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HomeMy WebLinkAbout09242025PCAgendaPacketREGULAR MEETING AGENDA PLANNING COMMISSION September 24, 2025 6:00 - 8:00 PM Notice is hereby given that the Port Angeles Planning Commission will meet on Wednesday, September 24, 2025 starting at 6:00 p.m. in the City Council Chambers in City Hall, located at 321 E. 5 th Street, Port Angeles, WA. This meeting will be conducted as a hybrid meeting. In hybrid meetings, members of the public, Committee members, and City staff have the option to attend in person at City Hall or remotely via the Webex virtual meeting platform. For those planning to attend remotely, learn how to watch the meeting live and participate during the public comment period by visiting: https://www.cityofpa.us/Live-Virtual-Meetings For audio only, please call: 1-844-992-4726 Use access code: 2550 382 9611 Webinar password: PC20250924 (72202509 when dialing from a phone or video system) Once connected, press *3 to raise your virtual hand if you wish to make a comment or public testimony. You will be notified when it is your turn to speak. This access code will work for the September 24, 2025 meeting only. If you are joining the meeting through the Webex link and wish to make a comment or provide public testimony, please use the “raise your hand” feature in Webex. You will be notified when it is your turn to speak. Virtual Webex Meeting Link: https://cityofpa.webex.com/cityofpa/j.php?MTID=m624ce8c5328309059c15726f2cc1d6f7 The meeting is open to the public. I.CALL TO ORDER II.ROLL CALL III.PUBLIC COMMENT IV. APPROVAL OF MINUTES Minutes of the August 27, 2025 Meeting V. ACTION/DISCUSSION ITEMS 1.Public Hearing and Planning Commission Action: Municipal Code Amendment 25-0124 Co-living Housing Title 17 Code Revisions September 24, 2025 Planning Commission Meeting 1 Staff presentation on amendments to Chapter 17.08, 17.10, 17.11, 17.12, 17.14, 17.15, and 17.20 PAMC, open the public hearing, close the public hearing, and Planning Commission recommendation to City Council. 2.Discussion: Draft Housing Action Plan Commission discussion of the draft Housing Action Plan. 3.Discussion: Comprehensive Plan and Housing Action Plan Public Comment Review Staff presentation of public comments received and responded to regarding the Comprehensive Plan and Housing Action Plan periodic updates. 4.Discussion: UGA Swap Discussion Staff presentation on the reconfigured UGA phasing and joint pending UGA swap by the City and County. VI.STAFF UPDATES 1.Monthly Building Report 2. Monthly Affordable Housing Report 3.Monthly Natural Resources Report 4.Monthly Land Use Permitting Report 5.Draft SEPA EIS Update VII.REPORTS OF COMMISSION MEMBERS VIII.PUBLIC COMMENT IX. ADJOURNMENT September 24, 2025 Planning Commission Meeting 2 PLANNING COMMISSION MEETING Port Angeles, Washington August 27, 2025 This meeting was conducted as a hybrid meeting. CALL TO ORDER - REGULAR MEETING Chair Young called the regular meeting of the Port Angeles Planning Commission to order at 6:01 p.m. ROLL CALL Planning Commission Chair Young, Vice Chair Steiger, Commissioners: Schorr, Stanley, Kiedrowski, McMillian. Members Absent: Commissioner Mellema Staff Present: Planning Supervisor Ben Braudrick, Associate Planner Angel Torres, Housing Administrator Jalyn Boado, Natural Resources and Grant Administrator Courtney Bornsworth, Senior Development Services Specialist Pat Bartholick. APPROVAL OF MINUTES It was moved by Commissioner Kiedrowski and seconded by Vice Chair Stieger to: Approve July 23, 2025, minutes. Motion carried unanimously. PUBLIC COMMENT James Taylor, Resident, congratulated planning team for comprehensive plan presentation. Relayed comments of support for the UGA swap with Clallam County. AGENDA ITEMS 1.Discussion: Comprehensive Plan Citywide Rezone Staff presented, and the Commission discussed the proposed citywide rezone that will accompany the Comprehensive Plan Periodic Update. Proposed changes to future land use designations include reducing residential categories and enhancing mixed-use areas. The Planning Commissioners expressed support for increased density and mixed-use development while raising concerns about zoning impacts on existing homes. 2.Discussion: Comprehensive Plan Periodic Update Element Review Staff presented, and the Commission discussed proposed amendments to the Parks and Recreation and Hazard Mitigation and Climate Resiliency Elements. The Commission asked City staff to explore the following: September 24, 2025 Planning Commission Meeting 3 •Staff to consider moving park amenities inventory to appendices for better document management. •Staff to provide clarification on the term "borrowed landscapes" used in Goal 10 C. •Staff to explore combining Goals Three and Four, focused on forestry and tree cover, for clarity. •Explore options for glass recycling curbside service and consider potential partnerships with local farms for composting initiatives. •Staff to investigate ways to incentivize private landowners to conserve existing trees on their property. •Staff to review policies related to earthquake preparedness and consider adding relevant information from the multi-jurisdictional hazard mitigation plan. •Staff to add community education components regarding emergency preparedness into Goal 9. •Follow up on the inquiry regarding fiber internet plans in the future. •Investigate insurance options for protecting the city against electric utility-caused wildfires. •Consider incorporating language about man-made disasters into planning documents. Discussion: Draft Housing Action Plan Review The Planning Commission had a brief discussion of the draft Housing Action Plan. The discussion will continue at the meeting on September 24, 2025. Commissioner McMillan thought the Fee Waiver Program should be available to homeowners who have both short-term rentals and long-term rentals on the property. Vice Chair Stieger stated the Housing Action Plan should include land/housing trust models. Commissioner Kiedrowski felt there was not enough discussion around financing in the Housing Action Plan. It was moved by Stieger and seconded by Shorr to: Extend the meeting by 15 minutes. Motion carried unanimously STAFF UPDATES Monthly Building Report Senior Development Services Specialist Pat Bartholick gave a brief comparison of the monthly building report to last year's monthly report. Single-family residences are up from last year, and residential manufactured homes. The City's total dwelling unit number is down compared to 2024, which is partly due to the decrease in duplexes. September 24, 2025 Planning Commission Meeting 4 Monthly Affordable Housing Report Planner Boado met with the affordable housing partners and shared the draft housing action plan. In July 2025, $25,000 was given out in fee waivers. There was also an update about the housing pipeline project. Monthly Natural Resources Report Planner Bornsworth talked about the street tree program applications that have closed and are currently under review. The Arbor Day celebration is on October 25, 2025. Planner Bornsworth also attended the Peninsula Planners forum to discuss the critical areas update. Quarterly Grant Report Planner Bornsworth gave an update on the quarterly grants. In Q2, the city closed out two Department of Commerce grants for the comprehensive plan work. Monthly Land Use Permitting Report Planning Supervisor Braudrick discussed the completion of the Trailside subdivision and the log yard for the Port. A 120-foot cell tower is being constructed at the airport. COMMISSION REPORTS Commissioner Schorr, will not be at the next meeting due to her wedding. Commissioner Stanley, the comprehensive plan maps should show building crashes. Traffic calming is needed on Highway 101. Commissioner Kiedrowski inquired about the rationale for allocating power to ADUs, but not garages. Commissioner McMillian, the Mobile and Itinerate Vendor program has major communication issues between the County and City. Both the County and City want to be the last agency to have approval. SECOND PUBLIC COMMENT James Taylor, Resident, the rezoning plan is overly complex. Port Angeles is a small town; the city should rezone everything as R7. Also discussed other superfund sites within city limits. ADJOURNMENT Chair Young motioned to adjourn the meeting at 8:17 p.m. Commissioner Stieger seconded the motion. _____________________________________ _______________________________ Chair Young, Chair Jalyn Boado, Secretary September 24, 2025 Planning Commission Meeting 5 DATE: September 24, 2025 TO: Planning Commission FROM: Jalyn Boado, Associate Planner - Housing Administrator SUBJECT: Co-living Housing Title 17 Municipal Code Amendment No. 25-124 EXHIBIT 1: STAFF REPORT I. SUMMARY The City of Port Angeles must allow co-living in all multifamily development zones to comply with RCW 36.70A.535. Co-living housing provides private living quarters, with shared kitchens and other common areas. Following guidance from the Washington State Department of Commerce, the proposed Municipal Code Amendment (MCA) 25-0124 aims to address the housing needs of the growing population. CONTENTS I.Summary ………………………………………………………………………………………………………… 1 II. Proposal ……………………………………………………………………………………………………………1 III.Facts Relevant to the application …………………………………………………………………… 2 IV.Procedures ……………………………………………………………………………………………………… 2 V.Comments ……………………………………………………………………………………………………… 2 VI.Findings of Fact and Staff Analysis …………………………………………………………………… 3 VII.Decisions, Conclusions, & Conditions ……………………………………………………………… 4 VIII.Exhibits …………………………………………………………………………………………………………… 5 II. PROPOSAL MCA 25-0124 is a proposed amendment intended to update and align local land use regulations with recent state requirements. It makes the following modifications to Chapters 17.08, 17.10, 17.11, 17.12, 17.14, 17.15, 17.20: •First, a new definition has been added to come into compliance with the Washington State Model Ordinance. •Additionally, the permitted uses have been updated to include co-living. September 24, 2025 Planning Commission Meeting 6 III. FACTS RELEVANT TO THE APPLICATION Property Description: N/A Address: Citywide Property ID / Tax Parcel ID: N/A Zoning: R7, R9, R11, RMD, RHD, CO, CN, CA, CBD, CSD Comprehensive Plan Future Land Use Designation: Low-Medium Density Residential, Medium- High Density Residential, and Mixed Use Dimensions: Citywide Area: Citywide IV. PROCEDURE State law passed in 2024 and codified as RCW 26.70A.535 will require all cities and counties planning under the Growth Management Act to allow co-living where six or more multifamily residential units are permitted on a lot. Cities and counties have until December 31, 2025, to adopt regulations governing co-living arrangements. The City’s Legal Department reviewed the proposal, which was then sent back to the relevant agencies for a final review. A SEPA checklist was prepared, along with a determination of Non- Significance (SEPA 25-140). The MCA 25-124 and SEPA Checklist were published in the Peninsula Daily News on September 10, 2025, on City property, and sent to relevant local parties to solicit public comments on the proposed changes. Two public comments were received. On September 24, 2025, the Planning Commission held a public hearing on MCA 25-0124 and recommended approval of the proposal. In accordance with RCW 36.70A.106, all proposed local municipal development regulations are required to submit a 60-day notice of intent to adopt the amendment to the Washington State Department of Commerce for their review. Submission of the final ordinance within 10 days of adoption is also required. The notice was submitted on August 22, 2025, and the 60-day notice period ended on October 20, 2025. RCW 36.70A.106(3)(b) allows for a request to expedite the review. The City Council will conduct a review of the Municipal Code update, the Planning Commission recommended approval of the proposal, and this staff report, and decide on the MCA 25- 124 at the October 21, 2025, City Council meeting. An appeal must be submitted to the City of Port Angeles within 21 days of the notice of final decision. V. COMMENTS Public Comment: See Exhibit 2, Public Comment Memo September 24, 2025 Planning Commission Meeting 7 City of Port Angeles Departmental Comments: Comments received from the City of Port Angeles Departments have been incorporated into this report’s findings and conditions. VI. FINDINGS OF FACT & STAFF ANALYSIS Analysis and findings of fact from Department of Community and Economic Development (DCED) staff are based on the application materials, the Port Angeles Municipal Code (PAMC), relevant standards, plans, public comments, and other available materials during the review period. The findings and analysis section within this report is a summary of the completed review by DCED staff. City of Port Angeles Comprehensive Plan All MCA applications must be consistent with the Port Angeles Comprehensive Plan. The following Port Angeles Comprehensive Plan policies are identified by Planning Staff to support the proposal in MCA Application No. 25-0124: Land Use Element Goal G-3E: To ensure residential land use and development are compatible with the environment, with existing uses and residents, and with desired urban design in a way that increases resilience against climate impacts such as drought and extreme heat. Policy 3E.09: Emphasize the overall density of the development rather than the minimum lot sizes when planning new residential development. Goal G-3G: Increase the housing stock to create more housing capacity, attainability, and an appropriate vacancy rate. Policy 3G.01: Encourage high-density infill, affordable housing, and mixed-use development to increase the housing stock and increase walkability. Decrease or remove parking minimums to allow higher occupancy land use. Housing Element Goal G-6A: To improve the variety, quality, availability, and attainability of housing opportunities in the City of Port Angeles. Policy 6A.14: Allow for mixed-use opportunities in neighborhoods, including commercial development and mix of housing densities. Staff Analysis: The municipal code update will facilitate more infill development and increased density by allowing microunits and residential suites within apartment buildings and existing residences. RCW 36.70A.535 also decreases parking minimums for co-living housing units. Port Angeles Municipal Code September 24, 2025 Planning Commission Meeting 8 The following PAMC provisions are seen as relevant to this application. Planning Staff provides comments under each provision as a demonstration of the analysis that has occurred with the application review process and the findings of fact relevant to the application. Title 18 – Administration and Personnel Per PAMC Section 18.02.050, the City Council has the authority to review and is authorized and directed to hear and decide on Type V permit applications. Staff Analysis: The permit requires a public hearing before the Planning Commission, whose decision is based upon the code amendment materials, public comments, Port Angeles Municipal Code, and information available during the application process. Such a decision may be appealed to the Superior Court, provided that the appeal is filed within 21 days of the City Council's decision, as per Chapter 36.70C RCW. If an appeal is not filed within the applicable period, the City Council's decision is the final decision of the City. A timely appeal of any City Council decision will stay all further proceedings by the Department of Community and Economic Development, specifically related to the code amendment under appeal. Environmental Review A SEPA (25-140) determination of non-significance was issued on September 10, 2025, for MCA 25-124 Co-Living Housing. Consistency In preparation and submission of the municipal code amendment, the applicant has demonstrated that all standards can be met in accordance with the City’s Comprehensive Plan and the Port Angeles Municipal Code. Conditions placed on the permit in Section VII of this report ensure those standards will be demonstrated in the future. Recommendation It is the recommendation of the Department of Community and Economic Development Staff that the Planning Commission approve Application No. 25-0124 with the conclusions and conditions in Section VII of this staff report below. This recommendation is based on staff review of the application materials, Port Angeles Comprehensive Plan, Port Angeles Municipal Code standards, and submitted comments. VII. DECISION, CONCLUSIONS, & CONDITIONS Having reviewed and considered the staff report, application materials, public comments, and all the information presented, the City Planning Division recommends approval, subject to conditions. Application No. 25-0124 for a municipal code update, and makes the following conclusions: 1.Analysis and findings of fact from Staff are based on the entirety of the application materials, municipal code, City standards, plans, public comment, and all other materials available during the review period. Collectively, the information contained in September 24, 2025 Planning Commission Meeting 9 the staff report is the record of the review. The analysis and findings section of this report is a summary of the complete City Staff review and the specific findings of fact. 2.Per Section 2.36.010 of the Port Angeles Municipal Code (PAMC), the Planning Commission advises on all matters relating to land use planning and comprehensive planning. The commission may make recommendations on ways to enhance Community and Economic Development Department's community relations; review and make recommendations concerning Community and Economic Development Department policies, procedures, programs, and standards; make recommendations on how to promote public awareness of the Community and Economic Development Department services and programs; and review and make recommendations regarding legislative changes affecting Community and Economic Development Department services in Port Angeles. 3.The City Council has review authority and is authorized and directed to hear and decide on Municipal Code Amendments. As to all the foregoing issues and matters, the decision of the City Council shall be the final decision of the City. Such a decision may be appealed to the Superior Court, provided that the appeal must be filed with the City within 21 days after the Director issues the decision. An appeal application for any decision of the Director shall stay all further proceedings by the Department of Community and Economic Development specific to the property under appeal. 4.The proposed activity has been reviewed for compliance with the City’s zoning and Comprehensive Plan regulations and is in compliance with these land development regulations. 5.The proposed activity will not result in any adverse impacts on surrounding uses. 6.The proposal will result in minimal land disturbance and will therefore not require a cultural review of the intended activity. Recommended Conditions of Approval After a thorough staff analysis of the Municipal Code Amendment Application No. 25-0124, it has been identified that all standards will be met in accordance with the Port Angeles Municipal Code. There are no recommended conditions of approval as the municipal code amendment is mandated by the Washington State Legislature (RCW 36.70A.535). VIII. EXHIBITS Exhibit 1 MCA 25-0124 Draft Code Exhibit 2: MCA 25-0124 Public Comment Memo September 24, 2025 Planning Commission Meeting 10 Exhibit 2: Port Angeles Municipal Code Revisions Only those portions of Chapters 17.08, 17.10, 17.11, 17.12, 17.14, 17.15, and 17.20 PAMC detailed in this attachment are being modified. All other portions of Chapters 17.08, 17.10, 17.11, 17.12, 17.14, 17.15, 17,20 PAMC remain unchanged. 17.08.020 "C." F. Co-living housing "A residential development with units that are independently rented and lockable that provide living and sleeping space, w here kitchen facilities are shared with other residents in the building. Co-living housing does not apply to short-term rentals. Co-living housing is also known as home sharing. 17.10.020 Permitted uses. G.Co-living defined in section 17.08.020 PAMC. 17.11.020 Permitted uses. H.Co-living defined in section 17.08.020 PAMC. 17.12.020 Permitted uses. G.Co-living defined in section 17.08.020 PAMC. 17.14.020 Permitted uses. I.Co-living defined in section 17.08.020 PAMC. 17.15.020 Permitted uses. I.Co-living defined in section 17.08.020 PAMC. September 24, 2025 Planning Commission Meeting 11 17.20.020 Permitted uses. Table 17.20.020 Principal uses permitted in commercial zones Principal Use CBD CA CSD CN CO Condition/Reference Dwelling Units Multi-family P P P P P Chapter 17.22 PAMC Co-living P P P P P September 24, 2025 Planning Commission Meeting 12 ` MEMORANDUM DATE: Friday, September 19, 2025 TO: Planning Commission FROM: Jalyn Boado, Housing Administrator RE: MCA 25-0124 Public Comment INTRODUCTION This memo and its attachment serve as the official response to public comments from City staff, including all notice procedures, documentation, and individual comments. PUBLIC NOTICING PROCEDURES Public notice for Land Use Application MCA 25-0124 was opened on Tuesday, September 9, 2025, and closed on Wednesday, September 24, 2025, and was provided in the following manner: • In the Peninsula Daily News: September 9, 2025 • At the City Hall Noticing Board: September 9, 2025 • On the City’s Website: September 9, 2025 See Attachment A for noticing documentation. PUBLIC COMMENT Three individual public comments were received by staff during the open public comment period. 