Housing Production Strategy progress

Overview

These strategies aim to increase the supply of affordable housing units in Portland. The City has a need for quality, affordable homes for a growing and diverse population. The ability to produce affordable housing is dependent on funding availability.

Actions

1. Replace Housing Bonds revenue source

Status: In progress, complete in 2027

• Portland's current Housing Bond is fully committed to ongoing projects.
• The City was recently awarded $7 million of the U.S. Department of Housing and Urban Development’s (HUD) Pathways to Reducing Obstacles (PRO) Housing grant. The action plan was approved by HUD in Jan. 2026. Discussions are underway to develop a communications campaign around the transformational effect of the $469 million expenditures from both housing bond measures on the lives of low-income Portlanders.

2. Create new Tax Increment Financing (TIF) districts

Status: In progress, complete in 2026

• In October 2024, the City adopted six new TIF districts: three in East Portland, and three in the Central City. These include the 82nd Avenue Area, East 205, and Sumner Parkrose Argay Columbia Corridor in East Portland as well as the Central Eastside Corridor, Lloyd-Holladay, and Westside in the Central City.
• Prosper Portland has begun recruitment and convening for community committees and conducting engagement to develop each district action plan.
  • Central City TIF Districts
  • East Portland TIF Districts
• New financial data from the County indicated that the three new Central City TIF districts will not be generating any tax increment resources in the coming fiscal year. Therefore, the work to finalize Action Plans for these districts has been paused until TIF resources come available. However, the community input is being captured in a progress report and utilized to inform the investment of other available economic development resources. Engagement in the three new East Portland TIF districts is in early stages and anticipated to be completed late 2026.

3. Leverage other State and Federal funding sources

Status: Ongoing effort

• The City was awarded a $7 million federal grant through the HUD Pathways to Removing Obstacles (PRO) to Housing program. This grant will be used to support many of the actions outlined in the Housing Production Strategy.
• The City currently leverages the following additional funds for housing:
  • Federal Grants: $7 million Lead Grant
  • Federal Appropriation: $14 million
  • State: $125 thousand Healthy Homes Grant
  • Local Funds: $33 million from the Portland Clean Energy Community Benefits Fund and $9 million in Multnomah County Grant Funding

4. Establish a comprehensive citywide land banking strategy

Status: In progress, complete in 2027

• The Portland Housing Bureau (PHB) issued a Request for Proposal (RFP) for a consultant contract in Summer 2025.
• PHB is elevating its work with Proud Ground and Habitat for Humanity, recognizing that community land trusts play a key role in the Citywide land banking strategy.

5. Rezone sites for affordable housing

Status: Completed in 2026

• The Affordable Housing Opportunities Project was adopted by City Council on Feb. 25, 2026, and became effective on March 27.
• The adopted map amendments are estimated to create capacity for up to approximately 900 additional affordable housing units and support the preservation of approximately 576 existing affordable housing units.

6. Review and update Inclusionary Housing Program

Status: Starts in 2027, complete in 2028

• In 2024, City Council committed to periodically reviewing the regulations and incentives of Portland’s Inclusionary Housing Program and making necessary revisions.
• Read the 2023 Inclusionary Housing Calibration Study.
• PHB is working to identify funding for an economic analysis of the Inclusionary Housing program's impact on development.
• PHB is working to ensure City compliance with SB 1521 (2026)

7. Update short-term rental nightly fee

Status: In progress, complete in 2027

• The short-term rental nightly fee is administered by the City’s Revenue Division as part of Title 6, Specialty Taxes, Chapter 6.09 Nightly Fee on Short Term Rentals. PHB has started working with the Revenue Division to make this change to code.
• PHB is working with the City Attorney's Office on the code process to update the short-term rental nightly fee.
• City Council has approved the updated fees and citation procedure for Accessory Short-term Rentals.

Overview

These strategies aim to address gaps in middle income housing as well as improve homeownership rates, retention, and locational choice for underserved communities.

