Port Townsend code may streamline building conversions

Published 1:30 am Wednesday, June 3, 2026

PORT TOWNSEND — The Port Townsend City Council passed the first reading of an ordinance which aims to reduce barriers for the conversion of commercial or residential buildings into residential units.

The ordinance was developed to come into compliance with House Bill 1757. Jurisdictions are required to adopt code aligning with the bill by the end of the month.

The council will need to approve a second reading before it can go into effect. It plans to discuss the ordinance at its June 15 business meeting.

Students from Western Washington University’s Urban Planning and Sustainable Development program, with which the city of Port Townsend has a relationship, worked on the ordinance as interns and presented it to the council along with city staff.

“We have a purpose to facilitate conversion of existing buildings to residential use,” intern Rory Clark said. “We have a set criteria, that building conversions must be exempt from design review unless the building is under a historic landmark. Then it follows the historic preservation code.”

Under the bill, conversions will get a major boost in density. State law dictates that cities cannot impose restrictions that prevent property owners from adding up to 50 percent more housing units than the underlying zone normally allows.

To qualify for the streamlined regulations and exemptions, a building must already have held an official certificate of occupancy for at least three years before the conversion application is submitted. The structure also must be located within a zone that already allows for multifamily housing.

The three-year timeline is meant to prevent developers from building brand-new, single-family homes and immediately turning around to exploit the multifamily conversion rules, which allow for greater density, Senior Planner Adrian Smith said.

The new code also aims to keep construction and retrofitting costs down for developers.

Property owners will not be required to bring untouched parts of an existing building up to current state energy code standards.

“Unchanged units do not need to be brought up to the current existing standards or energy code standards, but new units or newly changed units must generally follow the code,” intern Kelsey Fetters said.

If the new unit is less than 2,500 square feet or 50 percent of the total building square footage, whichever is greater, it would not be required to meet state energy code. Additional exceptions apply to conversions that hit specific predetermined energy performance thresholds.

Separate from the energy rules, buildings with a legally recognized historic status still must go through their specific historic preservation permitting and design review process.

While the ordinance would make it easier to build housing, it would protect the economic utility of the city’s main commercial hubs. Commercial zones would accept expanded housing types like multiplexes and employer-provided housing. However, ground-floor retail spaces that front designated major pedestrian corridors are required to remain commercial.

Council member David Faber said he supports the new code, but he noted it doesn’t go far enough in breaking down the zoning boundaries that prevent development.

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Reporter Elijah Sussman can be reached by email at elijah.sussman@peninsuladailynews.com.