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Port Townsend council approves first reading of ordinance to implement state rules easing building conversions

Port Townsend City Council · June 1, 2026
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Summary

The council gave first reading to an ordinance to implement House Bill 1757, allowing certain conversions of commercial and other existing buildings to residential uses with limits on density, energy‑code application, and a three‑year certificate‑of‑occupancy eligibility rule.

The Port Townsend City Council on a voice vote approved the first reading of Ordinance 3366, a package of code changes intended to implement state House Bill 1757 and streamline conversion of existing buildings to residential units.

Council hearing materials and staff presentations described the ordinance as an effort to "facilitate the conversion of existing buildings to residential use," provide clear exemptions and applicability rules, and align local rules with recent state law, Ryan Herrmann, Planning Manager, told the council. Herrmann said the changes were developed with extensive public input, the planning commission and interns from Western Washington University.

Senior Planner Adrian Smith and interns outlined key provisions: conversions may allow up to a 50% increase over the underlying zone's unit allowance (effectively up to 150% total in some cases); a building must have held a certificate of occupancy for at least three years before a conversion application is eligible; and energy‑code requirements generally apply to newly created or altered units but may be waived for small units or where the increase in projected energy use is demonstrably negligible. "The purpose is to streamline the process for building conversion," Rory Clark, one of the student presenters, said during the presentation.

Staff also explained that for buildings along designated "major pedestrian corridors," local rules can still require maintenance of ground‑floor commercial space when a conversion affects an existing commercial storefront. Presenters noted the city can still encourage affordability by linking conversions to its multifamily tax exemption program but cannot impose permitting requirements beyond those generally applicable to residential development under state law.

During public comment, resident Scott Walker asked whether converting a daylight basement into a duplex or ADU would be permitted; staff clarified duplexes are already allowed in the C2S subarea and the proposed code would create additional pathways for an extra dwelling unit without forcing a duplex conversion.

The planning commission recommended adoption of the amendments, and staff noted the statutory deadline to adopt code implementing HB 1757 is June 30. Councilors asked staff to return with clarifications on the three‑year CO requirement at the June 15 meeting. A councilor moved and seconded the first reading of Ordinance 3366; the council approved the motion on a voice vote.

Next steps: staff will return to the council for a second reading and likely adoption at the next regular meeting; staff also committed to provide clarifications on eligibility windows requested by council members.