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Inclusionary Housing Recommended Draft now available; City Council public hearing scheduled for December 8

City Council will consider a recommendation from the Planning and Sustainability Commission (PSC) to amend the Zoning Code and the Housing Code to implement an Inclusionary Housing program. A work session is scheduled for November 29, followed by a public hearing on December 8.

The Inclusionary Housing zoning code changes create a new mandate for the production of affordable housing. New development with more than 20 units in one building will be required to have a share or portion that is affordable as defined by proposed regulations.

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 proposed amendments set the percent of all units in a development that must be affordable to meet the terms of the program. Referred to as 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.

The other zoning code amendments change the base zones of the Central City and Gateway Plan Districts to develop a base Floor Area Ratio (FAR) and bonus FAR to offset some of the cost of compliance with the IH program. The proposed amendments also eliminate the parking minimums for residential development projects close to transit.  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.

If approved by City Council, all new multi-family or mixed use development with more than 20 units will be subject to these requirements effective as of February 1, 2017.

For more information, read the Inclusionary Housing Zoning Code Project Recommended Draft

City Council Briefing and Public Hearing(s):

The public is invited to testify on the Recommended Draft at the upcoming City Council hearing.

Staff will start the process by providing a briefing to City Council on the Recommended Draft. Council will then hold a public hearing, followed by a vote to adopt the code changes.

November 29, 9:00 a.m. (time certain)
Briefing (no public testimony)

December 8, 2:00 p.m. (time certain)       
Public hearing

All public hearings will be held in Council Chambers at City Hall, 1221 SW 4th Avenue. Meetings will be broadcast live at http://www.portlandoregon.gov/28258.

How do I testify at City Council?
You may testify in person by signing up when you arrive. Check the Council agenda prior to the hearing to confirm the item is still scheduled.

You may also testify on the Recommended Draft in writing:

Via U.S. Mail: 1221 SW Fourth Ave. Room 130, Portland, Oregon 97204

Via emailCCTestimony@portlandoregon.gov.

Note: Written testimony must be received by the end of the hearing(s) and must include your name and address. All testimony to City Council is considered public record, and testifiers' name, address and any other information included in the testimony will be posted on the website.

Next steps

After the briefing and public hearing, City Council will vote to adopt the new regulations. Changes to the Zoning Code are anticipated to become effective on February 1, 2017.

For more information, visit the Inclusionary Housing Program website and/or the Inclusionary Housing Zoning Code Project website.