Loading...
03/29/2023 - Packet, RevisedCity of Port Orchard Land Use Committee March 29, 2023 4:30 pm Remote access on Zoom Webinar Public Link (not to be used bV LU Committee): https://us02web.zoom.us/j/81034433449 Dial -in: 1 253 215 8782 Webinar ID: 810 3443 3449 AGENDA 1. Discussion: Housing Action Plan 2. Discussion: Planning Commission Rules, POMC 2.20 3. Discussion: April Meeting Date 4. Discussion: Blueberry Apartments Development Agreement Agenda Item No.: Business Item ** Subject: Draft Housing Action Plan City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (36o) 876-4407 0 FAX (36o) 895-9029 Staff Report Meeting Date: March 29, 2023 Prepared by: Nicholas Bond, AICP DCD Director Atty Routing No.: NA Atty Review Date: NA Issue: A draft Housing Action Plan is nearly ready for public release but was not available for inclusion in the Land Use Committee meeting packet. If the draft plan becomes available prior to the Land Use Committee meeting, it will be sent to the committee via email. Even though the report is not quite finished, we wanted to share some preliminary recommendations from the report. The HAP will be organized by broader strategy sections including Background, Regulatory, Programmatic, Citywide Planning, and Funding strategies. Implementation of the recommendations in the report will likely proceed on a piecemeal basis with some actions that can be considered immediately and others that may require significant public outreach or which may need to be incorporated into the Comprehensive Plan Update. 1— Background Information: 1.X — Project Purpose: This section summarizes the Project's Purpose. 1.X — Housing Needs: Relies heavily on the Existing Conditions Report to demonstrate the need for the Plan. Provides description of current, historic and forecasted growth rates while describing the socioeconomic status of community households and comparisons to County and Statewide data. This section will describe housing affordability in the community. 1.X— Racially Disparate Impacts: This Housing Action Plan provides a number of strategies to address most of these issues, which focus on easing regulations and streamlining standards to make it easier to build middle housing and multifamily housing in more locations. 1.X — Public Engagement: This section summarizes Public Engagement efforts and documents results. 1.X—State Law Updates: Port Orchard should anticipate state preemption on several common types of development regulations which have some of the greatest impacts on housing affordability and site -specific feasibility. This section recognizes the current legislative session's work related to housing. 2 — Regulatory Strategies: The City's development regulations influence the form housing takes in the City. This section identifies potential barriers to housing development and suggests actions which may remedy some of that. 2.1—Allowed Uses 2.1.X — R2 Zone: Port Orchard: This section identifies R2 as the predominant district in Port Orchard and suggests allowing multifamily dwellings (3 or 4 units) by right. 2.1.X— BPMU and NMU Zones: Suggests allowing apartments as a building type in these districts. 2.1.X — Single Room Occupancy Housing: Suggests streamlining standards for single -room occupancy (SRO) housing and addressing congregate living facilities. 2.1.X—Adult Family Homes: Suggests updating the standards and definition under POMC 20.39.100(10) to be consistent with state legislation passed in 2020. 2.1.X — Supportive Housing: Port Orchard's current regulations are consistent with RCW 35A.21.430, but Gateway Mixed Use district should be updated to allow permanent supportive housing or transitional housing. Also suggests updating the design standards applicability to supportive housing uses. 2.2 — Building Types: Suggests some simplification to this section and incorporation of some of the dimensional requirements into the land use and residential design standards. This suggested edit is intended to make this section more user friendly. 2.2.X — Adjust Cottage Court Standards: Suggests removing the minimum site size, adjusting the minimum courtyard size standards, and allowing duplex cottages. 2.2.X — Consolidate Duplex Types and Standards: Suggests consolidating "Duplex: Side -by -Side", "Duplex: Back -to -Back", and "Attached House" into a single building type called "Duplex." 2.2.X — Rename the Fourplex Type: Suggests renaming this building type as the building type allows three units which is misleading. 2.2.X — Adjust Townhouse Type Standards: Suggests removing the minimum site size and width, not requiring townhomes to be on their own lots, and allowing townhouses to be narrower than 20 feet 2.2.X — Consolidate the Live -Work Type: streamlining the code and integrating this building type into the townhouse building type. 2.2.X — Adjust Shopfront House Standards: Suggests increasing the number of dwelling units permitted on a Lot to create flexibility. 2.2.X — Building Height: Suggests removing building type height limits and relying solely on the zoning regulations to address height limits. 2.2.X — Ground Floor Elevation: Suggests removing minimum ground floor elevation from every building type. 2.2.X — Blank Walls: Suggests removing blank wall regulations from Building Type section and rely on design standard sections. 2.3 — Adjust Form & Intensity Standards 2.3.X—Adjust Minimum Lot Dimensions: Suggests regulating minimum lot width by zone and alley access rather than by building type. This is intended to streamline standards and promote fairness in how middle housing is treated. 2.3.X—Adjust Height Limits and Add Affordable Housing Bonuses: Suggests building height limit increases to increase the economic feasibility of multifamily and mixed -use development. New bonus height limits associated with the multifamily tax exemption (MFTE) program can also be used to incentivize greater production of multifamily housing generally and affordable (subsidized) housing. 2.3.X—Add Minimum Density and Housing Mix Requirements: Suggests creating a minimum density requirement to leverage public infrastructure investments and maximize the efficiency of land where compact and walkable development is desired. 2.3.X — Religiously -Owned Land Density Bonus: Suggests to be consistent with state requirements, implementing an update to underlying zoning, creation of a new overlay zone, or property -specific development agreements to allow density bonuses to religiously owned land. 2.4 — Adjust Other Standards 2.4.X — Family Definition: Suggests amending the definition of "family" under POMC 20.12.010 to be consistent with state law RCW 35A.21.314. (1) A group of ^^* m^-- *"^^ four related and unrelated adults and their related minor children, but net t ead a t t l f gtit - i, ted and . in elated p ns; 2.4.X — Usable Residential Open Space: Suggests minor adjustments to improve the clarity of the open space standards for multifamily and mixed -use housing developments. 2.4.x — Elevator Penthouse: Suggests increasing height limit exceptions for elevator infrastructure. 2.4.X — Parking Lot Landscaping: Suggests reducing and simplifying minimum planting area widths to allow more efficient use of land in POMC 20.128.070(3) 2.4.X — Service Areas and Mechanical Equipment: Suggests minor clarifications to be made about applicability to offer some more flexibility under POMC 20.127.360. 2 2.4.X — Building Materials: Suggests updating POMC 20.127.450(2) to clarify the applicability of durable materials on the ground floor. 2.4.X — Blank Wall Standards: Suggests updating the applicability for blank wall treatment standards to reduce construction cost impacts 3 — Programmatic Strategies 3.1 - Anti -Displacement Strategies: Suggests adopting local tenant protections and consider other regulatory and programmatic anti -displacement actions to improve the stability of renter households. 3.1.X — Local Tenant Protections: Suggests a menu of options as a basis for continued discussion by decision makers. 3.1.X - Other Anti -Displacement Strategies: Suggests strategic acquisition of existing multifamily housing in coordination with Housing Kitsap, tenant legal services, programs for tenant opportunities to purchase, rental assistance programs, housing rehabilitation, and other similar programs. 3.2 — Homelessness Strategies: Suggests strengthening coordination between the City and local homelessness support services and adopt a "Housing First" approach. 3.2.X — Coordination: Suggests continuation of working with Kitsap County and service providers to provide outreach and offers for service and shelter for homeless individuals 3.2.X—Adopt a "Housing First" Approach: Suggests eliminating bureaucratic steps and places no criteria on sobriety, employment, criminal history, or completing a religious program before individuals are moved into a home. Decades of research have found that helping homeless people move off the street and into a home of their own is the most effective way to reduce long-term (chronic) homelessness for the most vulnerable people. 3.3 - Support Staffing Needs: Suggests funding, recruiting and hiring a housing coordinator to help implement the HAP, connect and collaborate with housing stakeholders, and promote more market -rate and affordable housing development in Port Orchard. 4 — Citywide Planning Strategies: Suggests actions related to the City's budget and updating the Comprehensive Plan. 4.X — Housing Element Updates: Suggests in the next Comprehensive Plan update, update the Housing Element to support the actions of the HAP and integrate new provisions required by state law. 4.X — Land Use Element Updates: Suggests reviewing the Land Use Element for potential updates on the following issues. 4.X.X — Corridor Zoning: Suggests reviewing the balance between residential and commercial land capacity and adjust the future land use map. 4. X.X — Commercial Uses in Residential Zones: Suggests reviewing the opportunity for allowing small neighborhood commercial uses in residential neighborhoods. 4. X.X — Parking: Suggests reviewing the need for minimum parking requirements citywide and review national case studies for best practices. 4.4 — Public Land for Affordable Housing: Suggests the consideration of rezonings, environmental assessments, pre -development activities, and partnerships to promote use of surplus public land for affordable housing. 4.4.X — Disposition Policy: Suggests formally adopting a surplus land disposition policy that gives the right -of -first -refusal to affordable housing developers or other community -determined uses. 4.4.X — Land Acquisition: Suggests the City identify and purchase underutilized or vacant properties that can be developed as affordable housing. 5 — Funding Strategies: Suggests actions related to the financing and funding of affordable housing and related issues like taxes, fees, and state law. 5.1 - Multifamily Tax Exemption Program 3 5.1.X— MFTE Overview: Suggests updating the MFTE program based on increased developer interest in multifamily and mixed -use projects to streamline requirements, balance affordability and foregone tax revenue, and take advantage of increased flexibility in statewide legislation. 5.1.X — Recommendations: Suggests — • Clarification of map and zoning of areas of MFTE eligibility, • Correcting definition of underutilized buildings, • Adding minimum density in units per acre to multifamily and mixed -use zones, considering changes to the method of income calculations for affordable units and conduct an audit of the program, • Considering removing transit proximity for affordable units, • Considering a height bonus for MFTE developments, • Streamlining requirements for Type 3 program, • Reducing the minimum number of units required for participation, and • Considering adding a 20-year MFTE program 5.X — Development Fee Adjustments: Suggests adjusting development fees for 2-4 unit buildings and some fee discounts for affordable housing while continuing to offer sewer and water exemptions for small ADUs. 5.X — Local Bank Funding: Suggests encouraging local banks to create a fund for affordable housing finance 5.X—Tax Increment Financing: Suggests exploring the potential to use Tax Increment Financing (TIF) for identified sites and projects in the Downtown and Waterfront areas. 5.X — Funding for ADU Development: Suggests exploring the possibility of partially financing or streamlining ADU development and permitting processes, particularly for lower -income homeowners. 5.X — Transit and Sidewalk Funding: Suggests evaluating expansion of the transportation benefit district to increase funding for transportation projects connecting housing to services. 5.X — State Advocacy: Suggests advocating for additional state investment in the Housing Trust Fund, condominium law reform, and Growth Management Act updates. 6 — Implementation: Suggests a planning matrix organizing the actions of the HAP. The City Council and Mayor will be involved in most or all action implementation through ordinances, resolutions, budgeting, and partnerships with other agencies. 6.X— High Priority Implementation: Identifies issues of high priority for implementation within the next 12 months. 6.X — Monitoring: Suggests developing a monitoring program to measure and report on outcomes related to housing actions. 4 Port Orchard Housing Action Plan LT, EO E5 N L. La dp. ;E-,lm First Draft - March 28,, 2023 Port Orchard Housing Action Plan - June 2023 1 DRAFT —March 28, 2023 Thank You Special thanks to the Port Orchard community for sharing your time, knowledge, and energy to shape this housing action plan that meets your needs and interests. Mayor Robert Putaansuu City Council Fred Chang John Clauson Shawn Cucciardi Scott Diener Cindy Lucarelli Jay Rosapepe Mark Trenary City Staff Nick Bond, Director of the Community Development Department Jim Fisk, Senior Planner Josie Rademacher Jacob Miller Consultant Team MAKERS Architecture & Urban Design: Bob Bengford, Scott Bonjukian, Markus Johnson Leland Consulting Group: Chris Zahas, Andrew Oliver Stakeholder Organizations Interviewed Port Orchard City Council and Mayor Kitsap Housing Authority Disney & Associates Port Orchard Chamber of Commerce Tarragon Contour Construction McCormick Communities Washington State This plan was supported by a Department of Commerce grant for cities to support housing affordability. Port Orchard Housing Action Plan - June 2023 1 DRAFT -March 28, 2023 Page 3 Contents Table of Contents Executive Summary .................... 1 - Background Information...... 2 - Regulatory Strategies........... 3 - Programmatic Strategies .... 4 - Citywide Planning StrategieE 5 - Funding Strategies ............... 6 - Implementation .................... Abbreviations ACS. American Community Survey, an annual product of the U.S. Census Bureau. ADU. Accessory dwelling unit. AMI. Area median income. CHAS. Comprehensive Housing Affordability Strategy, a product of the U.S. Department of Housing and Urban Development. GIS. Geographic information system. GFC. General facilities charge. HAP. Housing Action Plan. HUD. U.S. Department of Housing and Urban Development. LEHD. Longitudinal Employer -Household Dynamics, a product of the U.S. Census Bureau. MFTE. Multifamily tax exemption program. MSA. Metropolitan Statistical Area. OFM. Washington State Office of Financial Management. POMC. Port Orchard Municipal Code (city law). RCW. Revised Code of Washington (state law). 4 6 .13 .26 .36 .44 .52 Port Orchard Housing Action Plan - June 2023 1 DRAFT -March 28, 2023 Page 4 Executive Summary [TO BE COMPLETED] Port Orchard Housing Action Plan - June 2023 1 DRAFT —March 28, 2023 Page 5 Housing Actions and Strategies The housing actions are organized by broader strategy sections of this plan. The implementation timeline is an estimate of how long it will take to implement an action. There are also many sub -sections which may require different timelines if additional community outreach is needed, alignment with the City's annual budget process is necessary, or there is a desire to roll policy updates into the next major Comprehensive Plan update. See Section 6 for more details on implementation priorities. • • •Priority Regulatory Strategies Programmatic Strategies Citywide Planning Strategies Funding Strategies Next Steps [TO BE COMPLETED] Port Orchard Housing Action Plan — June 2023 1 DRAFT —March 28, 2023 Page 6 1- Background Information 1.1 - Project Purpose PLACEHOLDER 1.2 — Housing Needs A summary of Port Orchard's current and future housing needs is provided below. For more detail, refer to the complete HAP Existing Conditions and Housing Needs Analysis Report in the Appendix. Port Orchard is a fast-growing community with a 2022 population estimate of 16,400 and a 2044 population target of 26,087 residents.' The city has grown on average 4 percent annually since 2000 and is expected to grow at a rate of close to 3 percent over the next 20 years (excluding possible annexations), potentially exceeding countywide growth targets. Some of the city's growth has been due to annexations in the 2000s, but the continued forecast for rapid growth, as well as decreasing vacancy rates over the past decade, suggests an ongoing demand for housing in Port Orchard.2 Current permitting data indicates that housing in Port Orchard is being produced at a rapid rate.ln total, 5,198 units are in some stage of permitting citywide, and 2,482 of those units are planned to be completed between 2022 and 2024, of which 45 percent will be multifamily units.' This high rate of housing production will nearly double the city's housing inventory within the next several years. Even with this high rate of production, prices are still increasing as detailed below. About 60 percent of Port Orchard households are homeowners and 40 percent are renters. Nearly 70 percent of households are family households, and the average household size is 2.4 people.4 As shown below in Figure 1, there is a mismatch between household size and housing unit size, with larger housing units available compared to household sizes. This shows a need for increased supply of smaller housing units to better serve the variety of household sizes in the city. 1 2022 Population: Washington Office of Financial Management Postcensal Population Estimate. 2044 Population Target: Kitsap County Countywide Planning Policy Update, 2022. 2 Census -reported rental vacancy rates have declined from 7.8% to 5.8% between 2010-2020, CoStar, a commercial real estate database, showed multifamily rental vacancy rates declining from 6.5% to 3.5% between 2012 and 2022. 3 City of Port Orchard Permit Data 4 2020 American Community Survey Five -Year Estimates, Tables S2501, DP04. Port Orchard Housing Action Plan — June 2023 1 DRAFT -March 28, 2023 Page 7 Household Size Housing Unit Size Studio / 1 bedroom 10. bedrooms 3-person household 16°i° 2-person household 3 A& 34°i° bedrooms 41% Figure 1. Household Size and Housing Unit Size in Port Orchard, 2020. Source: 2020 American Community Survey 5-Year Estimates, Tables S2501 DPO4 Port Orchard's median household income (MHI) was $71,789 in 2020. This is $7,250 less than the Kitsap County median, though it has increased 21 percent since 2010 - a higher rate than county and statewide income increases over the same period. However, this increase was much more pronounced for homeowner households than renter households.' Overall, about eight percent of Port Orchard residents earn under $10,000 per year, compared to four percent countywide, and over a quarter of renters earn under 30 percent of the median family income (MFI).6 Lower -income Port Orchard residents face significant challenges paying for housing -70 percent of households earning under 30 percent of the MFI spend more than half of their income on housing costs, and 75 percent of households earning between 30 and 50 percent of the MFI spend over 30 percent of their income on housing costs.' This shows a need for deeply subsidized housing for Port Orchard's lower -income residents, corroborated by stakeholders who described over 1,000 people on the waiting list for housing vouchers administered by the Kitsap Housing Authority. In recent years, housing prices have risen rapidly in Port Orchard when compared with incomes, as shown below in Figure 2. Rents increased 28 percent and home values increased 56 percent between 2015 and 2020, compared to only a 15 percent increase in incomes over the same period. This shows that housing has become more difficult to afford for the average Port Orchard resident in recent years, a trend also seen across the country. As of 2020, the average 5 American Community Survey 2020 Five -Year Estimates, Table S2503, CPI Inflation Index 6 The Median Family Income for the Bremerton -Silverdale Metropolitan Statistical Area, as determined by HUD, was $102,500 in 2022. 7 HUD Comprehensive Housing Affordability Strategy (CHAS), 2015-2019 Port Orchard Housing Action Plan — June 2023 1 DRAFT —March 28, 2023 Page 8 Port Orchard household could afford a home worth about $303,012, but the typical home in the city was worth 1.5 times as much, $468,702.8 70% 60% 50°i° / 40% 30°i° 20% 10% 0% -10% -20% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Median Gross Rent Zillow Home Value Index Median Household Income Figure 2 Change in Home Prices, Rents, and Incomes in Port Orchard, 2010-2020. Source: Zillow, American Community Survey 2020 5-Year Estimates, Table S2503, DP04, Leland Consulting Group Kitsap County targets indicate that Port Orchard will see a demand for up to 4,804 new housing units by 2044. Figure 3 shows the breakdown of these units by household income level, based on Port Orchard's current income distribution. The breakdown of units by income is relatively even. It includes about 1,000 units over the next two decades for the lowest -income households which can only be met through regulated affordable (i.e., subsidized) housing, and nearly 1,000 units for households earning between 50 and 80 percent of the AMI (often referred to as "workforce" housing) which can be provided through a variety of channels including subsidized units, vouchers, other incentive programs such as MFTE, and filtering9 of existing units as new housing stock is built. There will also remain a demand for about 1,200 market rate housing units targeting households earning more than 120 percent AMI over the next 20 years. 8 Home affordability calculated using Freddie Mac interest rate as of December 2022, Zillow home price data, income data from 2020 American Community Survey 5-Year Estimates 9 "Filtering" refers to the process by which new housing units depreciate over time, becoming more affordable to lower -income households as other new units are added to the supply. Port Orchard Housing Action Plan — June 2023 1 DRAFT —March 28, 2023 Page 9 1,400 � 1,200 N O j 1,000 800 z 600 U) 400 a� z 200 0-30 30-50 50-80 80-100 100-120 120+ % AMI Figure 3. Housing Demand by Income Bracket in Port Orchard, 2022-2044. Sources: Leland Consulting Group, 2020 American Community Survey 5-Year Estimates, Kitsap County Countywide Planning Policies 1.3 — Racially Disparate Impacts While Port Orchard may not have explicitly racist policies in place today, many policies do have racially disparate origins and impacts. The practice of zoning emerged in the early 1900's and explicitly race -based zoning had to be banned almost immediately as a result of the 1917 Supreme Court case of Buchanan v. War/ey. After that decision, cities crafted less direct methods to divide people by race and class with zoning policies that are still prevalent today. The indirect methods largely rely on the differences of wealth, income, and tenure between peoples' race and ethnicities. In Port Orchard, for example, 40% of all households are occupied by renters. About 35% of White households are renters, while 58% of Hispanic and Latino households and 88% of Native Hawaiian/Pacific Islander households are renters.10 Therefore, policies that restrict the supply and price of rental housing have a disproportionate impact on people of color. Further, almost half of all renter -occupied households are considered cost - burdened, while just one in 10 owner -occupied households are considered cost -burdened. 70 Source: American Community Survey 2020 5-Year Estimates, B25003 Tables. Port Orchard Housing Action Plan - June 2023 1 DRAFT —March 28, 2023 Page 10 All households White Households Asian households Black households Hispanic and Latino households Other / Two or more race households Native Hawaiian / Pacific Islander... 0% 20% 40% 60% 80% 100% ■ Rent ■ Own Figure 4. Tenure by race. Source: ACS 2020 5-Year Estimates, Table B25003 series A common form of rental housing is multifamily (apartment) buildings, which are more limited in where and how they can be built in Port Orchard compared to where and how single-family homes are regulated. Zoning matters for social welfare because where people live makes a difference. Neighborhood quality can have significant effects on long-term outcomes like school performance, income, labor mobility, and health. It also contributes to the multi- Figure 5. Example of multifamily housing. generational wealth gap if some people are not able to purchase quality homes that increase in value as much over time as homes in higher -priced neighborhoods, resulting in smaller inheritances for descendants. People of color generally pay higher shares of their income for housing costs and have less savings for down payments, meaning the home prices they can afford are lower or they are forced to rent. Smaller homes which have lower costs are needed not only for people of color, but also Port Orchard's large share of small households (56% of households are made up of one or two people but only 37% of housing units are studio, one- or two -bedroom units). Occasionally, larger multi -bedroom homes are good options for people who want to split costs with extended family members or roommates, but apartments with three or more bedrooms are rare and there are few shared -living options like cottage clusters or triplexes available. Common racially disparate policies and practices at the local level include the following: • Minimum lot sizes Lack of available land zoned for multifamily housing and middle housing (like duplexes and townhomes) Port Orchard Housing Action Plan - June 2023 1 DRAFT -March 28, 2023 Page 11 • Multifamily housing only allowed in busy commercial districts, polluted industrial areas, in hazardous areas like floodplains, and/or near loud and unsafe arterial roads • Multifamily housing not being allowed near amenities like parks, schools, grocery stores, and healthcare facilities • Excessive minimum setbacks, building height limits, parking standards, historic preservation standards, and other restrictions that limit the housing capacity on individual sites, especially for multifamily and middle housing • Excessive fees, complicated processes, and unclear regulations, especially for small projects commonly undertaken by local homeowners and small investors like adding an accessory dwelling unit or building a duplex • Complete prohibitions on low-cost building materials • Lack of trees and park space in areas near multifamily housing or neighborhoods with lower incomes • Lack of low-cost transportation options like pedestrian/bike routes and transit service connecting multifamily housing to jobs and services Racially disparate impacts are not limited to Port Orchard and this issue has been gaining much -needed attention across the state and country, even earning a statement on zoning from the White House. Other city -level racially disparate impacts have historically included redlining, where people of color were not able to access loans and credit in certain neighborhoods; highways built through communities of color; and disinvestment in infrastructure like transit, schools, and parks in communities of color. This Housing Action Plan provides a number of strategies to address most of these issues, which focus on easing regulations and streamlining standards to make it easier to build middle housing and multifamily housing in more locations. 