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01/25/2023 - PacketCity of Port Orchard Land Use Committee January 25, 2023 4:30 pm Remote access only Zoom Webinar Public Link (not to be used by LU Committee): https://us02web.zoom.us/i/81034433449 Dial -in: 1 253 215 8782 Webinar ID: 810 3443 3449 AGENDA 1. Discussion: Fiber Requirements 2. Discussion: Fireworks 3. Discussion: County Urban Growth Area Modifications 4. Discussion: Housing Action Plan — Existing Conditions Report 5. Discussion: Development Agreement —Sign Regulations 6. Discussion: 2023 Comprehensive Plan Amendments 7. Discussion: March meeting date RCW 35.99.070 Additional ducts or conduits —City or town may require. A city or town may require that a service provider that is constructing, relocating, or placing ducts or conduits in public rights -of -way provide the city or town with additional duct or conduit and related structures necessary to access the conduit, provided that: (1) The city or town enters into a contract with the service provider consistent with RCW 80.36.150. The contract rates to be charged should recover the incremental costs of the service provider. If the city or town makes the additional duct or conduit and related access structures available to any other entity for the purposes of providing telecommunications or cable television service for hire, sale, or resale to the general public, the rates to be charged, as set forth in the contract with the entity that constructed the conduit or duct, shall recover at least the fully allocated costs of the service provider. The service provider shall state both contract rates in the contract. The city or town shall inform the service provider of the use, and any change in use, of the requested duct or conduit and related access structures to determine the applicable rate to be paid by the city or town. (2) Except as otherwise agreed by the service provider and the city or town, the city or town shall agree that the requested additional duct or conduit space and related access structures will not be used by the city or town to provide telecommunications or cable television service for hire, sale, or resale to the general public. (3) The city or town shall not require that the additional duct or conduit space be connected to the access structures and vaults of the service provider. (4) The value of the additional duct or conduit requested by a city or town shall not be considered a public works construction contract. (5) This section shall not affect the provision of an institutional network by a cable television provider under federal law. [2000c83§7.1 Poulsbo Municipal Code 12.02.015 Conduit standards. A. Legislative Findings. The Poulsbo city council finds that: 1. Demand for access to high-speed telecommunications services is growing. In order to fill such demand, telecommunications service providers install telecommunication lines in public rights -of -way. 2. In other jurisdictions, the demand for access and the number of telecommunications service providers has sometimes resulted in multiple, serial excavations within the public rights -of -way. Each such excavation can and does result in traffic disruption, a weakening of pavement integrity, and a shortening of the useful life of paved surfaces. 3. The city of Poulsbo has not experienced a high demand for use of the public rights -of -way by telecommunications service providers, but in order to responsibly manage its public rights -of - way the city should anticipate such demand in the future and plan accordingly. 4. Requiring that conduit be installed in newly constructed public streets and rights -of -way in order to accommodate the anticipated future demand for access to telecommunications services will assist the city in responsibly managing its public rights -of -way by: a. Reducing or eliminating the need for excavation within public streets and rights -of -way when telecommunications service providers seek to locate underground telecommunications facilities within such streets and rights -of -way in the future; b. Reduce or eliminate the traffic disruption that occurs whenever excavation occurs within streets and public rights -of -way; c. Reduce or eliminate the loss of pavement integrity and diminishment of the useful life of pavement that occurs whenever paved streets and rights -of -way are cut and excavated within; and d. Meet the needs and desires of the public for access to high-speed telecommunications services and the needs and desires of telecommunications service providers to locate within the public streets and rights -of -way. 5. In residential areas, anticipated demand for the reasonable future can likely be met by the capacity provided by two telecommunication lines. In non-residential areas, anticipated demand is higher, but can likely be met for the reasonable future by the capacity provided by four telecommunication lines. Requiring the installation of conduit and other facilities necessary to support these lines will allow anticipated needs to be met while allowing the city to responsibly manage its rights -of -way. B. Intent. The intent of this section is to provide for the construction of infrastructure sufficient to allow telecommunications service providers desiring to deploy communication lines in the future to do so by pulling the same through the conduit and appurtenances installed pursuant to this section and without excavating within the right-of-way. This section is not intended to require telecommunications service providers to install additional ducts or conduit pursuant the provisions of RCW 35.99.070, but is intended to require those constructing public streets, including the city and private developers, to provide and install such conduit and appurtenances as may be necessary to accommodate future telecommunications needs within public streets and rights -of -way without further excavation or disturbance. C. Requirements —Adoption of Standards. Whenever any new public street is constructed, whether by the city as a public works project or by a private party in conjunction with development, the following shall be required: 1. In all new local access public streets serving or abutting residential development, a conduit of a sufficient diameter and containing interducts of sufficient number and diameter to accommodate a minimum of two telecommunication lines shall be installed by the parry constructing the street. 2. In all new collector or arterial public streets serving or abutting residential development, and in all new public streets serving or abutting nonresidential development, a conduit of a sufficient diameter and containing interducts of sufficient number and diameter to accommodate a minimum of four telecommunication lines shall be installed by the party constructing the street. 3. In addition to installing conduit, the parry constructing the street will be required to install such vaults and other appurtenances as may be necessary to accommodate installation and connection of telecommunication lines within the conduit. 4. All construction and installation shall be accomplished according to construction standards adopted by the city engineer. The construction standards shall be adopted with due consideration given to existing and anticipated technologies and industry standards. The construction standards shall specify the minimum diameter of the conduit and interducts and the minimum number of interducts to meet the requirements of this section. 5. All conduit and appurtenances installed by private parties pursuant to this section shall be conveyed and dedicated to the city with the dedication and conveyance of the public street and/or right-of-way. 6. Any and all installation costs shall be the responsibility of the party constructing the public street. D. Use by Telecommunications Service Providers. Whenever conduit installed or to be installed under this section is available or will become available within a newly constructed public streets or right-of-way upon dedication, all telecommunications service providers thereafter locating telecommunication lines within such street or right-of-way shall be required to locate their communication lines within such conduit unless it can be demonstrated to the reasonable satisfaction of the city engineer that such location is not technologically feasible or reasonably practicable. Conduit capacity shall be allocated to telecommunications service providers on a first -come, first -served basis; provided, that the city may reserve capacity within such conduits for its own use; and provided further, that the city engineer may adopt additional rules for conduit allocation in order to ensure that all telecommunications service providers have reasonable access to the city's rights -of -way and that no barriers to entry or competition result from the allocation of conduit space. E. Fees. The city reserves the right to charge reasonable fees for the use of conduit installed pursuant to this section, to the extent consistent with and as limited by federal and state laws and regulations. Any such fees shall be established by resolution or ordinance. (Ord. 2003-25 § 1, 2003) DocuSign Envelope ID: AF92123F-F61 D-4DFD-9F69-822FB13315DD City of Port Orchard Council Meeting Minutes Regular Meeting of March 22, 2022 1. CALL TO ORDER AND ROLL CALL Mayor Putaansuu called the meeting to order at 6:30 p.m. Roll call was taken by the City Clerk as follows: Mayor Pro-Tem Lucarelli Councilmember Chang Councilmember Clauson Councilmember Cucciardi Councilmember Diener Councilmember Trenary Councilmember Rosapepe Mayor Putaansuu Present via Remote Access Present via Remote Access Present via Remote Access Present via Remote Access Present via Remote Access Present via Remote Access Present via Remote Access Present via Remote Access Staff present via remote access: Public Works Director Dorsey, HR Manager Lund, Finance Director Crocker, Police Chief Brown, Community Development Director Bond, City Attorney Archer, City Clerk Wallace and Deputy City Clerk Floyd. The meeting also streamed live on YouTube. A. PLEDGE OF ALLEGIANCE (Time Stamp: 0:00:26) Mayor Putaansuu led the audience and Council in the Pledge of Allegiance. 2. APPROVAL OF AGENDA (Time Stamp: 0:00:44) MOTION: By Councilmember Clauson, seconded by Councilmember Diener, to approve the agenda as published. The motion carried. 3. CITIZENS COMMENTS (Time Stamp: 0:01:48) Greg Krabbe spoke to the agreement with McCormick Communities, LLC regarding water credit reimbursements for water improvements and thanked staff and consulting groups for working on this. DocuSign Envelope ID: AF92123F-F61 D-41DFD-91`69-8221`1313315DD Minutes of March 22, 2022 Page 2 of 6 4. CONSENT AGENDA (Time Stamp: 0:03:36) A. Approval of Voucher Nos. 83688 through 83776 and 83783 through 83812 including bank drafts in the amount of $357,394.05 and EFT's in the amount of $154,898.53 totaling $512,292.58. B. Approval of Payroll Check Nos. 83777 through 83782 including bank drafts and EFT's in the amount of $223,664.56 and Direct Deposits in the amount of $209,203.24 totaling $432,867.80. C. Approval of the March 8, 2022, City Council Meeting Minutes MOTION: By Councilmember Lucarelli, seconded by Councilmember Rosapepe, to approve the consent agenda as presented. The motion carried. 5. PRESENTATION There were no presentations. 6. PUBLIC HEARING (Time Stamp: 0:04:15) A. Draft Ordinance Amending Port Orchard Municipal Code Chapter 5.60 Fireworks Mayor Putaansuu opened the public hearing at 6:36 p.m. In response to Randy Jones, Mayor Putaansuu noted this public hearing is only for fireworks and the Zoom only meetings will hopefully end sometime in May. Dee C. with Real American Pageants said they use fireworks to raise money for social enrichment programs for low and no -income families and homeless youth. If Port Orchard takes that away, Kitsap youth with suffer. This could be the last year they could help assist the youth. In response to Councilmember Clauson, Dee C. explained they generate about $12,000 a season in Port Orchard, and scholarships for high school graduates. Randy Cearley Area Manager for TNT fireworks, said Rice University did a study on what causes the majority of fires, and noted fireworks/matches causes only 5% of fires. Also, the City of Tacoma banned fireworks a couple years ago, but they noticed there were as much, or more fireworks than before the ban. He explained why bans do not work and how it would create a huge pressure on the City to enforce the ban. Robert McGee questioned if the City has done an evaluation on what the net sales tax loss would be to the City and the sales going to the surrounding areas. In response to Cole Berdowski, Mayor Putaansuu noted this public hearing is only for fireworks. Mayor Putaansuu noted there is a fireworks survey on the City's website, and we will continue this public hearing to April 12t" when we take more public testimony. DocuSign Envelope ID: AF92123F-F61 D-4DFD-9F69-822FB13315DD Minutes of March 22, 2022 Page 3 of 6 Councilmember Lucarelli asked which fireworks would be banned and what kind of penalties would we assign? Councilmember Diener called Point of Order and asked if this is the right time to discuss this. Mayor Putaansuu agreed this is not the time for deliberations, and we will wait until April 12tn Community Development Director Bond said several comments came in after the packet went out. Those comments have been emailed to all Councilmembers and the City Clerk added them to the record. In response to Franklin Rusk, Mayor Putaansuu explained the ban would be for all personal fireworks other than the public display. Mayor Putaansuu said Randy Jones was having technical difficulties earlier in the meeting during citizen comments and asked the Council if Mr. Jones could speak. Councilmembers had no objections. Randy Jones spoke to the purchase of Mr. Haynes property and voiced his concerns with the price valuation of the property. 7. BUSINESS ITEMS (Time Stamp: 0:24:08) A. Adoption of an Ordinance Amending the 2021-2022 Biennial Budget MOTION: By Councilmember Clauson, seconded by Councilmember Cucciardi, to adopt an ordinance, amending the 2021-2022 Biennial Budget, as adopted by Ordinance No. 035-20 and as amended. The motion carried. (Ordinance No. 011-22) B. Adoption of a Resolution Approving a Contract with McCormick Communities, LLC Regarding Credits for Water Capital Facility Charges (Time Stamp: 0:26:37) MOTION: By Councilmember Lucarelli, seconded by Councilmember Clauson, to adopt a resolution authorizing the Mayor to sign an Agreement between the City of Port Orchard and McCormick Communities, LLC, regarding credits for water capital facility charges. The motion carried. (Resolution No. 032-22 and Contract No. 048-22) DocuSign Envelope ID: AF92123F-F61 D-41DFD-91`69-8221`1313315DD Minutes of March 22, 2022 Page 4 of 6 C. Adoption of a Resolution Authorizing the Purchase of Kitsap County Tax Parcel No. 4027- 022-001-0004 for the Bay Street Pedestrian Pathway Project (Time Stamp 0:36:24) MOTION: By Councilmember Diener, seconded by Councilmember Clauson, to adopt Resolution No. 028-22, authorizing the purchase of Kitsap County Tax Parcel No. 4027-022-001-0004 for the Bay Street Pedestrian Pathway Project in the total acquisition payment of $520,899.25 plus the relocation payment in the amount of $386,118.03, the moving benefit payment in the amount of $5,000.00 and any additional associated closing costs -escrow fees as needed, and authorizing the Mayor to execute all documents necessary to effectuate this acquisition and relocation. The motion carried. D. Approval of Memorandums of Understanding with Teamsters Local 589 Representing Police Support Staff, Municipal Court Employees and Public Works Employees (Time Stamp 0:41:20) MOTION: By Councilmember Cucciardi, seconded by Councilmember Lucarelli, to authorize the Mayor to sign MOU's with each of the three bargaining units represented by Teamsters Local No. 589 to correct language in Appendix B of the collective bargaining agreements regarding payroll deductions in three paycheck months. The motion carried. (MOU No 1 to Contract No. 021-22, MOU No. 1 to Contract No. 022-22, and MOU 1 to Contract No. 023-22) 8. DISCUSSION ITEMS (No Action to be Taken) (Time Stamp: 0:44:10) A. Continued: Veterans Park Discussion was held which included monitoring actions being taken at the park, clearing out trash, cleanup events, continued trash accumulation within the encampments, signs of rodent infestation, scheduled removal of the RV, long term removal of the encampments, timeline from the County, and the Kitsap Sun article. Council Direction: No direction was given to staff. 9. REPORTS OF COUNCIL COMMITTEES (Time Stamp: 0:48:01) Mayor Putaansuu reported the Economic Development and Tourism Committee is scheduled to meet April 18t". Utilities Committee is scheduled to meet April 12t". Finance Committee is scheduled to meet April 19t". The Land Use Committee is scheduled to meet April 20tn Councilmember Chang and Mayor Putaansuu reported on the March 22nd Transportation Committee meeting which included the Bay Street design, Bethel Phase 1, Community Events Center, and Old Clifton pathway. DocuSign Envelope ID: AF92123F-F61 D-4DFD-9F69-822FB13315DD Minutes of March 22, 2022 Page 5 of 6 Mayor Putaansuu explained we learned that you can no longer buy gas trucks on the State's bid list. We are now required to order electric vehicles. We are pursuing a grant for a solar array and charging stations. Councilmember Lucarelli reported on the March 215t Festival of Chimes and Lights Committee meeting. City Clerk Wallace reported on the Lodging Tax Application process. Mayor Putaansuu reported that Kitsap Transit sent a letter stating every 4 years, they are required to review the composition of its board. We get 1 representative at that meeting. He is willing to do it, but it is up to Council. Councilmembers had no objections with Mayor Putaansuu sitting on this committee. Lastly, he gave a brief report on Housing Kitsap. 10. REPORT OF MAYOR (Time Stamp: 0:59:47) The Mayor reported on the following: • Community Events Center survey; • Phase 1 of the Bay Street Pedestrian Pathway project; and • Equipment install for the Council Chambers. 11. REPORT OF DEPARTMENT HEADS (Time Stamp 1:02:11) HR Manager Lund reported the City of Port Orchard has been awarded the 2022 WellCity Award. Community Development Director Bond reported on the 2021 Impact Fee Annual Report. Police Chief Brown reported on recruiting and interviews. 12. CITIZEN COMMENTS (Time Stamp: 1:06:19) There were no citizen comments. 13. GOOD OF THE ORDER (Time Stamp: 1:07:13) There were no good of the order comments. 14. EXECUTIVE SESSION No executive session was held. DocuSign Envelope ID: AF92123F-F61 D-4DFD-9F69-822FB13315DD Minutes of March 22, 2022 Page 6 of 6 15. ADJOURNMENT The meeting adjourned at 7:37 p.m. No other action was taken. Audio/Visual was successful. DocuSigned by: DocuSigned by: Brandy Wallace, MMC, City Clerk Robert Putaansuu, Mayor DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E24OC83OF City of Port Orchard Council Meeting Minutes Regular Meeting of April 12, 2022 1. CALL TO ORDER AND ROLL CALL Mayor Putaansuu called the meeting to order at 6:30 p.m. Roll call was taken by the City Clerk as follows: Mayor Pro-Tem Lucarelli Councilmember Chang Councilmember Clauson Councilmember Cucciardi Councilmember Diener Councilmember Trenary Councilmember Rosapepe Mayor Putaansuu Present via Remote Access Present via Remote Access Present via Remote Access Present via Remote Access Present via Remote Access Present via Remote Access Present via Remote Access Present via Remote Access Staff present via remote access: Finance Director Crocker, Police Chief Brown, Community Development Director Bond, Operations Manager Lang, City Attorney Archer, City Clerk Wallace, and Deputy City Clerk Floyd. The meeting also streamed live on YouTube. A. PLEDGE OF ALLEGIANCE (Time Stamp: 0:00:30) Mayor Putaansuu led the audience and Council in the Pledge of Allegiance. 2. APPROVAL OF AGENDA (Time Stamp: 0:00:52) MOTION: By Councilmember Clauson, seconded by Councilmember Rosapepe, to approve the agenda as published. The motion carried. 3. CITIZENS COMMENTS (Time Stamp: 0:01:50) There were no citizen comments. 4. CONSENT AGENDA (Time Stamp: 0:02:37) A. Approval of Voucher Nos. 83813 through 83839 and 83842 through 83902 including bank drafts in the amount of $1,563,639.20 and EFT's in the amount of $136,847.15 totaling $1,700,486.35. DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E240C830F Minutes of April 12, 2022 Page 2 of 7 B. Approval of Payroll Check Nos. 83840 through 83841 including bank drafts and EFT's in the amount of $145,464.01 and Direct Deposits in the amount of $213,446.65 totaling $358,910.66. C. Adoption of a Resolution Declaring a Certain Item as Surplus and Authorizing its Disposition (Resolution No. 034-22) D. Adoption of a Resolution Approving the Purchase of Equipment for the Equipment Rental Revolving Fund 500 (Resolution No. 035-22) E. Adoption of a Resolution Supporting the 2025-2026 Federal Transportation Funding Cycle Application for the SR166/Bay Street Improvement Project (Geiger to Frederick) (Resolution No. 031-22) F. Approval of the March 11, 2022, Council Retreat Minutes G. Approval of the March 22, 2022, City Council Meeting Minutes MOTION: By Councilmember Lucarelli, seconded by Councilmember Diener, to approve the consent agenda as published. The motion carried. S. PRESENTATION There were no presentations. 