1. Concerns with RCW 36.70A.535 Interpretation: o The requirement that it only applies to lots allowing at least six multifamily units is questioned. o Zones like R7, R9, and R11 don’t allow that many units, so their inclusion seems inconsistent. o The phrase "six multifamily dwellings" is seen as confusing and unnecessary, possibly deterring homeowners. 2. Clarification of Co-Living/Home Sharing: o Shared kitchen facilities are a defining feature under building codes and should be clearly stated. o Suggestion to redefine or broaden the scope of RCW to include any lot in an Urban Growth Area , allowing any residential housing. o Recommend explicitly stating that home sharing or co-living constitutes a multifamily residence, which would help expand legal housing options without changing RCW language. 3. Advocacy for Legal Home Sharing: o Support for making home sharing and co-living easier and clearer in the code. o Propose including "home sharing" as a synonymous term with "co-living housing" for clarity. o Cite RCW 35A.21.314 to argue that owners can rent out any number of bedrooms in a home or ADU, as long as they reside there and rentals last at least a month. o Emphasize that this should be allowed in all residential zones without special permits or fees. September 24, 2025 Planning Commission Meeting 13 Application No. 25-0124 |MCA Co-Living Housing Title 17 Code Revisions P a g e 2 |Friday, September 19, 2025 STAFF RESPONSE Thank you for taking the time to review MCA 25-0124. The Co-living Housing definition was edited to clarify that this code does not interfere with the building code. We’ve also called out home sharing as being interrelated with co-living. City staff is applying co-living regulations to all residential and commercial zones in anticipation of the rezoning effort in 2026. Conditions placed on the permit in response to public comment • Edits to the Co-living Housing definition were added so as not to conflict with the building code • Additional edits were made to be inclusive of home sharing. Attachment A: Public Noticing Documentation September 24, 2025 Planning Commission Meeting 14 08/22/2025 Mr. Benjamin Braudrick Planning Supervisor City of Port Angeles 321 East 5th Street Post Office Box 1150 Port Angeles, WA 98362 Sent Via Electronic Mail Re: City of Port Angeles--2025-S-9783--60-day Notice of Intent to Adopt Amendment Dear Mr. Braudrick: Thank you for sending the Washington State Department of Commerce (Commerce) the 60-day Notice of Intent to Adopt Amendment as required under RCW 36.70A.106.  We received your  submittal with the following description. Inclusion of state mandated group living codification in the zoning code. We received your submittal on 08/22/2025 and processed it with the Submittal ID 2025-S-9783. Please keep this letter as documentation that you have met this procedural requirement. Your 60-day notice period ends on 10/21/2025. We have forwarded a copy of this notice to other state agencies for comment. Please remember to submit the final adopted amendment to Commerce within ten days of adoption. If you have any questions, please contact Growth Management Services at reviewteam@commerce.wa.gov, or call Carol Holman, (360) 725-2706.   Sincerely, Review Team Growth Management Services STATE OF WASHINGTON DEPARTMENT OF COMMERCE 1011 Plum Street SE Ÿ PO Box 42525 Ÿ Olympia, Washington 98504-2525 Ÿ (360) 725-4000 www.commerce.wa.gov Page: 1 of 1 September 24, 2025 Planning Commission Meeting 15 Client PDN4900481 - CITY OF PORT ANGELES/LEGALS Phone (360) 417-4613 Address 321 E. Fifth Street E-Mail Jboado@cityofpa.us PORT ANGELES, WA,  98362 Fax Order#1019316 Requested By JALYN BOADO Order Price $110.60 Classification 9932 - City of Port Angeles Legals PO #MCA 25-124 Tax 1 $0.00 Start Date 09/09/2025 Created By 1209 Tax 2 $0.00 End Date 09/09/2025 Creation Date 09/04/2025, 03:14:31 pm Total Net $110.60 Run Dates 1 Payment $0.00 Publication(s)Peninsula Daily News Sales Rep 1209 - Clenard, Linda Phone (360) 683-3311 E-Mail linda.clenard@soundpublishing.com Fax Proofed by Clenard, Linda, 09/04/2025 03:56:43 pm Page: 1  Classified Proof September 24, 2025 Planning Commission Meeting 16 Proofed by Clenard, Linda, 09/04/2025 03:56:43 pm Page: 2  Classified Proof September 24, 2025 Planning Commission Meeting 17 Proofed by Clenard, Linda, 09/04/2025 03:56:43 pm Page: 3  Classified Proof September 24, 2025 Planning Commission Meeting 18 From:Nancy Stephanz To:Community and Economic Development Cc:Jalyn Boado Subject:desired change to draft code regarding co-living housing in Port Angeles Date:Thursday, September 18, 2025 12:45:09 PM [CAUTION - EXTERNAL EMAIL] Dear City of Port Angeles, I have reviewed the proposal allowing co-living housing in all residential zones and commercial zones R7, R9, R11, RMD, RHD, CO, CA, CBD, CVD, and CN but the language of RCW 36.70A.535 says it has to be allowed by the end of 2025 on “any lot within an urban growth area that allows at least six multifamily residential units”. I would like to propose that we change that to “any lot within an urban growth area that allows any type of residential housing” or specify that “home sharing or co-living creates a multifamily residence”. That would make home sharing possible in every house that has already been built and every house that will be built, thereby increasing the available stock of housing substantially. Or do we already have a statement to that effect in our City of PA code? When I attended the Workforce Housing Summit in May at the Vern Burton Center, Carla, the planner consultant for Sequim said that co-living could not be precluded from any area zoned residential. I have emailed Anne Fritzel from Commerce as she was there, too. After carefully re-reading this RCW she agrees that right now it looks like the areas that will allow co-living housing have to allow at least six multifamily residential units. Maybe the intention of that RCW was that co-living housing including homesharing, where the homeowner rents one bedroom of their house and shares the public areas with the renter, is now considered a multifamily residence? If that is the intent, we just need to say that home- sharing or co-living counts as creating a multifamily residence and then we don’t need to change the wording of the RCW. Also, under 11(a), can we include the term ”home sharing” as another term for “co-living housing” just to make it clear to everyone that it is a form of co-living housing? I am in favor of doing everything we can to make home-sharing and any form of co-living easier. Thank you for including this in the public comments regarding this proposed change. Nancy Stephanz 1853 Mount Pleasant Road Port Angeles, WA 98362 home: 360-797-1015 ( landline, can leave VM, but not texts) September 24, 2025 Planning Commission Meeting 19 From:Nancy Stephanz To:Community and Economic Development Subject:Follow-up comment Date:Friday, September 19, 2025 11:12:43 AM [CAUTION - EXTERNAL EMAIL] Dear City of Port Angeles, After receiving another email from Anne Fritzel, I would like to add a couple of comments to my comment that I emailed you y’day. One of my sentences asked that you add “home sharing” as another form of co-living. Anne brought to my attention the fact that some AirBnB sites use the term home sharing when the owner is present during the term of that short term rental of space in the home. So we need to indicate that this type of home sharing, to be qualified as a type of co-living, is to be for at least one month, and can exist for any term longer than that. My other concern in that first email regarding making it clear owners could rent out a bedroom in their house anywhere that is zoned residential already, and we would add the other areas in your proposed changes, may be cleared up by making reference to another RCW that Anne found and sent to me. It is RCW 35A.21.314. “Except for occupant limits on group living arrangements regulated under state law or on short term rentals as defined in RCW 64.37.010….a code city may not…limit the number of unrelated persons that may occupy a household or dwelling unit.” So, as I read that RCW, it sounds like the owner of any house can rent out as many bedrooms as they like in their home or on their poverty while they are living there whether it is in an area that has six multifamily housing developments or not. I still think we need to make that clear. Renting a bedroom (or more than one) in your house or an ADU on your property for at least a month while you are living on the property is legal in any area zoned residential (or these new areas you will add that can be partly commercial/industrial and partly residential) is allowed and does not require any special permit or fee. Period. I see no reason to include the “six multifamily” housing dwellings language at all. It should be removed from RCW 36.70A.535. That phrase will make people fearful they are doing something wrong and that they will get in trouble if they can’t see an apartment building from their window . Thank you for adding this to your public comments on Sept. 24. Nancy Stephanz September 24, 2025 Planning Commission Meeting 20 From:Ben Braudrick To:Jalyn Boado Subject:FW: Co-Living Housing Date:Friday, September 12, 2025 4:05:37 PM Attachments:Co-Living Housing.docx Add to public comment memo/matrix etc.! Ben Braudrick, AICP Pronouns: he/him Planning Supervisor | City of Port Angeles Community & Economic Development (o) 360.417.4804 | (c) 360.406.0654 bbraudrick@cityofpa.us 321 East 5th Street Port Angeles, WA 98362 www.cityofpa.us From: Annie O'Rourke <aorourke@peninsulapha.org> Sent: Friday, September 12, 2025 3:02 PM To: Ben Braudrick <Bbraudri@cityofpa.us> Cc: Shannen Cartmel <Scartmel@cityofpa.us> Subject: Co-Living Housing [CAUTION - EXTERNAL EMAIL] Hi Ben, Attached my take on this definition. If the RCW 36.70A.535 only mandates that it apply tolots "...that allow at least six multi-family residential units...", why are zones R7, R9 andR11 included since they don't allow that many units on a parcel? This revised definition does not step on the toes of the building code. In addition, I don't see a need to clarify, in the definition, whether the bathing facilities are shared or not but it's important to state that the kitchen facilities are shared - that is a key function in the building code. Thanks for the opportunity to comment. Annie O'Rourke Director of Acquisition & Development Peninsula Housing Authority 727 E 8th Street Port Angeles, WA 98362 (360) 452-7631 ext. 301 September 24, 2025 Planning Commission Meeting 21 September 24, 2025 Planning Commission Meeting 22 TABLE OF CONTENTS Thank You ............................................................................................................................................................ 4 Land Acknowledgement ...................................................................................................................................... 5 Executive Summary ............................................................................................................................................. 6 Housing Action background: Defining the Challenge ........................................................................................ 8 How Port Angeles Plans for Future Housing Needs ....................................................................................... 10 Housing Needs Assessment Summary ........................................................................................................... 12 Project Goals ...................................................................................................................................................... 19 Public Engagement ............................................................................................................................................ 19 Housing Development Strategies ..................................................................................................................... 20 Implementation Schedule ................................................................................................................................. 33 Appendix A: Housing Policy Analysis goals from the 2019 HAP.................................................................... 36 Appendix B: Housing Needs Assessment ........................................................................................................ 43 Appendix C: Land Capacity Analysis Map ........................................................................................................ 44 Appendix D: Port Angeles Housing Cost Burden Charts ................................................................................. 46 TABLES AND FIGURES Table 1: ................................................................................................................................................................ 11 Figure 1: .............................................................................................................................................................. 10 Figure 2: 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............................................................................................................................................................. 25 Figure 13: ............................................................................................................................................................. 26 Figure 14: ............................................................................................................................................................. 27 Figure 15: ............................................................................................................................................................. 28 Figure 16: ............................................................................................................................................................. 29 September 24, 2025 Planning Commission Meeting 23 Figure 17: ............................................................................................................................................................. 30 Figure 18: ............................................................................................................................................................. 31 September 24, 2025 Planning Commission Meeting 24 THANK YOU CITY COUNCIL Mayor Kate Dexter Deputy Mayor Navarra Carr Councilmember Brendan Meyer Councilmember Amy Miller Councilmember Lindsey Schromen-Wawrin Councilmember Drew Schwab Councilmember LaTrisha Suggs PLANNING COMMISSION Chair Colin Young Vice Chair Daniel Steiger Commissioner Dallas Kiedrowski Commissioner Walker Mellema Commissioner Anna Schorr Commissioner Sherne-Marie McMillan Commissioner Ben Stanley CITY STAFF Nathan A. West, City Manager Calvin W. Goings, Deputy City Manager Shannen C. Cartmel, Community and Economic Development Manager Benjamin G.L. Braudrick, Planning Supervisor Jalyn C. Boado, Housing Administrator September 24, 2025 Planning Commission Meeting 25 LAND ACKNOWLEDGEMENT The City of Port Angeles acknowledges the Coast Salish peoples of this land, the land which touches the shared waters of all tribes and bands within the Lower Elwha Klallam, Jamestown S’Klallam, Port Gamble S’Klallam, Skokomish, Quinault, Hoh, Quileute, and Makah nations. September 24, 2025 Planning Commission Meeting 26 EXECUTIVE SUMMARY The City of Port Angeles 2025 Housing Action Plan (HAP) is an updated strategy building on the 2019 plan to tackle critical housing challenges and promote a fair, diverse, and sustainable housing future. With housing affordability and accessibility emerging as key issues in Washington State, Port Angeles faces unique challenges, such as geographic constraints, aging infrastructure, and limited land development capacity. Defining the Challenge Port Angeles, once sustained by robust forestry and maritime industries, has experienced significant economic transitions in recent decades. The decline of its traditional industries has given rise to a tourism-based economy, characterized by lower-wage jobs and increased difficulty for local workers to secure affordable housing. Major employers, including the Coast Guard, Olympic National Park, and regional healthcare systems, report challenges in recruiting and retaining staff due to housing shortages and low vacancy rates. Several systemic and geographic barriers exacerbate these issues: o Geographic Isolation: Surrounded by natural barriers—the Strait of Juan de Fuca, Olympic Mountains, and major waterways—Port Angeles has limited available land for development compared to other regional cities. o Aging Infrastructure: Several of the City’s wastewater and stormwater basins lack capacity to support higher-density housing. o Historic Development Patterns: Outdated zoning and land use decisions have resulted in large-lot single-family housing that limits infill and density. o Aging Housing Stock: The median home in Port Angeles was built in 1962, and more than half of the city’s housing units are over 50 years old. Renovating or redeveloping these homes often proves cost-prohibitive due to updated building and energy codes. o Limited Workforce and Resources: The city’s distance from the Puget Sound metropolitan area complicates access to skilled labor, materials, and larger-scale developers. These challenges have contributed to severe housing affordability issues. Nearly 50% of households are classified as low-income, and 38% are cost-burdened, spending more than 30% of their income on housing. Among renters, 68% are low-income, with many facing significant housing insecurity. Homelessness in Clallam County reached its highest level in a decade in 2024, doubling from the previous year. Progress Since 2019 Since adopting its first Housing Action Plan, the City has made measurable strides to mitigate these barriers: o Permit Fee Waiver Program: Implemented in 2023, waiving 25 building and land use permit fees for affordable, infill, and multifamily housing projects. o Permit-Ready Plans: Developed a library of pre-approved designs for small-lot homes and townhouses, expediting permitting and lowering development costs. September 24, 2025 Planning Commission Meeting 27 o Housing Pipeline Pilot Project: Acquired property at 935 W 10th Street to catalyze affordable, high-density development and demonstrate innovative approaches to multifamily housing. o Zoning Reforms: Updated municipal code to encourage diverse housing types, including Accessory Dwelling Units (ADUs), co-living arrangements, and higher-density developments. o Multifamily Property Tax Exemption (MFTE): Continued operation and alignment with recent state legislation to incentivize affordable multifamily construction. These actions represent important steps toward increasing housing options and affordability, though continued and expanded efforts are required to meet community needs. Strategic Recommendations To achieve these goals, the Plan outlines actionable strategies across six focus areas: 1. Increase Housing Supply and Variety: Expand initiatives like the Housing Pipeline Project, co-living code updates, and workshops for multifamily builders. Encourage infill development through continued zoning and permitting reforms. 2. Improve Affordability: Leverage the Affordable Housing Sales and Use Tax to fund projects for residents earning at or below 60% of Area Median Income (AMI). Continue the MFTE program with enhanced anti-displacement safeguards. 3. Preserve Existing Housing: Continue programs like the COPA Weatherization Program and enforce blighted property reduction strategies to address vacant or unfit buildings. 4. Promote Homeownership: Explore down payment assistance programs in partnership with local financial institutions and community organizations to support first-time buyers. 5. Address Homelessness: Create a City-wide Homelessness Navigator position to coordinate services, bridge gaps, and connect residents with resources. 