HomeMy WebLinkAbout021323 Joint City Council and Planning Commission Meeting PacketPORT TOWNSEND CITY COUNCIL AGENDA CITY HALL COUNCIL CHAMBERS, 540 WATER STREET JOINT MEETING WITH PLANNING COMMISSION Workshop Meeting with Planning Commission 6:30 p.m. February 13, 2023 • Attend in person or virtually via computer or tablet at t.t. Joinwebirtar.com enter the 9 digit Webinar ID 242-937-955 • Phone only (muted - listen -only mode) United States: Local Dial In — (360) 390-5064 access code: 706-376-505# • Live stream (listen only): https://cityofpt.us/citycouncil/page/agendasminutesvideos. • Submit public comment emails to be included in the meeting record to: aubliccomment(�ci cit��V.us I. Call to Order/ Roll Call II. General Public Comment (regarding items not on the agenda) III. Discussion Items A. Tactical Infill Housing a. Staff Presentation b. Public Comment c. Council Discussion IV. Adjourn Americans with Disabilities Act In compliance with. the Americans with Disabilities Act, those requiring accommodation for this meeting should notify the City Clerk's Office at least 24 hours prior to the meeting at (360) 379-5083. r CiC' <i� yp° w 1 d / / Townsend DEVELOPMENT SERVICES Memo TO: FROM: DATE: RE: 250 Madison Street, Suite 3 1 Port Townsend, WA 98368 1360.379.5095 1 www.cityofpt.us City Council Planning Commission February 9, 2023 Joint Planning Commission/City Council Tactical Infill Discussion MEETING DATE: February 13, 2023 In response to the acute shortage of affordably priced housing in PT, the City has prioritized creating more opportunities for infill 'development. The goal of the "Tactical Infill" project is to identify and remove barriers in the zoning code that make it expensive and difficult to build housing sufficient to the community's needs for diverse and affordable housing. The Planning Commission's recommendations for which zoning actions to initially focus on initially are attached in the worksheet. As you may know, our current zoning code heavily favors residential use with approximately 89% of our land reserved for housing. The Planning Commission is excited about the potential for tactical infill, as we already have infrastructure in place where infill is likely to occur. In addition, more infill housing means more affordable home choices near jobs, schools, and transit and more options for first-time homebuyers. It also means a wide range of other benefits, including less sprawl into our farmland and forests, more walkable communities, reduced home energy use, less traffic, jobs for small, local builders, and potentially increased local tax revenue. Infill housing results in wonderful amenities that are also a key component to reducing energy consumption and greenhouse gas emissions. We understand the importance of engaging the community in the process of updating the zoning code and addressing any potential implications of these updates. For example, there are questions about how changes may affect land values, the conversion of rentals, and the availability of affordable housing. The Planning Commission is committed to ensuring that we have the data and information needed to make informed decisions and answer these questions. We also appreciate the need for flexibility in our zoning code to accommodate innovative and small- scale housing solutions. While increasing density to accommodate growth is a key aspect of our strategy, we must also consider the comprehensive affordability plan and minimize any potential displacement. Unfortunately, current market dynamics make it difficult for for-profit builders to finance affordable housing projects, as they require a large, approximately 20%, profit margin. This results in only expensive projects being built. In addition, our zoning codes also contribute to this problem, such as instances in which areas designated for multifamily housing are being developed as single-family or not being developed at all. Some of these factors and others have led to a displacement of residents from the City and into Jefferson County, and beyond. ' Infill: Infill or infill development refers to building within unused and underutilized lands within existing development patterns. Infill development is important to accommodating growth and redesigning our city to be environmentally- and socially -sustainable. owriseQ MEMO —Joint 2/13 Tactical Infill (2/13{23) Various approaches to zoning have had mixed results. For example, inclusionary zoning2 such as density bonuses offered in Planned Unit Developments, has not been effective in producing affordable housing in Port Townsend. Experience in other municipalities demonstrates that inclusionary zoning could have the same impacts of single family zoning: increased area home prices, raising area median income purchase requirements, accelerated bidding wars, and regression on cultivating community socioeconomic and racial diversity. Conversely, traditional zoning approaches have the effect of being exclusionary3. It is important to identify and avoid zoning practices that result in exclusionary outcomes. The Planning Commission believes that the negative relationship between exclusionary zoning and the base density in single- family zoning is an important issue to address in our roadmap to housing. A third approach, upzoning', is widely used in different circumstances, including work the Planning Commission did in the past year to reduce off-street parking requirements. Contrary to popular belief, the approach of upzoning does not necessarily increase market values, as land values are increasing regardless of upzoning actions. With these caveats in mind, the Planning Commission believes it's important to move forward on encouraging infill housing. Delaying infill density only perpetuates the supply problem. The Planning Commission also considers equity and inclusion to be valuable for any housing effort. We believe that our efforts should be accessible and equitable for all members of the community, regardless of race, ethnicity, income, or other factors. This is why we are committed to engaging the community and seeking their input on this issue. We are also mindful of the potential unintended consequences of our actions and believe that it is important to consider both content and process in our approach. We have compiled a list of actions that can help advance our housing supply, but recognize that it may not fully demonstrate all the connections or resolve the supply/demand affordability gap. The swift actions we propose are designed to remove code barriers affecting housing projects (some already in motion or about to be) and streamline the process, without causing unintended consequences such as policy inconsistency, displacement or directly affecting land prices. Beyond April 1st, the. City should continue engaging in discussions on how and when to increase density at the policy level through a Comprehensive Plan amendment, ideally as a 2023 annual amendment due in September. Moving forward, the Planning Commission would like to take a systemic approach to addressing the affordable housing crisis in Port Townsend. We are eager to discuss solutions that empower the community to build more infill housing with local builders, streamline the permitting process, and attract investment in housing. We are dedicated to working on a Comprehensive Plan update that allows for more density. 2 Inclusionary zoning uses local regulation of land use to require or incentivize production of affordable housing, tying affordable housing creation to the production of market -rate housing. 3 Exclusionary zoning refers to laws that place restrictions on the types of homes that can be built in a particular neighborhood. Examples of exclusionary zoning requirements include single-family zoning, minimum parking, and maximum lot coverage. Banning exclusionary zoning is sometimes referred to as blanket upzoning. 4 Upzoning refers to the process of changing the zoning code to allow new development capacity in targeted areas. While changing the base density (number of housing units per acre) is one way to do this, there are other ways such as changing height restrictions or eliminating parking requirements. Upzoning is distinct from rezoning which indicates a zoning change in allowable land use, for example, from single-family to multi -family (MISell d f`J111M 0 Ioii,i1t2/I3 Ta ca ih[i/13,3) We hope to work with City Council to propel this vision and lay out the beginning steps towards a more diverse and affordable housing supply. We believe that a focus on density, combined with a streamlined process and code clarity, can help facilitate this change and create a better future for our community. BACKGROUND November 7, 2022 Council heard a presentation on short-term, midterm, and long-term strategy to advance the 2023 workplan priority: deliver targeted, timed, and impactful zoning code changes to unlock and inspire affordable, dense, quality infill development. November 14, 2022 Council approved Resolution 22-004 approving contract for housing code updates to helo build residential capacity --------------------- November 30, 2022 City Retains SCJ for Tactical Infill Zoning Assessment December 15-16, Planning Commission Open mic and Interviews 2022 January 12, 2023 Planning Commission reviewed Interview Summaries, Tactical Infill Priority Directives, and potential code actions, provided feedback, and prioritized list of actions for consideration January 26, 2023 Planning Commission reviewed prioritized short list of code actions and refines further February 9, 2023 to allow room for Council input/additional items. Memo to Council prepared on project vision to guide 2/13 Joint Meeting Staff presented a December interview summary document, which distilled topics into issues upon which the tactical infill process must focus. The document also clarifies policy directives, particularly those reflected in the orientation interviews, establishing the larger context into which the zoning amendments must fit. Planning Commission reviewed a zoning action array informed by the December outreach interview summary; these are essentially potential zoning revisions, with a brief description of what they are intended to achieve and how much effort it may take to draft the individual text amendments and complete a worksheet of priorities. The list is far larger than what can be achieved by the Tactical Infill's Priority and Strategy task, so the Commission's objective was to identify those amendments believed to be most effective — within our available resources to produce new text. The first tasks of the Tactical Infill project are designed to hone in on priority, strategy and code amendments as quick as possible to produce text amendments prior to April 1, 2023 that can help unlock barriers to developing more compact and affordable infill housing. Borne out of this analysis are policy recommendations, that may not be fast and effective for the April 1" deadline, but inform multiple actions to occur later as part of a more comprehensive housing policy effort. To help facilitate prioritization, staff estimated the level of work necessary for each item, scoring each with a system of "energy points" to help compare one task against another with a maximum of 100. Planning Commissioners broke into small groups to discuss priorities and shared results with the at large group to determine consensus. At the January 26 meeting staff led Commissioners through a process to further refine priorities and create flexible space for City Council to weigh in at the February meeting. We removed actions that would explore land trust facilitation, bond requirements for development, and modifying Mixed Use Floor Area Ratios. We debated if setbacks should be reanalyzed. Based on staff recommendation describing challenges to find a path to compliance for illegal ADU's, or the challenges ADU designers faced with current setback requirements, we determined it was important to identify potential design flexibility. We also discussed holistic barriers to our builders who struggle with 3�1Page 'd o'sr MEMO –Joint 2/13 Tactical Infill (2/13/23) subcontractors, aging workforce, loans, and supply chain. Questions were raised about the Rainier/Howard St subarea plan and corresponding zoning amendments, which require ground floor commercial uses. During stakeholder interviews, we heard that this is a barrier to projects, and was generated during a time when job growth was weighted higher than housing. We also added reprioritizing cottage housing updates to ensure that any barriers in permitting and design review be removed because it is currently underutilized. Finally, staff informed the Planning Commission of an opportunity to consider amending the development regulations to allow conversion of existing larger homes to exceed -the base density requirements. This action is consistent with Comprehensive Plan policies specifically on this goal (housing Policy 4.1.1.b). The actions that we removed do not reflect their worthiness—if time and staff capacity were no issue, we believe most all of them should be considered. Actions that did not make this list should be revisited with future updates.. We have refined our list to allow Council to add potential additions to the effort, that could be turned around quickly by the staff team. The PC hopes this has been a useful beginning to an iterative process that will continue with the City's Roadmap to Housing. Equity, anti -displacement, inclusion: Planning Commissioners hold the position that any work we do to advance housing supply should minimize displacement, consider current and potential effects on the housing market, and prioritize housing as a basic need rather than profit opportunity. Searching our Comprehensive Plan, there is a lack of policies that contain clear directives addressing anti -displacement and equity, which we are eager to rectify. The planning field is focusing on eliminating exclusionary zoning practices to achieve equity in our communities. The American Institute of Certified Planners Code of Ethics aspirational principles requires that we recognize and work to mitigate the impacts of existing plans and procedures that result in patterns of discrimination, displacement, or environmental injustice, promote an increase in the supply and quality of affordable housing and improved services and facilities with equal access for all residents, including people with disabilities. To this end, the Planning Commission in August 2022 approved a statement of Diversity, Equity and Inclusion and committed to seeking out and eliminating institutional and unconscious bias in our municipal code, especially in our zoning code, and City plans while supporting state and federal non-discrimination laws regarding daily life in our community. We also endeavor to educate ourselves on the history of exclusionary zoning, housing equity, and climate justice. These policy statements more directly guide our work and will guide future Comprehensive Plan amendments or other zoning amendment projects. Xv Lois Stanford, Chair Date ATTACHMENTS: A. Interview Summaries and Zoning Actions B. Planning Commission Diversity, Equity, and Inclusion statement for the City of Port Townsend, August 2022 C. 2/9 Zoning Actions Worksheet v 3.0 D. Draft Port Townsend Infill Zoning Approach 4IPage Attachment A 1' oirt Townsend ... acdcaO Dnfdl I lousung Strate&s PC Review Packet January 2023 irient tbn Cahners t oins and PC Open MSC The City of Port Townsend invited community members interested in housing attainability to join in conversations on housing. Hour-long conversations, held in a series over December 15 and 16, 2022 in the Cotton Building, focused on topics and issues to inform short-term zoning proposals and longer-term policy initiatives to improve housing availability and affordability in town. The Planning Commission hosted an "open mic" event Thursday evening to hear thoughts from other community members, making time available for individuals to address the Commission with their thoughts and ideas. More than 30 individuals participated in the conversations, representing an array of agencies, non- profits, and other organizations concerned about housing in Port Townsend. Date Time Participants Affiliation 9:00 Emma Bolin Judy Surber Steve King Suzanne Wassmer Tyler Johnson City of Port Townsend December 15 1:00 Liz Revord Housing Solutions Network Fred Kimball Kelsey Caudebec Eric Jones Barbara Morey Lauren Ehnebuske Carol McCreary Diane McDade Jaisiri Lingappa John Effman Karen Bondruant OlyCap Lynn LeMaster Teri Nomura Olympic Housing Trust Debbi Steele Community Build Project Dunia Faulx Jefferson Healthcare Amanda Grace Jefferson Community Foundation/ Goodman Sanitation 2:00 Eric Toews Port of Port Townsend 3:00 Lily Queen Housing designers Jesse Thomas 4:00 Lizanne Coker Homebuilders Association Fred Kimball LD Richert John Geiser Attachment A Date Time Participants Affiliation December 15 PC Open Mic 6:00 Liz Berman Viki Sonntag Fred Kimball Housing Solutions Network Jaisri Lingappa Housing Solutions Network Patrick Tompkins Liz Revord Housing Solutions Network Pete Langley Port Townsend Foundry Bill Wise Former Chair of EDC Team Jefferson Judith Alexander Griffin Myeks Buster Ferris Edensaw Jake Beattie NW Martime Center Sol Riou Morning Stargarden Michael Moore Bayside Housing Jamie Maciejewski Habitat for Humanity Kathryn Maly Scott Walker 8:00 Richard Tucker Jefferson Land Trust 9:00 Earll Murman Terrence Fleischer Emily Ingram Local Investor Network 1St Security Bank New American Funding Inc 10:00 Richard Berg Terrapin Architecture Amy Dahlberg Simon Little Studio STL Shane Harper Monica Mader 11:00 Arlene Allen Chamber of Commerce December 16 1:00 Jamie Maciewjewski Bob Collins Fred Kimball Habitat for Humanity 2:00 Michelle Sandoval Windermere Realty Teri Nomura Andres Andreiatis 3:00 Cindy Brooks Jefferson EDC Heather Dudley Nolette Bayside Housing Services Board Member 4:00 Scott Walker Transportation Lab David Thielk Jeff Randall Jefferson PUD Commissioner Tactical Infill Housing PC review packet —January 2023 2 Attachment A F 1p II OS This is a list of the topics raised during the conversations, describing the importance of each topic and the information relevant for this project. It parses out the elements of the conversations for tracking, explaining the contexts of the discussions and how each topic may be relevant to the tactical infill housing project. These topics inform the list of issues, presented later in this document, intended to spawn specific zoning strategies to address those issues of priority concern. Employee attraction Interviewees mentioned challenges with attracting employees because of the lack of available housing. Positions, like the 124 open jobs at the hospital, remain unfilled because of the community's inability to house prospective employees. Employee retention Some interviewees reported losing valued employees because they were either unable to find appropriate housing or were spending too much for their housing conditions. In some cases, employees — even those earning professional salaries — were relegated to living in their cars or with friends, questioning their decision to relocate to Port Townsend. Employers as housing partners Some interviewees suggested the area's larger employers, like the hospital, mill, and shipyard, construct housing units to support their employees' housing needs. Some may be better positioned than others to help, but some interviewees noted the hospital has a handful of units available for staff, but the intention is for those units to serve temporary shelter needs until their employees find a permanent residence. Insufficient inventory One interviewee noted that there are now fewer than 100 houses for sale in Port Townsend, with likely 500 potential home -buying households in the market. The rental inventory is similarly constrained, with exceptionally low vacancy rates. Consumptive development pattern Interviewees claim some of the lots within the city's limits are being underdeveloped, with owners of multiple adjacent properties developing only one home on an area which might otherwise accommodate several units. In some cases, houses are positioned on the properties in ways which might prohibit subsequent owners from further developing the adjoining lots, with homes crowding or straddling property lines and with utility service lines developed through private property rather than within rights of way. Infrastructure condition Many interviewees pointed to the condition of the City's water, wastewater, and storm water infrastructure, noting the "spaghetti" lines routed in easements or rights of way are poorly equipped to accommodate additional development. The lines are small and were installed as needed to serve individual homes, sometimes extending for hundreds of feet from City water and sewer mains. Tactical Infill Housing PC review packet —January 2023 Attachment A Infrastructure extension Some interviewees see land otherwise suitable for missing middle housing development not yet served by streets, water and sewer. Making infrastructure available earlier may help phase in development in places where higher -intensity housing is envisioned. Land value increases Property values in Port Townsend have skyrocketed in the past five years, according to interviewees. Many remarked they could not now afford to live in the place they own or rent if they were in the market today. Construction and labor cost increases Several interviewees cited increasing construction and labor costs as a major impediment to affordability. New single-family residential construction costs have increased rapidly from $250-350 just two years ago up to $500 per square foot today, depending on size and finish. Multi -family could cost more than $250 per square foot. Permit process Some interviewees question the value of some of the City's permit processes, particularly the requirement for a planned unit development (PUD) permit to achieve higher residential density or earn credit for providing affordable housing units. Zone change and property values Some interviewees cautioned the City to be aware of the potential land value increase consequences of upzones. Increasing development potential by right might result in land values being based on the potential of rental income or subsequent lot subdivision and sale. They shared cautionary tales from City of Langley and Seattle. Takings v "givings" Interviewees noted the concept of somehow monetizing increased development opportunity, similar in concept but opposite to the idea of takings, where more restrictive zoning regulations diminish land value. This would parallel the strategy of volunteer bonus density, offering increased development opportunity in exchange for a guarantee of long-term affordability for housing units. Land conservation and transfer of development rights One interviewee discussed opportunity for collaborative land management strategy, conserving the forestland within Port Townsend while increasing development options in town. A transfer of development rights (TDR) program would create a market to sell development rights in open space "sending" areas and purchase additional development intensity in the urban, "receiving" areas. Land trust model Interviewees pointed to current efforts to offer housing through the community land trust model, where land ownership