6. PUBLIC HEARING (Time Stamp 0:03:07) A. Continuation of Port Orchard Municipal Code Chapter 5.60 Fireworks Mayor Putaansuu noted this is a continuation of the public hearing opened at the last Council meeting. Sue spoke in favor of banning fireworks in Port Orchard due to being dangerous, causing anxiety in pets, and they are bad for the environment. Randy, Heidi Fenton, Marti Bishop, and Kevin B. spoke in opposition of the ban, mentioning the fireworks industry is committed to making as little trash as possible, reducing carbon footprint, the Council can instead ban certain fireworks and not all fireworks, non -profits depend on the fireworks revenue, public safety, regulating the ban, and continuing family gatherings on the 4tn In response to Anita Rose, Mayor Putaansuu explained this is the time for public testimony only on fireworks, but there is a citizen comment portion near the end of the meeting for any topic. There being no more testimony, Mayor Putaansuu closed the public hearing at 6:48 p.m. Mayor Putaansuu shared the fireworks survey results. DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E24OC83OF Minutes of April 12, 2022 PaRe3of7 7. EXECUTIVE SESSION The executive session was not held. 8. BUSINESS ITEMS (Time Stamp: 0:24:56) A. Adoption of an Ordinance Amending Port Orchard Municipal Code Chapter 5.60 Fireworks MOTION: By Councilmember Rosapepe, seconded by Councilmember Diener, to adopt an ordinance, amending POMC 5.60 to ban the private sale and use of fireworks within City limits, as presented. Councilmembers Lucarelli, Cucciardi, Clauson, Trenary, Chang spoke against the ban. Councilmember Diener spoke in favor of the ban. The motion failed. Councilmembers Lucarelli, Cucciardi, Clauson, Trenary and Chang voted no. B. Adoption of a Resolution Authorizing Relocation Benefits to the Owners of Kitsap County Tax Parcel No. 4027-023-017-0004 for the Bay Street Pedestrian Pathway Project (Time Stamp: 0:52:28) MOTION: By Councilmember Diener, seconded by Councilmember Cucciardi, to adopt Resolution No. 033-22, authorizing relocation benefits payments to the owners of Kitsap County Tax Parcel No. 4027-023-017-0004 for the Bay Street Pedestrian Pathway Project, and authorizing the Mayor to execute all necessary documents. The motion carried. (Resolution No. 033-22) C. Adoption of a Resolution Amending Resolution No. 042-20, Exhibit A -Procurement Policies and Procedures (Time Stamp 0:58:42) MOTION: By Councilmember Trenary, seconded by Councilmember Lucarelli, to adopt a Resolution amending Resolution No. 042-20, Exhibit A, the City's Procurement Policies and Procedures. The motion carried. (Resolution No. 036-22) D. Approval of Amendment No. 6 to Contract No. 066-20 with Rice Fergus Miller, Inc. for the Design Development and Construction Drawings of the Port Orchard Community Events Center (Time Stamp 1:03:01) DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E24OC83OF Minutes of April 12, 2022 Page 4 of 7 MOTION: By Councilmember Lucarelli, seconded by Councilmember Chang, to authorize the Mayor to execute Amendment No. 6 to Contract No. 066-20 with Rice Fergus Miller, Inc. for the South Kitsap Community Event Center Project in an amount of $1,389,500. The motion carried. E. Adoption of a Resolution Approving a Contract with N.L. Olson & Associations, Inc for the Engineering Services for the Demolition and Removal of the Sidney Water Tower Project (Time Stamp 1:08:56) MOTION: By Councilmember Chang, seconded by Councilmember Diener, to adopt Resolution No. 030-22, authorizing the Mayor to execute Contract No. C047-22 with N.L. Olson and Associates, Inc for engineering services for the Demolition and Removal of the Sidney Water Tower Project in an amount not to exceed $34,000.00, and documenting the Professional Services procurement procedures. Councilmember Lucarelli recused herself due to family employment at N.L. Olson and Associates, Inc. The motion carried. F. Approval of an Interagency Agreement with the Washington State Department of Commerce to Adopt a Housing Action Plan (Time Stamp 1:14:22) MOTION: By Councilmember Diener, seconded by Councilmember Clauson, to authorize the Mayor to execute the Washington State Department of Commerce Interagency Agreement with the City of Port Orchard through Growth Management Services for the Housing Action Plan Implementation Grant to adopt a Housing Action Plan in the amount of $75,000. The motion carried. (Agreement No. 056-22) G. Adoption of a Resolution Accepting the Lodging Tax Advisory Committee's Recommendation for Additional 2022 Funding Allocation (Time Stamp 1:19:31) MOTION: By Councilmember Cucciardi, seconded by Councilmember Rosapepe, to adopt a resolution, adopting the Lodging Tax Advisory Committee's recommendation for additional 2022 funding allocation, as presented. The motion carried. (Resolution No. 037-22) DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E24OC83OF Minutes of April 12, 2022 PaRe5of7 H. Adoption of a Resolution Approving Amendment No. 1 to Contract No. 074-21 with CodePros, LLC for Building Inspection and Plan Review Services (Time Stamp 1:29:40) MOTION: By Councilmember Clauson, seconded by Councilmember Cucciardi, to adopt a resolution waiving the city's procurement policies and authorizing the mayor to execute Amendment #1 to Contract 074-21 with CodePros, LLC, raising the total contract amount to $350,000. The motion carried. (Resolution No. 038-22) I. Approval of a Contract with SAFEBuilt Consultants for Building/Fire Code Plan Review and Building Code Inspection Services (Time Stamp 1:33:30) MOTION: By Councilmember Clauson, seconded by Councilmember Lucarelli, to approve a resolution providing a limited procurement policy waiver and authorizing the mayor to execute a contract with SafeBuilt for fire code plan review and building code inspection services as presented. The motion carried. (Contract No. 057-22) J. Memorandum of Understanding Regarding In Re: National Prescription Opiate Litigation, Case No. 1:17-MD-2804, United States District Court (Time Stamp 1:40:34) Council Direction: Add this item to the April 26, 2022, City Council Meeting for consideration and email the Council the Memorandum of Understanding (MOU) and summary for better understanding. K. Approval of a Road Closure for a Special Event: The Unforgotten Run to Tahoma (Time Stamp 1:56:03) MOTION: By Councilmember Diener, seconded by Councilmember Rosapepe, to approve the road closure for the Unforgotten Run event taking place on Saturday, May 28, 2022, as presented, and to waive POMC 5.94.030(4) for this event. The motion carried. 9. DISCUSSION ITEMS (No Action to be Taken) (Time Stamp: 2:00:56) A. Continued: Veterans Park Discussion was held which included removal of the RV at the south end of the park, Kitsap County Notice of Intent to Close Encampment, closure of individual tent sites, trash and debris, and what happens when encampments close. DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E240C830F Minutes of April 12, 2022 Page 6 of 7 Council Direction: No direction was given to staff. 10. REPORTS OF COUNCIL COMMITTEES (Time Stamp: 2:07:47) Mayor Putaansuu reported the Economic Development and Tourism Committee is scheduled to meet April 18t". The Finance Committee is scheduled to meet April 19t". The Transportation Committee is scheduled to meet April 26t". The Festival of Chimes and Lights Committee is scheduled to meet April 18t". The Land Use Committee is scheduled to meet April 20t". The Sewer Advisory Committee is scheduled to meet May 18c1, 11. REPORT OF MAYOR (Time Stamp: 2:09:13) The Mayor reported on the following: • Community Center survey; • Transportation Improvement Board award for pedestrian improvements by Cedar Heights; • Garbage can wraps; • Marina pump station construction and meeting with Port of Bremerton; • In accordance with Ordinance No. 008-20 'Delegating Authority to the Mayor for Creating and Modification of Job Descriptions', he approved revised job description for Mechanic; • Inspector Project Manager hiring, • Chambers audio update installation; and • Public Health Board legislation. 12. REPORT OF DEPARTMENT HEADS (Time Stamp 2:29:06) No reports of department heads. 13. CITIZEN COMMENTS (Time Stamp: 2:30:22) Anita Rose spoke to the Kitsap League of Women's Voters roundtable regarding climate change and asked for more bicycle lanes and offered suggestions to make bicyclists safer. Kevin B. suggested Port Orchard become a two-way sanctuary city. 14. GOOD OF THE ORDER (Time Stamp: 2:35:55) Councilmember Rosapepe encouraged people to get the booster shot. He also spoke to the civil discussion Council had during regarding fireworks. In response to Councilmember Clauson, Mayor Putaansuu briefly reported on repairs to City streets. Councilmember Lucarelli spoke about street trees that have recently been planted. DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E240C830F Minutes of April 12, 2022 Page 7 of 7 15. ADJOURNMENT The meeting adjourned at 9:11 p.m. No other action was taken. Audio/Visual was successful. DocuSigned by: Brandy Wallace, MMC, City Clerk EDocuSigned by: leatic,vf Robert Putaansuu, Mayor ORT fl�QORgr�'6.p, SEWA A o. _ u,rrrruu,l �� T� Itleniifiatia, Nummr: 79 SNe Add m,, NO S",Add " Amon Nummr(¢ 052301-11030 2005 Cumnt Zmn Rum Pm2oan (1 DIP Aces) " Rpue Z m, U Hmn Reutlentiel Zone JunmiNom Un nmrpamretl Rurel camm�.uann Dimia 2 Zaamta ... Itlen[i9cslion Number: 09 pdMdtl NOSuus Atltlreas / Rc NUmM 0022302M372001 �I 1 072302303820. ,0723023M3 20 , D7230230332W5 r CumrRZ Wv Rurel Pmreoan Cl DIP Acre) R Zo : UAan low Remtlemiel(59 DU ,/ JunWiNan: Uninmrpomretl Rural c mm,,w Dim&2 Port Orchard Housing Action Plan Existing Conditions and Housing Needs Analysis Report January 4, 2023 Introduction 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. The purpose of this effort is to define strategies and actions that promote greater housing diversity, affordability, and access to opportunity for residents of all income levels. 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, fee structures, and infrastructure spending priorities. Table of Contents Introduction..............................................................................................................................1 Section1 - Community Profile...............................................................................................3 Section 2 - Housing Inventory and Production Trends........................................................3 Section3 - Cost Trends........................................................................................................31 Section 4 - Housing and Service Needs..............................................................................36 Section 5 - Housing Funding and Monetary Tools.............................................................42 Section 6 - Housing Policies................................................................................................47 Section 7 - Land Capacity Analysis.....................................................................................64 Appendix A - Kitsap County Impact Fee Comparison........................................................64 Appendix B - Comprehensive Plan Policies........................................................................68 Port Orchard Housing Action Plan - Existing Conditions and Housing Needs Analysis Report Page 1 Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 2 Abbreviations ACS. American Community Survey, an annual product of the U.S. Census Bureau. AMI. Area median income. BIPOC. Black, Indigenous, (and) People of Color. CHAS. Comprehensive Housing Affordability Strategy, a product of the U.S. Department of Housing and Urban Development. GIS. Geographic Information System. 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. MFI. Medium family income. MFTE. Multifamily tax exemption program. MHI. Medium household income. MSA. Metropolitan Statistical Area. POMC. Port Orchard Municipal Code (city law). OFM. Washington State Office of Financial Management. RCW. Revised Code of Washington (state law). Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 3 Section 1- Community Profile The Community Profile discusses Port Orchard's current and future population and the age, race, and ethnicity of residents. It also discusses the size, income, and characteristics of the City's households, as well as households with specific needs and risks such as cost -burdened households, older adults, and adults with disabilities. These demographic and household characteristics provide background and context for the types of housing required to better serve all of Port Orchard's residents. Population and Demographics Historic and Future Population Port Orchard's population in 2020 was 15,587 according to the U.S. Census. The Washington Office of Financial Management Postcensal 2022 population estimate for the city is 16,400. Figure 1 shows the city's population trends since 1960, average annual growth rates by decade, and the latest Port Orchard 2044 population target of 26,087 residents as detailed in the Kitsap County Countywide Planning Policy Update. Port Orchard is a fast-growing community that has historically grown more rapidly than national and statewide averages. The city grew at an average annual rate of about 2.8 percent since 1960, but growth accelerated around 2000. Since 2000 the city has grown on average 4.0 percent annually, an increase of 9,442 residents. By comparison, Kitsap County grew at a rate of 0.9 percent per year over the same period and national population growth was 0.7 percent in the 2000-2020 period. The 2020 census and 2044 population target represent an expected annual growth rate of 2.2 percent per year, though recent trends have suggested higher growth rates closer to 3 percent indicating that Port Orchard may exceed its planning target. 30,000 25,000 20,000 c 0 15,000 Q 0 a 10,000 5,000 � Population Annual Growth Rate ■ 1960 1970 1980 6% 5% �a 2% c 1% 0% 1990 2000 2010 2020 2044 Figure 1. Port Orchard Population, Historic Through 2020 and Projected Through 2044 with Annual Growth Rates. Sources: WA OFM (Historic Population), Kitsap County Countywide Planning Policy Update 101412022 (Projections) Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 4 The City of Port Orchard annexed a large amount of acreage between 2010 and 2012, which contributed to the comparatively rapid population growth in the 2010s. During this period, the City annexed 1,400 acres comprising 515 parcels. Together, the newly annexed areas make up 19.5% of Port Orchard's total acreage. Without granular population numbers at a parcel level, it is difficult to assess exactly how many new residents are represented by this area, but these annexations have certainly affected the rapid growth rates seen over the past 20 years. Age, Race/Ethnicity, and Language Figure 2 shows the racial and ethnic breakdown of the Port Orchard and Kitsap County populations. Port Orchard is about 67 percent White, compared with 76 percent in Kitsap County. The city has a higher share of Hispanic/Latino and mixed -race residents than the county and similar shares of Asian and Black/African-American residents. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Port Orchard Kitsap County ■ Hispanic / Latino ■ Other / Two or More Races ■ Native Hawaiian / Pacific Islander Asian American Indian / Alaska Native ■ Black / African American ■ White Figure 2. Racial and Ethnic Distribution in Port Orchard and Kitsap County, 2020. Source: 2020 American Community Survey 5-Year Estimates, Table DP05 The Port Orchard population is somewhat younger than regional and statewide populations, as shown in Figure 3. Over half the population is under 35 years old, and 14 percent of residents are over 65, compared with 18 percent countywide. This younger population suggests a current need for smaller or more affordable housing units, and the potential for larger units as younger residents age and form households in coming decades. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 5 100% 90% 80% 11% 13% 14°i° 70% 11 % ■ 65 and older 12%12%60% 12% ■ 55 to 64 50% 12% 13% ■ 45 to 54 40% ° _ ■ 35 to 44 30% 220/, ■ 20 to 34 20°i° ■ 19 and younger 10% 0% Port Orchard Kitsap County Washington Figure 3. Age Distribution in Port Orchard and Kitsap County, 2020. Source: 2020 American Community Survey 5-Year Estimates, Table DP05 The chart below shows the age distribution of Port Orchard residents by sex. Generally, there are more males in the 25 to 54 age group and more females in older age cohorts. 85 years and over 75 to 84 years 65 to 74 years 60 to 64 years 55 to 59 years 45 to 54 years 35 to 44 years 25 to 34 years 20 to 24 years 15 to 19 years 10 to 14 years 5 to 9 years Under 5 years ■ Male Female -1,400 -1,200 -1,000 -800 -600 -400 -200 0 200 400 600 800 1,000 1,200 1,400 Figure 4. Age Distribution by Sex in Port Orchard and Kitsap County, 2020. Source: 2020 American Community Survey, Table SO101 Most Port Orchard residents are citizens born in the United States. About a third of Port Orchard's residents were born in the state of Washington. About half were born in another state (including U.S. territories). Almost five percent were born in Asia, with small numbers born in other regions of the world, as seen in Figure 5. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 6 Place of Birth USA (same state) Percent 37.0% Total 5,292 USA (other state) 52.3% 7,480 Europe 0.6% 79 Asia 4.8% 685 Africa 0.0% 0 Oceania 0.1 % 20 Latin America 1.3% 188 Northern America 0.4% 59 Figure 5. Port Orchard Residents Place of Birth, 2020. Source: 2020 American Community Survey 5-Year Estimates, Table CP02 Most Port Orchard households speak English as a first language. Almost six percent, or 815 households, speak an Asian or Pacific Island language, and about two percent, or 272 households, speak Spanish at home. Census data on English language proficiency is not available at the geographic scale of Port Orchard, but across all of Kitsap County, about 29 percent of Spanish speakers and 39 percent of Asian or Pacific Island language speakers do not speak English "very well." Limited English proficiency can have implications for housing security if materials are not translated or there is confusion over contracts, expectations, or tenant rights. Language English 91.8% 13,130 Spanish 1.9% 272 Indo-European languages 0.6% 86 Asian/ Pacific Island languages 5.7% 815 Other languages 0.1 % 14 Figure 6. Language Spoken at Home, 2020. Source: 2020 American Community Survey 5-Year Estimates, Table S1601 Household Characteristics Household Size, Type, and Tenure The U.S. Census Bureau defines a household as "all the people who occupy a housing unit." Households can be comprised of any combination of related family members, unrelated people, or individuals.' The 2020 American Community Survey estimated about 5,517 total households in Port Orchard, up from about 4,316 households in 2010—an increase of about 28 percent, or 2.5 percent per year. Figure 7 shows total households, occupied households, and the vacancy rate over the past decade. The vacancy rate compares the total number of occupied versus unoccupied units. This accounts for all "natural vacancies" due to units on the market being available for sale or rent, second homes and seasonal homes, vacation rentals, and any other type of unoccupied housing. See Section 2 for more information on market -based vacancy rates. 1 U.S. Census Bureau: Subject Definitions. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 7 The vacancy rate has fluctuated from seven percent in 2010 to as high as 14 percent in 2015 but has decreased to 5.6 percent in 2020.This decreasing vacancy rate suggests increased demand for housing in the city. Vacancy Rate Total Housing Units Occupied Housing Units 7,000 16% 6,000 14% 5,000 12% m 10% o 4,000 8% 73 3,000 M 0 6% � 2,000 4 � °i° 1,000 2% 0 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Figure 7. Vacancy Rates and Housing Unit Occupancy, 2010-2020. Source: 2010-2020 American Community Survey 5-Year Estimates, Table B25002 The following table shows household composition in Port Orchard and Kitsap County. Overall, the shares of family and non -family households are very similar to county averages, with nearly 70 percent of households classified as family households, about half of which are married couples. Twenty-two percent of Port Orchard residents live alone, and about half of those residents are over 65 years old. Household composition data can provide insight into the various types and sizes of housing to best meet the needs of the city's residents. Household TyPercent pe otal Households Port Orchard Total 5,517 100% Total 105,758 Percent 100% Family households 3,819 69% 71,415 68% Married -couple family 2,995 54% 56,388 53% Other family 824 15% 15,027 14% Nonfamily households 1,698 31 % 34.343 32% Householder living alone 1,214 22% 25,787 24% Householder 65 years and over 601 11 % 11,396 11 % Figure B. Household Composition in Port Orchard, 2020. Source: 2020 American Community Survey (ACS) 5-Year Estimates, Table S2501 Figure 9 shows tenure in Port Orchard. About 60 percent of households are renters and 40 percent are homeowners. This is broadly similar to statewide averages though a higher share of renter households than in Kitsap County, likely owing to the large number of apartments in Port Orchard compared to the rest of the county. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 8 100% 90% 80% 70% 60% 50% ■ Renter -occupied 40% ■ Owner -occupied 30% .•' 20% 10% 0% Port Orchard Kitsap County Washington Figure 9. Tenure in Port Orchard, 2020. Source: 2020 American Community Survey (ACS) 5-Year Estimates, Table S2501 Renters can face increased housing instability due to evictions and rent increases not faced by homeowners. In addition, renters are more likely to be BIPOC and lower -income households, compounding the effects of these housing challenges. As shown below in Figure 10, about 86 percent of ownership households in Port Orchard have a householder who identifies as White, compared with 64 percent of renter households. Nationally, Black households had the highest renter rate in 2022 at 55 percent, and Hispanic households were at 51 percent, compared to 26 percent for white households.2 Additionally, as discussed below under "Income" and shown in Figure 14, renters in Port Orchard earn less than homeowners, with a median household income for renter households of $46,209 in 2020 compared to $97,504 for ownership households. Race of Householder One Race Ownership Households Renter Households White 89.4% 71.5% Black or African -American 2.2% 4.5% American Indian or Alaska Native 0.3% 0.0% Asian 3.0% 4.3% Native Hawaiian or Pacific Islander 0.8% 8.8% Some Other Race 0.5% 3.2% Two or More Races 3.8% 7.8% Hispanic or Latino Origin 6.2% 12.9% White alone, not Hispanic or Latino 86.4% 64.4% All Households 60.1 % 39.9% Figure 10. Tenure by Race in Port Orchard, 2020. Source: 2020 American Community Survey (ACS) 5-Year Estimates, Table S2502 2 Harvard University Joint Center for Housing Studies, "The State of the Nation's Housing 2022" Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 9 Figure 11 shows the breakdown of Port Orchard's households by tenure and household size. About 34 percent of households are two -person households, and 27 percent have four or more members. Renters make up a slightly larger share of smaller households, although 11 percent of four -or -more -person households are also renters. 4-or-more-person household 3-person household 2-person household 1-person household 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 ■ Ownership Households ■ Renter Households Figure 11. Port Orchard Tenure by Household Size, 2020. Source: 2020 American Community Survey (ACS) 5-Year Estimates, Table S2501 The average household size in Port Orchard is 2.4 people per household'. There is a mismatch between housing size and household size in Port Orchard. Fifty-six percent of households are made up of one or two people, whereas only 37 percent of housing units are studio, one- or two -bedroom units, as shown below in Figure 11. Although smaller households may prefer to live in larger units, this type of mismatch can cause housing affordability issues if smaller households are forced to rent more expensive larger units due to supply constraints. 3 2020 American Community Survey 5-Year Estimates, Table DP04 Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 10 Household Size 3-person household 16°i° 2-person household 34% Housing Unit Size 3 bedrooms 41% Studio / 1 bedroom 10% bedrooms Figure 12. Household Size and Housing Unit Size in Port Orchard, 2020. Source: 2020 American Community Survey 5-Year Estimates, Tables S2501, DP04 When analyzed by tenure, there are more significant disparities in household size and housing unit size for homeowners, as shown below in Figure 12. Only 2 percent of ownership housing units are studio or one -bedroom units, whereas 53 percent of ownership households are one- or two -person households. The rental housing stock is more closely matched with renters' household sizes in the city. This shows that residents in smaller households seeking to purchase housing may face difficulties and higher costs due to lack of availability of small ownership units. Household Size ■ 1 person HH ■ 2 person HH 3 person HH ■ 4+ person HH 100% 90% 100% 90% 80% 80% 70% 70% 60% 60% 50% � 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% Owners Renters Housing Unit Size ■ 0-1 bedroom ■ 2-3 bedrooms ■ 4+ bedrooms Owners Renters Figure 13. Household Size and Housing Unit Size by Tenure in Port Orchard, 2020. Source: 2020 American Community Survey 5-Year Estimates, Tables S2501, S2504 Port Orchard Housing Action Plan - Existing Conditions and Housing Needs Analysis Report Page 11 Income The median household income (MHI) in Port Orchard was $71,719 in 2020, $7,250 less than the Kitsap County MHI and $5,287 less than the statewide average. The Port Orchard MFI increasec 21 percent since 2010, when adjusted for inflation. This is significantly higher than the 12 percent increase in Kitsap County and 14 percent increase across Washington during the same timeframe, as shown in Figure 13. $97,524 ■ 2010 ■ 2020 $75,600 $78,969 $77,006 $71,719 $70,268 $67,548 $59,325 $44,074 $46,209 Port Orchard Port Orchard Port Orchard Kitsap County Washington (All Households) (Ownership Households)(Renter Households) Figure 14. Inflation -Adjusted Median Household Income in Port Orchard and Region, 2010-2020. Source: 2010-2020 American Community Survey 5-Year Estimates, Table S2503, CPI Inflation Index Renters in Port Orchard earn considerably less than homeowners. In 2020, the MHI for ownership households was $97,524, compared to only $46,209 for renter households. In addition, renters in Port Orchard have seen only a five percent increase in incomes between 2010 and 2020, compared to a 29 percent increase in incomes of ownership households, when adjusted for inflation. Rental households' lower incomes and slower income growth compared with ownership households raises concerns over the ability of renters to keep up with rising housing costs or to move into homeownership, particularly given that wealthier ownership households may be able to pay more for housing. For the Bremerton -Silverdale Metropolitan Statistical Area (MSA), the 2022 median family income (MFI) is $102,500 and the 2020 MFI was $91,700. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 12 When broken down across income levels, the largest share of Port Orchard households earn between $75,000 and $100,000 per year, as shown in Figure 14. Port Orchard has smaller shares of high -income earners making over $150,000 per year than Kitsap County, and a much larger share of the lowest -income households earning less than $10,000 per year than countywide averages. This shows a high level of need for subsidized affordable housing, discussed further in Section 2 under "Affordable Housing." 20% 18% 16% ■Port Orchard 14% OKitsap County 12% 10% 8% 6% 4% 2% 0% O O O C) C) CD Ln CD Ln O N ODCD b4 Y M CD b4 b4 to b4 (V O b4 tH b4 11 4 O V IN O O O O O O Y N M Ln QO ul O Ln O b4 b4 b4 b4 b4 b4 I� O N l2 b4 to b4 b4 Figure 15. Household Income in the Past 12 Months, 2020. Source: 2020 American Community Survey 5- Year Estimates, Table B19001 Figure 16 below is from HUD Comprehensive Housing Affordability Strategy (CHAS) data' for 2019 and shows a breakdown of Port Orchard's households by income level and tenure. Almost half of Port Orchard residents (46 percent) earn less than 80 percent of the AMI, a common threshold for subsidized housing eligibility. About 69 percent of renter -occupied households earn less than 80 percent AMI, while 30 percent of owner - occupied households earn less than 80 percent AMI. Additionally, over a quarter (28 percent) of renters earn under 30 percent of the AMI, or $27,500 for a family of four, 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. Stakeholders described 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. 4 Comprehensive Housing Affordability Strategy, a HUD dataset based on calculations from the American Community Survey 5-Year Estimates that provides a series of tables demonstrating housing problems and needs. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 13 100%+AMI 80-100% AM I 50-80% AMI 30-50% AMI ■ Owner ■ Renter < 30% AMI 0 500 1,000 1,500 2,000 2,500 Figure 16. Port Orchard Households by Income Level and Tenure. Source: 2015-2019 HUD CHAS data Vehicle Ownership Figure 16 shows number of vehicles available to Port Orchard households by the tenure of unit. Owner -occupied units are more likely to have two or three vehicles, while renter -occupied units are more likely to have one to two vehicles. Also of note,14 percent of renter households have no access to a vehicle. These vehicle ownership ratios are similar to statewide averages, although ownership households are slightly more likely to have two vehicles in Port Orchard than statewide. 60% ■ Owner ■ Renter 50% � 40% 30% � 20% 10% 0% � No vehicle 1 vehicle available 2 vehicles 3 vehicles 4 vehicles 5 or more vehicles available available available available available Figure 17. Vehicle Ownership by Tenure of Unit, 2020. Source: 2020 American Community Survey 5-Year Estimates, Table B25044 Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 14 Employment Trends Understanding workforce and employment trends is essential for housing planning. A growing, shrinking, or shifting economy can affect residents' ability to afford housing and limit or expand their housing choices. Strong economies in nearby communities can also affect commuting and residential patterns. Figure 18 shows changes in Port Orchard's top employment sectors from 2009 to 2019, the year of the most recent Census employment data. Retail jobs have increased significantly, and health care and food service jobs have also seen growth since the 2008 recession. The large number of public administration jobs reflect county offices within Port Orchard, the county seat. 2,000 1,800 1,600 1,400 f� 1,200 1,000 800 600 400 200 & 00 RR 00 OHO 01 00 O°' .�O NN ,�`L Nrb NIX '�h NO NA NO Nq �O �O �O If, If, If, �O rf, rO If, If, I_fI rf, rf, 1O If, If, rf, Retail Trade Public Administration Health Care / Social Assistance Accommodation / Food Construction Professional Services Figure 18. Job Trends by Top Sectors in Port Orchard, 2009-2019. Source: U.S. Census Bureau Longitudinal Employer -Household Dynamics (LEND) via Census OnTheMap Figure 19 shows the top job sectors in the city and the top job sectors worked by Port Orchard residents. Many of the employees in the top sectors, particularly retail and public administration, are not Port Orchard residents. On the other hand, there are larger shares of residents who work in professional services, education, and manufacturing than jobs in the city. This reflects a variety of scenarios, including technology/knowledge workers employed in Seattle, regional educators at schools in nearby cities, and industrial employees in surrounding areas, potentially connected to the Naval shipyard in Bremerton. Port Orchard Housing Action Plan - Existing Conditions and Housing Needs Analysis Report Page 15 1,800 1,600 1,400 1,200 1,000 800 600 400 200 lilliddom 0 mijoi aae `°� aye &``A `°" G°5 `°" Goe ��` ae - o� "J a�G'oK Q GPaca 1 o°a\ G �y\oa Pam or \��� �r°tee a Ge\ lac QJ•Q\` � ■ Jobs in Port Orchard ■ Jobs Worked by Port Orchard Residents Figure 19. Top Job Sectors in Port Orchard and Jobs Worked by Port Orchard Residents, 2019. Source: U.S. Census Bureau Longitudinal Employer -Household Dynamics (LEHD) via Census OnTheMap The map below shows commuting patterns of Port Orchard workers as of 2019, the year of the most recent Census commuter data. About 585 workers, or 11.7 percent of Port Orchard employees, both lived and worked in the city. 6,540 workers lived outside of the city and commute in for work, and 4,396 workers lived in the city but commuted to work elsewhere. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 16 Employed and Live in Selection Area Employed in Selection Area, Live Outside Live in Selection Area, Employed Outside Bremerton Navy Yard City 304 T ,,540 Port orchard 4,396 Parkwood Ea,-. Port Orchard 5-85 # S��r�east �ea9Wi Figure 20. Port Orchard Commuting Inflow and Outflow, 2019. Source: U.S. Census Bureau LEHD (Longitudial Employer -Household Dynamics) via Census OnTheMap tool. As shown below in Figure 21, a similar amount of Port Orchard residents were working in Seattle, Port Orchard, and Bremerton in 2019. Smaller shares of residents were working in other nearby locales, including unincorporated East Port Orchard. This data is not yet available for more recent years but monitoring these commuting trends will be important due to the changes in workplace dynamics and remote work since the COVID-19 pandemic that began in 2020. Work Location Seattle city, WA Percent 12.3% Port Orchard city, WA 11.7% Bremerton city, WA 10.8% Silverdale CDP, WA 5.0% East Port Orchard CDP, WA 4.7% Tacoma city, WA 4.3% Gig Harbor city, WA 4.0% Bellevue city, WA 2.2% Kent city, WA 1.7% Poulsbo city, WA 1.5% All Other Locations 41.6% Figure 21. Port Orchard Commuting Locations, 2019. Source: U.S. Census Bureau LEHD (Longitudial Employer -Household Dynamics) via Census OnTheMap tool. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 17 Section 2 - Housing Inventory and Production Trends This section discusses the type and age of Port Orchard's existing housing stock and current and future housing production. It also identifies special housing types in Port Orchard such as subsidized affordable units and senior housing. An inventory of existing housing creates a baseline for future housing planning and identifies market trends. Total Housing Units Port Orchard's 5,577 housing units account for approximately five percent of Kitsap County's housing units. The breakdown of unit types is shown below in Figure 22. Sixty-three percent of units are single-family detached units, somewhat less than the county. Port Orchard has a noticeably higher share of buildings with 5-19 units than the county, and an overall higher share of multifamily units. 100°i° 3% 5% 90% 6% 80% 7% 5% 70% 3% 60% 50% 40% 30% 20% 10% 0% Port Orchard 3% Kitsap County Mobile home ■ 20 or more units ■ 10 to 19 units ■ 5 to 9 units ■ 3 or 4 units ■ 2 units ■ 1-unit, attached ■ 1-unit, detached Figure 22. Housing Unit Type in Port Orchard and Kitsap County, 2020. Source: 2020 American Community Survey 5-Year Estimates, Table DP04. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 18 Housing Age and Production Figure 23 shows the age of housing stock in Port Orchard as of 2020. The city has a considerably younger housing stock than Kitsap County overall, with 57 percent of housing built since 1990, compared with 40 percent countywide. However, Port Orchard also contains a slightly larger share of older buildings constructed before 1950 than the county, at 23 percent. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 12% 5% 7% Port Orchard 5% 14% 18% 7% 4% Kitsap County ■ 2010 or later ■ 2000-2009 ■ 1990-1999 ■ 1980-1989 ■ 1970-1979 ■ 1960-1969 ■ 1950-1959 ■ 1940-1949 ■ 1939 or earlier Figure 23. Age of Housing in Port Orchard and Kitsap County, 2020. Source: 2020 American Community Survey 5-Year Estimates, Table DP04. Building permit issuance data shown below in Figure 20 corroberates this data on housing age. A significant number of multifamily housing permits were issued in the 1990s, and multifamily permitting has accelerated in the past decade, as have single-family housing permits. This data shows issued permits, not completions, so much of the housing shown in the past several years has not yet been occupied but is in the pipeline. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 19 600 500 Single -Family Duplex Triplex / 4-Plex ■ 5+ Unit Multifamily 400 300 200 ' 100 ' 0 1§0 %101 O O1` � 00 00 Oc0 l, C51X 0 qOff' O 00 O� � Figure 24. Port Orchard Building Permits Issued by Unit Type, 1980-2022 (to date). Source: HUD State of the Cities Data Systems (SOCDS) Figure 25 shows expected dates when certificates of occupancy will be granted for permitted housing in the pipeline. In total, 5,198 units are permitted and expected to be completed in Port Orchard in the coming years, 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. 3000 2500 2000 ■Mixed -Use Development 1500 ■ 5+ Unit Apartment 4-Plex 1000 Townhouse Single Family & Townhouse 500 Single Family 0 2022 2023 2024 Permitting Initiated, Timeline Uncertain Figure 25. Number of Units Permitted with Certificates of Occupancy Expected 2022 and Later by Unit Type. Source: City of Port Orchard. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 20 Interviews with developers and stakeholders conducted by the project team in summer 2022 confirmed a large amount of single-family and apartment construction both underway and planned. In particular, the McCormick Woods development, a large master planned community in the western part of the city, has been in development since the 1980s and will significantly increase the city's housing stock, as well as representing a portion of the newly annexed land previously discussed. City permitting data indicates 2,729 units at McCormick Woods either permitted or currently in the permitting process. The multifamily developments built in Port Orchard to date have been walk-up apartments. Some developers indicated that there may be a market for denser podium -style development in the 10-20 year time horizon, and at least one such project has recently been proposed (see the project spotlights later in this section). Vacancy Rates Port Orchard's vacancy rates for rental and ownership properties are shown in Figure 26. In 2020, the Census -reported rental vacancy rate was 5.8 percent and the ownership vacancy rate was 1.4 percent. Both vacancy rates have decreased over the past decade as shown below, and the 5.8 percent rental vacancy rate reflects the large amount of rental apartment construction which has taken place in Port Orchard in recent years. Note that this vacancy rate is based only on dwelling units that are available on the market for sale or rent. It is different from the total number of unoccupied units discussed in Section 1. 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Ownership Vacancy Rate Rental Vacancy Rate Figure 26. Vacancy Rates in Port Orchard, 2010-2020. Source: American Community Survey 5-Year Estimates, Table DP04 In contrast with the relatively high census -reported rental vacancy rates shown above, CoStar, a commercial real estate database, estimates vacancy rates for multifamily apartments in Port orchard at about 3.5 percent as of mid-2022, as shown below in Figure 27, which shows the stabilized (accounting for new development coming onto the market) vacancy rates in the city over the past decade. This lower vacancy rate reported by the real estate industry may be more representative of the strong demand for apartments in the city. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 21 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Figure 27. Multifamily Rental Vacancy Rate in Port Orchard, 2012-2022. Source: Costar Vacation Housing Census data shows there are zero seasonal and recreational housing units in Port Orchard. Short -Term Rentals Short-term rentals, also known as vacation rentals, are considered stays of 30 days or less in a residential dwelling. Looking at listings on Airbnb, VRBO, and Vacasa for the December to January 2022/2023 holiday season, there are 15 short-term rentals in Port Orchard. Most of the short-term rentals are in the downtown area, with proximity to the water and Bay Street. Rentals range from a private room up to five bedrooms. The average cost per night for a private room or one bedroom is $114, $194 per night for two- and three -bedroom listings, and $292 per night for four- and five -bedroom listings. City staff report that many short-term rentals are not paying the required lodging tax. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 22 Affordable Housing Affordable housing is 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). Affordable housing properties may be reserved for people meeting other criteria such as families with children, seniors, people with physical or intellectual disabilities, or people with substance abuse disorders. Affordable housing is important to support community members who face barriers in the private housing market, especially those who are on the edge of or transitioning out of homelessness. This type housing is subsidized and mostly operated by government or non- profit organizations. 