affordability at Various Price and Income Levels in Port Orchard, 2021 While all households are affected, communities of color and lower -income households are disproportionately impacted. These groups tend to face greater housing instability as they spend a higher percentage of their income on housing and have lower homeownership rates. The majority of ownership households in Port Orchard are White and Asian, and lower among Native Hawaiian and Pacific Islanders, Hispanic and Latino, and other races and ethnicities. (See Figure 11). This underscores the need for policies that promote housing stability and accessibility, particularly for the most vulnerable populations who face heightened risks of housing insecurity. Port Orchard Comprehensive Plan DRAFT: November 2024 Chapter 3: Housing ALL HOUSEHOLDS WHITE. NON -HISPANIC OR LATINO l 49% 51% BLACK 57% 43% HISPANIC AND • 58% 42% • • • ' MORE RACE 37% NATIVE HAWAIIAN / PACIFIC ISLANDER ■ Rent ■ Own Source: AC2 2020 5-year Estimates, Table 825003 Figure 11—Share of Household Tenure by Race/Ethnicity 3.3.3 Racially Disparate Impacts The Housine Element includes a Raciallv Disaarate Imaacts Analvsis. as reauired by RCW 36.70A.070(2)(e and (f). Taking a proactive approach in shaping policy can help reduce historical patterns of segregation, displacement, and inequitable outcomes. As part of the 2024 periodic update, Housing Element goals and policies were evaluated and updated to reduce racially disparate impacts. Key findings from the analysis are: • Port Orchard is more diverse than Kitsap County. • Households of color, particularly Black/African American and Hispanic/Latino households, are more likely to be cost -burdened than white households. In addition, renting is more common among non -white households and the cost burden for renter households is significantly higher than for owner households. Black/African American households are significantly more likely to rent than own their home. • There is a shortage of housing available for those making less than 30 percent of the Area Median Income (AMI) and those making more than 80 percent AMI. • Half of Black/African American households and nearly three quarters of Pacific Islander households in Port Orchard are classified as extremely low-income, making less than 30 percent of AMI. Just three percent of Black/African American households earn more than 100 percent AMI. • Most of Port Orchard is considered low risk for displacement by the Puget Sound Regional Council, but Downtown and the Bethel and Sidney corridors have a moderate risk of displacement from new housing development or redevelopment. Downtown and the Sydney Ave. corridor area also have a higher share of BIPOC households. Refer to the Racially Disparate Impacts Analysis in Appendix J for more information. Port Orchard Comprehensive Plan DRAFT: November 2024 Chapter 3: Housing 3.3.2-4 Cost -Burdened Households The U. S Department of Housing and Urban Development (HUD) uses a measurement of "cost burden" to describe a subset of community's residents spending more that 30 percent of their income for housing. "Severely cost - burdened" households spend more than 50% of their monthly income on housing costs. These households pay a very large share of their income on housing costs which Area median income (AMI) is another data point often used by local government to set income limits for subsidized affordable housing. It is the household income for the median/'middle' household in a given region. impacts their ability to afford other life essentials like healthcare, childcare, and transportation. In other words, cost -burdened households are most at risk of displacement or housing hardship and in need of housing support. Figure 12 below shows the most recent HUD data on Port Orchard cost -burdened households by income based on percentage of HUD Area Median Income (AMI), which was $85,500 in 2019. In total, 1,670 low- and moderate -income households, or 32 percent of Port Orchard's households, are facing cost burdens, demonstrating the need for more subsidized affordable housing in Port Orchard, which is typically the only type of housing that can meet these deep affordability levels. Housing Action Plan stakeholders noted that over 1,000 people are on the waiting list for housing vouchers at the Kitsap Housing Authority, which manages vouchers in both Bremerton and Port Orchard. ■ Severely Cost Bu,doncv Cost Burdened Not Cost Burdened .:., e,,.r-� I 8 0 3v-50w6 Afv1 ■ rJ AM 100 200 3D0 4DO 5DQ 60D 7DQ 80D 900 1D00 Number of Households Source: 2015-2019 HUD Comprehensive Housing Affordability Strategy (CHAS) Figure 12 — Cost -Burdened Low -Income Households by Income Bracket in Port Orchard, 2019 3.3.3-5 Special Needs Housing The special needs populations typically encompass individuals who require support in their daily lives due to disabilities, health conditions, age, or other specific circumstances. These individuals may require specific housing