remains in the name of the trust and housing units are purchased by owner -occupants. Permanent affordability Many interviewees consider permanent affordability to be critical, both for households earning less than 80 percent of median income and for those households earning between 80 and 150 percent of median Tactical Infill Housing PC review packet —January 2023 4 Attachment A income. They believe the area's housing crunch pushes purchase and rental prices beyond the means of households who, in other areas, may normally be able to participate in the housing market. City's efforts to date Interviewees were interested in learning about the City's recent efforts to streamline permit processes and reduce barriers to constructing housing in Port Townsend. Public education and involvement Interviewees confirmed the Port Townsend community will appreciate a process that's both informative and inclusive, welcoming of differing opinions and open to creative ideas. Volunteerism Interviewees frequently referenced the spirit of volunteering in Port Townsend, pointing to Habitat for Humanity and other organizations where residents and businesses actively help in the name of community. Substandard housing According to these conversations, many Port Townsend households reside in substandard housing or in housing where the rents are high for the product offered. This is mostly because of restricted choice related to limited housing inventory. Median age Interviewees mentioned Jefferson County as the "oldest" county in the State of Washington and one of the oldest counties in the country. This can translate to fewer people per household, meaning the relatively constant 10,000 city population resides in more houses now than they may have in years past. The 2016 comp plan update estimated a population of 9,454. With a 1.127% annualized growth rate over the 20 -year planning period, Port Townsend would have a population of 12,165 by 2036. Families Some interviewees discussed the need to ensure Port Townsend is welcoming to families, stating that the community's educational, institutional, and social infrastructure's collective health depends on what families bring to town. Supply increase and pent-up demand When asked if simply adding housing units would help alleviate the current dearth of housing and lack of attainable housing, interviewees generally agreed the pent-up demand is sufficient to absorb whatever units are added without creating an appreciable decline in home prices or rents. Community character Some interviewees believe the need to provide housing is both critical and immediate, potentially eclipsing the desire to retain the single-family character of Port Townsend's neighborhoods. Interviewees also mentioned that the community's housing stock is diverse and different from one lot to the next, making it difficult to define what "community character" might be and even more difficult to establish design -based guidance to regulate it. ADU cost ADUs are expensive, according to interviewees, and should not be relied upon to provide housing affordable to low- to moderate -income households. Tactical Infill Housing PC review packet —January 2023 Attachment A ADU design Current zoning requires ADU entrances to not face the street front. Some interviewees see this as an unnecessary limitation. Interviewees also noted that an "aging in place" philosophy and ground -floor ADUs make constructing ADUs on 5,000 square foot lots challenging. ADU popularity Port Townsend was an early adopter of accessory dwelling units, and the City has issued hundreds of ADU permits since they've become legal. The community has accepted these units, and their popularity continues. Short-term rentals Most interviewees directed comments at short-term rentals, mentioning their potential both to reduce the supply of housing units available on the long-term rental market and to push rents higher. The City adopted rules to limit short-term rentals, virtually prohibiting the type of rental found online through VRBO and AirBNB. Some interviewees claimed short-term rentals still occur, despite the City's active enforcement program. Some interviewees suggested additional hotel availability could reduce pressure to provide short-term rentals. Zero lot line/duplex/single-family attach ed/se mi-detached/townhome Many interviewees believe it is more difficult than it should be to construct attached housing in Port Townsend. They identified code provisions limiting "single-family attached" housing to two connected structures, making it challenging to develop townhome housing types in some zones. Interviewees also pointed to a need for clarification of definitions to more specifically describe different housing types to ensure terminology is consistent throughout the code and more closely conforms to standard use. They suggested zero -lot -line types be permitted in all residential zones. PUD process difficulty The current zoning code provides for housing type flexibility, reduced lot sizes, increased density, and affordability through the planned unit development process. But interviewees tend to believe this step adds unnecessary time and risk to the process with limited benefit. The PUD process also requires a minimum site area of 40,000 square feet, preventing its flexibility options from applying to smaller projects. In terms of submittal requirements, some commented the level of detail required is cost burdensome and questioned whether it was necessary prior to PUD approval. Lot size v density v housing type Some interviewees pointed to potential inconsistencies between the zoning ordinance's provisions related to maximum development density, minimum lot size, and housing type, claiming the minimum lot size and housing type restrictions sometimes make it impossible to attain maximum density. While this might be expected when properties are influenced by environmental constraint, it also occurs in places where the land is otherwise developable. Corner lots Some interviewees believe corner lots offer opportunities for constructing duplexes, triplexes, or fourplexes, blending higher intensity housing types into neighborhoods with little impact to existing character. Tactical Infill Housing PC review packet —January 2023 Attachment A Housing types in R -IV Some interviewees believe the City should permit detached and semi-detached housing types in the R -III and R -IV zones, provided the projects attain minimum densities. Condominium applicability Interviewees spoke of "condominium" opportunities, but there is a lack of clarity among them of what it actually means. Some attach a more general view, consistent with state law, where condominium is an ownership type, with some degree of property ownership in common. Others see condominiums as a housing type, representing an attached housing product, as in townhomes or stacked units. The zoning and land division codes' definitions section can help clarify this. Availability of capital Not all homebuilders have ready cash to fund their projects, relying on loans for capital. Interviewees confirmed this is the case in Port Townsend. Lenders approach housing and construction loans through a regulatory and economic lens, making loans which either "conform" to federal standards for packaging to the secondary market or satisfy their own needs for "portfolio" loans which are not packaged for the secondary market. "Missing middle" housing types in Port Townsend are difficult to finance through conforming loans, and portfolio loans are more difficult to obtain and are more expensive. There are too few "comparable sales" in and near Port Townsend to support valuation requirements in conforming loans. In addition, lenders noted that financing structures with more than four units requires a commercial loan or a construction loan, adding to the cost of financing. Tax credits When discussing capital availability, interviewees also suggested modernizing the City's multifamily tax exemption program to maximize incentive benefit, possibly extending the exemption term. Mixed uses Interviewees believe the existing mixed use zoning districts require too much commercial floor space as a percentage of overall project area and that the minimum parking requirements are too great. Both factors make financing difficult and impact project profitability. Lot coverage Some interviewees mentioned the potential disconnect between desired density and bulk and dimensional limitations (e.g. lot coverage and setbacks requirements), resulting in dedicating more land than necessary to open space on buildable lots. These requirements can contribute to a failure to attain maximum allowable densities on property in town. Stormwater management Interviewees pointed to local stormwater management requirements limiting lot development opportunity. Regulations and policy requiring on-site treatment of surface runoff limit the extent of impervious surfaces and require open space or other interventions to prevent runoff from impacting adjoining properties. Setbacks Interviewees questioned setback requirements, not universally understanding why the side setback standards require 15' separation between detached houses or why certain rear yard setbacks apply for accessory structures or accessory dwelling units. Tactical Infill Housing PC review packet —January 2023 7 Attachment A Tiny homes Several interviewees see tiny houses built to RV standards as an acceptable affordable housing option, and others see them as an acceptable housing option, even if affordability is not the primary objective. Others support allowing clusters of tiny homes on foundations in multi -family zones and permitting "double density" for tiny homes. Some suggested tiny homes be permitted as ADUs, even if they are constructed to RV standards and retain their mobility. SEPA thresholds Some interviewees question the City's application of SEPA thresholds for exempting certain housing types from environmental review. The State of Washington is amending its SEPA thresholds to permit additional housing intensity to be exempt, and some interviewees are very interested to see how the City responds. Tactical Infill Housing PC review packet —January 2023 Attachment A The table below lists each topic, relates it to the issues distilled during the conversations (see next section) and identifies if it corresponds to zoning, policy, or other actions. Some relate to more than one issue or approach, consistent with the multi -layered complexity of providing more affordable housing. The "Other" column can relate to factors generally beyond the City's control, such as regional market influences or the actions of others. Topic Issue Zoning Policy Other Employee attraction 1 ✓ ✓ Employee retention 1 ✓ ✓ Employers as housing partners 1,7 ✓ ✓ Insufficient inventory 3,4 ✓ ✓ Consumptive development pattern 4 ✓ ✓ ✓ Infrastructure condition 4 ✓ ✓ Infrastructure extension 4 ✓ ✓ Land value increases 4,6 ✓ ✓ Construction and labor cost increases 3,4 ✓ Permit process 9 ✓ Zone change and property values 6 ✓ ✓ ✓ Takings v "givings" 8,9 ✓ Land conservation and transfer of development rights 2, 4, 7 ✓ ✓ ✓ Land trust model 1,7 ✓ ✓ ✓ Permanent affordability 1, 3, 7 ✓ ✓ City's efforts to date 8,9 ✓ ✓ Public education and involvement 7 ✓ ✓ Volunteerism 7 ✓ Substandard housing 1,3 ✓ ✓ ✓ Median age 1,6 ✓ Families 1 ✓ Tactical Infill Housing PC review packet —January 2023 Attachment A Topic Issue Zoning Policy Other Supply increase and pent-up demand 3,4 ✓ Community character 6,9 ✓ ✓ ✓ ADU cost 1, 3, 7 ✓ ✓ ADU design 8,9 ✓ ADU popularity 1,4 ✓ Short-term rentals 1,9 ✓ ✓ Zero lot line/duplex/single-family attach ed/semi-detached/townhome 9 ✓ Corner lots 1,9 ✓ Housing types in R -IV 1,9 ✓ ✓ PUD process difficulty 1,9 ✓ Lot size v density v housing type 8,9 ✓ ✓ Condominium applicability 9 ✓ Availability of capital 3, 5, 7 ✓ Tax credits 3,7 ✓ ✓ Mixed uses 1, 2, 9 ✓ ✓ ✓ Lot coverage 9 ✓ Stormwater management 2,9 ✓ ✓ Setbacks 9 ✓ Tiny homes 1,9 ✓ ✓ SEPA thresholds 2, 6, 9 ✓ Tactical Infill Housing PC review packet —January 2023 10 Attachment A These issues derive from the orientation interviews, PC open mic session, and a review of the City's recent work to address housing challenges. They are intended to target specific zoning initiatives, ensuring whatever changes are proposed in zoning are appropriate to the community's needs and respond to community housing priorities. 1. Workforce housing Economic development and community prosperity is hindered by the lack of suitable housing for employees — at any income level. 2. Ecological footprint The lack of local, attainable housing leads to increased commuting distances, placing increased burden on highways and working in conflict with local policies to moderate environmental impact. 3. Shelter poverty Residents in Port Townsend may be paying too much for housing and transportation, causing them to sacrifice elsewhere, limiting local economic activity and reducing local quality of life. 4. Land availability Land is scarce for residential development because of land use designations, environmental constraints, inappropriate parcel sizes, infrastructure availability, or retention from the market. 5. Lack of Comparable Sales Financing new attached single-family, multi -family and mixed-use is challenging. Conventional loans require comparable sales ideally within one mile and sold within the last six months. 6. Unintended consequences Quick fixes — like residential upzones — may exacerbate other housing challenges by driving up land prices, disrupting neighborhood continuity, or adding stress to local fiscal policy. 7. Reliance on partners The City cannot act unilaterally to increase housing supply or make housing more affordable, compelling it to act strategically through policy and investment. 8. Zoning consistency City land use policy and permit processes may not be wholly effective in permitting creative housing solutions or may offer conflicting or vague direction, contributing to homebuilder reluctance to offer new ideas. 9. Zoning clarity Zoning can make it easy to do the right thing by clarifying standards and definitions reducing risk for homebuilders and confirming public expectations of what the code's regulations will produce. Tactical Infill Housing PC review packet —January 2023 11 Attachment A Issue Zoning Policy Other 1. Workforce housing ✓ ✓ 2. Ecological footprint ✓ ✓ 3. Shelter poverty ✓ ✓ 4. Land availability ✓ ✓ 5. Lack of comparable sales ✓ 6. Unintended consequences ✓ ✓ ✓ 7. Reliance on partners ✓ ✓ 8. Zoning consistency ✓ 9. Zoning clarity ✓ Tactical Infill Housing PC review packet —January 2023 12 Attachment A Priority Directives These priority directives relate both to policy -level initiatives and to zoning amendments, linking the topics and issues to direction for Port Townsend to consider. While this project focuses on amendments to the development regulations to facilitate providing "missing middle" housing, it also helps reveal other policy choices for the City to consider as it updates its comprehensive plan and develops department investment strategies and work programs. Policy directives set the stage for approaching the zoning text amendments, clarifying the community's overall housing priorities. These are the essential ingredients to any policy strategy or zoning tactic, touchstones to guide our approach to the initiatives we propose. Understanding our work now is limited to the zoning tasks, the list below also includes other items the City may wish to consider when it is time to look to policy updates, deliberating other tools to complement and enhance what the zoning work generates. A. Increase housing supply Land availability analysis Permitted housing types assessment Zoning density analysis Mixed-use land use mix analysis Infrastructure analysis and investment Land efficiency strategies and fiscal policy B. Ensure continued affordability Community and trust ownership facilitation Cohousing facilitation/lender coordination Bonus density/affordability linkage Affordable housing fund C. House local workforce locally Employer cooperative Economic development initiatives D. Nurture partnerships Housing agency/advocacy coordination Property acquisition Lenders portfolio loan facilitation TDR program with Land Trust Tactical Infill Housing PC review packet —January 2023 13 Attachment A E. Facilitate permitting for attainable housing Process management and evaluation F. Facilitate access to capital for "missing middle" housing types Municipal affordable housing revolving fund Down payment assistance program Community Reinvestment Act outreach G. Clarify definitions Single-family attached Duplex Townhouse Condominium Tiny home Manufactured home Tactical Infill Housing PC review packet —January 2023 14 Attachment A Zoning ctions Airray While many of the issues and directives relate to policy, budgeting, and municipal strategy, others can be at least partially addressed through zoning. Of those, this list targets amendments to the development regulations which first address making "missing middle" housing more available for households in the 80% to 150% area median income category. These suggested text amendments may also have the additional impact of making housing more affordable overall, an important consideration when addressing the community's housing issues but not the first priority for this particular project. But we cannot tackle all of the possible zoning text amendments by April 1, 2023. This table facilitates prioritizing our work program, describing the types of zoning actions we believe may address the issues described here, the type of work we would do for each, and an estimate of the level of effort each type of action may take. We have scored these actions based on our ability to achieve work represented by a score of 100. Some actions require more time and energy, while others may be a relatively simple act. This table allows the Planning Commission to assemble an assignment for us totaling 100. Electing to pursue all 24 actions, for example, would commit us to 223 points. Some items will need to fall off this list and must be taken up later. As we work through the list the Commission prioritizes, we may discover various barriers to completing one item or another. As you consider the options, it will also be helpful to identify up to three "back-up" priorities if items have to be deferred. Type of action Description Work effort Issue Points Review the definitions for various housing Single-family Amending definitions to clarify types to ensure applicability and consistency attached housing types with objectives to facilitate "missing middle" 1, 8, 9 8 types. (17.08 Definitions) Study the various permitted use tables and Modifying permitted use tables ensure there's more flexibility in providing to make more housing types varied housing types in most residential zones Permitted available in residential, and, where appropriate, in commercial or 1, 8, 9 6 housing uses commercial, and mixed-use mixed zones, consistent with comp plan density policy. (17.16.020 Residential Zoning zones Districts — Permitted, Conditional and Prohibited Uses) Review lot size and plat requirements to Re-evaluating minimum lot size make sure they permit intensities consistent Lot size requirements; consider with comprehensive plan density ranges, minimums maximum density potentially through condominium provisions. 1, 8, 9 8 (17.16.030 Residential Zoning Districts — Bulk, requirements Dimensional, and Density Requirements, 17.32.030 PUD lot area, and Title 18.Plat) Permitting more than one ADU Revisit ADU provisions to modify ADU area Accessory on a single-family lot while limits, encourage "carriage house" (above dwelling units achieving consistency with the garage) style or explicitly permit multiple 1, 8, 9 10 comprehensive plan units on a single lot Tactical Infill Housing PC review packet —January 2023 15 Attachment A Type of action Description Work effort Issue Points Changing residential intensity Consider options to expand residential unit standard from units per acre to construction by converting to height and bulk Mixed use FAR a floor -area ratio, permitting formulas rather than just residential density 1, 8, 9 12 construction of a higher where permitted by comp plan (as in mixed number of smaller units in use subarea plan Table 17.31.080) mixed-use structures Increasing allowable building Review height limits and likely building types Building height height in higher -intensity to ensure standard reflects constructability limits zoning districts to permit an and financial feasibility (other than in 17.28 11819 10 additional floor Height Overlay District and SMP) Permitting higher density by Examine PUD approach and find ways to Density bonus right providing certain simplify density bonus process, possibly also 1, 7, 8, 14 minimum design criteria are by modifying use and intensity standards by g met right while still consistent with comp plan Adopting new SEPA exemption Propose new thresholds consistent with new SEPA thresholds thresholds to facilitate Ecology rules for housing in "urban" areas 1, 8, 9 7 construction of infill housing Condominium Clarifying "condominium" as Evaluating subdivisions and definitions codes definition an ownership type and nota to ensure availability of condo option 1, 8, 9 5 building type Auditing zoning to ensure no Reviewing subdivision/zoning codes and Land trust explicit or implicit limitations removing potential roadblocks to land trust 1, 2, 7, 6 facilitation on land trust ownership in 8,9 residential zones instruments Updating standards for cottage housing and parking to simplify permitting and increase opportunity to develop this type, potentially Cottage housing Simplifying design standards through "unit lot" subdivisions, 1, 8, 9 16 condominiums, or other avenues. (17.34 Cottage Housing Development Design Standards, administrative procedures, residential zones, use tables by zone) Parking for Reviewing limitations on curb Amending parking access and location attached SF cut requirements and backing standards to be consistent with likely resident 1, 8, 9 7 on to the right-of-way demand and impacts to adjoining areas Considering further reductions Amending parking requirements to further in parking requirements, reduce off-street parking in certain cases Parking exploring different standards in where on -street parking may cause minimal 1, 8, 9 7 different zones or neighborhoods impact Facilitating employer-provided Reviewing use tables by zone, special use Temporary housing for temporary standards, and administrative procedures, 1, 7, 8, housing employee occupancy, putting in place new guidance for housing in 9 14 potentially on commercial or traditionally non-residential areas industrially -zoned property Tactical Infill Housing PC review packet —January 2023 16 Attachment A Type of action Description Work effort Issue Points Permitting mechanical Minor building equipment to pierce height Reviewing administrative procedures to height variance/ limit and providing for clarify when administrative relief can be 1, 8, 9 8 exemptions administrative relief in certain applied for residential purposes circumstances Lot line Removing Type II process for Simplifying lot line adjustment process to adjustments reorientation eliminate need for public notice in most cases 1, 8, 9 5 Redesignating frontage Permitting additional flexibility in setbacks