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Inclusionary Housing Zoning Code Project

The Inclusionary Housing Zoning Code Project is a collaborative effort between the Bureau of Planning and Sustainability and the Portland Housing Bureau to meet the need for affordable housing in the city. With the adoption of SB 1533 in February 2016, the City of Portland has taken new measures to address the affordable housing shortage and created an Inclusionary Housing Program. The new program mandates the provision of affordable housing units in new multi-dwelling residential development through policies and regulations.

The Inclusionary Housing Zoning Code Project creates a new mandate for the production of affordable housing as a share or portion of the dwelling units in new development with more than 20 units in one building. Specifically, the program requires residential development projects to provide housing affordable to households below 80 percent of median family income (MFI) with an alternative option for projects that choose to produce housing for households at 60 percent MFI and below.

The recommended Zoning Code amendments set the percent of all units in a development that must be affordable to meet the terms of the program, called the “inclusion rate”.

The recommended zoning code amendments include:

  • Create a new chapter in Title 33 (33.245) to establish the inclusionary housing standard, which is the portion of the new dwelling units (“the inclusion rate”) that must be provided in one of the following ways:
    • On-site. Providing at least 20 percent of the units are affordable to those earning no more than 80 percent MFI, or at least 10 percent of the units are affordable to those earning no more than 60 percent MFI; or
    • Off-site. Either construct new units or dedicate existing units.  If constructing new units, either provide 20% of the total units at 60% MFI, or 10% of the total units at 30% MFI. If dedicating existing units, either provide 25% of the total units at 60% MFI, or 15% of the total units at 30% MFI; or
    • The applicant pays a fee-in-lieu of providing affordable units.
  • Change the base zones and the Central City and Gateway Plan Districts subject to the Inclusionary Housing Program requirements to develop a base FAR and allowable bonus FAR to offset some of the cost of compliance with the IH program.
  • Eliminate the parking minimums for residential development projects close to transit in the current Zoning Code (effective date of February 1, 2017).

The other parts of the Inclusionary Housing Program will be implemented through amendments to Title 30, the Housing Code. These provisions include the incentive packages offered to offset the costs to development and a fee schedule for the in-lieu fee option.

The Inclusionary Housing Zoning Code Project Recommended Draft was published on November 21, 2016, and the public is invited to testify on the Recommended Draft to the City Council, which will hold a public hearing on the proposal, tentatively scheduled for Thursday, December 8, 2016.

Questions or Comments?
Tyler Bump, Senior Economic Planner, 503-823-7713, tyler.bump@portlandoregon.gov


Portland Housing Bureau Inclusionary Housing Website

For more information on the Inclusionary Housing Program, please visit the Portland Housing Bureau's Inclusionary Housing webpage