1.4 - Public Engagement [NOTE - SECTION TO BE COMPLETED TOWARDS END OF PROCESS] The Housing Action Plan was informed by early and continuous public engagement. Engagement was conducted to create a plan that meets the needs and interest of the Port Orchard community. Key activities included: • One-on-one interviews with X stakeholders • Housing survey with 140 responses • Public kickoff meeting and presentation at City Council (DATE) • Check -in meeting with existing conditions and housing needs analysis at City Council (DATE) Port Orchard Housing Action Plan - June 2023 1 DRAFT —March 28, 2023 Page 12 1.5 — State Law Updates Port Orchard should anticipate state preemption on several common types of development regulations which have some of the greatest impacts on housing affordability and site -specific feasibility. The rate of preemption laws on peripheral housing issues has been accelerating in recent years (documented in the HAP Existing Conditions and Housing Needs Analysis Report) and several major bills were proposed in the 2022 legislative session that will likely come around again (as of this writing, some similar housing proposals have been pre -filed for the 2023 legislative session). In some respects, Washington is following the lead of Oregon and California which have also passed major zoning preemptions over the last several years. In particular, there is a statewide and national movement toward ending single-family zoning; that is, zoning where the only permitted residential land use is detached, large lot single-family dwellings. Port Orchard has already mostly eliminated single-family zoning as its lowest intensity zones allow cottage courts and/or duplexes. Upcoming federal funding programs may also contain grant award incentives or preferences for cities that are ending single-family zoning in the interest of providing diverse housing choices and economic opportunities. Port Orchard can expect other possible statewide interventions on: • Common ADU regulations like size, parking, owner occupancy, and prohibition on subdivision • Minimum residential density requirements • Minimum parking requirements for multifamily housing and/or affordable housing While no single action by the Legislature can be predictable or assured, growing consensus on the statewide housing affordability crisis gives Port Orchard reason to stay updated on legislative proposals, updates to the Growth Management Act, and related laws. Port Orchard Housing Action Plan — June 2023 1 DRAFT —March 28, 2023 Page 13 2 - Regulatory Strategies While the City of Port Orchard does not directly supply or control the private housing market, it does shape what is possible on Port Orchard's land through zoning and development regulations. 2.1 — Allowed Uses Action: Allow more housing types in more residential zones to promote middle housing and affordable housing. Providing more flexibility to integrate a variety of housing options is an important tool to expanding housing supply and land capacity. In the HAP community survey, a supermajority of 70% of respondents support the concept to "Allow more housing types like duplexes, cottages, and townhouses in single-family neighborhoods if they're compatibly sized and designed." This concept was also supported by most stakeholders when it came up in interviews. Following public interest and an analysis of the situation by the consultant team, consider the following changes. 2.1.1 — NMU Zone The use table in POMC 20.39.040 allows multi -family of 5+ units in Neighborhood Mixed Use (NMU) zones, but the apartment building type is not permitted in NMU zones. This inconsistency should be corrected to allow the apartment building type in the NMU zones. 2.1.2 — Congregate Living Housir— Streamline the standards for congregate living housing. This type of housing operates similarly to single -room occupancy (SRO), dorms, or hostels and provides a dignified housing option for people with the lowest incomes. This form of housing historically served as an invaluable affordable housing option, but these buildings were mostly zoned and demolished out of existence starting in the 1970's." Conversions of existing buildings (such as aging hotels) may be more likely than new ground -up congregate living developments, but in either case the zoning code must be supportive for it to occur. Congregate living facilities are also restricted, being a conditional use in almost every zone they are allowed. This use has supplemental standards inserted within the definition (these standards should be located in Chapter 20.39 POMC) that include: • Residents must have leases of at least 30 days • The use must be in a countywide center and within one -quarter mile of transit service • The facility must have 24-hour resident management • The facility is prohibited from having medical care or social welfare services on -site (this would likely categorize the use as permanent supportive housing, see Strategy 2.1.4 below) "The Hotel -Spirit." Slate. July 2022. https://slate.com/business/2022/07/hotels-rental-market-housing- prices-shortage-soIution.htmI Port Orchard Housing Action Plan - June 2023 1 DRAFT -March 28, 2023 Page 14 Specific recommendations and considerations for congregate living housing: • Allow congregate living housing in some non-residential zones by -right, notably in the CMU zone. • Reduce minimum off-street parking to from 1.0 space/bedroom to 0.5 space/bedroom (see Strategy 4.2.3 for related actions). • Consider refining term names. For example, there's likely to be some confusion between the "Congregate Care" and "Congregate Living" terms. 2.1.3 — Adult Family Homes New state legislation passed in 2020, RCW 70.128.066, provides a way for adult family homes to have seven or eight beds. The standards and definition under POMC 20.39.100(10) should be updated accordingly. 2.1.4 — Supportive Housing Under RCW 35A.21.430 (2021), Washington cities may not prohibit permanent supportive housing or transitional housing in areas where multifamily housing or hotels are permitted (other parts of state law define "multifamily" as four or more units). This supersedes a similar 2019 law, RCW 35A.21.305. Similarly, emergency shelter and emergency housing may not be prohibited in any zones in which hotels are allowed. Port Orchard is mostly in compliance, except emergency shelter and emergency housing must also be allowed in the GMU zone, where hotels are allowed. Consider providing definitions which reference state law. , Supportive Housing Use Catecor�if a broader category is neededJ. Residential facilities intended to house individuals and families experiencing homelessness, or at imminent risk of homelessness, and paired with on -site or off -site supportive services designed to maintain long- term or permanent tenancy or to eventually transition the residents to independent living arrangements. Emergency housing. Defined by RCW 36.70A. 030. Emergency shelter. Defined by RCW 36.70A. 030, Permanent supportive housing. Defined by RCW 36.70A. 030. Transitional housing. Defined by RCW 84.36.043. See Strategy 4.2.3 for recommended parking standards on affordable housing projects. Some jurisdictions require operational plans and information -sharing on supportive housing uses. For example, the City of Bellevue requires registration information from applicants prior to certificate of occupancy with the following information (and it must be updated when it changes):12 12 Bellevue Municipal Code LUC 20.20.845.E.2, https://bellevue.municipal.codes/LUC/20.20,845.E.2 Port Orchard Housing Action Plan - June 2023 1 DRAFT —March 28, 2023 Page 15 • Name and contact information of property manager(s) and/or owner(s) who may be contacted in case of emergency or code violations • Name and contact information for on -site facility staff (if applicable) • Standard operating procedures plan for the facility, including: o The number of residents intended to be housed in the facility o A description of the supportive services provided to the residents of the facility, on site and off site, including names and contact information of service providers • A safety and security plan describing measures that the operator will employ to promote the safety of Supportive Housing occupants and surrounding residents; and • A code of conduct that applies to all individuals granted access to the proposed Supportive Housing use. Seattle has more limited requirements. The code offers a number of waivers and modifications for parking and design standards that are reviewed by the director. A community relations plan is required.13 2.2 — Building Types [THIS SECTION WILL BE UPDATED BASED ON STATE LEGISLATIVE ACTION — AS THOSE CHANGES ARE LIKELY MADE PRIOR TO ACTION ON THIS DOCUMENT] The permitted building types are unique additional layer of regulation in Port Orchard. The Regulating building types is common to form -based zoning. This approach works best in communities characterized by a regular street grid and consistent lot size patterns, which are lacking in some parts of the city. Some stakeholders identified code interpretations and comprehension as a barrier to middle housing development. This may be driving most builders and developers to follow the path of least resistance and continuing to produce what they know best, which are detached single-family homes and garden apartments. Reducing the complexity of the middle housing building types is a strategy to increase their chances of being produced. The simplest option is to remove the most of the building types and consolidate those critical dimensional standards into the zoning district standards. Some of the unique building types, however, still warrant their own special mix of dimensional and design standards. Many other codes catalogue such standards within their collective "use type" standards (POMC Chapter 20.39, Article II. Residential Uses is an obvious option). This section provides other recommendations on how to streamline the building type standards. 13 Seattle Municipal Code 23.42.057, https://I i brary. municode.com/wa/seattle/codes/municipal_code?nodeld=TIT23 LAUSCO_SUBTITLE_I11 LAUSRE_CH 23.42GEUSPR 23.42.057PESUHO Port Orchard Housing Action Plan - June 2023 1 DRAFT —March 28, 2023 Page 16 2.2.1 — Adjust Cottage Court Standards Under POMC 20.32.040, the minimum site size for a cottage court development is 22,500 square feet and an additional 4,500 square feet is needed per unit when there are six or more cottages. These standards apply regardless of the location, and have an unclear relationship to the separate minimum unit lot area of 1,200 square feet. Stakeholders have identified the minimum site size standards as a challenge, and it is unique among cottage housing ordinances across the region. Cottage developments can be built on smaller sites. Consider the following changes to provide much needed flexibility: Reduce the minimum number of cottages to four. This is standard amongst cottage housing codes in the region and provides greater flexibility for cottage courts on smaller sites. Reduce the minimum site size. Cottage footprints, setbacks, parking, and required open space will largely dictate how much space is needed. But if minimum sizes are still necessary (and accounting for a minimum of four cottages), consider 12,000 square feet for standard front - loaded lots and 10,000 square feet for lots with alley access. Adjust the minimum courtyard size standards. The minimum courtyard area is 3,000 square feet (minimum width 40 feet) with an extra 600 square feet per unit required when there are six or more cottages. This should be replaced by a streamlined approach which requires a minimum of 400 square feet of common courtyard space per cottage cluster (regardless of number of units) with minimum dimensions of 15-20 feet. These standards are more common across the region and provide adequate levels of open space. Allow duplex cottages in all zones where cottage courts are allowed to enable more efficient use of land and materials. They are prohibited by proxy through the maximum building footprint of 1,200 square feet. Duplex cottages have been developed in cities throughout Washington. 2.2.2 — Consolidate Duplex Types and Standards There are three forms of duplex building types and permit data shows almost no duplexes are being built. Of the approximately 2,200 units built in Port Orchard over the past decade (2012- 2022), a total of ten units (0.4%) were in duplex buildings. While the Building Types are relatively new (adopted in 2019), it is possible that complex regulations are one reason duplexes are not being produced in greater numbers. Consolidate "Duplex: Side -by -Side" and "Duplex: Back -to -Back" into a single building type called "Duplex." Similarly, the land use term "Duplex" should replace "Two-family" in Chapter 20.39 POMC for consistency. Also see related suggestions in Strategy 2.3.1 regarding minimum lot size and width standards. 2.2.3 — Rename the Fourplex Type Rename the Fourplex Type to Triplex/Fourplex. This building type is described as allowing 3-4 units, but its name is misleading and may cause code users to conclude triplex buildings are not allowed. Triplexes should be promoted similarly to duplexes as a middle housing option. Port Orchard Housing Action Plan - June 2023 1 DRAFT —March 28, 2023 Page 17 2.2.4 — Adjust Townhouse Type Standards Remove the minimum site size and width and let other zoning standards and market factors drive the land area needed for townhouse development. While 5,000 square feet is a small site to begin with, this would remove duplication in code and would improve flexibility in where and how townhouse units can be developed. Standards for open space, parking, setbacks, and landscaping would continue to apply and influence required land area and how townhouses are placed on a site. Also see related lot size and width suggestions in Strategy 2.3.1.Do not require townhomes to be on their own lots. Subdivision adds time, cost, and complexity to middle housing development. Like other middle housing, townhomes can have a variety of land ownership options and can be rentals. Removing this requirement in code provides more flexibility while retaining all design standards for townhomes. 2.2.5 — Consolidate the Live -Work Type Live -work has limited feasibility outside of the strongest urban markets and should be de- emphasized in the code. This housing type is relatively uncommon since only a small number of households are self-employed in businesses which can also be in their home in a separate space (excluding standard office work -from -home setups). Additionally, live -work units are often expensive since they need to be relatively large to accommodate the workspace. There is an opportunity to retain the live -work standards while streamlining the code; current code illustrations and the limitation of "six units in a row" indicate Live -Work is intended to be integrated into Townhouse buildings. It is recommended to amend the Townhouse building type section to note where standards differ for Live -Work configurations. The separate site area and width standards for Live -Work are proposed to be removed. Notations could also be added to explain Townhouses are allowed in the DMU, CC, and IF zones only if the development includes space designed for live -work use. U.6 — Adjust Shopfront House Standards This building type requires a minimum of two dwellings per lot and a maximum of two dwellings per lot, providing no flexibility in development options and likely preventing its use in most cases. Allow a range of 1-4 or 2-4 units per lot with this building type. 2.2.7 — Building Height All of the building types in Chapter 20.32 POMC have a maximum building height specified, but this standard is then either duplicated or overridden by zone -specific maximum building heights in Chapters 20.34 and 20.35 POMC. Maximum building height is a critical tool, and it should have clear, consistent standards. A unique case is cottages which are intended to be small. Port Orchard Housing Action Plan - June 2023 1 DRAFT —March 28, 2023 Page 18 It is recommended to remove the maximum building height from all building types, except for cottage courts and backyard cottages. Regulate accessory structure height limits in the zoning chapters. 2.2.8 — Minimum Private Useable Open Space Integrating more dwelling units onto a relatively small lot requires some careful planning to integrate the buildings, access and parking elements, and integrating usable open space in a manner that works for the residents and proper integration into the neighborhood. The Design Standards in Chapter 20.127 POMC require such usable open space for multifamily uses. However, detached houses, backyard cottages, cottage court, duplexes, attached houses, fourplexes, and townhouses are exempt from those standards. Recommendations in Strategy 2.3.1 call for relaxing lot dimensional standards for backyard cottages, duplexes (both types), attached houses, fourplexes, and townhouses. Such recommendation should be coupled with a requirement for minimum private usable open space for those building types. Specific suggestion for each building type: • Minimum Private usable open space per unit: 300 square feet (50% of the required usable open space may be satisfied through a rooftop patio or balcony). • Private usable open space cannot be parked or driven on, except for emergency access. • Minimum private usable open space dimension: 10 feet for each unit, except 6 feet for rooftop patio or balcony. • The front yard may be used as private usable open space, provided a low fence (between 16" and (INSERT MAX CURRENT FRONT YARD FENCE HEIGHT) demarcates the space. Alternative designs: • Spaces shared between two or three units is permitted, provided the shared open space dimension is 15 feet and the space is located adjacent to each unit. For townhouses with four or more units, shared open spaces must comply with 20/127.350(2)(b), On -site open space. !.2.9 — Ground Floor Elevation Nearly all of the Building Types require a minimum ground floor elevation of two feet. This adds significant cost to construction by requiring a taller foundation and the addition of ramps for ADA wheelchair access on buildings with four or more units. The purpose behind this type of standard is usually to promote a transition between the public and private realms and improve security and privacy for ground -floor residents. This is already addressed by the block frontage standards under POMC 20.127.230, which requires a combination of setbacks and/or raised elevation for ground floor residential units, depending on the context. The block frontage standards provide more nuance and options than the building type standard's simple two -feet measure. Suggestion: Reduce the minimum ground floor elevation from two feet to 16 inches and consider moving the elevated requirement for building types not located close to the street. Port Orchard Housing Action Plan - June 2023 1 DRAFT —March 28, 2023 Page 19 2.2.10 — Blank Walls Blank walls are regulated in the Design Standards in Chapter 20.127.460 POMC, which applies to multifamily uses with five or more units. For those building types that are subject to the Design Standards, such building types should simply refer to Chapter 20.127.460 POMC for blank wall standards. For those other building types where blank walls are regulated, consider applying a standard consistent with Chapter 20.127.460 POMC. For example, the "General Building" allows for a blank wall up to 50 feet, whereas POMC 20.127.460(2) limits a blank wall to 10 feet by 15 feet. This creates a conflict, and potentially encourages larger blank walls than should be permitted for creating compact, pedestrian -friendly centers and livable residential environments. 2.3 — Adjust Form & Intensity Standards PLACEHOLDER FOR INTRODUCTION TEXT 2.3.1 — Adjust Minimum Lot Dimensions Consider relaxing the minimum lot size and width provisions for "middle" housing/building types to reduce barriers to those housing/building types. Such action should occur in concert with requiring a minimum amount of private usable open space (see Strategy 2.4.2). Specific recommendations: R2 zone: • Retain current detached house lot dimensions. • For cottage courts, refer to POMC 20.32.040 and see Strategy 2.2.1 for updated suggestions for minimum site area. Exempt other "middle" building types from both minimum lot area and width standards. This includes backyard cottages, duplexes (both types), attached houses, fourplexes, and townhouses. R3 zone: • Retain current detached house lot dimensions. • For cottage courts, refer to POMC 20.32.040 and see Strategy 2.2.1 for updated suggestions for minimum site area. • Exempt other "middle" building types from both minimum lot area and width standards. This includes backyard cottages, duplexes (both types), attached houses, fourplexes, and townhouses. • For apartments, reduce the current 10,000 square foot lot size minimum to 7,000 square feet, with the option for 5,000 square foot lots where alley access is available. Reduce minimum lot width from 80 feet to 70 feet, with the option for 50-foot wide lots where alley access is available. Port Orchard Housing Action Plan - June 2023 1 DRAFT —March 28, 2023 Page 20 . tWOTiT-0i • Consider eliminating lot dimension standards entirely, particularly as detached houses are not allowed and there are enough other standards in place to help ensure that the form and intensity of development meets community objectives. R5 zone: Consider eliminating this zone, as there are no current mapped R5 zones and the proposed changes to R4 (including height bonuses) arguably make this zone unnecessary. There's an argument than more intensive development belongs in the mixed -use zones. If not eliminating this zone, consider eliminating lot dimension standards entirely for same reasons as in R4 zone noted above. R6 zone: • Retain current 4,000 square foot minimum lot size and 40-foot lot width for a detached house, but exempt other "middle" building types from both minimum lot area and width standards. This includes backyard cottages, duplexes (both types), attached houses, fourplexes, and townhouses. Commercial and mixed -use districts: Retain any existing minimum lot size and width provisions for detached house, but eliminate such standards for all other building types to maximize flexibility. Again, plenty of other standards are in place to help ensure that such building types are integrated in a compatible manner. 