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Home My WebLink About022725 Special Sesion City Council (Joint Meeting with Planning Commission) PORT TOWNSEND CITY COUNCIL SPECIAL SESSION AGENDA CITY HALL COUNCIL CHAMBERS, 540 WATER STREET Special SessionMeeting City Council to joinPlanning Commission 6:30 p.m. 27, 2025 Join virtually at https://zoom.us/j/99902251731 enter the 9 digit Webinar ID 99902251731 Join by phone in listen-only mode – +12532158782,,99902251731# Live stream (listen only): https://cityofpt.us/citycouncil/page/agendasminutesvideos Submit public comment to be included in the meeting record to: https://publiccomment.fillout.com/cityofpt If you are experiencing technical difficulties, please attempt all methods listed above before reporting any issues to: clerksupport@cityofpt.us I.Call to Order II.Roll Call III.Acceptance of Agenda IV.General Public Comment (For items not on agenda- Limited to 5 minutes per person. Please begin by stating your name and address. General public comment is not a public hearing. Comments made during this time will not be part of a hearing record.) V.New Business: A.Reviewing Current Comprehensive Plan Goals and Policies Proposed Action: Discussion Only. No action requested. Review tools supporting the Periodic Review and discuss the draft document grouping policies by topic i.Staff presentation ii.Public Comment iii.Council and Planning Commission discussion iv.Attachments: a.Presentation b.Draft Housing Needs Assessment c.Draft LCA Income Band Analysis d.Draft Adequate Provisions Checklist e.Draft Policy Bundling Document VI.Old Business: (None) VII.Upcoming Meetings: Thursday, March 13, Planning Commission Meeting continuing discussion of tools for the Comprehensive Plan, including existing goals and policies in relation to goals set by the preliminary docket. Wednesday, March 26, Public Workshop on implementation options Thursday, March 27, Planning Commission & City Council Joint Meeting on draft goals and policies related to housing and density, and on implementation options. Thursday, April 10, Planning Commission Meeting continuing discussion of existing and draft goals and policies in relation to goals set by the preliminary docket VIII. Communications IX. Adjourn To which Board, Commissi on, or Council are you submitting public comment? (If a Board, Commissi on or Council is not chosen, your comment Is your Do you will written work, live, default to If Agenda public If so, what or own a the next item, commenis the business City Type of please t for a subject of Last Name Email in City Council public state which Public comment Written public comment is limited to 2350 characters (with spaces). If you exceed this amount, you will be Public the Public Limits?commentone.Hearing? updated(optional)(optional)packet)unable to submit this form until your comment is 2350 characters or less.Hearing? Mon Feb 24 2025 10:48:00 GMT- 0800 Live in (Pacific Port Planning Agenda tax increase If you increase taxes on vacant land you will create more density, removing green spaces that give the town room to breathe. I do not Standard Townsend Commissiitem on vacant own any extra lots but I know people who have bought them to prevent them from being built on and I am supportive of them doing so. Time)Tony G.City Limits on specificland We need the space and so does the wild life. Don't turn this place into what you have left behind to come here. Wed Feb 19 2025 08:32:00 GMT-Own a Good morning I own a business downtown and I am concerned about this parking proposal as it would be a barrier for my workers 0800 Business $300 a month is a lot of money to pay for parking if you have a full-time job even if you are part-time $150 a month is a lot of money out (Pacific in Port Planning General of someone’s pocket in this economy and especially our working class who’s already really struggling to survive in this town? I Standard Townsend Commissipublic Parking absolutely oppose this proposal, especially seeing as it doesn’t have any real point. The money is just Port being poured back into the Time)Chris mCity Limits on commentproposal program? That’s awfully silly.No Wed Feb 19 2025 08:30:00 Hello, I am a single mom of three I work downtown. I would not be able to work downtown anymore. If you started charging me two GMT-dollars an hour five days a week that would be an additional $320 a month for me just to go to work That would be the difference 0800 Work in between my children being comfortable or allowing them to attend soccer camp! Or anything fun for then. Furthermore, I work in a (Pacific Port Planning General restaurant and I really don’t think that anyone I work with can’t afford that expense. My employer already has a hard time finding Standard Townsend Commissipublic employees with what they’re paying, and the economy is already struggling in lots of ways in this country we cannot afford eggs and Time)SandraCity Limits on commentParking now you want to add this parking fee. I think this is a terrible idea please reconsider.No Wed Feb 19 2025 08:28:00 GMT-I’d like to let you know that I oppose your parking proposal deeply. Two dollars an hour or something similar during Monday through 0800 Work in Friday. Idea it’s already virtually impossible to find workers who can work out here for the rate that we’re able to pay. There’s no way I’ll (Pacific Port Planning General Down town be able to staff with $320 a month added to my workers expenses furthermore without any proposal for this money to go back into the Standard Townsend Commissipublic parking community, I find it as a pointless and stressful thing to put the community through. That is an expense that the working class cannot Time)Mike rCity Limits on commentproposal afford and thus a terrible idea. No Sat Feb 15 2025 As a lifelong resident of Port Townsend, local business owner, and advocate, I would like to strongly condemn the proposed paid 08:22:00 parking program outlined for downtown in the Feb 10 council meeting. Much of what once made our town unique and accessible to a GMT-Own a diverse range of artists, craftspeople, small business owners, and maritime workers is slipping away due to outrageous housing prices 0800 Business which have unfairly tipped the scales in favor of wealthy retirees who can afford to “pay to play” in Port Townsend. Adding paid parking (Pacific dylanquarlein Port Planning Agenda will hardly impact them, but it WILL further burden working and lower income families and individuals who also call Port Townsend Paid Standard Dylan s@gmail.coTownsend Commissiitem Paid parking home. I urge you to seek revenue elsewhere, as this will negatively impact the lives of those already juggling financial burdens and parking in Time)Quarles mCity Limits on specificdowntown needs. Keep downtown open and hassle free. Yesdowntown Fri Feb 14 2025 23:04:00 GMT-Own a 0800 Business (Pacific Brian@EcoCin Port Planning Agenda In regards to As someone who spends a significant amount of time downtown if implemented paid parking will most definitely deter me from Paid Standard Brian leanWA.coTownsend Commissiitem paid parking coming downtown. Paid parking is stressful and will harm local businesses by discouraging people from visiting due to the added cost, Parking Time)ColemanmCity Limits on specificdowntown especially when this town's charm relies on a sense of community and easy access to shops without the burden of parking fees. YesDowntown About the charging to park downtown proposal: What is the purpose of this plan? Who will benefit monetarily? Fri Feb Did you even talk to the business owners? 14 2025 Was this ever brought up to the residents? 10:20:00 All the responses I have seen on social media suggest people will no longer go downtown to shop and eat. I know I will stop. GMT-Also, for those that do, how are folks that don't use that app supposed to pay? As I have been traveling I have run across several towns 0800 Live in that are using an app; some have a phone number you can call, some have people leave and not shop there. (Pacific Port Planning General And where are you getting the $20k from, if not our taxes? We the tax payers should be able to vote on this unless you have a free grant Standard Sheila Townsend Commissipublic pilot parking (but better to put your energies into getting street repair grants). Time)Long City Limits on commentfeesNo Fri Feb 14 2025 09:16:00 GMT- 0800 Live in (Pacific chuchukingPort Planning General Standard Marcy 05@gmail.cTownsend Commissipublic I think this is a horrible idea for locals and people who work downtown and it’s going to be so expensive to park. I disagree with having Disagree Time)mineromCity Limits on commentpaid parking. Yeswith this Upqjdbm!cvoemjoh Sfdpodjmjbujpo Port Townsend Comprehensive Plan Housing Needs Analysis DRAFT 2025-02-17 Contents Introduction.....................................................................................................................................................................................2 Community Profile........................................................................................................................................................................2 Population Characteristics......................................................................................................................................................2 Household Characteristics......................................................................................................................................................4 Special Housing Needs.........................................................................................................................................................17 Workforce Profile.........................................................................................................................................................................20 Local Workforce Characteristics.........................................................................................................................................20 Jobs to Housing Ratio............................................................................................................................................................24 Employment Trends & Projections...................................................................................................................................24 Housing Supply............................................................................................................................................................................25 General Housing Inventory..................................................................................................................................................25 Housing Market Conditions................................................................................................................................................31 Special Housing Inventory...................................................................................................................................................33 Gap Analysis..................................................................................................................................................................................33 Gaps in Affordability...............................................................................................................................................................33 Gaps in Housing Meeting Other Needs..........................................................................................................................34 Land Capacity Analysis..............................................................................................................................................................35 Key Findings...................................................................................................................................................................................37 610 SW Alder Street, Suite 1200, Portland, Oregon 97205 | 503.222.1600 Introduction This reportprovides an inventory and analysis of existing and projected housing needs by income level as provided by the Department of Commerceand Growth Management Steering Committee.This analysis supports the City of Port TownsendÔs 2045 Comprehensive Plan update by identifyingthe number and type of housing units neededto manage projected growthin the community. Community Profile Population Characteristics According to theWashington Office of Financial Management(OFM), as of 2023 there were an estimated 10,330 residents in Port Townsend. This represents an increase of nearly 182residents since the 2020 Census (1.8percent growth over three years, 0.6percent average annual growth).Over the same period, the countyÔspopulation grew more slowly, by 1.4percent (0.5percent average annual growth), and the state grew at a more robust 3.2percent (1.0percent average annual growth). In the last Comprehensive Plan from2016, it was noted that population had grown at about one third the rate anticipatedsince the cityÔs prior plan from1996Ðat 0.6percent annually from 1996Ï2015, versus the envisioned 2.5 percent annual growth. The average annual growth rate projectedin the 2016 plan (out to 2036)was for 1.1 percentÐand as of 2023, realizedannualgrowth rates have once again underperformed expectations, at 0.9 percent average annual growth from 2015Ï2023.In order to meet future housing need allocations, it is expected that the city will need to grow at a faster rate in the future than it has in the past. Figure 1. Historic Population Growth in Port Townsend, 1970Ï2023 12,0002.0% 1.8% 10,000 1.6% 1.4% 8,000 1.2% 6,0001.0% 0.8% Population 4,000 0.6% 0.4% 2,000 0.2% 10,330 Average Annual Growth Rate -0.0% 1970198019902000201020202023 PopulationAnnual Growth Rate Source: US Census Bureau Decennial Census via Washington Office of Financial Management (OFM). Port TownsendComprehensive Plan | Housing Needs Analysis Page 2 As shown in Figure 2below, the population of Port Townsend and the county skew significantly older than the state. Port TownsendÔs proportion of population aged 55 and older, at 57 percent, is about double the stateÔs proportion of residents within that age range (28 percent). Figure 2. Age Distribution in Port Townsend with Regional Comparison, 2022 50% 40% 30% 20% 10% 0% Under 55 to 1415 to 2425 to 3435 to 4445 to 5455 to 6465 years yearsyearsyearsyearsyearsyearsyearsand over Port TownsendJefferson CountyWashington State Source: US Census Bureau2022 5-Year ACS, Table S0101. Port Townsendhas a higher share of white (non-Hispanic) residents than the county and state. Just four percent of Port Townsend and Jefferson Countyresidents are Hispanic or Latino, the stateÔs second- largest race or ethnicity group after white(14 percent of the state population). Figure 3. Race and Ethnicity in Port Townsend with Regional Comparison, 2022 4% 4% 4% 4% 9% 5% Pacific Islander alone 14% American Indian alone 6% Some other race alone Black/African American alone 89% 86% Asian alone 66% Hispanic/Latino any race Two or more races alone White alone Port TownsendJefferson CountyWashington Source: US Census Bureau 2022 5-Year ACS, Table DP05. Port TownsendComprehensive Plan | Housing Needs Analysis Page 3 About 93 percent of Port Townsend residents speak English in their homes, similar to Jefferson county (94 percent English speakers), but much higher than the stateÔs 80 percent English speakers. The most common language spoken at home other than English inPort Townsend is Spanish, followed by other Indo-European languages. Figure 4. Languages Spoken at Home in Port Townsend, 2022 3% 4% Only English Spanish Other Indo-European Asian/Pacific Island 93% Other Language Source: US Census Bureau 5-Year ACS, Table S1601. Household Characteristics As of the 2022 American Community Survey, there were 5,371 households in Port Townsend, resulting in an average 2022 household size of 1.85. This is lower than Jefferson CountyÔs 2022 average household size of 2.04 and the 2022 statewide average of 2.58. This correlates with the larger share of older residents seen above in Figure 2. A detailed breakdown of household size is shown below in Figure 5. Almost half of households have one person in Port Townsend, compared with 35 percent of county households and 27 percent of state households. Figure 5. Household Size