Actions

1. Create new middle-income financial incentives

Status: In progress, complete in 2030

• Prosper Portland has taken a number of steps to create middle-income housing incentives, including:
  • The creation of new TIF districts necessary to generate resources for middle income housing investment;
  • The development of a strategy for investment of the agency's Strategic Investment Fund;
  • Coordination with the State, County and City to establish local utilization of the State's Middle Income Revolving Loan (MIRL) program.
• Prosper Portland has also streamlined the guidelines of the agency's Commercial Property Redevelopment Loan as a primary mechanism for investing in middle-income housing. The agency is actively working with a developer partner to structure a public-private partnership for the delivery of middle-income units within the Broadway Corridor.

2. Update Land Division Code

Status: Completed in 2024

• The Land Division Code Update project was adopted by City Council in 2024. This project increases opportunities for new housing in lower density zones.

3. Expand homeownership programs

Status: In progress, complete in 2028

• Portland Housing Bureau (PHB) is exploring cooperative homeownership and was awarded funding from the State to provide down payment assistance first-time homebuying program to Veterans.
• PRO Housing Grant funding ($670,000) was awarded to develop and test innovative financing strategies for affordable rental and homeownership. Examples to be explored include: risk sharing pools, loan guarantees, credit enhancement, revolving loan programs, use of 501(c)(3) bonds, and other options to support a diversity of housing types such as middle-income housing, limited profit housing, and cooperatives. Work to completed by December 2029.
• PHB is researching and analyzing alternative homeownership models, including social housing, and the concept of "limited equity" homeownership as related to cooperatives and community land trusts. Report and recommendations to be presented to City Council in August 2026.
• PHB was awarded OHCS State funding to provide down payment assistance first-time homebuying program to Veterans:
  • $120K for 1st Generation home buyers (supporting 4 buyers) and $54K for 1st time-home-buyer (supporting 1 buyer)
  • Eligibilities: less than 100% AMI, for eligible veterans, purchasing within City of Portland

4. Improve middle housing permit process

Status: Starts in 2027, complete in 2028

• BPS is initiating a zoning project to modify middle housing land divisions and changes to comply with HB 2138 (2025), to be completed by January 1, 2027.
• BPS applied for and received approval of DLCD grant for zoning code work related to enhancing regulations in support of middle housing, to be complete by January 1, 2028.
• Portland Permitting & Development is on track for the work identified with a 2027 implementation deadline. Use of previously approved plans is being evaluated. Process improvements are being evaluated as part of the PP&D Blueprint for Collaboration project.

Overview

This initiative increases access to safe and healthy housing for all Portlanders. It focuses on housing production that provides convenient access to jobs, goods and services.

Actions

1. Implement and support catalytic investments

Status: In progress, complete in 2030

• Albina Vision Trust
  • The City is committed to an ongoing collaboration with Albina Vision Trust to transform and reconnect the Lower Albina neighborhood.
  • Metro committed up to $10 million for transformative projects.
  • The Reconnecting Albina Planning Project (RAPP) kicks off to create urban development strategies in the Lower Albina area.
  • Albina One opened in the summer of 2025, providing 94 family-sized units.
• Broadway Corridor PDX
  • An ongoing project led by Prosper Portland to create a mixed-use Broadway Corridor
• Llyod Mall Redevelopment
  • The Lloyd Mall Center City Master Plan was approved by the Design Commission in March 2026.
• Montgomery Park Area Plan
  • The Montgomery Park Area Plan was adopted by City Council and became effective June 1, 2025.
  • The Streetcar Locally Preferred Alternative (LPA) was adopted by Portland City Council in December 2024, with an endorsement vote by Metro Regional Council scheduled for summer 2025.
  • The project is in the Federal Transit Administration (FTA) Small Starts Project Development phase. The Local Preferred Alternative (LPA) will be added to the Regional Transportation Plan (RTP) in 2026, which will quality the project for funding.
• Oregon Museum of Science and Industry Redevelopment
  • Portland City Council approved a partnership term sheet between Prosper Portland, City of Portland and the Oregon Museum of Science and Industry (OMSI) in support of the OMSI redevelopment effort.
  • Funded by a Metro grant, The Center for Tribal Nations project is moving forward with conceptual design, land control, and coordinated implementation.
  • The project plans to include 84-96 workforce housing units for Native professionals (24 studio, 28 one-bed, 12 two-bed, potential for live/work spaces) in addition to a cultural and community gathering space, an Indigenous marketplace and food hall, a Central Utility Plan, Indigenous Data Sovereignty functions, Tribal offices, health and wellness facilities, hotel accommodations and a rooftop restaurant.