2.3.2 — Adjust Height Limits and Add Affordable Housing Bonuses The City should consider building height limit increases to increase the economic feasibility of multifamily and mixed -use development. New bonus height limits associated with the multifamily tax exemption (MFTE) program can also be used to incentivize greater production of multifamily housing generally and affordable (subsidized) housing. Most of these zones have relatively low height limits in the 35-40 feet range which has challenges for light wood frame construction. Construction costs per square foot for buildings between three and six stories are relatively constant, regardless of building height; allowing more stories allows more units and more revenue to cover higher costs, and per unit rent may also be more affordable for denser buildings. Another key cost item is elevators, which cost at least $100,000 and are required for buildings four stories and taller, but at four or five stories the economies of scale to pay for an elevator are stretched. Buildings up to six stories maximize the typical allowance of adopted building codes for light wood frame construction. Height limits of 65 feet can allow this, though some jurisdictions allow for taller wood structures above a concrete base. In addition, many jurisdictions assume residential floor -to -floor heights of 10 feet, but 11-12 feet is oftentimes preferred by designers Port Orchard Housing Action Plan - June 2023 1 DRAFT —March 28, 2023 Page 21 and builders for accommodating mechanical systems and energy code ventilation requirements, especially for taller buildings. Further, the City has objectives for increasing mixed -use developments and infill residential apartment development but does not consistently provide a regulatory framework to enable it. For example, the DMU, GMU, and CMU zones have current height limits of 38 and 40 feet which effectively allows three functional floors for most developments. The cost and risk of developing mixed -use structures and leasing ground -floor commercial space typically can be offset by a higher amount of residential floor area. Similarly, residential apartment development can benefit from a higher amount of residential floor area. Since the COVID-19 pandemic, developers are indicating increased risk associated with commercial development due to continued uncertainty about the retail and particularly office markets. This further increases the attractiveness of developments with a higher share of residential floor area. Additionally, the limits on number of floors in the Downtown area are out of sync with building height limits. The Downtown Height Overlay District (DHOD) allows heights that are almost an additional two floors more than the floors allowed in the district. The View Protection Overlay District (VPOD) have current height limits of 15 and 27 feet which effectively allows one- and two-story buildings. It is understood there is a long history of protecting views in the City's Downtown area. However, the Downtown area is one of the most favorable for affordable mixed -use and infill housing due to its transit connections and walkability. There is a current conflict between the objectives of the DHOD and the VPOD, and the goals for expanded housing affordability and choice. Consider reevaluating adjustments to the overlay districts with a minimum, that allows more floors within the building envelope in the DHOD. Other long-standing goals for downtown, such as the location of a grocery store in the area, are only likely to occur when the market demand for such a store is stimulated by a larger downtown resident population, which can be enabled through more housing development. Finally, note that private view easements are also an existing alternative mechanism for property owners to preserve views. Port Orchard has a broad set of multifamily and commercial design standards which would be used to mitigate increases in building height. [TO ADD TABLE TITLE & NUMBER] Base Height ProposedCurrent Proposed :. i Year Zone R4 Limit 45 Limit - L;FTE Participation 65 R5 (as first option suggest 65 deleting zone, otherwise 55 - consider suggestions here) Commercial Corridor 65 (CC) 35 45 Commercial Mixed 65 Use (CMU) 40 55 Neighborhood Mixed 65 Use (NMU) 35 45 Port Orchard Housing Action Plan — June 2023 1 DRAFT —March 28, 2023 Page 22 a7dwiaoLimit Base Height ProposedCurrent ProposedBonus Business Professional 40 Limit 55 IVIFTE Participation 65 Mixed Use (BPMU) Residential Mixed Use 35 45 (RMU) Downtown Mixed Use 38 45 55 (DMU) Gateway Mixed Use 38 45 65 (GMU) Ruby Creek Overlay 65 District 55 Downtown Height DHOD 3: 48 feet, three DHOD 3: 48 feet, four None Overlay District stories (DHOD) stories DHOD 4: 58 feet, five DHOD 4: 58 feet, four stories D H 0 D 5: 68 feet, five stories stories DHOD 5: 68 feet, six stories View Protection 15 feet Overlay District Mixed use shopfront: 27 (VPOD) feet General building: 27 feet 2.3.3 — Add Minimum Density and Housing Mix Renuirem Comprehensive Plan policies LU-11, HS-9, and HS-16 call for minimum densities at least in local centers. In addition, any locations where a multifamily tax exemption 12-year and 20-year program is available must allow at least 15 units per acre. Development at 15 units per acre is also the approximate threshold where fixed -route transit service becomes viable. Minimum density standards can help provide consistency with state law and a level of expectation to leverage public infrastructure investments and maximize the efficiency of land where compact and walkable development is desired. In order to reduce complications for infill development and promote economies of scale, the minimum density requirement could apply only to new development on above a certain site size (such as a'i4 acre or'h acre). It would not apply to developments and subdivisions which are vested, nor to commercial developments with no residential component. Port Orchard Housing Action Plan — June 2023 1 DRAFT —March 28, 2023 Page 23 [TO ADD TABLE TITLE & NUMBER] Zone R2 Proposed Minimum Density units/acre) 8 Zone Notes Located citywide R3 12 Located citywide R4 15 A handful of locations citywide, mostly undeveloped R5 R6 10 Eastern McCormick area, mostly undeveloped GMU 25 Downtown -adjacent. CC Located citywide CMU 25 Located citywide BPMU 15 Downtown -adjacent and Tremont medical area. Could apply only to multifamily development. NMU 12 Downtown -adjacent near Kitsap County campus; should have similar standards as abutting BPMU. A related option for large residential subdivisions is to integrate a housing mix requirement. For example, the City of Carnation code CIVIC 15.40.105 requires that subdivisions have no more than 60 percent of total dwelling units be the same type; at least two housing types are required in subdivisions less than 10 acres, and at least three housing types are required in larger subdivisions. 2.3.4 — Religiously -Owned Land Density Bonus Under state law RCW 35A.63.300 (2019), upon request from a religious organization, cities planning under the GMA must allow an increased density bonus on consistent with local needs for affordable housing development. The density bonus must be contingent upon the religious organization's land being used for housing occupied exclusively by low-income households for at least 50 years. The density bonus can be used for any type of housing, ranging from single- family to multifamily. Port Orchard is home to a number of churches. Most are on properties ranging from 0.5 to 5 acres and are located in residential or mixed -use neighborhoods. They are mostly zoned Civic and Institutional, which does not allow any types of residential uses. The state requirements would need to be implemented for an update to underlying zoning, creation of a new overlay zone, or property -specific development agreements. Port Orchard has not yet received any such request but might consider the implications and begin proactively reaching out to religious organizations to see if they are interested in developing affordable housing on their properties.2.4 — Adjust Other Standards Port Orchard Housing Action Plan - June 2023 1 DRAFT —March 28, 2023 Page 24 2.4.1 — Family Definition Amend the definition of "family" under POMC 20.12.010 to be consistent with state law RCW 35A.21.314 (2021). Cities may not regulate or limit the number of unrelated persons that may occupy a household or dwelling unit. A simple approach is shown below. 'Family' means any number of persons related by blood, marriage or legal adoption and including foster children and exchange students living together as a single housekeeping unit. 'Family' also means the following when living together as a single, not -for -profit housekeeping unit., (1) A group of not ore th,n four related and unrelated adults and their related minor children, hi t not to avneed a total of eight rei ted end unreiated garcons• or (2) Not more than eight disabled persons, whether adults or minors, living together in a consensual residential living arrangement, but not to exceed a total of eight persons, or (3) State licensed adult family homes as defined by RCW 70.728. 010,- or (4) State licensed foster family homes and group care facilities as defined in RCW 74.15.020. 2.4.2 — Elevator Penthouse As more multifamily and mixed -use housing is built in Port Orchard, details like elevator design are important factors for livability and functionality. Ten -feet tall elevator cabs are desirable for residents to move the largest pieces of furniture which cannot fit through stairwells. Also popular are elevator -accessible roof decks that help meet developments meet residential open space requirements. However, these two features are difficult to combine due to the limitations of POMC 20.40.050(2)(c)(i). This subsection limits structures screening elevators to 10 feet in height where the elevator is accessing a roof deck. Elevator technology is evolving. Over the past decade the "Machine Room -Less" elevator has become a cost-effective option for buildings over four stories tall and it avoids the environmental impacts of hydraulic piston designs which penetrate deep into the ground below the building (a technology which was previously typical for buildings up to eight stories). The Machine Room -Less design uses a hoistway and mounts mechanical equipment on top of the cab, which increases the overrun above the roof level beyond that assumed by the code. Recommendation: To achieve a 10-feet interior cab dimension and accounting for the assembly of the penthouse structure, it is recommended to increase the code allowance to 17 feet. 2.4.3 — Parking Lot Landscaping Under POMC 20.128.070(3), reduce and simplify minimum planting area widths to allow more efficient use of land. This is critical for smaller lots where infill multifamily and townhouse development may occur, but still meet the purpose of parking lot landscaping. Consider reducing the minimum width of landscaping along public streets to 7.5 feet regardless of the block frontage designation, and to five feet along internal lot lines. Port Orchard Housing Action Plan - June 2023 1 DRAFT -March 28, 2023 Page 25 Also, consider making parking lot landscaping its own code section so it is easier to find in tables of contents and because it is frequently used. For example, convert subsection (3) to new 20.128.075. 2.4.4 - Service Areas and Mechanical Equipment Under POMC 20.127.360, some minor clarifications can be made about applicability to offer some more flexibility. Subsection (2) currently acts as a title but could be expanded with examples to replace the parenthetical in subsection (2)(a), to read: "(2). Location ofground related service areas and mechanical equipment. Ground -level building service areas and mechanical equipment includes loading docks, trash collection and compactors, dumpster areas, storage tanks, electrical panels, HVAC equipment, and other utility equipment. if any such elements are outside the building envelope at ground level, the following location standards apply." Under subsection (3)(a)(iv), say collection points must be located and configured "to the extent practical" to help moderate construction costs in certain situations. Under subsection (5)(b), consider removing the prohibition on perforated metal as a rooftop equipment screening material since it is cost effective and has a variety of design options. Port Orchard Housing Action Plan — June 2023 1 DRAFT —March 28, 2023 Page 26 3 - Programmatic Strategies In addition to regulatory considerations, this section discusses strategies which Port Orchard can consider for increasing housing opportunities through programs addressing displacement, tenant protections, and strategies for reducing homelessness. 3.1- Anti -Displacement Strategies Action: Adopt local tenant protections and consider other regulatory and programmatic anti -displacement actions to improve the stability of renter households. As discussed above in Section 1.3, exclusionary zoning practices have led to numerous facets of housing inequity across the U.S. Additionally, redevelopment programs implemented in earlier decades resulted in both intentional and unintentional displacement of lower -income residents and people of color in many communities. Therefore, strategies to mitigate or prevent displacement have gained much attention in recent years, and a variety of approaches have emerged. Overall, the effectiveness of anti -displacement strategies is highly neighborhood- and community -specific, and recent academic research has found decidedly mixed results of many approaches.14 While most strategies have focused on minimizing displacement pressures, it should be noted that not all displacement is involuntary (there is always some movement in the housing market), and displacement can sometimes mean moving "up" to a higher opportunity neighborhood. Increasing housing production overall, including market -rate housing production, is an important tool to moderate price increases and therefore make housing more affordable to low and moderate income families and prevent displacement.15 This is particularly true in hot housing markets and if the new housing units are comprised of a variety of housing types. A study in California found that both market -rate and subsidized housing production reduced displacement rates in San Francisco, but subsidized housing production decreased displacement risk more significantly.16 The same study also found that the positive effects of production on displacement at a hyperlocal neighborhood scale may differ depending on the complex neighborhood context. One downside of increased production is the time it takes to build new housing, which can be lengthy not only for construction, but also design and permitting. The most comprehensive academic survey of anti -displacement strategies to date suggests that in addition to production, neighborhood stabilization and tenant protection policies have the most immediate impact on 14 Chapple, Karen and Anastasia Loukaitou-Sideris. "White Paper on Anti -Displacement Strategy Effectiveness." Prepared for the California Air Resources Board, February 2021. 15 Been, Vicki, Ingrid Gould and Katherine O'Regan. "Supply Skepticism: Housing Supply and Affordability." New York University Furman Center, August 2018. 16 Zuk, Miriam and Karen Chapple. "Research Brief. Housing Production, Filtering, and Displacement: Untangling the Relationships." UC Berkeley Institute of Governmental Studies. May 2016. Port Orchard Housing Action Plan — June 2023 1 DRAFT —March 28, 2023 Page 27 mitigating displacement.17 The following are suggestions for proactive policies that Port Orchard can adopt to further prevent displacement. A study from Common Good Labs analyzed data on thousands of U.S. neighborhoods over 15 years (2000 to 2015) to understand how poverty is reduced without community displacement." It found eight indicators that are associated with inclusion, increased prosperity, and decrease in poverty. Three of the indicators can be most directly affected by municipal policies, noted in the table below. [TO ADD TABLE TITLE & NUMBER] Inclusion Indicator Increased housing density How Port Orchard Can Affect This Indicator Zoning standards that directly regulate the density of residential development. Higher rates of Zoning and subdivision standards that allow and encourage a greater variety of small homeownership and attached housing types (e.g., small single-family, cottages, townhomes, flats, condos). A New York Times report finds that the production of entry/starter homes has never been lower than today (particularly homes smaller than 1,400 square feet).19 Presence of community Financial and/or staffing support for community organizations. organizations Zoning standards that provide low-cost commercial space and/or municipal facilities with space for community organizations to have offices, host events, run recreation and cultural programs, etc. Figure 6. Inclusion indicators 3.1.1 — Local Tenant Protection Washington State sets the baseline for the landlord -tenant relationship through the State Residential Landlord -Tenant Act, RCW 59.18. Washington State regularly amends the Act as summarized in the HAP Existing Conditions and Housing Needs Analysis Report. According to the Attorney General's Office, there is no centralized enforcement mechanism for the RCW, and so it is incumbent upon landlords and tenants to either self -remedy violations, seek counseling or low-cost legal help from non-profit organizations, and/or resolve disputes through the courts. Local ordinances are enforced by the local jurisdiction. Cities are free to adopt additional or more stringent regulations than those provided by the state (with the exception of market -rate rent control), and numerous Washington communities have done so. Port Orchard has not enacted any local tenant protection ordinances. 17 Chapple and Loukaitou-Sideris. 18 "Reducing poverty without community displacement: Indicators of inclusive prosperity in U.S. neighborhoods." Brookings. September 2022. htips://www.brookings.edu/research/reducing-poverty-without-communitym displacement-indicators-of-inclusive-prosperity-in-u-s-neighborhoods/ 19 "Whatever Happened to the Starter Home?" The New York Times. September 2022. hitps://www.nytimes.com/2022/09/25/upshot/starter-home-prices.html Port Orchard Housing Action Plan — June 2023 1 DRAFT —March 28, 2023 Page 28 The King County Bar Association (KCBA) provides a model tenant protection ordinance within the framework of Washington State law. This is summarized in the table below. [TO ADD TABLE TITLE & NUMBER] Local Tenant Protection Option Other Considerations and Notes Rents and Payments Notice of monthly rent increases 90-180 The state law default is 60 days notice per RCW 59.18.140. Upon days before the effective date, with more receipt of notice, allow tenants to terminate tenancy early without notice required for larger increases further payment except pro rata rent. No increase in rent allowed if the property Poor conditions means the dwelling unit has defective conditions is in poor condition making it unlivable, a request for repairs has not been completed, or the property is otherwise in violation of RCW 59.18.060. Increases over 10% of monthly rent over a The tenant must be notified this is an option in every rent increase 12-month period requires landlord to pay notice regardless of the increase amount. The assistance can be relocation assistance for economically- valued in a number of ways — the KCBA model bases it on three displaced tenants. times the monthly rent amount. Optionally, this tool could require relocation assistance for physical displacement as well (due to property renovations or demolition). Move -in fees capped at one month's rent Allow up to a six month installment plan which commences upon and require offer of installment plans move -in. This helps lower income tenants manage move -in fees that can be many thousands of dollars. Caps on rent payment late fees The KCBA approach is a cap of $10 per month and the tenant is not responsible for any legal fees or other services. Leases must allow rent to be paid on This allows tenants to adjust the due date of rent payments if the different days of the month tenant has a fixed income source (e.g. a paycheck lag after the first of the month or a social security payment). A landlord shall not refuse to lease to tenants who request this. Evictions and Discrimination Require cause to evict as specified in the Only allow for evictions for: 1) failure to pay rent after receiving all lease agreement notices required; 2) substantial breach of a non -monetary term of the lease and all steps to resolve it have failed within the time required; or 3) the landlord seeks to remove the unit from the market with honest intent (with 120 days notice). Banning discriminatory, deceptive, and Prohibits inquiries or verification requirements based on immigration unfair practices in the rental market or citizenship status, using social security numbers as a method of proving financial eligibility, and representing that a unit is not available when it is in fact available. Also prohibits requiring that a lease be signed by children and deceptive omissions and practices like confusing lease terms or taking advantage of a lack of understanding by tenants. Administration Rental unit registration and inspection The purpose of such programs is to ensure rental housing meets programs standard living conditions. Registration includes property address, contact information, list of rental units, and condition of the housing units. Fees may be imposed and re -registration is required with new ownership. Figure 7. Tenant protection options No particular set of tenant protections is recommended as part of this HAP. The Port Orchard community and decision makers are encouraged to use this "menu" of options as a basis for Port Orchard Housing Action Plan — June 2023 1 DRAFT —March 28, 2023 Page 29 continued discussion. Port Orchard can look to other communities like Burien and Kenmore that have adopted some of these protections. 20, 21, 22 Longer rent increase notice time, move -in fee caps, and economic/physical relocation assistance are some of the strongest anti -displacement strategies available for low-income residents forced to move, giving them an opportunity to find new housing in the same community within a reasonable amount of time. Any new regulatory action would require some degree of effort, ranging from education and outreach to increased staffing and resources for monitoring and enforcement. Regulatory action could also be considered at the regional level to provide consistency for landlords and property management companies working across multiple Kitsap County jurisdictions. 3.1.2 - Other Anti -Displacement Strategies Strategic Acquisition of Existing Multifamily Housing To better retain affordable housing, the City of Port Orchard should work with Housing Kitsap, land trusts, and other non-profit providers to identify naturally occurring affordable housing and multifamily housing with income restrictions or covenants that are close to expiration. Funds should be identified to acquire as many such properties as possible to avoid displacement of low- or moderate -income residents. This practice preserves existing communities and retains long-term affordable housing stock at a lower cost than development of new affordable housing. Tenant Legal Services Eviction rates have been shown to drop when tenants facing eviction have access to legal representation. The Washington State Office of the Attorney General has a comprehensive list of resources for tenants facing legal issues, including free phone assistance from the Northwest Justice Project for low-income tenants statewide.23 Contacts and guidance could be provided alongside or in addition to the homeless services directory (see Section 3.2). Tenant Opportunity to Purchase A tenant opportunity to purchase program, such as the one instituted in Washington, D.C. in 1980, gives tenants the first right to purchase their unit if it is being converted into a condominium. In D.C., a study of the program showed this helped 58% of eligible tenants purchase their unit.24 The D.C. program has also resulted in the creation of many limited equity 20 "City of Burien, Washington, Ordinance No. 804." October 2022. https:/Zburienwa.civicweb. net/fi lepro/documents/33975/?preview=76250 21 City of Kenmore, Washington, Ordinance No. 22-0545." March 2022. https://kenmore.civicweb.net/filepro/documents/118191 /?preview=119244 22 "Five Seattle suburbs added new landlord -renter laws this year. Here's what they do." The Seattle Times. December 15, 2022. https://www.seattletimes.com/seattle-news/politics/five-seattle-suburbs-added-new-landlord-renter- laws-this-year-heres-what-they-do/ 23 'Residential Landlord -Tenant Resources." Washington State Office of the Attorney General. https://www.atg.wa.gov/residential-landlord-tenant-resources 24 Chapple, Karen and Anastasia Loukaitou-Sideris. "White Paper on Anti -Displacement Strategy Effectiveness." Prepared for the California Air Resources Board, February 2021. Port Orchard Housing Action Plan — June 2023 1 DRAFT —March 28, 2023 Page 30 cooperatives when tenants work together to purchase a building being converted to condominiums.25 Rental Assistance Programs Rental assistance programs help low-income tenants pay rent in moments of hardship. Such a program can be very helpful in preventing families and individuals from becoming homeless and help stave off eviction and displacement. However, rental assistance programs are also relatively expensive and may have limited reach in a city of Port Orchard's size. One option would be to investigate a temporary rental assistance fund for eligible low-income renters which can provide assistance for 1-3 months when a tenant is experiencing a financial crisis. Housing Rehabilitation Some low-income households are unable to afford ongoing maintenance on their homes, particularly older housing units. This can lead to displacement if the homes become uninhabitable or the home is sold at a low price. Many cities and counties in Washington, including Vancouver, Spokane, and Pierce County for example, provide no- or low -interest loans to qualifying low-income homeowners to help repair and rehabilitate their homes .26, 27, 28 Some programs do not require repayment of the loan until after the house is sold, and others defer payments if residents cannot afford them, or waive interest for disability modifications. These programs are funded by a variety of sources, including city or county affordable housing funds, CDBG block grants from HUD, or HOME Investment Partnership programs. Community Control of Land There are several models of cooperative or shared land ownership which have been used to remove land speculation and market pressures from ownership housing and provide affordable and stable ownership opportunities for lower- and moderate -income households. Such organizations have mostly taken the form of cooperatives and community land trusts (CLT), or a combination of both approaches. In a community land trust, the land is held in trust by a nonprofit or city and only the housing unit is bought and sold, usually with permanent affordability restrictions in the covenant. Although this can reduce the amount of equity which can be built by buying and selling a home in a CLT, it does create opportunity for households whose incomes would typically exclude them from homeownership. In a co-op model, residents own shares in the land or buildings (depending on the model) and pay affordable monthly payments with limited equity to residents. One Oregon model showed 25 "Tenant/Community Opportunity to Purchase." PolicyLink. https://www.policylink.ora/resources-tools/tools/all-in- cities/housing-anti-displacement/topa-copaa 26 "Housing Rehabilitation Loan Program." City of Vancouver. https://www.cityofvancouver.us/eph/paae/housing- rehabilitation-loan-prog ram 27 "Home Rehabilitation." City of Spokane. https://my.spokanecity.ora/housing/affordable/ 28 "Home Rehabilitation Loan Program." Pierce County. https://www.piercecountywa.aov/3093/Home-Rehabilitation- Loan-Program Port Orchard Housing Action Plan — June 2023 1 DRAFT —March 28, 2023 Page 31 that combining a CLT and co-op yielded opportunities for homeownership for households earning 30-60% of the AM1.29 Overall, the largest barrier to community land control models is lack of funding for ownership affordable housing to jumpstart these types of organizations.10 Foreclosure Assistance Foreclosure assistance can take the form of financial support to homeowners facing foreclosure, similar to the rental assistance programs described above. Additionally, foreclosure assistance can take the form of technical assistance and counseling to households at risk. A study conducted by the Urban Institute during the Great Recession found that households that received counseling were more likely to avoid default and modify their loans to be able to keep making payments.31 Such a program could be provided by the city or in partnership with another organization. Living Wage Ordinance In the Port Orchard area, the hourly wage needed to afford the average two -bedroom apartment is $32.69 an hour.32 The minimum wage in Port Orchard is the default Washington State minimum wage of $15.74 per hour. A living wage ordinance requires a higher minimum wage than that required by state law, which can help reduce housing cost burden. Local ordinances are not widespread in Washington; only the cities of Seattle, SeaTac, and Tukwila currently have minimum wages higher than the statewide minimum.33 Childcare and Early Education Subsidies Subsidizing early education is another way to help lower -income households who are unable to afford housing, as well as improving lifelong outcomes for children. Washington State provides financial assistance for child care for low-income families through the Working Connections Child Care subsidy. Other municipalities in Washington also provide childcare subsidy, such as Seattle's Child Care Assistance Program and the King/Pierce County Child Care Resources subsidy program for families experiencing homelessness. 