in Port Townsend with Regional Comparison, 2022 1-person household2-person household3-person household4+ person household Port Townsend 45%37%9%10% Jefferson County 35%44%10%10% Washington 27%35%15%22% Source: US Census Bureau 5-Year ACS, Table S2501. Port TownsendComprehensive Plan | Housing Needs Analysis Page 4 While renters tend to have smaller household sizes, with 77percent living in one-or two-person households, just 19percentof all Port Townsendhouseholds have three or more residents, suggesting a need for small units for both owners and renters in Port Townsend. Figure 6. Port Townsend Household Size by Tenure Ownership HouseholdsRenter Household 1-Person 1,515 885 2-Person 1,636 323 3-Person 305 178 4+-Person 353 176 Source: US Census Bureau 5-Year ACS, Table S2503. Figure 7below shows data on the makeup of Port TownsendÔs households. Overall, 47 percent of households are family households, defined as two or more related family members living together in any combination. Of these, most are married couples. In Port Townsend, about one in six households have children, noticeably lower than the 30 percent statewide. When combined with the data above showing an older population with smaller households, this suggests a need for small, accessible units. Figure 7. Household Types in Port Townsend with Regional Comparison, 2022 Port TownsendJefferson CountyWashington Share TotalShareTotalTotalShare Family households 2,509 47% 9,161 58% 1,910,770 64% Married-couple family 2,089 39% 7,829 49% 1,482,230 50% Other family 420 8% 1,332 8% 428,540 14% With children under 18 years 797 15% 2,221 14% 881,527 30% Nonfamily households 2,862 53% 6,698 42% 1,068,502 36% Householder living alone 2,400 45% 5,611 35% 803,383 27% Householder living alone and 65 years and over 1,551 29% 3,377 21% 313,547 11% Total Households 5,371 15,859 2,979,272 Source: US Census Bureau 5-Year ACS, Table S2501. Port TownsendComprehensive Plan | Housing Needs Analysis Page 5 Jefferson County nonprofit Housing Solutions Network (HSN) conducted a Community and Employer Survey to gain local data on housing, particularly for workers. The Community Survey received responses from 957 people, while the Employer Survey heard from 39 employers representing over 2,085 workers. Community Survey results reported that 30 percent of Jefferson County respondents do not feel secure in their current housing. Factors including income, cost burden, and migration hinder security. The number of households with children has changed over time. Census Data shows that while the population of Port Townsend is generally increasing, the share of households with children under 18 is generally decreasing. Aging does not account for all this decline, indicating that families with children are decreasingly likely to live in the City. In 2010, 17percentof owner-occupied units housed children under 18 related to the householder. The percentage was 22percent for renter-occupied units. By 2022, that percent had dropped dramatically for owner occupied units, only 11percent. Renter-occupied units did not have as defined a pattern, with the percentage of renter-occupied units with children ranging 18percentat the lowest and 26percent at the highest. Renter-occupied units consistentlyhad a higher percentage of families with children. This suggests that rental units are vital for housing families, particularly rental units with more than one bedroom. Figure 8. Percentage of Owner-Occupied and Renter-Occupied Units with Children Under 18 in Port Townsend, 2010-2022 Source: American Community Survey Table B25012 Tenure by Families and Presence of Own Children Port TownsendComprehensive Plan | Housing Needs Analysis Page 6 The higher percentage of households with children living in rental units is particularly important to consider in comparison to the total number of rental versus ownership units. Port Townsend has far more ownership units than rentals, with the number of ownership units increasing and the number of rental units decreasing as rentals are taken out of the market. Figure 9. Total Owner-Occupied and Renter-Occupied Units in Port Townsend, 2010-2022 Source: American Community Survey Table B25012 Tenure by Families and Presence of Own Children Port TownsendÔs median household income is below the county and statewide median household incomes. Since 2010, incomes have increased by about 44 percent, from $41,033 to $59,193 (not adjusted for inflation)Ðclose to the 40 percent increase seen in Jefferson County, but at a slower rate than the state overall (52 percent increase). Households who own their homes in Port Townsendmake almost 50 percent more than renter households, as shown below in Figure 10. Part of this disparity can be attributed to the smaller household sizes seen on average for renters, though this income gap also points to affordability concerns for rental households. Port TownsendComprehensive Plan | Housing Needs Analysis Page 7 Figure 10. Median Household Income in Port Townsend with Regional Comparison, 2022 20132022 $90,325 $64,796 $62,959 $59,478 $59,193 $51,740 $46,320 $43,046 $41,033 $26,060 Port Townsend (AllPort Townsend (OwnerPort Townsend (RenterJefferson CountyWashington Households)Households)Households) Source: US Census Bureau 5-Year ACS, Table S2503. In addition to household income,Figure 11below shows various components of income in Jefferson County (note that this data is not available at the city scale). It shows three categories ÏÑearned incomeÒ from employment, Ñproperty incomeÒ from dividends, interest, and rent on owned properties, and Ñtransfer paymentsÒ which is income received without services provided. This represents social security and disability payments, Medicare and Medicaid payments, food stamps, unemployment insurance, veteransÔ benefits, and similar payments. As shown below, Jefferson County has a significantly lower share of earned income than the state and country, and a higher share of both property income and transfer payments. These higher property incomes may reflect the high costs of housing in the area and the significant profits generated by property ownership. The transfer payments in particular corroborate data discussed elsewhere in this report about the larger than average share of retirees in the County and City. Transfer payments and property incomes have bothrisen as a share of total income in the County over the past two decades, with earned income decreasing from nearly 50 percent of total personal income to 36 percent since 2000. Port TownsendComprehensive Plan | Housing Needs Analysis Page 8 Figure 11. Major Components as a Percent of Total Personal Income in Jefferson County and Comparisons, 2022 The U.S. Department of Housing and Urban Development (HUD) develops a countywide Area Median Income (AMI) for each county and metropolitan area in the U.S. This metric is used to determine eligibility for subsidized affordable housing and is based on the Census-reported Median Household Income adjusted for average household size, so the AMI figure is typically higher than the Census- reported incomes shown above. For JeffersonCounty in 2024, the HUD AMI is $88,300. HUD classifies households into income levels based on percentages of the AMI. ÑExtremely Low IncomeÒ households earn 30percent AMI or less, ÑVery Low IncomeÒ households earn 30-50percentAMI, and ÑLow IncomeÒ households earn 50-80percentAMI. The table below in Figure 12 shows income limits for these three income levels for JeffersonCounty, by household size. Figure 12. HUD Income Limits for Jefferson County, 2024 Persons in Family 12345678 Extremely Low Income $18,900$21,600$25,820$31,200$36,580$41,960$47,340$52,720 (30% AMI) Very Low Income $31,500$36,000$40,500$45,000$48,600$52,200$55,800$59,400 (50% AMI) Low Income $50,400$57,600$64,800$72,000$77,800$83,550$89,300$95,050 (80% AMI) Source: U.S. Department of Housing and Urban Development (HUD). Port TownsendComprehensive Plan | Housing Needs Analysis Page 9 The chart below in Figure 13shows a breakdown of Port TownsendÔs households by tenure (ownership/rental) and by income, as a percentage of AMI. Overall, about 45 percent of households in the city are considered low income, earning 80% AMI or below. However, nearly 63percent of renter households, or 1,195households, are earning less than 80% AMI, and could be eligible for subsidized affordable housing. Figure 13. Household Income (as a percentage of AMI) by Tenure in Port Townsend, 2020 < 30% AMI30-50% AMI50-80% AMI80-100% AMI100%+ AMI Renter 475200520134570 Owner 2503255153901,665 All Households 7255251,0355242,235 Source: 2016-2020 HUD Comprehensive Housing Affordability Strategy (CHAS). HUD uses a measurement of ÑcostburdenÒ to determine when households are spending too much on housing costs. A household is considered to be Ñcost-burdenedÒ if they are spending more than 30 percent of their income on housing, including rent or mortgage and utilities. A household is considered Ñseverely cost-burdenedÒ if they are spending more than 50 percent of their income on housing. Figure 14below shows Port TownsendÔshouseholds broken down by cost burden and tenure. Overall, 33percent of households are cost-burdened, and 18percent are severely cost-burdened. Renters face higher levels of cost burden, with abouthalf of renter households spending more than 30 percent of their income on housing, compared toapproximatelya quarter of homeowners. This shows a need for more affordable rental housing in the city. The Housing Solutions Network survey found that 55 percent of 574 respondents who both live and work in Jefferson County were cost-burdened, spending more than 30 percent of their income on housing. About 15 percent of respondents were severely cost-burdened, spending more than 50 percent of their income on housing costs. Of this subset of survey respondents, about 14 percent said they were considering leaving Jefferson County because of housing costs or availability. These survey responses Port TownsendComprehensive Plan | Housing Needs Analysis Page 10 both corroborate the HUD data shown below, as well as showing some of the effects of the high level of cost burden seen in Port Townsend and across Jefferson County. Figure 14. Cost Burdened Households by Tenure in Port Townsend, 2020 Severely Cost BurdenedCost BurdenedNot Cost Burdened All Households 18%15%66% Renter occupied 25%23%52% Owner Occupied 15%11%75% Source: 2016-2020 HUD Comprehensive Housing Affordability Strategy (CHAS). When analyzed by household income, Port TownsendÔs lower-income households face much higher rates of cost burden. Figure 12 depicts the number of households in 2016 and 2020, separated by income bracket, and how many households at each income level are cost-burdened. The figure shows that 555 of Port TownsendÔs 690 extremely low-income households (earning 30 percent AMI or below) are cost-burdened, and the majority of those are severely cost-burdened (this conflicts with the 725 <30percentAMI households reported in Figure 10, which includes 35 households with no income). Most very low-income households earning under 50 percent AMI are also facing cost burden, and more than half of low-income households earning 50 to 80 percent AMI are also spending 30 percent or more of their income in housing costs. Comparing these figures to data from 2016 shows that over this five-year period, Port Townsend has seen an increase in cost burden for households at 80percent AMI and under, and concerningly, a loss of households overall for these lower-income brackets, contrasted with an increase in higher-income bracket households. This data shows the need for subsidized rental units and other affordable housing serving lower-income householdsÐwho are spending too much on housing, and being displaced. While the number of cost-burdened households earning 80-100 percent AMI have decreased, it is difficult to determine if this is due to the 2016 householdsÔ incomes increasing or if the 2016 households are now in a lower income bracket or have moved out of the city. The significant increase in households earning 80-100percentAMI between 2016 and 2020 suggests in- migration, potentially leading to more competition for available units. Port TownsendComprehensive Plan | Housing Needs Analysis Page 11 Figure 15. Cost Burden and Household Income in Port Townsend, 2020 Severely Cost BurdenedCost BurdenedNot Cost Burdened 2016 30 115 195 2020 20 24 480 2016 90 370 395 2020 165 395 475 2016 255 130 190 Household Income 2020 200 210 115 2016 440 100 170 <30% AMI30-50% AMI50-80% AMI80-100% AMI 2020 505 50 135 - 200 400 600 800 1,000 1,200 Number of Households Source: 2016-2020 HUD Comprehensive Housing Affordability Strategy (CHAS). People of color in Port Townsend experience disproportionately higher rates of cost burden than white households, as shown in Figure 16, with 31 percent of white households cost-burdened in 2020 relative to 100% of Hispanic and Black households. This suggests that the City should adopt an equity lens when developing policies to help alleviate cost burden among its residents. Port TownsendComprehensive Plan | Housing Needs Analysis Page 12 Figure 16. Cost Burdened Households by Race and Ethnicity in Port Townsend, 2020 Severely Cost-Burdened Note: labels denote the count of Cost Burdened households in each category. Not Cost-Burdened 770 20 20 75 645 10 30 60 3,210 40 4 120 4 -- White alone, non-Hispanic, any raceBlack or African-American Indian orAsian alone, non-Other (including HispanicAmerican alone,Alaska NativeHispanicmultiple races, non-Hispanicalone, non-non-Hispanic) Hispanic Source: 2016-2020 HUD Comprehensive Housing Affordability Strategy (CHAS). Regional dynamics of renter and homeowner displacement can be difficult to measure, but the most recent migration data from the Internal Revenue Service shows that households migrating out of Jefferson County in 2021Ï2022 were lower income than non-migrating households, and than those migrating in. While the household sizes were comparable for in-and out-migrating households, they are smaller than non-migrating households on average. Figure 17. Characteristics of Migrating Households, Jefferson County, 2021Ï2022 Average Household Average Household IncomeSize Non-migrants$102,012 1.73 Outflow$79,709 1.56 Inflow$112,549 1.55 Source: IRS SOI Tax Stats. Another characteristic to consider with inflow is where people are moving from when they arrive in Port Townsend, and in Washington state more generally. Economist Matthew Gardner mapped the top five U.S. states where people are moving to Washington. In order of number of people moving to Washington, the top five states are California, Oregon, Colorado, Massachusetts, and Hawaii. Port TownsendComprehensive Plan | Housing Needs Analysis Page 13 Source: Gardner Economics. These population inflow states have a higher median household income overall than Port Townsend, as shown below. While this does not mean that every household moving to Port Townsend from another state has a higher income, it does support the IRS data shown in Figure 13, suggesting that inflow population generally has a higher income than people moving out of, or remaining in, Port Townsend. Figure 18. Median Household Income, Port Townsend, Washington, and Top Five Population Inflow States Port Townsend $ 59,148.00 Washington $ 94,605.00 California $ 95,521.00 Oregon $ 80,160.00 Colorado $ 92,911.00 Massachusetts $ 99,858.00 Hawaii $ 95,322.00 US Census Bureau 2023 American Community Survey S1901 Figure 19 shows that Port Townsend rents and home prices are well above the nearby cities of Sequim and Port Angeles, and while further analysis would be needed to understand whether Port Townsend residents are being displaced to these communities, anecdotal understanding suggests that this is a growing trend. Port Townsend Comprehensive Plan | Housing Needs Analysis Page 14 Figure 19. Regional Rent and Home Price Comparison, 2024 Average Asking RentMedian Home Price Port Townsend$1,170 $669,000 Sequim$948 $620,000 Port Angeles$639 $450,000 Source: CoStar as of August 2024; Washington Center for Real Estate Research Housing Market Report Q2 2024. There are several important caveats to consider with Figure 19. The Washington Center for Real Estate Research studies multifamily units to compare the most common types of rental properties across jurisdictions in the state. In Port Townsend, most rental listings are for detached single family residences (SFR), so