to setbacks in the R -III and make properties more easily developed, while Setbacks evaluating front, side, and rear also retaining "daylight plane" requirements 1, 8, 9 10 setback requirements in other and not necessarily encouraging larger single - residential zones family homes Bonding Requiring adequate Reviewing subdivision bond requirements to requirements infrastructure improvement ensure effectiveness, surety, and flexibility 1,8,9 9 Duplex, triplex, Clarifying permitability by Reviewing definitions for various housing fourplex zoning district and ensuring types and updating permitted use tables to 1, 8, 9 7 achievable design standards allow opportunity for varied housing types Ensuring this is a permitted Reviewing zoning permitted use tables and Courtyard type and consistent with ensuring this type is allowable by right, 1, 8, 9 12 apartments zoning district intensities and consistent with district density ranges and design standards comp plan policy Ensuring compatibility with Reviewing zoning permitted use tables and Micro housing definitions and minimum unit ensuring this type is allowable by right, 1, 8, 9 12 size requirements, anticipating consistent with district density ranges and application of FAR standards comp plan policy Providing for density bonuses Inserting density bonus opportunities more Permanent on the condition bonus units broadly by PUD or by right and attaching 1, 8, 12 affordability are "permanently" affordable affordability requirements 9 9 Providing clarity and Reviewing zoning and subdivision codes to Subdivision S opportunity for binding site permit more land division variety, potentially 1, 8, 9 12 options plans, "unit lot" subdivisions, or other instruments incorporating new provisions Confirming materials required Reviewing application requirements in Application for applications are consistent administrative procedures and subdivision 1 8 9 8 requirements with the degree of review and codes to ensure the City requires only what is breadth of permit necessary to consider permit scope Tiny home/ Permitting these development Reviewing development type options, best manufactured types under certain practices to target potential changes to 1, 3, 6, home park circumstances and with design permitted use tables, design guidelines, and 9 15 communities standards special regulations Tactical Infill Housing PC review packet —January 2023 17 Attachment B To: Council Culture and Society Committee From: Lois Stanford, Planning Commission Chair Date: August 30, 2022 Subject: Draft Diversity, Equity, and Inclusion Statement This memo responds to your request for input on the draft Diversity, Equity, and Inclusion statement for the City of Port Townsend. We understand you are specifically looking for how the Planning Commission might use this statement to inform their work. And, if there is anything additional that should be added to the statement. We appreciate the opportunity to provide our perspective. Item 2 is most germane to the work of the Planning Commissioners • We commit to seeking out and eliminating institutional and unconscious bias in our municipal code, especially in our zoning code, and City plans while supporting state and federal non-discrimination laws regarding daily life in our community. During our review of proposed plan/code amendments, we will actively seek information and participation for from a diverse community and those most impacted. We will seek to educate ourselves on key topics such as: housing equity, the history of exclusionary zoning, climate justice. We have one suggested addition to the statement; we urge you to consider addressing public participation programs (PPPs). PPPs are developed to inform and engage the public in larger legislative actions such as Comprehensive Plan GMA Updates and Shoreline Master Program Updates. It is incumbent upon us to ensure PPPs are designed to engage all sectors of our community. in the end, planning is not about the built environment; it's about the people. Respectfully submitted on behalf of the Port Townsend Planning Commission, . .. . ......... . ..... . . ..... 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J, Illy M w Eq P Attachment D Port .Townsend Wffl ZOlnhng Approach The Planning Commission identified several specific zoning actions at its January 13 workshop. The actions meet at least one of four objectives, empowering local residents to add to the housing supply, streamlining the permitting processes to make it easy to do the "right" thing, facilitating the inclusion of multiple types of housing to suit the needs of a variety of households, and generally increasing the supply of housing overall to satisfy pent-up demand and accommodate a wider variety of income levels. The table on page 2 identifies each action the Planning Commission prioritized and which objectives it satisfies. The "work to be done" column outlines next steps and supporting Comprehensive Plan goals. Finally, the "Amendment pack" column identifies the packets which follow this memo. Packets include analysis and amendments in legislative format. The strikethrough/underline display makes it easier to see the extent to which existing code is proposed to change. Many of the proposed changes will have accompanying notes to describe the change, why it is proposed, and how it relates to the project's overall objectives. Several action items reference multiple packets. This reflects the multiple strategies needed to implement one action. Conversely, a packet may be tied to more than one action item, reflecting the overlap. Code writing is an art — layering multiple sections to shape a desired outcome. Some of the changes will be relatively minor, resulting in the insertion ordeletion of words, phrases, or sentences. Others, however, may suggest either major reworking of the existing code or the creation of entirely new sections. All of them will work in concert to increase the supply of missing middle housing in town, navigating within the existing code to achieve those types of changes suggested by RCuu 36.70A.600. The amendment packets include changes to: • Permit more accessory dwelling units (Packet A) • Streamline review of cottage housing (Packet B) • Permit "tiny homes" in a variety of circumstances (Packet C) • Provide for innovative ways for development flexibility to achieve comprehensive plan densities, including "unit lot" subdivisions (Packet D) • Further reduce mandatory off-street parking requirements (Packet E) • Permit temporary residential occupancy in traditionally non-residential areas (Packet F), and • Clarify condominium, cooperative, or other collective ownership forms (Packet G) • Shift residential intensity calculations in mixed use zones to FAR from units per acre (Packet H) • Tackle various other minor provisions consistent with the infill project (Packet 1). Port Townsend Tactical Infill Zoning Approach Attachment D Port Townsend Tactical Infill Zoning Approach ao c 3 �C' G T Y U C d !0CL > CL N CIL C L MN W O Q � Action item Work to be done,L t ,i c a Review the definitions for various housing types to 1. Single-family attached ensure applicability and consistency with objectives to facilitate "missing middle" types. (17.08 Definitions) Amending definitions to clarify (RCW Nexus: 36.70a.600(1)(d)) (Comp Plan Policy: Y Y Y I housing types Housing Element Goal 4, Policy 2.2, 2.7,Policy 4.1, 4.1.1, 4.2.3) Study the various permitted use tables and ensure there's more flexibility in providing varied housing 2. Permitted housing uses types in most residential zones and, where appropriate, Modifying permitted use tables to in commercial or mixed zones, consistent with comp A, B, C, make more housing types available plan density policy. (17.16.020 Residential Zoning Y Y y D in residential, commercial, and Districts— Permitted, Conditional and Prohibited Uses) mixed-use zones (RCW Nexus: 36.70a.600(1)(d), (v)) (Comp Plan Policy: Housing Element Goal 4 Policy 1.2,2.7, Policy 4.1i 4.1.1, 4.2.3) Review lot size and plat"rejuirements.to make"sure they permit intensities consistent with comprehensive 3. Lot size minimums plan density ranges, potentially through, condominium Reevaluating minimum lot size provisions. (17.16.030 Residential Zoning Districts — Y Y Y B,D,I requirements considering maximum Bulk, Dimensional, and Density Requirements, density requirements 17.32.030 PUD lot area, and Title 18. Plat) (RCW Nexus: 36.70a.600(1)(d), (m), (v)) (Comp Plan Housing Policy 2.2, 2.7, 4.2, 4.2.2, 4.5) 4. Accessory dwelling units Revisit ADU and parking provisions to modify ADU area limits, encourage "carriage house" (above garage) style Permitting more than one ADU on a units, explicitly permit multiple units on a single lot, and single-family lot while achieving ensure parking requirements are appropriate for Y Y Y Y A,C,E consistency with the conditions (RCW nexus: 36.70a.600(n), (q)) (Comp Plan: comprehensive plan Housing Element Policy 4.1.3, 4.2.3) Update standards for cottage housing and parking to 11. Cottage housing simplify permitting and increase opportunity to develop Simplifying design standards and this type, potentially through "unit lot" subdivisions, B D condominiums, or other avenues ((17.34 Cottage permitting processes Housing Development Design Standards, administrative procedures, residential zones, use tables by zone) 14. Temporary housing Reviewing use tables by zone, special use standards, Facilitating employer-provided and administrative procedures, putting in place new housing for temporary employee guidance for housing in traditionally non-residential Y Y Y C,F areas (RCW Nexus: 36.70a.600(v), Comp Plan Housing occupancy, potentially on Policy: 2.2, 4.2, 4.2.3, 6, 6.1) Port Townsend Tactical Infill Zoning Approach Attachment D commercial or industrially -zoned property 17. Setbacks Permitting additional flexibility in setbacks to make Redesignating frontage setbacks in properties more easily developed, while also retaining the R -III and evaluating front, side, "daylight plane" requirements and not necessarily Y Y y A,D,I and rear setback requirements in encouraging larger single-family homes (RCW Nexus: other residential zones 36.70a.600 (u)) Comp Plan Housing Element 4.2, 4.2.3) Reviewing definitions for various housing types and 19. Duplex, triplex, fourplex updating permitted use tables to allow opportunity for Clarifying permitability by zoning varied housing types and conversion of existing single district and ensuring achievable family homes (RCW Nexus: 36.70a.600(1)(d), (v)) (Comp Y Y Y A,D,I design standards Plan Policy: Housing Element Goal 4, Policy 2.2,2.7, Policy 4.1, 4.1.1, 4.2.3) 24. Application requirements Reviewing application requirements in administrative Confirming materials required for procedures and subdivision codes to ensure the City applications are consistent with the requires only what is necessary to consider permit Y Y Y B,D,F,I scope (RCW Nexus: 36.70a.600(1)(i), (v)) (Comp Plan degree of review and breadth of Policy: Housing Element Goal 4, Policy 2.2,2.7, Policy permit 4.1, 4.2.3) 25. Tiny Home/manufactured Reviewing development type options, best practices to hoome park communities targetpotential changes td permitted use tables, design Permitting these development guidelines, and special ,regulations to permit tiny homes Y y y C types under certain circumstances (Comp Plan Policy: Housing Element Goal 4, Policy andwith design standards 2.2,2.7, Policy 4.1, 4.1.1, 4.2) 5. Mixed use FAR Consider options to expand residential unit Changing residential intensity construction by converting to height and bulk formulas standard from units per acre to FAR, rather than just residential where permitted by the H permitting construction of more but comprehensive plan (as in mixed use subarea plan smaller units in mixed-use Table 17.31.080). structures 10. Land trust facilitation Reviewing subdivision/zoning codes and removing Auditing zoning to ensure no potential roadblocks to land trust instruments (RCW explicit or implicit limitations on p p Nexus: 36.70a.600(1)(e), (u)) (Comp Plan: Housing Y Y Y B,C,D,I land trust ownership in residential Element 8.1) zones 18. Bonding requirements Requiring adequate infrastructure Reviewing subdivision bond requirements to ensure effectiveness, surety, and flexibility improvement Port Townsend Tactical Infill Zoning Approach Attachment D Packet A Accessory dwelling units Port Townsend's existing zoning permits accessory dwelling units, and many property owners have taken advantage of these provisions to construct them. Many have added to the number of rental units in town, but others remain available for other uses, such as for guest houses, studios, or other activities. These proposed amendments to the code are intended to increase the number of ADUs by allowing property owners in single-family zones to construct more than what the code now permits. This is achieved by: • Providing a clear reference to maximum comprehensive plan density while potentially permitting two ADUs per lot (17.16.020) • Permitting ADUs as accessory uses for non -conforming single-family, detached development (17.16.020) • Allows additional exterior entrances oriented beyond side and rear lot lines (17.16.020) • Revisiting parking standards to ensure appropriateness with two ADUs • Revisiting setback standards 17.16.020 Permitted, conditional and prohibited uses — Accessory dwelling units. Table 17;16.020 identifies land uses in the (P), subject to a conditional use permit (C), notwithstanding the fact that a use may bE required for certain projects: For example, applicants must procure a Type I permit in Residential Development Standards. Uses I deemed,ta be contrary to the interests of 1 siderttial zoning districts that are permitted outright prohibited (X), or not applicable (N/A). However, )ermitted outright, additional permits may be tultifamily residential development project ccordance with Chapter 17.36 PTMC, Multifamily A specifically, identified within Table 17.16.020 are e public health, safety and welfare of the citizens of Port Townsend and shall be prohibited. B. Requirements for the uses identified in Table 17.16.020 which are contained within other provisions of this title are referenced under the heading "applicable regulations/notes," although this should not be construed as a comprehensive listing of all provisions of this title which may apply to any given use. Specifically, the provisions of Chapter 17.72 PTMC, Off - Street Parking and Loading, and Chapter 17.76 PTMC, Signs, shall apply to all uses, even if not noted in Table 17.16.020. C. Accessory Dwelling Units — Limitations on Use. One Two accessory dwelling units (ADU) may be established only as an accessory use to a single-family, detached residence (and specifically not including a duplex, triplex or fourplex), provided the resuWng den.s'it is consistent with the coir irel��er�sii�re Main aind the following conditions are continuously met: 1. A certificate of occupancy pursuant to the currently adopted city construction codes shall be obtained from the building official and posted within the ADU. The code inspection and compliance required to obtain a certificate of occupancy in an existing building shall be restricted to the portion of the building to be occupied by an ADU and shall apply only to new construction rather than existing components, except that any high hazards (i.e., smoke detectors, fire exits, stairways, LP gas appliances and fire separation) shall be corrected. Where additional fire separation is unduly burdensome, the building official may authorize a fire alarm system in lieu of required fire separation. 2. Neither the main nor accessory dwelling units shall be used as a short term rental, except as provided for in PTMC 17.57.020(B)(2). Port Townsend Tactical Infill Zoning Approach 4 Attachment D 3. ADUs established in an outbuilding shall not exceed 800 square feet in floor area and ADUs established within or attached to the primary residence shall not exceed 1,000 square feet, and under no circumstance shall the total lot coverage of the primary residence along with the ADU exceed the standard allowed in the underlying zoning district. 4. In order to preserve the outward appearance of single-family neighborhoods, the front of the house shall have only one exterior entrance facing the front ar°oo rt fine. Other entrances ma face side or rear oro Der$ l nQ' z 5. Arw-ADUs may be established in a residence or outbuilding that is legal, nonconforming with respect to required setbacks if entrances are no closer than five feet to neighboring property lines, and if each side window that is closer than five feet to a side property line and that is also closer than 20 feet to either the front or rear property line is permanently glazed with translucent material; provided, that the director may permit an entrance as close as three feet to a neighboring property line upon a finding that no feasible alternative exists. 6. ADUs may be established as an accessory use to an existing single-family, detached residence that is a legal non -conforming use. 7. ADUs may be a duplex. (Insert updated setback table.) Port Townsend Tactical Infill Zoning Approach Attachment D Packet B —Cottage hOlvusin Cottage housing is a conditionally permitted use in the R-1 district and a permitted use in the R -II and R - III districts, consisting of a grouping of individual small detached housing units with a common open area, common parking, and common service facilities. The type already has a few developed examples in Port Townsend. The intent of these changes is to make it easier to develop cottage housing projects, ensuring their design is generally compatible with their surroundings and their densities conform to the comprehensive plan's policy. The revisions make cottage housing easier to develop by: • Reducing the minimum lot size in the R-1 zone to 10,000 sf and adjusting intensity (17.34.030) • Relaxing cottage housing design requirements but reinforces their importance • Reviewing the permitted use chart to clarify how cottage housing is permitted (17.16.020) • Making review a Type IA administrative decision by the PCD Director rather than a Type III, Hearing Examiner decision (17.16.020, 17.34.010, 17.46.030 and 20.01.040) Table 17.16.020: Residential Zoning Districts — Permitted, Conditional and Prohibited Uses (excerpt) Key to table: P = Permitted outright; C = Subject to a conditional use permit; X = Prohibited; N/A = Not applicable DISTRICT R -I R -II R -III R -IV APPLICABLE REGULATIONS/NOTES Single-family dwellings P P P P' PTMC 17.16.030, Bulk, dimensional and density (including duplexes, triplexes, requirements. Single-family dwellings in the fWV zone and fourplexes which meet are limited to fourplexes. the base density requirements A duplex structure may be constructed along a zero lot of the applicable district) line provided the structure complies with building code fire separation requirements. Cottage housing Op P P X Ch. 17.34 PTMC, Cottage Housing Development Design developments Standards; Ch. 17.46 PTMC, Commercial, Multifamily, Cottage Housing Developments, and Mixed Use Architectural and Site Design Review Processes; Ch. 18.20 PTMC, Binding Site Plans; Ch. 19.06 PTMC, Article III — Standards for Tree Conservation. Transient use of single- family X X X X See PTMC 17.08.060, "Transient accommodation." residential uses (including duplexes, triplexes, and fourplexes and cottage housing) Port Townsend Tactical Infill Zoning Approach Attachment D 17.34.010 Purpose and intent. The general purposes of the cottage housing development design standards are as follows: A. A cottage housing development is an alternative type of detached housing providing small residences for households of typically one to two individuals. Cottage housing is provided as part of the city's overall housing strategy which intends to encourage affordability, innovation and variety in housing design and site development while ensuring compatibility with existing neighborhoods, and to promote a variety of housing choices to meet the needs of a population diverse in age, income, household composition and individual needs. B. The cottage housing development design standards contained in this section are intended to create a small community of cottages oriented around open space that is pedestrian -oriented and minimizes the visibility of off-street parking. These design standards are intended to ensure that cottage housing developments include pedestrian amenities and take advantage of existing natural features on the site including topography and vegetation. The cottage housing development design standards are intended to maintain traditional cottage amenities and proportions and ensure that cottage housing developments contribute to the overall community character. Because there may be alternative designs that meet the objectives of the design standards, Chapter 17.46 PTMC provides an alternative design review process to consider other acceptable ways to accomplish the objectives of this section. C. Cottage housing may allow higher residential density than is normally allowed in the underlying zone district, This increased density is possible through the use of smaller than average )tome sizes, clustered parking, and site design standards. D.Cottage housing developments -prx4pe se44"n tlfe 7 e --are subject to special density standards- s~rd These special standards recognize that Om .. 1, r4 1 I4y to-havethis develloament type must address stormwater related constraints io close proximity to environmentally sensitive areas, and/or lack full urban infrastructure at the tme.of development. E. All cottage housing developments are subject to current city stormwater standards and shall incorporate stormwater low impact development techniques whenever possible. (Ord. 2864§ 3, 2004). (Insert design standards relaxation.) 