29 "A Case for Public Investment in Shared -Equity Homeownership." SquareOne Villages. September 2020. https://olis.oregonlegislature.gov/liz/2021 R1/Downloads/PublicTestimonyDocument/20717 30 Gabobe, Nisma. "How Can Cities Move The Needle on Community Land Trusts?" Sightline Institute. August 2021. https://www.sightline.org/2021 /08/23/how-can-cities-move-the-needle-on-community-land-trusts/ 31 Chapple, Karen and Anastasia Loukaitou-Sideris. "White Paper on Anti -Displacement Strategy Effectiveness." Prepared for the California Air Resources Board, February 2021. 32 National Low Income Housing Coalition, "Out of Reach: The High Cost of Housing." 2022. https://nlihc.org/oor/zip?code=98367 33 "Minimum Wage", Washington State Department of Labor & Industries. https://www.Ini.wa.aov/workers- rights/wages/minimum-wage/ Port Orchard Housing Action Plan — June 2023 1 DRAFT —March 28, 2023 Page 32 3.2 — Homelessness Strategies Action: Strengthen coordination between the City and local homelessness support services and adopt a Housing First approach. Homelessness is a government concern because it relates to the health, safety, and welfare of individuals and the community at-large.34 This housing action plan addresses homelessness because the production and price of housing, which is affected by City policy, is directly correlated to the rate of homelessness.35 At the national level, every $100 increase in median rent is associated with a nine percent increase in the estimated homelessness population, even after accounting for demographic and economic characteristicS.36 Kitsap County conducts a point -in -time count of people experiencing homelessness countywide each year, typically in January. In 2022, the count was conducted in February instead. The count encompasses both sheltered and unsheltered people and is conducted during one 24-hour period each year. Therefore, the number is generally considered to be an undercount of the true population experiencing homelessness. In February 2022, 563 individuals were experiencing homelessness countywide, of which 136 were in transitional housing, 244 in emergency shelters, and 183 unsheltered. Of the 183 unsheltered residents surveyed, 23 percent, or 42 people, were in Port Orchard. Countywide, 67 percent of those surveyed reported becoming homeless due to health or mental health issues, 58 percent due to job loss, 40 percent due to loss of housing, 35 percent due to family conflict, and 25 percent due to substance use.37 Port Orchard staff should continue to monitor the annual point -in -time count and support the county as necessary to ensure consistent data collection on the extent and changes in the homeless population in the city. 3.2.1 — Coordination The City does not directly offer any homeless shelters or transitional housing. Continue working with Kitsap County and service providers to provide outreach and offers for service and shelter for homeless individuals. This could include creation of a standardized directory of support services with available times and contact information (such as food banks, shelters, counseling, public transit, etc.), and distribute it on the City website and in print with local service providers. Assign a City staff person to contact each service at least monthly to maintain and update the directory. 34 "Homelessness — Common Questions & Answers." Washington State Department of Commerce. January 2019. https://www.skagitcounty.net/HumanServices/Documents/Housing/Homelessness%20FAOs°/o2001-2019.pdf 35 "Homelessness is a Housing Problem." Greg Colburn and Clayton Page Aldern. https://homelessnesshousinaproblem.com/ 36 "How COVID-19 Could Aggravate the Homelessness Crisis?" August 2020. United States Government Accountability Office. https://www.gao.gov/blog/how-covid-19-could-aggravate-homelessness-crisis 37 Kitsap County Point In Time Count. https://www.kitsapgov.com/hs/Pages/HH-Point-in-Time.aspxx Port Orchard Housing Action Plan — June 2023 1 DRAFT —March 28, 2023 Page 33 3.2.2 — Adopt a "Housing First" Approach Decades of research have found that helping homeless people move off the street and into a home of their own is the most effective way to reduce long-term (chronic) homelessness for the most vulnerable people.31 This is because it is extremely difficult or impossible to address the personal, financial, mental, or physical problems that underlie homelessness while simply trying to stay alive. The "housing first" approach eliminates bureaucratic steps and places no criteria on sobriety, employment, criminal history, or completing a religious program before individuals are moved into a home. When someone is drowning, it doesn't help if a rescuer insists the victim learn to swim before bringing them to shore. They can address their issues once they are on solid ground with private space, a stable address, and the dignity of meeting basic needs like food, warmth, and bathing. This approach is less costly to taxpayers than the combined costs of roving service contacts, emergency room visits, jail and shelter stays, towed vehicles, and maintenance of public spaces. Success stories and lessons abound from places as varied as Houston, TX, Columbus, OH and Salt Lake City, LT. The provision of homes can be done indirectly through vouchers, in which public funding directly subsidizes the cost of a market -rate rental unit, or directly through publicly owned housing. The type of housing is oftentimes and preferably in the form of apartments which are the cheapest type of housing to build and operate per unit. Sometimes existing apartment or motels are purchased, or a warehouse can be renovated for residential use. "Tiny home villages", which are rapidly constructed on vacant sites or parking lots, may be appropriate but only on a temporary basis since they are not as durable, weather-proof, or livable as permanent structures. "Housing first" includes intensive wraparound social services and case management for the residents, either on -site or off -site. These services usually include support for people living with complex and disabling behavioral health or physical health conditions, addiction treatment, and employment assistance. Research has found that an overwhelming majority of permanent supportive housing residents eventually stabilize their lives and health enough to move to market -rate housing. The "housing first" policy has its limitations. It can only work if housing and service providers agree on the approach, if there is enough supply of housing available to work with at different income levels, and there is adequate long-term funding. All three requirements will require strategic planning and time to develop. To that end, this HAP recommends the following: Convene a meeting of all relevant homelessness stakeholders to discuss the "housing first" approach • Adopt a "housing first" policy in the Comprehensive Plan • Regularly survey and monitor the scale of the homeless population 38 "Homelessness research: A guide for economists (and friends)." 2019. https://www.sciencedirect.com/science/article/abs/pii/Sl 051137718302109 Port Orchard Housing Action Plan - June 2023 1 DRAFT —March 28, 2023 Page 34 • Provide or seek new funding for supportive housing such as rent vouchers or a City - owned supportive housing development • Study alternatives for providing supportive housing with City funding or grant funding • Inventory hotels/motels which could be candidates for purchase and conversion to permanent supportive housing • Explore programs and partnerships that could enable more social, health, and human care services to establish branch locations in Port Orchard. 3.3 - Support Staffing Needs Action: Fund, recruit, and hire a housing coordinator to help implement this Housing Action Plan, connect and collaborate with housing stakeholders, and promote more market -rate and affordable housing development in Port Orchard. A housing coordinator would be a specialized position in the Community Development Department that promotes implementation of the Housing Action Plan and provides long-term policy support and relationship -building among Port Orchard's residents, landlords, developers, human service providers, and City staff. This could be a permanent position or, at a minimum, a two year position focused on implementing the Housing Action Plan. Key responsibilities for the position should include: • Implement the actions and strategies of the Housing Action Plan • Plan, organize, coordinate, and implement the work plan and policies related to the City's housing policies, projects, and programs. Study, evaluate, and recommend housing policies and procedures. • Serve as the City liaison to other departments and advisory boards on housing issues related to housing policy and provide citywide leadership and coordination on housing policy issues. • Oversee and manage the City's housing funds including the housing sales tax and Community Development Block Grant funds. Monitor other state funding and grant opportunities and write applications for funding, including joint applications with partner agencies. • (If implemented) Administer and monitor the MFTE program and provide guidance for property owners • Monitor housing production, the number and location of affordable housing units, and the number of unhoused people in Anacortes and support PCED department reports on housing and demographic trends • Build relationships with community partners in the non-profit, public, and private sectors, including acting as liaison to the Anacortes Housing Authority, Anacortes Family Center, and the Anacortes Community Health Council Port Orchard Housing Action Plan - June 2023 1 DRAFT —March 28, 2023 Page 35 • Market Anacortes to the residential real estate industry and manage inquiries, with a focus on promoting the qualities of the town, economic development opportunities, the friendly regulatory environment, and any financial incentives available • Recruit human service providers and senior housing developers to locate and build facilities in Anacortes • Connect businesses and prospective residents to housing listings and providers • Connect tenants and landlords to resources help resolve disputes • Educate property owners and developers on development regulations and site -specific opportunities and share resources such as case studies, best practices, property maintenance standards, and property tax resources • Monitor changes to the Growth Management Act and related state laws on housing Qualifications for the position should include: • Bachelor's degree in planning, real estate, public administration, finance, economics, business, or other fields where the knowledge and skills can translate to the responsibilities of the position. • Considerable (3-5 years) experience in program management, affordable housing policy, community planning, public policy, real estate finance or development, business administration, or economic development. • Proficiency with Microsoft Office and other software related to planning operations. The ideal candidate will: • Have a creative, open-minded, and pragmatic attitude. • Thrive in a fast -paced, team -based environment while also being able to work independently. • Clearly communicate ideas and concepts. • Have strong organizational and data analysis skills. Port Orchard Housing Action Plan - June 2023 1 DRAFT —March 28, 2023 Page 36 4 - Citywide Planning Strategies These actions relate to the City's budget and updating the Comprehensive Plan. 4.1— Housing Element Updates Action: In the next Comprehensive Plan update, update the Housing Element to support the actions of this Housing Action Plan and integrate new provisions required by state law. Recent updates to the Growth Management Act require some updates on data and goals/policies for the Comprehensive Plan's Housing element. Many of these required updates overlap with the data and objectives provided in this Housing Action Plan, though some additional work may be needed. In addition to statements of goals, policies, objectives, and mandatory provisions for the preservation, improvement, and development of housing, updated RCW 36.70A.070(2) (2021) now requires: • An inventory and analysis of existing and projected housing needs that identifies the number of housing units necessary to manage projected growth including: o Units for moderate, low, very low, and extremely low-income households o Emergency housing, emergency shelters, and permanent supportive housing • Goals and policies for moderate density housing options including, but not limited to, duplexes, triplexes, and townhomes • Identify sufficient capacity of land for housing including, but not limited to, government - assisted housing, housing for moderate, low, very low, and extremely low-income households, manufactured housing, multifamily housing, group homes, foster care facilities, emergency housing, emergency shelters, permanent supportive housing, and consideration of duplexes, triplexes, and townhomes • Makes adequate provisions for all economic segments of the community, including: o Low, very low, extremely low, and moderate -income households o Documenting programs and actions needed to achieve housing availability including gaps in local funding, barriers such as development regulations, and other limitations o Consideration of housing locations in relation to employment location o Consideration of the role of accessory dwelling units in meeting housing needs • Identify local policies and regulations that result in racially disparate impacts, displacement, and exclusion in housing, including: o Zoning that may have a discriminatory effect o Disinvestment o Infrastructure availability Port Orchard Housing Action Plan - June 2023 1 DRAFT —March 28, 2023 Page 37 Identify and implement policies and regulations to address and begin to undo racially disparate impacts, displacement, and exclusion in housing caused by local policies, plans, and actions Identify areas that may be at higher risk of displacement from market forces that occur with changes to zoning development regulations and capital investments; and Establish anti -displacement policies, with consideration given to the preservation of historical and cultural communities as well as investments in low, very low, extremely low, and moderate -income housing; equitable development initiatives; inclusionary zoning; community planning requirements; tenant protections; land disposition policies; and consideration of land that may be used for affordable housing. In the annual amendment cycle or the next major update (due in 2024), the Housing Element could be updated with specific policies relating to the many strategies and actions of this Housing Action Plan. Relevant HAP actions to acknowledge at the comprehensive planning level may include, but are not limited to, the following: • Development regulation streamlining that provides more housing options • Guidance on homelessness reduction and prevention • Support for a multifamily tax exemption program, tax increment financing for infrastructure and affordable housing, and transit funding to support housing and economic development • Policies for the acquisition and disposition of surplus public land for affordable housing (see Strategy 4.4), especially City -owned land in downtown. • Support for new anti -displacement policies 4.2 — Land Use Element Updates The Comprehensive Plan Land Use element should be reviewed for potential updates on these issues. 4.2.1 — Corridor Zoning Action: In the next major Comprehensive Plan Update, review the balance between residential and commercial land capacity and adjust the future land use map. Some of Port Orchard's major transportation corridors are targeted for considerable transit investments by Kitsap Transit. The Comprehensive Plan update should consider whether land use regulations and infrastructure plans are supportive of transit -oriented development, particularly in designated centers. The City's primary commercial corridor, Bethel Road, is planned to have an upgraded roadway with roundabouts and bike and pedestrian infrastructure in the next few years. At the same time, Kitsap Transit plans a bus rapid transit route in the corridor. However, there is room for improvement in land use and amenities in the transit walkshed (a quarter to half mile). The corridor has a patchwork of zoning with few clear patterns and low building height limits, including low -density residential zoning both in and outside the city limits. Existing development is largely not pedestrian -oriented, being characterized by large parking lots, low -scale commercial buildings, residential cul-de-sacs, and a discontinuous street grid. The Commercial Port Orchard Housing Action Plan - June 2023 1 DRAFT —March 28, 2023 Page 38 Heavy zone does not allow general residential development, potentially locking in suburban - style strip malls and shopping centers on large parcels. There are no public parks, schools, community centers, or other civic amenities in the corridor that can help attract and serve high - density residential development. Opportunities for infill and mixed -use redevelopment, including affordable housing, should be explored in the Comprehensive Plan and/or a future Bethel subarea plan. The Mile Hill corridor has similar challenges but at a smaller scale. Incentives could be adjusted to support redevelopment of strategic sites like self -storage facilities and large parking lots. Explorations should consider the proximity to Downtown, South Kitsap High School, and Blackjack Creek. The Tremont, Pottery, and Sidney corridors are generally characterized by R2 or BPMU zoning and proximity to parks and schools. Kitsap Transit plans transit service enhancements in some of these areas. Upzones to allow at least low -scale multifamily development in more areas should be considered. The Lund and Jackson corridors in the unincorporated urban growth area could also be explored for near -term annexation and subsequent zoning that incentivizes infill middle housing and multifamily housing which helps pay for infrastructure and services. These areas are mostly developed with a mix of low -to -medium density housing and have an identity linked to Port Orchard. Proximity to South Kitsap Regional Park and several schools is an asset to be leveraged. 4.2.2 — Commercial Uses in Residential Zones Action: In the next major Comprehensive Plan Update, review the opportunity for allowing small neighborhood commercial uses in residential neighborhoods. Residential zones are not permitted to have restaurants, cafes, convenience stores, small shops, or any other kind of small commercial use to help people meet daily needs nearby. While the Comprehensive Plan has policies promoting mixed -use development, the zoning in most of the city does not reflect this and people mostly need to drive for their shopping and social needs. Alternatively, more NMU and/or RMU zones could be strategically distributed within residential neighborhoods to allow such an opportunity. This strategy would help reduce driving and increase entrepreneurial opportunities. Forest Park Grocery and Deli near the intersection of West Avenue and South Street is a good example. It's zoned as an island of Neighborhood Mixed Use amid an R2 area. The City of Anacortes permits "neighborhood grocery stores" with dining areas and up to 1,200 square feet as a conditional use in most residential zones. If integrated into existing residential uses, consider the following provisions to improve viability while minimizing neighborhood conflicts: • Limit the size of such uses to somewhere between 1,000 to 2,500 square feet and make clear distinctions whether it's net (e.g., customer areas only) or gross area. Uses with dining likely should be on the smaller side of that range to minimize neighborhood parking impacts. Port Orchard Housing Action Plan — June 2023 1 DRAFT —March 28, 2023 Page 39 • Consider restricting uses to corner lots, which are more visible and have more curb space for on -street parking (available on -street parking is essential). • Consider reductions in required off-street parking to minimize the need for parking lots that can disrupt the visual character of the neighborhood (and likely won't fit on the lot anyways). Example, for corner lot nonresidential uses with less than 1,000 square feet of net/customer floor area, don't require any additional off-street parking. • Prohibit outdoor service and storage uses that go beyond the typical needs of permitted residential uses. 4.2.3 — Parking Action: In the next major Comprehensive Plan Update, review the need for minimum parking requirements citywide and review national case studies for best practices. Parking is an issue that should be revisited in the next Comprehensive Plan update. Consider policy support for removing minimum requirements entirely, as is increasingly being done in cities and states across the country and called for by professional planning and engineering organizations.19, 40 Removing parking requirements does not have any immediate effect on housing supply or prices or neighborhood design. Over time, it gives the power of parking design back to property owners and businesses to decide how much parking they need to attract tenants and customers.41 New development will still include parking spaces, but the number of spaces will be decided based on what owners need based on their experience and budget rather than government rules.41 Removing the minimum requirement can also ease the renovation of older vacant buildings and allow new small businesses to open in commercial spaces where they couldn't before. Removing parking requirements significantly reduces the red tape and studies that are required to justify modifications, reductions, or cooperative parking agreements, the costs of which may exceed the budgets of local property owners or small investors. Starter homes like townhomes and condos may become easier to build and improve homeownership opportunities. Removing parking standards would complement increased transit service, as discussed in Strategy 5.6. 39 "Parking Reform Network." https://parkingreform.org/resources/mandates-map/ 40 "Rethinking Parking Minimums." Institute of Transportation Engineers. February 2019. https://www.dropbox.com/s/1 becvgm8ebznwj2/ITE°io20journal.pdf?dl=0 41 "End Parking Mandates & Subsidies." Strong Towns. https://www.stronatowns.ora/parkina 42 "Save Anchorage from Parking Mandates." Sightline. September 2022. https://www.s ightl ine.org/2022/09/30/save-anchorage-from-parking-mandates/ Port Orchard Housing Action Plan — June 2023 1 DRAFT —March 28, 2023 Page 40 4.3 — Public Land for Affordable Housing Actions: Consider rezonings, environmental assessments, pre -development activities, and partnerships to promote use of surplus public land for affordable housing. The City has a modest amount of surplus publicly -owned land. Some of it is well -located or positioned to merit consideration for housing development. Considerations for key properties and strategies are described in this section. Other public lands (such as those owned by Kitsap County, the Port of Bremerton, and other agencies) could be reviewed in the future. 4.3.1 — Disposition Policy Formally adopt a surplus land disposition policy that gives the right -of -first -refusal to affordable housing developers or other community -determined uses, consistent with the allowances of RCW 39.33.015 (2018). This could be adopted by City Council resolution and embedded within the Comprehensive Plan's Housing Element (also see Strategy 4.2). 