this analysis does not include the most common rental unit type. Additionally, many of Port TownsendÔs multifamily developments are subsidized, artificially deflating the reported average asking rent. Anecdotal discussion and a review of currently listed rentals as of October 2024 suggest that rents are higher, particularly for detached units. These findings have several important caveats. First, they are based on 24 listings total, a very small sample of all units in Port Townsend. Second, not all rental units are advertised through online listings. This makes it difficult to capture a market snapshot. While the limited number of listings is not a statistically significant sample size, it does demonstrate that Port Townsend has limited rental properties. Port Townsend rental properties listed in October 2024 had a higher average rent than reported in Figure 19. Separating out rentals by unit type and subsidy or income limitations further clarified that the average cost of market rate units is higher than the regional comparison. This analysis found that the average cost of market rate single family residences (SFR) and accessory dwelling units (ADU) is $2,195, while the average market rate apartment is $1,903. This snapshot of rents in October 2024 places average market rate rent at $2,049 instead of the Center for Real Estate ResearchÔs finding of $1,170. The difference is likely due to mismatch in unit types and analyzing market rate and subsidized units as a whole instead of separate categories. Income-restricted properties had much lower rents, with an average of $687. While subsidized rentals are by far the most affordable, they are also in very limited supply. All six of the listed income-restricted units were marked as Ñmay be available,Ò suggesting that while the property is listed the unit is currently occupied. Port Townsend Comprehensive Plan | Housing Needs Analysis Page 15 Figure 20. Average Rental Costs by Housing Type and Subsidy in Port Townsend, 2024 $2,195 $2,049 $1,903 $687 $- Average MarketAverageAverage MarketAverageAverage Market Rate SFR or ADUSubsidized SFRRate ApartmentSubsidizedRate Unit or ADUApartment Source: Windemere Property Management, Townsend Bay Property Management, Zillow, and Redfin as of October 2024 Another significant point is that most of the units listed, both market rate SFRs and ADUs, have the highest rental costs. The potential mismatch between unit types developed, available, and needed are discussed further in Figure 23. Figure 21. Rentals Listed by Unit Type in Port Townsend, October 2024 Source: Zillow and Redfin as of October 2024, Windermere Property Management, Townsend Bay Property Management Port TownsendComprehensive Plan | Housing Needs Analysis Page 16 Special Housing Needs As of 2023, the annual Point-in-Time Count found that there were 126 homeless residents in Jefferson County. This is comparable to 2022, when there were an estimated 130 homeless residents in the county. Most homeless residents in 2023 were unsheltered (79) versus sheltered (47). Figure 22. Jefferson County Point-In-Time Homeless Census, 2013-2023 272 187 181 139 130 126 102 98 70 59 NoData 20132014201520162017201820192020202120222023 Source: Jefferson County Annual Point in Time Count. Another dataset provided by the Washington Department of Commerce is the ÑSnapshot of Homelessness in Washington StateÒ report, which collects data fromseveral sources, including Medicaid(which tracks homelessness when people access medical services), numbers of people accessing economic services such as Basic Food and TANF, and local homelessness service providers collected by the Department of Commerce. This data is shown below in Figure 23, which shows data for those reported as being homeless, as well as a larger category encompassing those who are homeless or reporting housing instability. The data shows a consistent trend over the past five years with small fluctuations and a small decrease in the past year or so, similar to the point-in-time data above. The snapshot data shows significantly higher numbers of homelessness in Jefferson County, likely due to the difficulties in conducting a point-in-time count and the aggregation of multiple datasets. Port TownsendComprehensive Plan | Housing Needs Analysis Page 17 Figure 23. Snapshot of Homelessness Counts in Jefferson County, Jan 2019-Jan 2024 600 500 400 300 Homeless or Unstably Housed Homeless Only 200 100 0 20192019202020202021202120222022202320232024 Source: WA Department of Commerce Snapshot of Homelessness in Washington State Report with data from: P1 (WA State Healthcare Authority), ACES (WA Department of Social and Health Services), HMIS (WA Department of Commerce) Residents of current shelters, emergency housing, transitional housing, and subsidized housing have shared concerns about their ability to enter market rate units. Housing service providers report that most of their residents in transitional housing cannotfind units within Port Townsend or Jefferson County, requiring them to remain in transitional housing or relocate far away from their support systems and communities. Similarly, residents of subsidized units are unable to remain in their homes if they begin earning more than the income limitations, while also not having options for market-rate units in Port Townsend. In 2022, there were 2,826 households in Port Townsend headed by a householder aged 65 or older. As shown above in Figure 7, an estimated 1,551, or 29 percent of these households are seniors living alone. HUD data estimates that in 2020, 45 percent of older adult households were low-, very low-, or extremely low-income. Nearly one third of all senior-headed households were cost-burdened. Port TownsendComprehensive Plan | Housing Needs Analysis Page 18 Figure 24. Income Brackets for Older Adult Households (62+) in Port Townsend, 2020 Senior FamilySenior Living Alone 700 600 500 400 525 300 200 210 125 230 100 Number of Households 125 100 94 55 - Extremely Low Income Very Low IncomeLow IncomeModerate Income (80- (30% AMI)(30-50% AMI)(50-80% AMI)100% AMI) Source: 2016-2020 HUD Comprehensive Housing Affordability Strategy (CHAS). In Port Townsend, there are 2,885 households where a household member has a disability (57 percent of the estimated 5,039 households in the city in 2020, according to ACS data). Overall, 56 percent of households with a disability were low-income, as shown in Figure 25. This demonstrates the need for accessible housing at various price points and for supportive services in the city. A related consideration is how age impacts length of tenure in a home. The Jefferson County Homebuilders Association reported that expected length of tenure in a home after purchase is dependent on owner age. As of 2021, the median tenure for all buyers inJefferson County was 15 years after purchase. The youngest buyers in the 22-30 year-old age range on average stayed in a house for fewer years than older buyers. Older working-age buyers (31-55 years old) remained in these houses for the median number of years. Later-career to early retirement aged buyers (56-75 years) remained in purchased houses for longer than the median, supporting the observation than Jefferson County, and Port Townsend, homeowners include more retirees than the state or national average. When considered with the data in Figure 17, the number of low-income seniors in Port Townsend suggests that older homeowners and home buyers may not be moving because it is prohibitively expensive to secure new housing. Port TownsendComprehensive Plan | Housing Needs Analysis Page 19 Figure 25. Disability and Household Income in Port Townsend, 2020 0-30 % AMI30-50% AMI50-80% AMI80% AMI + 2,500 Disabilitiesare classified in four categories, the most common of which in Port Townsend isambulatory 2,000 limitations. Note that individuals can have one or more of these disabilities, so the totals may sum to more 940 households than the cityÔs total 1,500 number of households. 560 1,000 220 435 234 580 210 150 310 500 270 60 679 549 69 320 175 - Household member has aHousehold member has aHousehold member has aHousehold member has an cognitive limitationhearing or visionself-care or independentambulatory limitation impairmentliving limitation Source: 2016-2020 HUD Comprehensive Housing Affordability Strategy (CHAS). Workforce Profile Local Workforce Characteristics The US Census Bureau reports that as of 2021, there were 3,358 jobs in Port Townsend. Jobs declined in the city for the preceding decade, down from 4,488 jobs in 2012. During this time period, according to industry categories defined by the U.S. Census Bureau, Retail overtook Health Care and Social Assistance as the top job sector in the cityÐmore so due to a loss of jobs from Health Care than growth in Retail, with Health Care jobs slipping from approximately 1,300 jobs in 2012 to about 580 in 2021. This decline has repercussions beyond impacts to local employment, given the cityÔs aging population and need for care services. The Jefferson Healthcare system, which operates a 25-bed critical access hospital in the city, is the largest employer in the city and county. Further investigation through stakeholder interviews will help understand the reasons behind the drop in healthcare jobs and jobs overall (e.g., whether it can be attributed to an employer closure/move, data reclassification, or other reasons). Port TownsendComprehensive Plan | Housing Needs Analysis Page 20 The U.S. Census BureauÔs Longitudinal Employer-Household Dynamics (LEHD) is a vital data source, but there are other points worth considering. EDC Team Jefferson, the associate development organization for Jefferson County, commissioned a report on local industries. This report assists EDC Team Jefferson in their work supporting Jefferson CountyÔs Ñlocalized economic, ecologic, and social prosperityÒ (https://www.edcteamjefferson.org/about). The 2024 Port Townsend Industry Spotlight by JobsEQ used LEHD data supplemented with other indicators to estimate jobs by industry categories, wages, and change over time. Both data sources are shown below in Figure 26, which shows that in 2021 there were 583 jobs in Health Care and Social Assistance, where the Industry Spotlight reports 879 jobs in 2024. Another divergence is in Retail Trade, which LEHD reported as 635 jobs in 2021 and the Industry Spotlight reported 761 jobs in 2024. The divergence between these sources show that Healthcare and Social Assistance and Retail Trade are closely competing for the two largest industries in Port Townsend. In general, the cityÔs economy is relatively service-oriented, with a greater share of its workforce in the 1 Retail, Accommodation and Food Services, Other Services, and Arts, Entertainment and Recreation industries than the state. Specialization can be measured via a Ñlocation quotient,Ò shown in Figure 26, which compares the local concentration of employment in an industry compared to the state. 1 ÑOther ServicesÒ includes auto/appliance repair, personal care services, and religious/civic organizations (such as social advocacy organizations and labor unions). Port Townsend Comprehensive Plan | Housing Needs Analysis Page 21 Figure 26. Port Townsend Jobs by Sector, 2012Ï2021 Location Quotient 1.57 Retail Trade 1.16 Health Care/Social Assistance 2.30 Accommodation/Food Srvcs. 3.48 Other Srvcs. (excluding PublicÉ 0.96 Educational Srvcs. 0.68 Construction 0.55 Manufacturing 0.84 Public Administration 0.51 Professional, Scientific,/Technical Srvcs. 1.05 Finance/Insurance 1.86 Arts, Entertainment/Recreation 0.60 Transportation/Warehousing 0.38 Information 0.39 Wholesale Trade 0.84 Real Estate/Rental/Leasing 0.19 Admin. & Support, WasteÉ 0.002.004.00 Source: U.S. Census Bureau Longitudinal Employer-Household Dynamics (LEHD) via Census OnTheMap, JobsEQ It should be noted that the job sectors reported by the U.S. Census Bureau do not include marine trades as their own category. Marine trades jobs are separated into other sectors, such as construction, manufacturing, and other sectors listed in Figure 26Ðbut constitute a significant employer and cultural force in Port Townsend. A 2018 economic impact study commissioned by the Port Townsend Marine Trade Association found that Jefferson CountyÔs marine trades industry accounted for 2,243 jobs throughout thecounty, including direct and indirect jobs. Industry categorizations such as marine trades constitute a ÑclusterÒ approach to industry analysis, and are more feasible to conduct at the regional, rather than city level. Thus, studies such as the PTMTAÔs offer valuable insights for this comprehensive plan update. Similarly, the U.S. Census Bureau categorizes agricultural work into different sectors. Farming is significant to the culture and economy of the Olympic Peninsula. Farms within Port Townsend city limits contribute to the economy, culture, and local food security. Determining the current number of farmworkers within the City is not feasible with current data. If local farmworkers commissioned an Port TownsendComprehensive Plan | Housing Needs Analysis Page 22 economic impact study, it would be useful tool for determining the precise numbers of local agricultural jobs in Jefferson County and Port Townsend. As the latest Census employment data is from 2021, it is also recommended that the City consider monitoring these trends as newer data is released, or connect with economic development partners that conduct such analysis. Certain trends that arose during the COVID-19 pandemic that may influence this data may no longer have a significant impact on local workforce dynamics, such as travelling nursesÐwhich skyrocketed during the pandemic, but the contracts for which have tapered significantly 2 since early 2022 at the national level. The mean hourly wage in Jefferson County, as of May 2022 is $21.50 (roughly $45,000 in gross annual income). Figure 27below shows the mean hourly wage for jobs in the top employment sectors in Jefferson County. Notably, the CityÔs top employment sectors (Retail, Health Care and Social Assistance, Accommodation and Food Services) all pay below the countyÔs average wage. Figure 27. Jefferson County Mean Hourly Wage for Jobs in Top Employment Sectors, 2022 $45 $40.98 $40 $35 $31.93 $30 $25.01 $22.86 $25 $21.67 $21.50 Avg Wage $20 $17.20 $16.98 $15 $11.87 $10 $5 $0 ManufacturingRetail tradeConstructionProfessional,Health care andAccommodationOther Srvcs.Admin. and scientific, andsocial assistanceand food Srvcs.(except publicsupport and technical Srvcs.administration)waste Mgmt. and remediation Srvcs. Source: US Bureau of Labor & Statistics Quarterly Census of Employment and Wages. 2 KFF Health News, ÑTravel Nurses See Swift Change of Fortunes as Covid Money Runs Dry.