17.34.030 Density, number of cottage housing units and minimum lot area. A. In cottage housing developments the permitted densities shall be as follows: Port Townsend Tactical Infill Zoning Approach 7 R-1 Low Density R-11 Medium Density R -III Medium Density Zoning District Residential Single -Family Multifamily Maximum Cottage Density 1 cottage dwelling unit 1 cottage dwelling 1 cottage dwelling per 5,000 sf unit per 2,500 sf unit per 2,500 sf Minimum number of cottages 24 4 4 subject to zoning base density requirements Maximum number of cottages per 8 12 14 cottage housing development Port Townsend Tactical Infill Zoning Approach 7 Attachment D Minimum lot size (aocoku..rm. [es -4 120,000 sf 10,000 sf 10,000 sf ooU Pmage 17.46.030 Applicability and permit review process — Standards. Unless otherwise subject to the historic design review process in Chapter 17.30 PTMC, Historic Preservation Code, all projects in the C -I, C -II, C-II(H), C-I/MU, and C-II/MU zones, cottage housing developments, as well as multifamily projects in any zone regardless of their location or form of ownership shall be subject to the design review process contained within this chapter and processed in accordance with the permit review process in Chapter 20.01 PTMC as set forth below: A. Type IA—Administrative Review Pursuant to PTMC 17.46.060. Commercial and Mixed Use Projects. New buildings, canopies or other structures that exceed 1,000 square feet and are less than 4,000 square feet in size or no more than two stories above grade; or Buildings, canopies, or other structures, the expansions of which either: i. Exceed 1,000 square feet in size and are less than 4,000 square feet; or ii. Comprise a ground floor expansion exceeding 50 percent of an existing building's ground floor square footage; or Substantial alterations of existing structs square feet and is less than 4,000 squar4 Alterations to exterior facades of buildir exterior electrical or mechanical s, excepting that'ordiha'ry (i.e., none granted a waiver of design review from the review process, must be requirements, including architectL ultifamily Projects. where the reel; or gs (including but such'as pole -mo ncy)'maintenano nducted in accordant I design standards of re limited to new or a ?d or other light fix - d repair activities n ren that qualifying 1 ith applicable code pter 17.44 PTMC. waiver a. Including construction of apartments, townhouses, row houses or other forms of multifamily housing containing five to nine units; or b. Alterations to the exterior facades of buildings (including but not limited to new or altered exterior electrical or mechanical systems such as pole -mounted or other light fixtures) excepting that ordinary (i.e., nonemergency) maintenance and repair activities may be granted a waiver of design review by the director. All work, even that qualifying for a waiver from the review process, must be conducted in accordance with applicable code requirements, including architectural design standards of Chapter 17.36 PTMC. 3. Cottage Housing Developments. All new cottdevelonirumt:s and alterations to the exterior facades of buildings which are visible from adjacent properties or rights-of-way (including but not limited to new or altered exterior electrical or mechanical systems such as pole -mounted or other light fixtures) excepting that ordinary (i.e., nonemergency) maintenance and repair activities may be granted a waiver of design review by the director. All work, even that qualifying for a waiver from the review process, must be conducted in accordance with applicable code requirements, including architectural design standards of Chapter 17.34 PTMC. B. Type II —Administrative Review with an Advisory Committee Pursuant to PTMC 17.46.070. 1. All projects which include requests for departure pursuant to PTMC 17.46.080. 2. All projects in all applicable districts exceeding the following thresholds are further subject to administrative review with the design review advisory committee: a. Any new building canopy or other structure with aground floor exceeding 4,000 square feet in size; or Port Townsend Tactical Infill Zoning Approach Attachment D b. Any new building with more than two stories above grade, or any expansion creating more than two stories above grade; or c. Any building containing 10 or more dwelling units; or d. Substantial alterations of existing structures, where the existing structure exceeds 5,000 square feet of ground floor area or otherwise exceeds categorical exemption limits of SEPA (Chapter 19.05 PTMA or e. Any project where the PCDD director determines that the proposed design has generated strong public interest, or is proposed for a sensitive or highly visible site; the director may require that review with the advisory committee is warranted. "P&.rasa Irk , a .. ..... Ur l. .... .p......OR44gg.... c::e �:o,.af .. .p. �... ... ......�. .. "..Q�-:�.:. .p ...a:.• e�W"%.i"'ot�� �4"q� ...., .: '. .... .Fe.c... _ ,. ,.. Standards to Be Applied. Applications for design review shall be subject to the site design and architectural design standards of this title as follows: Commercial and mixed use projects Chapter 17.44 PTMC Commercial or mixed use projects with fiveor more Subject to a combined single review for compliance with residential units Chapters 17.36 and 17.44 PTMC. No additional fee will be Type V charged above that required for review Multifamily development in any zoning district Chapter 17.36 PTMC Cottage housing development Chapter 17.34PTMC, Cottage Mousing Development Site-specific Design' Standa rds Note: For development that is subject to historic design reVfew process see Chapter 17.30PTMC, Historic Preservation Code. 20.01.040 Project permit application framework (excerpt). These tables provide guidance to permit applications. In the event of a conflict between the table and a development code, the development code shall apply. Table 1— Permits/Decisions Type Il Type I -A Type II Type III Type IV Type V Permitted uses not Binding site plans, Short subdivisions Preliminary full Final plat53 Site-specific requiring notice of LgLtagp11, ,a,a;;j,n„g subdivisions; plat rezones consistent application (e.g., rdevolo,rrrh;s, vacations, including with the Port building permits, short subdivisions that Townsend etc.) involve right-of-way Comprehensive vacations or plat Plan, including alterations rezones/alternative parcel -specific 444-�'i4444 atta¢-e zones considered in 4GU4 .., . •:.d.a{ i:. �.e� t conjunction with ..... `. .., the annual comprehensive plan amendment process Port Townsend Tactical Infill Zoning Approach Attachment D Port Townsend Tactical Infill Zoning Approach 10 Attachment D Packet C— Tiny homes The Planning Commission prioritized proposing new standards to make tiny homes more easily permitted in Port Townsend, allowing them as ADUs and within tiny home communities. The existing code has relatively little in place now to permit or regulate tiny homes, so these revisions propose a new zoning section to address them. Among other things, the new section: • Permits tiny homes by right as an ADU, as long as the wheels are removed and the unit is permanently attached to the site. • Permits tiny homes to be occupied in tiny -home communities and to retain their wheels for future movement to another site. 17.08.060 R_through V "Tiny home" means ... "Tiny home on wheels" means ... New Chapter 17.58 Tiny Homes 17.58.010 Purpose and Intent The general, purpose of this section on tiny homes is to: A. Permit tiny homes as accessory dwelling units under certain conditions in all residential districts where detached accessory dwellingunits are allowed, provided the tiny homes are permanently affixed to the site. B. Permit tiny homes and tiny homes on wheels in designated communities subject to certain standards in those districts where development of this type is generally compatible with surrounding'uses. 17.58.020 Accessory Dwelling Units Tiny homes permanently attached to the site are permitted as accessory dwelling units in R -I, R -II, and R -III districts and subject to the provisions of Chapter 17.16.020. 17.58.020 Tiny Home Communities (Incorporate standards for THOW) Port Townsend Tactical Infill Zoning Approach 11 Attachment D Packet D — Maximum comprehensive plan densities and unit lot subdivisions The comprehensive plan assigns density ranges to each land use category, and each zoning district mirrors the comprehensive plan land use map. This direct correspondence between comprehensive plan land use designation and zoning district leads to the assignment of minimum lot size requirements in zoning. The minimum lot size requirements, however, may not always permit development in residential zones to attain the maximum permitted density noted in the comprehensive plan. Nearby Port Angeles adopted a unit lot subdivision ordinance, allowing for the creation of smaller -than - normal residential parcels within the scope of a larger development project. This creates a subdivision type similar to binding site plans, except it is designed specifically for residential purposes. This approach can create postage -stamp lots surrounded by common area, bound together by a set of operating conditions and development requirements to ensure continued access, drainage management, property maintenance, and other elements normally regulated in subdivisions. The proposed revisions here make it easier to attain maximum permitted residential densities in the various residential districts. They do this by: • Eliminating minimum lot size requirements in favor of overall density, proposing a new chapter on unit lot subdivisions to create small parcels for townhomes and cottage housing development while ensuring continued management of critical design elements • Clarifying the diversity of housing types permitted in each zoning district • Allowing,increased design flexibility without requiring planned unit development (PUD) approva Section 17.08.060 R through V ' Subdivision, Unit Lot is an alternative process to conventional subdivision processes by which the location of a building on a lot can be placed with one or more of'the building's sides resting directly on a lot line, allowing for the creation of fee simple lots for townhome and cottage housing developments. New Chapter 18.22 Unit Lot Subdivisions 18.22.010 Purpose. This chapter is established to provide an alternative to the traditional method of land division for creating sellable lots for townhouse and cottage housing developments. The unit lot subdivision (ULS) process provides opportunities for fee -simple ownership of land as an alternative to condominium ownership. Unit lot subdivisions allow development on individual unit lots to avoid complying with typical dimensional standards if the parent lot conforms to all such development standards. 18.22.020 Application. To be considered complete, the application for a unit lot subdivision shall include the following: A. The application for approval of a unit lot subdivision shall be submitted to PCDD on forms to be provided by the department along with the appropriate fees established by Chapter 20.09 ' 0. 9' PTMC; B. A completed land use permit application form, including all materials required pursuant to PTMC ;0.,0„i;-.,_100, and including any application submittal requirements under Chapter j.9.,0115- PTMC, Critical Areas; C. The area and dimensions of each proposed lot or parcel; Port Townsend Tactical Infill Zoning Approach 12 Attachment D D. Five paper copies of a preliminary unit lot plat meeting the standards and requirements of PTMC 1.:.....16.,o��,40 and :.:.� .,6 0.x.0.; E. Where site conditions require geotechnical analysis to assess or address any probable significant adverse environmental impacts, including environmentally sensitive area conditions, a geotechnical report or study prepared by a competent geologist or geological engineer or other similar professional may be required if deemed necessary by the public works director or the director; F. The applicant shall submit a stormwater drainage plan in conformance with the requirements of Chapter 13.,.32 PTMC, including any soil test information as may be deemed necessary by the public works director; and G. The applicant shall state the estimated quantities of any fill to be exported from the site and imported to the site. 18.22.030 Preliminary unit lot plat — Preparation. The preliminary unit lot plat shall be prepared in accordance with the following requirements: A. The preliminary unit lot plat shall be prepared by a Washington State licensed engineer or land surveyor registered or licensed by the state of Washington. The preparer shall certify on the plat that it is a true and correct representation of the lands actually surveyed. The preparation of the plat shall comply with the Survey Recording Act, Chapter I;.a„8::.0.2.. RCW and Chapter.] :3,2;;;;;,J30. WAC as now adopted or hereafter amended. Upon surveying the property, the'surveyor shall place temporary stakes on the property to enable the city to locate and appraise features of the unit lot plat in the field. The datum to be used for all surveying and mapping shall be as follows: The projection name is the state plane; the projection spheroid is GRS 1980; the coordinate system is the Washington State Plane North Zone; and the horizontal datum is NAD 83. B. All geographic information portrayed by the preliminary unit lot pkat shall be accurate, legible and drawn to a horizontal scale of 50 feet or fewer to the inch, except that the location sketch and typical street crt'ss-sections may be drawn to any other appropriate scale. C. A preliminary unit lot plat shall be 18 inches by 24 inches in size, allowing one -half-inch borders, and if more than one sheet is needed, each sheet shall be numbered consecutively and an index sheet showing the entire property and orienting the other sheets, at any appropriate scale, shall be provided. In addition to other map submittals, the applicant shall submit one copy of each sheet reduced to 8-1/2 inches by 11-1/2 inches in size. If more than one sheet is required, an index sheet showing the entire subdivision with street and highway names and block numbers (if any) shall be provided. Each sheet, including the index sheet, shall be of the above specified size. D. The area of each proposed lot or parcel depicted on the preliminary unit lot plat map shall accurately show the location and dimension of each proposed lot or parcel. 18.22.040 Preliminary unit lot plat — Contents. A. A preliminary unit lot plat shall be submitted on one or more sheets and shall provide the following information. All specifications for public improvements shall conform with the engineering design standards: 1. The name of the proposed unit lot subdivision together with the words "Preliminary Unit Lot Plat"; 2. The name and address of the applicant; 3. The name, address, stamp and signature of the professional engineer or professional land surveyor who prepared the preliminary unit lot plat; Port Townsend Tactical Infill Zoning Approach 13 Attachment D 4. Numeric scale (50 feet or fewer to the inch), graphic scale, true north point, and date of preparation; 5. Identification of all land, trees, and tree canopy intended to be cleared; the trees or tree canopy intended to be preserved per PTMC ,.9.,.0,6,_11,;20, Tree conservation standards; and the location of the proposed access to the site for clearing and grading during site development and construction; and 6. A form for the endorsement of the director of PCDD, as follows: APPROVED BY CITY OF PORT TOWNSEND Planning and Community Development Department Date Director The preliminary unit1ot�plat shall contain a vicinity sketch sufficient to define the location and boundaries of the proposed subdivision with respect to surrounding property, streets, and other major manmade and natural futures. Except as otherwisospecified in this chapter, the preliminary unit lot plat shall contain the following existing geographic features, drawn lightly ire relation toproposed geographic features: 1: The boundaries of the property to be subdivided, and the boundaries of any adjacent property under the same ownership as the land to be subdivided, to be indicated by bold lines; 2. The names of all adjoining property owners, or names of adjoining developers; 3. All existing property lines lying within the proposed unit lot subdivision, including lot lines for lots of record which are to be vacated, and all existing property lines for any property lying within 200 feet of the subject property which is under the same ownership as the property to be subdivided (as described in PTMC ;jp;; ,;:,.'L21,,030(C)) shall be shown in broken lines; 4. The location, right-of-way widths, pavement widths and names of all existing or platted streets, whether public or private, and other public ways within 200 feet of the property to be subdivided; 5. The location, widths and purposes of any existing easements lying within or adjacent to the proposed unit lot subdivision; 6. The location, size and invert elevations of sanitary sewer lines and stormwater management facilities lying within or adjacent to the proposed unit lot subdivision or those which will be connected to as part of the proposed unit lot subdivision; 7. The location and size of existing water system facilities including all fire hydrants lying within or adjacent to the proposed subdivision or those which will be connected to as part of the proposed unit lot subdivision; S. The location, size and description of any other underground and overhead facilities lying within or adjacent to the proposed unit lot subdivision; Port Townsend Tactical Infill Zoning Approach 14 Attachment D 9. The location of any environmentally sensitive areas as described in Chapter ;n„,,,,,5.. PTMC, including all floodplains, lying within or adjacent to the proposed unit lot subdivision; 10. The location, size and description of all significant trees as defined in PTMC ],: ,:,04p:,,.o60. lying within existing public rights-of-way to be improved within or adjacent to the proposed unit lot subdivision; 11. The location of existing sections and municipal corporation boundary lines lying within or adjacent to the proposed unit lot subdivision; 12. The location of any well existing within the proposed unit lot subdivision; 13. Existing contour lines at intervals of five feet for average slopes exceeding five percent, or at intervals of two feet for average slopes not exceeding five percent. Existing contour lines shall be labeled at intervals not to exceed 20 feet. If applicable, indicate slopes equal to or greater than 15 to 25 percent, equal to or greater than 26 to 39 percent, and equal to or greater than 40 percent, by shading or color; 14. The location of any existing structures lying within the proposed unit lot subdivision. Existing structures to be removed shall be indicated by broken lines, and existing structures not to be removed shall be indicated by solid lines. D. The preliminary unit lot plat shall show the following proposed geographic features: 1. The boundaries in bold solid lines of all proposed lots, the area and dimensions of each proposed lot, and the proposed identifying number or letter to be assigned to each lot and/or block; 2. ' The right-of-way location and width, the proposed name of each street, alley, or other public:way to be created and the estimated tentative grades of such streets. Where roadways may exceed the maximum allowable grade or alignment, the public works director may require sufficient data, including centerline profiles and cross-sections if necessary, to determine the feasibility of said roadway; 3. The location, width and purpose of each easementtd be crewed; 4. The boundaries, dimensions and area of public and common park and open space areas; 5. Identification of all areas proposed to be dedicated for public use, together with the purpose and any condition of dedication; 6. Proposed final contour lines at intervals of five feet for average slopes exceeding five percent, or at intervals of two feet for average slopes not exceeding five percent. Final contours shall be indicated by solid lines. Contour lines shall be labeled in intervals not to exceed 20 feet; 7. The building envelopes, as defined in PTMC I8.,,, A,;;.,0 6 0., shall be indicated for each lot; 8. Proposed monumentation; 9. Proposed location and description of all water system improvements, including all proposed fire hydrants; 10. Proposed location and description of all sewer system improvements, including profiles, and, if needed, all pump stations and their connections to the existing system; 11. Proposed location and description of all stormwater management system improvements; 12. Proposed street cross-sections, showing proposed bicycle and pedestrian pathways and sidewalks (if applicable); 13. Proposed type and location of street lighting (if applicable); 14. Proposed type and location of landscaping (if applicable); 15. Proposed location and typical cross-section of trails (if applicable); 16. Proposed location and description of transit stops and shelters (if applicable); 17. Proposed restrictions or conditions on development (if applicable). Port Townsend Tactical Infill Zoning Approach 15 Attachment D E. Upon review of an application, the director and/or public works director may require additional pertinent information as needed to satisfy any regulatory requirements. 18.22.050 Approval criteria. In addition to the review criteria provided in Chapter 20.,.01.., PTMC, the following criteria are the minimum measures by which each proposed unit lot subdivision will be considered: A. Unit lot subdivisions shall be given preliminary approval, including preliminary approval subject to conditions, upon finding by the city that all the following have been satisfied: 1. The proposed unit lot subdivision conforms to all applicable city, state and federal zoning, land use, environmental and health regulations and plans, including, but not limited to, the following: a. Port Townsend comprehensive plan; b. Port Townsend zoning code; C. Engineering design standards; d. Critical Areas Ordinance (Chapter 19,,05 PTMC); 2. Utilities and other public services necessary to serve the needs of the proposed unit lot subdivision shall be made available, including open spaces, drainage ways, streets, alleys, other public ways, potable water, transit facilities, sanitary sewers, parks, playgrounds, schools, sidewalks and other improvements that assure safe walking conditions for students who walk to and from school; 3. Conservation of existing trees, and/or the planting of new trees, shall be provided consistent with Chapter.1.9:4 6 PTMC, Article III, Standards for Tree Conservation; 4. The probable significant adverse environmental impacts of the proposed unit lot subdivision, together with any practical means of mitigating adverse impacts, have been considered such that the proposal will hot have an unacceptable adverse effect upon the quality, of the environment, in accordance with Chapter X9,_04 PTMC and Chapter 43.21-0 5. Approving the proposed unit lot subdivision will serve the public use and interest and adequate provision has been made for the public health, safety, and general welfare. Notwithstanding approval criteria set forth in subsection A, in accordance with RCW 5&.17J.20, .20, as now adopted and hereafter amended, a proposed unit lot subdivision may be denied because of flood, inundation or swamp conditions. Where any portion of the proposed unit lot subdivision lies within both a flood control zone, as specified by Chapter 1,,,9.01x. PTMC and Chapter3;na RCW, and either the one percent flood hazard area or the regulatory floodway, the city shall not approve the preliminary unit lot plat unless it imposes a condition requiring the applicant to comply with Chapter .1.2.,;...05. PTMC and any written recommendations of the Washington Department of Ecology. In such cases, no development permit associated with the proposed unit lot subdivision shall be issued by the city until flood control problems have been resolved. 18.22.060 Unit lot plat review process. A. An application for a full subdivision shall be processed according to the procedures for Type III land use decisions established in Chapter 0...Q..];,_ PTMC, Land Development Administrative Procedures. B. The director shall solicit comments from the public works director, fire chief or designee, local utility providers, police chief, building official, school district, adjacent jurisdictions, if the proposal is within one mile of another city or jurisdiction, Washington State Department of Port Townsend Tactical Infill Zoning Approach 16 Attachment D Transportation, if the proposal is adjacent to a state highway, and any other state, local or federal officials as may be necessary. C. Based on comments from city departments and applicable agencies and other information, the city shall review the application subject to the criteria of PTMC ;;n8..J. ,,.060. A proposed full subdivision shall only be approved when consistent with all the provisions of PTMC 11;; ].1,h...00... D. An applicant for a full subdivision may request that certain requirements established or referenced by this chapter be modified. Such requests shall be processed according to the procedures for variances in Chapter 2.,0.,.x,1 PTMC, and shall satisfy the criteria of Chapter 'i;,;7,;,, 6 PTMC, Variances. 