4.3.2 — Land Acquisition The cost of land can be a major cost for any housing development, and providing a discounted land lease or sale can help some projects become economically viable. Since the City does not have much surplus land, the City can identify and purchase underutilized or vacant properties that can be developed as affordable housing. Land assembly can be a powerful tool for putting together larger sites that can be redeveloped at a more economically feasible scale. This strategy could be focused on close -in locations (e.g. Downtown and the Bethel Avenue and Mile Hill Drive corridors) where land ownership is fragmented. Port Orchard may also focus on vacant, abandoned, or tax -delinquent properties. These sites usually have negative impacts on surrounding properties and the City's role would include resolving ownership issues and/or addressing tax liens or land encumbrances that otherwise deter developers from pursuing these properties.as Once acquired and assembled, Port Orchard would lease or sell the land for affordable housing. See the related need for a land disposition policy in Strategy 4.4.1 4.3.3 — Tremont/Pottery Roundabout Property (Parcel 342401-4-016-2001 & 342401- 4-015-2002) This is a one -acre vacant site within the Tremont Center and zoned Commercial Mixed Use. The site could be viable for townhomes or multifamily development with a small commercial component. It is eligible for the Type 1 and Type 3 MFTE programs, which could improve the feasibility of affordable housing on the site. While Tremont Street is newly rebuilt with pedestrian and bike infrastructure, the general area is not walkable to services besides gas stations, medical offices, and schools. This and parking requirements will require a significant portion of the site be dedicated to surface parking, limiting the housing capacity of the site. Some amount of structured parking might be 43 "Support the Reuse of Abandoned, Vacant, & Delinquent Properties." Family Housing Fund. https://www.fhfund.org/report/reuse-of-abandoned-properties/ Port Orchard Housing Action Plan - June 2023 1 DRAFT -March 28, 2023 Page 41 economically feasible with the savings from a discounted land transfer, though the site's irregular shape could make efficient parking layouts a challenge. Parking could potentially be shared with the healthcare facility directly behind the site to the north. Development could fully or partially vacate Alder Lane, which is City right-of-way and does not serve any other properties. The site could also potentially expand by acquiring part of the adjacent healthcare facility site if there is underutilized parking there; that site is zoned as Public Facilities which does not allow any residential land uses. r star. v �r 4.3.4 — Mitchell Avenue Property (PU&el 252401-3-045-2009) This is a 1.7 acre forested site within the Lower Mile Hill Center and it is zoned R4, which allows up to four-story buildings. The site boundary has a small cutout of R3 zoning where there is a cell phone tower. The site could be viable for townhomes or multifamily development. The site is across the street from South Kitsap High School and could be an ideal location for family housing (units with two or more bedrooms). It is eligible for the Type 1 MFTE program, which could improve the feasibility of affordable housing on the site. The site is moderately sloped, with a 70 feet elevation difference between the top and bottom of the property (a horizontal distance of 240 feet). The topography may add construction costs and reduce housing capacity, but the economic feasibility may be improved with the savings from a discounted land transfer. The site could potentially be configured with two separate clusters of buildings at the top and bottom of the hill. The site is bordered to the west and north by strips of undeveloped City right-of-way, which could be vacated to expand the site and/or provide access solutions. Port Orchard Housing Action Plan — June 2023 1 DRAFT —March 28, 2023 Page 42 The site could also potentially expand by acquiring one or more of the adjacent parcels, particularly off Bethel Avenue, to increase circulation options and improve economies of scale. The adjacent commercial properties are either vacant or have low -value improvements, they are zoned Gateway Mixed Use, and they are within the Downtown Height Overlay District 5 which allows up to five -story buildings. Legend City -Owned Parcels Other Parcels 4.3.5 — Maple Avenue Property (Parcel 4062-003-005-0006) This is a 0.9 acre vacant site within the Downtown Center and it is zoned R1. It would need to be rezoned to allow for residential use. It is directly adjacent to sites zoned Gateway Mixed Use. Being in Downtown but off Bay Street, the site is most suitable for multifamily development. It is not currently eligible for any MFTE programs but would be if rezoned. This parcel is owned by the water utility and it would need to be purchased from the City's enterprise budget fund; the applicability of a discounted transfer for affordable housing under RCW 39.33.015 needs to be determined. An additional challenge is the shoreline jurisdiction of Blackjack Creek. Access road improvements would likely be needed; currently, Maple Avenue is a rustic single -lane roadway. The intersection with Maple Avenue, Bethel Avenue, and Bay Street is planned to be improved with a roundabout. The site is bordered to the east and west by strips of City right-of-way, which could be vacated to expand the site and/or provide access solutions. The site could also potentially expand by acquiring one or more of the adjacent parcels, particularly off Bethel Avenue, to increase circulation options and improve economies of scale. The adjacent residential and commercial Port Orchard Housing Action Plan - June 2023 1 DRAFT -March 28, 2023 Page 43 properties appear to have low -value improvements and are zoned to allow four -to -five story buildings. jr Legend a g �. ' 4ATM1s 1 City -Owned Parcels !� Other Parcels ov a M Port Orchard Housing Action Plan - June 2023 1 DRAFT —March 28, 2023 Page 44 5 - Funding Strategies These actions relate to the financing and funding of affordable housing and related issues like taxes, fees, and state law. 5.1- Multifamily Tax Exemption Program Action: Update the MFTE program based on increased developer interest in multifamily and mixed -use projects to streamline requirements, balance affordability and foregone tax revenue, and take advantage of increased flexibility in statewide legislation. 5.1.1 — MFTE Overview A multifamily tax exemption (MFTE) program is authorized by a 1995 state law, RCW 84.14. Cities can grant an 8-year property tax exemption for any multifamily development, or a 12-year exemption for multifamily developments that reserve at least 20 percent of units for low- and moderate -income households. Starting in 2021, cities may also offer a 20-year tax exemption for ownership units if at least 25 percent of these condominium units are sold as permanently affordable ownership housing.44 A MFTE program can be used for new buildings or existing buildings that require major rehabilitation. Affordability covenants expire after 12 years and cannot be renewed. For cities under 20,000 residents, both the 12-year and the 20-year programs require the development to be in a zone that allows at least 15 dwelling units per acre. Land, existing site improvements, and non-residential improvements are not exempt and are subject to normal property taxes. At the local government's discretion, the exemption's basis may be limited to the value of affordable units or other criteria. The local government has latitude in many aspects. It can require certain public benefits, change what types of development apply, and can map specific areas where the exemption is available. Cities can also set lower maximum rent prices than the statute allows and other lease stipulations such as requiring the participating units to be pet -friendly. [PLACEHOLDER IN CASE ANY CHANGES TO MFTE COME OUT OF THE 2023 LEGISLATURE] 5.1.2 — Port Orcharril MFTF Riimmary Port Orchard has had an MFTE program in place since 2016, which is codified under Chapter 3.48 POMC, and which provides three types of exemptions. The "Type 1" program is a 12-year exemption available to properties zoned for multifamily or mixed -use near transit or ferry and requires 20 percent of units to be rented at affordable rates based on HUDs fair market rent. The "Type 2" program is an 8-year exemption available to abandoned or underutilized properties within local centers of importance which are encouraged to redevelop. The "Type 3" program is an 8-year exemption available to properties within local centers of importance and zoned for multifamily or mixed -use with requirements for denser, "urban" style development: a minimum density of 50 units per acre and at least 50 percent structured parking, shopfronts equal to 40 percent of all building footprints, or additional height purchased through the city's transfer of " "Overview of 2021 Changes to the Multifamily Housing Tax Exemption Program." Washington State Department of Commerce. https://deptofcommerce.box.com/shared/static/7k5p88yv4lm8ot882abtzafwzlofkfO5.pdf Port Orchard Housing Action Plan - June 2023 1 DRAFT -March 28, 2023 Page 45 development rights program. A total of four projects totaling 332 units (including 20 affordable units) have been built using Port Orchard's MFTE program, and four more projects totaling 427 more units (including 45 affordable units) are currently in progress. For a full summary of Port Orchard's MFTE program, see Section 5 of the Existing Conditions and Housing Needs Analysis Report in the Appendix. Port Orchard's method of setting subsidized rents in MFTE projects at 10 percent below HUD fair market rents is unusual, as most jurisdictions in Washington rent subsidized MFTE units to families earning between 80 and 115 percent of HUD's MFI for their area, and cap the rent at 30 percent of the household's income, adjusted for household size. 45 However, Port Orchard's system meets legal state requirements and, based on a preliminary analysis, seems to result in rents which are lower than those based on the larger Bremerton -Silverdale MSA HUD MFI. 5.1.2 — Recommendations Port Orchard has seen an increase in proposed downtown residential -commercial mixed -use projects in recent years. Since these types of projects would be eligible for MFTE funding, it is important to revisit and potentially update some aspects of the program to balance the benefit and foregone tax revenue of affordable units to ensure the program's goals are being met and to address recent changes in the program allowed under state law.ab Clarify map and zoning of areas of MFTE eligibility. MFTE projects must be in urban centers as defined by RCW 84.14.010, which describes compact districts with a variety of shops, a mix of uses, and public facilities. Port Orchard's municipal code contains maps of parcels eligible for MFTE funding, but they are difficult to read and are not updated with the latest parcel lines, as shown below in Figure 6. An improved map which shows both the city's established "centers" and the outline of areas eligible for MFTE development at a larger scale would streamline the process for potential developers Figure 8. Maps of parcels currently eligible for the Type 1, Type 2, and Type 3 MFTE programs. Source.' City of Port Orchard Municipal Code Correct definition of underutilized buildings. POMC 3.48.040(2)(a)(iii) states that underutilized buildings have an "assessed building value to land ratio of two -to -one or more." This appears to be backwards, as underutilized buildings are defined by a low building to land -value ratio. The 45 Following HUD's definition of a "cost -burdened" household 46 A comprehensive list of 2021 legislative changes to the MFTE program can be found here: https://deptofcommerce.box.com/shared/static/7k5p88yv4l m8ot882gbtzafwzlofkf05.pdf Port Orchard Housing Action Plan — June 2023 1 DRAFT —March 28, 2023 Page 46 code should be revised to state "building value to land ratio of two -to -one or less," or land value to ,building value ratio of two -to -one or more." Add minimum density in units per acre to multifamily and mixed -use zones. State law requires that 12-year and 20-year MFTE programs which contain affordable rental or homeownership units be located in areas zoned for a minimum average density of 15 units per acre in cities with populations under 20,000. Port Orchard does not currently define minimum unit densities in its code, although the allowed zoning in MFTE areas likely meets this threshold based on allowed height, setbacks, FAR, etc. However, to better comply with state law, quantify minimum densities in the zoning code for mixed -use and multifamily zones. See Section 2.3.2 for further considerations on adding minimum densities. Consider changes to the method of income calculations for affordable units and conduct an audit of the program. Port Orchard's program is unusual in that it uses HUD fair market rent to calculate rents for subsidized units. Although the system seems to be working and is allowed under state law, it may be more complex for developers or property managers who are accustomed to methods used in most other cities where MFTE programs are tied to the HUD median family income. If the City wishes to ensure a deeper level of affordability compared to the MFI, the program could be calibrated to a lower level (such as 60 percent rather than 80 percent MFI). Regardless of the method used, the city should audit the MFTE program annually to ensure that the cumulative benefit to income -restricted residents is greater than the foregone revenue from the tax exemption. This audit should be conducted by the Community Development or Finance department and should result in an annual report presented to city council. Additionally, consider partnering with Housing Kitsap for MFTE administration and to reduce city staff's workload when verifying incomes of subsidized unit residents, since housing authorities have infrastructure and skills in place to conduct such income verifications. Consider removing transit proximity for affordable units. Port Orchard's Type 1 program currently requires projects to be within 1/2 mile of a transit stop or ferry terminal. Although this provides benefits to lower -income residents who do not own vehicles, the quality and availability of transit service in Port Orchard is low and is a recent study by WSDOT indicates that transit in the city is not at the level or frequency which encourages residents to own fewer vehicles.47 It is also not clear that transit proximity has any practical effect, since the maps for the Type 1 and Type 3 programs appear nearly identical. Removing this requirement could expand eligible projects and the distribution of affordable units across the city. Consider a height bonus for MFTE developments. Currently Port Orchard allows a height bonus for Type 3 MFTE developments through the Transfer of Development Rights (TDR) program. Such programs are rarely used. Numerous cities in Washington, including Port Angeles and Kirkland, allow height bonuses in exchange for the provision of affordable units in their MFTE programs. Consider adding such a bonus to the MFTE to improve development feasibility. Such a program could have separate height bonus allowances based on zoning and MFTE program type. See detailed zoning recommendations in Section 2.3.1 for more details. 47 "Frequent Transit Service Study." Washington State Department of Transportation. https://enaaae.wsdot.wa.aov/frequent-transit-service-studV Port Orchard Housing Action Plan - June 2023 1 DRAFT —March 28, 2023 Page 47 Streamline requirements for Type 3 program. The Type 3 program currently has somewhat stringent requirements to create denser, urban -style buildings through various criteria. Although the intention to stimulate higher density development in centers is an important component of the program, recent projects suggest that the share of structured parking, density, and commercial square footage required may be disincentivizing use. Each of the three requirements could be streamlined to increase viability of participating in the program: The requirement for 50 percent structured parking combined with 50 units per acre of density may be redundant since the only way to achieve higher densities is by putting parking into structures. Eliminating the structured parking requirement but retaining a relatively high -density requirement (40-50 units per acre) would effectively require that the project either include structured parking or that surface parking ratios are relatively low. • Reducing the requirement for 40 percent of all building footprints to contain commercial use or replacing this requirement with a required minimum percentage of the frontage being commercial would be appropriate given the exiting amount of commercial zoning in Port Orchard. The design requirements in the MFTE ordinance may also be superfluous given the existing block frontage standards in POMC 20.127. • Finally, an overall height bonus for MFTE developments as discussed above may be more effective than the TDR height bonus option currently in the Type 3 program. Reduce minimum number of units required for participation. Port Orchard's program currently requires a minimum of 10 units in a project to qualify for the MFTE program. State law only requires a minimum of four units. Updating the Port Orchard program to require a minimum of four units would bring the program in line with statewide standards as well as potentially providing added feasibility for smaller "missing middle" housing types. Consider adding a 20-year MFTE program. Since 2021, cities under 20,000 residents such as Port Orchard can add a 20-year ownership MFTE program under RCW 84.14.021(1)(b) where at least 25 percent of units must be sold to a qualified nonprofit or local government partner that will ensure permanent affordable homeownership. Providing affordable homeownership opportunities to low- and moderate -income households can help build wealth for households which otherwise could not afford to own a home. 5.2 — Development Fee Adjustments Action: Consider adjusting development fees for 2-4 unit buildings and some fee discounts for affordable housing while continuing to offer sewer and water exemptions for small ADUs. Port Orchard, like many municipalities, levies impact and development fees on new construction to fund improvements in infrastructure for schools, parks, and other services, as well as hookup and general facilities charges for water and sewer connections to new developments. Stakeholders interviewed by the HAP project team in 2022 indicated that Port Orchard's fees are considered to be high, particularly in relation to Kitsap County's fees and other nearby Port Orchard Housing Action Plan — June 2023 1 DRAFT —March 28, 2023 Page 48 jurisdictions. A full breakdown of Port Orchard's impact fees can be found in the appendices of the Existing Conditions and Housing Needs Analysis Report. Water and sewer hookup fees and general facilities charges are difficult to compare due to different structures across municipalities, but Port Orchard's seem to be at the higher end of the Kitsap region, at $11,571 per water hookup and $12,788 per sewer hookup per ERU (defined in the code as one single-family dwelling unit of any type, attached or detached). By comparison, Bremerton charges $4,245 for water hookups and Poulsbo charges $5,065 for water hookups and $11,211 for sewer hookups per ERU. Port Orchard does prorate its impact fees by unit type. This is a best practice in encouraging a diversity of housing types and sizes. However, the margins of discount for 2-4 unit buildings could be increased to incentivize more "Middle Housing" development. Any reduction in impact or hookup fees or GFCs would need to be rebalanced elsewhere for market -rate development. In addition, some cities reduce impact fees for affordable housing units and are allowed to reduce such fees by up to 80% under RCW 82.02.060. Port Orchard could consider some reductions for affordable housing units to incentivize more development of subsidized units. Port Orchard also exempts small ADUs from sewer and water hookup fees as discussed in Section 5.4, another best practice in encouraging infill housing. 5.3 — Local Bank Funding Action: Encourage local banks to create a fund for affordable housing finance Under the Community Reinvestment Act (CRA), banks are required to meet the credit needs of low- and moderate -income households in communities in which they operate. Many banks meet their CRA requirements by investing in Low -Income Housing Tax Credits (LIHTC), providing capital to nonprofit affordable housing providers who use the capital to build regulated affordable housing, usually for households earning under 60-80 percent of the AMI. Outside of LIHTC, some banks are also working with cities across the country to fund other types of affordable housing, including "workforce" housing for households earning between 80 and 120 percent AMI, through non -tax credit programs. 48 For example, the Charlotte Housing Opportunity Fund combines city bond money with private investment from banks to provide gap funding for affordable housing projects. The fund has doubled the city's affordable housing finance pool since 2019, creating or preserving 1,047 housing units in the city.49 The Washington Housing Initiative Impact Pool is a similar nonprofit -run fund which targets housing for low- and moderate -income African American residents of Washington D.C.50 Port Orchard could consider working with local banks to create a such housing fund which could be used for gap financing of affordable housing projects and which would encourage local banks to invest in the Port Orchard community. Outreach to and coordination with the local 48 Mattson-Teig, Beth. "Banks Focus CRA Dollars on Affordable Housing." WealthManagement.com, Jan 2, 2020. https://www.wealthmanagement.com/finance-lending/banks-focus-cra-dollars-affordable-housing 49 "Charlotte Housing Opportunity Investment Fund creates affordablew housing and model for the future." LISC Strategic Investments, June 14, 2022. https://www.Iiscstrategicinvestments.org/post/choif-three-year-impact-report so -Washington Housing Initiative Impact Pool: 2021 Impact Report." JBG Smith. https://www.washinatonhousinainitiative.com/_files/ugd/36926a_l 82d6b3b6e814466a17bf33ec1616407.pdf Port Orchard Housing Action Plan — June 2023 1 DRAFT —March 28, 2023 Page 49 lending community could be part of the work of the housing coordinator position described in section 3.3. 5.4 — Tax Increment Financing Action: Explore the potential to use Tax Increment Financing (TIF) for identified sites and projects in the Downtown and Waterfront areas. In 2021, Washington State granted new powers of tax increment financing (TIF) to the state's cities, counties, and port districts.51 This funding mechanism allows municipalities to establish a geographic district (called the increment area) that is expected to benefit the most from a proposed new infrastructure investment. Typically, bonds are issued at the outset and the additional tax revenue resulting from the increased land and property values are then captured to pay for the new infrastructure and pay off the bonds. TIF is widely used in other states across the country, but Washington's new program has some specific guidelines which differ from other states. In Washington, the state school levy and some other local taxes used to repay general obligation bonds are exempt. Additionally, TIF financing can only be used for specific authorized public improvements which are expected to encourage private development and increased assessed valuation which would not otherwise happen without the improvements. These improvements may be located inside or outside the increment area and include streets, water and sewer systems, sidewalks, streetlights, parking facilities, parks and recreational areas, broadband service, or brownfield mitigation. TIF can also be used to pay for long-term affordable housing, childcare service, providing maintenance and security for public improvements, and acquiring property for historic preservation. Unlike in other states, TIF funding in Washington can only be used for the specified projects or improvements set forth in the initial application, and project lists cannot be modified later. Thus, TIF is only applicable to existing and well-defined projects with specific infrastructure needs. The TIF district must have a maximum sunset date of 25 years and not have an assessed valuation greater than $20 million, and each city may not have more than two districts.sz Explore the possibility of using TIF in Port Orchard's downtown and/or waterfront areas to continue to catalyze redevelopment projects, street or active transportation investments as identified in the 2021 Downtown Subarea Plan.53 Infrastructure or utility investments to support denser mixed -use developments such as the proposed development at 640 Bay Street54 could help support increasing housing supply downtown. TIF funds could also be used for identified projects in the Subarea plan such as a concept plan to "break down the scale of existing large 51 "Tax Increment Financing (TIF)". Municipal Research Service Center. hitps://mrsc.org/Home/Explore Topics/Economic-Development/Financing-Economic-Development/Tax-Increment-Financing.aspxx 52 "Washington State's Expanded TIF Authority Creates Powerful Catalyst for Public -Private Partnerships." Denis Wright Tremaine. May 2022. hitps://www.dwt.com/insights/2021/05/washinaton-state-tax-increment-financing- law 53 City of Port Orchard. "Downtown Port Orchard Subarea Plan." htips://storage.googleapis.com/proudcity/portorchardwa/uploads/2021 /07/FINAL-ADOPTED-Downtown-Subarea- Plan-and-Regs-reduced.pdf 54 Detailed in the "Project Spotlights: Downtown Mixed Use" section of the Existing Conditions and Housing Needs Analysis Report. Port Orchard Housing Action Plan — June 2023 1 DRAFT —March 28, 2023 Page 50 scale sites to provide a more walkable land -use pattern", or for streetscape and pedestrian improvements to enhance livability of potential waterfront or downtown redevelopment sites, particularly if or when such sites have development proposals. TIF funding could also be considered for the Bethel/Sedgewick Corridor, which was the subject of a corridor study in 2018 recommending changes to the road design which could be financed through this funding mechanism. 5.5 - Funding for ADU Development Action: Explore the possibility of partially financing or streamlining ADU development and permitting processes, particularly for lower -income homeowners. Cities across the U.S. have adopted a variety of programs designed to reduce the cost of ADU development for homeowners, including minimizing design review, waiving permit or utility fees, providing technical assistance, and providing sources of financing." Port Orchard currently allows ADUs of less than 1,000 square feet to be served by the same water and sewer connections as the primary residence, a significant savings." In addition, Port Orchard amended its ADU standards with Ordinance 038-22 in October 2022 which removes owner occupancy and parking requirements for ADUs, two of the most common barriers to ADU construction and feasibility. Numerous municipalities including Boston, Los Angeles, Montpelier, VT, and Santa Cruz County, CA have established programs which incorporate equity and loan assistance as well as technical assistance and simplified permitting processes.s' Funding sources for these programs include Community Development Block Grants, cities, philanthropists, and partnerships with nonprofits such as Habitat for Humanity. Many of these programs are targeted at lower -income renters, requiring either that the ADU be made available to households earning 80% AMI or lower, or to households using Housing Choice (Section 8) Vouchers. Onerous income reporting requirements can be a disincentive. In some cases, these programs have been targeted at lower -income homeowners as well, such as the Small Homes Northwest community ADU demonstration project implemented by Hacienda CDC in Portland and funded by the Oregon legislature, which helps income eligible homeowners develop ADUs in neighborhoods at risk of gentrification. 