Ò Port TownsendComprehensive Plan | Housing Needs Analysis Page 23 The city is balanced in its commute patterns, with nearly the same number of workers commuting in as outÐwith a smaller proportion of workers who both live and work in the city.The out-commuter figure includesteleworkers, who physically remain in the city while being employed elsewhere. Figure 28. Port Townsend Commute Patterns, 2021 Source: U.S. Census Bureau Longitudinal Employer-Household Dynamics (LEHD) via Census OnTheMap. This pattern is replicated at the county level, where 2,700 workers commute to Jefferson County, 4,395 live and work in the county, and 7,003 workers commute outside of Jefferson County for their jobs. Jobs to Housing Ratio As of 2021 there were 3,358 jobs in Port Townsend and 5,881 occupied housing units, equating to a ratio of 0.6. A jobs-to-housing ratio at or near 1.0 indicates a balance between jobs and housing, indicating that residents have access to employment opportunities without excessive commutes, and that employers have a reasonable population base from which to draw upon. Port TownsendÔs low jobs/housing ratio is likely influenced by its significant older, retirement-age population. As of latest reporting from the state Employment Securities Department, the county had a significantly lower labor force participation rate of 44 percent in 2020, versus 65 percent for the state. Employment Trends & Projections In the OlympicWorkforce Development Area, which includes Jefferson,Clallam,and Kitsapcounties, the Government sector employed the largest number of workers in 2021. Ten-year projections from the Washington Employment Security Department show that Government is projected to continue as the top-employing sector in 2031, followed by Education/Health Services and Retail.The fastest-growing sectors include those with a presence in Port Townsend Ïsuch as other services, and those with less local employment currently, including professional and business services and the InformationsectorÐ which together, account for the tech sector (e.g., software engineering and software publishing), among other higher-paid white collar work. Port TownsendComprehensive Plan | Housing Needs Analysis Page 24 Figure 29. Projected Employment Growth by Industry, Olympic Region, 2021Ï2031 2021 Employment2031 EmploymentAvg Annual Growth 2021-2031 50 K3% 45 K 40 K 35 K 2% 30 K 25 K 20 K 1% 15 K Number of Jobs 10 K Annual Growth Rate 5 K (-1%) K0% Source: Washington Employment Security Department. There is a strong relationship between housing costs and employment. The Housing Solutions Network survey of 39 employersin Jefferson County, representing over 2,000 employees, found that 41 percent of employers indicatedthat housing cost had a moderate or significant negative impact on the growth of their business. Additional, 56 percent indicatedthat housing cost had a moderate or significant negative impact on operations, and 71 percent had at least one rejected offer in the past five years due to cost or lack of availability of housing. Given the data shown above in Figure 27demonstrating the relatively low wages of jobs in Port Townsend compared to the County average, this survey data further emphasizes the need for subsidized affordable housing and smaller market-rate units in the city, not only to meet the housing needs ofexisting and future residents of the city, but also to help sustain and grow the local economy. Housing Supply General Housing Inventory Port Townsend had 6,023 housing units in 2022 according to the most recently available American Community Survey data. The breakdown of units by type is shown below in Figure 30. Most of the cityÔs housing units are single-family homes, with detached single-family accounting for 75 percent and attached single-family an additional 3 percent of homes. About 7 percent of units in the city are ÑMiddle HousingÒ units of between 2 and 9 units, 5 percent are mobile homes, and the remaining 8 Port TownsendComprehensive Plan | Housing Needs Analysis Page 25 percent are in apartment buildings of 10 units or more. As discussed previously, a lack of diversity of housing types can present barriers to housing for some segments of the populationÐthough as seen in Figure 31, recent construction has shown a slight trend towards more diverse housing types, with single-family detached accounting for 67 percent of housing built from April 2020 to September 2024. Pipeline development shows an uptick in ADU development as well, accounting for 13 percent of pipeline development, compared to 9 percent of development since April 2020. Figure 30. Housing Unit Types in Port Townsend, 2022 20 or more units, Mobile home, 5% 5% 10 to 19 units, 3% 5 to 9 units, 2% 2 to 4 units, 5% 1-unit, attached, 3% 1-unit, detached, 75% Source: U.S. Census Bureau 2022 American Community Survey 5-Year Estimates, Table DP04. Figure 31. Recent and Pipeline Housing Construction by Type, Port Townsend Built April 2020 - Sept 2024Permitted (as of 2024 Q2) Count%Count% Single Family Detached15067%19066% ADU209%3613% Duplex52%83% Manufactured94%124% Multifamily4018%4014% Total224286 Port TownsendComprehensive Plan | Housing Needs Analysis Page 26 Port TownsendÔs housing stock is primarily comprised of 2-to 3-bedroom units, as shown below in Figure 32. The City has a slightly larger share of studio and 1-bedroom units than the county and state, with fewer larger units with 4 or more bedrooms than the state overall (11 percent versus 23 percent). Figure 32. Port Townsend Housing Units by Bedroom Count with Regional Comparison, 2022 1% 2% 5% 7% 9% 18% 5 or more bedrooms 41% 39% 4 bedrooms 37% 3 bedrooms 2 bedrooms 30% 36% 1 bedroom 24% No bedroom 18% 12% 14% 4% 2% 2% Port TownsendJefferson CountyWashington Source: U.S. Census Bureau 2022 American Community Survey 5-Year Estimates, Table DP04. Port Townsend has a larger share of older units than the county and state, with nearly a third of its units built 1950 or before. Nine percent of the cityÔs units were built since 2010, comparable to the county and state (10 percent and 12 percent, respectively). Because ACS data is based on a five-year sample, the 0 percent units reported as built since 2020 for Port Townsend is undercounting more recent development. City data shows 224 units built since 2020 (closer to Census permitting data shown in Figure 39, which shows 325 units permitted since 2020, though the ACS data shown below is for built, not permitted units). Port TownsendComprehensive Plan | Housing Needs Analysis Page 27 Figure 33. Port Townsend Age of Existing Housing Units, 2022 0% 1% 1% 9% 9% 11% 17% 17% 15% Built 2020 or later 12% Built 2010 to 2019 16% 20% Built 2000 to 2009 14% 13% Built 1990 to 1999 17% Built 1980 to 1989 15% 15% Built 1970 to 1979 5% 16% Built 1960 to 1969 9% Built 1950 or earlier 5% 28% 21% 16% Port TownsendJefferson CountyWashington Source: U.S. Census Bureau 2022 American Community Survey 5-Year Estimates, Table DP04. In Port Townsend, 89 percent of units are occupiedÐroughly between the occupancy rates seen in the county and state. Figure 34. Residential Occupancy Rates in Port Townsend with Regional Comparison, 2022 OccupiedVacant Port Townsend 89%11% Jefferson County 83%17% Washington 93%7% Source: US Census Bureau 5-Year ACS, Table DP04. Port TownsendComprehensive Plan | Housing Needs Analysis Page 28 Of the occupied units in Port Townsend, 71 percent are owner-occupied and 29 percent are renter- occupied. The Port Townsend home ownership rate is lower than the county but above that of the state. The city has a higher rate of ownership households than its nearest regional comparisons, Sequim and Port Angeles, as well as somewhat higher than Port Orchard in Kitsap County. Figure 35. Households by Tenure in Port Townsend with Regional Comparison, 2022 Owner OccupiedRenter Occupied Port Townsend 71%29% Sequim 59%41% Port Angeles 56%44% Port Orchard 62%38% Jefferson County 80%20% Washington 64%36% Source: US Census Bureau 5-Year ACS, Table DP04. Vacant housingÐrepresenting 652 units in Port TownsendÐincludes units that are vacant for a range of reasons, as seen in Figure 36. In Port Townsend, the largest share of vacant units, or 310, are vacant for seasonal, recreational, or occasional use. Port TownsendComprehensive Plan | Housing Needs Analysis Page 29 3 Figure 36. Vacant Unit Typesin Port Townsend with Regional Comparison, 2022 Port TownsendJefferson CountyWashington Vacant Classification Share UnitsShareUnitsUnitsShare For rent 20 3% 104 3% 45,935 19% Rented, not occupied - 0% 24 1% 12,427 5% For sale only - 0% 31 1% 14,761 6% Sold, not occupied 47 7% 158 5% 11,041 5% For seasonal, recreational, or occasional use 310 48% 1,802 55% 84,274 36% For migrant workers - 0% - 0% 1,370 1% 1 275 42% 1,170 36% 67,163 28% Other Vacant Total Vacant Units 652 3,289 236,971 Source: US Census Bureau 5-Year ACS, Table B25004. Over the past decade, the share of vacant seasonal and recreational units as a share of total housing in Port Townsend has averaged seven percent, reaching a high of ten percent in 2019. Vacant seasonal and recreational units accounted for five percent of total housing units in Port Townsend in 2022. This number is higher in Jefferson County, where the 2020 Census reported 17.7% vacant units. Figure 37. Vacant Units in Port Townsend, 2012Ï2022 Vacant for seasonal, recreational, or occasional use Vacant for Other Reasons Total Units 6,023 5,881 5,679 5,360 5,261 5,141 5,103 5,099 5,067 5,008 10% 9% 7% 7% 7% 6%5% 6% 5%5% 2013201420152016201720182019202020212022 Source: US Census Bureau 5-Year ACS, Table B25004. 3 ÑOtherÒ Vacant housing includes units that do not fit into other categories, which could include homes that owners to not wish to rent or sell, homes that are being prepared for sale, and homes that have been foreclosed. Port TownsendComprehensive Plan | Housing Needs Analysis Page 30 According to the U.S. Census, a household is considered overcrowded if there is more than one person per room in the housing unit. As shown in Figure 38, a minimal share of units in Port TownsendÐ0.9 percent, or an estimated 50 householdsÐare considered to be overcrowded. Figure 38. Rates of Overcrowding in Port Townsend with Regional Comparison, 2022 3.5% Room 1.4% Units with 1+ 0.9% Occupants per Port TownsendJefferson CountyWashington Source: US Census 2022 5-Year ACS, Table DP04. Housing Market Conditions Over the nearly 30 years since the cityÔs first Comprehensive Plan, 1,611 housing units have been permitted in Port Townsend. Of these, 85 percent were for single family structures. Over the past ten years, though the city has seen an uptick in multifamily productionÐincluding 36 units in West Harbor th Apartments and 43 units in the subsidized 7Haven ApartmentsÐthe overall share of permitted units that were single-family still remained at 84 percent. Figure 39. Housing Units Permitted in Port Townsend, 1996Ï2023 Single family units2 to 4 Units5+ Units 140 120 100 80 60 40 20 0 Source: US Census Building Permits Survey. Port TownsendComprehensive Plan | Housing Needs Analysis Page 31 Rent in Port Townsend, according to the latest American Community Survey data, is at an estimated $1,111 per monthÐbelow median rent for the county and state (at $1,169, and $1,592, respectively). However, Port Townsend properties for rent in October 2024 found a higher average than reported in by the 2022 American Community Survey. Per rental listings, the average rent for a market rate unit was $2,049. The difference is likely due to ACS analyzing market rate and subsidized units as a whole instead of separate categories. The average rent for subsidized or income-restricted units was $687. While the sample of local listings strongly suggests that rent is higher than reported in the American Community Survey, ACS data is still statistically significant and useful in showing that rent costs are increasing. Home values in 2023 averaged about $626,000, according to Zillow. Error! Not a valid bookmark self- reference.shows the percent change in median rent as reported by the American Community Survey, home values, and household incomes in Port Townsend from 2010 to 2022. During this period, home prices grew more quickly than incomes, more than doubling over the past decade. Home ownership is currently out of reach for the average household in the city. While median household incomes rose at about the same pace as rents, because renters have lower incomes than homeowners, they face disproportionately higher rates of cost burden and even displacement from the city, as shown above. These findings show the need for policies and actions to support affordable housing for both renters and residents seeking homeownership. Figure 40. Change in Rents, Home Prices, and Incomes in Port Townsend, 2010Ï2022 150% 130% 118% increase in home values Median Gross Rent since 2010 110% Zillow Home Value Index 90% Median Household Income 70% 50% 30% 10% 36% increase in rent; 37% -10% increase in incomes since 2010 -30% 2010201120122013201420152016201720182019202020212022 Sources: 2010-2022 American Community Survey 5-Year Estimates, Table S2503; Zillow Home Value Index Port TownsendComprehensive Plan | Housing Needs Analysis Page 32 Special Housing Inventory Special housing inventory may include subsidized housing units serving low income populations, senior housing and assisted living, and transitional housing for homeless individuals. A summary of units for categories tracked by the City is included below. Figure 41. Special Housing Inventory, Port Townsend, 2024 Units or Beds Number of Planned or Existing Units Under or Beds Construction Emergency Housing 187 30 Permanent Supportive 32 52 Housing Income-Restricted Affordable Senior/Disabled 205 0 Other 191 125 Gap Analysis Gaps in Affordability Figure 42 shows the existing households at different income levels, based on self-reported income data from HUDÔs Comprehensive Housing Affordability Strategy (CHAS), compared with the estimated number of housing units serving those income levels in the city, drawn from the Washington Department of Commerce Housing Planning for All Tool (HAPT). Comparing these data sources suggests that in Port Townsend, there is a shortage of units serving lower-income households. Based on these sources, units are available to serve existing middle- and higher-income households. However, caveats to drawing definitive conclusions from this data include: The fact that CHAS data has a time lag, due to the fact that it is based on 2016Ï2020 estimates, and therefore could be downplaying more recent trends in household income distribution; CHAS estimates combine all households at 100% AMI and above, potentially obscuring needs and gaps within those higher brackets; AMI estimates are based on countywide income levels, per HUD requirements for subsidized developments, which were 20 percent higher (at $73,900) than the cityÔs median household income ($59,193) as of 2022Ðand do not necessarily reflect local needs; and Middle- and higher-income housing units are not necessarily in ÑsurplusÒ of the need because lower-income households are likely occupying a portion of those units, as suggested by the higher rates of cost burden for lower-income households reviewed above. Port Townsend Comprehensive Plan | Housing Needs Analysis Page 33 Nevertheless, the key finding that there exists a need for housing serving lower-income households aligns with the findings of past plans and strategiesÐincluding the 2016 Comprehensive Plan. Figure 42. Comparison of Housing Units and Household Incomes in Port Townsend, 2020 2,704 Households Housing Units 1,529 2,235 350 722 387 1,035 725 525 524 0-30%30-50%50-80%80-100%100%+ Source: 2016-2020 HUD Comprehensive Housing Affordability Strategy (CHAS), WA Department of Commerce Housing Planning for All Tool (HAPT). Gaps in Housing Meeting Other Needs With 82 percent of households including two people or less, compared to 50 percent of housing units at two bedrooms or less, the city may be in need of more smaller housing unitsÐthough many households may opt for an extra bedroom, particularly if the overall housing footprints are small (common for older housing stock). To help account for this mismatch, as part of its Tactical Infill Housing Strategy, in 2023 the City made a change to allow the conversion of existing homes in residential zones to up to a 4-plex. Port TownsendComprehensive Plan | Housing Needs Analysis Page 34 Figure 43. Household and Housing Unit Size Comparison in Port Townsend, 2022 Household SizeHousing Unit Size 4+ person, 4+ 10% bedrooms, 11% 3-person, Studio/1 9% bedroom, 20% 1-person, 45% 3 bedrooms, 2 bedrooms, 2- 39% 30% person, 37% Source: U.S. Census Bureau 2022 American Community Survey 5-Year Estimates, Tables S2501, DP04. Additionally, as reviewed above, Port TownsendÔs population is considerably older than the state, and over half of its households in 2020 included a resident with a disability. The cityÔs older housing units include many with multiple stories, which are less suited to residents with limited mobilityÐand also pose maintenance requirements that can present a financial burden for older adults. These demographic trends indicate a need for housing that is both accessible internally (e.g., with elevators or single floors) and to community resources and amenities via walking (including with mobility aids). Land Capacity Analysis Amendments to the Growth Management Act under House Bill (HB) 1220 passed in 2021 require jurisdictions to analyze their estimated housing capacity by household income level. Using future county-level housing targets from Commerce, Jefferson County determines the units to be accommodated by Port Townsend versus unincorporated areas, categorized by household income level. Port Townsend must demonstrate sufficient land capacity for the number of units allocated for households under 120 percent of AMI. Port Townsend also must demonstrate land capacity for the future population, housing and jobs targets for the city overall, per RCW 36.70A.115Ðand sufficient land zoned for meeting special housing needs, such as senior and group homes. Port TownsendÔs existing and