2. Increase housing capacity in inner centers and corridors

Status: In progress, complete in 2028

• Bureau of Planning and Sustainability (BPS) staff have initiated an area plan, the Inner Eastside Zoning Project, which will propose zoning map changes to increase housing opportunities in the area through expanded mapping of multi-dwelling and mixed-use zoning.
• BPS was awarded a grant from the State of Oregon to begin this project and conduct the initial infrastructure capacity analysis.

3. Revise zoning bonuses and incentives

Status: In progress, complete in 2026

• The Bureau of Planning and Sustainability was awarded a grant from the Department of Land Conservation and Development (DLCD) to support this project.
• The Housing Bonus Alignment Project will propose zoning code changes to revise density bonuses for affordable housing, accessible housing, and multi-bedroom units in mixed use and multi-dwelling zones outside the Central City.
• The project will be considered by the Planning Commission in Summer 2026.

4. Kickstart housing demand in the Central City

Status: In progress, complete in 2028

• Prosper Portland's Advance Portland initiative to encourage economic growth in Portland is underway.
• Prosper Portland has created three new TIF districts within the Central City necessary to generate resources for investment across a range of economic and urban development activities.
• Prosper Portland has program income resources for ongoing investment in Old Town and the Broadway Corridor.
• The Office of Events and Film is additionally pursuing a range of activation activities intended to increase foot traffic in the Central City.
• In partnership with the Portland Clean Energy Fund, Prosper Portland has also launched a pilot program to support office-to-residential conversion projects as well as support clean energy upgrades for commercial properties.
• Strategic investments are continuing, such as the James Beard Public Market, OMSI, and Broadway Corridor, are a

5. Increase housing capacity in the Central City

Status: In progress, complete in 2026

• Central City Code Amendments Project Proposed Draft to be published in Spring 2026.
• City Council passed Housing Adjustment Compliance Project in 2024, allowing for unlimited height adjustments in the Central City.

6. Identify housing opportunities along 82nd Ave

Status: Starts in 2025, complete in 2027

• BPS was awarded a Metro grant to develop a conceptual master plan for the redevelopment of Eastport Plaza – a 40-acre site on 82nd Ave just south of Powell Blvd.
• In collaboration with communities who are vulnerable to displacement, the plan will consider site conditions, development feasibility, climate resilience, anti-displacement measures, and possible implementation strategies.
• In 2026, BPS will undertake an analysis to identify other development opportunities along 82nd Avenue.

7. Promote increased transit service

Status: In progress, complete in 2028

• Forward Together 1.0
  • The MAX Red Line service extension completed in March 2024.
  • Starting Sunday, June 1, 2025, TriMet implemented new and improved bus service in East Portland.
  • As part of TriMet’s Forward Together service concept, TriMet is revamping bus service throughout the region to make bus better, especially for people with low and limited incomes.
  • PBOT was awarded multiple Metro Regional Flexible Fund Allocation (RFFA) awards:
    • Line 87-Airport Way/181st received more service, a route change and became TriMet’s newest Frequent Service bus line, with buses arriving every 15 minutes or better for most of the day, every day.
    • In August 2024, TriMet made new service changes to Line 25-Glisan/Troutdale Rd and Line 40-Tacoma/Swan Island.
• 82nd Ave Transit Project
  • As of Spring 2026, the project team is working on 60% design plans, with additional community engagement in Summer 2026.
  • In May 2025, Portland City Council adopted the Locally Preferred Alternative (LPA) for the 82nd Ave Transit Project.
  • In June 2025, Metro Council approved a resolution to endorse the 82nd Avenue Transit Project's LPA.
  • As part of this project, the Portland Bureau of Transportation (PBOT) is completing safety and maintenance improvements to 2.5 miles of 82nd avenue.
  • A second phase of roadway improvements will take place in coordination with construction of the 82nd Avenue Transit Project.
• Better Bus/ Rose Lane Transit Network
  • In partnership with the City of Portland, TriMet was awarded a fourth Oregon Department of Transportation (ODOT) STIF Discretionary grant of $612,000 for Transit Priority Spot Improvements in the Fiscal Year 2025-2027. PCEF's "Federal Climate and Equity Funding Opportunities" program committed up to $612,000 of local match to the grant. Total funding is $1,224,000.

