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The City of Portland, Oregon

Planning and Sustainability

Innovation. Collaboration. Practical Solutions.

Phone: 503-823-7700

Curbside Hotline: 503-823-7202

1900 SW 4th Ave, Suite 7100, Portland, OR 97201

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About the Inclusionary Housing Zoning Code Project

With the adoption of SB 1533 in February 2016, the City of Portland has taken measures to address the affordable housing shortage. This project creates the zoning structure needed to implement the Inclusionary Housing Program as well as density bonuses to help offset the cost of providing the required affordable housing units. Access to FAR and/or height bonuses is dependent on compliance with the Portland Housing Bureau’s Inclusionary Housing Program.

The Inclusionary Housing Zoning Code Project will:

  1. Coordinate with Portland Housing Bureau to develop a density bonus structure in the form of FAR/height bonuses and an alternative fee-in-lieu bonus.
  2. Develop new Zoning Code to implement the Inclusionary Housing Program.
  3. Incentivize the provision of affordable housing in new developments.

This project will establish a development standard that requires new multi-dwelling development with more than 20 dwelling units to include a share of the dwelling units to be affordable at 80% median family income (MFI), or pay a fee in lieu to comply with the Portland Housing Bureau Inclusionary Housing Program.

As part of the newly adopted 2035 Comprehensive Plan, the Bureau of Planning and Sustainability is updating its commercial zones through the Mixed Use Zones Project. The bureau is also in the process of updating the Central City Plan.

The Central City Plan District (33.510) will be amended to add two floor-area ratio (FAR) bonuses: one for providing units onsite and the other through contribution to an Affordable Housing Fund. The Mixed Use Zones will include an FAR and height bonus. Density bonuses for the Multi-Dwelling Zones will be added at a later date.  

The Inclusionary Housing Program will be implemented in two steps:

  1. The Interim (2017) code – Amends current zoning code for Central City Plan District, Commercial Base Zones, and Multi-Dwelling Base Zones.
  2. The Final (2018+) code – Added to new Central City 2035 Zoning Code and Mixed Use Zones Zoning Code, and eventually to Multi-Dwelling Zones.