18.22.070 Preliminary approval. A. The Hearing Examiner shall approve, approve with conditions, or deny the preliminary unit lot subdivision within the time requirements of Chapter 20.XX. This preliminary decision shall be in writing and shall set forth findings of fact supporting the decision. Preliminary approval or approval with conditions shall authorize the applicant to proceed with preparation of the final unit lot subdivision. 18.22.080 Modifications to an approved preliminary unit lot plat A. Minor modifications to a previously approved preliminary plat, not involving the location or relocation of a lot, tract or parcel lot line and not involving the location or relocation of a str may be requested by the applicant and a Type I decisions in Chapter .20.1; PTMC. I make written findings and conclusions th 1. The modification will not be inconsis the findings, conclusions, and decisic 2. The modification will not cause the s sd by the direct( approving such following exist: cause the subd ivision to violate a bject to the provisions for ndment, the director shall onto oe Inconsisi subdivision; pplicable city poli regulation; 3. A subdivision maybe modified only if the intent of its original conditions is not altered. Modifications which exceed the criteria above shall be processed as a new preliminary plat application. 18.22.090 Improvement method report Following preliminary unit lot plat approval and approval of all plans and prior to submission of a final plat for the director's approval, the applicant shall submit to the director, three copies of a report describing the method by which the applicant proposes to carry out the minimum improvements required and the time within which such improvements will be completed. The applicant shall submit all design and construction drawings required in conformance with the engineering design standards. This improvement method report shall be signed by the applicant and be accompanied by any applicable proposed performance guarantees. The director shall transmit two copies of the improvement method report with all drawings and other submittals to the public works director. Improvements may be made or guaranteed by either of the following methods, subject to the discretion and approval of the director: A. By actual installation and approval of all improvements in accordance with the preliminary plat, city engineering design standards, and approved construction drawings; B. By the formation of a local improvement district consistent with the provisions of applicable requirements of the city and the state and by requiring the imposition of covenants as a condition of final plat approval requiring that purchasers of any lots waive any protest to the formation and implementation of a local improvement district; Port Townsend Tactical Infill Zoning Approach 17 Attachment D C. By actually installing the minimum improvements as provided by the local improvement district laws of the state and the city, and in accordance with city standards and specifications and under the supervision of the public works director; D. By furnishing to the city a plat or subdivision bond or cash deposit in escrow for the full cost of the improvements, or other security satisfactory to the director, in which assurance is given the city that the installation of the minimum improvements will be carried out as provided by plans submitted and approved and in accordance with city engineering design standards, and under the supervision of the public works director. The amount of the performance bond or other security shall be 120 percent of the estimated cost for the city to contract for construction of the improvements as determined by the public works director, and shall be of a duration in accordance with the engineering design standards. If the phased installation of improvements is proposed, the improvement method report shall describe the proposed phasing, the timing for construction, and proposed methods of guaranteeing and assuring the city that adequate installation of improvements will occur in conformance with the phasing schedule; or E. By a combination of these methods. 18.16.100 Public works director's certificate of improvements. No permit for the construction of improvements within an approved subdivision shall be issued by the city until the improvement method report, all construction drawings, proposed performance guarantees, and other submittals in conformance with the engineering design standards have been received and approved by the public works director. All construction of improvements shall be inspected and approved in conformance with the engineering design standards. After completion of all required improvements or the guarantee of the construction of all required improvements, the public works director shall submit a certificate in triplicate to the director stating the required improvements or guarantees are in accordance with the provisions of this chapter, the preliminary plat, including the city's decision approving the plat, and in accordance with city's engineering design standards. The director shall transmit one copy of the certification to the subdivider, together with a notice advising the subdivider to prepare a final plat for the proposed subdivision. One copy of the certificate shall be retained by the director. 18.16.110 Preparation of final unit lot plat. The final unit lot plat shall be prepared in accordance with the requirements of Section 18.16.120 PTMC. 18.16.120 Accompanying documents — Final unit lot plat A. In cases where any deed covenants or restrictions, including any CC&Rs, will apply to lots or parcels within a subdivision, a typewritten copy of such covenants bearing all necessary signatures shall be submitted along with the final plat. B. The final plat shall be accompanied by a complete survey of the section or sections in which the plat or replat is located, or as much thereof as may be necessary to properly orient the plat within such section or sections. The plat and section survey shall be submitted with complete field and computation notes, showing the original or re-established corners, with the descriptions of the same, and the actual traverse showing error or closure and method of balancing. A sketch showing all distances, angles and calculations required to determine corners and distances of the plat shall accompany this data. The allowable error of closure shall not exceed one foot in 10,000 feet. C. The final plat shall be accompanied by a current (within 30 days) title company certification of: 1. The legal description of the total parcel sought to be subdivided; Port Townsend Tactical Infill Zoning Approach 18 Attachment D 2. Those individuals or corporations holding an ownership interest or any other encumbrances affecting the title of said parcel. Such individuals or corporations shall sign and approve the final plat prior to final approval; 3. Any lands to be dedicated shall be confirmed as being owned in fee title by the owner(s) signing the dedication certificate; 4. Any easements or restrictions affecting the property to be subdivided with a description of purpose and referenced by the auditor's file number and/or recording number; and 5. If lands are to be dedicated or conveyed to the city as part of the subdivision, an A.L.T.A. title policy may be required by the public works director. D. The applicant shall provide the public works director with a computer disk containing a complete set of the final plat maps and as -built drawings on CADD© or other GIS -compatible software as acceptable to the public works director. E. All documents submitted under this section shall contain the name of the subdivision and the name and address of the subdivider. F. All maintenance, performance and guarantee bonds or other guarantees as may be required by the public works director in accordance with PTMC Titles J;;,; and.1.3. and the improvement method report to guarantee the acceptability and/or performance of all public improvements. For all improvements constructed after final plat approval, reproducible as -built drawings and CADD© files shall be submitted within 15 days of completion of construction. 18.22.130 Final plat applies Application for a final unit I PTMC; 18.22.140 Time limitation Time limitations on final ur 18.22.150 Effect of an apps lat shall be prepared and proce! nal unit lot plat submittal. t plats shall be in accordance w d final unit lot plat —Valid land in accordance with Sectio ?ction"18.16.150 PTMC 16.140 Any lots in a final unit lot plat filed for record shall be a valid land use notwithstanding any change in zoning laws for a period of seven years from the date of filing. A unit lot subdivision shall be governed by the terms of approval of the final plat, and the statutes, ordinances and regulations in effect on the date of preliminary unit lot plat approval for a period of seven years after final unit lot plat approval unless the city council finds that a change in conditions creates a serious threat to the public health or safety of residents within or outside the unit lot subdivision. 18.22.160 Distribution of copies and filing of final unit lot plat. The director shall distribute the original and copies of the approved plat in accordance with Section 18.16.170 PTMC. 18.22.170 Transfer of ownership following final unit lot plat approval. Whenever any parcel of land lying within the city is divided under the provisions of this chapter, no person, firm, or corporation shall sell or transfer, or offer or advertise for sale or transfer, any such lot, tract or parcel without having first had an approved final plat for such subdivision filed for record. It is the responsibility of the applicant to ensure that a final plat is fully certified and filed for record with the Jefferson County auditor prior to transferring ownership of any land. Port Townsend Tactical Infill Zoning Approach 19 Attachment D 18.22.180 Building and occupancy permits — Issuance after final unit lot plat approval. A. No building permit for a structure other than a temporary contractor's office or temporary storage building shall be issued for a lot or parcel within an approved subdivision prior to a determination by the fire chief or designee that adequate fire protection and access for construction needs exists. B. No building permit for a structure other than a temporary contractor's office or temporary storage building shall be issued for a lot or parcel within an approved subdivision until the applicant complies with the improvement method report, all requirements of the public works department's certificate of improvements, and all requirements of the final plat approval. C. No occupancy permit for a structure other than a temporary contractor's office or other approved temporary building shall be issued for a structure on a lot or parcel within an approved subdivision prior to final inspection and approval of all required improvements which will serve such lot or parcel, to the satisfaction of the public works director and city building official. 20.01.040 Project permit application framework (excerpt). These tables provide guidance to permit applications. In the event of a conflict between the table and a development code, the development code shall apply. Table 1— Permits/Decisions Type h Type I -A Type II Type III Type IV Type V Permitted uses not Binding site plans Short subdivisions Preliminary full Final plats3 Site specific requiring notice of subdivisions unit_lot rezonesr consistent application (e,g.,° _subdivisions plat with the Port building permits, vacations, including Townsend etc.) short subdivisions that Comprehensive involve right-of-way Plan, including vacations or plat rezones/alternative alterations parcel -specific zones considered in conjunction with the annual comprehensive plan amendment process Port Townsend Tactical Infill Zoning Approach 20 Attachment D Packet E Parking Port Townsend has already reduced its minimum off-street parking requirements. This set of revisions proposes to reduce them even further. The revisions are intended to: • Relax minimum off-street parking requirements for duplex, triplex, and fourplex structures, particularly where streets are fully improved with curb and gutter. • Eliminate off-street parking requirements for second ADUs • Relax minimum off-street parking for multi -family housing types in R -IV and mixed-use districts. • Revise parking design standards to reduce improvement costs, enhance land utilization efficiency, facilitate active transportation, and ensure adequate stormwater management. (Insert updated parking requirements table and standards.) Port Townsend Tactical Infill Zoning Approach 21 Attachment D Packet F — "Fernporary residential occupancy Employers in Port Townsend have complained about the lack of affordable housing for their employees, noting they have difficulty attracting and then retaining staff at all levels because of the area's housing shortage. This revision to code allows employers to provide housing within their properties, permitting housing for temporary employee occupancy on lands which may not now permit residential uses. The State of Washington already has provisions for "farmworker housing," acknowledging the need for less expensive, temporary housing intended to serve employees in what might be remote locations. This initiative would be similar, allowing for housing for public -serving institutions and industrial or manufacturing employees and incorporating design and operational standards to ensure health and safety. The changes propose: • Amending the permitted land use table to allow residential uses under certain conditions in commercial and industrial zones, as appropriate • Establishing an administrative review process to ensure such housing is safe and generally compatible with commercial, manufacturing, and industrial activities, as appropriate (Insert permitted use table.) (Insert new temporary occupancy housing cha Port Townsend Tactical Infill Zoning Approach 22 Attachment D Packet G — CoHective ownership Land trusts, condominiums, cooperatives, and other collective ownership types are not now discussed in Port Townsend's development regulations. This is a shortcoming only in that their omission adds to the confusion of what a land trust or condominium is, frequently leading to the belief they are development types rather than ownership types. Almost any residential development type can be owned as a condominium, cooperative, or land trust, and amendments to the zoning ordinance will ensure these types of ownership can be applied to a variety of housing types. For example, a community land trust can develop housing of a detached or attached type, sell a divided interest in the housing unit and then retain an undivided interest in the common area. The land trust model also frequently retains interest in keeping units affordable, entering into contracts with buyers to ensure permanent affordability. While the ownership model is relatively complex, the housing type to which it applies is often indistinguishable from similar types nearby. Proposed amendments add definitions to the zoning ordinance and propose surgical changes to the permitted use tables to clarify the distinction between residential use type and whatever ownership type might be implied. Revising definitions as appropriate to permit forms of collective or cooperative ownership of residential projects, such as cohousing, cooperatives, land trusts, and others. * Clarifies attached residential housing types (duplexes, triplexe permitted in commercial districts .in conjunction with commer (Insert definitions, as appropriate.) (Insert residential use chart.) Port Townsend Tactical Infill Zoning Approach 23 Attachment D Packet[ I Floor area ratio (FAR) Port Townsend has mixed-use zoning already in place, and, in some areas, residential uses are permitted in commercial zones. These proposed revisions will focus intensity regulation away from units per acre and, instead, focus on floor area ratio. By concentrating on building bulk rather on the number of units included within that bulk, the code will provide more flexibility for mixed-use developers to vary the types and sizes of individual residential units. If demand moves toward smaller, more affordable units, projects can include them without necessarily running into density limitations — as long as they remain within maximum permitted FAR. In addition, FAR bonuses can be used to reward developers who guarantee a share of their units will be rented at below-market rates. This can contribute to variety in the type of unit included in a single project and provide flexibility to project designers. The revisions to the zoning include: Consistent use of FAR rather than units per acre in all mixed-use and commercial districts permitting residential uses Bonus FAR increases to projects promising affordable rents for 15% of its units (Insert modifications to intens standards tal '- Port Townsend Tactical Infill Zoning Approach 24 Attachment D Packet I — Miscellaneous revisions This process has revealed several instances where the code's review processes, application requirements, definitions, or land use tables can benefit from a good scrubbing. This can be particularly helpful in clarifying inconsistencies, codifying administrative interpretations, or adjusting thresholds to make the construction of missing middle housing easier. Some of the changes proposed here include: • Assorted changes to the permitted use chart, such as allowing residential uses in the C-II(H) zone and clarifying and expanding where duplex/triplex/fourplex structures are allowed. • Streamlining application requirements to ensure materials required for various permits are only what is needed for permit review and action. • Adding a definition of "courtyard apartment" and ensuring this type is permitted in R -II, R -III, and R -IV districts as appropriate. • Revising residential structure conversion requirements to exempt conversions of detached single-family homes into duplexes, triplexes, or fourplexes are exempt from maximum density limits. • Relaxing residential setback requirements, particularly for front yards in the R -III district and in other residential districts related to accessory structures. • Increase maximum lot coverage thresholds to R-1 and R-11 districts. • Reviewing subdivisionbonding requirements' (Insert commercial use chart.) (Insert PUD application requirements text.) (Insert definitions, as appropriate.) (Insert residential use chart.) (Insert updated setbacks and lot coverage table.) (Insert assessment of bonding requirements.) it construction of addition ure applicability. Port Townsend Tactical Infill Zoning Approach 25 KA I J""•.A rJ 7 LL_ 73 C (0 �r h e. C� w�^ �w x. r, i MII ■h a iXM .. M Y! ■ +w N rwa NIM1 +ri N �N yr; From: Kellen Lynch To: publiccomment(acityofot. us Subject: Comment for Planning Commission. 2.1.23 Date: Wednesday, February 1, 2023 9:50:24 AM Attachments: imaae001.nna MRSC. Missing Middle Housina PlanninaCommission 111022.odf Planning Commission, I am concerned that the pursual of 'missing middle' zoning changes without affordability protections of any kind will push the growth of unaffordable market rate housing in Port Townsend. I have attached a compilation of case studies assembled by Municipal Research and Services Center (MRSC) which covers the experiences of regional cities that have pursued infill housing without protections for affordability. These studies include the Cities of Wenatchee, Bellingham, Kirkland, Olympia and Spokane show that the development of 'missing middle' housinE will likelv not become affordable to most of the residents that already live in Port Townsend or would come to work at our local businesses. To pursue code changes that have not demonstrated any improvement to affordable housing is inadequate. What protections can the new code offer to the locals like myself who grew up in PT but cannot afford to live here? MRSC highlights: Page 10: "Likely not affordable to those earning <80% AMI" — MRSC Overview Page 105: "Infill Toolkit housing has generally not equated affordable housing." - Bellingham's "What have we learned" Page 123: "This is not affordable housing, and new units come with high price tags." - Kirkland's "takeaways" Thank you again for your efforts, Kellen Lynch ..:...... :t....:........1.:>rystud cr. r 1206-384-2135 Port Townsend, WA NEW STORY STUDIO I` moppP1-I s E2 E 2 E 2 4fl T 41 R1 mi I W. W. W. W. W. W. W. W. W. Q 0 w 0 4a a� 0 a 4-0 0 a 2 eyll zi (D 0- Z z EEC D p o u I Ell, rl I g� 7 -E. § 210 f, fg ni eyll a) m 0 O a) 13 O V N O N N N C N :3 O 3 N V) v U O L Q N 0 O O E T 0 'O (6 > N E a1 X + O E w O N > �n a) L O O - Q Q �u C: L ajj M x U ai u 0 M -0 U iJ C -0 a CQ 7 LU O � � � v aia� Q U ._ O c �O U f9 aJ O Q) a U v Q dA bn O O s = a N v � cl O U U -0 ro Qj O U T � m 0 2 U N O N N N C N :3 O 3 N 3 v o� U x Q.) 