8. Incorporate Affirmatively Further Fair Housing

Status: Starts in 2025, complete in 2030

• The Portland Housing Bureau has been awarded a PRO HUD housing grant to support this project and to implement a new Fair Housing plan.

Overview

The City has been actively adopting solutions for known regulatory impediments as identified through the Permit Improvement Task Force. These actions will reduce barriers to development by improving services related to developing and permitting, and by amending development code regulations.

Actions

1. Improve regulatory reform process

Status: In progress, complete in 2030

• Code Alignment Project proposed draft was adopted in Fall 2026.
• Additional scoping for follow-up work is underway.

2. Improve user experience within permitting systems

Status: In progress, complete in 2026

• Unified most City permitting activity into a single agency – Portland Permitting and Development (PP&D).
• Developed and implemented a new public data dashboard.
• Held 14 business process analysis workshops to understand and improve the permitting process
• Established a New Single-Family Residence (NSFR) and detached ADU intake process. PP&D plans to digitize other housing types.
• Created a more accurate Pre-Issuance List.
• Established a Single Point of Contact.
• Conducted an annual customer survey.
• Public Works is now using ProjectDox for all of their Public Works reviews. Inefficiencies within Public Works review process continue to be monitored and further improvements are being assessed.

Digital Services wins national award for permitting website:

The City of Portland's Digital Services team received the Innovation in Constraints Award at the 2025 Digital Service Champions Awards in December. Presented by U.S. Digital Response—a nonprofit that supports human-centered technology work in the public sector—the award recognizes the Bureau of Technology Services Digital Services team for its partnership with Portland Permitting & Development to improve the user experience of the city's permitting website.

3. Reform development services funding model

Status: In progress, ongoing

Portland Permitting & Development (PP&D) staff interviewed 9 different jurisdictions on the West coast to assess how they fund their development services departments. Those cities are San Francisco, CA, San Diego, CA, Seattle, Washington, Hillsboro, OR, Tigard, OR, Eugene, OR, Gresham, OR and Salem, OR. Based on these interviews, the majority of jurisdictions fund their building departments similar to PP&D. Continued conversation and research is planned for the coming year.

4. Explore infrastructure investments and strategies

Status: Starts in 2028

5. Revise System Development Charges (SDC)

Status: In progress, complete in 2027

• The City approved a temporary SDC exemption to kickstart new housing construction.
• The Bureau of Environmental Services implemented rule changes related to the user, development, and connection charges study in Fiscal Year 2024-25.
• Parks will review and update the SDC Program methodology. Previously, this was anticipated for summer 2026. With the City's organizational change, this review has been delayed.
• In 2025, the Portland Bureau of Transportation has started the process to update the fees and charges with adoption in 2027.

Overview

The City continues to invest in policies and programs that provide funding or aid to Portlanders to maintain their housing. New strategies focus on actions that will preserve the supply of affordable housing units, including unregulated affordable housing, and ensuring equitable access to housing. These strategies support the stabilization of current and future households to prevent houselessness and reduce housing insecurity.