6. Prevent Displacement: Consider policies and incentives to empower tenants and nonprofit organizations to preserve affordable housing stock. Implementation and Next Steps The Plan includes a detailed schedule of programs and actions, assigning responsibilities to City departments, partners, and stakeholders. Progress will be monitored through periodic assessments to ensure alignment with housing targets and community goals. This Plan provides a framework for creating a diverse, inclusive, and sustainable housing environment where all residents—regardless of income—can find a safe, affordable place to call home. September 24, 2025 Planning Commission Meeting 28 HOUSING ACTION BACKGROUND: DEFINING THE CHALLENGE Constructing housing in Port Angeles has presented various challenges throughout the City’s history, some more difficult than others. The city experienced steady and healthy growth from the 1920s to the 1970s, largely due to the success of its forestry and maritime industries, its designation as the county seat, and its role as host to an international ferry service to Victoria, British Columbia, as well as the headquarters of Olympic National Park. For most of the twentieth century, large lumber, pulp, paper, and plywood mills along the city’s waterfront and the Port’s piers and marina drove the local economy. Those industries that supported past generations have diminished, and stagnation in the construction industry has followed suit. In the 21st Century, the economy has begun to diversify, and tourism has become an increasingly more prevalent economic sector for Port Angeles. Finding and securing affordable and attainable housing for working families remains a significant issue, as lower-wage tourism jobs have become more common since the closure of the local mills. Major public institutions, such as the Coast Guard, the National Park Service, the National Forest Service, Olympic Medical Center, and the Port Angeles School District, all struggle to house their employees within the City. In many cases, recruiting new employees is challenging, particularly due to low housing vacancy rates. That low vacancy rate creates operational gaps that reduce the services Clallam County public institutions and local private businesses can provide. Port Angeles faces several distinct barriers to new construction, rehabilitation of aging housing, and accommodating increased density and growth: 1. Port Angeles has island-like physical barriers. As Port Angeles has grown, expanded, and developed over the last 50 years, it has had to navigate several physical barriers. The city limits feature five small stream corridors: the boundaries of Morse Creek to the east, the Elwha River to the west, the shoreline of the Strait of Juan de Fuca to the north, and the Olympic Mountain range to the south. These geographic characteristics make housing development more challenging than in surrounding cities, which have fewer natural barriers to growth and greater available undeveloped land capacity. 2. Port Angeles is held to higher infrastructure standards and suffers from a lack of physical capacity. Port Angeles faces several additional challenges, with the greatest of which is wastewater capacity due to several basins with a combined sewer/stormwater system. The aging areas of the system are sized in a manner that does not account for additional stormwater runoff from on-site impervious surfaces, such as structures, detached garages, and driveways. Certain neighborhoods that are “upstream” of these capacity pinch points may require more than just an increase in wastewater pipe size. The Port Angeles urban growth area is the only location on the Olympic Peninsula that holds a National Pollution Discharge Elimination System Phase II permit and is therefore subject to higher standards to address minimum control measures set by the Federal Environmental Protection Agency. These standards, combined with a sewer system that has capacity issues, can make constructing housing of any kind more cost prohibitive. September 24, 2025 Planning Commission Meeting 29 3. Historic development has long-lasting negative effects on future development. The federal government originally platted Port Angeles as a townsite with 7,000-square-foot lots and a gridiron configuration that did not account for the coast and natural geography. The western area of the City remained undeveloped until the 1970s, when larger lot development with curvilinear streets and cul-de-sacs, which lacked alleyways, was seen as a more attractive development pattern. Single-occupancy vehicle-oriented transportation and heavily segregated residential and commercial development were also the standard for mid-sized municipalities at the time. A more traditional complete streetscape and local access to commercial services, which were more prevalent prior to World War II, were replaced by large lot monocultural detached single-family house units in zoning that did not foresee the challenges Port Angeles is facing today. 4. Port Angeles housing is generally aging and fails to meet state and federal building standards. The median age of all housing units constructed in Port Angeles is over 60 years old, and the average house was built in 1962, which is comparatively older than those in surrounding North Olympic Peninsula communities and statewide trends. Remodeling and rehabilitating older homes, especially those that have been vacant for an extended period, becomes increasingly challenging over time. Periodic updates to the Washington State Building and Energy codes must be met during these updates, making the ability to rent or sell a second rehabilitated home cost-prohibitive without the renter or buyer becoming cost-burdened by the rental or mortgage rate. 5. Port Angeles is a ferry ride and a floating bridge from the Puget Sound Metropolitan Area The I-5 corridor is a minimum two-hour drive distant, which complicates the procurement of building materials and skilled workers in the fields of engineering and architectural services, as well as skilled builders with the necessary expertise in trades required to construct larger multifamily apartment buildings. The return on investment for those interested in developing middle and multifamily housing without public sector assistance is greater in the I-5 corridor. Although Port Angeles has led the way for zoning and building allowances and housing programs in Washington State for mid- sized cities, competing with access to skilled work and services, materials, and financial assistance continues to be a significant barrier. 6. Port Angeles acts as its own independent utility Port Angeles taxpayers are responsible for all local infrastructure maintenance and improvements, facilities, and public services, including water, power, transportation, wastewater collection and treatment, parks, fire, and police. With a 2025 OFM projected population of 20,240, Port Angeles must see growth in its tax base before the municipality can properly maintain all the existing infrastructure in its Urban Growth Area. Maintaining existing facilities–and expanding new ones– requires proper planning practices, prioritized development and assessments, and fiscal responsibility. Although there is potential land capacity for development in the unincorporated urban growth area, it comes at a significant cost in terms of upgrading the city’s already constrained infrastructure and city services. The city's wastewater treatment plant is projected to have adequate capacity until at least 2030, designed to serve a population of 24,800. September 24, 2025 Planning Commission Meeting 30 HOW PORT ANGELES PLANS FOR FUTURE HOUSING NEEDS With these geographic and systemic barriers to housing development, the City of Port Angeles remains committed to exploring every approach to encourage the development of affordable and diverse housing by reducing regulatory barriers in its zoning code. City staff developed and sent out a housing needs assessment survey to the greater Port Angeles community to assess community-wide opinions on current housing conditions, preferences, and priorities, and received over 580 responses. The 2019 Housing Action Plan (HAP) clarified population and housing projections, analyzed housing market trends, outlined the existing housing stock, and established goals and policies. This updated 2025 HAP serves as the periodic update of the Housing Action Plan (HAP), providing a comprehensive evaluation of progress made from 2019 to 2025. The HAP takes the data from the Housing Needs Assessment (HNA) and the goals and policies outlined in the Housing Element of the comprehensive plan and lays out tangible implementation steps. The HAP update aims to achieve several key objectives: • Summarize and Contextualize Key Findings: This section will distill and clarify the major insights derived from the Housing Needs Assessment (HNA), offering a thorough understanding of the current housing landscape (refer to the Appendix B for detailed findings). • Identify Growth Targets and Population Trends: The HNA will project the growth targets and demographic shifts anticipated for the City of Port Angeles over the next decade, providing critical context for future housing development. • Outline Housing Goals for the City: Drawing on extensive feedback from the Port Angeles City Council, the Stakeholder Advisory Committee, and community members gathered through public engagement sessions, we will define specific housing goals aimed at addressing local needs. • Evaluate Progress on 2019 HAP Goals: A thorough assessment will be conducted to measure the effectiveness and progress toward achieving the goals initially outlined in the 2019 HAP. • Review Current Affordable Housing Projects: This section will provide an in-depth overview of the City’s existing affordable housing initiatives, assessing their impact and effectiveness in meeting community needs. In addition, the update will present a series of recommendations for the development of robust housing strategies, which include: • Strategies to Increase Housing Supply: Crafting actionable plans to expand the overall availability of housing in the area. • Strategies to Diversify Housing Types: Proposing a wider array of housing options, ensuring that various needs and preferences within the community are met. • Strategies for Housing Affordability: Focusing on measures that will make housing accessible and affordable for individuals and families across all income levels. Figure 1: Comprehensive Plan Graphic September 24, 2025 Planning Commission Meeting 31 • Strategies to Minimize Displacement: Developing approaches to protect low-income residents from being displaced due to redevelopment, ensuring that vulnerable populations are supported. • Strategies to Support Housing Preservation: Emphasizing the importance of maintaining and improving existing housing stock to protect community character and affordability. • Consider Broader Economic Context: Evaluating how housing strategies can contribute to mitigating economic displacement pressures, creating a stable and supportive environment for all residents. What is affordable housing? The Department of Housing and Urban Development (HUD) establishes income limits to determine eligibility for assisted housing programs. These income limits are based on estimates of Median Family Income and the definitions of Fair Market Rent for each metropolitan area, specific parts of some urban areas, and all non-urban counties (HUD Office of Policy Development and Research). In the City of Port Angeles and Clallam County, affordable housing is defined as households with incomes at or below 80% of the area median income (AMI). The HUD-determined AMI income limits change annually and vary with household size (see Table 1). Persons in Family Income Level 1 2 3 4 5 6 7 8 Extremely Low Income (30% AMI) $19,950 $22,800 $26,650 $32,150 $37,650 $43,150 $48,650 $54,150 Very Low Income (50% AMI) $33,200 $37,950 $42,700 $47,400 $51,200 $55,000 $58,800 $62,600 Low Income (80% AMI) $53,100 $60,700 $68,300 $75,850 $81,950 $88,000 $94,100 $100,150 Source: U.S. Department of Housing and Urban Development (HUD). Table 1. HUD Income Limits for Clallam County, 2025 September 24, 2025 Planning Commission Meeting 32 HOUSING NEEDS ASSESSMENT SUMMARY The following is a summary of the Housing Needs Assessment (HNA). This Housing Needs Assessment (HNA) is prepared as part of the periodic update of the Comprehensive Plan’s background analysis required by the State Growth Management Act (GMA) under RCW 36.70A.130. This report identifies current and future housing needs to serve all income demographics within the community and analyzes potential gaps in housing supply, types, and affordability. The complete Housing Needs Assessment can be found in Appendix B to this Plan. COMMUNITY PROFILE • The Port Angeles population has grown slowly since 1980, with an annual growth of less than one percent. This is a slower growth rate than that of Clallam County and significantly slower than the state's population growth. It is estimated that in 2024, the population of Port Angeles was 20,410. • The average age in 2022 is 41.3 years in Port Angeles, which is younger than the county's average age but older than the state's average. • Port Angeles has relatively homogeneous racial diversity, with 80 percent of the population identified as white. Overall, the city’s population diversity is similar to Clallam County and less diverse compared to the state as a whole. • The average household size in Port Angeles is 2.2, which is approximately the same as the county average and smaller than the 2022 statewide average of 2.5. However, the state has a higher proportion of family households and children compared to Port Angeles and Clallam County. • More than 50 percent of households own their homes, and homeowners earn more than twice as much as renter households in the city. • Nearly half of Port Angeles households are classified as low-income, earning less than 80% of the Area Median Income. Among renters, 68 percent of households are classified as low-income. • About 38 percent of households are cost-burdened, spending more than 30 percent of their income on housing costs, with renters and lower-income households facing high levels of cost- burden. • In 2024, homelessness in Clallam County has reached its highest rate in the last decade. The number of unsheltered individuals has doubled since 2023. • In 2020, more than half of elderly family households were low-income, and 35 percent of all senior-headed households consisted of seniors living alone and facing cost burdens. • 2,840 households have a member with a disability, and most of them are low-income households. September 24, 2025 Planning Commission Meeting 33 Figure 2 illustrates the historic population growth in Port Angeles from 1960 and projected to 2045. Each year the Washington State Office of Financial Management works with local jurisdictions to conduct a census or collect data to do a population estimate. The black throughline represents the annual growth rate where population growth has decreased and stagnated between 1980 and 2020. Looking forward to 2045 the annual growth rate is expected to increase. WORKFORCE PROFILE • In 2021, there were 9,102 jobs in Port Angeles. The Health Care and Social Assistance sector has dominated and experienced rapid growth since 2011. This is also a top industry in Clallam County. The average wage in the industry is comparable to the county's average. Other key job sectors are Accommodation and Food Services, Education, Retail, Public Administration, and Manufacturing. • Port Angeles has a similar number of commuters both entering and leaving the city, with 39 percent of workers residing in Port Angeles. The patterns of commuting out are diverse, with Seattle and various smaller locations serving as job destinations. • Port Angeles has a balanced employment-to-housing ratio, at 0.9. • The Education and Health Care sector is projected to grow by 1.3 percent in the Olympic Workforce Development Area. Meanwhile, Leisure and Hospitality is expected to be the fastest-growing sector, with an annual growth rate of 2.1 percent Figure 2. Historic Population Growth in Port Angeles, 1960–2024 Source: U.S. Census Bureau Decennial Census, Washington Office of Financial Management (OFM) Historic Population Data and April 1 Population Estimates. September 24, 2025 Planning Commission Meeting 34 Figure 3 does not include children or retired individuals who are not working. 5,521 individuals work in Port Angeles, but do not live within city limits. These people may live in Clallam County, Sequim, or closer to Port Townsend. 5,430 live in Port Angeles and work elsewhere. This is inclusive of individuals who work from home or commute to Tacoma, Seattle, or Olympia. 3,581 individuals work and live within Port Angeles city limits. Compared with other cities both nearby and in Kitsap County, Port Angeles has a relatively high share of workers who both live and work in the city. This indicates a relative balance of jobs to housing in the city and reflects Port Angeles’ status as the economic center of the northern Olympic Peninsula. The city’s relative isolation also likely contributes to this trend. HOUSING SUPPLY • There were 9,930 housing units in 2022, with almost three-quarters being single-unit buildings. Additionally, 9.4 percent were middle housing types, and 15 percent were multifamily apartments. • Large units with three or more bedrooms represent half of the city’s housing stock. • More than half of the housing in Port Angeles is old housing built before 1970. • The current rent in Port Angeles averages about $1,118 per month, while housing prices are approximately $452,961. • Since 2010, the median income in Port Angeles has risen by 35 percent, which is like the median gross rent increase of 34 percent. The home value has appreciated at a higher rate of 57 percent. • Since 2014, the rent vacancy rate has decreased significantly from ten to around three percent. Overall, 8.5 percent of housing units are unoccupied. 5,521 Work in Port Angeles, Live Elsewhere 5,430 Live in Port Angeles, Work Elsewhere 3,581 Live & work in Port Angeles Source: U.S. Census Bureau Longitudinal Employer-Household Dynamics (LEHD) via Census OnTheMap Figure 3. Commute Patterns in Port Angeles and Clallam County, 2022 September 24, 2025 Planning Commission Meeting 35 To purchase a home at the average home price of $452,961, a household would need to make about $114,000, which is 89 percent higher than the median income (see Figure 4). The median household earning $60,212 could afford to purchase a house costing $239,107, assuming current interest rates, a 20 percent downpayment, and a 30-year mortgage. Therefore, there is a gap of about $213,596 between what the average household in Port Angeles could afford and the average prices of homes in the city. Figure 4 shows the home price that households at various income levels in Port Angeles could afford (in grey). The horizontal dashed lines show the median sales price and median household income in Port Angeles. Sources: 2010-2022 American Community Survey 5-Year Estimates, Table S2503; Zillow Home Value Figure 4. Housing Affordability at Various Income Levels in Port Angeles, 2022 September 24, 2025 Planning Commission Meeting 36 Figure 5 demonstrates the change of Census-reported total and occupied unit counts and vacancy rates in Port Angeles over the past decade for both ownership and rental units. Although ownership vacancy rates have remained relatively consistent over time, rental vacancy rates have dropped steadily since 2014, from 10 percent in 2014 to 2.8 percent in 2022. This trend indicates increased demand for apartments in the city, and likely an undersupply. Low vacancy rates can make it harder for workers to find housing, making it harder for local employers to recruit and retain workers, in addition to driving up housing costs and exacerbating housing insecurity overall. The current vacancy rates for both rental and ownership housing are below what is considered a “healthy” vacancy rate, which is between five and six percent. This demonstrates a need for more housing production in the city to keep up with demand and help improve housing affordability. GAP ANALYSIS • The availability of very low- and extremely low-income housing units is inadequate to serve the current number of households in those income brackets. • There is a gap between household size and unit size: there are more smaller households than smaller units available. Source: U.S. Census Bureau 2022 American Community Survey 5-Year Estimates, Table DP0 Figure 5. Housing Vacancy Rates in Port Angeles, 2012-2022 September 24, 2025 Planning Commission Meeting 37 • The availability of median priced and above housing units is inadequate to serve the current number of households in those income brackets. Figure 6 illustrates the number of available housing units in red hatch mark lines and households in the blue bar graph. If the hashed marks are above the blue bar, this illustrates a surplus of available housing for that income bracket. Both figures 6 and 7 are sorted by area median income level. The charts demonstrate a lack of available housing for both <30-50% AMI and >100% AMI. This lack of housing has three outcomes: 1. Those experiencing the housing deficit at below 50% AMI cannot afford the available housing. Source: 2016-2020 HUD Comprehensive Housing Affordability Strategy (CHAS), WA Department of Commerce Housing Planning for All Tool (HAPT). Figure 6. Comparison of Housing Units and Household Incomes in Port Angeles, 2020 664 605 241 85 63 13 173 299 0-30%30-50%50-80%80-100%100-120%120% +Emergency Housing PSH non PSH Source: WA Department of Commerce Housing Planning for All Tool (HAPT). Figure 7. Port Angeles Target Housing Units by Income, 2024-2045 September 24, 2025 Planning Commission Meeting 38 2. Those experiencing a housing deficit at above 100% AMI must occupy housing below what is potentially attainable and not suited for their income. 