55 Chapple, Karen, Wegmann, Jake, Mashood Farzad, and Coleman, Rebecca. "Jumpstarting the Market for Accessory Dwelling Units." Urban land Institute. https://ternercenter.berkeley.edu/wp content/uploads/pdfs/Jumpstarting_the_Market=-_ULI.pdf 56 Port Orchard Municipal Code 13.04.030(1)(e)(i), 13.04.040(1)(e)(i) 57 ADU Aid Programs Across the U.S." Villa. https://villahomes.com/blog/adu-aid-programs/ Port Orchard Housing Action Plan — June 2023 1 DRAFT —March 28, 2023 Page 51 5.6 — Transportation Benefit Districts Funding Action: [Section pending] 5.7 — State Advocacy Action: Advocate for additional state investment in the Housing Trust Fund, condominium law reform, and Growth Management Act updates. Surveying done for this HAP found strong community support for "City advocacy for more county, state, or federal funding for affordable housing projects." Primarily, this should involve lobbying the Legislature for more funds in the state's Housing Trust Fund, which provides capital funding." The trust has helped build or preserve more than 50,000 affordable housing units statewide since 1986. The Legislature appropriates funding to the trust every biennium. More money in the trust would help smaller communities like Port Orchard (and the affordable housing providers who work in Port Orchard) have a greater chance of receiving funding. Port Orchard could also update its legislative agenda with condominium legislation reform. Condos are a highly in -demand type of ownership housing, especially for first-time homebuyers and seniors seeking to downgrade, but they are rarely built in Washington State due to the liabilities placed on developers under state law.59, 61 The main barriers are a requirement for a 10-year warranty against construction defects and additional building code and inspection requirements that do not apply to rental apartments. The City may comment on reform to the State Environmental Policy Act (SEPA), which can add significant delay and complications to approval of residential development. Advocacy might involve exempting all residential development from SEPA review if the development intensity is consistent with the Comprehensive Plan. In addition, the City may comment on updates to state law that affect land use, housing, zoning, and transportation. As noted in Section 1.4, zoning preemptions and other changes to the Growth Management Act are likely to be proposed and debated by the Legislature in the coming years. The City should provide input on proposals that affect the implementation of the Housing Action Plan, either independently or through its involvement in statewide organizations like the Association of Washington Cities. Continued coordination and involvement with regional partners (such as Kitsap County) and the federal government is also recommended to promote and fund affordable housing. 58 "Housing Trust Fund." Washington State Department of Commerce. https://www.commerce.wa.gov/building- infrastructure/housing/housing-trust-fund/ 59 "Washington state's condo law changes could ease restrictions." Spokane Journal of Business, November 2021. https://www.spokane'ournal.com/specia I-report/washi ngton-states-condo-law-changes-could-ease-restrictions/ 60 "As Gen X and Boomers Age, They Confront Living Alone." The New York Times. November 2022. https://www.nytimes.com/2022/11/27/us/livina-alone-aaina.html Port Orchard Housing Action Plan - June 2023 DRAFT —March 28, 2023 Page 52 6 - Implementation The planning matrix below organizes the actions of this Housing Action Plan. The City Council and Mayor will be involved in most or all action implementation through ordinances, resolutions, budgeting, and partnerships with other agencies. This matrix should be used as a framework for regular progress reports on implementation and could be a live document on the City website. [TO BE COMPLETED + ADD TABLE TITLE AND NUMBER] DepartmentL # Description Priority Lead . Regulatory Strategies Programmatic Strategies Citywide Planning Strategies Funding Strategies 6.1 - High Priority Implementation Given the limited resources of government, it is important to set priorities. The following items are high priority for implementation within the next 12 months. 6.2 — Monitoring The only way to know if housing actions are successful is to measure and report on outcomes. By developing a monitoring program, Port Orchard can track progress toward achieving housing goals and identify where more work or changes are needed. Interviews with housing developers one year after HAP adoption (or at other regular intervals) can also be helpful to get feedback on what HAP actions are working well and where there may still be barriers. Monitoring will be a key role of the new Housing Coordinator staff position. Even so, integrating monitoring into existing work and activities could help preserve limited staff time. Monitoring the HAP implementation could be merged into: • DCD's annual or monthly reports to the City Council • Monitoring of population growth and development permits Port Orchard Housing Action Plan - June 2023 DRAFT -March 28, 2023 Page 53 • Comprehensive plan monitoring • Buildable lands reports Potential performance metrics based on the HAP Existing Conditions and Housing Needs Analysis Report are listed below. [TO BE COMPLETED + ADD TABLE TITLE AND NUMBER] Chapter 2.20 PLANNING COMMISSION Sections: 2.20.010 Planning commission created. 2.20.020 Planning commission positions, terms, and term ending dates. 2.20.030 Powers and duties. 2.20.040 Recommendations to council. 2.20.050 Repealed. 2.20.060 Meetings of commission — Records. 2.20.070 Quorum. 2.20.080 Annual report to council. 2.20.010 Planning commission created. Pursuant to Chapter 35.63 RCW, there is created a city planning commission, which shall consist of seven members appointed by the mayor and confirmed by the city council; six shall be residents of the city and one may be a nonresident of the city except the mayor and city council may, by council resolution, temporarily extend the term of a commissioner who, during his or her term, moves out of the city, to provide for continuity of specific projects or planning processes. (Ord. 036-20 § 2; Ord. 025- 11 § 1; Ord. 1566 § 1, 1992; Ord. 1129, 1980; Ord. 704 § 1, 1962; Ord. 521 § 1, 1946). 2.20.020 Planning commission positions, terms, and term ending dates. (1) Planning commissioner terms shall be four years in length. There shall be seven planning commissioner positions to be known as Position 1, Position 2, Position 3, Position 4, Position 5, Position 6, and Position 7, respectively. The current term expiration for each of the respective planning commission positions as of the date of the ordinance codified in this chapter is as follows: Position Term Expiration Position 1 December 31, 2020 Position 2 December 31, 2020 Position 3 December 31, 2021 Position 4 December 31, 2022 Position 5 December 31, 2023 Position 6 December 31, 2023 Position 7 December 31, 2023 (2) Upon expiration of the terms of each position as provided in subsection (1) of this section, reappointments or successors shall be appointed by the mayor for the term of four years each. When an appointment by the mayor is to fill an open position prior to the end of the term, then the person so appointed shall serve out the term of the position into which he or she has been appointed. (Ord. 036- 20 § 2). 2.20.030 Powers and duties. The planning commission shall have all of the powers and perform each and all of the duties specified by Chapter 35.63 RCW, together with any other duties or authority which may hereafter be conferred upon them by laws of the state of Washington, the performance of such duties and the exercise of such authority to be subject to each and all the limitations expressed in Chapter 35.63 RCW. (Ord. 036-20 § 2; Ord. 521 § 2, 1946. Formerly 2.20.020). 2.20.040 Recommendations to council. The city council may refer to the planning commission for its recommendation and report, any ordinance, resolution or other proposal relating to any of the matters and subjects referred to in Chapter 35.63 RCW, and the commission shall promptly report to the council thereon, making such recommendations and giving such counsel as it may deem proper. (Ord. 036-20 § 2; Ord. 521 § 3, 1946. Formerly 2.20.030). 2.20.050 Plats submitted to commission. Repealed by Ord. 047-07. (Ord. 521 § 4, 1946. Formerly 2.20.040). 2.20.060 Meetings of commission — Records. The commission shall elect its own chairman and create and fill such other offices as it may determine it requires. In general, the commission shall hold a regular meeting once per month; however, during any month, the chair of the commission or the city's planning director may determine that there are no review items requiring the planning commission to hold a regular meeting and conduct business during that month; or, that there are review items requiring the planning commission to hold a regular meeting and conduct business more often than once during that month. All meetings shall be open to the public and shall be noticed in accordance with Chapter 42.30 RCW. It shall adopt rules of transaction of business and shall keep a written record of its meetings, resolutions, transactions, findings and determinations, which record shall be of public record. (Ord. 036-20 § 2; Ord. 521 § 5, 1946. Formerly 2.20.050). 2.20.070 Quorum. Four members of the planning commission shall constitute a quorum for the transaction of business. Any action taken by a majority of those present at any regular meeting of the planning commission shall be deemed and taken as the action of the commission. (Ord. 036-20 § 2; Ord. 704 § 1, 1962; Ord. 521 § 6, 1946). 2.20.080 Annual report to council. The planning commission, at or before its first regular meeting in February of each year, shall make a full report in writing to the city council of its transactions and expenditures, if any, for the preceding year, with such general recommendations as to matters covered by its prescribed duties and authority as may to it seem proper. (Ord. 036-20 § 2; Ord. 521 § 7, 1946). City of Poulsbo Planning Commission Responsibilities: The Planning Commission conducts public hearings related to the Comprehensive Plan and its implementation, including zoning and subdivision regulations. The Planning Commission also reviews and makes recommendations to the City Council on the adoption and enforcement of coordinated plans and regulations for the physical development of the city. The Planning Commission also reviews and provides recommendation to the Review Authority on certain projects in the city, such as Conditional Use Permits and subdivisions. Chapter 2.40 PLANNING COMMISSION Sections: 2.40.010 Planning commission created— Membershi 2.40.020 Powers and duties. 2.40.030 Report to council —Transactions. 2.40.040 Meetings. 2.40.050 Quorum. 2.40.060 Designation of secretary. 2.40.010 Planning commission created —Membership. There is hereby created a city planning commission, consisting of seven members, who shall be selected as follows: A. All members shall be appointed by the mayor, subject to confirmation by the city council. B. At the time of appointment and throughout their term of office, each member of the planning commission shall be a resident of the city. Any member who ceases to live within the city limits during his/her term of office shall forfeit that office. C. Each member of the planning commission shall serve a six -year term; provided, that the members of the planning commission constituted pursuant to Ordinance No. 206 of the city shall remain in office only until their present term expires and their successors are appointed, in order to maintain staggered six -year terms for all members. D. Vacancies occurring otherwise than through the expiration of terms shall be filled for the unexpired terms. Members may be removed at will at any time prior to the end of their term by the mayor, subject to confirmation by the city council. E. Members shall serve without compensation. (Ord. 86-10 § 1 (part), 1986) 2.40.020 Powers and duties. A. Generally. The planning commission shall have all powers and perform each and all of the duties specified for the planning agency by Chapter 35A.63 RCW, together with any other duties or authority which may hereafter be conferred upon them by laws of the state of Washington, or the ordinances of the city of Poulsbo; provided, that nothing herein shall be construed as limiting the right of the city to exercise any power granted to any class of city as provided by law. B. Additional Powers and Duties. The commission shall conduct public hearings relating to the comprehensive plan and the implementation thereof, including but not limited to zoning, official map, and platting and subdivision regulations. The commission is also authorized to review and make recommendations on the adoption and the enforcement of coordinated plans and regulations for the physical development of the city. The commission shall be advisory and it shall advise the council for council final approval. The commission is further authorized and empowered to cooperate with other commissions, with the State Council and other public agencies of the city, state and United States in planning, conservation and development. C. Rules of Procedure. The planning commission may adopt rules of procedure for the conduct of meetings and other functions delegated to the planning commission by the city council. Such rules of procedure need not be approved by the city council. (Ord. 86-10 § 1 (part), 1986) 2.40.030 Report to council —Transactions. The planning commission, in or before its first regular meeting in February of each year, shall make a full report in writing to the city council of its transactions and expenditures, if any, for the preceding year, with such general recommendations as to matters covered by its prescribed duties and authority as may to it seem proper. (Ord. 86-10 § 1 (part), 1986) 2.40.040 Meetings. The planning commission shall meet on the second and fourth Tuesday of each month at six p.m. In the event that any regular meeting date falls upon a city holiday, the meeting shall be conducted on the next regular business day unless a special meeting date is set in advance. All meetings, both regular and special, shall be open to the public and shall be conducted in accord with Chapter 42.30 RCW, the State Open Public Meetings Act. (Ord. 2022-08 § 2 (Att. A), 2022; Ord. 88-35 § 1, 1988: Ord. 86-10 § 1 (part), 1986) 2.40.050 Quorum. A majority of the membership of the planning commission shall constitute a quorum for the transaction of business. Any action taken at a regular or special meeting of the planning commission shall be deemed and taken as an action of the commission. (Ord. 86-10 § 1 (part), 1986) 2.40.060 Designation of secretary. The mayor shall designate a member of the paid staff of the city to act as the planning commission secretary. (Ord. 86-10 § 1 (part), 1986) City of Gig Harbor Planning Commission Responsibilities: The primary charge of the Planning Commission is to make legislative recommendations to the City Council on matters related to long-range land use planning including the comprehensive plan amendments, zoning text amendments, and area -wide rezones. Chapter 2.20PLANNING COMMISSION F Sections: • 2.20.010Created — Terms of office. • 2.20.020Repealed. 2.20.010Created —Terms of office. F There is created a city planning commission consisting of seven members who shall be appointed by the mayor and confirmed by a majority of the city council. Each member of the planning commission shall be a resident of the city of Gig Harbor or residing within the city's urban growth area (UGA) at the time of appointment and throughout her or his time in office. At no time shall there be more than two residents of the UGA serving on the commission. When reviewing appointments to the planning commission, residents of the city of Gig Harbor will be given preference. Members of the planning commission shall serve terms of four years. Those members currently serving shall continue to serve for the remainder of their appointed terms. Terms shall be staggered. Terms expire on June 30th, but members of the planning commission shall continue to serve until their successors are appointed and qualified. (Ord. 1486 § 5, 2022; Ord. 1447 § 1, 2020; Ord. 1423 § 1, 2019; Ord. 1183 § 1, 2010; Ord. 120 §§ 1, 2, 1969; Ord. 74, 1964). City of Bremerton Planning Commission Responsibilities: None posted. Chapter 2.12 PLANNING COMMISSION Sections: 2.12.010 ESTABLISHED -APPOINTMENT AND TERMS. 2.12.020 REMOVAL - ATTENDANCE. 2.12.030 CONDUCT OF MEETINGS. 2.12.040 AUTHORITY. 2.12.050 ELECTION OF CHAIRPERSON AND OTHER OFFICES. 2.12.060 RECORDKEEPING. 2.12.070 EXPENDITURES. 2.12.080 POWERS AND DUTIES. 2.12.010 ESTABLISHED - APPOINTMENT AND TERMS. There is established a planning commission which shall be appointed by the mayor and approved by the city council. The planning commission shall consist of seven members who shall be citizens of the United States who are residents of the City, unless a qualified resident is not available. The term of office shall be for four years. Members shall be appointed for staggered terms so that at least one member shall be appointed annually. The members shall serve without compensation. (Ord. 4563, Amended, 08/22/1996; Ord. 4069 §1, 1986) 2.12.020 REMOVAL - ATTENDANCE. Any member of the commission may be removed from office for incompetency, incompatibility, dereliction of duty, malfeasance in office, nonattendance at meetings, or other good cause after charges in writing have been delivered by the chairperson to the mayor, notice given, and a full hearing conducted. Members of the commission shall automatically be dismissed from the commission if members miss more than twenty-five percent of the regular meetings without written excuse submitted to the chairperson within seventy-two hours before the regular meeting during any twelve-month period or have two consecutive unexcused absences. Upon missing more than twenty-five percent of the regular meetings during a one-year period or having two consecutive unexcused absences, the office shall be declared vacant by the council and filled within a reasonable time. (Ord. 4069 §2, 1986) 2.12.030 CONDUCT OF MEETINGS. The Bremerton Planning Commission shall conduct all meetings in accord with the rules adopted by the planning commission which are designated as the planning commission bylaws. (Ord. 4069 §3, 1986) 2.12.040 AUTHORITY. The planning commission, planning department, and city council shall perform all planning functions pursuant to the authority of Article XI, §§10 and 11 of the Washington State Constitution. (Ord. 4523 §1, 1995; Ord. 4069 §4, 1986) 2.12.050 ELECTION OF CHAIRPERSON AND OTHER OFFICES. The commission, each year, shall elect its own chairperson and create and fill such other offices as it may determine it requires. The date and time of the commission's regular meeting shall be specified in the planning commission bylaws. (Ord. 4069 §5, 1986) 2.12.060 RECORDKEEPING. The city shall provide for the verbatim recording of all planning commission meetings by electronic means. The city shall furnish a copy of a tape recording of any meeting upon written request of any interested party. The party requesting the copy of the tape must bear the costs of recording and tape. The planning commission will also keep a written record of its meetings, resolutions, transactions, findings and conclusions. That record shall be a public record. (Ord. 4069 §1, 1986) 2.12.070 EXPENDITURES. The expenditures of the planning commission shall be within the amounts appropriated for that purpose by the council. (Ord. 4069 §7, 1986) 2.12.080 POWERS AND DUTIES. The planning commission may: (a) Review and recommend to the council the adoption of coordinated comprehensive planning and land use objectives for the development of the City or particular areas of the City; (b) Review and recommend to the council the adoption of regulations and code amendments which implement the City's comprehensive planning objectives; (c) Review and recommend to the council the adoption of short plat regulations and long subdivision regulations; (d) Participate in regional planning activities or serve on a regional planning commission; (e) Make rules and regulations for the conduct of its business. (Ord. 4778, Amended, 11/05/2001; Ord. 4069 §8, 1986) City of Bainbridge Island Planning Commission Responsibilities: Outlined in BIMC 2.14.020 (B). Chapter 2.14 LAND USE APPROVAL BODIES 2.14.020 Planning commission. A. Purpose and Role of the Planning Commission. The Bainbridge Island planning commission serves as an advisory body to the city council, and provides recommendations to the director of planning, the hearing examiner and/or the city council. The commission's role is to consider legislative, as well as quasi-judicial matters, depending upon the action before it. Pursuant to Chapter 35A.63 RCW, the commission has primary responsibility for preparing, reviewing and updating the comprehensive plan. B. Duties and Responsibilities. Pursuant to the provisions of Chapter 35A.63 RCW, there is established within the city a planning commission. The title "planning commission" is substituted for the title "planning agency" in all city ordinances and other documents approved prior to the effective date of the ordinance codified in this chapter. The planning commission shall have the following duties and responsibilities: 1. Participate in the preparation and review of the comprehensive plan for the city; 2. Consider the location, character, extent, and effect of any proposed dedication of any street or other area for public use, including parks, public ways, public buildings, or public structures, with reference to the comprehensive plan, pursuant to RCW 35A.63.080, 3. Review and make recommendations on all applications for amendments to the comprehensive plan, official zoning map and official zoning ordinance of the city pursuant to Table 2.16.010-1; 4. Review and make recommendations on all housing design demonstration project applications pursuant to BIMC 2.16.020.5, including those housing design demonstration project applications involving land subdivision, based on a comprehensive review of the project at a public meeting; 5. Review and make recommendations on preliminary short subdivisions if requested by the director; 6. Review and make recommendations on all preliminary large lot subdivisions, preliminary long subdivisions, major site plan and design reviews, major conditional use permits, and major shoreline conditional use permits, taking into consideration the recommendation from the design review board and a comprehensive review of the project at a public meeting; 7. Such other advisory duties as may be assigned to it by the city council, or as specified in the BIMC; 8. Create the planning commission agenda prior to its publication in consultation with the director. C. Composition — Appointments — Terms — Residency — Chairpersons. 1. The commission shall consist of seven members, and the appointments and confirmations of those members shall be governed by Chapter 2.01 BIMC. All seven members of the commission shall be residents of the city. The members shall not be employees or officers of the city or appointed to another city committee, board or commission, except for specialized committees or task forces of limited duration. The commission shall reflect the diverse perspectives, work experiences and backgrounds represented in the community. Each commissioner shall endeavor to understand and agree to uphold the city's adopted comprehensive plan. 2. All members shall serve without compensation for three-year terms, which begin on July 1st and end on June 30th three years later. Members shall be appointed to a position number, and the terms are to be staggered, with no more than three positions expiring in any given year. Members may be reappointed to additional terms. No member shall serve more than three consecutive terms on the commission unless the city council determines that special expertise is required or there are no other qualified applicants. 3. The officers of the commission shall consist of a chairperson and a vice chairperson elected by the members of the commission for a one-year term. The election of officers shall take place at the first meeting of the year. In the event of the vacancy of the chair, the chairperson would be replaced by the vice chairperson, and the vice chairperson would be replaced by a vote of the members of the commission. Demotion of the chairperson or vice chairperson shall be governed by Chapter 2.01 BIMC. 4. The chairperson shall preside over meetings of the commission and may exercise all the powers usually incident to the office. Duties of the chairperson shall include, but not be limited to, committees of the whole, handling meeting items and discussion, conflict of interest, suspension of meetings, timing or discussion of issues, and clarification of issues and questions. The chairperson shall sign all approved commission minutes, reports or other official documents. 5. In the absence of the chairperson, the vice chairperson shall perform all the duties incumbent upon the chairperson. The chairperson and the vice chairperson both being absent, the members present may elect for the meeting a temporary chairperson who shall have the full powers of the chairperson during the absence of the chairperson and the vice chairperson. 6. The planning commission shall have full power to create subcommittees that would include up to three commissioners. Standing or temporary committees may be charged with such duties, examinations, investigations and inquiries relative to one or more subjects of interest to the commission. D. Removal and Resignation. 1. The removal and resignation of members appointed to the commission shall be governed by Chapter 2.01 BIMC. 2. Any unexpired term of a vacant office shall be filled by a qualified person appointed by the mayor and confirmed by the city council in accordance with the city's appointment cycle. E. Meetings. 1. The planning commission shall meet on the second and fourth Thursday of each month and may hold such special meetings as the planning commission may determine necessary. All regularly scheduled meetings shall begin at 7:00 p.m. and shall endeavor to adjourn by 9:00 p.m.; provided, that the hours of a regular meeting may be modified for exceptional purposes, as determined by the chairperson. 2. Planning commission meetings shall be held at the city of Bainbridge Island City Hall. Under special circumstances, regular and special meetings and retreats may be held in other locations as publicly noticed. 3. The planning commission shall give public notice of its meetings as provided by law. Notice for a public hearing shall be provided at least 10 days in advance of said hearing. 