accommodations or assistance. Social service programs, institutional settings, and assisted living facilities all cater to a portion of these needs. Currently, there are various supportive and group housing options for people with mental or physical disabilities, as well as a significant number of senior housing and assisted living facilities in Port Orchard. Port Orchard will continue to support the development of housing for people with specials needs through partnership with the County, service providers, and housing developers. Port Orchard Comprehensive Plan DRAFT: November 2024 Chapter 3: Housing 3.4 Housing Projection Port Orchard is designated as a High -Capacity Transit Community in Vision 2050 (PSRC March 2021). Using the Vision 2050 framework, the Kitsap Regional Coordinating Committee's (KRCC) adopted Countywide Planning Policies setting a regional framework for its cities to accommodate growth while providing a share of the region's housing. The projected population growth for Port Orchard during the 2020-2044 planning period is 10,500 people, resulting in a population of 26,087 by 2044. According to the Kitsap County Buildable Lands Report, the average household size in Port Orchard is 2.64 people. This means that Port Orchard will need an additional 4,943 housing units by 2044. In other terms, Port Orchard needs to build an average of 198 new housing units per year to support projected growth. Figure 13 shows the number of new housing units needed for each income level. The largest housing needs by income in Port orchard is for very low-income households, with 30 percent of AMI or less, and for low-income households, between 30 and 50 percent of AMI. >120% AMI 100-120% AMI 80-100% AMI 50-80% AMI 30-50% AMI 0-30% AMI, non-PSH 0-30% AMI, PSH Emergency Temporary Housing 717 16S76 -� 1,246 AL 507 288 0 414 11 209 540 Iff Totals Current Supply: 8,610 Housing Units* New Supply Needed: 3,704 Housing Units -500 500 1,500 2,500 Baseline Supply (2020) Built 2020-2024 ■ Remaining New Supply Needed (2024-2044) *Note: The total current supply includes units constructed in 2020 and pending developments (2020-2024) PSH = Permanent Supportive Housing: A low-income housing mode where social, medical, and job service are provided on -site to help transition people out of homelessness. Emergency housing: Temporary accommodation for individuals or families who are homeless or at imminent risk of becoming homeless. Source: Kitsap Countywide Planning Policies, Housing Allocation Through 2044, 2024 Figure 13 — Port Orchard Housing Supply and Need by Income Port Orchard Comprehensive Plan DRAFT: November 2024 Chapter 3: Housing 3.5 Housing Capacity by Income Band HB 1220, passed in 2021, amended the GMA to require additional housing unit capacity analysis by what income bands can be served by future housing units. Port Orchard's targets (based on 2020 data) and units built and permitted (since 2020) are shown in Figure 13. A Land Capacity Analysis was conducted as part of this comprehensive planning process to evaluate Port Orchard's ability to meet these targets within current zoning in the City. This analysis considered vacant, redevelopable, and partially -used parcels as classified in the City's 2019 Buildable Lands Analysis and updated based on development since 2019. Critical area acreage and deductions for future infrastructure needs and market factors were then removed from the gross vacant, redevelopable, and partially -used acreage. The net remaining acreage was analyzed by zone based on potential future density of development in each zone, as outlined in Port Orchard's zoning code, and accounting for recent development densities in the city. The results of this analysis were then aggregated by zone category based on the Department of Commerce methodology outlined in the 2023 guidebook "Guidance for Updating Your Housing Element." Following this framework, capacity for low-income households earning 0-80% AMI (HUD Area Median Income) is provided in zones allowing for apartments and multifamily housing types. Capacity for middle - income households earning 80-120% AMI is provided through townhomes, duplexes, triplexes, and higher -end apartments. Capacity for high -income households earning 120% AMI and above is provided through zones allowing detached single-family homes. In addition, pending units were assigned to various income bands based on the income levels needed to afford those units based on current rental and home price data in Port Orchard. The results of this land capacity analysis show that Port Orchard has sufficient capacity to meet projected housing needs of low-, moderate-, and high -income households. The table below shows the City's housing needs, pending units, and land capacity for 0-80% AMI, 80-120% AMI, and 120% + AMI households through 2044. A full discussion of methodology and results of this analysis can be found in [Appendix XX Port Orchard Land Capacity Analysis]. Income Band Housing