target housing units for the 2020Ï2045 period calculated using the ÑMethod CÒ allocation, are shown below in Figure 44. Assumptions for the allocation methodology recommended by the Growth Management Steering Committee in August 2024 assumes a Ñmedium growthÒ rate for the county, and that that a larger share of the countyÔs future population growth will go to Port Townsend and Port Hadlock UGA than to rural areas of the county. This approach also assumes that urbanized areas will accommodate all 0-50% AMI housing need (the largest county need through 2045, for Port TownsendComprehensive Plan | Housing Needs Analysis Page 35 brackets under 120%+ AMI) as the housing types (e.g., mid-rise multifamily buildings) serving this income level are less able to be served in rural settings. Figure 44. Port Townsend Existing and Target Housing Units by Income Band, 2020-2045 ExistingNeeded 0-30% PSH0-30% Non-30-50%50-80%80-100%100-120%120%+Emergency PSHHousing High-Income Moderate-Income Low-Income Source: WA Department of Commerce Housing Planning for All Tool (HAPT), Method C Allocation results proposed by Growth Management Steering Committee August 2024. The process of analyzing land capacity byincome band, based on guidance from the Department of Commerce, is to estimatedevelopable lands availablebyzoneÐand to categorize each zone by the housing types permitted within them. These housing types are then related to income bands,based on the household incomes each housing type usuallyserves. Unit capacityby income bandis then summarized and compared to projected housing needs. Jurisdictions in western Washington counties that are required to develop buildable lands reports may use those analyses as a base for quantifyingdevelopable land by zone, but Jefferson County is not among the counties required to produce this inventory.At the time of writing, the Comprehensive Plan update team is finalizing a methodology for its buildable lands analysisin partnership with the CityÐ which will be used to developthe Land Capacity Analysis in the forthcominghousing element background chapter.In Port TownsendÔs context, there are a number of factors that are being considered in the development of a buildable lands analysis, including the cityÔs historic platÐwhich has proved incongruent with contemporary development patternsÐas well as access to essential infrastructureand the presence of critical areas. Port TownsendComprehensive Plan | Housing Needs Analysis Page 36 Key Findings Key findings from the analysis reviewed aboveÐwhich will help guide forthcoming work in support of this comprehensive plan updateÐare summarized below. Port Townsend is expected to grow faster in the next 20 years than in the past. Current low-income residents are cost-burdened and being displaced. Cost-burden is more common and more severe for Port Townsend residents of color. The markets for renting housing and owning housing are divergent, making it especially difficult for renters to move into homeownership. The cityÔs existing housing is not fully meeting the needs of its residents, which include low- income households and an increasingly older population with smaller households. In this Comprehensive plan update, the City will need to demonstrate capacity for meeting future housing need (predominantly under 50% AMI)Ðwhile also considering other actions to meet the communityÔs housing needsÐencompassing process-oriented improvements, improvements to residential-serving infrastructure, and direct involvement in the housing market through master-planned developments and other actions. Accommodating transitional, supportive, and subsidized housing is essential. The City must support housing options for mobility within all income brackets. Mobility is particularly important for people moving out transitional and supportive units who must have access to subsidized housing options within their community. Middle-income units are also vital to many groups, particularly the workforce and households moving out of lower income brackets. Aging in place must be supported, including with options for older residents to downsize in smaller, more accessible units. Rentals affordable to families with children are also an area for improvement. Port Townsend Comprehensive Plan | Housing Needs Analysis Page 37 Port Townsend Comprehensive Plan Land Capacity Analysisby Income BandMethodology DRAFT 2025-02-06 Background As part of 2045Comprehensive Plan update, Leland Consulting Group (LCG) was retained as part of a consultantteam led by SCJ Allianceto complete an analysis of land capacity for by income bandas required byRCW 36.70A.070(2)(c) This memo outlines the methodology and results of this analysis, using the process outlined in the Land Capacity Analysisby Income Band Housing Targetsby Income Band Amendments to the Growth Management Act under House Bill 1220 passed in 2021 require jurisdictions to analyze their estimated housing capacity by household income level. Using future county-level housing targets from Commerce, Jefferson County determinedthe units to be accommodated by Port Townsend versus unincorporated areas, categorized bywhat income band the housing units can serve, expressed as a percentage of the HUD Area Median Income (AMI). For reference, the 2024 AMI for Jefferson County is $88,330. The AMI is determined by the U.S. Department of Housing and Urban Development (HUD), and is generally higher than the Census-reported Median Household income for a given city, since it is a countywide metric and adjusted for household size. The HUD AMI is used to determine eligibility and income limits for subsidized affordable housing units.Port Townsend must demonstrate sufficient land capacity for the number of units allocated for households at all income bands. 20202045 period are shown below inFigure 1. Income Categories Assumptions for the allocation methodology This analysis uses three main income categories: recommended by the Growth Management Steering Committee in August 2024 assumes the OFM Low-Income(Households earning under 80% AMI) Moderate-Income(Households earning 80-120% AMI) Townsend and Port Hadlock UGA than to rural areas of the High-Income(Households earning more than 120% county. This approach also assumes that urbanized areas will accommodate all 0-50% AMI housing need as the housing types (e.g., mid-rise multifamily buildings) serving this income level are less able to be served in rural settings. The housing targets for families earning under 30% AMI are broken down into permanent units (i.e. standard housing units) and permanent supportive housing (PSH), defined in the subsidized, leased housing for people who are experiencing homelessness or are at risk of homelessness and living with a disabling condition temporary accommodations for households who are experiencing homelessness or are at imminent risk of becoming homeless.Land capacity for emergency housing is analyzed separately from this process, and can be found in Appendix xxxx. Figure 1. Port Townsend Baseline and Target Housing Units by Income Band, 2019-2044 ExistingNeeded 76 186 2,090 75 94 807 1,529 50 286 722 124 614 16 280 371 350 0-30% PSH0-30% Non-30-50%50-80%80-100%100-120%120%+Emergency PSHHousing High-Income Moderate-Income Low-Income Source: WA Department of Commerce Housing Planning for All Tool (HAPT), Method C Allocation results proposed by Growth Management Steering Committee August 2024. Potentially Developable Acreage SCJ Alliance conducted an overall Land Capacity Analysis for housingunitsand jobs in Port Townsend for the 2020-2045 planning horizonwhich produced the total housing unit counts used in this income band analysis. This analysis classified parcels as vacant, partially-used, or under-utilized,excluded parcels that were fully developed or unsuitable for development as well as parcel acreage encumbered by critical areas. The parcel classifications and critical areas used in this analysis are shown in the mapbelow in Figure 2. infrastructure constraints by classifying parcels based on infrastructure gaps in sewer service, water service, or access to streets.-platted lots appear to be vacantor developablebut actually face significant environmental constraints and lack access to these essential infrastructure services. The map below in Figure 3shows parcels classified by how many of these infrastructure gaps (sewer, water, road) are present on the parcel. For the purposes of this income band analysis, only parcels with none of these gaps were considered. Port Townsend Comprehensive Plan | Income Band Land Capacity Analysis Methodology DRAFT 2025-02-06 Page 2 Figure 2. Initial Parcel Classification and Critical Areas for Port Townsend Land Capacity Analysis Commented \[AO1\]: SCJ / Staff - I am 95% sure this is the final and correct map but can someone please confirm? Commented \[GU2R1\]: This looks different than the last map we received from Cori on 1/7/25, with the main difference being that this version includes many geohazards that our staff have found do not preclude development. I attached the last draft from Cori in an email to Andrew, along with a map our GIS staff made showing the LCA class of parcels that are not witin an infrastructure gap or a critical area buffer. I think replacing Figure 3 with that map, or adding it after Figure 3, would best communicate how infrastructure gaps are being considered in the LCA. Commented \[AO3R1\]: Replaced Source: SCJ Alliance, City of Port Townsend Port Townsend Comprehensive Plan | Income Band Land Capacity Analysis Methodology DRAFT 2025-02-06 Page 3 Figure 3. Parcel Classification in Port Townsend with Infrastructure Gap Parcels Removed Source: SCJ Alliance, City of Port Townsend After parcel classification, removal of critical areas and removal of parcels with infrastructure gaps, a market factor of 15 percent for vacant parcels and 25 percent for partially-used or underutilized parcels was applied to account for a reasonable estimate of land that will remain unavailable during the planning period due to the market and individual property owner choice. The net vacant, under-utilized, and partially utilized acreage by zone are shown below in Figure 4. A full methodology of this analysis can be found in Appendix xxxx. Port Townsend Comprehensive Plan | Income Band Land Capacity Analysis Methodology DRAFT 2025-02-06 Page 4 Figure 4. Potentially Developable Acreage in Port Townsend, 2020-2045 Vacant Under Utilized Partially Utilized Total Zone Net Acres Net Acres Net Acres Net Acres C-I - Neighborhood Commercial 0.0 0.9 0.0 0.9 C-I/MU -Neighborhood Serving Mixed Use Center 3.1 11.0 0.0 14.1 C-II - General Commercial 15.0 5.0 0.0 20.0 C-II/MU - Community Serving Mixed Use Center 4.6 0.0 0.0 4.6 C-III -Historic Commercial 3.3 0.5 0.0 3.8 M-C - Mixed Light Manufacturing and Commercial 25.5 0.2 0.0 25.7 R-I(SF) - Low Density Single-Family 48.1 0.9 74.5 123.5 R-II(SF) - Medium Density Single-Family 212.7 13.2 501.5 727.5 R-III(MF) - Medium Density Multifamily 16.3 8.2 29.2 53.8 R-IV(MF) - High Density Multifamily 5.4 2.4 2.8 10.7 Total 334.1 42.3 608.1 964.5 Source: SCJ Alliance, City of Port Townsend Residential/Commercial Split After establishing the potentially developable acreage by zone, an assumption of what share of that acreage may develop as residential vs. commercial use over the next 20 years was applied. This was based on a review of recent trends by zone, all existing development by zone, and staff input on areas of the city where the future development pattern is reasonably expected to differ from existing or recent trends. Figure 5. Residential/Commercial Split for 2020-2045 Land Capacity Analysis in Port Townsend by Zone Zone % Residential C-I - Neighborhood Commercial 0% C-I/MU -Neighborhood Serving Mixed Use Center 75% C-II - General Commercial 50% C-II/MU - Community Serving Mixed Use Center 75% C-III -Historic Commercial 15% M-C - Mixed Light Manufacturing and Commercial 50% R-I(SF) - Low Density Single-Family 100% R-II(SF) - Medium Density Single-Family 100% R-III(MF) - Medium Density Multifamily 100% R-IV(MF) - High Density Multifamily 100% Source: City of Port Townsend, CoStar, Leland Consulting Group Housing Density Assumptions Finally, density assumptions for each zone were developed to convert the acreage into potential housing unit capacity. These assumptions were examples of recent development in the city. Density assumptions in the C-I/MU and C-II/MU was based on recent apartment or th mixed-use projects developed in these zones over the past 10 years, including 7 Haven, the Kearney Street Apartments, and the West Harbor Apartments. In the C-III zone, many historic buildings have densities exceeding 100 units per acre. Port Townsend Comprehensive Plan | Income Band Land Capacity Analysis Methodology DRAFT 2025-02-06 Page 5 However, given that residential uses are only allowed above commercial uses and little residential development is allowed (thus the assumption of only 15 percent of acreage as residential capacity in the previous step), this was reduced to 80 units per acre. In the M-C zone, a recent apartment project was built at 30 units per acre, so this density was assumed. In the R-I and R-II zones, recent development has averaged about 75 percent of the maximum allowed density, so this was expected to continue. In R-III, a blend of recent single-family development at about 9.4 units per 1 acre and recent duplexes at 16.7 units per acre were used, even though the maximum allowed is 19.7 units per acre. Similarly, R-IV allows 52.3 units per acre, but recent development has been about half this dense, so an assumption of 25 units per acre was used. The table below in Figure 6 shows the assumed densities for this analysis: Figure 6. Housing Density Assumptions for 2020-2045 Land Capacity Analysis in Port Townsend by Zone Assumed Density Zone (DU/Ac) C-I/MU -Neighborhood Serving Mixed Use Center 36.0 C-II/MU - Community Serving Mixed Use Center 39.4 C-II General Commercial 30.0 C-III -Historic Commercial 80.0 M-C - Mixed Light Manufacturing and Commercial 30.0 R-I(SF) - Low Density Single-Family 3.3 R-II(SF) - Medium Density Single-Family 6.4 R-III(MF) - Medium Density Multifamily 12.0 R-IV(MF) - High Density Multifamily 25.0 Source: City of Port Townsend, CoStar, Leland Consulting Group Total Unit Capacity The table below shows the total housing unit capacity by zone, derived from the total acreage adjusted by the residential/commercial split, then multiplied by the assumed densities shown above, and finally adjusted to account for existing units that would be lost to redevelopment. In total, Port Townsend has land capacity for 6,909 new units over the 2020-2045 planning period. This capacity will then be broken down by income band in the subsequent steps. Figure 7. 