The Portland Housing Bureau (PHB) is gearing up to present final recommendations for potential code changes to the Inclusionary Housing (IH) program at the upcoming City Council presentation and public hearing scheduled for January 10, 2024. The final vote on these recommendations is slated for January 31, 2024, with the proposed changes anticipated to go into effect as of March 1, 2024.
Commissioner Carmen Rubio, heading the Community and Economic Development bureaus, including Housing, Planning and Sustainability, Development Services, and Prosper Portland, initiated an extensive housing production analysis over the past year. The culmination of this effort was presented in a Council work session in July 2023, leading to recommendations aimed at fostering housing development in Portland.
Since the IH calibration study’s conclusion in July, PHB staff, in collaboration with consultant team BAE Urban Economics and the IH work group, have worked diligently to develop proposed code changes aligned with key recommendations. These changes will be presented to the City Council along with a public hearing on January 10, 2024.
Proposed Changes to the Inclusionary Housing Program:
• Expanding Property Tax Exemption: The recommendations include an expansion of the IH full-building property tax exemption to cover all residential units within eligible neighborhood areas, particularly in higher-rent submarkets outside the Central City. This extension aims to offset the impact of affordability requirements under IH in those neighborhoods.
• Revision of Goals: The goals for the tax exemption and the Inclusionary Housing programs will be revised to align with the evolving needs of the city’s housing landscape.
• Code Streamlining: Outdated sections of the code will be removed, definitions will be updated, and new ones added for clarity. Technical corrections and the rectification of scriveners’ errors are also part of the proposed changes.
Timeline and Coordination: The final recommendations will be presented at the City Council on January 10, 2024, with a potential vote on January 31, 2024. The proposed changes are expected to be effective from March 1, 2024. Commissioner Rubio has directed that projects currently in the pipeline and those already under construction will be able to benefit from these changes.
These proposed code changes will align with the Bureau of Planning and Sustainability’s Housing Regulatory Relief proposals, aiming to enhance housing production by providing regulatory relief for developers and builders through temporary waivers and permanent changes to zoning regulations. Draft code amendments for these proposals were released in September 2023, currently undergoing review by the City Planning Commission, with community input actively encouraged.
Additionally, Housing Bureau staff are working on additional changes to the Inclusionary Housing and tax exemption administrative rules, with updates expected to be shared publicly in the coming weeks. These changes, anticipated to be effective March 1, 2024, will clarify and simplify program requirements, especially for offsite affordable units and the provision of required affordable units in larger, family-sized configurations.
According to officials, these proposed changes aim to create a more inclusive and sustainable housing environment for all residents. Stay tuned for further updates as the City Council evaluates and votes on these significant amendments to the Inclusionary Housing Program.