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Z L. 4) (01 luj CL 4-0 m l— E m 0 :3 z si!un (I'll ('A 0 Cl �ZD CX") r*4 C*4 O r*4 %wamwo si!un (I'll ('A 0 Cl �ZD CX") kinlir , 9 r 0 LAI 7 71 V'� 0 I Im ro i bn • 0 ®� Ln CJ bn ® ai :3 Ln u — U _0 GJi CL Ln I I` From: Mary Beth Haralovich To: PublicComment(cbcityofpt.us Subject: Public Comment for Joint City Council + PC Meeting on 2/13 Date: Wednesday, February 8, 2023 5:06:30 PM Dear Ci e City to increase housing supply, especially housing that will meet the needs of our growing workforce. As residents who rely on the vital services that our local hospital and emergency service providers offer, it is our job as a community to ensure that local nurses, firefighters, EMTs, and others have affordable housing options. The health of our community relies on our ability to attract, retain, and grow our local workforce. Please ensure your decisions will produce more affordable for our workforce! J. J. Johnson & Mary Beth Haralovich Port Townsend From: Susan Kutsch To: PublicComment(cDcityofpt.us Subject: Public Comment for Joint City Council + PC Meeting on 2/13 Date: Wednesday, February 8, 2023 9:47:27 AM Dear City Council + Planning Commissioners, I strongly support efforts made by the City to increase housing supply, especially housing that will meet the needs of our growing workforce. As a resident who relies on the vital services that our local hospital and emergency service providers offer, it is our job as a community to ensure that local nurses, firefighters, EMTs, and others have affordable housing options. The health of our community relies on our ability to attract, retain, and grow our local workforce. Please ensure your decisions will produce more affordable for our workforce! From: Jason Victor Serinus To: publiccomment(&cityofot. us Subject: Public Comment for Joint City Council + PC Meeting on 2/13 Date: Tuesday, February 7, 2023 3:30:32 PM Dear City Council + Planning Commissioners, I strongly support efforts made by the City to increase housing supply, especially housing that will meet the needs of our growing workforce. As a resident who relies on the vital services that our local hospital and emergency service providers offer, it is our job as a community to ensure that local nurses, firefighters, EMTs, and others have affordable housing options. The health of our community relies on our ability to attract, retain, and grow our local workforce. Please ensure your decisions will produce more affordable for our workforce! Jason Victor Serinus http://www.jasonserinus.com (He/his or Jason/Jason Victor) • Senior Contributing Editor, Stereophile • Music and audiophile critic: Stereophile, San Francisco Classical Voice, Classical Voice North America, Seattle Times, Opera Now, Seattle Symphony, Port Townsend Leader, Bay Area Reporter, American Record Guide, AudioStream, Stanford Live, Gay City News, Copper, Opera News, Carnegie Hall... • WA State LGBTQ Commission Commissioner https://Igbtq.wa.gov/ • Whistler Extraordinaire: The Voice of Woodstock whistling Puccini's "O mio babbino caro" in "She's a Good Skate, Charlie Brown" • "The Pavarotti of Pucker" • Editor, Psychoimmunity and the Healing Process: A Holistic Approach to Immunity & AIDS (Celestial Arts) "Neutrality helps the oppressor, never the victim. Silence encourages the tormentor, never the tormented." Elie Wiesel "You see, we can't always name the things we feel ... and that's where music is so marvellous, because music names them for us, only in notes instead of in words." Leonard Bernstein From: Janet Keller To: PublicComment(cbcityofpt.us Subject: Public Comment for Joint City Council + Planning Commission Mtg on 2/13 Date: Wednesday, February 8, 2023 5:26:50 PM Dear City Council + Planning Commissioners, I strongly support efforts made by the City to increase housing supply, especially housing that will meet the needs of our growing workforce. As a resident who moved here because of the established and outstanding service sectors like the maritime trades, non-profit programs, restaurants, art and entertainment, I want to ensure those local workers have access to affordable housing so they can remain a part of our community. In addition, I want to see our town attract more young families with children. This population also needs access to affordable housing, as do the teachers and child care workers who help meet the needs of parents with young children. The health of our community relies on our ability to attract, retain, and grow our local workforce. Please ensure your decisions will produce more affordable for our workforce! I strongly support more `missing middle' housing that can meet the needs of regular workers, not just retirees from California like me. Sincerely, Janet Keller Janet Keller, CPCC, PCC Endgame Coaching tel: 510.919.0512 e/m: janetkellerpcc ,c&gmail.com zoom: htt2s://coactive.zoom.us/j/5109190512 cal: htips://janetkeller.acuityscheduling.com From: Michelle Reddel DC To: PublicComment(acityofpt.us Subject: Public Comment for Joint City Council + Planning Commission Mtg on 2/13 Date: Wednesday, February 8, 2023 5:56:25 PM Dear City Council + Planning Commissioners, I strongly support efforts made by the City to increase housing supply, especially housing that will meet the needs of our growing workforce. As a resident who moved here because of the established and outstanding service sectors like the maritime trades, non-profit programs, restaurants, art and entertainment, I want tc ensure those local workers have access to affordable housing so they can remain a part of our community. In addition, I want to see our town attract more young families with children. This population also needs access to affordable housing, as do the teachers and child care workers who help meet the needs of parents with young children. The health of our community relies on our ability to attract, retain, and grow our local workforce. Please ensure your decisions will produce more affordable for our workfo Sincerely, -VlicheCCe ReddeCDC From: Joanne Rittmueller To: PublicComment(cbcityofpt.us Subject: Public Comment for Joint City Council + Planning Commission Mtg on 2/13 Date: Wednesday, February 8, 2023 7:39:01 PM Dear City Council + Planning Commissioners, I strongly support efforts made by the City to increase housing supply, especially housing that will meet the needs of our growing workforce. As a resident who moved here because of the established and outstanding service sectors like the maritime trades, non-profit programs, restaurants, art and entertainment, I want to ensure those local workers have access to affordable housing so they can remain a part of our community. The health of our community relies on our ability to attract, retain, and grow our local workforce. Please ensure your decisions will produce more affordable for our workforce! Thank you, Joanne Rittmueller From: Bill Wise To: Pu bl icCom ment(cJ)cityofpt. us Subject: Public Comment for Joint City Council + Planning Commission Mtg on 2/13 Date: Wednesday, February 8, 2023 3:10:26 PM Dear City Council + Planning Commissioners, I strongly support efforts made by the City to increase housing supply, especially housing that will meet the needs of our growing workforce. I have volunteered in various capacities here in Jefferson County - as co-founder and chair of Team Jefferson EDC for seven years, in the Climate Action work to inventory our climate footprint in 2008 and more recently in 2018 as co-founder of 1-2020's Energy Action Group which morphed into the PUD Campaign of 2008 to form our Jefferson County PUD. These activities have assisted to some degree to create jobs and support the wellbeing of Jefferson County citizens. Now almost 20 years in, I see affordable housing as the most critical of needs with regard to the wellbeing of our community. I want to ensure our local workers have access to affordable housing so they can remain the essential part of our community that they are. The health of our community relies on our ability to attract, retain, and grow our local workforce. Please ensure your decisions will produce more affordable for our workforce! From: Carla Main To: PublicComment(cbcityofpt.us Subject: Public Comment for Joint City Council + Planning Commission Mtg on 2/13 Date: Thursday, February 9, 2023 10:54:37 AM Dear City Council + Planning Commissioners, As residents who moved here 22 years ago, we strongly support efforts made by the City to increase housing supply, especially housing that will meet the needs of our growing workforce. This community has changed so much in the last 22 years, and housing that was once affordable is now out of reach for most workers! We moved here to support the established and outstanding service sectors like the maritime trades, non-profit programs, restaurants, art and entertainment, It is imperative that we ensure those local workers have access to affordable housing so they can remain a part of our community. The health of our community relies on our ability to attract, retain, and grow our local workforce. Please ensure your decisions will produce more affordable housing for our local workers! And thank you for all of the work you do on behalf of the residents of Port Townsend! Your efforts are noted and greatly appreciated! Carla Main and Brad West From: vikis To: oubliccomment Subject: Public Comment for 2.13.23 Joint City Council/Planning Commission Meeting Date: Monday, February 13, 2023 7:01:23 AM Attachments: Community Centered Housing Develooment.odf Dear Council Members, Planning Commissioners, Community Development Director, and Planning Staff, The next six to eight months will be critical in determining the City's response to the Housing Affordability Crisis for decades to come, first through zoning code updates and then through a Comprehensive Plan update potentially requiring further updates to the zoning code. Next year (2024), the city will also be helping to develop a new 5 Year Plan to End Homelessness in cooperation with the county, housing service providers, community housing activists and people with lived experience of homelessness. Changes to the zoning code will affect not only what type of housing gets developed and how much of it, but also how and where it gets developed and who does the development - with profound implications for whom housing development serves. I strongly believe that we - as a community - need to claim the future of housing development as ours to determine. I further believe that a visionary and systemic housing plan will embrace community -centered housing development as the way forward. Community -centered housing development means that development is: Community -scaled: Its physical form is scaled to foster high- quality public spaces consistent with the historical scale of Port Townsend's neighborhoods and existing homes; Community -inclusive: It prioritizes housing as a basic need rather than a for-profit opportunity by providing sufficient housing for all incomes and redressing the historical injustices of exclusionary zoning; Community -driven: It puts resources (and decision-making) into the hands of the community and not outside developers; Community -owned: It fosters community wealth by providing opportunities for the community to invest in itself through community -owned housing; and • Community -controlled: It encourages participatory and democratic local governance of housing development and our housing commons. To this end, I strongly advocate for a strategy that restructures the zoning code to: (1) make it easier and less expensive to build lower-cost housing, including missing middle housing (that is, more units on less land in what are now single-family zones); and (2) include a policy measure that would require larger developments to designate a portion of new housing units as affordable for households making low to moderate incomes. This strategy aligns with the Missing Middle Housing bills, HB 1110 and SB 5190, now before the legislature and best fits the vision of community -centered housing development presented above. I also strongly agree that we need a larger, systemic housing plan. A just and inclusive plan would prioritize housing as a basic need rather than a profit opportunity, minimize displacement, and address the historical injustice of exclusionary zoning. Such a plan would include goals for housing production by income level; permitting that empowers community -driven, small-scale housing development; anti -displacement policies and programs; and publicly supported programs to accelerate non - market development options (e.g. CLTs and cooperative housing) and workforce housing development, including missing middle housing options. The attached paper is the longer version of how I arrived at the above statement. It represents a first attempt to synthesize a vision of a caring, inclusive, participatory, and sustainable community built on caring relationships and locally -rooted, broad-based ownership of place -based assets with an analysis of Port Townsend's housing crisis and what we can do about it as a community. thanks you all for your commitment to Port Townsend, Viki Sonntag, community activist PS Thank you for including the attached paper in the packet's public comments along with this email. Zoning Changes for Community -Centered Housing Development: A Vision and Research Policy Paper Viki Sonntag, Community Activist, Port Townsend February 2023 In response to the extreme and prolonged shortage of affordably priced housing, both rental and owned, the City has prioritized creating opportunities for more affordable infill development in its 2023 workplan. A particular focus of their efforts is removing barriers in the zoning code that make it expensive and difficult to build housing sufficient to the community's needs. Most of us in Port Townsend are aware of the housing affordability crisis and its heavy burden on people's lives. More and more of us are at risk of or have fallen prey to homelessness. Others are being unwillingly forced to move out of the city to find housing and many are having to commute from outside the county to work here. Having to pay more and more for housing as a percentage of income puts market -rate rentals, let alone buying a house, out of reach. The lack of housing, in turn, compromises the city's ability to provide essential services and business owners' ability to keep staffed. And, as housing prices soar, so do our property taxes. All of these impacts matter a great deal to the future of the community we love dearly. It is clear that we cannot leave things as they are and expect different outcomes. There is also an urgency to do something now given the many harmful effects of this crisis. As a result, there is increase in momentum towards changing the rules governing housing development. At the same time, zoning is intricately tied up with other parts of the housing market, such as financing, real estate practices, state law, permitting, building codes and local builder/developer capacity. This makes changes complex and unpredictable. All of these factors vary considerably from place to place which makes comparing Port Townsend's housing markets to those of other cities challenging. As a result, what things to change in the zoning code and what to expect as a result are up for debate. What this Paper is About So what can we do to understand what zoning changes will make a difference to preserving the future of a Port Townsend we love? A good place to start is the community's vision for its future, followed by identifying zoning rules that are driving up costs in the context of larger system dynamics, and then, look at the evidence supporting different zoning changes as they have been applied elsewhere, recognizing that Port Townsend is unique. The following effort to put zoning in the context of a community -centered vision for Port Townsend is mine but one born out of 10 years of community activism in Port Townsend focused on housing and economic inequality, a multitude of conversations with a diversity of folks, hands-on experience of building six below-market rate housing units (including my own Page 1 of 16 1000 sf house at $200/sf, albeit 10 years ago), and three years on the planning commission. I invite anyone who lives here in Port Townsend to give feedback on this synthesis of observations, research and consideration of possible solutions. Vision and Values To answer the question of what zoning changes will lead to the kind of community we want in Port Townsend, we need a vision based on clear values. These values then inform the choices we make today. While a true vision of Port Townsend's future must necessarily involve a broad based community discussion', the vision crafted here reflects a history of community -driven initiatives and ownership, such as the choices to: convert from a private to a public utility; ban big box stores from Port Townsend; value an independently owned hospital; identify with a strong, diverse and networked marine trades industry; embrace public pathways; champion an economic development focus on growing locally -based businesses; foster a hub of intentional housing communities (e.g. co -housing, ecovillages, cottage clusters); and create the first Local Investment Opportunity Network (LION) which has become a model for local investing across the country. Port Townsend is also a community of relationships and caring. We have many beloved local organizations stewarding land and the socio-economic commons, among them: Local 2020, Jefferson County Land Trust, the Port Townsend Marine Science Center, Jefferson county Foundation and Jefferson County Immigrants Rights Advocates (JCIRA). More recently, Community Build has empowered the community to provide essential housing for people experiencing homelessness and the Housing Solutions Network has become a force for workforce housing. The long term solution to our housing crisis is found in a corresponding vision of a caring, inclusive, participatory, and sustainable community built on caring relationships and locally - rooted, broad-based ownership of place -based assets. Community -centered housing development means that development is: • Community -scaled: Its physical form is scaled to foster high-quality public spaces consistent with the historical scale of Port Townsend's neighborhoods and building stock. • Community -inclusive: It prioritizes housing as a basic need rather than a for-profit opportunity by providing sufficient housing for all incomes and redressing the historical injustices of exclusionary zoning. 1 In 2020, Local 2020 conducted a community visioning survey. Two survey results highlighted both the need for affordable housing and concerns about rising inequality. The results can be found at Dr..s.//I¢Q%s�.U.g[vu.-. csrr LrI!L p..!Q s/2.22.:./..4J3/IL ca.11...._?X12:Ci...._Vitsinii_ng....._Re.p r .:..ncl: . Page 2 of 16 • Community -driven: It puts resources (and decision-making) into the hands of the community and not outside developers. • Community -owned: It fosters community wealth by providing opportunities for the community to invest in itself through community -owned housing. • Community -controlled: It encourages participatory and democratic local governance of housing development and our housing commons. An example of community -centered development is the work of Jefferson County's Habitat for Humanity which is one of the most productive Habitats in this country in terms of housing production per population. The intentional communities — Quimper Village, Port Townsend EcoVlllage and Rosewind Co -Housing — provide other examples. Many individual homeowners are stepping forth to build ADU's to help fill the housing gap and LION is providing financing. The Olympic Housing Trust is getting ready to build its first community of family housing units next to a community garden. And other ideas are in the making. To realize the vision of community -centered housing development, the rules for governing this development as contained in the zoning code must embody the principles that foster inclusive, participatory and sustainable community. These include: • Providing a level playing field by increasing access to land and housing for all income levels impacted by the housing crisis; • Minimizing displacement by centering racial and economic inclusivity in all development; • Fostering greater community engagement through ensuring democratic participation and holding open, transparent and honest community conversations with the intent to build trust; • Promotes the development of local capacity to provide for our community's needs: and • Catalyzing public resources to aid in building community wealth. The next section of this policy paper discusses current research on the housing crisis in the context of Port Townsend. This summary of the research is presented as a series of issues. In the real world, these issues are complex and interrelated but here they are broken out for the sake of comprehensibility. Housing Market Dynamics and Zoning Rules 1. While there are many drivers of housing unaffordability,2 there is more than ample evidence (and consensus) that the massive undersupply of lower cost housing is a primary Z Among them, the financialization of the housing industry, demographic shifts, sharp rises in building material costs, economic inequality, and social opposition to building affordable housing. Drivers of Housing (Un)affordability in the Advanced Economies: A Review and New Evidence. 2022. Yeonhwa Lee, Peter A Kemp and Vincent J. Reina. Page 3 of 16 cause.' Zoning regulations that limit the supply of land available for housing and the number of units that can be built on it are of particular concern (see Point 7 below). • There is a broad emerging consensus among researchers across a range of disciplines that bad zoning policies are the main driver of housing unaffordability.4 • While zoning changes can spur lower-cost housing development, housing prices may still go up for other reasons. In other words, lower costs do not necessarily mean lower prices. (Think of insulin as another market where there is a huge disconnect between cost and price). • Zoning changes that make it simpler and easier to build lower cost housing are often referred to as missing middle housing policy. Generally missing middle housing looks like smaller houses on less land. They cost less to build than traditional single -detached homes, translating into lower sale and rental prices and increased affordability. • However, cost is only one component of price. Zoning doesn't determine what profit margins are or even how fast or how many houses get built, although zoning can influence these. 2. Single-family zoning has resulted in historical patterns of racial and class discrimination. These patterns persist over time and contribute to the racial wealth gap. Research shows that the more land dedicated to single-family zoning in a community, the greater the exclusion of non-white and lower-income people from housing.' This is why single-family zoning is referred to as exclusionary zoning. 3. Zoning not only affects the amount of housing built but measurably impacts other important elements of the quality of life in our community, such as traffic, transit development, economic development, open space, sprawl, social inclusion, walkability, and climate change. Research shows that higher density residential zoning positively impacts these elements. • Communities with lower density levels and less diversity of uses also have a higher dependence on automobile commuting and increased carbon emissions than do communities with higher densities. High density counts towards climate change goals. Single-family zoning also drives increasing house size. Smaller housing units are more energy and resource efficient. 3 Washington State is ranked 6t" in the country in the underproduction of housing units. 2022 Housing Underproduction in the United States. Up for Growth. Ihttis.( u. fr rgro nrll_:irg/ap.pl.y.::lhe.:viisiic_n.haus.i.in.g... u_n c�_e rg.ra� e�_ur_t i r� ink a For example, see The Economic Implications of Housing Supply. 2018. Edward Glaeser and Joseph Gyourko, which argues, "The implicit tax on development created by housing regulations is higher in many areas than any reasonable negative externalities associated with new construction." Also see, Cancel Zoning, The Atlantic. 2022. M. Nolan Gre . htt s: www.theatlantic.corn ideas aUchuve 2022 06 z.onin houasin affoUdabiVit roirmb arkun - Y..............p.......��............................................................................................/......................................................./........................................................g................................g................................................._Y.........................Y....p.....................8... Ihoustor7��66J.2.8�� ....................................................................... 5 Zoning by a Thousand Cuts. Sara C. Bronin. 2022. haps.//.p.der.sossrn_.rim./sa.l.,3/.p.rrrscfum?.sfir._h id.. -3:d2 r. Page 4 of 16 • Higher density neighborhoods support the existence of close proximity to goods and services accessible by foot or bike. Low density development leads to sprawl and the degradation of open space and our environmental commons. 