2020-2045 Housing Unit Capacity in Port Townsend by Zone Zone Net Unit Capacity C-I/MU -Neighborhood Serving Mixed Use Center 374 C-II/MU - Community Serving Mixed Use Center 137 C-II General Commercial C-III -Historic Commercial 45 M-C - Mixed Light Manufacturing and Commercial 383 R-I(SF) - Low Density Single-Family 407 R-II(SF) - Medium Density Single-Family 4,656 R-III(MF) - Medium Density Multifamily 646 1 density in units per 40,000 square feet rather than units per acre (43,560 square feet), thus the unusual allowed densities. Port Townsend Comprehensive Plan | Income Band Land Capacity Analysis Methodology DRAFT 2025-02-06 Page 6 R-IV(MF) - High Density Multifamily 261 Source: City of Port Townsend, SCJ Alliance, Leland Consulting Group Housing Unit Capacity by Income Band The next step in this analysis is to break down the land capacity for future units into income bands that those units could serve. Following Department of Commerce guidance, this is accomplished by grouping zones into zone categories based on the housing types that are allowed, and then grouping those categories by the lowest potential income level that could be served by the housing types in that zone category. The table below in Figure 8 shows the Department of Figure 8. Department of Commerce Guidance on Income Band Classification Source: Washington In , categories based on allowed housing types. However, the R-III zone has a wide range of allowed types. As described in PTMC 17.16.010(B)(3), the R-III zone allows a broad range of housing opportunities; to provide a variety of housing types and styles; although multifamily development is encouraged in these areas, single-family residences continue to be an allowed use provided the minimum density requirement can be achieved.Therefore, capacity in this zone was split between the - Figure 9. Zone Categories and Capacity for Port Townsend LCA HB 1220 Zone Net Unit Zone Category Capacity C-I/MU -Neighborhood Serving Mixed Use Center Low-Rise 374 C-II/MU - Community Serving Mixed Use Center Low-Rise 137 C-III -Historic Commercial Mid-Rise 45 M-C - Mixed Light Manufacturing and Commercial Mid-Rise 383 R-I(SF) - Low Density Single-Family Low Density 407 R-II(SF) - Medium Density Single-Family Moderate Density 4,656 R-III(MF) - Medium Density Multifamily Moderate Density 323 Port Townsend Comprehensive Plan | Income Band Land Capacity Analysis Methodology DRAFT 2025-02-06 Page 7 Zone split between 2 R-III(MF) - Medium Density Multifamily Low-Rise 323 categories R-IV(MF) - High Density Multifamily Low-Rise 261 Source: City of Port Townsend, Leland Consulting Group, Washington Department of Commerce Finally, following the Commerce guidanceshown above, these zone categories are then totaledand allocated to the income band they are likely to serve, as shown below: Figure 10. Affordability Levels by Zone Category for Port Townsend LCA Assumed Affordability HB 1220 Zone Level for Capacity Category Housing Types Allowed Net Unit Capacity Analysis Low DensityDetached single-family homes 407 120% + Moderate Density Townhomes, duplex, triplex, quadplex 4,979 80-120% Low-Rise Walk-up apartments, condominiums (2-3 stories) 1,095 0-80% Mid-Rise Apartments, condominiums 429 0-80% Source: City of Port Townsend, Leland Consulting Group, Washington Department of Commerce Pending Units In addition to land capacity for new units, this analysis also considers housing which was built since 2020, since the Commerce targets are set based on a 2020 baseline. Additionally, housing units which are currently permitted or in the pending uFigure 11 and Figure 12 below show the pending unit counts in this analysis by building type and by affordability level. Figure 11. Port Townsend Pending Units by Type and Affordability, 2020-2045 Type Units Income Band Built or Permitted Since 2020 ADU 55 80-120% Duplex (Market-Rate)9120% + Duplex (Affordable - Habitat for Humanity) 60-80% Manufactured Home 18 80-120% Fourplex (Market-Rate) 8120% + Multifamily (Market-Rate) 36 80-120% Multifamily (Subsidized Affordable) 43 0-80% Single-Family (Affordable - Habitat for Humanity) 17 0-80% Single-Family (Market-Rate)211120% + Pipeline PSH Units45 0-80% Subsidized Affordable Rental Units 1030-80% Subsidized Affordable Ownership Units 27 0-80% Market-Rate Rental Units 240120% + Source: City of Port Townsend Figure 12. Port Townsend Pending Units by Income Level Served, 2020-2045 Units Planned or Income Level Served Permitted Since 2020 Emergency Housing 30 Port Townsend Comprehensive Plan | Income Band Land Capacity Analysis Methodology DRAFT 2025-02-06 Page 8 0-80% AMI 242 80-120% AMI 109 120% AMI+ 467 Source: City of Port Townsend Results Figure 13 shows the results of this analysis. The housing needs by income band as established by Jefferson County are aggregated into three income categories low-income (0-80 percent AMI), moderate-income (80-120 percent AMI) and high-income (120 percent AMI and higher). The pending units as shown above are deducted, and the remaining housing needs are then compared to the land capacity at each of the three income levels. As shown, Port Townsend has sufficient land capacity to meet its targets at all income levels for the 2020-2045 planning period. Figure 13. Port Townsend Housing Needs and Land Capacity by Income Band, 2020-2045 Housing Aggregated Pending Remaining Total Surplus/ Income Band Needs Housing Needs Units Needs Capacity Deficit 0-30 PSH 124 0-30 Non PSH 807 1,403 242 1,161 1,523 362 30-50 286 50-80 186 80-100 75 169 109 60 4,979 4,919 100-120 94 76 467 -391 798 120+ 76 407 Total 1,648 1,648 818 830 6,909 6,079 Source: City of Port Townsend, Washington Department of Commerce, Jefferson County, Leland Consulting Group Conclusion This analysis shows that Port Townsend has sufficient land capacity to meet its housing targets at all income bands under current zoning, after deducting critical areas, areas not served by infrastructure, and applying a market factor reduction. However, the land capacity alone does not guarantee that the needed housing will be built. A variety of factors includingconstruction costs, the overall housing market and economy, property ownership, and availability of funding will also strongly influence the development of new housing, particularly affordable housing, in the city over this barriers to the development of various housing types beyond land capacity. These checklists are intended to help the city prioritize policies and programs that can help remove barriers to housing production. The Adequate Provisions checklists can be found in Appendix xxxx. Port Townsend Comprehensive Plan | Income Band Land Capacity Analysis Methodology DRAFT 2025-02-06 Page 9 Port TownsendComprehensive Plan Racially Disparate Impacts Analysis| DRAFT 2025-02-18 Introduction In 2021, the Washington State Legislature passed House Bill 1220 (HB 1220) as an amendment to the state Growth Management Act (GMA). HB 1220 requires that local governments plan for housing at all income levels and assess the racially disparate impacts (RDI) of existing housing policies. Conditions that indicate that policies have racially disparate impacts can include segregation, cost burden, displacement, educational opportunities, and health disparities. According to state guidance, there are five steps to understanding and addressing racially disparate impacts: ¤Step 1: Engage the Community ¤Step 2: Gather & Analyze Data ¤Step 3: Evaluate Policies ¤Step 4: Revise Policies ¤Step 5: Review & Update Regulations This report accounts for both Step 2 and Step 3 Ïit includes a summary of findings based on data from the US Census Bureau, US Department of Housing and Urban Development (HUD), and other sources. These findings then inform the policy evaluations and recommendations found at the end of the report. Commented \[JS1\]: Update with PT data Key Findings Port Townsend is slightly less diverse than Jefferson County, with a higher share of white residents (89 percent) and a smaller share of multiracial residents (five percent).As of 1970, Port Townsend had just four Black households, compared with 75 as of 2023.BIPOC households are concentrated in the historic downtown as well as the area south of Discovery Road and west of Sheridan Street. All of Port TownsendÔs Hispanic/Latino and Black/African American households are cost burdened.In addition, these households all rent their homes, putting them at high risk of displacement. Just 23 percent of Asian households and 32 percent of white households in Port Townsend spend more than 30 percent of their income on housing.All of the Asian householdsand 68 percent of the white householdsin Port Townsend are homeowners. Housing cost burden in Port Townsend is driven by a lack of rental units at the low and high ends of the market. There is a 225-unit shortage of rental housingfor those making less than 50percentof the Area Median Income (AMI) and a 250-unit shortage for those making greater than80percentAMI.As a result, lower-income households are competing against higher-income households for the same rental units, driving prices up. While data from the Washington Department of Commerce indicates that thedisplacement risk in Port Townsend is low, the high rates of cost burden among renter households demonstrates a need for targeted programs to keep lower-income renters housed. Hispanic/Latino and American Indian/Alaska Native households in Port Townsend are more likely to be extremely low income (making less than 30 percent of AMI) than other racial groups. Just 15 percent of white households are extremely low income compared with 47 percent of Hispanic/Latino households and 56 percent 610 SWAlder Street, Suite 1200, Portland, Oregon 97205 | 503.222.1600 of American Indian/Alaska Native households. White and Asian households have the highest share of those making above the median income. Historical Context Throughout the history of the United States, a combination of laws and practices have impacted where specific groups of people live, what opportunities they have access to, and their ability to build wealth through stable housing. Unfortunately, many of these policies explicitly or implicitly benefited white residents at the expense of all others. The legacy of policies like redlining, which used racial criteria in determining which neighborhoods were suitable for government-backed loans, highway development through predominantly-Black neighborhoods, and racial covenants explicitly excluding certain groups from owning specific properties continues to impact non-white communities today. While many cities have acknowledged the harms of these policies, many of which are no longer legal, there are still policies in effect today that hold cities back from rectifying systemic harms. These can include policies that reference vague concepts like Ñneighborhood character,Ò as well as those that permit only the most expensive homes to be built, thus shutting lower-income residents out of high-opportunity areas. Even when racially restrictive covenants and segregation became illegal, some cities were still considered Ñsundown townsÒ Ï places where Black residents were allowed to work during the day, but where they were made unwelcome by local police and residents at night. Washington State University mapped suspected sundown towns using data on the number of Black households as of 1970. As of 1970, Port Townsend had just four Black households with a total of 23 people. Three of these four households rented their homes. Figure 1. Number of Black Households in Port Townsend and Surrounding Cities as of 1970 Commented \[JS2\]: @Andrew Oliver would you be able to re-make this sundown towns map? Port Townshend had 4 Black households in 1970, Sequim and Port Angeles East had 0, and Port Angeles had 5 (Coupeville had 0 if we also want to include) Source: Washington State University Racial Restrictive Covenants Project. Port Townsend Comprehensive Plan | Racially Disparate Impacts Analysis DRAFT 2025-02-04 Page 2 The map of Port Townsend in Figure 2 below shows the share of BIPOC population by Census block group. It indicates that there is some racial segregation in Port Townsend, with BIPOC residents concentrated in the historic downtown as well as the area south of Discovery Road and west of Sheridan Street. Commented \[JS3\]: Update when we have PT map Figure 2. Race and Ethnicity in Port Townsend by Census Block Group (2023) Commented \[JS4\]: @Andrew Oliver update to Port Townsend, 2023 Source: US Census Bureau 2023 5-Year ACS, Table B03002 Assessing Racially Disparate Impacts As of 2023, Port TownsendÔs population is 89 percent white, compared with 87 percent countywide. The largest racial and ethnic minorities are multiracial (5.2 percent) and Hispanic/Latino (four percent). Port Townsend Comprehensive Plan | Racially Disparate Impacts Analysis DRAFT 2025-02-04 Page 3 Figure 3. Population by Race/Ethnicity in Port Townsend (2023) Commented \[GU5\]: Suggest that Figure 4 and 5 are moved to the beginning of the section on Assessing Racially Disparate Impacts so the section describes Asian 84 current conditions before detailing recent changes in racial composition and housing prices Black or African American 86 Other Race 373 Hispanic or Latino (of any race) 411 White 9,150 02,0004,0006,0008,00010,00012,000 Source: US Census Bureau, 2019-2023American Community Survey 5-Year Estimates (Table DP05). Figure 4. Racial Composition of Port Townsend and Jefferson County (2023) 100% Native Hawaiian and Other Pacific 1% 1% Islander 1% 98%1% American Indian and Alaska Native 96% 4% 2% 94% Asian 92% 5% 8% 90% Black or African American 88% Other Race 86% 89% 84% 87% Two or More Races 82% 80% White Port TownsendJefferson County Source: US Census Bureau, 2019-2023American Community Survey 5-Year Estimates (Table DP05). Between 2018and 2023, both Port Townsend and Jefferson County became slightly more diverse.Although Port Townsend lost American Indian/Alaska Native, Asian, and Black/African American residents over this period, it gained multiracial, other race, and Hispanic/Latino residents.The population went from 94to 89percentwhite over the course of five years. Over the same period, JeffersonCountyÔs population went from 91 to 87percentwhite, with similar changes among racial and ethnic groups. Port Townsend Comprehensive Plan | Racially Disparate Impacts Analysis DRAFT 2025-02-04 Page 4 Figure 5. Change in Population by Race/Ethnicity, Port Townsend and Jefferson County Port TownsendJefferson County 20182023Change20182023Change American Indian and Alaska Native9443(51)639380(259) Asian22784(143)532443(89) Black or African American12286(36)250125(125) Hispanic or Latino (of any race)3024111091,1021,415313 Native Hawaiian and Other Pacific Islander21(1)8040(40) Other Race0373373158798640 Two or More Races1665333671,0162,6471,631 White8,8179,15033328,18128,880699 Total9,42810,29086230,85633,3132,457 Source: US Census Bureau, 2014-2018 and 2019-2023 American Community Survey 5-Year Estimates (Table DP05). Housing in Port Townsend has increased significantly in price in recent years, and there is a notable lack of affordable housing in the city. Port TownsendÔs population includes 3,315 owner households and 1,880 rental households. Of the owner households, 29 percent are cost burdened, with 14 percent spending between 30 percent and 50 percent on housing costs and 15 percent spending more than 50 percent on housing costs. By contrast, 46 percent of renter households in Port Townsend are cost burdened, with 26 percent spending between 30 and 50 percent on housing costs and 19 percent spending more than 50 percent on housing costs. This sharp divide in stability between renters and owners results in racially disparate impacts because renters are more likely to be people of color. In Port Townsend, all of the Black/African American and Hispanic/Latino households rent their homes, compared with just 32 percent of white households. While 100 percent of Black/African American and Hispanic/Latino households are cost burdened, the same is true for just 32 percent of white households and 23 percent of Asian households. Figure 6. Number of Households by Cost Burden in Port Townsend (2021) American Black or Indian or Hispanic or African Alaska Pacific Latino WhiteAmericanAsianNativeIslanderOther Race(of any race)Total Owner Households Not Cost Burdened2,250 - 50 35 - 10 - 2,345 Total Cost-Burdened950 - 15 - - 10 - 975 Cost-Burdened (30-50%)470 - - - - 10 - 480 Severely Cost-Burdened (>50%)480 - 15 - - - - 495 Not Calculated40 - - - - - - 40 -3,195 65 35 - 20 - 3,315 Renter Households Not Cost Burdened940 - - - - 60 - 1,000 Total Cost-Burdened545 75 - 45 - 15 180 860 Cost-Burdened (30-50%)315 55 - - - - 125 495 Severely Cost-Burdened (>50%)230 20 - 45 - 15 55 365 Not Calculated15 - - - - - - 15 Total1,500 75 - 45 - 80 180 1,880 Total Households4,695 75 65 80 - 100 180 5,195 Source: US HUD, 2017-2021 Comprehensive Housing Affordability Strategy (CHAS) (Table 9). Port Townsend Comprehensive Plan | Racially Disparate Impacts Analysis DRAFT 2025-02-04 Page 5 Figure 7. Port TownsendPercent of All Households Experiencing Housing Cost Burden, 2021 Hispanic or Latino 69%31% (of any race) Other Race 70%10%15% Asian 77%23% Black or African American 73%27% White 68%17%15% 0%10%20%30%40%50%60%70%80%90%100% Not Cost BurdenedCost-Burdened (30-50%)Severely Cost-Burdened (>50%)Not Calculated Source: US HUD, 2017-2021Comprehensive Housing Affordability Strategy (CHAS) (Table 9). Figure 8. Port TownsendOwner and Renter Households by Race & Ethnicity (2021) White 68%32% Other Race 20%80% Hispanic or Latino (of any race) 100% Black or African American 100% Asian 100% American Indian or Alaska Native 44%56% 0%10%20%30%40%50%60%70%80%90%100% Percent OwnerPercent Renter Source: US HUD, 2017-2021Comprehensive Housing Affordability Strategy (CHAS) (Table 9). Port Townsend Comprehensive Plan | Racially Disparate Impacts Analysis DRAFT 2025-02-04 Page 6 The data in Figure 9below comes from the US Department of Housing and Urban DevelopmentÔs Comprehensive Housing Affordability Strategy (CHAS) dataset. It compares the number of rental households at each income level to the number of rental units affordable to households at that income levelwithout cost burden (spending more than 30 percent of income on housing costs). As it is based on data from 2017-2021,conditions in Port Townsend may be somewhat different today than depictedin this graph. However, the general trends shown provide a useful starting point to understanding the challenges in Port TownsendÔs rental market.The data suggests that the renter cost burden in Port Townsendis likelydriven by a shortfall of units affordable for households making less than 50percentof area median income (AMI) as well asfor households making greater than 80percentAMI.Shortages at the upper and lower ends of the income scale typically result inlower-income renters competing against higher-income renters for units, exacerbating affordability challenges. Figure 9. Port Townsend Renter Households by Income Compared to Rental Units by Affordability, 2021 900 700 Rental Housing Units Affordable 665 to Income Level 850 800 600 Households at Income Level 415 unit 555 700 -250 unit surplus 500 deficit -110 unit 600 435 deficit 400 500 400 445 300 405 300 220 200 -115 unit 200 deficit 100 100 105 - - <30% AMI30-50% AMI50-80% AMI>80% AMI Sources: US HUD, 2017-2021Comprehensive Housing Affordability Strategy (CHAS) (Tables8 & 15C). Despitehousing unit shortfalls in the lower-and upper-incomecategories, Port Townsendhas a relatively low displacement risk compared with nearby communities. Although thedisplacement risk is currently low, displacement pressures typically impact cost burdened renter households first Ïin Port Townsend, these households are more likely to be non-white. Figure 10below shows Washington Department of CommerceÔs Draft Displacement Risk Map ÏPort Townsendis considered Ñlower risk.