3. Those residents between 50 and 80% AMI are having difficulty finding attainable housing because of existing deficits in other AMI brackets. Ultimately the 50-80% AMI residents housing availability is being compressed by residents who are experiencing a lack of available housing in their income bracket. LAND CAPACITY ANALYSIS While Port Angeles has sufficient land capacity to meet the total housing unit target, there is a shortfall of land for units that can accommodate low-income households when assessing which households these units could serve. Therefore, to ensure capacity for low-income households, the city will need to consider land use and zoning changes alongside the adoption of this Comprehensive Plan update. (See Appendix C for the Land Capacity Analysis Map) September 24, 2025 Planning Commission Meeting 39 P ROJECT G OALS City of Port Angeles Housing Goals Through the City’s stakeholder advisory committee, the internal staff Comprehensive Plan steering committee, and public engagement efforts, we have collaboratively identified five housing goals. Goal G-6X: Housing Supply: Provide a sufficient supply, variety, availability, and attainability of housing to meet community needs. Goal G-6X: Housing Affordability and Access: Reduce disparities in housing access and mitigate displacement impacts to vulnerable communities. Goal G-6X: Housing Quality: Encourage the design, construction, and maintenance of housing to keep homes in good condition. Goal – 6X Collaboration for Affordable Housing: Partner with Clallam County, Peninsula Housing Authority, and other entities and programs to increase the economic diversity of the housing supply. Goal - 6X: Use the Housing Action Plan as a guide and implementation tool for City actions in support of providing available State-supported financing options, municipal code revisions that promote innovative housing products and designs, incentive zoning, and renovation/rehabilitation of the City’s existing housing stock. PU BLIC E NGAGEMENT To be added at a later date September 24, 2025 Planning Commission Meeting 40 H OUSING D EVELOPMENT S TRATEGIES TASK 1: HOUSING PIPELINE PROJECT Strategy Addressed: Increase housing supply City Council Strategic Focus Area: #3 Goal B The City of Port Angeles has initiated the Housing Pipeline Pilot Project to address the shortage of multifamily apartments, increase the affordable housing supply, and to encourage density in the downtown area while creating a commercially oriented corridor This initiative is designed to eliminate barriers such as land acquisition, site development challenges, and design work. The City is committed to engaging with partners, land developers, and community members as it proactively seeks to provide affordable housing and address the housing gap. The Housing Pipeline Pilot Project will utilize state grants and City funds to develop a 14,000-square-foot lot located at 935 W 10th Street. This property is well-suited for development due to its location at the intersection of 10th and C Streets, which offers excellent access to public transportation. The lot is already served by utilities, and its commercial zoning permits high-density residential development, making it an ideal site for a significant number of housing units. The City will either sell the site at a nominal amount or enter a long-term land lease; however, potential developers must go through a Request for Proposal (RFP) process, which will be determined at the discretion of the City Council. The project must ensure that housing is available to individuals earning below 80% of the area's median income and will remain affordable for a minimum of 40 years, if not longer. The Housing Pipeline Pilot Project will serve as a demonstration initiative to show that a multi-story, multifamily housing development, maximizing land capacity, can be successfully achieved while fostering a neighborhood with diverse housing types. Responsible Party: The City Manager’s Office and the Community and Economic Development Department. Funding Sources: Washington State Housing Trust Fund, Connecting Housing to Infrastructure Program (CHIP), Affordable Housing Sales and Use Tax Funds. Figure 8. 935 W 10th Street Site September 24, 2025 Planning Commission Meeting 41 TASK 2: MULTIFAMILY B UILDERS T RAINING Strategy Addressed: Increase housing supply City Council Strategic Focus Area: #3 Goal C In partnership with the North Peninsula Builders Association, the Port Angeles Realtors Association, and Peninsula College, the City of Port Angeles will facilitate a workshop series tailored to prospective multifamily housing contractors and vendors. The initiative responds to the growing need for quality housing in the community, particularly as the construction of multifamily apartments has recently been dominated by the Peninsula Housing Authority and Peninsula Behavioral Health. There has been a noticeable absence of large new market-rate apartment developments in Port Angeles for several years. The workshop series will address this gap by providing valuable training and resources to local builders, guiding them on best practices for constructing multifamily housing that effectively meets the diverse needs of the Port Angeles community. The series will specifically focus on designs and construction methods suitable for populations with incomes between 0% and 120% of the area median income, emphasizing affordability and accessibility. Participants can expect expert-led sessions that cover regulatory requirements, innovative building techniques, and community engagement strategies, all aimed at fostering a collaborative approach to housing development in Port Angeles. This initiative represents a proactive step towards creating a more inclusive and sustainable housing landscape for Port Angeles residents. Responsible Party: The Community and Economic Development and the Public Works and Utilities Departments. Funding Sources: To be determined. Figure 9. 306 W 1st Street Multifamily Residential Building September 24, 2025 Planning Commission Meeting 42 TASK 3: FEE WAIVER PROGRAM Strategy Addressed: Increase the variety of housing type City Council Strategic Focus Area: Not yet addressed in the City of Port Angeles Strategic Plan The permit fee waiver program is part of the City's existing affordable housing initiatives, which were implemented in November 2023 (Ordinance No. 3723). This program will be managed until 2033, at which point the Port Angeles City Council will evaluate its effectiveness. The fee waiver program (FWP) eliminates 25 building and land use permit fees, designed to encourage the development of infill, multifamily, and affordable housing units in Port Angeles. Additionally, it aims to lower financial barriers, making development more accessible for residents, builders, and developers. This fee waiver program is among the most successful city-run affordable housing initiatives, having saved residents, builders, and developers a total of $479,005.98 to date (August 2025). In the coming years, city staff will be looking for innovative ways to streamline and advance the fee waiver program. Responsible Party: The Community Economic Development, Fire, and the Public Works and Utilities Departments. Funding Sources: N/A Figure 10: Fee Wavier Brochure September 24, 2025 Planning Commission Meeting 43 TASK 4: CO-LIVING HOUSING MUNICIPAL CODE UPDATE Strategy Addressed: Increase the variety of housing types City Council Strategic Focus Area: Not yet addressed in the City of Port Angeles Strategic Plan "Co-living housing" refers to a type of residential development that includes individually rented and lockable sleeping units, each providing living and sleeping space. Residents share kitchen facilities and potentially restroom facilities with others in the building. According to RCW 36.70A.535, the City of Port Angeles will be updating its municipal code to permit co-living as an acceptable use on any lot within an urban growth area that allows for a minimum of six residential units. This includes lots zoned for mixed-use development. As housing in Washington has become increasingly unaffordable, interest in co-living arrangements has grown significantly. Co-living offers several benefits: • It provides market-rate, non-subsidized rental homes that are affordable for people in the workforce earning as little as 50 percent of the area median income. For instance, older co- living units in the Spokane area can cost as low as $350 per month, while some new co-living units in the Puget Sound suburbs rent for around $1,000 per month. • It presents a low-cost, private alternative for individuals seeking to avoid traditional roommate situations. • It encourages community-building through shared living spaces that foster social connections. • It increases affordable housing options in high-opportunity neighborhoods with good transportation access. • It helps reduce energy demand, as co-living units are typically smaller, and the development of this type can lessen commutes and urban sprawl. Figure 11. Co-living Sample Floor Plan September 24, 2025 Planning Commission Meeting 44 Modern co-living buildings are often of high quality and may feature attractive amenities. Stakeholders have noted that co-living is a fantastic option for seniors looking to downsize, and it helps build community and lessen feelings of loneliness for people of all ages. Co-living arrangements are particularly suitable for urban infill development on narrow lots since the rent per square foot tends to be higher than that of other multifamily building types. Like any development, co-living buildings must comply with all relevant building, fire, and life safety codes. For these reasons and more, co-living is an effective approach to addressing the housing needs in the state. Responsible Party: The Community and Economic Development Department. Funding Sources: N/A September 24, 2025 Planning Commission Meeting 45 TASK 5: PERMIT READY PLANS Strategy Addressed: Increase the variety of housing types City Council Strategic Focus Area: Not yet addressed in the City of Port Angeles Strategic Plan In 2023, the City of Port Angeles utilized the Housing Action Plan Implementation (HAPI) grant to develop a set of permit-ready plans. These pre-designed building and engineering plans are available to residents of Port Angeles free of charge. The permit-ready plans simplify the permitting process and eliminate fees associated with plan development and review. The city offers four small lot home designs, ranging from 400 to 800 square feet, which include both single-story and two-story options. These small home designs can be used as Accessory Dwelling Units (ADUs) or as primary residences. Additionally, there is a Townhome Unit Plan with a total footprint of 2,543 square feet. Residents and developers within the Port Angeles city limits can access permit-ready plans for free, benefit from an expedited permit review process, and receive a waiver for permit fees. In the coming years, the City will update these plans to align with the evolving building and energy code requirements. The City will continue to engage in discussions with local builders and organizations, to explore creating more permit-ready plans for the community. In the future, the City will expedite the building permit review process to make Permit Ready Plans an over-the-counter process, allowing applicants to obtain approval within 24 hours. In the coming years, the City will work towards building a permit ready plan library and gathering resources to make these homes easier to build and finance. City staff will also improve the permit ready plan application process by tracking how long and how much money it takes to build these plans. Responsible Party: Requires all departments due to the review of the permit ready plans. Funding Sources: The Washington State Department of Commerce Housing Action Plan Implementation Grant. Figure 12. City of Port Angeles Permit Ready Plan Townhouse Model September 24, 2025 Planning Commission Meeting 46 TASK 6: MULTIFAMILY PROPERTY TAX EXEMPTION (MFTE) Strategy Addressed: Increase the supply of housing affordable to all income levels City Council Strategic Focus Area: Not yet addressed in the City of Port Angeles Strategic Plan The City of Port Angeles will continue to operate the Multifamily Property Tax Exemption (MFTE) program in collaboration with the Clallam County Assessor's office. Cities and counties implement MFTE programs to support local housing objectives by waiving property taxes. According to Chapter 84.14 RCW, local governments can provide exemptions for new construction, conversion, and rehabilitation of multifamily residential properties that contain at least four units. Under these exemptions, property owners are exempt from paying property taxes on residential improvements for a specified number of years. However, property owners are still responsible for paying taxes on the land and any non-residential improvements, such as the commercial portions of mixed-use buildings. The Multifamily Property Tax Exemption (MFTE) in Port Angeles provides qualified multifamily housing properties with a property tax exemption on the value of residential improvements for a duration of 8, 12, or 20 years (for self-help homeownership programs). This initiative, offered by the City of Port Angeles, aims to promote the development of more multifamily and affordable housing, thereby reducing barriers to housing development. In the 2025 legislative session, House Bill 1494 (Chapter 164, Laws of 2025) was passed. This bill implements recommendations from Commerce’s 2023 Legislative report to improve the multifamily tax exemption (MFTE) program. The bill extends the 20-year rental program to 70 cities. It also requires jurisdictions to follow anti-displacement requirements in their MFTE program and strengthens the tools for jurisdictions to enforce compliance from participants. The Washington State Department of Commerce will update MFTE guidance by spring 2026, and the City of Port Angeles will adopt any necessary updates to the MFTE program. Responsible Party: The Community Economic Development Department and the Clallam County Assessor. Funding Source: N/A Figure 13. Multifamily Duplexes at 1012 W 17th Street September 24, 2025 Planning Commission Meeting 47 TASK 7: SALES AND USE TAX GRANTS Strategy Addressed: Increase the housing affordable to all income levels City Council Strategic Focus Area: Not yet addressed in the City of Port Angeles Strategic Plan Pursuant to RCW 82.14.530, the Port Angeles City Council adopted ordinance 3655 authorizing a Sales and Use Tax for affordable housing in the amount of 1/10th of 0.01%. Voters passed this initiative, and it took effect on April 1, 2020. Affordable Housing Sales and Use Taxes are collected upon the transaction of all retail sales inside the Port Angeles City limits. Affordable Housing Sales and Use Tax Grants must be used to assist with constructing, procuring, and stabilizing affordable housing and housing-related assistance programs for households with incomes at or below 60% of the area median income (AMI). In practice, Affordable Housing Sales and Use Tax Grants must be utilized for various purposes aimed at enhancing affordable housing options. Examples of the types of housing that may be funded include emergency housing, transitional housing, supportive housing, and the addition of new affordable housing units within existing structures. Facilities that provide housing-related services and acquire land for these initiatives are also eligible for funding. Additionally, the grants can support the construction or acquisition of properties intended for use in behavioral health-related facilities, as well as land acquisition for these purposes. Furthermore, the funding can cover the operational and maintenance costs of new affordable housing units and facilities where housing-related programs are offered, as well as newly constructed evaluation and treatment centers. It is important to note that the affordable housing and facilities providing these essential programs are specifically directed to assist individuals from certain population groups. This includes those with behavioral health disabilities, veterans, senior citizens, individuals who are homeless or at risk of becoming homeless, unaccompanied homeless youth or young adults, persons with disabilities, and survivors of domestic violence, all of whom have incomes at or below sixty percent of the median income within the jurisdiction imposing the tax. In the coming years, the City of Port Angeles will be working with local non-profits and religious organizations. Responsible Party: The Community and Economic Development and the Finance Departments Funding Source: 1/10 of 1% of the City of Port Angeles Sales and Use Tax as authorized through RCW 82.14.530 and RCW 82.14.540. Figure 14. Rendering of 4PA’s Touchstone Campus Tiny Homes September 24, 2025 Planning Commission Meeting 48 TASK 8: COPA WEATHERIZATION PROGRAM Strategy Addressed: Support preservation of existing housing City Council Strategic Focus Area: Not yet addressed in the City of Port Angeles Strategic Plan The City of Port Angeles offers a free weatherization program for low-income households. This program provides increased incentives for both homeowners and tenants. Weatherization is a valuable investment that can significantly enhance the comfort and efficiency of your home. By properly sealing gaps, adding insulation, and making necessary upgrades, you can create a more consistent indoor temperature year-round. This not only reduces the strain on your heating and cooling systems, ultimately lowering your energy bills, but also contributes to a healthier living environment by minimizing drafts and reducing moisture buildup. Additionally, weatherization can increase the lifespan of your HVAC systems and boost your home's resale value, making it a smart choice for any homeowner looking to blend cost savings with long-term benefits. Many homeowners in Port Angeles have benefited from free or reduced-cost upgrades through this initiative. If you are approved for the Free Weatherization Program, you will be eligible for the following benefits: • Windows: Up to $20 per square foot of glass • Insulation: Up to 100% coverage of the cost for qualifying installations • Ductless Heat Pump: Up to $6,000 toward the installation of a qualifying unit • Heat Pump Water Heater: Up to $3,000 for a qualifying water heater In the coming years, the City of Port Angeles will work closely with local weatherization service providers to do more direct outreach to community members that qualify for this program. Responsible Party: The Public Works and Utilities Department. Funding Source: Bonneville Power Administration. Figure 15: Weatherization Graphic September 24, 2025 Planning Commission Meeting 49 TASK 9: DOWN PAYMENT ASSISTANCE HOME BUYERS GAP PROGRAM Strategy Addressed: Mitigate economic displacement pressures City Council Strategic Focus Area: Not yet addressed in the City of Port Angeles Strategic Plan Port Angeles has a significant population of renters compared to homeowners. In 2022, 44% of residents in Port Angeles rented their homes, while the average for Washington State was 36%, and Clallam County had 27%. Additionally, there is a noticeable disparity between renters and homeowners regarding the number of households that are cost-burdened (see appendix C). 24% of renter-occupied households are severely cost-burdened, while 27% are cost-burdened. In contrast, 9% of owner-occupied units are severely cost-burdened, and 17% are cost-burdened (see Appendix B: Housing Needs Assessment). The City aims to promote the development of subsidized rental units in Port Angeles for the city's lowest-income households while also fostering homeownership within our community. In the coming years, the City of Port Angeles will be working with community housing partners, the Port Angeles Association of Realtors, and local financial institutions providing home loans to find innovative ways to help more community members achieve homeownership within the city. Responsible Party: Partnership with local banks and homeownership stakeholders Funding Source: N/A Figure 16. Clallam County Attainable Workforce Housing Summit September 24, 2025 Planning Commission Meeting 50 TASK 10: CITY-WIDE HOMELESSNESS NAVIGATOR Strategy Addressed: Mitigate economic displacement pressures City Council Strategic Focus Area: #2 Goal B Measure 1 The City of Port Angeles has several programs to address homelessness. The Fire Department operates a community paramedic program, while the Police Department oversees the REdisCOVERY Program. The Parks Department is responsible for cleanup efforts on City-owned land. Additionally, the City relies heavily on partnerships with community-based organizations, including the North Olympic Healthcare Network, Olympic Medical Center, Olympic Peninsula Community Clinic, Peninsula Behavioral Health, Reflections Counseling, The Answer for Youth, Peninsula Housing Authority, 4PA, Serenity House, and the Clallam County Homelessness Taskforce. To assist community members facing housing instability, connect organizational efforts, and explore innovative solutions to reduce homelessness in the upcoming years, the City plans to hire a navigator. Responsible Party: The Parks and Recreation Department and the City Manager’s Office. Funding Source: A portion of the business licensing revenue Figure 17. Serenity House Homelessness Shelter Source: Serenity House of Clallam County September 24, 2025 Planning Commission Meeting 51 11. BLIGHTED PROPERTY REDUCTION STRATEGY Strategies Addressed: Increase Housing Supply City Council Strategic Focus Area: #3 Goal D Measures A, B, C,D Substandard and dangerous buildings pose significant risks to our community. When vacant properties are not properly secured, they become even more hazardous, as the public can easily access them. Such buildings may attract criminal activity, trespassers, trash, and debris. Additionally, squatters in these vacant structures can create fire hazards that pose a risk to everyone in the vicinity. It's important to note that a building being unoccupied is not inherently a violation. There are many reasons a property might be unoccupied, such as a homeowner living in another city part of the year, being in the process of moving, or having a house for sale. An unoccupied building is classified as a vacant structure. It becomes a code violation only if it is deemed "unsafe or unfit for human habitation or other authorized use" or if it qualifies as a nuisance property, as defined by city regulations. The city has broadened the definition of a vacant building to include properties that are unoccupied yet not visibly unsafe or unfit. The term "nuisance vacant building" or “blighted property” has been established to refer to properties that have two open violations for an extended period or those that have received six separate sanitation citations within a 12-month period. If these criteria are met, a Building Inspector can issue a vacant building notice for a property that is unoccupied but does not yet display visible signs of being unsafe or unfit from the outside. Source: Peninsula Daily News Figure 18. Razed Abandoned Building in the 200 Block of East Front Street September 24, 2025 Planning Commission Meeting 52 If a property owner is not responsive to the notice/red tag, then the City will explore corrective actions like: • Civil or criminal legal action. • Taking corrective action at the owner's expense. • The City may use eminent domain to purchase and redevelop the property. In addition to the nuisance vacant building/blighted property actions, the City will also explore additional property taxes on undeveloped land. City staff will explore connecting the blighted property reduction strategy with the existing low-income homeownership sweat equity programs like Habitat for Humanity of Clallam County, Peninsula Housing Authority, and the Olympic Housing Trust. The City of Port Angeles is both land-constrained and, in some areas, has limited utility capacity. We must use all available land to its full capacity. Responsible Party: The Police Code Enforcement, the Community and Economic Development, the Legal Department, and the Fire Departments. Funding Source: This action will generate funding September 24, 2025 Planning Commission Meeting 53 IM PLEMENTATION SCOPE + SCHEDULE This schedule is currently in draft form. The final schedule will be presented to Planning Commission for their review on October 22. Co-living Municipal Code Update 1. Identify existing conditions and which zones in the Port Angeles Municipal Code (PAMC) have the capacity for co-living. 