Need Aggregated Housing Needs Pending Units Remaining Needs Total Capacity Surplus/ Deficit 0-307o AMI P5H 414 2,848 967 1,881 1,920 39 0-307o AMI Non P5H 944 30-507o AMI 810 50-807o AMI 680 80-100To AM 1 351 696 1,148 -452 2,302 2,754 100-1207o AM 345 1207o AMI + 1,399 1,399 2,308 -909 211 1,120 Total 4,943 4,943 4,423 520 4,433 3,913 Source: WA Department of Commerce, Kitsap County, City of Port Orchard, Leland Consulting Group Figure 14 — Port Orchard Land Capacity Analysis Port Orchard Comprehensive Plan DRAFT: November 2024 Chapter 3: Housing 3.3 Goals and Policies The ability of the region to provide various housing opportunities for residents in and around Port Orchard is very important. Limited housing opportunities adversely impact housing choice, economic development, neighborhood/community image and pride. Creating policy language that champions housing availability and affordability across all income levels serves to foster these concepts. This section seeks to establish basic policy principles related to housing availability and affordability. Port Orchard strives to: Goal 1. Housing stock is planned to accommodate growth targets, housing demands, and changes in the population. Policy HS-1 Ensure zoned capacity is sufficient to accommodate housing development to meet needs consistent with adopted targets. (see Figure 13 Port Orchard Housing Supply and Need by Income). Policy HS-2 Encourage production of diverse housing types throughout the City to expand housing choice and access for residents in all stages of life and all household sizes to meet the goals set under RCW 36.70A.020(4). These housing types include but are not limited to detached single-family homes, middle housing forms, multifamily dwelling units (within both single -purpose and mixed -use buildings), live -work dwelling units, accessory dwelling units, pre -fabricated homes, and clustered housing forms. Policy HS-3 Periodically evaluate City development standards and regulations to ensure it reflects market trends and, where appropriate, modify development regulations that unnecessarily add to housing costs and minimize the feasibility of building affordable housing. Periodically assess the amount of housing produced under these standards. Goal 2. Ensure that affordable housing options are available to all socioeconomic levels of Port Orchard residents. Policy HS-4 Provide opportunities through future land use and zoning districts for an economically diversified housing supply, including extremely low, very low-, low-, moderate-, and upper -income levels, to maximize housing options and serve a broad range of community needs. (RCW 36.70a.070(2) (d)). Policy HS-5 Support the development of housing and related services that are provided by regional housing programs and agencies for special needs populations, especially the homeless, children, the elderly, and people with mental or physical disabilities. Policy HS-6 Coordinate with other public entities, nonprofits, and religious organizations to preserve and facilitate development of permanent supportive housing, emergency shelters, and emergency housing. (RCW 36.70a.070(2) (c)) Port Orchard Comprehensive Plan DRAFT: November 2024 Chapter 3: Housing Policy HS-7 Evaluate surplus public land for affordable housing. Identify opportunities to lease or sell public land to affordable housing providers. (RCW 39.33.015(1)). Policy HS-8 Allow an increased density bonus for affordable housing located on property owned by a religious organization. (RCW 36.70A.545 and RCW 35A.63.300). Policy HS-9 Ensure that City fees and permitting time are balanced between housing affordability considerations and the need for supporting City services. Policy HS-10 Provide incentives and work in partnership with not -for profit and for -profit developers land trusts, and public housing authorities, such as Housing Kitsap, to develop and preserve long-term affordable housing options. Policy HS-11 Encourage development of housing that is affordable for workers at all income levels that is located near transit, education and training opportunities and other employment centers. Policy HS-12 Promote development of attached and detached ADUs in all residential to provide additional housing choices for all economic income levels, multi -generational households, and smaller households in residential neighborhoods. (RCW 36.70A.680). Policy HS-13 Expand capacity for middle housing in low -density residential neighborhoods that are unencumbered by critical areas or their buffers throughout the city to increase home ownership and rental housing options. (RCW 36.70A.635). Policy HS-14 Promote middle housing and multifamily housing with family size units. Consider the recommendations of the Port Orchard Housing Action Plan on refining the building type and form/intensity standards, adjusting the locally adopted building code, supporting staffing needs, and funding strategies. Policy HS-15 Consider the creation of zoning