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. In and near Port Orchard, Housing Kitsap's portfolio includes 375 units across six properties and 109 "Section 8" vouchers (which pays rents for voucher recipients). In addition, Housing Kitsap has a Mutual Self -Help Housing program where homeowners put in sweat equity to build their home and purchase it at an affordable price point. Housing Kitsap also has a Home Rehabilitation Program that assists with home repairs. According to Housing Kitsap staff, approximately 500 homes in Port Orchard have benefited from the two programs since the 1970's. Under Port Orchard's multifamily tax exemption program, 20 privately -owned units are being rented at affordable rates. See more information under Section 5. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 23 Property Housing Kitsap Rental Housing Heritage Apartments R3 56 Multifamily Section 8; families or people with disabilities Orchard Bluff R2 89 Mobile Home Park Low income & head of household 55 or older Port Orchard Vista R4 42 Multifamily (senior) Low income & 62 or older Conifer Woods Apartments (outside city limits) UGA 72 Multifamily Low income Viewmont East Apartments (outside city limits) UGA 76 Multifamily Section 8; families or people with disabilities Madrona Manor (outside city limits) UGA 40 Multifamily (senior) Low income & head of household 55 or older Housing Kitsap Homeownership Mutual Self -Help Housing Sherman Ridge R2 27 Single-family 80% AMI or less Riverstone R3 & R2 39 Single-family 80% AMI or less Private Rental Housing The Overlook R3 8 affordable (39 total) Multifamily MFTE Type 1 (12 year affordability) Plisko Apartments CMU 12 affordable (58 total) Multifamily MFTE Type I (12 year affordability) Figure 28. Port Orchard affordable housing inventory (Housing Kitsap and City of Port Orchard) Figure 29. Housing Kitsap long-term affordable housing sites in Port Orchard (excludes MFTE sites) Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 24 Public Land Surplus public land is sometimes used for affordable housing. State law enacted in 2018 (RCW 39.33.015) allows local governments to transfer, lease, or dispose of surplus property at low or no cost to developers for affordable housing projects. Port Orchard has a large number of City - owned lands, and most are actively used for utility purposes or other public works, parks, and administrative functions. Some lands are also in greenbelts, wetlands, or ravines which are undevelopable. Discussion with City staff yielded the following sites to consider in the Housing Action Plan. Other public lands (such as those owned by Kitsap County, the Port of Bremerton, and other agencies) could be reviewed in the future. Map Key 1 Parcel # 342401-4-016-2001 & Zoning CMU Area 1.0 acres Considerations Surplus property from the construction of the 342401-4-015-2002 roundabout at Tremont/Pottery. Considerable size and has appropriate zoning for affordable housing. 2 252401-3-045-2009 R4 1.7 acres Sloped site near the high school on Mitchell Avenue. Considerable size, ideally located, and has appropriate zoning for affordable housing. 3 4062-003-005-0006 R1 0.86 Vacant parcel owned by the water utility; it would need to be purchased from the enterprise fund. Considerable size and good location. Would likely need to be rezoned. 4 4650-009-006-0208 DMU 0.25 acres 640 Bay Street (see Project Spotlights). This site is planned for a housing project by a private developer. 5 4538-009-007-0007 UGA 0.21 acres Vacant property just outside city limits in the Annapolis neighborhood. 6 4537-014-001-0004 UGA 0.15 acres Vacant property just outside city limits in the Annapolis neighborhood. Figure 30. Table of surplus or vacant public land to consider for housing opportunities. Source: City of Port Orchard Port Orchard Housing Action Plan - Existing Conditions and Housing Needs Analysis Report Page 25 Figure 31. Map of surplus or vacant public land to consider for housing opportunities. Source: City of Port Orchard Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 26 Project Spotlights This section provides detailed case studies of recent and ongoing housing developments in Port Orchard. It includes a cross-section of housing types. The spotlights are intended to provide insights on housing cost and design trends. Valley Quadplex This a recently completed fourplex development at the corner of Mitchell Avenue and Dwight Street. " The site is zoned R3 and is within the Downtown Countywide Center. The site is on a block with single-family homes, to the south is a small multifamily complex, and to the east is South Kitsap High School. Each of the four units is 3 bed/2.5 bath with about 1,450 square feet of living area. The lot is 8,276 square feet lot (0.19 acres), so the density is 21 units per acre. The building is three -stories and steps down a slope, with one -car garages located in a daylight basement in the rear of each unit. The site incorporates a rear shared access drive connected to a private alley. Residential open space is provided on the east and south sides of the building. Staff report the development fits the neighborhood well and it is a good example of infill. The developer suggested more friendly paperwork and inspection scheduling (the City just recently launched online-- scheduling and permitting). The fourplex was as intimidating and laborious to permit as an apartment building, possibly due to the required environmental review and the use of the commercial building code (as opposed to the residential building code). The developer was interested in but unable to participate in the multifamily tax exemption (MFTE) program due to the local minimum threshold of 10 dwelling units (under updated state law a four -unit development is the minimum). The land cost was about $93,000 and the total construction cost (before sales tax) was about $200 per square foot. The units are each renting for $2,300 to $2,500 per month. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 27 Haven Apartments This is a nearly complete garden apartment development in southern Port Orchard located off Pottery Avenue and within the Ruby Creek subarea. The site is zoned Commercial Mixed Use and is within the Ruby Creek Overlay District. This is a semi -rural area quickly transitioning into a low -density neighborhood center. Adjacent to the site to the south is Ruby Creek and a single-family property, to the west is additional vacant land where the Haven Townhome project is planned by the same developer, to the north is a church and car dealership, and to the east is a wooded wetland. Only about half of the 18-acre parcel is developable due to the wetland and stream buffers; after subtracting those, the development's net density is about 24 units per acre. The development has 216 total units spread across 10 three-story buildings. About 36% of units are 1-bedrooms, 52% are 2-bedrooms, and 11 % are 3- bedrooms. An average of 1.65 parking spaces per unit are provided. This development offers more amenities than typical multifamily projects in Port Orchard. With units renting slightly above $2.00 per square foot (e.g. at least $2,100/month for a two -bedroom unit), the project will serve the mid -high end of the Port Orchard rental market. This is partly due to the developer's intentional positioning and the site amenities, including a 6,000 square feet clubhouse with a swimming pool. Higher rents are also partly due to the high construction costs that need to be recouped. Hard construction costs, not including land, were about $170 per square foot. Impact fees totaled about $28,000 per unit ($6 million total). Through a development agreement, the developer is receiving sewer general facility fee credits to help offset the cost of a new $2.5 million sewer lift station constructed at the developer's expense. The developer is also receiving transportation and park impact fee credits for constructed improvements constructed and land dedication. r_ BEN - _ E Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 28 McCormick Village This is a planned mixed -use subdivision that is a small part of the large master planned McCormick Woods area, which has been under development since the 1980's and was annexed to Port Orchard in 2009. This particular site is about 23 acres and located on the north side of Clifton Road. The area is currently forested vacant land, with a large church to the southwest of the site, single-family subdivisions planned or under construction in the vicinity, and new public schools planned just west of the site. The site has a mix of zoning: Residential 3, Neighborhood Mixed Use, and Commercial Mixed Use. It also has a special McCormick Village Overlay (MVOD) with subtle changes to the residential lot standards. The City developed the MVOD regulations to implement the McCormick Village Subarea Plan and worked closely with the landowner. The overlay provides some nuances such as additional allowed building types, revised minimum/maximum setbacks, and a prohibition on parking in the front of lots. The residential preliminary plat shows up to 153 lots and all lots having alley access. A variety of housing types are illustrated, with the majority being 30-feet wide lots with detached homes and above -garage accessory dwelling units (uniquely, all such units will start as rentals). One version of the plat also shows paseo houses (similar to cottage housing, but with less common open space) and two-story forecourt apartment buildings (with 6-8 units per site). The total unit count is not yet known, but based on one drawing provided to the City, the site could have up to 320 units (including ADU's). The gross density (including ADU's and excluding the commercial area) would be about 20 units per acre. The separately permitted commercial village is at the northeast corner of the site. This would be Port Orchard's first retail development west of State Route 16. Preliminary plans show pads for about 10 small commercial buildings served by surface parking and woonerf-style drive aisles. 1.1.1J__ —Ir ll:i -I f-i1 I'1II �` - I „� °f, Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 29 The Ramsey This is an ongoing mixed -use development in southern Port Orchard located at the northeast corner of Sedgwick Road and Ramsey Road. It is zoned Commercial Mixed Use, located within the Sedgwick-Bethel SR-16 center, and within the soon -to -be master planned Bethel Sedgwick Countywide Center. This is a semi -developed suburban area characterized by a mixture of small and large auto -oriented commercial uses. This site is located uphill from the area's major intersection. Adjacent to the site to the east is a gas station, to the south are single-family homes and a home -based auto detailing shop, to the west is a fitness center, and to the north is vacant forested land. The development is occurring on a relatively compact and sloping 2.5-acre site. It consists of three buildings, one of which is small drive -through coffee stand. The other two buildings are three stories and, combined, contain commercial space and 99 apartments on the upper floors. The gross density is about 40 units per acre. The development is one of the few participating in the multifamily tax exemption (MFTE) program since the program was started in 2016. The developer is currently applying for a "Type 3" 8-year property tax exemption in exchange for incorporating structured parking and a shopfront design (commercial retail space). This is the first large private development in Port Orchard to incorporate structured parking. The project is located far from Downtown Port Orchard, and yet the land value and market economics appear to be enabling this unconventional hybrid between suburban and urban land use intensity. While it is was assisted by the MFTE program, this project may be representative of an early transition in the Port Orchard real estate market where more dense, mixed -use development is becoming economically viable. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 30 Downtown Mixed Use Projects Several residential -commercial mixed -use projects have been proposed in Downtown Port Orchard in recent years. None have broken ground as of this writing, though one is now permitted. Conceptual designs show urban features like structured parking, storefronts, rooftop open space, and being at least four stories in height. This swell may be signaling a shift in the local real estate economy where compact infill and redevelopment is on the verge of being more feasible due to a combination of land values and market rents. Project Description Bay Street Apartments (429 Bay Street) This project has been permitted on the site of the old Lighthouse Restaurant and will develop 39 units and 500 square feet of commercial on four levels. It is located on a 1.35 acre waterfront site. The project will have a single level of structured parking on the ground floor. The I developer requested a reduction of 66 parking spaces to 41 spaces. The residential density is 29 units per acre. Heronsview (100 Bethel Avenue) The conceptual plans have a total of 106 units on four - levels; 55% of units are studios, 23% are 1-bedrooms, 15% are 2-bedrooms, and 7% are live/work units. Proposed on - a 1.08 acre site, the development's residential density would be 98 units per acre. About 6,000 square feet of commercial space are shown in conceptual drawings. At least 143 parking spaces would be required if no on - street parking is available. Parking would be provided in a two -level garage, with the roof used as a residential open space. 1626-1636 Bay Street This concept includes 71 units on five levels, including two levels of structured parking. Proposed on a 0.51 acre site, the residential density would be 139 units per acre. The site and development concept is currently for sale for about $6 million. q 640 Bay Street This a City -owned property that was intended to be sold f to a private developer, though the project has been on u _ --� hold for at least four years. This early concept proposed r to include 44 units on five levels and about 12,000 square 'rm 1 feet of commercial space. Parking is proposed off -site. It rm 8 1 would include a rooftop garden and a vacation of Fredrick Street which would be developed as a landscaped public space and hill climb. The potential residential density is 159 units per acre. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 31 Section 3 - Cost Trends Housing Cost Trends Housing costs in Port Orchard have been increasing steadily over the last decade, for both renters and homeowners, as shown in Figure 32 below. As of mid-2022, Zillow reports an average home value of $511,600 and an average rent of $1,638 per unit in the city, a yearly increase of five percent for ownership units and nine percent for rentals over the past decade. Notably, both ownership and rental housing costs have increased more rapidly since the onset of the COVID-19 pandemic, a pattern seen across the greater Puget Sound region, and particularly in smaller and moderate -sized jurisdictions when compared with larger cities such as Seattle. $600,000 $500,000 $400,000 a) co $300,000 0 $200,000 $100,000 Average Home Value Average Multifamilv Rent Per Unit 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Figure 32. Housing Costs in Port Orchard, 2012-2022. Source: Zillow, Costar. $1,800 $1,600 $1,400 }, .E $1,200 a� o_ $1,000 of $800 co $600 $400 75 $200 $0 Figure 33 shows the change in Port Orchard's housing prices compared with the change in incomes from 2010-2020. After a drop in home prices between 2010 and 2012, incomes and housing prices increased similarly between 2012 and 2015, after which home prices began to increase significantly faster than incomes. Rental prices, which had been stable from 2013- 2017, also began a steep increase in 2017, also outpacing incomes. The gap has continued to worsen over the past few years, with a 28 percent increase in rents and 56 percent increase in home values from 2015-2020, compared to only a 15 percent increase in incomes over the same 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. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 32 70% 60% 50% 40°i° ✓ 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 33. Change in Home Prices, Rents, and Incomes in Port Orchard, 2010-2020. Source: Zillow, American Community Survey 2020 5-Year Estimates, Table S2503, DP04, Leland Consulting Group Figure 34 shows the relationship between what the typical Port Orchard household earns in a year and the amount they would need to earn to afford the typical home in the city, based on 2020 census and home price data. The income needed to afford the median home in the city is about $50,585 more than the median household currently earns, or to put it another way, the typical Port Orchard household could afford a home worth about $303,012, but the typical home in the city in 2020 was worth 1.5 times as much, $468,702. $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $468,702 $303,012 $122,304 $71,719 M 0 1 1 Median Household Income Needed To Median Sales Price Maximum Home Price Income Afford Median Home Affordable to Median Household Figure 34. Ownership Housing Affordability in Port Orchard. Source: Zillow, Freddie Mac, 2020 American Community Survey 5-Year Estimates, Leland Consulting Group Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 33 A housing affordability chart illustrating home prices which would be affordable to a variety of income levels is shown below in Figure 35. Port Orchard's median incomes and sales prices are both shown. This data illustrates the degree to which ownership housing has become out of reach for many Port Orchard residents, even those earning more than the city's median household income. $900 ■ Household Income ($1,000s) ■ House Price ($1,000s) $800 $700 $600 Median Sales Price ( 468) $500 $400 $300 Median Household $200 Income ($71) $192 $96 $100 $- A household earning $100,000 could not afford the median Port Orchard sales price of $468,000 even though they are earning nearly $30,000 more than the median household income. $383 $287 $150 ■ $575 $766 Figure 35. Housing Prices Affordable to Various Incomes with Port Orchard Median Income and Sales Price, 2021. Source: Zillow, Freddie Mac, 2020 American Community Survey 5-Year Estimates, Leland Consulting Group Construction Costs The cost of construction for all housing types has been increasing for decades, although the past few years have seen unprecedented increases. These costs have a major impact on development feasibility. Higher development costs ultimately drive up the sales price of finished housing and can lead to reduced housing production when the market cannot support those higher housing prices. The following chart provides construction price indexes' for multifamily housing units under construction, single-family houses sold, and for single-family houses under construction. Recent data from the U.S. Census Bureau shows construction costs went up by 17.5% year -over -year from 2020 to 2021, the largest spike in this data from year to year since 1970. Costs in 2021 were also more than 23% higher than pre -pandemic 2019. Preliminary data for 2022 indicates an even greater jump in construction costs, largely due to supply chain issues, inflation, and labor shortages. 5 The houses sold index incorporates the value of the land and is available quarterly at the national level and annually by region. The indexes for houses under construction are available monthly at the national level. The indexes are based on data from the Survey of Construction (SOC). Port Orchard Housing Action Plan - Existing Conditions and Housing Needs Analysis Report Page 34 reo, MFR 180 SFR Under Construction SFR Sold (West) 160 140 120 100 - 80 LO % 00 ON O N co LO % 00 ON O N O O O O O - - - - - - N N N O O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N N N Figure 36. Construction Price Indexes. Source: U.S. Census Bureau Construction Price Indexes Developers interviewed by the project team in summer 2022 indicated concerns over construction costs in the region. They described as many as ten material cost adjustments per year, compared to one to two price changes per year in the past. Developers generally agreed that lumber prices were likely to begin decreasing and stabilize in the coming years, though they expressed less optimism about short-term decreases in other material costs. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 35 Impact Fees Impact fees are a one-time fee required by local governments for new development to help pay for a portion of the expected costs of providing increased public services. The topic arose in stakeholder interviews and so an analysis compared Port Orchard's impact fees to other Kitsap County jurisdictions. Determining impact fee by building type (housing type) also provides information about how the fees are affecting the variety of housing being built. The table below a table shows total impact fees (combining fees for roads, parks, and schools) by housing type. Roads impact fee schedules typically have the most detailed housing types and thus was used as the basis for housing type comparison. The breakdown of impact fees by type of impact fee can be seen in Appendix A. Port Orchard has a fee for all three categories, which is not the case for some of the other jurisdictions. Bremerton currently does not collect impact fees but may start collecting them in the near future. The comparison finds that Port Orchard does have some of the highest impact fees in Kitsap County, but these fees may be closer to the median when making wider regional comparisons. For example, Sammamish impact fees total at least $14,000 per unit (as of 2019). Judging by the large volume of permitted developments in Port Orchard, the fees are having little negative effect on total development. However, the fees may be a minor factor for the variety of housing products being produced. Duplexes, triplexes, fourplexes, townhouses, and ADU's have notably high fees for the lower resource impacts and land area they require compared to single-family homes. This may partially be because the school and park impact fees do not provide a high level of distinction among building types due to those fees being based more on persons per household. Family Duplex Triplex & Fourplex Townhouse Multifamily floorsSingle- 1-2 Multifamily floors Multifamily ADU Port $10,856.52 $9,156.34 $6,835.28 — $9,156.34 — $6,820.28 $6,189.29 $5,768.63 $4,677.97 - Orchard $9 096.34 10,347.34 $6,150.28 Kitsap $6,428.60 $3,496.75 $3,496.75 $3,766.74 $3,496.75 $2,956.77 $2,821.78 $3,766.74 County Bremerton $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Poulsbo $3,214.66 $2,598.81 $2,598.81 $2,598.81 $2,598.81 $2,598.81 $2,598.81 $1,759.00 Bainbridge $1,811.82 $1,123.33 $1,123.33 $1,413.22 $1,123.33 $1,123.33 $1,123.33 $1,123.33 Island Gig Harbor $10,887.00 $9,261.00 $9,261.00 $9,261.00 $9,261.00 $9,261.00 $9,261.00 $11,212.00 Fiaure 37. Impact Fees Der Unit by Housina TVDe. Source: Kitsaa Countv and Municipalities of Kitsaa County Some cities exempt ADU's from impact fees since they are not a primary unit and because the fees can be insurmountable for low- and moderate -income homeowners. Also, under RCW 82.02.060, cities may reduce impact fees by up 80% for affordable housing. Under POW 20.182, the City has not adopted any impact fee exemptions or reductions, though the idea is supported by Comprehensive Plan policy HS-6. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 36 Section 4 - Housing and Service Needs This section offers information about the needs for households in the City of Port Orchard. Market Rate Housing The chart below shows projected demand for new housing units through 2044 by income in Port Orchard based on the Kitsap County target of 5,291 new housing units in Port Orchard by 2044.E The allocation of housing units by income is shown using three projection methodologies. The Washington State Department of Commerce (Commerce) has recently released a draft calculator which uses two methodologies to calculate future housing needs by income by county, city, and UGA. Method "A" shown below allocates future housing needs by projected household income (as a share of AMI) evenly across all municipalities in Kitsap County. This shows a particularly high 2044 need of over 1,400 units affordable to the lowest - income households earning less than 30% AMI - which would need to be provided by subsidized affordable units. Commerce Method "B" allocates housing across all jurisdictions in the County after taking into account their existing housing unit breakdown by income level. Because Port Orchard already provides some subsidized units (and a larger share than some other Kitsap County municipalities), this method shows a need for fewer units for households earning under 30 percent AMI and between 30 and 50 percent AMI, but allocates more units for higher -income households earning more than 120 percent AMI. The third methodology shown is Leland Consulting Group's model which allocates future housing units based on Port Orchard's current income breakdown. This methodology shows a strong housing need for the lowest -income residents of the City but also reflects the need for "workforce" housing for the significant share of Port Orchard's population earning between 50 and 100 percent of the AMI. Overall, these three methodologies show that the largest housing needs by income in Port Orchard in the next two decades will be for the lowest -income households, which can only be met through regulated affordable (i.e. subsidized) housing, to a lesser degree for "workforce" housing for residents earning less than 100% AMI, which can be provided through a variety of channels including subsidized units, vouchers, other incentive programs such as MFTE, and filtering of existing units as new housing stock is built. Finally, there will remain a demand for between 1,200 and 1,800 market rate housing units targeting households earning more than 120 percent AMI over the next 20 years. Although the Commerce methodologies are still in draft form, all three sets of results are presented here to demonstrate the various calculations and considerations underlying future housing needs and targets regionally. The Kitsap County Regional Coordinating Council will decide on a final target number of new units by income level for all jurisdictions in the County in 2023, and that final target breakdown will be integrated into the 2024-2044 Port Orchard Comprehensive Plan. 6 This housing unit target and the Kitsap County population target for Port Orchard (10,500 new residents by 2044) would yield an average household size of 1.98 people per household. This is significantly less than the current Port Orchard household size of 2.44 people per household. This discrepancy may need to be addressed by Commerce. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 37 2,000 1,800 1,600 It 0 1,400 N T 1,200 0 1,000 Z 800 600 z 400 200 IN d 0-30 30-50 50-80 80-100 % AMI ■ Commerce Method A ■ Commerce Method B 100-120 LCG Method 120+ Figure 38. Housing Demand Projections for Port Orchard, 2022-2044 Source: Washington Department of Commerce Draft Projected Housing Needs Methodologies, Leland Consulting Group Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 38 Low -Income and Cost -Burdened Households HUD sets income limits that determine eligibility for assisted housing programs.' The 2022 Area Median Income (AMI) for the Bremerton -Silverdale Metropolitan Statistical Area (MSA) is $102,500. The following table outlines the 2022 Bremerton -Silverdale MSA HUD income limits for low, very low, and extremely low-income households making 80 percent, 50 percent, and 30 percent of the Area Median Income (AMI), respectively. Household Extremely Low (30%) 21,600 24,700 27,800 1 30,850 33,350 37,190 41,910 46,630 Very Low Income (50%) 36,050 41,200 46,350 51,450 55,600 59,700 63,800 67,950 Low Income (80%) 57,650 65,850 74,100 82,300 88,900 95,500 102,100 108,650 Figure 39. HUD FY20221ncome Limits ($), Bremerton -Silverdale, WA MSA. Source: HUD In addition to income, HUD uses a measurement of "cost burden" to further determine which subset of a community's residents are most in need of housing support or most at risk of displacement or housing hardship. Figure 40 shows a breakdown of Port Orchard's households by tenure and cost burden status. Overall, about 35 percent of Port Orchard's households are considered cost -burdened. Half of all renter -occupied households are considered cost -burdened, while one quarter of owner -occupied households are considered cost -burdened. As is the case nationwide, renters are significantly more at risk of economic hardship and displacement than homeowners. With rental rates increasing dramatically in recent years and income growth failing to keep up, it appears that renters are suffering the consequences in terms of cost burden. There is a clear need for more rental housing that is affordable to all income levels. 7 Including the Public Housing, Section 8 project -based, Section 8 Housing Choice Voucher, Section 202 housing for the elderly, and Section 811 housing for persons with disabilities programs HUD develops income limits based on median family income estimates and fair market rent area definitions. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 39 All Households ®� 65% Renter occupied 50% Owner Occupied 75% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ■ Severely Cost Burdened ■ Cost Burdened Not Cost Burdened Figure 40. Household Tenure by Cost Burden in the City of Port Orchard, 2020. Source: HUD CHAS 2015- 2019. The following chart shows cost burden status by household income level for households earning less than the area median income (AMI). The lowest -income households earning 30 percent AMI or less have by far the highest cost burden, with 615 of the 715 households in this income bracket spending more than 30 percent of their income on housing costs, and 495 households, or 70 percent of households in the income bracket, spending more than half their income on housing costs. Similarly, 75 percent of households earning between 30 and 50 percent of the AMI also spend more than a third of their income on housing costs. However, there are still a substantial number of households earning between 30 and 80 percent AMI which are also housing cost -burdened, as well as a quarter of households earning between 80 and 100 percent AMI. This data shows a need for subsidized affordable housing at various income levels, but particularly for households earning less than 50 percent AMI. 80-100% AM I IL 60 465 50-80% AMI 465 520 30-50% AMI 130 < 30% AMI • JO100 0 100 200 300 400 500 600 700 800 900 1000 ■ Severely Cost Burdened ■ Cost Burdened Not Cost Burdened Figure 41. Cost Burden Status by Household Income Level in Port Orchard. Source: HUD CHAS 2015-2019. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 40 Special Needs Housing Figure 42 shows the number of households in Port Orchard with a disabled resident by disability status and income. Most households with a disabled resident earn more than 80 percent of AMI, though particularly for residents with an ambulatory limitation (generally meaning they are unable to walk), there is a significant number of households earning less than 30 percent AMI. In addition to ambulatory limitations, hearing or vision impairments are the most common disability reported in Port Orchard households. Figure 42. Households by Disability Status and Income in Port Orchard. Source: HUD CHAS 2015-2019 People Facing Homelessness 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. This was an 8 percent decrease from 20208 though a 7 percent increase from the previous four-year average. 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.9 A 2020 report by the U.S. Government Accountability Office finds that 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. This formula is considered at a national level but may be helpful context for the current trend in local rent increases. 8 The count of unsheltered individuals was not completed in 2021 due to the COVID-19 pandemic. 9 Kitsap County Point In Time Count. https://www.kitsapgov.com/hs/Pages/HH-Point-in-Time.aspxx Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 41 Transit Kitsap Transit provides public bus and passenger ferry service in Port Orchard. There are six fixed -route bus lines operating within the central and eastern part of the city, and two ferry docks which have service to the Bremerton ferry terminal (where riders can catch auto ferries or fast passenger ferries to Seattle). The in -town fixed -route bus lines generally run at frequencies of 30 to 60 minutes. Buses stop running in the early evening. On Saturdays, buses only run a few hours between 10am and around 5pm. There is no regular bus service on Sundays. Geographic coverage of transit in central/eastern Port Orchard is moderately good, serving many of the main arterial areas, though it is oriented north -south with few east -west connections. The western Port Orchard area is a served by an on -demand, weekday -only service called SK Ride which connects residents to some regular bus routes. Other services include worker/driver buses for Navy facility commuters, door-to-door Access buses for seniors and people with disabilities (runs 8am to 4pm on weekdays and Sundays), and vanpools/carpools. Overall, the low level of fixed -route service is generally impractical to most people for commuting, after -work entertainment and shopping, running errands, or getting to appointments. It is particularly unfavorable to transit -reliant people who need to access social and human services (including the lack of bus service between Port Orchard and Bremerton). Low fixed -route transit service does little to help housing developments justify reduced amounts of parking. It also limits the ability of residents to drive less and spend less on transportation. Figure 43. Kitsap Transit fixed -route bus lines in the Port Orchard area. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 42 Section 5 - Housing Funding and Monetary Tools Existing Funding Port Orchard does not have currently any funding streams directly funding affordable housing development or preservation. In January 2022, Kitsap County imposed a 0.1 % affordable housing sales tax as allowed under RCW 82.14.530. The revenue must be used for constructing or maintaining affordable housing. It is expected to generate about $5 million per year.10 This sales tax option would have been available to Port Orchard (generating about $850,000 per year per .1 %, based on 2021 revenue), but state law stipulates that after a county adopts the tax cities in the county may no longer implement their own tax.11 Poulsbo and Bainbridge Island implemented affordable housing sales taxes before the county did and so their taxes remain effective in addition the county's. Other Funding Options The Municipal Research Service Center provides a list of other funding sources for Washington cities and affordable housing developers. These include: • Property tax levy of up to $0.50 per $1,000 assessed valuation for up to 10 years to fund very low-income housing (RCW 84.52.105) • Real estate excise tax of up to 0.25% to fund affordable housing through 2026 (RCW 82.46.035) • Mandatory inclusionary zoning requirements that require residential developments to either provide affordable housing on -site or to pay into a housing fund for city governments to fund housing elsewhere (generally this tool must be paired with large upzones to avoid regulatory takings claims) • Lodging taxes, which may be used to fund a variety of government programs (as noted under the short-term rental discussion, Port Orchard already has a lodging tax) • Loans and grants from the Washington State Housing Trust Fund (administered by the Washington State Department of Commerce) • State law under RCW 43.185C.080 allows cities to receive grants from the Washington homeless housing account. A prerequisite is adoption of a local homeless housing plan or adopting by reference a county homeless housing plan that has a specific strategy for the city. Grant value is tied to the real estate document recording fees generated within the local jurisdiction. • Low-income housing tax credits which investors in housing projects can apply to (administered by the Washington State Housing Finance Commission) 10 "Commissioners vote to impose 1 /10th of 1 % sales tax for affordable housing." January 2022. Kitsap Daily News. https://www.kitsapdailynews.com/news/commissioners-vote-to-impose-1-10th-of-1-sales-tax-for-affordable- housin 11 Funding Local Affordable Housing Efforts. August 2022. Municipal Research Service Center. https://mrsc.org/Home/Stay-Informed/MRSC-Insight/August-2022/Options-for-Funding-Local-Affordable-Housing- Efforaspx Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 43 Multifamily Tax Exemption Overview The multifamily tax exemption (MFTE) is a program authorized by the state, starting in 1995 (RCW 84.14). Cities can grant one or more of the following programs for new buildings or existing buildings: • 8-year exemption for any type of multifamily development • 12-year exemption for multifamily developments that reserve at least 20 percent of units for low- and moderate -income households • A 20-year exemption for multifamily developments that reserve at least 25 percent of units for sale as permanently affordable to households earning 80% AMI or less, and the development must be sponsored by a non-profit or governmental entity (this option was added by the Legislature in 202112). Port Orchard meets the threshold of 15,000 population to unlock this option. 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 other 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. MFTE programs require ongoing monitoring, especially for any buildings with affordable units, to ensure that rental rates and resident incomes are meeting the criteria. A 2019 statewide audit found that local MFTE programs are frequently used to improve the financial performance of private developments but it is unclear if they result in a net increase in housing production. For 2018 the audit found average annual local and state property tax savings of $10,651 per affordable unit and $2,096 per market -rate unit, with wide variations depending on the location, land value, and local property tax rates. Seattle has the most MFTE units in the state and likely skews the average tax savings high. Participating properties in Bremerton see average annual property tax savings of $6,123 per affordable unit $1,413 per market -rate unit (data was not available for Port Orchard). Port Orchard MFTE Review Port Orchard has had an MFTE program in place since 2016, which is codified under Chapter 3.48 POMC. It goes beyond the basic framework of state law and provides three types of exemptions. The "Type 1" program is a 12-year tax exemption available to properties zoned for multifamily or mixed -use development within one-half mile of a transit route or ferry terminal. At least 20 percent of units must be rented at least 10 percent below fair market rent to tenants with the following incomes: 12 "Overview of 2021 Changes to the Multifamily Housing Tax Exemption Program." Washington State Department of Commerce. htttps://deptofcommerce.box.com/shared/static/7k5p88yv4l m8ot882abtzafwzlofkf05.pdf Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 44 • At or below 40 percent of median family income, for housing units in congregate residences or small efficiency dwelling units • At or below 65 percent of median family income for one -bedroom units • At or below 75 percent of median family income for two -bedroom units • At or below 80 percent of median family income for three -bedroom and larger units. Type I Tax Exemption Multifamily -zoned Parcels in Designated Centers and Other Properties City Limits Applicable Properties Figure 44. Parcels eligible for the Type 1 MFTE program The "Type 2" program is an 8-year tax exemption available to properties within local centers of importance (as identified in the Comprehensive Plan) and which are encouraged to redevelop and may require rezoning. Properties must meet at least one of these criteria: • Have abandoned buildings (vacant or unused for more than two years) • Underutilized buildings (50 percent or more vacancy for more than two years) • An assessed building value to land ratio of two -to -one or more. Port Orchard Housing Action Plan - Existing Conditions and Housing Needs Analysis Report Page 45 7� Type 2 Tax Exemption Redevelopment i J a �h f- Li .i lfoi Uocuma 11. t„S:Itcr I.tt ALalaruriP. YWL- acrr.,'A /.L2LJe3mntl F' 4 ` r Figure 5. Parcels cels eligible for the Type 2 MFTE program The "Type 3" program is an 8-year exemption available to properties within local centers of importance (as identified in the Comprehensive Plan) and zoned for multifamily or mixed -use development. Developments must meet one of these standards: 1. At least 50 percent of required parking must be structured and achieve at least 50 units per net developable acre 2. Construct mixed -use shopfront building(s) containing non-residential square footage equal to at least 40 percent of all building footprints 3. Purchase one additional story of building height for one or more buildings through the city's transfer of development rights program d Ltd r T•4T4 -T �I rI) r Fr I i Type 3 Tax Exemption Multifamily -Zoned Properties in Centers 1771 City Limits Uoc-t- U:tGISK, nmtair TYW3T.Pba .,e Map72=..d Figure 46. Parcels eligible for the Type 3 MFTE program Port Orchard Housing Action Plan - Existing Conditions and Housing Needs Analysis Report Page 46 The following table shows how many developments and dwelling units are utilizing Port Orchard's MFTE program since inception. Numbers in parenthesis are MFTE applications currently in progress (as of December 2022). Figure 47. MFTE program statistics. Source: City of Port Orchard Observations: • Port Orchard's MFTE program is structured differently than most Washington cities • In the Type 3 program, options for combining required features could be clarified, as was done with the one participating project which used less structured parking and shopfront design than required individually but combined use of both features to qualify. • In the Type 1 program, the minimum development size of 10 units reduces the number of small projects that can participate. State law sets the minimum development size at four units. • In the Type 1 program, residents have their incomes verified only in order to determine what size of unit they can occupy. In other words, individualized rent caps are set for physical units and not customized for each household's size and characteristics. This is a different approach than most cities, but appears to fit within the state law framework. • In the Type 1 program, the depth of affordability (10% below market rate) may be imbalanced with the property tax savings. • Updates to RCW 84.14 allow median family income to now be based on the city or metropolitan statistical area of the project (rather than just the county). As noted in Section 3, the past few years have seen unprecedented increases in construction costs which have a major impact on development feasibility. There is interest among City officials and stakeholders to revisit the MFTE program and make adjustments to improve economic feasibility and administration. The City has the legal option to seek help with monitoring the MFTE program and freeing up staff resources. Housing Kitsap, for example, already has systems in place to administer income -based housing. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 47 Section 6 - Housing Policies Comprehensive Plan Goals and Policies This section focuses on a handful of key policies in the Housing Element. Full comments are available in Appendix B. Policy HS-2 Support the development of a variety of housing The City has a good foundation of supportive types, including apartments, townhomes, mixed- zoning standards to support a variety of housing use (residential and other uses) and live -work types, though as noted in Section 6 some development, small -lot and zero lot line single- improvements could be made or more incentives family homes, and manufactured homes, as well added. The MVOD zone is an example of as traditional single-family homes, through innovative planning. Financial assistance largely is innovative planning, efficient and effective implemented through the MFTE program, though administration of land and building codes, and, other options may need to be explored to support where available, applicable financial assistance. the low-income population. HS-6 Consider reducing permitting fees for No waivers/reductions for impact fees and general development which provide affordable housing as facilities charges are in place. defined by the Washington Administrative Code (WAC) section 200-120- 020. HS-9 Implement minimum residential density The City does not have any minimum density requirements in centers of local importance in standards in any zone. order to increase land and infrastructure efficiency. HS-14 Implement zoning and development regulations This type of development does not appear to be which encourage infill housing on empty and happening in large numbers, with most housing redevelopable parcels. being built on greenfields on the edge of the city. More incentives for infill and redevelopment in local centers should be explored in the HAP. Port Orchard Housing Action Plan - Existing Conditions and Housing Needs Analysis Report Page 48 Development Regulations Port Orchard's zoning standards are codified under Title 20 POMC and primarily exist in Chapters 20.30 through 20.58. The key standards reviewed here are the permitted land uses and dimensional standards. Other standards provide supplemental residential use and design standards for most housing types. Multifamily design standards are located under Chapter 20.127 POMC. In most cities, this consists of a simple list or table organized by zone. In Port Orchard, understanding the permitted uses is complex because there are two permission standards: One code section describes "building types", and the other describes "residential uses", and these are located in separate chapters. The key development regulations on housing are summarized in the tables below. Following the tables is a set of observations. Residential Zones: Allowed Residential Development In the first table, P means permitted and a blank cell means the building type is not permitted in the zone. Note: The R5 zone is not currently mapped, and so was not evaluated closely. P Detached House P P P P Backyard Cottage P P P P Cottage Court P P P P Duplex: Side -by -Side P P P Duplex: Back -to -Back P P P Attached House P P Fourplex P P P Townhouse P P P P Apartment P P P Live -Work Manufactured or Mobile Home Park Accessory Building P P P P P P Figure 48. Excerpt of Port Orchard Municipal Code table 20.32.015 Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 49 In the second table are selected permitted uses in residential zones. These are reorganized from the actual code and have subheadings added. P means permitted, C means conditionally permitted (subject to extra review and public comment), and a blank cell means the housing type is not permitted in the zone. Note: The R5 zone is not currently mapped, and so was not evaluated closely. Use Types (POMC Residential Zones General Single-family detached (including new manufactured homes) P P P P Two-family P P P Single-family attached (2 units) P P P Single-family attached (3 or 4 units) P P P P P Single-family attached (5 or 6 units) P P P P Multifamily dwellings (3 or 4 units) P P P Multifamily dwellings (5 or more units) P P P Manufactured or Mobile Homes Designated manufactured home, manufactured or mobile home (except for new designated manufactured home) P New designated manufactured home P P P P Manufactured or mobile home park Supportive Housing Indoor emergency housing Indoor emergency shelter Permanent supportive housing C C C C C C Transitional housing C C C C C C Group Lodgings Boarding house C C Congregate living facilities C C C C Lodging house C C C Group home (up to 8 residents), except as follows: P P P P P P Adult family home P P P P All group living (9 or more residents) C C Figure 49. Excerpt of Port Orchard Municipal Code table 20.39.040 Observations: There are several user -friendliness challenges with these standards of Chapter 20.32 and 20.39, particularly as they relate to middle housing: • The R2 zone, the largest by land area, allows a good mix of housing types, though might consider adding "Multifamily dwellings (3 or 4 units)" • Residential development allowances are regulated in at least three code sections, which creates some opportunity for confusion. Residential development allowed by zone are regulated in Chapter 20.32 (Building Types), Chapter 20.34 and 20.35 (Residential Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 50 Districts & Commercial and Mixed -Use Districts, respectively), and Chapter 20.39 (Use Provisions). • Code users must know to look in all applicable locations. For example: o Permissions for "Detached House" building type and "Single-family detached" land use, which have similar meanings to most people, are found in both Chapters 20.32 and 20.39. o Chapter 20.32 describes a "Townhouse" as a single building type but it appears to be buildable under at least six different land uses in Chapter 20.39. This is an effort to limit townhouse complexes to four connected units in lower density zones, but to allow larger six unit townhome clusters in higher density zones. o Chapter 20.32 describes a Fourplex as being either three or four units. Triplex is the term for a three -unit building and should be added, or the term renamed to Triplex/Fourplex. o Chapter 20.32 describes a Cottage Court but it is unclear which type of residential land use that falls under in Chapter 20.39, especially since there are mismatches in which zones the different types of single-family uses are allowed. • The terms "Two-family" and "Single-family attached (2 units)" in Chapter 20.39 should simply be "Duplex" which is a more commonly used term. It is also unnecessary to describe two different types of duplexes in Chapter 20.32 when they are both allowed in the same zones. The building type "Attached House" is another instance of the same use being duplicated. • A single-family triplex/fourplex is intended for potential homeownership with each unit on its own lot, and a multifamily triplex/fourplex is most likely intended for rentals. However, it is unknown why they have different permissions by zone. The same goes for fiveplex and sixplex developments. Ownership and rental housing that has the same land use and appearance should be treated similarly. • The City has no path to permit manufactured housing (also known as factory -built housing). Factory -built housing should be treated the same as site -built housing if it conforms to all applicable zoning and design standards. Residential Zones: Dimensional Standards A blank cell means the standard is not applicable. Note: The R5 zone is not currently mapped, and so was not evaluated closely. StandardsDimensional •• Residential Zones Minimum Lot Size (square feet) Detached House (street vehicle 2,800 access) 6,000 5,000 5,000 4,000 Detached House (alley vehicle access) 51000 3,000 2,400 Cottage Court 1,200 1,200 1,200 Duplex: Side -by -Side 5,000 5,000 5,000 Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 51 StandardsDimensional •• i Residential Zones Duplex: Back -to -Back 5,000 5,000 5,000 Attached House 2,500 2,000 2,500 Fourplex 7,000 7,000 7,000 Townhouse 2,000 800 800 1,000 Apartment 10,000 10,000 10,000 Minimum Site Size (square feet) (POMC 20.32) Cottage Court 22,500 22,500 22,500 22,500 Townhouse 5,000 5,000 5,000 5,000 Minimum lot width (feet) Detached House 50 50 36 40 (street vehicle access) Detached House (alley vehicle access) 50 30 26 40 Cottage Court 20 20 20 20 Duplex: Side -by -Side (street vehicle access) 60 60 60 Duplex: Side -by -Side (alley vehicle access) 40 40 40 Duplex: Back -to -Back 40 40 40 Attached House (street vehicle access) 30 30 30 Attached House (alley vehicle access) 20 20 20 Fourplex 60 60 60 Townhouse (street vehicle access) 30 30 30 30 Townhouse (alley vehicle access) 20 16 16 16 Apartment 80 80 80 Other Lot Standards Maximum hard surface 50% 70 /0 80 /0 80 /0 80 /a ° 75 /o coverage Building Height (feet/stories) Height, maximum 35 35 35 45 55 35 3 stories 3 stories 3 stories 4 stories 5 stories 3 stories Height, Accessory Structure (feet) 24 24 24 24 Density Minimum density (units per acre) Maximum density (units per acre) Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 52 StandardsDimensional •• i Residential Zones Setbacks (Feet) Primary street setback, 10 10 10 10 10 10 minimum Side street setback, minimum 10 10 10 10 10 10 Side interior setback, minimum 5 5 5 5 5 5 Rear setback, minimum 10 10 10 4-10 10 10 Figure 50. Excerpt of Port Orchard Municipal Code 20.34 Observations: • Chapter 20.34 has complex lists of lot area and width standards that differ by zone and by building type, which is summarized in the table above. This is one of the more complicated arrangements of dimensional standards among Washington cities. • However, the actual minimum lot widths, lot sizes, and setbacks and maximum hard surface coverage standards are generally reasonable. Some of the minimum lot widths greater than 50 feet may be worth revisiting for infill opportunities. • There are no minimum density requirements, which disincentives most new development (especially subdivisions) from building anything other than single-family homes. This does not fulfill Comprehensive Plan policies LU-11, HS-9, and HS-16, which call for minimum densities at least in local centers. • The lot size and setback standards are highly specific, providing no flexibility for developers and site planners. One building type must be chosen and stuck with throughout the design process, otherwise choosing or adding a different type seems to require restarting land area needs and design assumptions from scratch. This disincentivizes developing a mix building types in large subdivisions or any type of infill "missing middle" housing. • The minimum "site size" provided only for cottages and townhouses discourages those middle types by providing a layer of complication and limiting the sites that are eligible for middle housing development. • Each building type is listed in Chapter 20.32, where there are lists of dimensional standards (lot width, setback, etc.) that says "set by district" for nearly every standard. However, it does not say where to find this information. Code users must know to navigate to the relevant Chapter 20.34, for example, for Residential Districts. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 53 Commercial and Mixed -Use Zones: Allowed Residential Development In the first table, P means permitted and a blank cell means the building type is not permitted in the zone. Note: The RMU zone is not currently mapped, and so was not evaluated closely. es (POMC 20.32.015) Commercial Building Type ff"�F-BPMU CMU _00------ Detached • -Backyard and Mixed Use Zones DMU GMU CC CH IF Cottage Cottage • 000------ Duplex: Back -to -Back Attached • - -00------ • • - 0000-0--- - • 0000000-0 Shopfront House 0000-00-0 Mixed Use ShopfrontManufactured --000-0-0 or Mobile Home Park Accessory Building 000000000 Figure 51. Excerpt of Port Orchard Municipal Code table 20.32.015 In the second table is selected permitted uses in residential zones. These are reorganized from the actual code and have subheadings added. P means permitted, C means conditionally permitted (subject to extra review and public comment), and a blank cell means the housing type is not permitted in the zone. Note: The RMU zone is not currently mapped, and so was not evaluated closely. (POMC Mixed Commercial and -Use Z64111111ff General Single-family detached (including P P new manufactured homes) Two-family P P P Single-family attached (2 units) P P P Single-family attached (3 or 4 units) P P P P P P P P Single-family attached (5 or 6 units) P P P P P P P P Multifamily dwellings (3 or 4 units) P P P P P P P P Multifamily dwellings (5 or more units) P P P P P P P P Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 54 Manufactured or Mobile Homes Designated manufactured home, manufactured or mobile home (except for new designated manufactured home) New designated manufactured home P P P Manufactured or mobile home park Supportive Housing Indoor emergency housing C C C C C Indoor emergency shelter C C C C C Permanent supportive housing C C C C C C C C Transitional housing C C C C C C C C Group Lodgings Boarding house C C P Congregate living facilities C C P Lodging house C C P Group home (up to 8 residents), except as follows: P P Adult family home P P All group living (9 or more residents) P C P P C P Figure 52. Excerpt of Port Orchard Municipal Code table 20.39.040 Commercial and Mixed -Use Zones: Dimensional Standards A blank cell means the standard is not applicable. Dimensional Standards (POMC 20.35) Commercial and Mixed -Use Zones Measure RMU I NMU BPMU CMU I DMU GMU CC CH IF Minimum Lot Size (square feet) Detached House (street vehicle Detached House (alley vehicle �� ��� Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 55 StandardsDimensional •O Commercial and Mixed -Use Zones Shopfront House 6,000 7,000 6,000 5,000 None 5,000 5,000 Mixed Use Shopfront 10,000 5,000 None None 5,000 None Minimum Site Size (square feet) (POMC 20.32) Cottage Court Townhouse Minimum lot width (feet) Detached House (street vehicle 60 60 access) Detached House (alley vehicle 60 60 access) Cottage Court Duplex: Side -by - Side (street 60 60 vehicle access) Duplex: Side -by - Side (alley 60 60 vehicle access) Duplex: Back -to- 60 60 Back Attached House (street vehicle 30 access) Attached House (alley vehicle 30 access) Fourplex 60 Townhouse (street vehicle 30 30 16 access) Townhouse (alley vehicle 16 16 16 access) Apartment 50 Shopfront House 60 65 60 50 None 50 50 Mixed Use Shopfront 80 50 None None 50 50 Other Lot Standards Maximum hard surface coverage 90% 70% 75% 80% 100% 90% 70% 70% 70% Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 56 StandardsDimensional •• Commercial and Mixed -Use Zones Building Height (feet) Height, 35 35 40 40 38 38 35 35 maximum Density Minimum density (units per acre) Maximum density (units per acre) Setbacks (Feet) Primary street 0 10 10 0 15 setback, (10 (30 (30 (10 (0 Max) (50 20 5 minimum Max) Max) Max) Max) Max) Side street 0 10 10 0 15 15 setback, (70 (30 (30 (70 (0 Max) (50 (50 5 minimum Max) Max) Max) Max) Max) Max) Side interior setback, 0-5 5 5 0 (0 Max) 10 10 minimum Rear setback, 10 10 10 20 (0 Max) 10 10 minimum Figure 53. Excerpt of Port Orchard Municipal Code 20.35 Observations: • Apartment and townhouse building types are not allowed in the Commercial Corridor (CC) zone, but single-family attached and multifamily land use is allowed. This appears to limit this type of development to the live -work building type, which has struggled to achieve market feasibility in most of the region. • Apartment and townhouse building types are allowed in the Commercial Mixed Use (CMU) zone, which is often adjacent to the CC zone along arterial corridors and appears to serve a similar purpose. • No residential development is allowed in the Commercial Heavy (CH) zone, which prevents any possible mixed -use redevelopment of aging shopping centers or underutilized commercial properties in the Bethel and Sedgwick corridors. • The maximum impervious surface standards provide sufficient flexibility for residential development • Note that while the Downtown Mixed Use (DMU) and Gateway Mixed Use (GMU) base height limit 38 feet, the Downtown Height Overlay District (DHOD) that overlaps almost all of these two zones provides increased height limits of 48-68 feet, which increases the feasibility of mixed -use development. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 57 The 40 feet height limit in the CMU and BPMU zones (perhaps the other most promising zones for mixed -use development given their coverage of the city) is limiting, allowing for only about three stories of development by -right. Mixed -use development is generally more feasible the taller the building is, since the cost of construction on a per -square - foot basis remains relatively constant for 3-6 story buildings. Options for height increases and bonus provisions (outside of the transfer of development rights program) may be evaluated in the HAP. Some cities provide height bonuses as part of MFTE participation. As a point of reference, the Ruby Creek Overlay District provides a base 55-feet height limit for the CMU, CC, and CH zones in the southern area of the city. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 58 ADU Standards Port Orchard regulates accessory dwelling units (ADU) in two locations: Chapter 20.68 POW for basic procedures and design requirements, and POW 20.32.030 for the "Backyard cottage" dwelling type. Attached ADUs are allowed in all residential zones on lots with a single detached dwelling unit and limited to 40 percent the size of the primary unit or 1,000 square feet, whichever is less. Detached ADUs (backyard cottages) are allowed in the R1, R2, R3, R6, NMU, RMU, BPMU, and GB zones and limited to 40 percent the size of the primary unit or 1,000 square feet, whichever is rg eater. Port Orchard explicitly permits ADUs to be used as a short-term rental and for occupation by home businesses and occupations. Port Orchard amended its ADU standards in October 2022 with Ordinance 038-22. The ordinance removes requirements to register an ADU with an affidavit and ending the need for an "ADU agreement" to be recorded with the county auditor. As part of this, the owner occupancy requirement and parking requirements for ADUs have been removed; these are two of the most common and significant barriers to ADUs, so these changes will improve feasibility of ADU development. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 59 Zoning Map The City's current zoning map is copied below. �r r j Design Standards Port Orchard has several housing type design standards. 49... CITY OF PORT ORCHARD 2021 Zoning Map P.......... zom a m a 2 :1— omm ­ry 1 1,a s . F CIF) _ w5 • POMC 20.32: Building types • POMC 20.139: Residential design standards for residential building types like detached houses, backyard cottages, cottages, duplexes, townhomes, and accessory buildings • POMC 20.127: Commercial and multifamily development block frontages, site planning, and building design At least two stakeholders said the cottage housing standards discourage their development, particularly the minimum site size standards and the minimum open space: • The minimum site area is 22,500 SF regardless of number of units, and an additional 4,500 SF site area is required per unit when there are six or more cottages even though the minimum unit lot size is 1,200 SF. • The minimum courtyard area is 3,000 SF (minimum width 40 feet) and extra 600 SF per unit is required when there are six or more cottages. • Compare these other typical cottage standards, such as in Anacortes, which do not regulate lot size and have smaller open space requirements. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 60 Building Code The City of Port Orchard has adopted standard building and trades under Chapter 20.200 POMC with local amendments. Adopted codes include the International Building Code (applies to commercial and mixed -use development, and residential development with three or more units), the International Residential Code (applies to single-family, duplex, and townhouse development), and international codes for mechanical systems, plumbing, energy conservation, fire safety, and property maintenance. Landlord —Tenant Regulations People who rent homes are significantly more likely to be cost -burdened, face eviction, and be at risk of homelessness. Recognizing this, the State of Washington sets the baseline for the landlord -tenant relationship through the State Residential Landlord -Tenant Act, RCW 59.18. 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. Over the past few years, the Washington State Legislature has adopted new tenant protections as follows. Year RCW Topic 2018 59.18.255 Prohibition on source Prohibits source of income discrimination against a of income tenant who uses a benefit or subsidy to pay rent discrimination 2019 59.18.200 Notice of demolition Tenants must be provided a 120-day notice to tenants of demolition or substantial rehabilitation of premises 2019 59.18.140 Notice of rent Tenants must be provided a 60-day notice of a rent increase increase, and increases may not take effect until the completion of the term of the current rental agreement 2020 59.18.610 Initial deposits and Tenants may request paying initial deposits, fees nonrefundable fees, and last month's rent in installments (may be spread over 2-3 months, depending on lease length) 2021 59.18.650 Just cause evictions Landlords must specify a reason for refusing to continue a residential tenancy, subject to certain limited exceptions Figure 54. Recent state landlord -tenant regulations Notably, rent control by local jurisdictions was banned at the state level in 1981 (RCW 35.21.830). Otherwise, local jurisdictions are free to adopt additional or more stringent regulations than those provided by the state, and numerous cities and counties have done so. The City of Port Orchard has not adopted any local landlord -tenant regulations. The King County Bar Association provides a model tenant protection ordinance within the framework of Washington State law which could be informative for future discussions and recommendations. Several Washington cities have recently adopted at least portions of the model ordinance. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 61 State Land Use Law In recent years the Washington State Legislature has enacted preemption laws requiring local jurisdictions to ease regulations on certain types of residential land uses. In the 2022 legislative session, several additional bills were proposed with major preemptions regarding missing middle housing, accessory dwelling units, and minimum building heights (respectively, HB 1782, HB 2020, and HB 1660). These recent bills did not pass but can likely be expected to come up again in 2023 and beyond as Washington continues to confront statewide housing challenges. A non -exhaustive list of recent state preemptions follows. RCW TopicYear 2018 36.70A.450 Home -based family Cities may not prohibit the use of a residential dwelling, day care located in an area zoned for residential or commercial use, as a family day-care provider's facility serving twelve or fewer children 2019 35.21.684 Tiny homes Cities may not adopt ordinances that prevent tiny homes with wheels used as a primary residence in a manufactured/mobile home community, with the exception that ordinances may require that tiny houses with wheels contain sanitary plumbing fixtures. 2019 35A.63.300 Religious Upon request, cities must allow an increased density organization density bonus for development of single-family or multifamily bonus residences affordable to low-income households on property owned by religious organizations. 2019 36.70A.600 Safe harbor from The adoption of ordinances and other nonproject appeals under the actions taken by a city to ease regulations on housing State Environmental development are not subject to administrative or Policy Act judicial appeal under RCW 43.21 C. Similar protection is made for housing elements and implementing regulations that increase housing capacity under RCW 36.70A.070. 2020 36.70A.698 Parking for accessory Cities may not require the provision of off-street dwelling units parking for accessory dwelling units within one -quarter mile of a major transit stop (likely does not apply to Port Orchard due to low transit service today). 2020 36.70A.620 Parking for Cities may not require more than a certain ratio of multifamily housing parking spaces per unit within one -quarter mile of a frequent transit stop. There are different limits for market -rate units, designated senior and disability homes, and low-income units (likely does not apply to Port Orchard due to low transit service today). 2021 35A.21.430 Permanent Cities may not prohibit permanent supportive housing supportive housing in areas where multifamily housing or hotels are permitted. Reasonable occupancy, spacing, and intensity of use requirements may be imposed. This supersedes a similar law passed in 2019, RCW 35A.21.305. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 62 2021 35A.21.430 Transitional housing Cities may not prohibit transitional housing in areas where multifamily housing or hotels are permitted. Reasonable occupancy, spacing, and intensity of use requirements may be imposed. 2021 35A.21.430 Indoor emergency Cities may not prohibit indoor emergency shelters and shelters and indoor indoor emergency housing in any zones in which hotels emergency housing are permitted. Reasonable occupancy, spacing, and intensity of use requirements may be imposed. 2021 35A.21.314 "Family' definition Except for limits on occupant load per square foot or and number of general health and safety provisions, cities may not unrelated household regulate or limit the number of unrelated persons that occupants may occupy a household or dwelling unit. 2021 36.70A.070 Requirements for Requires planning and analysis of housing needs for Comprehensive Plan moderate, low, very low, and extremely low-income Housing Elements households; a variety of housing types; zoning that may have a discriminatory effect; and other related issues. This will apply to the next major update of Port Orchard's Comprehensive Plan due in 2024. Figure 55. Recent state zoning preemptions Federal Incentives Created in 2017, Opportunity Zones are intended to assist economically distressed communities with preferential tax treatment for those investing eligible capital gains. Port Orchard has been designated with two federal Opportunity Zones located contiguously with Census Tracts #53035092200 and #53035092300. This covers the much of the city east of State Route 16. Generally, this tool has seen little interest from large residential developers, but it may be appealing to local or long-term hold developers. The program expires in 2026. r c _ ,w9 1S�',l ai 3� Vp Fi h.ii , ley, Rd a . 4 II� I cd P Old Cldon Rd o , r a m Figure 56. Location of the federal Opportunity Zones in Port Orchard h ^4* -FHH '. Om hard Indu nal Park r Snulfi Kit.p High QI�lN Fbn F�a mangy Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 63 Port Orchard shares many of its housing challenges with other communities nationwide, and the country's affordable housing problem has caught the attention of the White House. In May 2022, President Biden released a statement saying, in part: "One of the most significant issues constraining housing supply and production is the lack of available and affordable land, which is in large part driven by state and local zoning and land use laws and regulations that limit housing density. Exclusionary land use and zoning policies constrain land use, artificially inflate prices, perpetuate historical patterns of segregation, keep workers in lower productivity regions, and limit economic growth. Reducing regulatory barriers to housing production has been a bipartisan cause in a number of states throughout the country. It's time for the same to be true in Congress, as well as in more states and local jurisdictions throughout the country." The President has directed his administration to leverage existing transportation and economic development funding streams to reward jurisdictions that promote density, main street revitalization, and transit -oriented development. For the near future, the President has also proposed billions of dollars for HUD grant programs to support local jurisdictions in eliminating barriers to affordable housing production, supporting manufactured housing, scaling up ADU production, and other measures. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 64 Section 7 - Land Capacity Analysis A land capacity analysis is a core element of a housing needs analysis, as required by the Washington Department of Commerce. Kitsap County completed a Buildable Lands Report in November 2021 which contains a comprehensive analysis of vacant and redevelopable land in Port Orchard as well as required land to meet expected population growth. As shown in Figure 54, Port Orchard has surplus land to accommodate 5,750 more residents than expected by 2036. According to the 2021 Kitsap County Buildable Lands Report, the County is currently updating its zoning to remove barriers to housing in UGAs. The target population growth in Port Orchard's UGA is based on forthcoming County zoning code revisions incentivizing urban housing development in the UGA consistent with its designation as a High -Capacity Transit Corridor in PSRC's VISION 2050 framework. Together, the city and UGA have available land for a surplus of 5,750 residents. Figure 57. Port Orchard 2021 Residential Buildable Lands Analysis Summary. Source: 2021 Kitsap County Buildable Lands Analysis, Kitsap Regional Coordinating Council, City of Port Orchard Figure 58 shows a breakdown of unit and population capacity by zone and type of unit. As shown, the majority of the new unit capacity is on vacant or redevelopable land in the R2 and R3 zones, as well as to a lesser degree in the CMU zone. The largest amount of multifamily unit capacity is found in the R3 zone. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 65 Zoning Greenbelt (GB) Net Acres 71.74 Single - Family Unit Capacity...Capacity 36 Multifamily Unit Population 96 Residential 1 (R1) 35.15 255 685 Residential 2 (R2) 147.06 1,495 4,022 Residential 3 (R3) 31.87 1,540 1,350 7,049 Residential 4 (R4) 21.56 456 954 Residential 6 (R6) 18.11 421 1,134 Neighborhood Mixed Use (NMU) 0.54 5 11 Business Professional Mixed Use (BPMU) 5.59 19 39 Downtown Mixed Use (DMU) 0.24 2 4 Gateway Mixed Use (GMU) 0.31 39 82 Commercial Mixed Use (CMU) 49.76 961 2,009 Commercial Corridor (CC) 18.62 79 166 Figure 58. Port Orchard 2021 Buildable Lands by Zone. Source: 2021 Kitsap County Buildable Lands Analysis. Port Orchard's land capacity is likely higher than the numbers listed in the 2021 Kitsap County Buildable Lands Report as a result of new zoning changes adopted in 2019 but not used in the analysis. For example, the Buildable Lands Report assumed that the R2 zone would see only single-family development even though although multifamily development is allowed in the zone and multifamily development would result in a larger number of units than shown in the table above. Port Orchard Housing Action Plan - Existing Conditions and Housing Needs Analysis Report Page 66 Appendix A - Kitsap County Impact Fee Comparison Single- Duplex Triplex & Multifamily Multifamily Multifamily ADU Family . ..floors Road Impact Fees Port Orchard $5,205.69 $5,205.69 $2,944.63 - $5,205.69 $5,205.69 $2,944.63 $2,313.64 $1,892.98 $1,472.32 - $2,294.91 $2,944.63 Kitsap $4,229.84 $2,294.91 $2,294.91 $1,754.93 $1,619.94 $2,564.90 County I$2,564.90 Bremerton $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Poulsbo $564.00 $564.00 $564.00 $564.00 $564.00 $564.00 $564.00 $564.00 Bainbridge Island $1,811.82 $1,123.33 $1,123.33 $1,413.22 $1,123.33 $1,123.33 $1,123.33 $1,123.33 Gig Harbor $5,257.00 $5,582.00 $5,582.00 $5,582.00 55,582.00 $5,582.00 $5,582.00 $5,582.00 Parks Impact Fees Port $4,280.00 $3,089.00 $3,029.00 $3,089.00 - $3,014.00 Orchard $4,280.00 $3,014.00 $3,014.00 $2,344.00 Kitsap $743.10 $362.03 $362.03 $362.03 $362.03 $362.03 $362.03 $362.03 County Bremerton $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Poulsbo $1,195.00 $1,195.00 $1,195.00 $1,195.00 $1,195.00 $1,195.00 $1,195.00 $1,195.00 Bainbridge $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Island Gig Harbor $1,500.00 $1,500.00 $1,500.00 $1,500.00 T$1,0. 00 $1,500.00 $1,500.00 $1,500.00 School Impact Fees Port $1,370.83 $861.65 $861.65 $861.65 $861.65 $861.65 $861.65 $861.65 Orchard Kitsap $1,455.66 $839.81 $839.81 $839.81 $839.81 $839.81 $839.81 $839.81 County Bremerton $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Poulsbo $1,455.66 $839.81 $839.81 $839.81 $839.81 $839.81 $839.81 $0.00 Bainbridge $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Island Gig $4,130.00 $2,179.00 $2,179.00 $2,179.00 $2,179.00 $2,179.00 $2,179.00 $4,130.00 Harbor Total Impact Fees Port $10,856.52 $9,156.34 $6,835.28 - $9,156.34 - $6,820.28 $6,189.29 $5,768.63 $4,677.97 - Orchard $9 096.34 10,347.34 $6,150.28 Kitsap County $6,428.60 $3,496.75 $3,496.75 $3,766.74 $3,496.75 $2,956.77 $2,821.78 $3,766.74 Bremerton $0.00 $0.00 $0.00 $0.00 $0.00 $2,598.81 $0.00 $2,598.81 $0.00 $0.00 Poulsbo $3,214.66 $2,598.81 $2,598.81 $2,598.81 $2,598.81 $1,759.00 Port Orchard Housing Action Plan - Existing Conditions and Housing Needs Analysis Report Page 67 Bainbridge $1,811.82 $1,123.33 $1,123.33 $1,413.22 Island Gig $10,887.00 $9,261.00 $9,261.00 I$9,261.00 Harbor $1,123.33 $1,123.33 $1,123.33 $9,261.00 $9,261.00 $9,261.00 $1,123.33 $11,212.00 Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 68 Appendix B - Comprehensive Plan Policies The consultant team's comments on select housing policies are listed below. Housing Element Goal/ Policy HS-1 Identify a sufficient amount of land for housing, The Land Capacity Analysis in Section 7 of this including but not limited to government -assisted report finds the City has surplus capacity for 5,750 housing, housing for low-income families, residents beyond 2044 growth targets. Land manufactured housing, multifamily housing, capacity will be reviewed in more detail with the group homes, and foster care facilities. update to the Port Orchard Comprehensive Plan due in 2024. HS-2 Support the development of a variety of housing The City has a good foundation of supportive types, including apartments, townhomes, mixed- zoning standards to support a variety of housing use (residential and other uses) and live -work types, though as noted in Section 6 some development, small -lot and zero lot line single- improvements could be made or more incentives family homes, and manufactured homes, as well added. The MVOD zone is an example of as traditional single-family homes, through innovative planning. Financial assistance largely is innovative planning, efficient and effective implemented through the MFTE program, though administration of land and building codes, and, other options may need to be explored to support where available, applicable financial assistance. the low-income population. See also HS-20. HS-3 Monitor official and estimated population and The HAP is partially fulfilling this policy. Some housing data to ensure zoning and development gaps have been found in this report. regulations reflect market demands HS-4 Adopt zoning and development regulations that According to City staff, this policy is generally will have the effect of minimizing housing costs being met, but stakeholders report other factors and maximizing housing options. outside the City's control are also contributing to increasing the costs of building housing. HS-5 Support the development of housing and related Port Orchard does not have any emergency services that are provided by regional housing housing or emergency shelter for homeless programs and agencies for special needs individuals. Supportive and group housing for populations, especially the homeless, children, people with mental or physical disabilities also the elderly, and people with mental or physical appears limited, though there is a considerable disabilities. share of senior housing and assisted living facilities concentrated on the Pottery Avenue corridor. HS-6 Consider reducing permitting fees for No waivers/reductions for impact fees, general development which provide affordable housing facilities charges, or other permitting fees appear as defined by the Washington Administrative to be in place. Code (WAC) section 200-120- 020. HS-7 Consider the creation of zoning and other land This has been met through the MFTE program. use incentives for the private construction of affordable and special needs housing as a percentage of units in multi -family development. HS-8 Consider adopting incentives for development of This has been met through the MFTE program. affordable multi -family homes through property tax abatement in accordance with 84.14 RCW, focusing on designated mixed -use local centers with identified needs for residential infill and redevelopment. Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 69 Goal/ Policy Text MAKERS Comments HS-9 Implement minimum residential density The City does not have any minimum density requirements in centers of local importance in standards in any zone. order to increase land and infrastructure efficiency. HS-10 Encourage the development of vertical multi- The MFTE Type III program and supportive zoning family housing above ground floor commercial helps encourage this type of housing, and there uses within centers of local importance. are a variety of private projects proposed in local centers. HS-11 Encourage the development of a mix of housing A more thorough review of the future land use types within walking and bicycling distance of map will be needed in the Comprehensive Plan public schools, parks, transit service, and update. This is a good policy to continue forward. commercial centers. HS-12 Require that new housing developments occur This is primarily met through impact fees. concurrently with necessary infrastructure investments. HS-14 Implement zoning and development regulations This type of development does not appear to be which encourage infill housing on empty and happening in large numbers, with most housing redevelopable parcels. being built on greenfields on the edge of the city. More incentives for infill and redevelopment in local centers should be explored in the HAP. HS-15 Allow the development of residential accessory Allow in all residential areas. Consider policy to dwelling units (ADUs) and detached accessory allow ADU's to be built with all single-family, dwelling units (DADUs) in appropriate residential duplex, and triplex developments. areas with sufficient public facilities to adequately serve additional residents. HS-16 Consider increasing maximum housing densities Similar to policy HS-9. Minimum densities will be and implementing minimum housing densities in explored in the HAP. The City has no maximum appropriate areas. density limits in residential zones. HS-18 Consider programs to preserve or rehabilitate One project has utilized the MFTE Type II program neighborhoods and areas that are showing signs intended for abandoned properties. The City could of deterioration due to lack of maintenance or consider other maintenance support, such as use abandonment. of Community Development Block Grants to help low-income homeowners with rehabilitation. HS-19 Consider commercial building design standards Commercial design standards have been adopted. that establish and protect neighborhood character. HS-20 Seek federal, state, and other funding for the Staff report no work has been done on grant renovation and maintenance of existing housing applications to renovate/maintain existing stock. housing stock. HS-22 Streamlining the permitting process for Stakeholders noted that permit processing time development by implementing policies and and unexpected hurdles are a continuing problem, procedures that reduce the length of time though the City has recently moved to an involved in plan approval. electronic system. HS-24 Consider developing and implementing flexible The City has recently updated its critical areas development standards for housing being standards and has no maximum density limits in proposed in the vicinity of critical areas to meet residential zones. both the goals of housing targets and environmental protection. HS-27 If the City's growth rate falls below 2.1 % annual In individual years the growth rate has sometimes growth, the rate at which the City would need to been lower than 2.1 % (e.g. 2.7% from 2017 to grow at in order to hit its 2036 growth target, the 2018), and from 2015 to 2022 the average annual Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 70 city should consider adopting reasonable growth rate was 2.6%. It is unclear which measures such as reducing adopted timeframe should be used to evaluate whether transportation levels of service, impact fees, or "reasonable measures" are needed. accelerating growth related projects within the City's Capital Improvement Program. HS-28 If the City's growth rate increases from the 2.5% In individual years the growth rate has sometimes growth rate experienced from 