Ò Although the displacement risk is currently low, displacement pressures typically impact cost burdened renter households first Ïin Port Townsend, these households are more likely to be non-white. Port Townsend Comprehensive Plan | Racially Disparate Impacts Analysis DRAFT 2025-02-04 Page 7 Figure 10. Washington Department of Commerce Draft Displacement Risk Map for Port Townsend Source: Washington Department of Commerce Draft Displacement Risk Map Tool. The Opportunity Atlas measures economic mobility by looking at household income at age 35 of people born to low- income parents, regardless of race or gender. In Port Townsend, children born to low-income parents fare better than in neighboring unincorporated areas. On the west side of the city, income at age 35 is $36,000, while on the east side of the city it is $40,000. Port Townsend Comprehensive Plan | Racially Disparate Impacts Analysis DRAFT 2025-02-04 Page 8 Figure 11. Household Income for Children Born in 1992 to Low Income Parents in Port Townsend and Surrounding Communities Sources: Opportunity Atlas County & Metro Mobility Trends Map Tool. In Port Townsend, 54 percent of Asian households make above the median income Ï the highest share among all racial and ethnic groups. Among white households, 47 percent make more than 100 percent AMI, compared with 44 percent of American Indian/Alaska Native households. None of Port TownsendÔs Hispanic/Latino or Black/African American households make above median income. American Indian, Hispanic, and Black households are the most likely to make less than 30 percent of AMI. Figure 12. Port Townsend Count of Households by Income and Race, 2021 American Black or Hispanic or Not Indian or AsianAfrican Latino (of WhiteReported*All Income Category (% of AMI) Number Extremely Low-Income (30% AMI) -45 20 85 700 60 910 Very Low-Income (30-50%) 15- - 95 455 - 565 Low-Income (50-80%) 15- 55 - 890 - 960 Moderate Income (80-100%) -- - - 440 - 440 Above Median Income (>100%) 3535 - - 2,215 30 2,315 Total for published estimates 6580 75 180 4,700 90 5,190 PercentageNot Reported Extremely Low-Income (30% AMI)56%0%27%47%15%67% Very Low-Income (30-50%)0%23%0%53%10%0% Low-Income (50-80%)0%23%73%0%19%0% Moderate Income (80-100%)0%0%0%0%9%0% Above Median Income (>100%)44%54%0%0%47%33% Source: US HUD, 2017-2021 Comprehensive Housing Affordability Strategy (CHAS) (Table 1). * The category ÑOther (including multiple races, non-Hispanic)Ò is suppressed in source data. Port Townsend Comprehensive Plan | Racially Disparate Impacts Analysis DRAFT 2025-02-04 Page 9 Figure 13. Port TownsendDistribution of Households by Income and Race or Ethnicity, 2021 White 15%10%19%9%47% Hispanic or Latino (of any race) 47%53% Black or African American 27%73% Asian 23%23%54% American Indian or Alaska Native 56%44% 0%10%20%30%40%50%60%70%80%90%100% Extremely Low-Income (30% AMI)Very Low-Income (30-50%) Low-Income (50-80%)Moderate Income (80-100%) Above Median Income (>100%) Sources: US HUD, 2015-2019 Comprehensive Housing Affordability Strategy (CHAS) (Table 1). Between 2015 and 2020, the percentage of households making above the median income remained relatively steady, though the share making less than 30 percent of AMI increased. Household earnings among Black and Hispanic households went down significantly over this five-yearperiod. Port Townsend Comprehensive Plan | Racially Disparate Impacts Analysis DRAFT 2025-02-04 Page 10 Figure 14. Port TownsendPercentage of All Households by Income Category and Race(2012-2016vs. 2017-2021) All Households All Households 2016 15%13%19%8%44% 2021 18%11%18%8%45% Asian Asian 2016 47%53% 2021 23%23%54% Black / African American Black / African American 2016 40%60% 2021 27%73% Hispanic / Latino (any race) Hispanic / Latino (any race) 2016 4%26%48%11%11% 2021 47%53% White White 2016 15%13%19%8%46% 2021 15%10%19%9%47% 0%10%20%30%40%50%60%70%80%90%100% Extremely Low-Income (30% AMI)Very Low-Income (30-50%) Low-Income (50-80%)Moderate Income (80-100%) Above Median Income (>100%) Sources: US HUD, 2012-2016 & 2017-2021Comprehensive Housing Affordability Strategy (CHAS) (Table 1). Port Townsend Comprehensive Plan | Racially Disparate Impacts Analysis DRAFT 2025-02-04 Page 11 Policy Evaluation Based on the above analysis, thereis room for improvements to policies in Port Townsendto reduce racially disparate impacts, and the data was used to inform the next steps of the racially disparate impacts assessment process Ï evaluating and revising policies that reinforce historical patterns of segregation, displacement, and inequitable outcomes. Taking a proactive approach in shaping policy to address these challenges will benefit all Port Townsend households as theCity seeks to build a more equitable future. Based on guidance provided by the Washington State Department of Commerce, the following policy evaluation framework was used to evaluate Port TownsendÔsexisting Housing Element policies: Existing Existing Goal / Equity WhyNotes Goal / PolicyAssessment Policy # Goal 1: Provide an adequate supply of housing for residents of all income groups, including sufficient housing affordable to low-and moderate-income groups. Policy 1.1Provide sufficient, Supportive Ensuring that there is suitably zonedenough land zoned to meet vacant land for housing targets will help development of all support households with a housing types to variety of needs. accommodate the future needs for each type of housing, including single-family, multi- family, and manufactured homes. Port Townsend Comprehensive Plan | Racially Disparate Impacts Analysis DRAFT 2025-02-04 Page 12 Policy 1.2 Encourage the Approaching Integrating multifamily Consider changing to: integration of multi-development into existing Ñencourage the integration of family housing neighborhoods will help multifamily housing developments in increase racial and developments within existing locations that are socioeconomic diversity neighborhoods.Ò compatible with throughout the city. existing However, compatibility with neighborhoods. existing neighborhoods is a bit broad and vague and could lead to continued segregation of existing low- density neighborhoods. Policy 1.3 Rezone areas near Approaching Locating multifamily Ensure that this policy does public facilities and housing near public not relegate apartments to services, commercial facilities, services, and retail the loudest, most dangerous services, arterials, and job centers improves streets. and jobs for higher the quality of life for renters, density residential many of whom in Port use. Townsend are residents of color. However, noise and pollution challenges along arterials can negatively impact health outcomes. Goal 2: Promote the provision of affordable housing by designating more land area for higher density housing. Policy 2.1 Encourage the Supportive Increasing the amount of provision of land available for affordable housing multifamily housing can by designating more help increase opportunities land area for higher for new construction of density housing. both market rate and affordable housing units. Policy 2.2 Evaluate existing Supportive Planning for a variety of land use regulations types of affordable housing and identify will help meet the diverse measures to increase needs of households and the variety of help increase ownership affordable housing opportunities for lower- types throughout income households. Port Townsend. Examples of potential revisions include: smaller single-family lot Port Townsend Comprehensive Plan | Racially Disparate Impacts Analysis DRAFT 2025-02-04 Page 13 sizes; more liberal allowance of single- family attached dwellings; increase multi-family density; zero lot line development; conversion of larger homes to multi- family units; smaller homes; and micro- units. Policy 2.2.1 Offer incentives to Supportive Affordable housing typically developers and requires subsidies because home builders who the rents are not high provide housing for enough to cover the cost of low and moderate development. Providing income households, incentives to affordable such as density housing providers makes it bonuses, waivers for more likely that new impact fees and affordable units will be built system development in Port Townsend. charges (SDCs), and priority permit processing procedures. Policy 2.2.2 In order to provide Supportive Demonstration projects are lower cost housing, used to help the City consider permitting understand what types of affordable housing affordable and innovative Ñdemonstration housing types will be projectsÒ in which successful, leading to Commented \[JS6\]: Not sure what this means Ï are development zoning code updates to they relaxing code requirements for all affordable standards may be allow more of these project housing or just these projects? And if itÔs just these projects, then what are they demonstrating? negotiated without types in the future. sacrificing public Commented \[GU7R6\]: Starts with reduced health and safety. requirements for these projects to prove they can work. If the project is functional, update development Policy 2.3 Work in partnership Supportive A regional approach to standards to allow these uses. An example is the among various levels housing affordability will Wooden Tents Port Townsend and Jefferson County of government and help reduce displacement permit as transitional housing and shelters. They do not with other public risks, particularly for lower- meet IBC building code, but we drafted development and private agencies income renters. regulations that allowed them first as a temporary conditional use and later as regular permit to address housing Coordinating across needs that transcend jurisdictional boundaries will jurisdictional also help the City and its boundaries. partners better leverage Consider all available funding opportunities. Port Townsend Comprehensive Plan | Racially Disparate Impacts Analysis DRAFT 2025-02-04 Page 14 local, county, state, and federal funding opportunities and private resources in the development of affordable housing and participate in region-wide coordination of affordable housing related plans and programs. Policy 2.4 Periodically update Supportive As in Policy 2.2.1, this policy an inventory of can help reduce the surplus public lands feasibility gap for affordable that may be suitable housing by providing to nonprofit housing discounted land. providers for affordable housing. Consider affordable housing needs and opportunities associated with inventoried surplus public lands before disposing of them. Policy 2.5 Provide utility rate Supportive For low-income assistance to low-populations, many of whom income populations. are residents of color in Port Townsend, high utility costs can threaten housing stability. This is especially true for older homes that tend to have fewer energy efficient features and appliances. This policy will help these households remain housed. Policy 2.6 Consider, in Commented \[JS8\]: In what ways is this substantively cooperation with different from Policy 2.3? housing partners, alternative organizational structures that may improve our ability to meet affordable housing goals; for Port Townsend Comprehensive Plan | Racially Disparate Impacts Analysis DRAFT 2025-02-04 Page 15 example, creation of a housing consortium, public development authority (PDA), or a regional housing trust. Policy 2.7 Monitor and assess Approaching Monitoring and assessing Consider adding that the City the effectiveness of the effectiveness of will monitor and assess the the goals, policies, Comprehensive Plan goals effectiveness and impacts and implementation and policies is an essential across demographics of the steps of this element step to ensure that goals, policies, and through the outcomes are aligned with implementation steps. Planning City priorities. As part of the Commission. monitoring process, the City should evaluate the impacts on various racial and ethnic groups to avoid disparate impacts. Goal 3: Conserve and improve the CityÔs existing housing stock. Policy 3.1 Assist in the Approaching Reducing utility costs can Consider clarifying whether reduction of utility help lower-income programs that increase access costs by increasing households remain housed. to weatherization will be access to However, if this program is targeted to homeowners, and weatherization targeted to homeowners, it ensure that improvements do services. could disproportionately not negatively impact renter benefit white and Asian households. households. Policy 3.1.1 Facilitate the N/A expansion of existing weatherization activities. Policy 3.1.2 Assist housing Approaching Providing funding for home Consider adding provisions providers in the repairs can help improve the that will help ensure that Commented \[JS9\]: Is this giving money to affordable development of a living situation of renters, these improvements do not housing providers for improvements, or is this giving minor home repair many of whom are lead to significant rent money to renters to repair homes they donÔt own? program, funded households of color. increases and displacement. Commented \[GU10R9\]: The goal was giving money to through state-However, improvements can the affordable housing providers, but the providers administered block also lead to increases in rent may choose to distribute it to the renters grant funds or the that may impact housing State Housing stability. Assistance Program. Port Townsend Comprehensive Plan | Racially Disparate Impacts Analysis DRAFT 2025-02-04 Page 16 Policy 3.2 Assist homeowners Approaching Reducing utility costs can Consider balancing funding with housing in poor help lower-income for programs aimed at or fair condition in households remain housed. homeowners with programs gaining access to However, because this that benefit renters. resources for repair program is targeted to or renovation of homeowners, it could their homes. disproportionately benefit white and Asian households. Policy 3.2.1 Support efforts of Approaching Because this program Ensure that programs to housing providers to targets both renters and improve and repair existing obtain Housing owners, it is likely to help a housing units do not Preservation Grant diverse array of households. exacerbate housing Program funding for However, the benefits of affordability challenges for the repair and repairs to rental housing renters. rehabilitation of typically accrue to the dwellings for low owner of the housing, and income renters and can lead to increased costs owners. for renters. Policy 3.2.2 Identify Supportive Neighborhoods that have neighborhoods and faced disinvestment