Oregon Governor Backs Portland Mayor’s Initiative To Fast Track 5,000 New Houses
Oregon Governor Tina Kotek and Portland Mayor Keith Wilson have announced a new initiative to fast-track the development of 5,000 new housing units in Portland by waiving development fees.
Part of Portlands Multifamily Housing Workgroup’s early actions launched earlier this year, the initiative would temporarily waive System Development Charges (SDCs) until 5,000 units are built or three years have passed if the City Council approves it. The temporary waiver of SDCs is critical to move these projects forward.
Governor Kotek said, “Portlanders are impatient for more progress on the city’s housing supply crisis. So am I, and so is the Mayor.”
An Oregon System Development Charges Study indicates that SDCs in Oregon can range from $15,000 to $50,000, representing 3-6% of total development costs.
The Housing Accountability and Production Office (HAPO) and a moderate-income revolving loan fund to support housing development have already been established as part of the broader effort by Governor Kotek to create a healthy, affordable housing market.
The state estimates that 2,800 affordable housing units will be financed by July, creating infrastructure that will support over 25,000 units under construction over the next two years.
The initiative seeks to provide a temporary, crisis-time opportunity for developers to build with lower costs in Portland.
The City of Portland currently has over 6,000 housing unit applications- many of which are stalled because of financial constraints. Mayor Wilson emphasized that by temporarily waiving SDC fees, stalled plans can become real homes for real people.
He said developers are currently ready to build over 4,000 homes in Portland.