2. Conduct public engagement through the Planning Commission presenting co-living municipal code update to the community. 3. Present the co-living municipal code update to the Planning Commission in a public hearing for recommendation to the City Council. 4. City Council will make the final decision in adopting the co-living municipal code update. Multifamily Builders Workshops 1. Secure Funding and Timelines: Identify and pursue funding sources to support the planning, facilitation, and delivery of the workshops. Establish a clear project timeline to guide key milestones and ensure the workshops are launched successfully and on schedule. 2. Establish Partnerships & Develop Curriculum Framework: Engage with key partners— including local builders, housing advocates, educational institutions, and industry associations—to collaborate on workshop planning. These partnerships will ensure that the curriculum reflects both local development challenges and opportunities. 3. Design a Multifamily Housing Curriculum: Work collaboratively to develop a workshop curriculum focused on the end-to-end process of multifamily housing development. Topics will include permitting pathways, design best practices, financing strategies, and construction planning—tailored to the needs of local builders and stakeholders. 4. Schedule and Promote Workshops: Select initial workshop dates with adequate lead time for promotion and outreach. Establish a consistent meeting cadence—such as monthly or quarterly—based on participant interest, facilitator availability, and alignment with broader housing development goals. Housing Pipeline Project 1. Community Outreach and Engagement: The City will host a public outreach session to gather community input on the future vision for the 935 W 10th Street site. Special efforts will be made to engage residents living near the C Street corridor to ensure their perspectives are included in the planning process. 2. Consultant Procurement: Request for Qualifications (RFQ): An RFQ will be issued to identify and select a qualified engineering and architectural consultant. The selected firm will lead predevelopment planning and site preparation activities. 3. Request for Proposals (RFP) Advertisement: The City will advertise a Request for Proposals (RFP) for the development of the 935 W 10th Street site. This process invites eligible organizations to submit comprehensive proposals for the site’s redevelopment. 4. Proposal Prioritization Criteria: City staff and the Port Angeles City Council will evaluate proposals based on their ability to deliver high-density housing and affordability for households earning 80% or less of the area median income (AMI). September 24, 2025 Planning Commission Meeting 54 5. Site Transfer Agreement: The City intends to transfer site control of 935 W 10th Street through a long-term land lease or at a nominal cost to the organization that presents the most impactful and community-aligned development proposal. 6. Program Evaluation and Replication: Upon completion of this project phase, the City will conduct a comprehensive review of the Housing Pipeline Project. This evaluation will assess outcomes, identify lessons learned, and explore the potential to replicate the model for future housing development efforts. Homeownership program 1. Community-Based Outreach and Partnership Building: The City will engage with community- based organizations to assess how best to address gaps in homeownership support programs. This outreach will help identify opportunities for collaboration and ensure any new City efforts are aligned with community needs and existing resources. 2. Down Payment Assistance Program Feasibility: The City will conduct a feasibility study to explore the potential for establishing a one-time down payment assistance program aimed at increasing homeownership among income-eligible households. 3. Exploring Financial Institution Partnerships: In lieu of a City-run program, the City will evaluate potential partnerships with local financial institutions to promote and expand access to down payment assistance for first-time homebuyers. City-Wide Homelessness Navigator 1. Position Hosting and Oversight: The City will establish a dedicated position focused on addressing homelessness and housing instability. The role will be housed within an appropriate City department to ensure coordination with related community services and programs. 2. Position Development: City leadership will draft the job description and define clear Key Performance Indicators (KPIs) to measure the effectiveness and impact of the role. These metrics will guide performance evaluation and continuous improvement. 3. Collaborative Engagement and Needs Assessment: Upon hiring, the Homelessness and Housing Instability Coordinator will participate regularly in the Clallam County Homelessness Task Force and collaborate with partner organizations already serving unhoused and housing-insecure populations. These efforts will support a coordinated approach to identifying and addressing service gaps within the system of care. Blighted Property Reduction Strategy 1. Identification of Blighted Properties: A coordinated effort will be undertaken to identify properties that exhibit signs of significant disrepair, prolonged vacancy, or pose a potential hazard to the surrounding community. 2. Assessment and Documentation: Once identified, properties will be assessed to determine whether they have been vacant or hazardous for an extended period (e.g., 18 months or more). Appropriate documentation will be collected to support further action. In certain cases, visible signage may be placed on the property to indicate its condition and encourage accountability. September 24, 2025 Planning Commission Meeting 55 3. Notification and Opportunity for Remediation: Property owners will be notified of the identified concerns and given the opportunity to take corrective measures. The goal is to encourage voluntary compliance and timely remediation. 4. Escalation for Non-Response or Inaction: If no meaningful progress is made within a reasonable period (e.g., six months), additional steps may be taken to address the property. These may include legal remedies, corrective actions initiated by the City, or other measures allowed under applicable regulations. 5. Outcome and Resolution: The process concludes when the property is either rehabilitated, actively undergoing redevelopment, or otherwise resolved in a manner that improves neighborhood conditions. September 24, 2025 Planning Commission Meeting 56 APPENDIX A : HOUSING POLICY ANALYSIS GOALS FROM THE 2019 HAP The 2019 HAP identified eleven housing task objectives to be achieved over the next ten years. City staff have made progress on each task: Task 1: Continue differential taxing rates for affordable housing purposes Maintain property tax exemptions – for multifamily projects that include affordable housing components within designated areas for up to 12 years for all improvements to new or rehabilitated building elements – but not land in accordance with RCW 84.14. Validate differential property tax rates and exemptions - following appropriate hearings and public comment in accordance with the provisions of the Growth Management Act (GMA) for a differential property tax rate assessment schedule that reflects actual land use and that will favor and tend to prime the use of land leases under community land trusts and affordable housing projects. Staff Progress: Task 1 to “continue differential taxing rates for affordable housing projects” has been accomplished. City Staff have maintained the multifamily property tax exemption (MFTE) program. Since the MFTE programs inception in 2019, the City has issued four final certificates for the multifamily tax exemption to multifamily projects in Port Angeles. Future Work: The City of Port Angeles has yet to evaluate property tax rates and exemptions for community land trusts and for affordable housing project. More research needs to be done to see what other jurisdictions have done to accomplish this taxation model. Task 2: Allow and encourage the use of innovative housing products and designs Maintain lot size averaging – subdividing land into parcels that may be smaller than the minimum lot specified in the zoning district so long as the average of all the lot sizes created remains equal to or above the minimum lot size. Lot size averaging is like cluster development in that it makes efficient use of the developable portions of a site building to the allowable density while protecting environmental and other features and providing housing type developments that are compatible with the surrounding neighborhood. Implement Cottage Housing Development (CHD) – that allows small lot single family housing developers to construct these types of housing products in feasible and appropriate single-family neighborhoods including Residential Single Family (RS-7, RS-9, and RS-11) zones where the added density will benefit from walkable distances to existing transit, school, employment, community facility, and other supporting services. Implement overlay districts – including Cottage Housing Development (CHD), Planned Residential Development (PRD), Planned Low Impact Development (PLID), Infill Overlay Zone (IOZ), Planned Industrial Development (PID), and Mixed Commercial Overlay (MCO) that reduce or remove unnecessary property setbacks, maximum site coverage allowances, and other restrictions that prevent the use of innovative, functional, and cost-effective land and housing products. September 24, 2025 Planning Commission Meeting 57 Update zoning and development regulations - to expand the definition of allowable innovative, functional, and cost-effective housing products such as duplex, attached single family, town or row houses, tandem houses, manor houses, congregate housing, micro housing, small efficiency dwelling units (SEDU), and mixed-use structures among others in the Residential Medium Density (RMD) and Residential High Density (RHD) zones. Staff Progress: Staff have accomplished all the subtasks in maintaining lot size averaging, implementing cottage housing developments, created overlay zones (mixed commercial, infill, planned residential development, planned industrial development, and planned low impact development overlay zones), and updated zoning and development regulations. Future Work: After the adoption of the Vision 2045 comprehensive plan and the Housing Action Plan, City Staff will be working to update the zoning code and design standards to better meet the needs of our community members. Task 3: Implement Accessory Residential Unit (ARU) program Note: The 2019 HAP uses the term “Accessory Residential Unit or ARU”, and the Port Angeles Municipal Code uses the term “Accessory Dwelling Unit or ADU” interchangeably. Amend existing ARU ordinance to remove homeowner occupant requirement. Continue deferring permit and planning review fees, utility connection charges, and impact fees for affordable ARUs – until such time as the ADU affordable units, if ever, are sold or rented in the marketplace as market rate housing at which time the deferred fees will be repaid to the Port Angeles Affordable Housing Fund (AHF). Pre-approve ARU design manual and prototypes – using kit housing projects like Lowe’s Katrina Cottages and including local architect’s ADU plans per Seattle and Santa Cruz, California example. Establish an ARU low-cost loan program – working with local lenders per Craft3 or First Federal. Staff Progress: At the City of Port Angeles, we now refer to Accessory Residential Units (ARUs) as Accessory Dwelling Units (ADUs). In November 2023, the Port Angeles City Council permanently waived building permit fees associated with affordable, infill and multifamily housing projects. The goal of this program is to reduce financial barriers and make development more affordable and accessible for residents, builders and developers alike. Permit fee waivers are now offered for 15 different housing types, including qualifying single-family household projects in the same year, City staff collaborated with an architectural firm to create permit-ready plans for Accessory Dwelling Units (ADUs) and townhomes. This program reduces the burden of cost and time spent by potential applicants. Pre-designed building and engineering plans, which are available completely free of charge, streamline the permit process and eliminate fees associated with plan development and review. You can choose from four small lot home designs (400 to 800 sq ft), including both single-story and two-story plans. We also have a townhome permit ready plan design. The permit ready plans and fee waivers make ADUs and infill housing more affordable and attainable for Port Angeles community members. September 24, 2025 Planning Commission Meeting 58 Future Work: The City has not created or partnered with local lenders to create an ADU loan program. Task 4: Implement incentive zoning – noncash density off-sets Maintain incentive zoning allowance – providing additional (height) floor, reduced parking ratios, and increased site coverage for mixed-use projects that provide on or off-site affordable housing units within appropriate land use districts and overlays such as the Planned Residential Development (PRD), Planned Low Impact Development (PLID), Mixed Commercial Overlay (MCO), and Infill Overlay Zone (IOZ). Design for ground floor retail – but allow interim or temporary non-retail uses until the market can sustain retail tenants in all commercial and mixed-use zones including Commercial Neighborhood (CN), Community Shopping District (CSD), Commercial Arterial (CA), and Central Business District (CBD) as well as the Planned Residential Development (PRD), Planned Low Impact Development (PLID), Mixed Commercial Overlay (MCO), and Infill Overlay Zone (IOZ). Evaluate transfer development rights (TDR) housing credits – for the feasibility of identifying sending and receiving zones for transferring housing density credit units when the increased density allowed by providing affordable housing units within a mixed-use project will not be provided on- site. Allow fee-in-lieu – provide a fee-in-lieu program where developer pays into the Port Angeles Affordable Housing Fund (AHF) the equivalent amount for the development of an affordable housing unit when the affordable housing units will not be provided on-site. Staff Progress: The Port Angeles Municipal Code (PAMC) maintains incentive zoning allowances. Building height bonuses, parking reduction tools and increased site coverage for mixed-use projects. The PAMC also allows for ground floor retail in residential buildings in the listed zones and overlays. The City has not adopted a transfer development rights housing credits or a fee-in-lieu program. The existing comprehensive fee waiver program does not collect building or development fees for ADUs, duplexes, triplexes, fourplexes, cottage housing, caretaker units, apartments/multifamily housing, townhomes, group homes, permanent supportive housing, transitional housing, emergency housing, adult family housing, single family homes in self-help programs (Habitat for Humanity and Peninsula Housing Authority), and single-family homes of applicants experiencing economic hardship. We will not be doing a fee-in-lieu program because any permitting fees that we do receive need to be used for operational expenses. Likewise, we will not be implementing transfer development rights housing credits because the same density incentives are achieved through incentive zoning. Task 5: Implement incentive zoning – cash offsets Defer permit and planning review fees for affordable units – until such time as the affordable units, if ever, are sold or rented in the marketplace as market rate housing at which time the deferred fees will be repaid to the Port Angeles Affordable Housing Fund (AHF). September 24, 2025 Planning Commission Meeting 59 Defer utility connection charges for affordable units – until such time as the affordable units, if ever, are sold or rented in the marketplace as market rate housing at which time the deferred utility connection charges will be repaid to the AHF. Defer Park, traffic, and school impact fees – if adopted, until such time as the affordable units, if ever, are sold or rented in the marketplace as market rate housing at which time the deferred impact fees will be repaid to the AHF. Staff Progress: Since the 2018 Housing Action Plan the City of Port Angeles has gotten rid of all parks, traffic, school, and fire impact fees. The fee waiver program waives permit, planning, most public works fees for the housing types described above. Task 6: Package a demonstration project site Package a demonstration project site - to create a prototype mixed-use project for market rate and affordable units in the downtown, medical center, and/or high-density residential neighborhood. Utilize the Jefferson/Clallam County Community Land Trust – including the management organization, bylaws, lease rates, and other provisions for all units – market rate and affordable – and the equity. Staff Progress: The City has purchased a property at 935 W 10th Street as a part of the Housing Pipeline Project (see the recommendation section for more information). This land acquisition will work to build dense multifamily housing in a walkable neighborhood. Additionally, the City is starting to have conversations with the Olympic Housing Trust and learning about ways to support their organization and the community land trust model. Task 7: Initiate a catalytic mixed-use project with affordable units Create development solutions for the property – that develop the property under alternative scenarios using the noncash density incentives provided for additional height, reduced parking ratio, and increased site coverage allowances. Assess the economic feasibility of the preferred concepts – to determine land value, construction cost, indirect development cost – and the impact of noncash and cash off-set incentives, Assess partnership opportunities – including purchase of the land for a land trust by a nonprofit entity, and the purchase of some affordable units by the Peninsula Housing Authority for very low- income households. Assess and mitigate environmental impacts – to assess on and off-site stormwater run-off, design aesthetics, and urban amenities. Conduct public hearings and approve a pre-packaged plan solution – including appropriate property- specific development agreements, design guidelines, and SEPA MDNS or EIS mitigation documents. September 24, 2025 Planning Commission Meeting 60 Develop a competitive process – governing the sale or long-term lease and development of the property for the preferred and pre-approved design/develop solution. Judge proposals – by fixing the asking price for the property and ranking proposals on design merits and beneficial impacts on the city’s affordable housing objectives. Award project – following public hearings and review procedures, award the project to the proposal ranked to have the most design merit and beneficial affordable housing development impacts on the property, downtown, and city. Staff Progress: These tasks have not been accomplished yet. We are planning on accomplishing this task in the Housing Pipeline project through 2030 (see the recommendation section for more information). Task 8: Establish