4. All meetings of the planning commission shall be open to the public and held in accordance with the Open Public Meetings Act (Chapter 42.30 RCW). In the event a regular meeting falls upon a legal holiday, the meeting shall be held on the following business day. 5. All meetings shall be conducted according to Robert's Rules of Order. 6. The planning commission shall review and approve rules of procedure and code of conduct annually. F. Quorum and Voting. 1. A simple majority of the appointed members shall constitute a quorum for the transaction of business. 2. When a commissioner has stepped down because of a potential conflict of interest, he or she shall not be counted for purposes of establishing a quorum during considerations undertaken while he or she is not sitting with the commission. G. Public Meetings and Hearings. The planning commission will consider land use applications at a public meeting and shall recommend approval, approval with conditions, or denial of an application. For legislative decisions, the planning commission will hold a public hearing and shall recommend approval, approval with conditions, or denial of an application. In making a recommendation, the planning commission shall consider the applicable decision criteria of this code, the comprehensive plan, all other applicable law, any necessary documents and approvals, and any testimony presented verbally or in writing at the public meeting. If the applicable criteria are not met, the planning commission shall recommend the proposal be subject to conditions or denied. A planning commission recommendation is not a final decision and is not subject to appeal. The planning commission's written recommendation and other documents upon which its decision is based shall be immediately transmitted to the director, the city council, and/or the hearing examiner, as applicable. H. Public Records. Minutes of each meeting, including a record of attendance, shall be prepared by the secretary and approved and signed at a subsequent meeting. The minutes do not need to reflect the actual discussion, but only the formal actions taken by the planning commission and shall include findings of fact and conclusions where applicable to support the planning commission's recommendation. The meeting minutes shall be posted on the city's web site. I. Consultants. Upon approval of the city council, the planning commission may recommend the retention of a planning consultant who assists the planning commission in its deliberations. The consultant shall be hired by the city. J. Conflict of Interest. Planning commission members shall sign a conflict of interest statement in accordance with the city's ethics program upon appointment and any reappointment. If a planning commission member has a financial interest in or is an applicant, or if a planning commission member is a paid or unpaid advocate, agent or representative for an applicant on a comprehensive plan amendment or land use application that will be reviewed or considered by the planning commission, the planning commission member shall not participate in a decision or recommendation on the application, and he or she will be asked to leave the meeting facility prior to commencement of discussion of that agenda item. K. Support Staff. The planning staff shall perform the following roles in its work with the planning commission: 1. Provide the initial record that includes the standards of review, relevant municipal code and comprehensive plan provisions and provisions of other permitting agencies. The staff report shall include findings of fact and conclusions of law based on evidence in the record; and 2. Provide technical information and research, prepare documents and maintain records. This includes drafting transmittal memos, preparing alternative findings and conclusions when appropriate, and obtaining legal opinions from the city attorney; and 3. Respond to questions and discussion of procedures; and 4. Assist the commission in articulating its collective will; and 5. Provide upon request formal opinions or recommendations from the city attorney, city engineer, public works director or the director of planning and community development on any matter that is pending before the planning commission; and 6. Arrange for the provision of city email accounts to commission members and related training on the use of email accounts, including personal computer privacy expectations while serving on the commission. (Ord. 2021-16 § 2, 2021; Ord. 2020-03 § 1 (Exh. A), 2020; Ord. 2020-19 § 1, 2020; Ord. 2019-01 §§ 2, 3, 2019; Ord. 2018-20 §§ 1— 3, 2018; Ord. 2014-18 § 1, 2014: Ord. 2013-25 § 1, 2013; Ord. 2011-02 § 2 (Exh. A), 2011) City of Bremerton PLANNING COMMISSION RULES and BYLAWS L AUTHORIZATION A. AUTHORIZATION The City of Bremerton Planning Commission is created and authorized by the Bremerton Municipal Code, Chapter 2.12, entitled "Planning Commission", City of Bremerton Ordinance No. 4069 and Article XI, Section II of the State Constitution. B. NAME The name of this commission shall be the City of Bremerton Planning Commission, hereinafter referred to as "Commission". II.ORGANIZATION A. MEMBERSHIP 1. The membership of the Commission shall be as set forth by Ordinance of the City. 2. At such time as a position is declared vacant by the Council or Mayor, action should be taken to fill the vacancy at the earliest possible date. B. ELECTION OF OFFICERS Upon determining a quorum to be present, at the regularly scheduled meeting in the month of November of each year, the Chairperson shall call for nominations from amongst the Commission membership and conduct an election for the succeeding Chairperson and Vice -chairperson of the Commission. The new Chairperson and Vice - chairperson shall take office in January. 2. Vacancies created by any cause shall be filled for the unexpired term by a new election at the next regular or special meeting. 3. The Chairperson and Vice -chairperson shall be limited to two consecutive terms in their respective offices. Rev. February 2021 C. OFFICERS AND DUTIES The officers of the Commission shall be the Chairperson and Vice -chairperson, each of whom shall serve for one (1) year (January through December), and until their successors are elected and qualified. 2. It shall be the duties of the Chairperson to: (a) Preside at all meetings and direct all the rights, duties and prerogatives of the Planning Commission; (b) Meet monthly with Planning Department staff to review the upcoming agenda; (c) Represent Planning Commission recommendations at City Council meetings if necessary, or appoint a representative from the Commission to do so (d) Appoint all committees. 3. It shall be the duties of the Vice -chairperson to: (a) Perform the duties of the Chairperson in the absence or disability of the Chairperson; 4. In the event of the absence of both the Chairperson and Vice -chairperson at an official Commission function, the Executive Secretary shall so inform the membership and request a motion for an Interim Chairperson. Upon approval, the Executive Secretary shall turn the meeting over to the Interim Chairperson. D. EXECUTIVE SECRETARY ROLES TO THE COMMISSION 1. The Director of Community Development of the City of Bremerton, Washington, or the Director's appointed representative, shall serve as the Executive Secretary and staff advisor to the Commission. 2. The Executive Secretary is responsible for maintaining Commission files, accomplishing administrative duties, and preparing an agenda for meetings. The goal for preparing and having available agenda packets for meetings shall be a minimum of five (5) calendar days in advance of a business meeting. The Planning Division of the Department of Community Development may be requested, as reasonable and within approved budget limitations, to assist the Commission with staff services necessary to carry out the work of the Commission. A secretary shall be provided by the Department of Community Development to prepare minutes conforming with Article VI (2) of the By-laws for pre - distribution approval by the Chairperson and keeps such records and perform such duties as prescribed by the Director. 3. The Executive Secretary will provide technical advice to the Commission and provide staff recommendations when requested. The Commission may not direct the Department of Community Development staff to conduct major studies, establish official policy, or establish Department work programs. Rev. February 2021 4. The Executive Secretary shall maintain a roster of attendance of the Commission and shall make periodic reports to the Mayor indicating Commission attendance patterns. III. DUTIES OF THE COMMISSION A. REGULAR MEETINGS Meetings of the Planning Commission will be scheduled the third Monday of each month, convening at a predetermined time in the main floor meeting chambers of the Norm Dicks Government Center (345 — 6th Street, Bremerton), or an agreed upon alternative meeting location. 2. By a majority vote or poll, the Planning Commission may establish an alternative meeting date. The meeting will be held no more than seven days before or seven days after the regularly scheduled meeting date. 3. The date, time and place, and items to be discussed in public hearings will be advertised in accordance with applicable requirements. B. SPECIAL MEETINGS The Commission may hold such special meetings as are deemed necessary by its Chairperson, by a majority of its members, or by the City Council. 2. Notice of such special meetings shall be given personally or by mail or email to each Commission member, and to each local radio and television station, local newspaper of general circulation, and other interested parties who request to be notified of such special meetings. Such notices shall be delivered personally or by mail at least twenty-four (24) hours before the time of such meeting. A special meeting shall not be called with less than forty-eight (48) hours notice, except by the consent of a majority of the Commission members. 3. When a special meeting is called, the call of the meeting shall include an agenda to be considered and only items on the agenda may be considered. C. COMMITTEE MEETINGS Appointed committees of the Commission may hold such meetings as are deemed necessary and which are called as provided above for Special Meetings. 2. Committee meeting agenda items, at the discretion of the moderator or vote of members present, may or may not be opened to public comment or discussion. All meetings, except as expressly provided by law, shall be open to the public. 3. Appointed committees that are appointed for a specific one-time task involving information gathering or to formulate a position or recommendation for the Commission's consideration need not hold advertised public meetings. Rev. February 2021 V. QUORUM A simple majority of the Commission as a whole shall constitute a quorum. No decisions, discussion, formal actions, nor other official business of the Commission may be conducted unless a quorum is present. 2. In the case of a meeting being interrupted by the loss of a quorum during the taking of public comments or testimony, the Commission may continue to accept and record all the public comments that are offered, but may not take any action on that agenda item, nor may continue to another agenda item, other than to adjourn. 3. When a quorum does not exist at a regularly scheduled or special meeting, a member or the Commission or the Executive Secretary may announce to all present that any public hearings are continued to a time, date, and location certain, thereby avoiding the need to re -advertise such public hearings. VI. VOTING A simple majority of the quorum present at voting shall be required for passage of any matter before the Commission. 2. The minutes of the meeting shall reflect the ayes and nays cast on a particular measure as well as the vote of each member present. 3. Whenever a tie vote occurs, such a vote shall be considered no decision concluded. In such a case, the Chairperson shall call for a new motion, or hearing no new motion and determining the case under consideration cannot be resolved during the current meeting, shall announce and direct the case to be carried over to the next Commission agenda, at which time it shall be scheduled for further consideration; or, the Chairperson may direct the Executive Secretary to forward the request to the City Council with no recommendation accompanied by the minutes of the request. VII. CONFLICT OF INTEREST A Commission member to whom some private benefit may come as a result of public action or by a private or business relationship with the applicant, may have a conflict of interest therefore and should not be a participant in that action. The private benefit may be direct or indirect and, in either case, the potential, not the actuality of a conflict of interest, should govern. A Commission member experiencing a potential conflict of interest shall declare his/her interest publicly. 2. When a member declares a potential conflict of interest, the member shall, prior to proceeding on the case, step down from his/her seat with the Commission and leave the room for the duration of the particular item. The record shall reflect that the member left the meeting room and shall reflect the member rejoining the proceeding. Rev. February 2021 3. In the event of a majority or all of the membership have a potential conflict of interest, the Commission shall first determine a reasonable method of rendering the decision prior to any proceeding on the case. V111. RULES OF CONDUCT The Chairperson shall act as spokesperson for the Commission. The Chairperson shall refrain from originating a motion in reference to the public business before the Commission while acting as Chairperson. 2. If the Chairperson wishes to originate a motion in regard to the public business at hand, the Chairperson must first relinquish the chair to an appropriate member and may not regain such chair until the conclusion of the specific business at hand. Members may request advice from the special knowledge of the Chairperson, in which case the Chairperson will confine his/her remarks to the information requested. 3. Members of the Commission and all persons present at the meeting will direct all comments to the Chairperson after being recognized by the said Chair. The Chairperson may give permission for Commission members to interrogate anyone giving testimony. Members of the audience shall not be permitted to directly interrogate members of the Commission, staff, the applicant/appellant, or others present. 4. Members may pass notes to the Chair during hearings to call attention to points in consideration or other matters to be discussed. 5. When public hearings are in progress, all members should refrain from a show of emotions that can be interpreted as expressing approval or dissent. All members shall refrain from passing notes or engaging in muffled or whispered conversations between members not intended for edification of all those present. 6. When the Chairperson determines that all public discussion of the business at hand has been presented, he/she shall close the meeting to the public and call for deliberation by the Commission. 7. When a motion is presented, a second to the motion is necessary to ratify acceptance. The Chairperson shall call for discussion. The vote may not be attempted until all members signify that the discussion be concluded. 8. Members may call for a recess at any time. Acceptance may be at the discretion of the Chairperson, or in the event of an objection, by a majority vote of the members present. 9. The Commission shall use the Rules of Conduct contained herein. However, in instances of difficulty, The Standard Code of Parliamentary Procedure may be consulted for guidance. The secretary shall have a copy available in the meeting room for reference. Rev. February 2021 IX. PROCEDURES FOR CONDUCTING MEETINGS A. AGENDA 1. The agenda shall contain the following items in the order so stated; provided that upon approval by vote of the Commission, items may be arranged or deleted from the agenda. 2. At the opening of the meeting, the Commission shall confirm the agenda for the meeting by a vote. SUGGESTED AGENDA FORMAT I. CALL TO ORDER II. ROLL CALL III. APPROVAL OF THE AGENDA IV. APPROVAL OF THE MINUTES V. PUBLIC MEETING A. CALL TO THE PUBLIC B. PUBLIC HEARING VI. BUSINESS MEETING A. CHAIR REPORT B. DIRECTOR'S REPORT C. OLD BUSINESS D. NEW BUSINESS VII. ADJOURNMENT X. AMENDMENTS 1. Amendments to the Rules and By-laws of the Planning Commission may be proposed at any regular or special meeting of the Commission and acted upon at the following meeting. Changes require a majority vote of the full Planning Commission. Written and notarized proxy votes will be accepted. I certify the above to be accurate. February 23, 2021 DATE February 23, 2021 DATE Rev. February 2021 [PROPOSED] DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF PORT ORCHARD AND BLUEBERRY APARTMENTS QOZB, LLC FOR THE DEVELOPMENT AND FUNDING OF CERTAIN TRANSPORTATION IMPROVEMENTS THIS DEVELOPMENT AGREEMENT is made and entered into this day of 2023, by and between the City of Port Orchard, a non -charter, optional code Washington municipal corporation, hereinafter the "City," and Blueberry Apartments QOZB, LLC, a Washington limited liability company, hereinafter the "Owner" (individually, a "Party" and collectively, the "Parties"). The Parties hereby agree as follows: RECITALS WHEREAS, the Washington State Legislature has authorized the execution of a development agreement between a local government and a person having ownership or control of real property within its jurisdiction (RCW 36.70B.170(1)); and WHEREAS, a development agreement must set forth the development standards and other provisions that shall apply to, govern, and vest the development, use and mitigation of the development of the real property for the duration specified in the agreement (RCW 36.70B.170(1)); and WHEREAS, a development agreement must be consistent with the applicable development regulations adopted by a local government planning under chapter 36.70A RCW (RCW 36.70B.170(1)); and WHEREAS, Port Orchard adopted Chapter 20.26 of the Port Orchard Municipal Code ("POMC" or "Code") which establishes the standards and procedures for Development Agreements in Port Orchard; and WHEREAS, Chapter 20.26 POMC is consistent with State law; and WHEREAS, the Owner has applied for a Development Agreement under Chapter 20.26 POMC on DATE and such Agreement has been processed consistently with the POMC and State law; and WHEREAS, this Development Agreement by and between the City of Port Orchard and the Owner (hereinafter the "Development Agreement" or "Agreement"), relates primarily to the development of property owned by Owner at 4330 and 4336 Bethel Rd SE, Port Orchard, Washington (Kitsap County Tax Parcels #022301-4-043-2007, 022301-4-012-2004, 022301-4- 026-2008) (hereinafter, the "Property"); and WHEREAS, the Owner proposes to develop the Property with a multi -family development consisting of 108 multifamily units within six buildings, parking for 183 vehicles, landscaping, Development Agreement for Funding Transportation Improvements & Right of Way Dedication Blueberry Apartments (DRAFT 2/7/2023) Page 1 of 16 iManage\366922\0047\ 10600329.v2-2/7/23 outdoor amenity areas, and associated site improvements (collectively, the "Development Project" or City Permit No. PW22-005); and WHEREAS, the City is undertaking review of the Development Project pursuant to the POMC and has undertaken State Environmental Policy Act ("SEPA") review for the Development Proposal with the issuance of a Mitigated Determination of Non -significance issued on September 16, 2022 ("MDNS"). The MDNS for the Development Project was not timely appealed; and WHEREAS, associated the Development Project, the Owner proposes dedicate certain property ("Transportation Improvement Project Property") to the City for the purpose of the City's construction of a portion of a City transportation improvement defined as Project 2.04A on the impact fee study as defined herein as the "Transportation Improvement Project" which property dedication is eligible for a transportation impact fee credit pursuant to RCW 82.02.060(4) and POMC 20.182.080; and WHEREAS, the Transportation Improvement Project Property dedication is necessary for the City's development of the Transportation Improvement Project which will benefit the Development Project and the general public; and WHEREAS, this Agreement governs the dedication of the Transportation Improvement Project Property to the City and the respective transportation impact fee credits that will result from the Owner dedicating the Transportation Improvement Project Property; and WHEREAS, POMC 20.32.100 requires a minimum ground floor elevation of two feet for all "Apartment" building types and the Parties agree that, as proposed, the Development Project provides an equal or better ground floor privacy for residents and aesthetic screening than could be provided with strict adherence to the Code, therefore, the City has agreed that Owner may depart from the requirements of POMC 20.32.100 in the following manner: no minimum ground floor elevation shall be applied; and WHEREAS, except with regard to this Transportation Improvement Project Property dedication and the respective applicable transportation impact fee credits, and the departure from POMC 20.32.100 as described herein, this Agreement does not establish or modify the standards or conditions for the underlying Development Project which is being undertaken in accordance with applicable code and regulations; and WHEREAS, in consideration of the benefits conferred by this new Agreement, which reflect the current plans of both the City and the Owner and include a transportation impact fee credit calculation, the Parties deem it in their best interests to enter into this Agreement; and WHEREAS, the City Council held a public hearing on [Date] regarding this Agreement; and WHEREAS, after a public hearing, by Ordinance No. [xxx], the City Council authorized the Mayor to sign this Agreement with the Owner. Development Agreement for Funding Transportation Improvements & Right of Way Dedication Blueberry Apartments (DRAFT 2/7/2023) Page 2 of 16 iManage\366922\0047\ 10600329.v2-2/7/23 AGREEMENT Section 1. The Property. The Property comprises 4330 and 4336 Bethel Rd SE, Port Orchard, Washington (Kitsap County Tax Parcels #022301-4-043-2007, 022301-4-012-2004, and 022301-4-026-2008). The Property is described on Exhibit A which is attached hereto and incorporated herein by this reference as if set forth in full. A map of the Property is shown Exhibit B on which is attached hereto and incorporated herein by this reference as if set forth in full. Section 2. Transportation Improvement Project Property. Pursuant to this Agreement, Owner shall be responsible for the dedication of the Transportation Improvement Project Property to the City as described herein. a) Transportation Improvement Project PropertX. Owner shall dedicate certain property necessary for the City to construct a portion the Bethel Phase 1 Project located at the intersection of Blueberry Road and Bethel Avenue, Project 2.04A on the City impact fee study (defined herein as the "Transportation Improvement Project Property") as shown in Exhibit C. The exact dimensions and configuration of the Transportation Improvement Project Property will be determined following completion of final design of the Transportation Improvement Project. The roadway portion will be constructed by the City at a future date. The dedication of the Transportation Improvement Project Property shall be eligible for transportation impact fee credits as provided in Section 8 of this Agreement. b) Transportation Impact Fee Credit ApplicabilitX. The transportation impact fee credits authorized by this Agreement are only applicable to pending Building Permit application 22-671, 22-672, 22-673, 22-674, and 22-675 for the Property(ies) identified on Exhibit B. Section 3. Definitions. As used in this Agreement, the following terms, phrases, and words shall have the meanings and be interpreted as set forth in this Section. a) "Adopting Ordinance" means the Ordinance which approves this Agreement, as required by RCW 36.7013.200 and Chapter 20.26 POMC. b) "Council" or "City Council" means the duly elected legislative body governing the City of Port Orchard. c) "Development Project" means the development of the Property with approximately 108 units of housing within six buildings, parking for 183 vehicles, landscaping, outdoor amenity areas, and associated site improvements, as shown in Exhibit B and approved by the City under Permit PW22-005 and associated with Building Permit No. 22-671, 22-672, 22- 673, 22-674, and 22-675. d) "Director" means the City's Public Works Director. e) "Effective Date" means the effective date of the Adopting Ordinance. Development Agreement for Funding Transportation Improvements & Right of Way Dedication Blueberry Apartments (DRAFT 2/7/2023) Page 3 of 16 iManage\366922\0047\ 10600329.v2-2/7/23 f) "Maximum credit" means the maximum amount of transportation impact fee credits to be provided by the City to the Owner for the Transportation Improvement Project Property dedication pursuant this Agreement. g) "Transportation Improvement Project" means the Transportation Improvement Project described above which serves both the Property and the greater community which will be undertaken by the City at a later date. Section 4. Exhibits. Exhibits to this Agreement are as follows: a) Exhibit A — Legal Description of the Property. b) Exhibit B — Map of the Property and the Development Project and with permits listed in Section 2 identified. c) Exhibit C — Transportation Improvement Project Property showing the approximate location of property to be dedicated by Owner. The final determination on the exact property to be dedicated shall occur at a later date after final design of the Transportation Project is complete. Section 5. Parties to Development Agreement. The Parties to this Agreement are: a) The "City" is the City of Port Orchard, whose office is located at 216 Prospect Street, Port Orchard, WA 98366. b) The "Owner" is a private enterprise which owns the Property in fee, and whose principal office is located at 7809 Pacific Avenue, Tacoma WA 98408. Section 6. Term of Agreement; No Vesting to Fees. This Agreement shall commence upon the Effective Date and shall continue in force for a period of five (5) years unless extended or terminated as provided herein. Provided, however, that the Owner shall complete the Property Dedications as set forth in Section 7 below which shall be prior to expiration of this Agreement. The requirement to dedicate the Transportation Improvement