and other land use incentives for the private construction of affordable and special needs housing as a percentage of units in multifamily development. Policy HS-16 Consider adopting incentives for development of affordable multifamily homes, including middle housing, through property tax abatement in accordance with 84.14 RCW, focusing on designated centers with identified needs for residential infill and redevelopment. Policy HS-17 Explore the re-establishment of a Multifamily Tax Exemption (MFTE) program as a means of increasing the City's affordable housing supply. Consider the recommendations of the Port Orchard Housing Action Plan on eligible zones and properties, qualifying income levels, program duration, development incentives, and other standards. Port Orchard Comprehensive Plan DRAFT: November 2024 Chapter 3: Housing Goal 3. Promote the efficient u maximize development municipal infrastructure. ise of residential land in order to potential and make efficient use of Policy HS-18 Encourage housing growth concentration within walking and bicycling distance of public schools, parks, transit service, and commercial centers. Promote improvements to pedestrian and bicycles facilities where most housing growth is occurring. Policy HS-19 Encourage the development of both vertical and horizontal forms of mixed -use developments featuring a combination of multifamily housing and nonresidential uses within centers. Policy HS-20 Implement zoning and development regulations which encourage infill housing on empty and redevelopable parcels. Policy HS-21 Consider increasing maximum housing densities and implementing minimum housing densities in appropriate areas to increase land and infrastructure efficiency. Policy HS-22 Protect critical areas, or environmentally sensitive areas, from future housing development. Determine appropriate densities and uses and implement flexible development standards to balance the goals of housing targets and environmental protection. Policy HS-23 Establish a process for annexation informed by the need for infrastructure investments in new residential areas. Evaluate the fiscal impacts of higher infrastructure maintenance costs and additional service expenses resulting from annexation. Goal4. Reduce disparities in housing access and mitigate displacement impacts to vulnerable communities. Policy HS-24 When plans and investments are expected to create neighborhood change, use public investment and coordinate with nonprofit housing organizations to mitigate impacts of market pressure that cause involuntarily displacement of low-income households and vulnerable communities. Policy HS-25 Advocate for additional funding at County, Federal, State, and other levels to expand programs that: • facilitate home ownership for low- to moderate -income resident, • prevent, avoidable, involuntary evictions and foreclosures, and • provide assistance for repair, rehabilitation, energy efficiency, and weatherization. Policy HS-26 Encourage a variety of ownership opportunities and choices by allowing and supporting including but not limited land trusts, tenant opportunity to purchase programs, limited equity cooperative, and sweat equity. Port Orchard Comprehensive Plan DRAFT: November 2024 Chapter 3: Housing Policy HS-27 Consider programs and other maintenance support, such as use of Community Development Block Grants or Housing Repair Programs to preserve or rehabilitate neighborhoods and areas that are showing signs of deterioration due to lack of maintenance or abandonment. Policy HS-28 Encourage senior and special needs housing to be integrate throughout the community and be located near services. Policy HS-29 Strengthen coordination between the City, county, and service providers to provide homelessness support service and outreach. Adopt a Housing First approach. Goal S. Promote functional and livable forms of housing that integrates well with its surroundings and accommodates people in all stages of life. Policy HS-30 Encourage the development and maintenance of all housing, especially multifamily housing, that protects health and safety of residents and support healthy lifestyle and active living. Policy HS-31 Encourage energy efficient housing types that conserve non-renewable energy and help minimize impact on air quality and climate. Policy HS-32 Support housing options, programs, and services that allow seniors to "age in place" in their homes or neighborhoods. Promote awareness of Universal Design improvements to improve accessibility. Policy HS-33 Promote healthy, livable, and functional forms of housing at all scales through code provisions that provide for usable open space and/or recreational facilities, pedestrian connectivity, and safe and welcoming development frontages. Policy HS-34 Provide information and assistance to property owners of historically significant housing to encourage preservation of these cultural resource. Port Orchard Comprehensive Plan DRAFT: November 2024