a Port Angeles Affordable Housing Fund (AHF) Conduct a public survey of voter households to determine public support – for the use of an allocation from General Funds (GF), an allocation from the Real Estate Excise Tax (REET), a special Property Tax Levy (PTL) or limited levy lid lift dedicated to affordable housing and/or a countywide Local Option Sales Tax (LOST) dedicated to affordable housing to provide affordable housing cash off-sets and match fee-in-lieu payments, public and non-profit donations, grants, loans, and other funding measures with which to implement pro-active housing programs and projects. Submit and approve a financing mechanism(s) – based on the results of the survey, submit referendums necessary to create a revolving capital fund necessary for implementing pro-active housing programs and projects. Capitalize the revenues – with which to initiate acquisitions, prime infrastructure development, conduct RFP design/develop competitions, and other implementing actions appropriate to the proposed pro-active housing programs and projects. Partner with a management entity – for implementation to a new or existing nonprofit housing agency such as Peninsula Housing Authority. Staff Progress: The Sales and Use Tax fund and the New Improvement and Community Enhancement (NICE) neighborhood fund are used to capitalize on the revenues for affordable housing developments and infrastructure improvements. Additionally, as the City has sent out survey questions regarding housing funding. The housing pipeline project will partner with a management entity for the new housing stock that is created. Task 9: Refinance overextended households Using the Port Angeles Affordable Housing Fund (AHF) and the Housing Rehabilitation Fund, establish an affordable housing deferred loan or shared equity program where the eligible homeowner’s house is acquired then sold back to the homeowner under terms that the homeowner can afford remaining within the 30% of gross income devoted to housing occupancy costs. Where necessary and appropriate, utilize grants, loans, limited and land trusts, reverse mortgages, and September 24, 2025 Planning Commission Meeting 61 other refinancing terms that will allow the homeowner to remain resident in the house, keep the house in viable shape, and where appropriate, retain an affordable price or terms so that the unit can be resold at a future time as an affordable housing unit. • Identify homeowners – who would be eligible and capable of participating in the shared or deferred equity-refinancing program. • Identify income and financial capability – of the occupants to create feasible and appropriate refinancing terms using grants, low and no-interest loans, land trusts, and shared or deferred equity approaches. • Create performance criteria governing refinancing packages – necessary to guarantee homeowner equity and financial solvency, while repaying the Port Angeles Affordable Housing Fund (AHF) when the house is ultimately sold or inherited and/or retaining the housing unit in the affordable housing supply to be resold in the future to eligible low-income households. • Assign a management entity – capable of monitoring compliance with the refinanced mortgage terms and the eventual sale and repayment, or sale and resale of an affordable unit in the market. • Create a housing loan trust – able to fund refinancing packages and hold the loan or equity or land title in trust until such time as the house is sold and the loan is redeemed in full, or the house is resold under a limited or shared equity approach. Staff Progress: The City does not act as the direct contact for programs related to refinancing mortgages on overextended households. Future Work: The City will partner with local banks and community organizations to refer overextended households to those existing programs. Task 10: Renovate (and possibly acquire) eligible housing with shared and limited equity loan programs Using the Port Angeles Affordable Housing Fund (AHF) and the Housing Rehabilitation Fund, as well as FHA 203(k) and HomeStyle Fannie Mae loans establish a home acquisition, rehabilitation, and deferred loan or shared or limited equity program including where the qualifying household and eligible house is refurbished (and potentially acquired) and the cost or loan is deferred for payment to when the house is sold or resold to the occupant with land leases and the land equity is deferred or used to reduce payment terms to allow the current (or new) occupant to continue to reside in the house with current home payments. • Identify homeowners – who would be eligible and capable of participating in the rehabilitation and shared or deferred equity program. • Identify rehabilitation program requirements – including the potential number of housing projects, deferred or limited equity program participants, and required number and skill of renovation contractors or agents including occupants (and buyers) capable of performing self-help improvements or “sweat equity”. September 24, 2025 Planning Commission Meeting 62 • Create performance criteria governing contractor selection and oversight – necessary to warrant quality work, timely work schedules, bonded workers and project sites, and other rehabilitation program particulars including by homeowner/buyer self-help participants. • Create a management entity – capable of overseeing rehabilitation work, contract compliance, and the shared or deferred or limited equity program. • Create a housing loan trust – using the Port Angeles Affordable Housing Fund (AHF) to fund rehabilitation and hold the loan or equity in trust until such time as the house is sold and the loan is redeemed in full, or the house is resold under a limited or shared equity approach. Staff Progress: The City relies on the existing programs offered by Habitat for Humanity of Clallam County and Peninsula Housing Authority. Those programs both offer housing rehab and sweat equity programs for homeownership. The City of Port Angeles has existing residential and commercial rebates and conservation program as well as weatherization improvements for low-income households. Task 11: Issue periodic reports and update the Housing Action Plan on a frequent basis Conduct implementation progress assessments to review action on projects and policies identified in this Housing Action Plan and measure the following: • Accomplishment of the strategies - listed in the action plan and the impact the strategies are having on housing costs. • Number of affordable units built - by public, nonprofit, and private sponsors over the measuring time period. • Turnover rates realized in the housing market - for all value of housing including affordable value ranges during the measuring time period. • Comparison with housing census statistics - for percent of income required for housing costs, number, and percent of households in poverty and housing status. • Public satisfaction - with housing conditions in general and perception of their ability to buy or rent a quality affordable housing unit. Make revisions or adjustments necessary - to improve methods, assign responsibilities, or take other measures necessary to be effective in the market based on the progress assessment findings. Staff Progress: This Housing Action Plan Periodic Update accomplished Task 11 as it provides detailed data and updated strategies to meet our housing needs. A subsequent review will occur in 2030. September 24, 2025 Planning Commission Meeting 63 APPENDIX B : HOUSING NEEDS ASSESSMENT This appendix is currently in draft form. The Housing Needs Assessment will be added to the final document. September 24, 2025 Planning Commission Meeting 64 APPENDIX C : LAND CAPACITY ANALYSIS MAP September 24, 2025 Planning Commission Meeting 65 September 24, 2025 Planning Commission Meeting 66 APPENDIX D : PORT ANGELES HOUSING COST BURDEN CHARTS Household Income as a Percentage of AMI by Tenure in Port Angeles, 2010 and 2020 Source: 2006-2010, 2016-2020 HUD Comprehensive Housing Affordability Strategy (CHAS) Cost Burdened Households by Tenure in Port Angeles, 2020 Source: 2016-2020 HUD Comprehensive Housing Affordability Strategy (CHAS) September 24, 2025 Planning Commission Meeting 67 Cost Burden and Household Income in Port Angeles, 2020 Source: 2016-2020 HUD Comprehensive Housing Affordability Strategy (CHAS) September 24, 2025 Planning Commission Meeting 68 DATE: September 24th, 2025 TO: Planning Commission FROM: Angel Torres RE: Comprehensive Plan Update: Public Comment MEMORANDUM I. INTRODUCTION This memorandum summarizes the recurring themes identified through the Vision 2045 Community Engagement Program. The purpose of this review is twofold: first, to evaluate how the current Draft Comprehensive Plan (May 2025) aligns with the community's priorities and concerns; and second, to identify opportunities where the Plan can be further refined or strengthened based on this feedback. Supporting documentation is attached in Appendix A (Public Comment Analysis and Matrix), Appendix B (Community Engagement Program Summary). II. SUMMARY OF PUBLIC ENGAGEMENT & RECURRING THEMES The Vision 2045 program utilized a broad set of strategies (detailed in Appendix B) to ensure inclusive outreach, prioritizing historically underrepresented groups. To achieve this, the City employed a broad set of engagement methods: Engagement Overview Engagement Activity Details Citywide Visioning Survey • Conducted online in June 2025 to gather public comment on the first draft of the Comprehensive Plan. • Utility bill insert included a neighborhood mapping activity mailed to all City of Port Angeles utility customers to help identify and reorganize neighborhood distinctions. Stakeholder Advisory Committee representing agencies, employers, and residents. • Cross-section of local agencies, employers, and residents. Meetings held: June 17, 2024; October 22, 2024; December 10, 2024; February 25, 2025; May 27, 2025. Targeted Interviews with developers, service providers, and community leaders. • Focused discussions with community leaders, developers, and service providers. • Housing stakeholders: September–October 2024. • Transportation stakeholders: October–November 2024. • Economic development stakeholders: findings summarized in report dated January 3, 2025. Storefront Studio downtown offering drop-in participation and workshops • Hosted September 23–25, 2024 in downtown Port Angeles. • Included drop-in hours for informal discussion, interactive displays, and evening workshops on key topics. September 24, 2025 Planning Commission Meeting 69 Public Workshops and Commission Meetings with open testimony and discussion. • EIS Public Open House: April 17, 2025 (scope and environmental considerations). • Comprehensive Plan Open House: June 12, 2025 (review of first draft). • Neighborhood Walks: June 13, 2025 (walking discussions in select neighborhoods). Pop-Up Tabling at events, markets, and gathering spaces across the city. Conducted August 2024 at high-traffic community locations and events: Farmers Market, Concerts at the Pier, Clallam County Fair, Safeway, and The Hub PNW. Requested Community and Civic Group Outreach Port Angeles Association of Realtors Presentation: June 26, 2025; Aug 7, 2025 Kiwanis Comp Plan Presentation: Aug 7, 2025 Port Angeles Business Association: July 29, 2025 Recurring Themes Analysis of the feedback (detailed in Appendix A) validated several core planning challenges and revealed the following dominant themes: • Housing Crisis Urgency, Polarized Solutions: There is universal agreement that Port Angeles faces a housing crisis. However, the community is divided between those urgently demanding increased density and regulatory flexibility, and those advocating for the preservation of single-family neighborhood character and expressing concerns over the social impacts of growth. • The "Missing Middle" Priority: A clear and widespread demand exists for more housing options serving middle-income residents and the local workforce. • Support for "Gentle Density": While large-scale development remains controversial, there is broad support for Accessory Dwelling Units (ADUs), creative conversions of existing structures, and small-scale infill (e.g., tiny homes). • Frustration with Process and Costs: The complexity of the City’s permitting process and the overall costs associated with development were cited as major barriers to creating housing. • "Fix It First" Mentality: A strong desire to ensure infrastructure upgrades (roads, sidewalks, utilities) precede or are concurrent with new development. There is also a priority on redeveloping vacant or dilapidated properties before altering established neighborhoods. • Quality of Life is Paramount: Feedback reflected a deep commitment to maintaining Port Angeles’s character, emphasizing the importance of parks, trails, a vibrant and safe downtown, and environmental stewardship. III. ALIGNMENT AND OPPORTUNITES FOR REFINEMENT The current Draft Comprehensive Plan (Appendix C) incorporates goals and policies that address many of the themes identified above. This section details that alignment and highlights opportunities for further refinement suggested by the public feedback. September 24, 2025 Planning Commission Meeting 70 Summary of Policy Refinements Based on Public Comment Infill & Downtown Vitality (“Fix It First”) We Heard: Prioritize reuse of vacant land and strengthen downtown before expanding elsewhere. Alignment: The "Fix It First" mentality is reflected in the Land Use Element's consolidated goals for Downtown and Commercial Areas (Vol I, p. 39). The Draft Plan prioritizes infill through a specific policy promoting the development of vacant lots and underused surface parking lots (Vol I, p. 40). Furthermore, the establishment of a specific designation and vision for the Rayonier Mill site (Vol I, p. 44) addresses the desire to revitalize underutilized industrial land. Opportunities for Refinement: Public comments emphasized the need for infrastructure concurrency. While the Capital Facilities Element (CFE) addresses this, staff recommends strengthening the narrative linkage between the Land Use, Transportation, and Capital Facilities elements to explicitly demonstrate how growth is coordinated with infrastructure capacity. Quality Design & Streamlined Review We Heard: Concern about “cookie-cutter” density and frustration with permitting (“red tape”). Alignment: The Draft Plan addresses development costs and process concerns through several mechanisms. The proposed Community Design goal (Vol I, p. 30) and the commitment to "user-friendly and objective design standards" (Vol I, p. 31) are intended to streamline the review process. To directly address housing costs, the Plan proposes removing minimum off-street parking requirements for residential uses (Policy P-3G.02 [reloc.], Vol I, p. 36). Opportunities for Refinement: The intensity of public frustration regarding "red tape" suggests that policy language alone may be insufficient. Staff recommends strengthening the Implementation Element (Vol I, p. 218) to include specific, measurable actions for administrative process streamlining (e.g., timeline targets, fee analysis) that will occur following the adoption of the Plan. IV. FEEDBACK OUTSIDE THE SCOPE Certain feedback themes require operational responses rather than long-range policy updates governed by the Growth Management Act (GMA). Concerns regarding immediate public safety, enforcement, and specific social services are operational issues. The City acknowledges these significant community concerns and will continue to address them through operational strategies, resource allocation, and regional partnerships separate from the Comprehensive Plan process. VI. APPENDICES A. DRAFT - Second Review - Public Comment Thematic Response September 24, 2025 Planning Commission Meeting 71 Appendix A to Public Comment Memo: Public Comment Thematic Response Introduction Staff would like to thank all the community members that engaged in the Comprehensive Plan Periodic Update process. This plan would not reflect the Port Angeles community correctly without the responses and suggestions you provided. The feedback was candid and thoughtful, and it shaped what you see here. This document is organized by the major themes identified in the Survey Synopsis. Each section explains how what we heard is carried into goals, policies, and specific actions in the City’s planning documents. For transparency, each section ends with a selection of unedited comments that informed the response. We use a simple “We Heard You” frame so the connection between input and action is obvious. Key Takeaways & Notes for Review • A Deeply Polarized Consensus: There is universal agreement that Port Angeles faces a housing crisis. However, the community is profoundly divided on the solutions. The feedback forms two distinct camps: one urgently demanding bold action, regulatory flexibility, and increased density of all types ("Housing First," "Mix mix mix!!"), and another strongly advocating for an enforcement-first approach to social issues and the preservation of single-family neighborhood character ("We aren't Seattle or Tacoma," "STOP PROVIDING SERVICES SO THEY LEAVE"). • The "Missing Middle" is a Priority: Across the spectrum, there is a clear demand for more housing options for middle-income residents. This includes a need for quality, affordable "starter homes" and frustration that the market seems to only serve the highest and lowest income levels. • "Gentle Density" Has Broad Support: While large-scale, high-density development is controversial, there is widespread support for Accessory Dwelling Units (ADUs), creative conversions of existing spaces (basements, garages), and smaller-scale infill like tiny homes. Financial cost, not city regulation, is now seen as the primary barrier to building ADUs. • Frustration with Process and Costs: Commenters from all perspectives are frustrated with the City's permitting process, viewing it as a significant barrier to development. There is a near- universal call to reduce "red tape." The total cost of housing—including permit fees, construction costs, and rising property taxes—is a major source of anxiety. • "Fix It First" Mentality: A recurring theme is that new housing and density should only be approved if preceded by or concurrent with necessary infrastructure upgrades, especially regarding roads, sidewalks, and parking. There is also a strong desire to see vacant and dilapidated properties redeveloped before established neighborhoods are changed. Quality of Life is Paramount: Beyond specific policies, the comments reflect a deep commitment to the quality of life in Port Angeles. This is expressed through strong support for trails and parks, a desire for a safe and vibrant downtown, a commitment to environmental stewardship, and a demand for a resilient community prepared for natural hazards. September 24, 2025 Planning Commission Meeting 72 LAND USE Primary References: • Comprehensive Plan, Volume I, Land Use Element (Community Design; Downtown and Commercial Areas; Residential Neighborhoods and Housing Stock). • Housing Action Plan (HAP): Rec 3 Multifamily Builders Workshops; Rec 4 Co-living Municipal Code Update; Rec 11 Vacant/Unoccupied Property Reduction Strategy. We heard you: Growth needs to deliver more affordable and diverse housing while protecting small-town character, open space, and the vitality of downtown. The priority is smart growth: infill and the reuse of underutilized land before expanding outward. How the Plan Responds Infill and revitalization first. Vacant and underused sites, including surface parking, are a central focus. A new objective for downtown and commercial areas directs reuse of these lots, reinforced by HAP Rec 11 to reduce vacant and unoccupied properties. A walkable, people-scaled downtown. A Community Design goal promotes compact, human-scaled development and directs the City to evaluate pedestrianizing one or more downtown streets, reflecting public requests. Real housing variety. Residential policies open the door to “missing middle” housing in lower-density areas. HAP Rec 4 (co-living code update) and Rec 3 (multifamily builder workshops) provide the tools to make it happen. Quality by design. Clear, user-friendly, objective design standards will raise quality and fit, avoiding generic, look-alike projects. Selection of Public Comments for the Land Use Element Affordable & Diverse Housing: o "I feel theirs not enough housing units going up even with the purposed 1500 units, as those get built the demand will increase" o "Reasonable housing is very needed & the homeless population is scary and unsanitary." o "We need more residential houses to own and to rent. We don't have enough stock in the market for the people that need housing in PA!" o "More housing, more walkable, more community, less parking and lower speeds." Preservation of Open Space: o "I hope the land is preserved and protected." o "We must prioritize conservation of natural resources for future benefit of our community. Invest in building around nature - specifically our City's creeks." o "Sustainable growth, while protecting our natural environment." Mixed-Use and Infill: September 24, 2025 Planning Commission Meeting 73 o "I'm not sure zoning anywhere as residential is really good for a city... Having shops and restaurants where you live gets you out without your car, which lets you see and know your community, which builds community." o "Overall I support the continued development of walkable and bikable neighborhoods. Mixed use in residential