4. Zoning must conform to a number of state laws that govern land use. Because housing affordability, growth and displacement are regional issues, there is a lot on what local authorities can or cannot do in state laws, the most famous of course being Washington's Growth Management Act (GMA). GMA directs cities to put growth within current urban boundaries. This means increasing density as our population grows.' • Growth Management is cited as an example of a land use policy promoting density at the city level. It seeks to make cities more environmentally friendly and limit urban sprawl.' GMA's urban growth boundaries preventing new greenfield construction are designed to protect farms and forests from urban development, an issue of huge importance in our rural county to many community members. • GMA also sets the ground rules for our cities' Comprehensive Plan to which the zoning code is subordinate. An important update to the GMA incorporated into state law in 2021 directed cities to do inventory and analysis of housing units for all income levels (RCW 36.70A.070).' Currently we only have numbers for housing production in total, so we don't know how much of that housing meets the needs of different income groups. This GMA update should rectify that but it also takes time to implement. (We also don't know how much housing construction is blocked by local zoning regulations or how much displacement occurs or who is being displaced. See Point 13 below.) • Another important GMA element governing zoning is RCW 36.70A.540 that lays out the rules for affordable housing incentive programs.' An important limitation in this RCW is that rental housing units to be developed shall be affordable to and occupied by households with an income of fifty percent or less of the county median family income, adjusted for family size; and owner occupancy housing units shall be affordable to and occupied by households with an income of eighty percent or less of the county median family income, adjusted for family size. (See Point 11 on Inclusionary Zoning below for related discussion on the impact of these restrictions on workforce housing.) 5. Current legislation at the state level would allow up to a fourplex in all single family zones in cities of 6,000 or more in population statewide (HB 1110 and SB 5190).10 There is strong support for this legislation across the business and public sectors and environmental and social justice activists. 6 The limited housing supply probably acts as a brake on population growth. Many people are being forced out or our city and county to accommodate people with more money coming from outside the community. Evaluating Housing Affordability Policies in Your Area. Emily Hamilton. 2022. $ RCW 36.70A.070 h.G: ps ppu_I.loaspx? ite""36.70a_:070, 9 RCW 36.70A.540 h_ps.o/../....p.p.:.0e.:wa gv/rcw/r.fauQts.IPxLufie....36 J�16i a�40 io HB 1110 and SB 5190. htt .s: a Qe .wa. ov biQl.summar ?BiQiNumber=1. it 1.o Qnitiative:::fal.se&Year=2023. and ..........................p.............................g................fl.................... .............E.......................................................................................................................................................................................................... Ih:: t .I/ g.: a...ggy/lbii.11su!irn ma.ir.Y?G.i:ll.l_NLlifnber.= 1.90 Chairm_ber"»Senate Year:::2(123. Page 5 of 16 • In a recent Seattle Time/KUOW-sponsored poll (Feb 2023), seventy-one percent of likely Washington state voters, across partisan lines and from cities to small towns and rural areas, support legislation that would eliminate single-family zoning in Washington cities and allow more homes like duplexes and small apartment buildings." • The one standout from supporting this legislation is the Washington Association of Cities, a non-profit, that claims neutrality on the bill but whose main issue is "local control". Local control as referred to in this context does not mean community engagement but the power of city officials and local planning departments to make land use decisions. 6. The housing crisis is regional. What happens in Seattle and Tacoma, the East Side, and Everett affects Port Townsend. • The state's shortage of homes rose from 64,000 in 2012 to 140,000 in 2019—more than doubling in just 7 years. 12 • Shifting populations contribute to an influx of out-of-towners competing for housing. Many of these are able to convert their equity in higher price markets to cash, obtaining a competitive advantage over locals in purchasing homes in the Port Townsend market. 7. Single-family zoning combined with maximum density rules is a primary deterrent to more housing construction.13 Single-family zoning drives up rental and housing costs over time by restricting housing supply. • Exclusionary zoning restricts the number of households that can live in a jurisdiction, leading home prices to be bid up by those who can afford to pay them. • Missing middle housing is less expensive than stand-alone houses because the homes are generally modest in size and the cost of land is split —a triplex, for example, puts three homes on a city lot where only one was allowed, often under one roof. In contrast, detached -house zoning guarantees that only the most expensive kind of homes can ever get built in most residential neighborhoods.14 • Zoning laws favor the construction of single-family houses on a relatively large amount of land. Currently 89% of Port Townsend residential land is restricted to single-family housing plus an ADU on single lots of 5000 square feet or more. • The Port Townsend code already allows for a variety of housing types such as duplexes and triplexes but not on single lots, that is, the amount of land required for each unit in a multi -family dwelling is the same as for a single family residence. So a duplex, for instance, requires 10,000 square feet. Allowing duplexes and triplexes by themselves 11 https://www.sightline.org/wp-content/uploads/2023/02/2023-POLL-WA-Voter-Views-on-Housing-Policy- Issues.pdf 12 Washington's Middle Housing Bill Explained. Sightline. 2023. Dan Bertolet, Sightline. ::res.://...wwvr.e_si.get(.ink U 0 3./e /®2./rrr�1. bingt�rr�:s.:::2.a�3.:::rrvidd.Ve.::��usin.�;:::12.1_�I.:::�xp(�p_rti�d/.. 13 Zoning by a Thousand Cuts. Also, Inclusionary Zoning Hurts More Than It Helps. 2019. Emily Hamilton. " Seven Reasons Washingtonians Need Middle Housing. 2023. Dan Bertolet, Sightline Institute. Ih:rrP..s.//...vvww.:_si.gh. Iin.eoirg/���.../��,���/siveIn.:::r�a_s�ln_s::. gn IhiingLorq.:::meads:::mii_dd.11e.:::Ihousiing/ Page 6 of 16 without allowing for greater density has not perceptibly increased construction of these types of housing as land cost is prohibitive. 8. Research indicates that any change to single family zoning rules will take time to affect housing production rates and the mix of available housing stock.ls • Although zoning changes affect development capacity by allowing different types of housing and more housing units to be built per acre, building capacity can take some time to develop. 16 On the demand size, changes in homeowners' preferences also take time. The very gradual up take of ADUs in Los Angeles is an example of how slow change can be.17 While ADU's have been allowed for decades in Los Angeles permits were difficult and expensive to obtain. Now more than 20% of new units in Los Angeles come from backyard conversions with the increase in ADU permits only recently taking off. From 2017 to 2021, the number of ADU permits issued in the city increased by 202% to over 5000 ADU permits per year. • One thing that can make a huge difference in speeding up building capacity is developing programs that address the other housing development barriers slowing production such as financing and permitting. This was one factor in Los Angeles' ADU success. 18 For example, it can be "difficult if not impossible" for homeowners to find lenders who will take ADU rental income into account when deciding whether to issue a construction loan, thus the importance of establishing new lending options particularly aimed at low-income homeowners. 9. Exclusionary zoning requirements, other than single-family zoning, that affect housing production include: minimum parking; maximum height; maximum floor -to -area ratio; and obligation to undergo a public hearing; minimum lot -size mandates; and maximum lot coverage. With the exception of floor -to -area ratios (for single-family residences and duplexes and triplexes), all of these requirements are in some form in the PT code. • Port Townsend reduced parking minimums in 2022. Further reductions calls for a better understanding of the relationship between parking requirements and transit development. • The permitting process for different housing types is important. Housing applications subject to public hearing requirements are more likely to be rejected.19 10. Upzoning refers to the process of changing the zoning code to allow new development capacity, whereas rezoning refers to a zoning change in allowable land uses, for example, from single-family to multi -family. While changing the base density (number of housing "Unlocking the Potential of Missing Middle Housing. 2022. David Garcia, Muhammad Ala meld in, Ben Metcalf and Willima Fulton.] q s: ternercenter. berkele .edu w content a loads 2022. �.2 IMiissiir� -Muddle..Brief..December.. k2.......�/.........................................................................................Y................../........ p...................................../........r?......................./......................./.........../.............................g........................................................................................................... 2922 adf 16 Building capacity refers to how much housing is actually being built where development capacity refers to what could be built. 17 New housing in Los Angeles leans heavily on ADUs 18 https://xtown.la/2022/09/20/adus-los-angeles-housing-numbers/ 19 Zoning by a Thousand Cuts. Page 7 of 16 units per acre) is one way to upzone, there are other ways, for example, changing height restrictions. For most of its history, upzoning has been limited to targeted areas. Different impacts are associated with targeted upzoning compared to upzoning over a broad area (see Point 12 on Ending Single Family Zoning), for example, an entire city compared to a neighborhood.20 Inclusionary zoning (see Point 11) is also considered a form of upzoning but with different impacts than market -rate upzoning.11 • Market -rate housing development is most often associated with upzoning. • Research shows that targeted upzoning is often associated with gentrification and segregation. For example, a 2021 study of New York City neighborhood upzonings found that upzonings are likely to accelerate, rather than temper, gentrification pressures.22 • Another unintended impact of upzoning is to create sprawl. Developers seeking to avoid inclusionary zoning requirements look for land outside the targeted areas. This is why we see development the recent Madrona Ridge and Cook Avenue developments in Port Townsend even when the city is offering incentives in the form of development fee waivers in the Rainier sub -area. • Limiting residential development to single-family homes on spacious lots restricts the supply of housing, driving up costs but it also keeps the cost of the single -family -zoned land itself down relative to what it would be if that land could be used more intensively. If you upzone only targeted areas in places where the demand is great, you will see single family property owners not only selling to apartment developers (who will pay more for the land if they can put more units on it), but others holding out for a similar deal, driving prices up dramatically.23 This is a common story in large cities. • Considerable attention has been given to a study of the impacts of upzoning on land values in Chicago .21 "[The results show] that one effect of upzoning is a short-term increase in property transaction prices. First, the upzone for increased construction (density classes) quickly increased transaction values. This is a sign that land prices adjusted to the expanded ability to build, providing a one-time boost to incumbent landholders and suggesting interest in future redevelopment at higher densities." This study has been used to argue against density increases. However, Freeman, the author of the Chicago study, says, "Since I did not find any increase in construction resulting 21 Housing Arguments Over SB 50 Distort My Upzoning Study. Here's How to Get Zoning Changes Right. 2019. Yonah Freemark. https://thefrisc.com/housing-arguments-over-sb-50-distort-my-upzoning-study-heres-how-to- get-zoning-changes-right-40daf85b74dc 21 Upzoning is also not the same thing as ending exclusionary zoning (see Point 12). 22 How do upzonings impact neighborhood demographic change? 2021. Jenna Davis. Ih:t:rpsI/ ww.e_s c%e n e e d.i_o r cern./sclerae e..(a_r.t i c. _ 1-00703 . 21 What Would Mass Upzoning Actually Do to Property Values? 2022. Daniel Heriges. https://www.strongtowns.org/jou rnal/2022/1/18/what-would-mass-upzon ing-actually-do-to-property-values 24 Upzoning Chicago: The Impacts of a Zoning Reform on Property Values and Housing Construction. 2019. Yonah Freeman. https://yonahfreemark.com/wp-content/uploads/2019/01/Freemark-Upzoning-Chicago.pdf Page 8of16 from the upzoning, I was not measuring the impact of higher density. So it is inaccurate to argue that I identify increased density as a cause of reduced affordability."zs 11. Incentives to developers to build more affordable units, primarily density bonuses, (often referred to as inclusionary zoning programs, or inclusionary zoning for short) has marginally increased the number of below market -rate units being built but not at the rate that is needed, that is, demand still swamps supply. • First developed in the 1970s, Inclusionary zoning is used by municipal governments to encourage developers to build below-market rate houses. It is often imposed on new developments, sometimes citywide and sometimes only in certain neighborhoods, in a process referred to as upzoning (see Point 10 above).26 • Density bonuses increase median -house prices. To cover the cost of providing the affordable units, developers need to raise the prices of the market -rate units that are cross -subsidizing the affordable units (units usually restricted to those with incomes from 100% or lower of the area median income). This leads to high-end developments which, overtime, push median market -rate prices up. One of the most extensive research studies of density bonus impacts found they raise prices by 1% for every year of their existence.27 Compounded overtime this is a considerable increase in price. • At a minimum, for-profit affordable housing projects require a 15 to 20% profit margin to obtain market (private) financing." • As researcher Emily Hamilton points out, "The value of density bonuses rests on localities' underlying exclusionary zoning; if local rules permitted homebuilders to provide as much housing as they think would be profitable, density bonuses wouldn't have any value. Inclusionary zoning, therefore, cannot be a remedy to exclusionary zoning."29 • "Where density bonuses raise housing prices, the burden of this policy falls hardest on low-income households that are not lucky enough to qualify for a unit that is designated as affordable."" • Housing production rates vary considerably according to different features of IZ program.31 Higher rates are associated with rental unit production, jurisdiction -wide coverage, providing incentives (and different incentives), compliance options, and " Housing Arguments Over SB 50 Distort My Upzoning Study. 26 Over the past four decades the federal government has dramatically shrunk its role in providing public housing, shifting instead toward a practice of giving real estate developers, banks, and other powerful players in the housing industry significant public subsidies and tax relief to incentivize the buildout of affordable housing. Cities like this approach because they do not carry the bulk of the cost of the subsidy in their budgets. 2' Inclusionary Zoning Hurts More Than It Helps. 28 The Economic Implications of Housing Supply. 2018. Edward Glaeser and Joseph Gyourko. 29 Emily Hamilton: Inclusionary Zoning and Its Exclusionary Effects. 2022. Podcast. Vitt s: atlanta.urbanize.cut ost emul .Ihamilton .unciu.sionar conun ..and-it.s-exciusionar ..effects k ......./......................................................................................Y�.p............../...................y............................................................................................y..........................g..................................................................................._y................................ 30 Inclusionary Zoning Hurts More Than It Helps. 31 Examining the Effects of Policy Design on Affordable Unit Production Under Inclusionary Zoning Policies, 2022. Wang and Balachandron. Page 9 of 16 incomes targeted to very low-income households. Longer affordability lengths did not impact production. Higher unit production is also associated with population growth and overall housing growth. 12. In 2021, Oregon legislators ended single-family zoning in many of the state's localities, followed closely by California in the same year. At the local level, Minneapolis policymakers replaced single-family zoning with triplex zoning in 2018, followed by Portland in 2021. Since then more states and more cities are considering these changes including many in Washington. • Instead of picking specific areas to concentrate new high-density housing as with targeted upzoning, ending single-family zoning allows the next increment of density— typically some version of duplexes through fourplexes – on nearly every residential lot.32 The resulting changes in development patterns have been referred to as density light, blanket upzoning and mass upzoning. Ending single family zoning policies are also closely tied to missing middle housing policies (see Point 1 above) and ending exclusionary zoning policies. • Allowing infill housing development in places where infrastructure already exists is an important strategy to bring down costs. According to Washington's Department of Commerce, (DOC) missing middle housing (or infill housing) is the least costly way to do housing development. They have been strong supporters of the state's missing middle legislation. • Allowing infill housing in single family zones would bring workers closer to jobs and essential services, reducing traffic and climate impacts. The cost of getting to work would also be reduced (especially of gas prices are high). Transportation is a significant hidden cost in housing affordability.33 • Some critics of ending single-family zoning argue that allowing housing development everywhere will trigger a speculative frenzy with greedy developers transforming the character of our neighborhoods and towns. Proponents of infill and density counter that this is a misperception of how zoning affects land values in that the value of a piece of property is determined by its development potential, not zoning. Upzoning in targeted areas, all else equal, will increase property values, especially if there is pent-up demand for the new uses, but upzoning every property will not substantially increase the value of every property.", 31 " What Would Mass Upzoning Actually Do to Property Values? 2022. Daniel Herriges. https://www.strongtowns.org/jou rnal/2022/1/18/what-would-mass-upzon ing-actually-do-to-property-values 33 Housing Underproduction in the United States. 2022. Mike Kingsella and Leah MacArthur, editors, Up for Growth. . IhtLis.;,// u. Fq.irgirowllh.or Ja ply-tlhe viision/Iho�.usin underprcadua ki in/ 34 For the lengthier argument, see What Would Mass Upzoning Actually Do to Property Values? 35 Much has been made of the jump in land prices in Langley following their recent zoning code update. As an economist, I was surprised that some have found this "unintended consequence" a surprise. Every study I have read on zoning impacts on affordability predicts a rise in land values. It's basic economics —when you increase the value of land by allowing more uses on it, prices will reflect this value increase. (It's important to keep in mind that value is not the same as price.) On the flip side of a zoning change, when land owners (many, not all) predict a change in land uses, they will hold onto land until they can get more for it. However, this land storing also leads to market distortions of underutilized land with no housing on it. There is also the reality that, on a personal level, most home owners appreciate a rise in their home's value. It is a standard tenet of community development that we protect home values and community character by disallowing development that might decrease value. Page 10 of 16 • These reforms are too recent to evaluate their effect on new housing construction and affordability. However, initial indications are they do not produce rapid changes in housing production for the reasons cited above in Point 8. • Kuhlman who performed a very early study of the impact of Minneapolis' changes on housing prices. Argues that the price of some parcels must rise in order to encourage redevelopment and produce more affordable housing options for the city as a whole.36 • Ending single-family zoning in June of 2022, Spokane City Council unanimously approved permitting construction of multi -family homes on lots previously zoned for single family residences with next to no opposition after a year long trial. The change opened the way for community -driven, small-scale projects, for example, allowing a local foundation to move forward with its plans to provide more free housing for families who travel to Spokane so their children can receive treatment for cancer.37 13. State law (RCW 36.70A.070)38 requires cities to identify local policies and regulations that result in racially disparate impacts, displacement, and exclusion in housing. • Cities are required to 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." • Anti -displacement policies are a new area of focus in housing policy, especially for small cities. 14. There is the challenge of engaging the community, particularly those most impacted, in a process that is complex and that can be intimidating. At the same time, we know any lasting solution requires the engagement of the community in the discussion, especially those most impacted. • Research shows that members of the public who speak at hearings are not representative of the population as a whole, have a status quo bias, and often lack an understanding of the benefits of new housing.39 Evaluating Potential Zoning Change Strategies Historically, this has led to segregation both by class and race. I have been frustrated by the land price increase in Langley being used to argue against zoning density changes in single-family zoning in Port Townsend for a number of reasons but mainly because it ignores the potential for community -driven development, such as a nine -unit tiny home development in Langley specifically built as workforce housing. See the story of this development along with Langley's zoning changes in No place for workers to live? Whidbey Island town aims to fix that. 2022. Joshua McNichols, Libby Denkman, and Sarah Liebovitz. KUOW. Ihtt .s../w..wkuo.wor /.s.......oir.e.....s.../.i.n.....o.....