2013-2015, the been higher than 2.5% (e.g. 2.8% from 2021 to City should consider adopting reasonable 2022), and from 2015 to 2022 the average annual measures including increasing transportation growth rate was 2.6%. It is unclear which level of service standards, impact fees, or timeframe should be used to evaluate whether delaying projects within the City's Capital "reasonable measures" are needed. Improvement Program. Land Use Element Goal/ Policy LU-1 Ensure that land use and zoning regulations Some variety of housing types are being seen in maintain and enhance existing single-family recent years, but not enough to meet all market residential neighborhoods, while encouraging needs. Revisiting this policy in the context of that new development provides a mixed range of single-family neighborhoods may be warranted in housing types. the Comprehensive Plan update. LU-11 Within centers of local importance, set minimum The housing policy review in Section 6 finds that building densities that enable lively and active none of these ideas have been implemented, with streets and commercial destinations. Such limits the exception of maximum street setbacks in may take the form of: minimum floors or building limited commercial areas. height, floor -area -ratios, and lot coverage; and maximum street setbacks and parking spaces. LU-17 Incentivize infill development to preserve and This type of development does not appear to be protect open space, critical areas, and natural happening in large numbers, with most housing resources. being built on greenfields on the edge of the city. More incentives for infill and redevelopment in local centers should be explored in the HAP. Transportation Element Goal/ Policy Goal 7 Work with Kitsap Transit to provide increased Level of service standards for transit frequency is transit service to the City as development not mentioned anywhere in the Transportation occurs. Element. TR-38 Require new development and redevelopment to The future land use map and zoning map should provide safe neighborhood walking and biking be evaluated to determine what housing capacity routes to schools. and potential for new development exists near schools. New infrastructure is most easily paid for by new development, and schools should be nodes of residential density to facilitate short walks and bike rides for students from home. TR-86 Consider reduction of parking requirements if a Noted. development provides alternatives for multi- Port Orchard Housing Action Plan — Existing Conditions and Housing Needs Analysis Report Page 71 ORDINANCE NO. XXX-23 AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON, RELATING TO THE CITY'S DEVELOPMENT CODE WITH REGARD TO DEVELOPMENT AGREEMENTS AND THE CITY SIGN CODE; AMENDING SECTION 20.26.020 OF THE PORT ORCHARD MUNICIPAL CODE TO ADD THE SIGN CODE CHAPTER 20.132 POMC TO THE LIST OF CODE PROVISIONS WHICH MAY BE MODIFIED BY A DEVELOPMENT AGREEMENT; AMENDING SECTION 20.132.060 OF THE PORT ORCHARD MUNICIPAL CODE TO PROVIDE THAT MASTER SIGN PLANS MAY BE APPROVED BY USE OF A DEVELOPMENT AGREEMENT; PROVIDING FOR CORRECTIONS AND SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, pursuant to RCW 36.7013.170, the City Council has the authority to review and enter into development agreements that govern the development and use of real property within the City; and WHEREAS, such agreements are advantageous to both municipalities and applicants by facilitating certainty and stability in the land use permitting process, while also providing flexibility in the innovative application of local development standards, often leading to enhanced project design and infrastructure improvements for the public; and WHEREAS, the City Council adopted standards and procedures governing the City's use of development agreements, codified at Chapter 20.26 of the Port Orchard Municipal Code (POMC) which was last updated by Ordinance No. 030-20; and WHEREAS, when a project includes signage the City's sign code (Chapter 20.132 POMC) applies; and WHEREAS, the Development Agreement section 20.26.020 that sets forth the code chapters that are subject to Development Agreements does not currently include the City sign code; and WHEREAS, for mixed use developments, a master sign plan is required in accordance with POMC 20.132.060; and WHEREAS, allowing master sign plans to be approved by Development Agreement may result in a better result for both project proponents and for the public at large; WHEREAS, the City Council desires to adopt the amendments to those regulations set forth in this ordinance to enhance the City's ability to utilize development agreements for the benefit of the City and public; and Page 1 of 8 1761272.1 - 366922 -0021 Ord. XXX-23 Page 2 of 8 WHEREAS, this Ordinance was submitted to the Department of Commerce for review on DATE, 2023, and review was granted on DATE, 2023; and WHEREAS, on DATE, 2023, the City's SEPA official issued a determination of nonsignificance for the proposed revisions, and there have been no appeals; and WHEREAS, the Planning Commission conducted a public hearing on the substance of this Ordinance on DATE, 2023, and recommended adoption by 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 FOLLOWS: SECTION 1. Findings and Recitals. The recitals set forth above are hereby adopted and incorporated as findings in support of this Ordinance. SECTION 2. Section 20.26.020 of the Port Orchard Municipal Code is hereby amended to read as follows: 20.26.020 Form of agreement, effect and general provisions. (1) Form. A development agreement shall set forth the development standards and other provisions that apply to and govern and vest the development, use, and mitigation of the development of the real property for the duration specified in the agreement. (a) For the purposes of this chapter, "development standards" may include, but are not limited to: (i) Project elements such as residential densities, nonresidential densities and intensities or building sizes; (ii) The amount and payment of impact fees imposed or agreed to in accordance with any applicable provisions of state law, any reimbursement provisions, other financial contributions by the property owner, inspection fees, or dedications; (iii) Mitigation measures, development conditions, and other requirements under Chapter 43.21C RCW; 1761272.1 - 366922 -0021 Ord. XXX-23 Page 3 of 8 (iv) Design standards such as maximum heights, setbacks, landscaping, and other development features; (v) Affordable housing; (vi) Parks and open space preservation; (vii) Phasing; (viii) Review procedures and standards for implementing decisions; (ix) A build -out or vesting period for applicable standards; and (x) Any other development requirement or procedure deemed appropriate by the city council. (b) In order to encourage innovative land use management and provide flexibility to achieve public benefits, a development agreement adopted pursuant to this chapter may impose development standards that differ from the following development regulations of this code; provided, that any development standards imposed by the development agreement shall be consistent with the comprehensive plan: (i) Chapter 20.08 POMC, Vesting; (ii) Chapter 20.12 POMC, Definitions; (iii) Chapter 20.30 POMC, Introduction to Zoning, Land Uses, and Building Types; (iv) Chapter 20.32 POMC, Building Types; (v) Chapter 20.33 POMC, Greenbelt District; (vi) Chapter 20.34 POMC, Residential Districts; (vii) Chapter 20.35 POMC, Commercial and Mixed Use Districts; (viii) Chapter 20.36 POMC, Industrial Districts; (ix) Chapter 20.37 POMC, Civic and Open Space Districts; (x) Chapter 20.38 POMC, Overlay Districts; (xi) Chapter 20.39 POMC, Use Provisions; (xii) Chapter 20.40 POMC, Site and Lot Dimensions; (xiii) Chapter 20.41 POMC, Transfer of Development Rights Program; (xiv) Chapter 20.54 POMC, Nonconformities; (xv) Chapter 20.68 POMC, Accessory Dwelling Units; (xvi) Chapter 20.80 POMC, Subdivisions — General Provisions; (xvii) Chapter 20. 82 POMC, Administration and Enforcement; (xviii) Chapter 20.84 POMC, Boundary Line Adjustments; (xix) Chapter 20.86 POMC, Short Subdivisions; (xx) Chapter 20.88 POMC, Subdivisions — Preliminary Plats; (xxi) Chapter 20.90 POMC, Subdivisions — Final Plats; (xxii) Chapter 20.94 POMC, Binding Site Plans; (xxiii) Chapter 20.96 POMC, Vacation and Alteration of Final Plans and Short Plats; (xxiv) Chapter 20.98 POMC, Improvements; 1761272.1 - 366922 -0021 Ord. XXX-23 Page 4 of 8 (xxv) Chapter 20.100 POMC, Development Standards — Subdivision Design; (xxvi) Chapter 20.120 POMC, Development Standards — General Provisions; (xxvii) Chapter 20.122 POMC, Building Elements; (xxviii) Chapter 20.124 POMC, Development Standards — Parking and Circulation; (xxix) Chapter 20.127 POMC, Design Standards; (xxx) Chapter 20.128 POMC, Landscaping; (xxxi) Chapter 20.129 POMC, Significant Trees; (xxxii) Chapter 20.132 POMC, Sign Code: (xxxiii) Chapter 20.139 POMC, Residential Design Standards; (xxxi4iv) Chapter 20.162 POMC, Critical Areas Regulations; (xxx+v) Chapter 20.164 POMC, Shoreline Master Program; (xxxvi) Chapter 20.182 POMC, Impact Fees. (c) A development agreement shall not modify any provision of this code that is not identified in subsection (1)(b) of this section. (d) A development agreement may modify the provisions of this code only if the city council determines that the requested modifications are necessary to provide flexibility to achieve public benefits and provide superior outcomes than those that would result from strict compliance with the other applicable development standards. (e) Any approved development standards that differ from those other applicable development standards shall not require any further zoning reclassification, variance from city standards or other city approval apart from development agreement approval. (f) Subsequently adopted standards which differ from those in the development agreement shall apply to the subject site where necessary to address a serious threat to public health and safety or where the development agreement specifies a time period or phase after which certain identified standards may be modified. Building permit applications shall be subject to the building and construction codes in effect when the building permit application is deemed complete. (2) Decision Type. Development agreements are a Type V action and shall be reviewed and approved pursuant to the procedures in Chapter 20.22 POMC and this chapter, except that if the development agreement is consolidated with a new or pending Type I, II, III or IV project permit application as defined in RCW 36.70B.020, the city council's decision to approve, deny, or modify the development agreement may be appealed pursuant to Chapter 36.70C RCW. (3) Effect. Development agreements are not project permit applications and are not subject to the permit processing procedures in Chapter 36.70B RCW or Chapter 20.24 POMC. A development agreement shall constitute a binding 1761272.1 - 366922 -0021 Ord. XXX-23 Page 5 of 8 contract between the city and the property owner and the subsequent owners of any later -acquired interests in the property identified in the development agreement. A development agreement governs the project identified in the development agreement during the term of the development agreement, or for all or that part of the build -out period specified in the development agreement, and may not be subject to an amendment to a zoning ordinance or development standard adopted after the effective date of the agreement, except as set forth in this chapter. A permit or approval issued/granted by the city after execution of a valid development agreement must be consistent with the development agreement. (4) Limitations. (a) A development agreement shall be limited to a 20-year term if any provision of the agreement requires the city to: (i) Refrain from exercising any authority that it would have otherwise been able to exercise in the absence of the development agreement; (ii) Defer application to the subject property of any newly adopted development regulations that would otherwise apply to the property identified in the agreement; or (iii) Allow vesting beyond the applicable deadlines for a phased development. (b) The development agreement shall also contain a proviso that the city may, without incurring any liability, engage in action that would otherwise be a breach if the city makes a determination on the record that the action is necessary to avoid a serious threat to public health and safety, or if the action is required by federal or state law. (c) The full costs of drafting and processing the development agreement shall be reimbursed by the owner or applicant prior to final city council action on the agreement to the extent such costs exceed the initial application fee. (5) Developer's Compliance. The development agreement shall include a clause stating that the city's duties under the agreement are expressly conditioned upon the property owner's substantial compliance with each and every term, condition, provision and/or covenant in the development agreement, all applicable federal, state, and local laws and regulations and the property owner's obligations as identified in any approval or project permit for the property identified in the development agreement. (6) No Third Party Rights. Except as otherwise provided in the development agreement, the development agreement shall create no rights enforceable by any party who/which is not a party to the development agreement. (7) Liability. The development agreement shall include a clause providing that any breach of the development agreement by the city shall give right only to damages under state contract law and shall not give rise to any liability under 1761272.1 - 366922 -0021 Ord. XXX-23 Page 6 of 8 Chapter 64.40 RCW, the Fifth and Fourteenth Amendments to the U.S. Constitution, or similar state constitutional provisions. (8) Termination, Modification and Extension. Every development agreement shall have an identified, specific termination date. Upon termination, any further development of the property shall conform to the development regulations applicable to the property at the time of permit application. The city shall not modify any development agreement by extending the termination date unless the city council makes legislative findings that the additional benefits to the city provided by the developer in exchange for such extension of the development agreement outweigh the impacts from the development authorized by the extension. In no case shall an extension include the extension of provisions that are inconsistent with state or federal law at the time of such extension. Any request for a modification shall be consistent with the city's development regulations applicable to the property at the time of the request, not the original execution date of the development agreement. Any extensions granted shall be for no more than a length of 10 years. No more than two extensions of up to 10 years shall be granted. Extensions may not be granted unless an application for an extension is made no later than 180 days prior to the termination date in the development agreement or prior to the termination of any extension of a development agreement. SECTION 3. Section 20.132.060 of the Port Orchard Municipal Code is hereby amended to read as follows: 20.132.060 Master sign plans. (1) Approval Required. Before the city will issue any sign permit relating to space in a proposed new mixed use, nonresidential, multitenant building(s), or multitenant site development, the city must first approve a master sign plan for the building(s) and/or site development. In addition, a master sign plan may be voluntarily developed and maintained by the owner or agent of any new or existing nonresidential use. As an alternative to the procedures included in this section, an applicant may apply for approval under the development agreement procedures under chapter 20.26 POMC. If a development agreement is utilized. then the development agreement procedures shall replace the procedures in this section, provided, however, that the applicant will still provide the information listed in subsection 3 below as part of the review under the development agreement procedures. (2) Review Procedures. A master sign plan is a Type I permit per POMC 20.22.030. The community development director shall make the decision on the master sign plan without a hearing. Refer to Chapter 20.24 POMC for application, review and approval procedures. 1761272.1 - 366922 -0021 Ord. XXX-23 Page 7 of 8 (3) Application Requirements. A complete master sign plan application shall consist of the following: (a) A complete master sign plan application, including the applicant's name, address, phone number and email address. If the applicant is not the property owner(s), then the property owner(s) must be identified and the application must include an affidavit from the property owner(s), verifying that the property owner(s) has given permission to the applicant for the submission of the master sign plan application. No sign may be placed upon real property without the consent of the real property owner(s); (b) A site plan drawn to legible scale, indicating the location of all buildings, driveways and pavement areas, landscape areas, abutting streets and proposed freestanding signs on the site; (c) Elevation drawings of each building on a site that indicates proposed sign locations on each of the buildings; (d) Maximum allowable signage on each elevation based upon a five percent calculation of all facades; (e) The master sign plan application shall identify the sign features and sign types proposed to be used on each building and the proposed location. In addition, a statement shall be included which describes the manner in which the building or site owner wishes to allocate allowable signage among tenants and where specific tenant signage shall be located; (f) A narrative description of the development to demonstrate that the master sign plan meets the required design standards of this chapter; and (g) Fees. Payment of the appropriate fee for a master sign plan. (4) Criteria for Approval. All signs in the master sign plan must meet the criteria for approval in POMC 20.132.050, Sign permits. In addition, all of the signs in the master sign plan: (a) Shall be architecturally similar and visually related to each other through the incorporation of common design elements. Up to two sign types may be used on any one building. All sign cabinets, trim caps and all sign supports such as poles and braces shall be of a common color; (b) Shall be architecturally integrated with the buildings included in the master sign plan; and (c) Must not obscure the view of other signs which are consistent with this chapter. (5) Notice of Final Decision. See POMC 20.132.050, Sign permits. (6) Expiration of Master Sign Plan. Once a master sign plan is approved, the signs depicted in the approved plan must be installed within 180 days or the master sign plan will expire. The director may grant a 180-day extension to the master sign plan if such a request is made in writing prior to the expiration of the master sign plan and provided that the sign plan remains consistent with the sign 1761272.1 - 366922 -0021 Ord. XXX-23 Page 8 of 8 regulations. Building permits and street use permits for any signs shown in the master sign plan shall expire in accordance with other applicable code provisions. No sign may be erected under an expired master sign plan, even if the associated sign permit, building permit or street use permit has not expired. (7) Amendment to Master Sign Plan. An application for an amendment to an approved master sign plan may be made at any time, subject to the same limitations, requirements and procedures as those that apply to an original application in this section. Tenants whose signs are included in the amendment application need the property owner's consent to file such application. In order to approve any such amendment, the director shall consider the existing signs on the building(s) subject to the approved plan when determining whether the application meets the criteria for approval in subsection (4) of this section. SECTION 4. Severability. If any sentence, section, provision, or clause of this Ordinance or its application to any person, entity or circumstance is for any reason held invalid or unconstitutional, the remainder of the Ordinance, or the application of the provision to other persons, entities, or circumstances is not affected. SECTION S. 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 6. Publication and Effective Date. This Ordinance shall be in full force and effect five (5) days after posting and publication as required by law. A summary of this Ordinance may be published in lieu of the entire Ordinance, as authorized by state law. PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and attested by the Clerk in authentication of such passage this ***th day of *** 2023. Robert Putaansuu, Mayor FA19:►119 Brandy Wallace, MMC, City Clerk APPROVED AS TO FORM: Sponsored by: 1761272.1 - 366922 -0021 Ord. XXX-23 Page 9 of 8 Charlotte A. 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