is great." o "happy about higher density housing, especially downtown, and allowing small businesses to open in neighborhoods (like buena luz!) for more walkability." Downtown Revitalization: o "Add a key to the map designating what color was used to signify each use. I support the pedestrianization of some of downtown." o "Concentrate growth downtown, and prioritize a walkable, visitable city for our Canadian neighbors." o "The downtown area is a vital area that has the most potential for attracting tourists and improving quality of life for residents." Skepticism Toward High-Density Without Design Controls: o "Remember when building homes people… want space around them." o "I am not supportive of row houses and multi-family townhouses that all look the same and stamped out are ugly." o "Encourage quality buildings that will last and are respectful of the environment we live in." Rayonier Mill Site: o "It has taken far too long for Rayonier property to be cleaned... Both Rayonier and KPly site can be developed into mix use housing." o "The Rayonier Mill site is unique and wonderful, which is why I oppose mixed use development there. To extend use I would favor RV camping…" o "We need to… clean up and develop the Rayonier site. Such a beautiful, wasted resource with massive potential." HOUSING Primary References: • Comprehensive Plan, Volume I, Housing Element: Goal G-6A (Housing Supply); proposed goals for Housing Affordability and Access, and Housing Quality. • HAP: Housing Needs Assessment (Slide 7); Rec 6 Housing Development Guide; Rec 10 City-wide Homelessness Navigator. We Heard You… Housing supply is the pressure point. We need more options for working families and middle-income residents. People are split on homelessness and short-term rentals, and nearly everyone is frustrated by permitting complexity and costs. How the Plan Responds September 24, 2025 Planning Commission Meeting 74 Meet the unit need. The city will plan for at least 1,518 new homes over 20 years, with many affordable to households below 50% AMI (HAP Slide 7). Zoning capacity will align with growth targets (Goal G-6A; Policy P-6A.06). Reduce friction in permitting. A recurring review of standards will remove barriers, and a clear Housing Development Guide will make steps predictable and transparent (HAP Rec 6). Coordinate on homelessness. A Housing First approach drives better alignment with county and service providers, supported by a City-wide Homelessness Navigator to connect people with services and advance long-term solutions (HAP Rec 10). Address STRs with balance. A new policy under consideration would regulate STRs to protect long-term housing while recognizing tourism benefits. Selection of Public Comments for the Housing Element Housing Supply, Density, and Growth: o "Let people's wild ideas be easier to try. It's an emergency" o "Make it easier to permit and develop more DENSE and walkable and affordable housing options in the city limits." o "City lots are small and no one wants to live on top of others. People don’t want multi family homes. They want single family homes. You aren’t listening to the wants of people and instead are pushing the wants of the city. We aren’t Seattle or Tacoma. We don’t need high density." o "agree with higher density housing and prioritizing multi family dwellings like duplexes or townhomes" o "I would support more housing in my neighborhood should it blend in and not create space hardships for folks." Short-Term Rentals (STRs): o "Creating more affordable housing should be prioritized over short-term rentals." o "Continue to limit and reduce the amount of VRBO or vacation rentals in residential areas." o "Allowing Short-Term Rentals helps bring revenue and tourism to our area and helps local families and businesses thrive." o "Leave the owners of AIRBNB and VRBO alone." o Affordability and Cost Burdens: o "Reduce the costs for development and cut the red tape." o "Stop raising property taxes so that people can afford housing." o "Finding ways to have affordable housing for middle income individuals (there’s lower income and higher income- but not much in the middle range)." o "We need more affordable 'starter homes' that aren't old, ill-repaired homes." Homelessness and Housing Assistance: o "It is imperative that the issue of homelessness be solved compassionately. Removing them from camp after camp is futile. Solve the problem." o "STOP PROVIDING SERVICES SO THEY LEAVE" September 24, 2025 Planning Commission Meeting 75 o "Do NOT grow this enabling agenda. If the homeless don't participate in drug and rehab assistance, jail them." o "Law enforcement, remove RVs and broken vehicles, stop handing out drug kits/needles, mandate rehab programs" o "Housing First" Permitting, Process, and Regulations: o "You permit process is still a huge stumbling block and many of your codes don't make sense why they even exist." o "The costs associated with adding additional housing to private property makes it prohibitive for most individuals to do so." ECONOMIC DEVELOPMENT Primary References: • Comprehensive Plan, Volume I, Economic Development Element: Goals G-9A (Diverse Economy) & G-9B (Downtown); Policies P-9A.02, P-9A.03, P-9A.12. • Comprehensive Plan, Volume I, Housing Element: Policy P-6A.02 (Workforce Housing). • HAP: Rec 9 Down-payment Assistance Home Buyers Gap Program. We Heard You… A healthy local economy means family-wage careers, a safe and appealing downtown, and support for small businesses. Jobs and housing are linked; one fails without the other. How the Plan Responds Grow and retain family-wage careers. Policies prioritize retention and expansion of existing businesses and target recruitment of employers that provide stable, family-supporting jobs (P-9A.02, P-9A.03). Make downtown the hub. Downtown is positioned as the primary social, cultural, and economic center, with investments in safety, infrastructure, and appearance to attract residents and visitors (Goal G-9B). Tie housing to workforce needs. Workforce housing is explicitly supported (P-6A.02), and HAP Rec 9 proposes down-payment assistance to help local workers buy homes in the community. Leverage our setting. Policies support tourism through waterfront improvements and stronger connections to Olympic National Park (P-9A.12), recognizing that visitor appeal follows resident quality of life. Selection of Public Comments for the Economic Development Element Higher-Wage, "Family-Wage" Jobs: o "The biggest problem is the cost of living... How are people supposed to afford living or moving to the area when most jobs don't pay enough to buy a place to live?" o "The plan seems to be missing a vision for bringing industry that creates jobs with liveable wages. Please focus on that" September 24, 2025 Planning Commission Meeting 76 o "Creating more jobs with a living wage and affordable housing options go hand-in-hand. You can’t focus on just one for it to work." Downtown & Tourism: o "Keep the architecture downtown 'quaint' and not modern. Tourists go to Poulsbo and PT for their looks and that supports their local businesses." o "Clean up the streets, sidewalks, etc." o "We need to look the way we want people to view us... When we allow things to fall into disrepair, we signal to the world 'we don't care'..." Support for Small, Local Businesses: o "You tax and fee everyone out of business. The process to do anything is burdensome and expensive." o "Adopt more business friendly practices and cut the red tape. Make Port Angeles a more appealing place for businesses to come." o "we need more locally owned businesses we do not need 2 safeways" Workforce Housing: o "There's no point in industry/businesses moving their operations to PA if their workers can't afford places to live." o "Offer housing incentives and co-working spaces." PARKS, RECREATION & OPEN SPACE Primary References: • Comprehensive Plan, Volume I, Parks, Recreation, & Open Space Element: Goals G-10A (Comprehensive System), G-10B (Connectivity), G-10C (Maintenance & Safety); Policies P-10A.01, P-10A.02, P-10A.05, P-10A.10. We Heard You… Parks and trails are core to community identity. The Olympic Discovery Trail is a point of pride. People want more diverse, affordable, and accessible recreation, and they want existing parks to be safer and better maintained. How the Plan Responds Connect and enhance trails. The plan strengthens the trail network, with explicit support to maintain and enhance the Olympic Discovery Trail as a primary multi-use path (Goal G-10B; P-10A.02; P-10A.10). Expand recreation for all. Policies call for a comprehensive, accessible system with facilities that serve families, seniors, and people with disabilities, including indoor and year-round options (Goal G-10A; P- 10A.01). Lead with maintenance and safety. Long-term stewardship is prioritized, with regular assessment and action on maintenance needs so parks stay clean, safe, and welcoming (Goal G-10C; P-10A.05). September 24, 2025 Planning Commission Meeting 77 Raw Public Comments for Parks, Recreation, & Open Space Element Support for Trails & Connectivity: o "We love the Olympic Discovery Trail, as well as the trails at the Park Visitor's Center" o "Discovery Trail, It is beautiful and also a good way to travel places by bike" o "A robust trail system through our city parks is a must to retain the character of our wonderful town." Diverse Activities & Amenities: o "I would like to see a public pool again that is open to the public." o "More free/low cost family-friendly activities." o "More indoor or covered facilities would be useful." o "Please consider pickle ball courts for the community." Maintenance & Safety: o "Don't let people live in the parks. Kids are afraid to go in some parks because of the down and out people living there." o "Kick the homeless out of our parks they aren’t safe anymore" o "Focus on maintaining the parks we have versus expanding or developing new parks. Many parks are overgrown or have unsafe equipment." o "I would love to see more park maintenance and clean up of trash and graffiti" CONSERVATION Primary References: • Comprehensive Plan, Volume I, Conservation Element & related elements: Goal G-4B (Water Resources); Policy P-3G.05 (Creek Protection); Policy P-3L.04 (Tree Preservation); Goal G-5F (Renewable Energy); Policy P-8A.19 (Solid Waste & Recycling). We Heard You… Environmental stewardship is a baseline expectation. Protect water quality, preserve trees, expand composting and recycling, and lead on clean energy. How the Plan Responds Protect water quality. Policies direct protection, enhancement, and restoration of creeks and riparian corridors, and set a broader goal to safeguard water resources for future generations (P-3G.05; Goal G- 4B). Preserve the urban forest. Significant trees are to be preserved in new development, with street tree programs reinforcing neighborhood character (P-3L.04; Community Design goals). Expand waste reduction. Solid waste and recycling policies encourage reduction and reuse, creating the framework to evaluate expanded composting and glass recycling (P-8A.19). September 24, 2025 Planning Commission Meeting 78 Promote renewable energy. Goals support conservation and clean energy adoption, positioning the public utility as a sustainability leader (Goal G-5F). Selection of Public Comments for the Conservation Element Protect Water Quality: o "Daylight Creek Valleys, remove invasive species like ivy, build Stormwater parks, remove invasive species, protect and restore creeks, partner with tribes and county" o "Clean water is number one and the only one we should focus on" o "Yes, We are spending billions on fish pass restoration while ignoring the homeless camps in the creeks. Enforce the law!" Preserve Tree Canopy: o "The number of new home owners in my neighborhood (Cherry Hill) I've seen come in and immediately cut down beautiful mature trees is tragic." o "We seem to be a bit lenient on the removal of trees." Recycling & Composting: o "We need to compost and glass recycling again." o "City wide compost!" o "PLEASE find a provider for glass recycling! It hurts my heart to throw glass away." Renewable Energy: o "If this is truly a 'Vision 2045', it should include more aggressive steps towards alternative energy sources, more efficient grids, etc." o "Future discussions about mitigating light pollution…" HAZARD MITIGATION & CLIMATE RESILIENCY Primary References: • Comprehensive Plan, Volume I, Hazard Mitigation & Climate Resiliency Element: Goals 1 (Geological Hazards), 2 (Resilient Community), 3 (Wildfire); Policies 1.1, 2.4, 3.2. We Heard You… Earthquakes, tsunamis, wildfires, and sea-level rise are real risks. People want clear evacuation routes, working warning systems, honest education, and climate-smart development decisions. How the Plan Responds Earthquake and tsunami preparedness. We will continue planning and mitigation, maintain warning systems, and expand public education (Goal 1; Policy 1.1). Wildfire evacuation clarity. Establish and clearly mark wildfire evacuation routes citywide, reflecting the geography-specific risks residents flagged (Goal 3; Policy 3.2). September 24, 2025 Planning Commission Meeting 79 Plan for sea-level rise. Evaluate risks to coastal bluffs and near-shore development with long-term erosion and sea-level projections in mind (Goal 2; Policy 2.4). Selection of Public Comments for the Hazard Mitigation & Climate Resiliency Tsunami & Earthquake Preparedness: o "the Cascadia event is right around the corner (from a geological standpoint). Even a little preparation is better than none." o "Need far more public education and buy-in for this. Too many skeptics and people who don't want to be inconvenienced" o "The downtown is in a hazard zone, there should be no new development at sea level" Wildfire Evacuation: o "We need clear FIRE evacuation plans--not just tsunami evacuation routes. I have no idea where to go if fire is roaring down the mountain--we're a bit like Hawaii in this way." Sea-Level Rise: o "Does the document envision changes to shoreline and near shore land access… due to sea-level changes and weather-related erosion?" o "The City of PA moves far too slowly on climate resiliency." September 24, 2025 Planning Commission Meeting 80 P a g e 1 MEMORANDUM DATE: Friday, September 19, 2025 TO: Planning Commission FROM: Jalyn Boado, Housing Administrator RE: CPA 25-0122 Housing Action Plan Public Comment Memo INTRODUCTION This memo and its attachments serve as the official response to public comments from City staff, including all notice procedures, documentation, and individual comments. The City of Port Angeles' 2025 Housing Action Plan (HAP) is an updated strategy that builds upon the 2019 plan to address critical housing challenges and promote a fair, diverse, and sustainable housing future. With housing affordability and accessibility emerging as key issues in Washington State, Port Angeles faces unique challenges, such as geographic constraints, aging infrastructure, and limited land development capacity. PUBLIC NOTICING PROCEDURES Engagement for the Housing Element and Housing Needs Assessment started in September 2024. Likewise, public engagement for the Housing Action Plan began in January 2025. Formal Public notice for Land Use Application CPA 25-0122 was opened on Wednesday, September 24, 2025, and closed on Wednesday, October 22, 2025, and was provided in the following manner: • Engagement Notice: August 8, 2025 • Newsflash for Draft HAP Publishing: August 8, 2025 • In the Peninsula Daily News: September 24, 2025 • At the City Hall Noticing Board: September 24, 2025 • On the City’s Website: September 24, 2025 See Attachment A for noticing documentation. PUBLIC ENGAGEMENT Housing Action Plan Meetings: Organization Date Peninsula Behavioral Health 01/06/2025 The Answer for Youth 01/07/2025 Habitat for Humanity of Clallam County 01/09/2025 Peninsula Housing Authority 01/20/2025 Serenity Housing 02/06/2025 September 24, 2025 Planning Commission Meeting 81 P a g e 2 Habitat for Humanity of Clallam County 08/19/2025 Peninsula Behavioral Health 08/22/2025 Serenity House 08/27/2025 Sarge’s Veteran Support 08/28/2025 Peninsula Housing Authority 08/29/2025 The Answer for Youth 08/29/2025 Housing Element Presentations: Organization Date Stakeholder Advisory Committee ................................................... 01/28/2025 Stakeholder Advisory Committee ................................................... 02/24/2025 Planning Commission ..................................................................... 02/26/2025 Port Angeles Association of Realtors Government Affairs ............. 06/05/2025 Vision 2045 Comprehensive Plan Periodic Update Open House ... 06/12/2025 Planning Commission ..................................................................... 07/23/2025 Stakeholder Advisory Committee .................................................. 08/26/2025 Port Angeles Association of Realtors Government Affairs ............. 09/04/2025 Planning Commission ..................................................................... 09/24/2025 PUBLIC COMMENT TO DATE: 40+ public comments were received by staff via email during the public engagement process. Each comment throughout the document is summarized, not presented verbatim. See Attachment B for staff responses. Public Comment is organized by topic. 1. Affordable Housing Needs & Rent Concerns • Urges rent regulation to reflect local economic realities; wants minimum unit sizes (600 sq ft), stronger Section 8 support, and limits on corporate landlords. • Questions the city's lack of direct supportive housing development despite available resources. • Concerned about inadequate single-family housing and over-regulation discouraging development. 2. Housing Supply, Planning, and Strategy • Wants stronger accountability, clearer goals, and better coordination. • Urges holistic planning beyond just increasing supply—focus on reversing economic decline, family attraction, and correcting planning missteps. • Argues that growth projections are too conservative; current analysis may underestimate demand. • Emphasize the importance of economic development to raise AMI (Area Median Income), not just to meet current demand. 3. Supportive Housing & Services for Unhoused Residents • Advocates for safe parking areas and facilities. • Believes homelessness navigator should focus on policy, not direct service. • Highlights the shortage of low-income family housing and shelters. • Supports safe parking, LGBTQIA+ provisions, and incentivizing churches to provide tiny homes. September 24, 2025 Planning Commission Meeting 82 P a g e 3 • Suggests mapping common unhoused areas and providing localized support and job training. 4. Regulations, Incentives & Funding Mechanisms • Fee Waiver Program: Widely supported across commissioners (Chair Young, Vice Chair Stieger, Commissioner Shorr). • Down Payment Assistance: Endorsed by Commissioner Kiedrowski; potential USDA partnership suggested. • MFTE (Multifamily Tax Exemption): Needs better marketing to developers. • Permit-Ready Plans (PRP): o Strong support (Chair Young, Commissioner Kiedrowski, Vice Chair Stieger). o Call for better tracking and cost-effective designs. • Sales & Use Tax/NICE Grants: o Supported by Planning Commissioners Kiedrowski & Shorr. o Suggest grant reimbursements for sidewalk and development barriers. • Weatherization: Support for expanding to renovations and direct outreach (Vice Chair Stieger, Port Angeles Association of Realtors (PAAR)). 5. Blighted Properties, Renovations & Repairs • Habitat for Humanity (HFH) of Clallam County runs a critical repair program and seeks more funding post- COVID. • Blighted Property Reduction : o Strong support (HFH, Vice Chair Stieger, Commissioner McMillan, PAAR). o Ideas include sweat equity programs, Baltimore model review, and use for both housing and business. • Renovation Incentives: o PAAR suggests waiving dumping fees and expanding incentives. o Commissioners support connecting with sweat equity/homeownership programs. 6. Stakeholder and Partner Organization Input • Peninsula Housing Authority (PHA) recommends landlord assistance funds. • PHA supports down payment policies and better design standards. • Peninsula Behavioral Health: Calls for safe spaces and policy-level homelessness coordination. • HFH: Requests city support for repair program expansion. • Serenity House: Advocates for more family-specific low-income housing. • The Answer for Youth: Pushes for LGBTQIA+ inclusion and safe parking. • PAAR Favors co-living ordinance and housing pipeline but criticizes specific policies (e.g., down payment assistance, multifamily builders’ association, and homelessness navigator). • Pushes for builder training in advanced, energy-efficient housing techniques. 