-... IP.M..a.....ce...-..ff.o.r.-workers-tojive -wlh.iid.be .island.town-aiims-to-Fiix-that .................................................................................................. ..-...................................................................................................................... 36 Upzoning and Single -Family Housing Prices. 2021. Daniel Kuhlman. 3' Zoning Changes Help Families. 2022. Jeff Humphrey.Ih.1.1s./rruy.._sakrae%U:r.a.r/ru.�nr.ss.LUis. ru.g.-c h a nges.::_h_ �.�a.- ur�.0 I .0 e_s 31 .h::.p..p.p?ut.=36o:dQ.::G1Q. 39 Zoning by a Thousand Cuts. Page 11 of 16 The following is an evaluation of different approaches to changing the zoning code based on the research findings above. My review of the research focused on scholarly work examining the impacts of zoning changes on displacement, housing availability and affordability and that of policy institutions focused on inclusionary economic development. Of the latter, I found the work of Up for Growth, the Democracy Collaborative, and the Urbanity Project, Mercatus Center of George Mason University (led by Emily Hamilton) to be of particular merit.40 While the evaluation is grounded in an intensive review of the research, there is a danger both to over -simplifying the complexity of the Housing Affordability Crisis and extrapolating from others' experience to Port Townsend. Moreover, crafting a strategic approach to the Housing Affordability Crisis is a systems change problem that will take patience and courage because there are no quick fixes and we can't control all the outcomes. It will take all of us as a community to address the problem -- which means encountering differences in a way that is respectful and supportive of others' intentions. We are also trying to address the harms of housing patterns that has evolved over a century bound up with people's ideas of the American dream. These harms will not cease over night because development patterns cannot be changed overnight: displacement will continue to occur; people will still be competing for a limited supply of homes for some time to come; and housing prices may go up or down (in the short term) depending on market forces we don't control but over the long term, they will continue to rise — hopefully, just not quite as fast — along with the cost of living. This is why a focus on housing underproduction through the lens of equity is so important. As Up for Growth puts it, "The good news is that we can choose to adopt a new approach to building homes that addresses not only availability and affordability, but also has positive impacts on equity and inclusion, economic vibrancy, and climate change."" Finally, any system change comes with transition costs. Who bears these costs is of major concern in making any change, large or small. For too long, the most impacted have been those least able to afford it. Without centering those most impacted in developing strategy, we will continue to perpetuate the problem that gave rise to this crisis in the first place. With these caveats in mind, I evaluate four strategies for (re)structuring the zoning code using principles for cultivating an inclusive, participatory and sustainable community as evaluation criteria. These principles are: • Provide a level playing field by increasing access to land and housing for all income levels impacted by the housing crisis; • Minimize displacement by centering racial and economic inclusivity in all development; 40 See Housing Underproduction in the United States; Community Control of Land and Housing; and Evaluating Housing Affordability Policies in Your Area. " Housing Underproduction in the United States. 2022. Mike Kingsella and Leah MacArthur, editors, Up for Growth. ,h.t.t.ps.( u. f r...ir y lh... irg�a.ip.ip.11.y.:the.:visiica_n. hpusi:n.g.-uin r r ci_u ii_ r7/ Page 12 of 16 • Foster greater community engagement through ensuring democratic participation and holding open, transparent and honest community conversations with the intent to build trust; • Promote the development of local capacity to provide for our community's needs: and • Catalyze public resources to aid in building community wealth. The four strategies are not mutually exclusive. As the zoning code updating process unfolds, it likely will involve some mix of elements from more than one of these strategies. For example, while most of the Planning Commission's discussion has been focused on eliminating barriers to small scale development, there is a need to revisit multi -family zoning rules as well. Further, the success of any strategy requires careful detail design to minimize negative impacts such as displacement. The four strategies are: Strategy 1– Do Nothing as the Market Will Take Care of Itself: This is the least viable strategy option as the Affordability Crisis will only worsen under a business -as -usual strategy. In fact, the Affordability Crisis is a result of the market itself shaped by zoning rules where only some people have access to affordably priced housing. This option also disregards the potential of community -driven small-scale efforts to contribute to housing development. In short, the playing field is heavily tilted to large, outside developers. Strategy 2 – Incrementally Change the Zoning Code but Leave Single -Family Zoning Intact: This strategy has the potential to remove some of the barriers to building lower cost housing and Port Townsend has already passed incremental zoning changes such as lowering minimum parking requirements and permitting zero -lot line construction with minimal opposition, but leaving single-family zoning intact would make community -driven, small-scale developments such as duplexes and triplexes prohibitively expensive for those who cannot afford the land. While this approach would allow room for continued community engagement in deciding which changes to make, it does not ensure broad based participation or center those most impacted. To date, we have not seen a lot of participation in public discussion of zoning changes beyond housing activists. Yet, many in Port Townsend favor density for other reasons such as preserving open space, reducing climate impacts, and fostering social inclusion. We need to outreach to these groups as well. The main challenge for this strategy is how it evades addressing the discriminatory impacts of single-family zoning rules. As Dan Bertolet has written, "The best time to stop exclusionary zoning and all its harmful effects would have been a century ago. The next best time is now—that is, in the 2023 Washington legislative session. Passing the middle housing bill would ... undo the ugly historic legacy of zoning designed to segregate.1142 Strategy 3 – Incentivize Developers to Build More Affordable Housing through Targeted Upzoning: Inclusionary zoning can result in the production of more affordable housing for 42 https://www.sightiine.org/2023/01/03/washingtons-2023-middle-housing-bill-explained/#fn-1 Page 13 of 16 low and moderate income residents (up to 100% AMI). It can also result in buildings and neighborhoods that have a mix of income levels, without having to rely on taxpayer funds to provide them. However, density bonuses depend on keeping exclusionary zoning in place since it is exclusionary zoning which provides their value. The research on incentives to developers to build more affordable units, primarily density bonuses, shows that they have exclusionary effects and increase median home prices over time. Further, it is difficult to see how inclusionary zoning could be extended to subsidize workforce housing development (up to 150% AMI) as this would require even higher end development. Strategy 4 — End Single Family Zoning: Zoning rules intended to protect single-family zoning are a key driver of rising housing prices. While small scale infill development is unlikely to meet the need for housing sufficient to need any time soon, it does provide an option for those with initiative and those wanting smaller scale housing. Infill development of this type is a key strategy of not only lowering the cost of housing (for example, it is possible to build a permittable tiny home, for example, for $100,0000), but also reducing housing underproduction which dramatically affects the price of housing. With programs to support potential homeowners such as that developed by the Housing Solutions Network to support homeowners interested in adding ADUs, production could be accelerated. Small scale community projects have also led to greater community engagement in addressing the impacts of the housing crisis through projects such as Community Build. Changes to the zoning code will affect not only what type of housing gets developed and how much of it, but also how and where it gets developed and who does the development with profound implications for who housing development serves. This is why it is so important to have a systemic understanding of zoning changes in the context of market dynamics. In addition, whatever Port Townsend's chosen strategy to increase housing production through zoning updates, it needs to be embedded in a larger housing plan that makes it easier and less expensive to build more housing, prioritizes housing as basic need rather than a profit opportunity, minimizes displacement, and addresses the injustice of exclusionary zoning. Some of the non -zoning elements of such a plan would include: • A better picture of how much housing is needed for different housing income segments as required by state law for our next Comprehensive Plan update. This will help to ensure that we target resources where resources are needed most. • Permitting that empowers community -driven small-scale housing development. Every time we complicate zoning law, it has repercussions for who can afford to meet those requirements. This is where permitting enters. Right now the rules and permitting process favor large-scale projects by outside developers. We need to make it easier for local builders and the community to advance community -scaled projects. One thing to consider is revising the permitting process to meet the needs of different types of builders and developers as suggested by Eric Peterson. • Publicly -supported programs that will accelerate workforce housing development. This goes beyond allowing the right thing to be built to supporting the right kind of Page 14 of 16 development. Let's expand on Housing Solutions Network's program to support ADU development with like programs to support housing conversions, co -buying opportunities, and non -market development options such as housing cooperatives and the Olympic Housing Trust. • Create a comprehensive strategy to help keep low-income and fixed-income single- family homeowners in place. Examples of anti -displacement strategies developed by Puget Sound Sage include: programs to defer property taxes until sale of property; program to fund and develop a canvas to inform homeowners of their alternatives and tradeoffs to selling their homes; land -use and development strategies to allow homeowners to stay in their homes, but leverage the unused land on their property to both develop new affordable housing AND help homeowners pay property taxes and maintenance costs.43 Support for rent stabilization policy at the state level. Towards Community -Driven Housing Development This paper represents a first attempt to synthesize a vision of a caring, inclusive, participatory, and sustainable community built on caring relationships and locally -rooted, broad-based ownership of place -based assets with an analysis of Port Townsend's housing crisis and what we can do about it as a community. The next six to eight months will be critical in determining the City's response to the Housing Affordability Crisis for decades to come, first through zoning code updates and then through a Comprehensive Plan update along with further updates to the zoning code. Next year (2024), the city will also be helping to develop a new 5 Year Plan to End Homelessness in cooperation with the county, housing service providers, community housing activists and people with lived experience of homelessness. As remarked above, changes to the zoning code will affect not only what type of housing gets developed and how much of it, but also how and where it gets developed and who does the development —with profound implications for whom housing development serves. So what strategy should inform our zoning code and Comprehensive Plan updates? I strongly believe that we — as a community — need to claim the future of housing development as ours to determine. I further believe that a visionary and systemic housing plan will embrace community -centered housing development as the way forward, resulting in housing that is: • Community -scaled: Its physical form is scaled to foster high-quality public spaces consistent with the historical scale of Port Townsend's neighborhoods and building stock. 43 htt s: neA i. .or uari anist-ine�nrs how slho�lld-seatLlle-factor-e uaiit-iinto-aa zone-dejsiion .......��.........................................../.......................................................................................................................................................................................q............Y.............................1........................................................... Page 15 of 16 • Community -inclusive: Prioritizes housing as a basic need rather than a for-profit opportunity by providing sufficient housing for all incomes and redressing for the historical injustices of exclusionary zoning. • Community -driven: Puts resources (and decision-making) into the hands of the community and not outside developers. • Community -owned: Fosters community wealth by providing opportunities for the community to invest in itself through community -owned housing. • Community -controlled: Encourages participatory and democratic local governance of housing development and our housing commons. To this end, I strongly advocate for a strategy that restructures the zoning code to: (1) make it easier and less expensive to build lower-cost housing, including missing middle housing (that is, more units on less land in what are now single-family zones); and (2) includes policy measures that would require larger developments to designate a portion of new housing units as affordable for households making low to moderate incomes. This strategy aligns with the Missing Middle Housing bills, HB 1110 and SB 5190, now before the legislature and best fits the vision of community -centered housing development advanced here. I also strongly agree that we need a larger housing plan which makes it easier and less expensive to build more housing. A just and inclusive plan would prioritize housing as a basic need rather than a profit opportunity, minimize displacement, and address the historical injustice of exclusionary zoning. Such a plan would include goals for housing production by income level; permitting that empowers community -driven, small-scale housing development; anti -displacement policies and programs; and publicly supported programs to accelerate non - market development options (e.g. CLTs and cooperative housing) and workforce housing development, including missing middle housing options. I invite anyone and everyone who is interested in advancing this vision to contact me to discuss how we can make this initial effort here a collective one. A next step will be to develop a narrative representing the vision of community -centered housing development in an immediate and accessible way. I humbly acknowledge that not everyone wants to read 15 pages of policy research. I look forward to hearing what you have to say and want to contribute, committed to an open heart and mind. Thank you for considering joining with me in this vision. Page 16 of 16 From: mweston(cJ)olyoen.com To: PublicComment(cDcityofpt.us Subject: Public Comment for Joint City Council PC Meeting on 2/13 Date: Sunday, February 12, 2023 2:40:24 PM Dear City Council Planning Commissioners, I strongly support efforts made by the City to increase housing supply, especially housing that will meet the needs of our growing workforce. As a resident who relies on the vital services that our local hospital and emergency service providers offer, it is our job as a community to ensure that local nurses, firefighters, EMTs, and others have affordable housing options. The health of our community relies on our ability to attract, retain, and grow our local workforce. Please ensure your decisions will produce more affordable for our workforce! regards, mike Weston From: Peter Bonvun To: PublicComment(cDcityofpt.us Subject: Public Comment for Joint City Council + PC Meeting on 2/13 Date: Friday, February 10, 2023 7:52:54 PM Dear City Council + Planning Commissioners, I strongly support efforts made by the City to increase housing supply, especially housing that will meet the needs of our growing workforce. As a senior resident who relies on the vital services that our local hospital and emergency service providers offer, it is our job as a community to ensure that local nurses, firefighters, EMTs, and others have affordable housing options. The health of our community relies on our ability to attract, retain, and grow our local workforce. Please ensure your decisions will produce more affordable for our workforce! Social housing, such as being considered in Seattle, is an option worth study. Sincerely, Peter Bonyun 990 22nd St From: Connie Ross To: PublicComment(cDcityofpt.us Subject: Public Comment for Joint City Council + PC Meeting on 2/13 Date: Friday, February 10, 2023 8:50:41 PM Dear City Council and Planning Commissioners, strongly support efforts made by the City to increase housing supply, especially housing that will meet the needs of our growing workforce. I have required medical attention several times over the past 3 years and, while I have not once witnessed any unprofessional or complaining healthcare workers, those employees that have stuck it out these past 3 years without giving up and leaving have been left with a heavy burden. It is not just the workforce that cannot find a home here to take a needed position at the hospital, but those that remain are working harder than ever without a visible change in their situation. The health of our community relies on our ability to attract, retain, and grow our local workforce. Please, turn every rock to ensure your decisions will produce more affordable housing for our workforce. Our remaining healthcare workers are in great need of more staffing and we all are depending on your creativity, persistence and help. Sincerely, Connie Ross Port Townsend From: Noreen Mccarron To: PublicComment(cDcityofpt.us Subject: Public Comment for Joint City Council + PC Meeting on 2/13 Date: Friday, February 10, 2023 9:27:34 PM Dear City Council + Planning Commissioners, I strongly support efforts made by the City to increase housing supply, especially housing that will meet the needs of our growing workforce. As a resident who has lived here since 1975,and worked at the hospital for 33 years , I know how much we need the services our local hospital and emergency service providers offers., It is our job as a community to ensure that local nurses, firefighters, EMTs, and others have affordable housing options. The health of our community relies on our ability to attract, retain, and grow our local workforce. Please ensure your decisions will produce more affordable for our workforce! Sincerely Noreen McCarron Sent from my Whone From: Rosemary Sikes To: PublicComment(cDcityofpt.us Subject: Public Comment for Joint City Council + PC Meeting on 2/13 Date: Saturday, February 11, 2023 6:23:51 PM Dear City Council members and Planning Commission members, T read the Planning Commission Memo to City Council for the Feb 13 joint meeting. The memo is well thought out and researched. Please move forward with this plan as soon as possible. We desperately need health care workers, teachers, marine trades workers and more. We have the jobs but we have no housing where these workers can afford to live. T am 69 and broke my left elbow the last Sunday in January 2023. T am very concerned services will be affected by our lack of affordable housing. Sincerely, Rosemary Sikes 1709 Gise St, PT From: ann weston To: PublicComment(cDcityofpt.us Subject: Public Comment for Joint City Council + PC Meeting on 2/13 Date: Sunday, February 12, 2023 2:37:29 PM Dear City Council + Planning Commissioners, I strongly support efforts made by the City to increase housing supply, especially housing that will meet the needs of our growing workforce. As a resident who relies on the vital services that our local hospital and emergency service providers offer, it is our job as a community to ensure that local nurses, firefighters, EMTs, and others have affordable housing options. The health of our community relies on our ability to attract, retain, and grow our local workforce. Please ensure your decisions will produce more affordable for our workforce! From: Forest Shomer To: PublicComment(acityofpt.us Subject: Public Comment for Joint City Council + PC Meeting on 2/13 Date: Sunday, February 12, 2023 9:26:18 PM Dear City Council + Planning Commissioners, I'm interested in encouraging what might be called "Reinhabit Uptown." In more than 40 years' residency in Port Townsend, I have lived in several Uptown locations and in several different capacities: as single-family head -of -household; as single adult in a single Victorian shared household (4 or more adults); and as sole occupant of an ADU. Currently I live in detached housing on a 2 -house double lot just beyond Uptown toward Fort Worden; for many years I lived in the same neighborhood in a small single-family house on a 5000 s.f. lot. Earlier in life I lived in an urban collective in Seattle that afforded housing to 12-16 adults (ages 18-45) in two semi -attached large homes in a fully built -out neighborhood. Comparing aspects of that residency with the Uptown PT I know (and love), I see the seldom -realized potential for such housing either as intentional collectives (as we were in Seattle) or as some contemporary version of the boarding-house or cooperative. Such housing addresses the well- known need here of people in the early years of employment; in service jobs; perhaps also those who want to live here for 6 months or a year without home -buying, to see if it is the right place for them. I scanned through the report of the Dec. 15-16 City meetings and didn't see this type of option named, yet I observe daily that Uptown is underpopulated compared probably with any historic period of the town in the past 150 years. I am thinking mainly of two things: reinhabitation of older homes of 4 bedrooms or more for group living, where perhaps currently there are fewer than four residents (related probably) or only seasonal residents making Uptown housing for weekend transiency a less -viable or non-viable option. Uptown is effectively the one part of town that may have a fair number of vacant bedrooms and provides walking -distance housing to jobs, shopping, bus transit, ferry, library, community center, churches, waterfront....basically, to village -style living where a personal motor vehicle is not a requirement. Walkability. Sincerely, Forest Shomer