On November 29, City Council held a work session on the Planning and Sustainability Commission’s Inclusionary Housing Zoning Code Project Recommended Draft which supports amending the Zoning Code and the Housing Code to implement an Inclusionary Housing Program. The proposed 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.

Subsequently, staff have released a Memo of Amendments responding to suggestions from several Commissioners that require amendments to the Recommended Draft. City Council’s consideration of the proposed amendments will be a part of the public hearing scheduled for December 8.

Specifically, the proposed amendments will:

• Phase-in a lower inclusion rate for both the mandatory and voluntary options outside the Central City and Gateway plan districts.  These inclusion rates will start at 15 percent of units at 80% MFI and 8 percent of units at 60% MFI. On January 1, 2019, the rates will increase to 20 percent of units at 80% MFI and 10 percent of units at 60% MFI.
• Change the inclusion rates for the offsite option to incorporate both building new units and dedicating existing units.
• Clarify the compliance method with the Portland Housing Bureau and Bureau of Development Services to ensure that development meets the inclusionary housing standards and administrative requirements; ensure that the affordable dwelling units will remain affordable to households meeting the income restriction.
• Provide an exemption from minimum parking standards for development projects that are close to transit that provide on-site or off-site affordable dwelling units. This exception also applies only to affordable dwelling units that are located on sites that are far from transit. This exception does not apply when a fee-in-lieu of affordable housing is paid.

The other proposed amendments to the Inclusionary Housing Program apply 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 the Inclusionary Housing Program is approved by City Council, all new multi-family or mixed use development with more than 20 units will be subject to the requirements effective as of February 1, 2017.

For more information, read the Staff Memo of Amendments or the Inclusionary Housing Zoning Code Project Recommended Draft.

How can I provide feedback to decision-makers?

The public is invited to testify on the Recommended Draft and Staff Memo of Amendments at the upcoming City Council hearing.

City Council Public Hearing

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

All public hearings will be held in Council Chambers at City Hall, 1221 SW 4^th 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 email: CCTestimony@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

City Council will hold a public hearing on December 8 to hear testimony and consider the proposed amendments. After deliberation, City Council will return for a second reading and vote to adopt the Inclusionary Housing Program. 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.