Project Property shall survive expiration or termination of this Agreement. This Agreement does not vest the Owner to any fees. Fees shall be charged in accordance with the fee schedule that is in effect at the time that the building permits for the apartment complex are issued and all permit fees have been paid. Following the expiration of the term or extension thereof, or if sooner terminated, this Agreement shall have no force and effect except for such sections which are specifically intended to survive expiration or termination. Section 7. Property Dedication Schedule. The Owner will dedicate the Transportation Improvement Project Property which shown on Exhibit C, as it may be modified follow final design, to the City in a form acceptable to the City shall be completed within eighteen (18) months of the effective date of this Agreement. The Owner agrees that the City may withhold issuance of Development Agreement for Funding Transportation Improvements & Right of Way Dedication Blueberry Apartments (DRAFT 2/7/2023) Page 4 of 16 iManage\366922\0047\ 10600329.v2-2/7/23 such Certificate of Occupancy (or any other Certificates of Occupancy for the Development Project) until such time as the dedications have been completed. If this property dedication is not exempt from real estate excise tax, then the City shall pay any real estate excise tax so due on this transfer. This section shall survive termination of the Agreement. Section 8. Impact Fee Credits for Transportation Improvement Project Property dedication. a) Transportation Impact Fee Credit. The maximum amount of the transportation impact fee credit for the Transportation Improvement Project Property dedication to be made by Owner under this Agreement shall be limited to the lessor of. the total Transportation Impact Fees due on the Project (currently calculated as an estimated $245,245.84), or the value of the Transportation Improvement Project Property dedication as determined in Section 9, or the City's estimated cost for the portion of Project 2.04A ($1,740,094) ("Maximum Transportation Impact Fee Credit"). The credits provided under this Section are limited to this Maximum Transportation Impact Fee Credit. Once the Maximum Transportation Impact Fee Credit has been achieved through credits applied to Owner for the Development Project, Owner will be required to comply with the impact fee provisions of the Code for any further development of the Property that requires payment of transportation impact fees, including payment of any transportation impact fees incurred over and above the Maximum Transportation Impact Fee Credit. b) Credit Granted. The City hereby grants the Owner a credit against transportation impact fees for fair market value of the Transportation Improvement Project Property as set forth in this Agreement and as calculated under the provisions contained Sections 8 and 9. The total estimated transportation impact fee required for the Development Project is currently estimated as $245,245.84. The Owner shall pay the transportation impact fees based on the rate schedule in effect at the time payment has been made to the City for building permits 22-671, 22-672, 22-673, 22-674, and 22-675. Such payment shall be made as set forth below in subsection "c" prior to issuance of such permits by the City. c) Transportation Impact Fees to be Deposited into Escrow. The Parties agree that the estimated transportation impact fees due will likely substantially exceed the credit granted by the City for the dedication of the Transportation Improvement Project Property. Therefore, the Parties agree that Owner shall establish an escrow account at a Washington escrow company of its choosing and will deposit therein the full transportation impact fees due (no credit applied). The escrow agreement for such deposit(s) shall be in a form acceptable to the City. Such deposit(s) shall be made and evidence thereof presented to the City prior to issuance of any building permits for the Property. To the extent additional permits are issued at different times, additional deposits of the then -due transportation impact fees shall be made with evidence thereof provided to the City prior to permit issuance. The escrow agreement for holding the fees shall include the following provisions: (1) no funds shall be released to any Party Development Agreement for Funding Transportation Improvements & Right of Way Dedication Blueberry Apartments (DRAFT 2/7/2023) Page 5 of 16 iManage\366922\0047\ 10600329.v2-2/7/23 until (a) a fair market value for the Transportation Improvement Project Property has been established in accordance with Section 9 below; (b) the dedication has been completed by the Owner and accepted by the City; and (c) the City has certified the total Maximum Transportation Impact Fee Credit due to the Owner and has provided such certification to the escrow company; (2) the escrow company will release the certified credit amount to the Owner and release the remaining escrow funds to the City; (3) any interest that has accrued on the escrow account shall be split and distributed according to the proportion released to each Party; (4) if the Owner fails to dedicate the Transportation Improvement Project Property to the City in accordance with the terms of this Agreement, then the City may request and the escrow company shall release all funds and interest thereon to the City within 15 days of receipt of the City's request. d) Owner shall dedicate the Transportation Improvement Project Property to the City generally as shown on Exhibit C, but in the final configuration as determined following the final design of the Transportation Improvement Project by the City. Owner shall complete such dedications no later than eighteen (18) months after the effective date of this Agreement or prior to the City's issuance of a Certificate of Occupancy for the first building permit for the Development Project, whichever time period is shorter. a) In the event Owner defaults on any requirement under this Agreement, or defaults on dedicating the Transportation Improvement Project Property, the City's remedies include obtaining the release of transportation impact fee funds and interest theron from escrow and/or holding any outstanding Certificates of Occupancy until such time the Transportation Improvement Project Property dedication is completed, including the Parties' agreement on valuation, and any outstanding impact fees are paid in full or credited. b) The City agrees that these credits are consistent with RCW 82.02.060(4) and that they are consistent with POMC 20.182.080. Section 9. Valuation of Property Dedications. The Parties agree to value the Transportation Improvement Project Property to be dedicated will be set as the fair market value as described in this subsection. The Parties shall value the Transportation Improvement Project Property as follows: The Owner shall hire a certified property appraiser, pay for the appraisal, and provide a copy of that appraisal report to the City. The date for valuation purposes, including but not limited to sales comparisons used for the valuation, shall be the effective date of this Agreement. The City shall use its best efforts to review the appraisal report and provide a response to Owner on the valuation within 30 days of receipt. If both the City and the Owner agree that the appraisal is fair and reasonable, then the appraised value will be accepted as the Property value for transportation impact fee credit purposes. If the City disagrees with the appraisal, then the City may hire its own appraiser to perform a second appraisal at the Owner's expense. The date for valuation purposes shall be the same as used in the Owner's appraisal. The City shall use its best efforts to obtain an appraisal report within 60 days of notice to the Owner of its disagreement with Owner's appraisal. If that second City -initiated appraisal is within twenty (20) percent of the value Development Agreement for Funding Transportation Improvements & Right of Way Dedication Blueberry Apartments (DRAFT 2/7/2023) Page 6 of 16 iManage\366922\0047\ 10600329.v2-2/7/23 established by the first Owner -initiated appraiser, then the Parties will take the mid -point between the two appraisals and use that as the fair market value. If the appraisals are more than 20 percent apart, the Parties have the option of either agreeing to a value or establishing another method to set the fair market value of the Transportation Improvement Project Property. If the Parties are unable to agree, then they shall submit the valuation decision to binding arbitration with a mutually agreeable arbitrator, or if they cannot agree on an arbitrator then the Parties will submit the valuation dispute to Judicial Dispute Resolution, LLC. Each Party shall pay one half of the costs of arbitration. Section 10. Other Impact Fees. The Development Project is subject to the City's impact fee requirements of POMC Ch. 20.182. Owner shall pay the applicable impact fees for the Development Project at the rates in effect at the time each fully complete building permit application is submitted. Section 11. Ground Floor Elevation Modification. The Development Project is not subject to the minimum two foot (2) ground floor elevation requirement that is set forth in POMC 20.32.100 as applicable to all "Apartment" building types, regardless of site topography or other design considerations. The Development Project provides equal or better ground floor privacy for residents and aesthetic screening than could be provided with strict adherence to the Code, therefore, the City has agreed that Owner may depart from the requirements of POMC 20.32.100 in the following manner: no minimum ground floor elevation shall be applied. Section 12. Default. a) Subject to extensions of time by mutual consent in writing, failure, or delay by either Party to perform any term or provision of this Agreement shall constitute a default. In the event of alleged default or breach of any terms or conditions of this Agreement, the Parry alleging such default or breach shall give the other Party not less than thirty (30) days' notice in writing, specifying the nature of the alleged default and the manner in which said default may be cured. During this thirty (30) day period, the Parry charged shall not be considered in default for purposes of termination or institution of legal proceedings. b) After notice and expiration of the thirty (30) day period, if such default has not been cured or is not being diligently cured in the manner set forth in the notice, the other Party to this Agreement may, at its option, institute legal proceedings pursuant to this Agreement. In addition, the City may decide to file an action to enforce the City's Codes, and to obtain penalties and costs as provided in the POMC for violations of this Agreement and the Code. Section 13. Termination. This Agreement shall terminate five (5) years after Effective Date. Upon termination and upon the request of the Owner, the City shall record a notice of such termination in a form satisfactory to the Parties that the Agreement has been terminated. Section 14. Extension and Modification. Any request for extension or modification, if allowed under the City's code, shall be subject to the provisions contained in POMC Chapter 20.26 POMC. Development Agreement for Funding Transportation Improvements & Right of Way Dedication Blueberry Apartments (DRAFT 2/7/2023) Page 7 of 16 iManage\366922\0047\ 10600329.v2-2/7/23 Section 15. Effect upon Termination on Owner. Termination of this Agreement as to the Owner shall not affect any of the Owner's respective obligations to comply with the City Comprehensive Plan and the terms and conditions or any applicable zoning code(s) or other land use entitlements approved with respect to the Property, or obligations to pay assessments, liens, fees, or taxes. Furthermore, if the Agreement expires without the Transportation Improvement Project costs being fully recovered by impact fee credit or mitigation funds, the Owner will no longer be eligible to receive such credits. Section 16. Effects upon Termination on City. Upon any termination of this Agreement as to the Property, or any portion thereof, the City will be under no obligation to provide any additional credits or reimbursement to Owner even if the Transportation Improvement Project costs have not been fully recovered at the time of expiration or termination. Section 17. Assignment and Assumption. The Owner shall have the right to sell, assign or transfer this Agreement with all rights, title, and interests therein to any person, firm, or corporation at any time during the term of this Agreement with a sale of the underlying property. Owner shall provide the City with written notice of any intent to sell, assign, or transfer all or a portion of the Property, at least 30 calendar days in advance of such action; provided; however, failure to strictly comply with the 30 calendar day notice provision shall not be considered a breach of this Agreement. Section 18. Binding on Successors; Covenants Running with the Land. The conditions and covenants set forth in this Agreement and incorporated herein by the Exhibits shall run with the land and the benefits and burdens shall bind and inure to the benefit of the Parties. The Owner and every purchaser, assignee or transferee of an interest in the Property, or any portion thereof, shall be obligated and bound by the terms and conditions of this Agreement, and shall be the beneficiary thereof and a Party thereto, but only with respect to the Property, or such portion thereof, sold, assigned or transferred to it. Any such purchaser, assignee or transferee shall observe and fully perform all of the duties and obligations of the Owner contained in this Agreement, as such duties and obligations pertain to the portion of the Property sold, assigned, or transferred to it. Section 19. Amendment to Agreement; Effect of Agreement on Future Actions. No waiver, alteration, or modification to any of the provisions of this Agreement shall be binding unless in writing, signed by the duly authorized representatives of the Parties, be consistent with Chapter 20.26 POMC, and, where considered substantive as determined by the Director, follow the same procedures set forth in Chapter 20.26 POMC. Nothing in this Agreement shall prevent the City Council from making any amendment to its Comprehensive Plan, Zoning Code, Official Zoning Map or development regulations after the Effective Date of this Agreement. Section 20. General release. Owner may free itself from further obligations relating to the sold, assigned, or transferred property, provided that the buyer, assignee, or transferee expressly assumes the obligations under this Agreement as provided herein, including the obligation to timely dedicate the Transportation Improvement Project Property. Development Agreement for Funding Transportation Improvements & Right of Way Dedication Blueberry Apartments (DRAFT 2/7/2023) Page 8 of 16 iManage\366922\0047\ 10600329.v2-2/7/23 Section 21. Notices. Notices, demands, correspondence to the City and/or Owner (as applicable) shall be sufficiently given if dispatched by pre -paid first-class mail to the addresses of the Parties as designated in "Written Notice" Section 33 below. Notice to the City shall be to the attention of both the City Clerk and the City Attorney. Notices to successors -in -interest of the Owner shall be required to be given by the City only for those successors -in -interest who have given the City written notice of their address for such notice. The parties hereto may, from time to time, advise the other of new addresses for such notices, demands or correspondence. Section 22. Reimbursement for Agreement Expenses of the City. Owner agrees to reimburse the City for actual expenses incurred over and above fees paid by Owner as an applicant incurred by City directly relating to this Agreement, including recording fees, publishing fees, attorneys' fees, and reasonable staff and consultant costs not otherwise included within application fees; provided however, the City shall provide written notice to Owner if the expenses to the City are anticipated to exceed Twenty -Five Thousand Dollars and No Cents ($25,000.00) and the Parties shall meet and confer regarding the City's anticipated costs. Upon payment of all expenses, the Owner may request written acknowledgement of all fees. Such payment of all fees shall be remitted to the City, at the latest, within thirty (30) days from the City's presentation of a written statement of charges to the Owner. Section 23. Applicable Law, Resolution of Disputes, and Attorneys' Fees. It is the Parties' intent to work cooperatively and to resolve disputes in an efficient and cost-effective manner. All disputes arising out of or relating to this Agreement shall be resolved as follows: a) Settlement Meeting. If any dispute arises between the Parties relating to this Agreement, then the Parties shall meet and seek to resolve the dispute, in good faith, within ten (10) working days after a Party's request for such a meeting. The City shall send the Mayor, Community Development Director, Public Works Director, and/or the Mayor's designee and any persons with information relating to the dispute, and Owner shall send an owner's representative and any consultant or other person with technical information or expertise related to the dispute. b) Court. If the Parties cannot resolve the matter in a settlement meeting, then jurisdiction of any resulting litigation shall be filed in Kitsap County Superior Court, Kitsap County, Washington, or the U.S. District Court for Western Washington, as applicable. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. The non -prevailing Party in any action brought to enforce this Agreement shall pay the other Parties' expenses and reasonable attorney's fees. Section 24. No Third -Party Beneficiaries. Except as otherwise provided herein, this Agreement shall not create any rights enforceable by any party who is not a Party to this Agreement. Section 25. City's right to breach. The Parties agree 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 Development Agreement for Funding Transportation Improvements & Right of Way Dedication Blueberry Apartments (DRAFT 2/7/2023) Page 9 of 16 iManage\366922\0047\ 10600329.v2-2/7/23 action is required by federal or state law. Section 26. Owner's Compliance. The City's duties under the Agreement are expressly conditioned upon the Owner's substantial compliance with each and every term, condition, provision, and/or covenant in this Agreement, including all applicable federal, state, and local laws and regulations and the Owner's obligations as identified in any approval or project permit for the property identified in this Agreement. Section 27. Limitation on City's Liability for Breach. Any breach of this Agreement by the City shall give right only to damages under state contract law and shall not give rise to any liability under Chapter 64.40 RCW, the Fifth and Fourteenth Amendments to the U.S. Constitution, including but not limited to 42 U.S.C. § 1983, or similar state constitutional provisions. Section 28. Third Party Legal Challenge. In the event any legal action or special proceeding is commenced by any person or entity other than a Party to challenge this Agreement or any provision herein, the City may elect to tender the defense of such lawsuit or individual claims in the lawsuit to Owner. In such event, Owner shall hold the City harmless from and defend the City from all costs and expenses incurred in the defense of such lawsuit or individual claims in the lawsuit, including but not limited to, attorneys' fees and expenses of litigation. The Owner shall not settle any lawsuit without the consent of the City. The City shall act in good faith and shall not unreasonably withhold consent to settle. Section 29. Specific Performance. The Parties specifically agree that damages are not an adequate remedy for breach of this Agreement, and that the Parties are entitled to compel specific performance of all material terms of this Agreement by any Party in default hereof. Section 30. Recording. This Agreement shall be recorded against the Property with the real property records of the Kitsap County Auditor. During the term of the Agreement, it is binding upon the owners of the property and any successors in interest to such property. Section 31. Severability. This Agreement does not violate any federal or state statute, rule, regulation or common law known; but any provision which is found to be invalid or in violation of any statute, rule, regulation or common law shall be considered null and void, with the remaining provisions in the Agreement remaining viable and in effect. Section 32. Non -Waiver of Breach. The failure of a Party to insist upon strict performance of any of the covenants and agreements contained herein, or to exercise any option herein conferred in one or more instances shall not be construed to be a waiver or relinquishment of said covenants, agreements, or options, and the same shall be and remain in full force and effect. Section 33. Written Notice. All written communications regarding enforcement or alleged breach of this Agreement shall be sent to the parties at the addresses listed below, unless notified to the contrary. Unless otherwise specified, any written notice hereunder shall become effective Development Agreement for Funding Transportation Improvements & Right of Way Dedication Blueberry Apartments (DRAFT 2/7/2023) Page 10 of 16 iManage\366922\0047\ 10600329.v2-2/7/23 upon the date of both emailing and mailing by registered or certified mail, and shall be deemed sufficiently given if sent to the addressee at the address stated below: NAME OF OWNER: Blueberry Apartments QOZB, LLC Attn. Steve Novotny 7809 Pacific Avenue Tacoma WA 98408 powermystro@gmail.com CITY: Mayor City of Port Orchard 216 Prospect Street Port Orchard WA 98366 rputaansuu@portorchardwa.gov Copies shall also be transmitted to the City Clerk and City Attorney at the above address. Section 34. Time is of the essence. All time limits set forth herein are of the essence. The Parties agree to perform all obligations under this Agreement with due diligence. Section 35. Covenant of Good Faith and Cooperation. The Parties agree to take further actions and execute further documents, either jointly or within their respective power and authority, to implement the intent of this Agreement. Each Party covenants to use its best efforts and work cooperatively in order to secure the benefits and rights under this Agreement. The Parties shall not unreasonably withhold approvals or consents provided for in this Agreement. Each Party shall execute and deliver to the other all further documents as are reasonably necessary to carry out this Agreement, including the Transportation Improvement Project, the property dedications, and Development Project, as may be necessary to provide a Party with a full and complete enjoyment of its rights and privileges under this Agreement. Section 36. Interpretation. This Agreement has been reviewed and revised by legal counsel for both Parties, and no presumption or rule construing ambiguity against the drafter of the document shall apply to the interpretation or enforcement of this Agreement. Section 37. Counterparts. The Agreement may be signed in two or more counterpart copies with the same effect as if the signature of each counterpart copy were on a single instrument. Each counterparty shall be deemed as an original as to the Party whose signature it bears, and all such counterparts shall constitute one document. Section 38. Entire Agreement. The written provisions and terms of this Agreement, together with the Exhibits attached hereto, shall supersede all prior verbal statements of any officer or other representative of the Parties, and such statements shall not be effective or be construed as entering into or forming a part of or altering in any manner whatsoever, this Agreement. The entire agreement between the Parties with respect to the subject matter hereunder is contained in this Agreement and exhibits thereto. Development Agreement for Funding Transportation Improvements & Right of Way Dedication Blueberry Apartments (DRAFT 2/7/2023) Page 11 of 16 iManage\366922\0047\ 10600329.v2-2/7/23 IN WITNESS WHEREOF, the Parties have executed this Agreement on this day of , 2023. BLUEBERRY APARTMENTS QOZB, LLC CITY OF PORT ORCHARD Steve Novotny Its: APPROVED AS TO FORM: NAME Attorney for Owner EXHIBITS TO AGREEMENT: By: Rob Putaansuu Its: Mayor APPROVED AS TO FORM: Jennifer S. Robertson Attorney for Port Orchard ATTEST: Brandy Wallace, CMC Port Orchard City Clerk Exhibit A — Legal Description of the Property being developed by Owner Exhibit B — Map of the Property and the Development Project and with permits listed in Section 2 identified Exhibit C — Transportation Improvement Project Property dedication map Development Agreement for Funding Transportation Improvements & Right of Way Dedication Blueberry Apartments (DRAFT 2/7/2023) Page 12 of 16 iManage\366922\0047\ 10600329.v2-2/7/23 NOTARY BLOCK FOR PORT ORCHARD STATE OF WASHINGTON ) ) ss. COUNTY OF KITSAP ) I certify that I know or have satisfactory evidence that Robert Putaansuu is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he was authorized to execute the instrument and acknowledged it as the Mayor of Port Orchard to be the free and voluntary act of such Party for the uses and purposes mentioned in the instrument. Dated: , 2023. (print or type name) NOTARY PUBLIC in and for the State of Washington, residing at: My Commission expires: Development Agreement for Funding Transportation Improvements & Right of Way Dedication Blueberry Apartments (DRAFT 2/7/2023) Page 13 of 16 iManage\366922\0047\ 10600329.v2-2/7/23 NOTARY BLOCK FOR BLUEBERRY APARTMENTS QOZB, LLC STATE OF WASHINGTON ss. COUNTY OF I certify that I know or have satisfactory evidence that Steve Novotny is the person who appeared before me, and said person acknowledged that (he/she) signed this instrument, on oath stated that he was authorized to execute the instrument and acknowledged it as the TITLE of Blueberry Apartments QOZB, LLC, a Washington limited liability company to be the free and voluntary act of such Party for the uses and purposes mentioned in the instrument. Dated: .2023. (print or type name) NOTARY PUBLIC in and for the State of Washington, residing at: My Commission expires: Development Agreement for Funding Transportation Improvements & Right of Way Dedication Blueberry Apartments (DRAFT 2/7/2023) Page 14 of 16 iManage\366922\0047\ 10600329.v2-2/7/23