7. General Recommendations & Systemic Issues • Section 8 Acceptance: Need to incentivize private landlords. • Corporate Landlords: Desire to limit their presence in local housing. • Skill Gaps: Economic growth and job training are needed to raise AMI. • Utility Access: Realtors request utilities brought to the curb; affordable utilities are emphasized. CHANGES MADE TO THE ACTION PLAN IN RESPONSE TO PUBLIC COMMENT September 24, 2025 Planning Commission Meeting 83 P a g e 4 •The background section, especially on housing challenges, will be revised to include more details about the current economy and highlight affordability and supply issues. •The entire HAP will be updated to ensure the language highlights that housing and housing solutions are regional in scope. •Create a grant acquisition strategy that highlights grants the CED department will apply for related to housing tasks and programs. Specifically searching for grants pertaining to home repairs. •In the housing needs assessment summary, we will include data from the Clallam County Point -In-Time count. •The homelessness navigator should work closely with the existing outreach teams and coordinate across organizations when possible. The position should create ordinances on a local level to protect people experiencing homelessness and work towards permanent housing solutions. The role can also involve providing education to unhoused individuals and the general community. •City staff will clarify that the Housing Pipeline Project will not be a construction project. The City will only do the predevelopment work. •Within the permit-ready plan program task, staff will revise this section to improve tracking of the project's valuation. •Connecting the blighted property reduction strategy with the local non-profits building affordable housing. •With the multifamily builders training focus on innovative technologies and strategies that are achievable with the building supplies readily available on the North Peninsula. •Create a new task to encourage affordable housing providers to explore a community land trust model. Attachment A: Public Noticing Documentation Attachment B: Public Comment Response Matrix September 24, 2025 Planning Commission Meeting 84 References / Resources: Sources: City of port Angeles, Clallam County, WA GIS Data Data Created: 22 August 2025 Software: ArcPro 3.5, Adobe PowerPoint, Google Gemini Projected Coordinate System: ‘NAD 1983 HARN StatePlane Washington North FIPS 4601 (US Feet)4602 Feet’ | Credit: City of Port Angeles GIS, CED, HOPE PORT ANGELES: Urban Growth Area (UGA) N CENTRAL UGA WESTERN UGA EASTERN UGA September 24, 2025 Planning Commission Meeting 85 References / Resources: Sources: City of port Angeles, Clallam County, WA GIS Data Data Created: September 15th,2025 Software: ArcPro 3.5, Adobe PowerPoint, Google Gemini Projected Coordinate System: ‘NAD 1983 HARN StatePlane Washington North FIPS 4601 (US Feet)4602 Feet’ | Credit: City of Port Angeles GIS, CED, HOPE PORT ANGELES UGA EXPANDED N September 24, 2025 Planning Commission Meeting 86 CED Affordable Housing Report - August 2025 Type JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2025 YTD 2024 YTD SUT - HB 1406 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $40,000.00 SUT - HB 1590 $0.00 $50,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $50,000.00 $754,999.00 FWP $39,666.66 $0.00 $17,444.82 $0.00 $6,676.43 $24,153.35 $25,750.54 $1,426.50 $0.00 $0.00 $0.00 $0.00 $115,118.30 $313,890.04 NICE- Small Scale $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $5,810.39 NICE - Medium Scale $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 NICE - Large Scale $0.00 $0.00 $0.00 $0.00 $0.00 $46,750.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $46,750.00 $0.00 TOTAL CITY INVESTMENTS $39,666.66 $50,000.00 $17,444.82 $0.00 $6,676.43 $70,903.35 $25,750.54 $1,426.50 $0.00 $0.00 $0.00 $0.00 $211,868.30 $1,114,699.43 PRP 3 1 0 0 3 2 0 1 0 0 0 0 10*12 MFTE 0 0 0 0 0 4 0 0 0 0 0 0 4*12 Key SUT- HB 1406 SUT- HB 1590 FWP NICE - Small Scale NICE - Medium Scal NICE - Large Scale PRP MFTE Multi Family Tax Exemption. Contracts are shown in the month they were executed between developer and City, minimum number of estimated new dwelling units listed. Final dwelling unit counts will be determined at permitting/approval phase, and will be detailed on the monthly Building Report.* Please Note: City staff invest considerable time to proactively engage with prospective housing developers in order to amplify these critical City programs. This report only includes one stage of this important process. Fee Waiver Program. The costs of 25 permit types are waived by the City for all infill and multifamily housing projects. New Improvements for Community Enhancement of Neighborhoods Projects (≤ $14,999). Grants are shown in the month that the contract was fully executed between the developer and the City. Sales and Use Tax - HB 1406. Grants are shown in the month that the contract was fully executed between the developer and the City. Sales and Use Tax - HB 1590. Grants are shown in the month that the contract was fully executed between the developer and the City. New Improvements for Community Enhancement of Neighborhoods Projects ($15,000-$24,999). Grants are shown in the month that the contract was fully executed between the developer and the City. New Improvements for Community Enhancement of Neighborhoods Projects (≥ $25,000). Grants are shown in the month that the contract was fully executed between the developer and the City. Permit Ready Plans. Plans are shown in the month they were shared with prospective developer, minimum number of estimated new dwelling units listed. Final dwelling unit counts will be determined at permitting/approval phase, and will be detailed on the monthly Building Report.* September 24, 2025 Planning Commission Meeting 87 CED Building Report - August 2025 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2024 YTD 0 0 1 0 2 0 1 0 0 0 0 0 3 $0.00 $0.00 $700,000.00 $0.00 $368,722.00 $0.00 $1,500.00 $0.00 $0.00 $0.00 $0.00 $0.00 $5,192,500.00 4 5 3 9 8 9 8 5 0 0 0 0 72 $352,600.00 $100,636.00 $71,652.00 $193,541.00 $295,571.00 $566,877.00 $141,293.00 $275,952.00 $0.00 $0.00 $0.00 $0.00 $4,086,122.00 0 0 0 0 0 0 0 0 0 0 0 0 3 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $5,628,130.00 1 0 0 1 0 0 0 0 0 0 0 0 0 $2,632,599.00 $0.00 $0.00 $69,500.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 0 0 0 0 1 0 0 0 0 0 0 0 1 $0.00 $0.00 $0.00 $0.00 $56,000,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $65,000.00 0 0 0 2 2 0 0 0 0 0 0 0 4 $0.00 $0.00 $0.00 $295,000.00 $726,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $937,000.00 2 0 0 0 0 0 3 0 0 0 0 0 9 $800,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $484,827.00 $0.00 $0.00 $0.00 $0.00 $0.00 $1,845,524.00 1 0 1 1 2 0 1 0 0 0 0 0 3 $250,000.00 $0.00 $282,354.00 $240,000.00 $85,000.00 $0.00 $26,680.00 $0.00 $0.00 $0.00 $0.00 $0.00 $554,520.00 2 0 1 2 0 2 2 1 0 0 0 0 9 $718,694.00 $0.00 $120,000.00 $570,860.00 $0.00 $463,742.00 $625,525.00 $350,000.00 $0.00 $0.00 $0.00 $0.00 $2,919,947.00 0 0 3 0 1 1 2 0 0 0 0 0 14 $0.00 $0.00 $282,659.00 $0.00 $94,565.00 $60,000.00 $108,098.00 $0.00 $0.00 $0.00 $0.00 $0.00 $1,108,154.00 18 27 35 27 29 28 33 52 0 0 0 0 188 $332,185.00 $318,083.00 $742,902.00 $416,350.00 $265,008.00 $897,274.00 $386,169.00 $543,867.00 $0.00 $0.00 $0.00 $0.00 $3,160,814.00 Comm 2 0 0 1 0 3 0 0 0 0 0 0 11 Res $16,500.00 $0.00 $0.00 $15,000.00 $0.00 $54,380.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $161,705.00 30 32 44 43 45 43 50 58 0 0 0 0 317 $5,102,578.00 $418,719.00 $2,199,567.00 $1,800,251.00 $57,834,866.00 $2,042,273.00 $1,774,092.00 $1,169,819.00 $0.00 $0.00 $0.00 $0.00 $25,659,416.00 3 0 4 4 4 1 3 1 0 0 0 0 14 $67,450.71 $32,495.68 $59,192.12 $49,188.64 $512,626.80 $49,407.87 $40,688.54 $49,618.44 $0.00 $0.00 $0.00 $0.00 $413,909.49 000101100000033*5 4 0 0 0 0 0 6 0 0 0 0 0 10 8*16 2 0 1 2 0 2 2 1 0 0 0 0 10 5*9 1 0 1 1 2 0 1 0 0 0 0 0 6 1*3 0 0 0 0 0 0 0 0 0 0 0 0 0 0*4 7 0 3 3 3 3 9 1 0 0 0 0 29 17*37 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $72,342,165.00 $860,668.80 6 $85,880.00 345 20 $2,848,821.00 7 $545,322.00 249 $3,901,838.00 5 $1,284,827.00 6 $884,034.00 10 $56,000,000.00 4 $1,021,000.00 0 $0.00 2 $2,702,099.00 1 *The pending units are in various stages of staff review. Additionally, not all applicants have submitted a complete application at this time. While we expect the majority to advance through the review process, it is possible that some may experience the need for additional review. Dwelling Units - Single Family Dwelling Units-Manufactured Home Dwelling Units - Multi Family (3+) Total Dwelling Units Transitional Housing Units Repair and Alteration Total Permits Issued Total Construction Valuation 2025 YTD Dwelling Units - Duplex New Construction Repair and Alteration New Multi Family New Manufactured Home Dwelling Units - ADU Demolition and Moving Certificate of Occupancy 4 $1,070,222.00 51 $1,998,122.00 Permit Fees Paid Comm Ind Public Res New Construction Repair and Alteration New Construction New Single Family New Accessory Structure Repair and Alteration September 24, 2025 Planning Commission Meeting 88 CITY OF PORT ANGELES PLANNING COMMISSION MEETING SEPTEMBER 24, 2025 MCA 25-0124 Co-Living Housing Title 17 Code Revisions JALYN BOADO, HOUSING ADMINISTRATOR AND ASSOCIATE PLANNER AGENDA •Background •Draft Code Revisions •SEPA •Public Comments •Staff Recommendation 2 BACKGROUND •In 2024, the Washington State legislature passed RCW 36.70A.535. •In March 2025, the Washington State Department of Commerce released co -living guidance for jurisdictions planning under the Growth Management Act. •RCW 26.70A .535 will require all cities and counties planning under the Growth Management Act to allow co-living where six or more multifamily residential units are permitted on a lot. •Cities and counties have until December 31, 2025, to adopt co-living regulations. 3 CO-LIVING HOUSING BENEFITS •Co-living housing provides an affordable option in the lower private housing market and relieves pressure on public housing. •It suits individuals wanting to reduce costs, enjoy communal living, or access desirable neighborhoods. •Promotes walkability, shorter commutes, and supports environmental goals. •Energy-efficient smaller units save money for residents and lower energy demand. 4 MCA 25 -0124 DRAFT TITLE 17 CODE REVISIONS •17.08.020 "C." F. Co-living housing "A residential development with units that are independently rented and lockable that provide living and sleeping space, where kitchen facilities are shared with other residents in the building. Co -living housing does not apply to short-term rentals. Co- living housing is also known as home sharing. •Co-living housing is a permitted use in R7, R9, R11, RMD, RHD, CO, CN, CA, CBD, and CSD. 5 A SEPA checklist was sent on 9/3/2025 and was assigned file number SEPA 25 -0140. A SEPA determination of non- significance was issued on 9/10/2025. The 14-day comment period ends today. There is a 21 -day appeal period after the issue date. 6 SEPA PROCESS PUBLIC COMMENT RESPONSE There were four public comments received •Concerns with RCW 36.70A.535 Interpretation •Clarification of Co-Living/Home Sharing •Advocacy for Legal Home Sharing Revisions to proposed municipal code in response to public comment • Edits to the Co -living Housing definition were added so as not to conflict with the building code. •Additional edits were made to be inclusive of home sharing. 7 Staff Recommendation Staff recommends that the Planning Commission recommend the City Council adopt of MCA 25 -0124 for revisions to Title 17, adding a co -living housing definition and listing co -living housing as a permitted use in R7, R9, R11, RMD, RHD, CO, CN,CA, CBD, and CSD zones. Housing Action Plan Periodic Update Public Comment Review Jalyn Boado, Housing Administrator Planning Commission Meeting September 24, 2025 1 •Public Noticing Procedures •Meetings and Public Presentations •Summary of Public Comments •Changes being made to HAP Agenda 2 •Engagement Notice: August 8, 2025 •Newsflash for Draft HAP Publishing: August 8, 2025 •In the Peninsula Daily News: September 24, 2025 •At the City Hall Noticing Board: September 24, 2025 •On the City’s Website: September 24, 2025 Official public comment timeframe: •September 24 through October 22, 2025. The next HAP draft is scheduled for October 10, 2025. HAP Public Noticing Procedures 3 Housing Action Plan Meetings: Peninsula Behavioral Health 01/06/2025 The Answer for Youth 01/07/2025 Habitat for Humanity of Clallam County 01/09/2025 Peninsula Housing Authority 01/20/2025 Serenity Housing 02/06/2025 Habitat for Humanity of Clallam County 08/19/2025 Peninsula Behavioral Health 08/22/2025 Serenity House 08/27/2025 Sarge’s Veteran Support 08/28/2025 Peninsula Housing Authority 08/29/2025 The Answer for Youth 08/29/2025 HAP Public Engagement 4 Stakeholder Advisory Committee...................................................01/28/2025 Stakeholder Advisory Committee...................................................02/24/2025 Planning Commission .....................................................................02/26/2025 Port Angeles Association of Realtors Government Affairs.............06/05/2025 Vision 2045 Comprehensive Plan Periodic Update Open House ...06/12/2025 Planning Commission .....................................................................07/23/2025 Stakeholder Advisory Committee ..................................................08/26/2025 Port Angeles Association of Realtors Government Affairs.............09/04/2025 Planning Commission .....................................................................09/24/2025 HAP Public Engagement 5 1)Affordable Housing Needs and Renter Concerns 2)Housing Supply,Planning, and Strategy 3)Supportive Housing and Services for Unhoused Residents 4)Regulations, Incentives and Funding Mechanisms 5)Blighted Properties, Renovations, and Repairs 6)Stakeholder and Partner Organizations Input 7)General Recommendations and Systemic Issues HAP Public Comment Key Themes 6 Changes made in the HAP in Response to Public Comment •State of the economy, affordability, and supply issues. •Housing solutions must be achieved on a regional level. •Grant acquisition strategy •Clallam County 2025 point-in-time results •Clarifying information surrounding the Housing Pipeline Pilot Project •Better tracking permit ready plans •Connecting the blighted property reduction strategy with local non-profits •The multifamily builders training series needs to be specialized to focus on innovative technology and with building supplies that are readily available on the peninsula. •Encourage and explore using a land trust model •Clarify the purpose and position of the homelessness navigator 7 Questions? 8 Urban Growth Area Swap with Clallam County PORT ANGELES PLANNING COMMISSION MEETING – SEPTEMBER 24, 2025 1 Urban Growth Area (UGA) Background What are UGA’s? •A designated territory where urban development is permitted and encouraged, often located within or adjacent to existing cities.•UGAs are mandated by the state's Growth Management Act (GMA) (RCW 36.70A).How are UGA’s managed? •Managed through the City and County Comprehensive Plans.•Development is directed to areas with urban services (water, sewer, roads).How can UGA’s be changed? •Changes occur through periodic Comprehensive Plan updates or annual amendments.•Amendments require coordination and approval by both the City and County.•Two main methods: UGA expansion UGA Swap PORT ANGELES PLANNING COMMISSION MEETING– SEPTEMBER 24, 2025 2 Port Angeles UGA Orientation PORT ANGELES PLANNING COMMISSION MEETING– SEPTEMBER 24, 2025 3 What is a UGA Swap •Removing land in one part of a UGA and adding another land elsewhere so that the net area (or development capacity) of the UGA does not increase. •Used in cases where there is pressure in parts of the UGA (areas being built out) but under-use in other parts. •It helps realign the UGA without expanding the overall footprint. •Regulated by the Growth Management Act - RCW 36.70A PORT ANGELES PLANNING COMMISSION MEETING – SEPTEMBER 24, 2025 4 Benefits of a UGA Swap •Preserve active forest land and protect critical areas. PORT ANGELES PLANNING COMMISSION MEETING – SEPTEMBER 24, 2025 5 Economic Growth and Living Wage Jobs •Identifying areas for industrial development will encourage manufacturing and family wage job growth.•Supports a healthy housing and job balance. PORT ANGELES PLANNING COMMISSION MEETING – SEPTEMBER 24, 2025 6 Tribal Economic Development •Supports tribal economic development initiatives by encompassing several key properties and facilities owned by the tribe into the UGA. PORT ANGELES PLANNING COMMISSION MEETING – SEPTEMBER 24, 2025 7 Current Projects •The western UGA is seeing active plans for growth with sewer lines, power extension, and several industrial or large-scale developments. •City and County will cooperatively develop plans for infrastructure and zoning. PORT ANGELES PLANNING COMMISSION MEETING – SEPTEMBER 24, 2025 8 Additional benefits of a UGA Swap •Reduced sprawl, opportunity to upzone the entire UGA to be compatible with industrial zoning. •Strengthens tax base. Supports sustainable City revenues by strategically locating growth. •Increases predictability. •Promotes regional coordination. The swap supports collaboration with Clallam County on long-term land use strategies. PORT ANGELES PLANNING COMMISSION MEETING – SEPTEMBER 24, 2025 9 UGA Swap Background Why swap instead of expand?Swap (Reallocation) •Keeps overall UGA size stable. •Realigns UGA boundaries to match development patterns. •Reduces pressure on rural and resource lands. •More flexible and politically feasible than expansion. •Supports infill and efficient use of existing infrastructure.Expand (Add Land) •Only when capacity analysis shows insufficient buildable land. •Increases UGA footprint and service obligations. •Higher infrastructure and service delivery costs. •Greater risk of converting ag/forest lands. •Must meet stricter Growth Management Act criteria. PORT ANGELES PLANNING COMMISSION MEETING – SEPTEMBER 24, 2025 10 UGA Swap Requirements The City and County would explore the swap under RCW 36.70A.110(8) to allow for comprehensive public input and notice. Requirements for UGA Swap: •No net increase in total area or capacity. •Added areas cannot be designated long-term ag/forest/mineral lands. •<15% of added areas can be critical areas. •Areas must be suitable for urban growth. •Transportation and facility plans must support expansion. •Swapped areas cannot be urban in character. •UGA must be contiguous, without gaps. •Must follow countywide planning policies and RCW 36.70A.210. •Must meet all RCW requirements. PORT ANGELES PLANNING COMMISSION MEETING – SEPTEMBER 24, 2025 11 UGA Swap and the Comprehensive Plan Update What steps is the City taking to prepare for a future successful UGA swap? •Bi-weekly coordination with Clallam County Community Development Director and staff. •Consulted with the Department of Commerce to confirm requirements and process. •Integrated UGA swap alternative into the SEPA EIS with complete impact analysis; Clallam County would adopt the EIS regarding the swap for consistency. •Working to add supporting policies and goals in the Comprehensive Plan for UGA swap and Western UGA growth. PORT ANGELES PLANNING COMMISSION MEETING – SEPTEMBER 24, 2025 12 Port Angeles Future UGA Swap Proposal Where is the swap coming from: •UGA Swap: Clallam Bay Sekiu Western UGA - Balances growth where it’s needed most.• Clallam Bay/Sekiu UGA: ~252 acres of unused industrial land with little development potential, reallocated to support Western UGA growth.Other considerations: •Development Standards & Permitting: Streamlined updates and coordination with Clallam County for clarity and predictability regarding zoning and development practices. PORT ANGELES PLANNING COMMISSION MEETING – SEPTEMBER 24, 2025 13 Port Angeles Future UGA Swap Proposal PORT ANGELES COMMISSION MEETING – SEPTEMBER 24, 2025 14 Port Angeles Vision 2045: Comprehensive Plan Update Public Comment Summary & Draft Plan Alignment By: Angel Torres, Associate Planner –Long Range and Special Projects Administrator Introduction & Purpose of Review Review public engagement efforts Evaluate Draft Plan alignment with community priorities Identify opportunities to refine or strengthen based on public feedback Our Engagement Strategy: Early & Continuous Participation Public Participation Goals: •Spur a productive community conversation. •Build awareness about the planning process. •Elevate voices of historically underrepresented communities. •Share data and stories to increase shared understanding. Key Audiences & Partners: •Members of the Public (Residents, Workers, Students) •Tribal Governments (Lower Elwha Klallam Tribe) •Non-Governmental Organizations & Business Associations •Elected & Appointed Officials •Counties, Cities, and Other Agencies (Port, PUD, School District) How We Connected with the Community CITYWIDE VISIONING SURVEY STAKEHOLDER ADVISORY COMMITTEE TARGETED INTERVIEWS DOWNTOWN STOREFRONT STUDIO PUBLIC WORKSHOPS & POP-UPS Engagement By the Numbers: A Wide & Inclusive Net 1,400 Visioning Survey Responses 730+ Online Responses to the First Draft 5 Stakeholder Advisory Committee Meetings Dozens of Targeted Interviews, Pop-Ups, and Presentations 1 Three-Day Downtown Storefront Studio What We Heard: Six Dominant Themes Housing Crisis Urgency, Polarized Solutions The 'Missing Middle' Priority Broad Support for Thoughtful Density' Frustration with Process & Costs A 'Fix It First' Mentality Quality of Life is Paramount Connecting Public Comment to the Draft Plan “FIX IT FIRST” THEME ALIGNMENT: PRIORITIZES INFILL ON VACANT LOTS; RAYONIER MILL SITE VISION OPPORTUNITY: STRENGTHEN LINK BETWEEN LAND USE & INFRASTRUCTURE “RED TAPE” & DESIGN THEME: ALIGNMENT: COMMUNITY DESIGN GOAL, REMOVES HOUSING PARKING MINIMUMS OPPORTUNITY: ADD MEASURABLE PROCESS STREAMLINING ACTIONS Acknowledging Operational Concerns Some themes require operational responses, not GMA policy updates Examples: Public safety, code enforcement, social service delivery Addressed via operational strategies, budgeting, partnerships Conclusion & (Next Steps?) PUBLIC ENGAGEMENT WAS EXTENSIVE AND FOUNDATIONAL DRAFT PLAN ALIGNS WITH MANY PRIORITIES, HIGHLIGHTS REFINEMENTS