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Port Angeles details housing action plan: pipeline pilot, co-living, expanded fee waivers and MFTE changes
Summary
City staff presented a 2025 Housing Action Plan update with a housing pipeline pilot at 935 W. 10th St., expanded fee-waiver results, proposed co-living code updates and potential changes to the multifamily property tax exemption policy and other implementation tasks.
City staff outlined a multi-pronged housing action plan update on Sept. 23 that pairs policy changes with demonstration projects and program expansions aimed at increasing attainable housing in Port Angeles.
Jalen Bawato, the city's housing administrator, described the centerpiece as a housing pipeline pilot at 935 West Tenth Street. The city purchased the site earlier in 2024; staff said the city will do pre-development and design work for a mixed-use, multifamily building with ground-floor retail and a portion of affordable units, and will prepare a request for qualifications for design professionals and a contract with the Washington State Department of Commerce to secure housing trust funds. "The housing pipeline project is a demonstration project designed to encourage density and create a commercially oriented corridor along C Street," the housing administrator said.
The presentation listed 10 proposed tasks for the next decade. Key items include: - Co-living: staff said the Legislature mandated co-living definitions in RCW 36.70A.535 and the city intends to adopt municipal code revisions by year-end; a council hearing was scheduled for a Title 17 public hearing tomorrow and council action planned for Oct. 21. - Fee-waiver program: staff said the program has waived about $480,000 in review and permitting fees since 2024 and credited the waivers with facilitating: two single-family homes, 17 duplexes, 16 ADUs, 12 tiny homes for transitional housing, one townhouse development and a 36-unit apartment building. City staff said they plan to better promote the program and integrate the application into the new permitting system. - Multifamily Property Tax Exemption (MFTE): staff noted House Bill 1494 expands guidance and a new 20-year MFTE option that could reduce administrative burdens; the city currently offers 8- and 12-year exemptions. - Permit-ready plan library and contractor training: staff proposed a library of prefabricated or modular plan sets and workshops with the North Peninsula Builders Association and Peninsula College to train multifamily builders and vendors. - Homelessness navigator and blight reduction: staff proposed hiring a homelessness navigator to coordinate services and a staff-driven blighted property list and redevelopment incentives.
Staff also summarized housing conditions from the housing needs assessment: about half of households in the city were classified as low income (68% of renters), about 38% of households are cost-burdened (spending more than 30% of income on housing/utilities), the city had just under 10,000 housing units in 2022 with roughly 75% single-unit buildings, 9.4% middle housing and 15% multifamily, average rent of about $1,118 per month and an average home price near $452,000. Staff said the city must zone to accommodate roughly 1,970 homes by 2045 and close low-income capacity gaps consistent with state income band targets.
Ending: Staff asked council to prioritize tasks; councilmembers later identified top priorities including blighted property reduction, fee waivers, homelessness navigation and permit-ready plans. The council discussion also centered on whether permit-ready plans are cost-effective for builders and the need to better market and possibly lower construction costs for plan use.