over areas of the City time often do not have the most in need of resources to make the rehabilitation changes needed to improve assistance and livability and access. infrastructure Dedicating City funds to this improvements. To end will help improve those the extent possible, neighborhoods that have coordinate public previously been left out of investments in the CityÔs success. capital infrastructure with rehabilitation efforts. Goal 4: Promote a variety of housing choices to meet the needs of Port Townsend residents and preserve and encourage socio-economic diversity. Policy 4.1 Encourage the Supportive Encouraging the integration integration of a mix of a variety of housing types of housing types, throughout neighborhoods densities, and costs can help meet the needs of suitable for a a diverse population and population diverse reduce historical patterns of in age, income, segregation. household Port Townsend Comprehensive Plan | Racially Disparate Impacts Analysis DRAFT 2025-02-04 Page 17 composition, and individual needs. Policy 4.1.1 Allow attached Approaching Allowing a variety of Base zoning should be single-family middle-density housing increased to ensure that these dwelling units (i.e., types within all residential housing types can be built on duplexes, triplexes, zones will help increase existing lots. and fourplexes) in all access to neighborhoods single-family throughout the city. residential zones. However, restrictions on base zoning could a) Ensure negatively impact feasibility construction of these housing types. does not exceed the base density requirement of the zone b) Consider amending the development regulations to allow conversion of existing larger homes to exceed the base density requirements. Policy 4.1.2 Allow manufactured Supportive Manufactured homes can homes on single-be an affordable family lots in all homeownership alternative residential zones if for lower-income they meet the HUD households. Allowing these standards and types of homes on single comply with the family lots in all zones will requirements of the open up homeownership Washington State opportunities for residents. Energy Code for single-family homes, or its equivalent, and if they meet applicable age and design standards established in the zoning code. It is not the intent of this Plan to promote the development of traditional mobile home parks. Instead, Port Townsend Comprehensive Plan | Racially Disparate Impacts Analysis DRAFT 2025-02-04 Page 18 the intent is to recognize manufactured housing as a legitimate housing choice, which should be made available to Port Townsend residents. Policy 4.1.3 Promote accessory Supportive Legalizing ADUs throughout Ensure that ADU regulations dwelling units residential zones allows for comply with HB 1337 (ADUs) for long-more socioeconomic requirements. term rentals in all diversity within residential zones, neighborhoods. providing zoning code requirements are satisfied. Policy 4.2 Encourage Approaching Encouraging innovation in Consider rephrasing as ÑFind innovation and housing can help meet the opportunities to encourage variety in housing needs of a variety of innovation and variety in design and site households, including housing design and site development and multigenerational development throughout City support unique and households, seniors, and neighborhoods.Ò sustainable first-time homebuyers. community housing However, it is not clear projects such as co-where these types of housing, planned housing will be allowed and unit developments why this policy refers to the (PUDs), ÑgrowÒ home CityÔs prevailing grid Commented \[JS11\]: This is the only thing I could find and cottage home pattern. on ÑgrowÒ homes: https://cultivateinc.com/grant-street- developments, and grow-homes/ cluster developments that offer an alternative to the CityÔs prevailing grid pattern. Policy 4.2.1 Encourage clustering Approaching While small-lot single family Consider rephrasing to and small lot PUDs homes can open up more ÑEncourage clustering and in order to retain affordable homeownership, small lot single family open space and building these changes into homesÉÒ promote the base residential zoning construction of would be more broadly affordably priced beneficial than requiring attached single-PUDs. family homes. Port Townsend Comprehensive Plan | Racially Disparate Impacts Analysis DRAFT 2025-02-04 Page 19 Policy 4.2.2 Offer density Approaching Mixed-income housing Consider removing condition bonuses to builders typically requires subsidies C from this policy, or tying who provide low-in order to be financially Ñinnovative designÒ to some income housing in feasible, especially in places of the housing types market rate where market rate rents are mentioned in previous developments. Link not significantly higher than policies. the amount of regulated rents. Providing bonuses to the level incentives to encourage of affordability (i.e., mixed-income housing will the lower the cost or help to create more rental rate per unit, socioeconomically diverse the greater the neighborhoods in Port bonus). Grant Townsend. However, the density bonuses only Department of Commerce in instances where discourages references to all of the following Ñneighborhood character,Ò conditions are which has historically been satisfied: used to protect some areas from growth and/or change a) The developer while concentrating it in agrees to sell or others. rent the units to qualifying residents b) The developer ensures the continued affordability of the units for a minimum of 40 years c) The units are of an innovative design and compatible with existing neighborhood character Policy 4.3 Encourage multi-Approaching Encouraging multifamily Ensure that where multifamily family development development in mixed use housing is allowed adjacent to in mixed-use areas neighborhoods can help the manufacturing zones, there that accommodate City achieve its policy of are no disproportionate both residential and siting multifamily housing negative environmental commercial uses and near services. However, if impacts on the rental housing. in areas adjacent to manufacturing zones commercial and include uses that result in manufacturing potential health hazards, zones. locating multifamily housing near these hazards could have a negative impact on Port Townsend Comprehensive Plan | Racially Disparate Impacts Analysis DRAFT 2025-02-04 Page 20 renters, who are disproportionately Black and Hispanic. Policy 4.3.1 Include within the Supportive Encouraging multifamily comprehensive land development in mixed use use plan and zoning neighborhoods can help the code mixed-use City achieve its policy of zones to encourage siting multifamily housing a co-mingling of near services. residential and commercial uses in certain, select areas. Policy 4.3.2 Encourage adaptive N/A reuse of the upper floors of historic buildings in the downtown for permanent housing and artist studios live/work situations. Policy 4.4 Allow group homes Supportive Allowing group homes in all in all residential residential zones will help zones in the ensure that they are not community. concentrated in a single part Implement zoning of the city, and open up standards that opportunities for more ensure that the size diverse neighborhoods. of a group home (i.e., number of residents and staff) is compatible with zoned densities and available transportation and services. Policy 4.5 Promote home Supportive Encouraging the integration Commented \[JS12\]: How is this different from 4.1? ownership by of a variety of housing types Commented \[GU13R12\]: I read them as distinct encouraging throughout neighborhoods because 4.1 is focused on encouraging a range of alternatives to can help meet the needs of housing, while 4.5 speaks specifically to creating units conventional a diverse population and that are an easier entrance into home ownership. detached single-reduce historical patterns of family housing, such segregation. as condominiums, smaller homes, attached single- family units, Port Townsend Comprehensive Plan | Racially Disparate Impacts Analysis DRAFT 2025-02-04 Page 21 townhomes, and ÑgrowÒ and cottage homes. Goal 5: Identify locations for and facilitate the development of housing opportunities for low income and special needs populations. Policy 5.1 Coordinate with Supportive Increasing the supply of housing providers housing for low income and and other public and special needs populations private housing will help support a interests to increase households with a variety of the supply of needs and encourage housing for low diversity citywide. income and special needs populations within Port Townsend. Policy 5.1.1 Coordinate with N/A Jefferson County to develop a Ñfair shareÒ distribution of low income and special needs housing and to encourage the future distribution of such housing throughout appropriate areas of the County. Policy 5.1.2 Assist social service Supportive Emergency, transitional, and organizations in permanent supportive their efforts to seek housing require wraparound funds for training services to support and for construction residents. Assisting agencies and operation of to build the capacity to emergency, provide these services will transitional, and help ensure the success of permanent housing. these types of housing in Port Townsend. Port Townsend Comprehensive Plan | Racially Disparate Impacts Analysis DRAFT 2025-02-04 Page 22 Policy 5.1.3 Adopt a N/A memorandum of understanding establishing a formal relationship and supporting the mission of public housing authorities. Policy 5.1.4 Cooperate with N/A other jurisdictions in the region to co- apply for special needs housing funds. Policy 5.2 Encourage the Supportive Affordable housing typically Commented \[JS14\]: Is this meaningfully different from development of requires subsidies because 2.2.1? new, innovative, and the rents are not high Commented \[GU15R14\]: Yes. 5.2 states how the the high quality, rent-enough to cover the cost of City will get funds to support housing, while 2.2.1 states assisted housing by development. Providing how those funds can be spent to cover the costs of aggressively incentives to affordable development incentives, such as waiving impact and pursuing grant housing providers makes it connection fees. funds, state funds, more likely that new donations from affordable units will be built private individuals in Port Townsend. and organizations, public revenue sources, and other available financing. Policy 5.3 Integrate special Supportive Integrating multifamily Commented \[JS16\]: Basically the same as 1.2 needs and low-development into existing income housing neighborhoods will help developments increase racial and throughout the socioeconomic diversity community. throughout the city. Policy 5.4 Consistent with state N/A and federal law, regulate residential structures occupied by persons with handicaps the same as residential structures occupied by a family or other unrelated persons. Port Townsend Comprehensive Plan | Racially Disparate Impacts Analysis DRAFT 2025-02-04 Page 23 Policy 5.5 Consistent with state N/A and federal law, regulate residential structures occupied by group care for children the same as similar residential structures occupied by families, or other unrelated persons. Goal 6: Promote a greater balance between housing and employment opportunities. Commented \[JS17\]: Most of this section is NA because it is more related to ecdev than housing. Policy 6.1 Recognize that an adequate supply of affordable housing is directly linked to economic development. Policy 6.2 In response to N/A demand and need, change certain land use designations from residential to mixed-use, commercial, or manufacturing to expand Port TownsendÔs tax and employment base. Policy 6.3 Implement the N/A Economic Development Element of this Plan in order to provide Ñfamily wageÒ jobs in Port Townsend. Policy 6.4 Coordinate with Commented \[JS18\]: How is this different from 5.5.1? Jefferson County to provide a regional economic development strategy that integrates Ñfair shareÒ housing Port Townsend Comprehensive Plan | Racially Disparate Impacts Analysis DRAFT 2025-02-04 Page 24 supply policies with economic growth. Goal 7: Encourage higher density residential development within the City limits with gradual phasing outward from the urban core. Policy 7.1 Attempt to locate N/A higher density residential designations in areas of the City that have the infrastructure and services to support high density housing. In areas designated for higher density residential development that are not presently served with public facilities and utilities, phase the provision of infrastructure in a manner consistent with Goal 2 of the Capital Facilities Element of this Comprehensive Plan. Policy 7.2 Reference the Supportive Locating dense housing Transportation near transit provides Element of this Plan opportunities for people to and consider live car-free or car-light and transportation supports households that impacts when cannot afford a car or making decisions choose not to drive. affecting the location and density of housing. Policy 7.3 Reference the N/A Capital Facilities Element of this Plan and consider the impact of housing decisions on capital Port Townsend Comprehensive Plan | Racially Disparate Impacts Analysis DRAFT 2025-02-04 Page 25 improvements planning. Goal 8: Facilitate predictable and timely permit processing. Policy 8.1 Revise and Supportive Uncertainty and long consolidate permitting timelines can regulations and negatively impact feasibility, permitting processes especially for affordable to foster housing and moderate predictability and density housing types. remove uncertainty Fostering predictability and for builders and removing uncertainty will lenders. help promote the development of these housing types as well as more conventional housing. Policy 8.2 When revising the Supportive Reducing costly regulations Port Townsend and development standards Municipal Code can help improve the (PTMC) to feasibility for affordable and implement this Plan, moderate density housing. identify and eliminate unnecessarily expensive or difficult development standards (e.g., review and consider revisions to residential street, parking, stormwater, and utility requirements). Policy 8.3 In reviewing and Supportive While it may be necessary revising the PTMC to to require that implement this Plan, developments include balance the need to related improvements for promote housing health and safety, it is affordability with the important to ensure that the need to require cost of these improvements development-does not have a significant related negative impact on housing improvements that affordability. Weighing adequately protect these priorities while Port Townsend Comprehensive Plan | Racially Disparate Impacts Analysis DRAFT 2025-02-04 Page 26 public health and revising the code will help safety while the City meet its goals. reducing long-term operations and maintenance costs to the City. Policy 8.4 Encourage lenders Supportive Financing can be a to make financing significant barrier to the available for development of innovative innovative / housing types. By directly sustainable housing encouraging lenders to (e.g., housing in make financing available for upper stories of these projects, the City will historic buildings, help foster a wider variety of co-housing projects, housing types that serve ADUs, and ÑgrowÒ diverse needs. and cottage homes). Policy 8.5 Consider revisions to N/A the development regulations that will promote use of new technologies that help conserve resources and minimize the generation of greenhouse gas emissions. Policy 8.5.1 Encourage the N/A development of distributed generation of electricity through renewable sources. Policy 8.5.2 Encourage energy Supportive Increasing energy efficiency efficiency in both in new and existing homes new and existing can help reduce utility costs houses and the and improve housing development of stability for lower-income Ñzero net energyÒ households. housing. Policy 8.5.3 Encourage on-site Supportive On site water conservation water conservation technology can help reduce technology (e.g., rain utility costs and improve Port Townsend Comprehensive Plan | Racially Disparate Impacts Analysis DRAFT 2025-02-04 Page 27 barrels, low water housing stability for lower- use appliances). income households. 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