Actions

1. Preserve existing affordable housing

Status: In progress, complete in 2028

• The Portland Housing Bureau (PHB) released the 2024 Rapid Acquisition Request for Proposals to expedite affordable housing development. PHB will fund up to $15 million in Metro Housing Bond funds for acquisition of previously unregulated housing.
• In October 2024, City Council authorized PHB to provide acquisition financing up to $6 million to help Washington-based Vital Housing buy Belmont Dairy Apartments and Lofts, at 3340 S.E. Morrison St.
• With PHB funding support, Home Forward acquired Cesar Apartments, a 47-unit building in the Richmond neighborhood. Home Forward will convert these apartments into Permanent Supportive Housing for those exiting chronic houselessness.
• In June 2025, PHB facilitated a $26M investment to acquire and convert three apartment buildings to affordable housing.
• In June 2025, PHB facilitated a $26M investment to acquire and convert apartment buildings to affordable housing. These include:
  • The Acqua Apartments, a cost-effective acquisition which converted 100 units from market-rate to affordable in the South Waterfront (TIF).
  • The Goose Hollow Lofts, another rapid acquisition, that converted 61 market-rate apartments to affordable housing in close-in Southwest Portland (Metro Bond)
  • The Paramount Apartments, which converted 65 existing homes to affordable housing adjacent to Albina One in North Portland (TIF)
• PHB executed Stabilization Memorandum of Understandings (MOUs) with four organizations with struggling portfolios. The MOUs provide a framework to consider regulatory flexibility and other supportive actions for challenged projects.
• Restructuring financing for 5 affordable projects to right size operating expenses, reduce debt, and achieve more affordable rents.
• Awarded $2M to affordable projects for safety and security grants. These funds can be used for capital improvements such as key fob entry, gates, fences, security cameras, etc.
   

2. Launch affordable housing listing service

Status: In progress, complete in 2028

• PHB was awarded PRO HUD housing grant to support an affordable housing listing service.
• In 2025, PHB has conducted a request for professional services for an affordable housing listing service.

Overview

These strategies promote age and disability friendly housing and increase Portland’s ability to ensure equitable access to housing. These strategies build on the recommendations in the Action Plan for Age- and Disability-Inclusive Neighborhoods and make a special effort to remove disparities in housing access for people with disabilities and older adults.

Actions

1. Implement accessible housing production strategies

Status: Starts in 2027, complete in 2028

• The Age and Disability Inclusive Neighborhood Action Plan was finalized and published in December 2024.
• RICAP 11 includes inclusive language amendments to Chapter 33.229 — Elderly and Disabled High-Density Housing. The Planning Commission made a recommendation, and the City Council is expected to adopt the package in Summer 2026.
• The Housing Bonus Alignment Project includes proposed revisions to increase the effectiveness of an Accessible Housing Bonus. The project will be considered by the Planning Commission in Summer 2026.

2. Educate on opportunities for aging in place and community

Status: Starts in 2028, complete in 2029

Overview

These strategies focus on building and maintaining Portland’s housing to foster environmental and community health. They build on actions in the Climate Emergency Work Plan and the Climate Investment Plan.

Actions

1. Support mass timber and modular innovations

Status: In progress, complete in 2029

• The Portland Housing Bureau (PHB) has initiated a city-level mass timber accelerator. Additionally, PHB will conduct net-zero and mass timber feasibility analyses on two apartments being proposed for the Portland land bank.
• PHB issued an RFQ in 2025 to select up to five grantees to conduct feasibility studies for utilizing mass timber in the construction of multidwelling and commercial developments. Grantee awards and agreements will be executed in 2026 and project team findings will be shared via service-area presentations.
• PHB has been awarded PRO HUD housing grant to support this project.

2. Develop low carbon building policies

Status: In progress, complete in 2026

• In 2025, the new Sustainability and Climate Commission was established. The Commission will lead and advise the development of the next climate action plan, which will contain policy related to this action.

3. Promote commercial to residential conversation and adaptive reuse

Status: In progress, complete in 2026

• The City amended the seismic design requirements for office to residential conversions.
• The Portland City Council adopted a limited exemption from System Development Charges for certain areas if building is kept residential for 10 years. This action is implemented by PHB.
• BPS received a Climate Pollution Reduction Grant through Department of Environmental Quality to pilot Commercial (including multi-dwelling) deconstruction.
• The Portland Clean Energy Community Benefits Fund (PCEF) and Prosper Portland established a funding partnership to support conversion projects.
• Prosper Portland approved low interest loans for two adaptive reuse projects in Old Town.
• Prosper Portland and PCEF allocated $7 million of pilot PCEF investment for two projects in the Central City
• The Bureau of Planning and Sustainability's Adaptive Reuse study is complete. This study looked at various financial and regulatory tools impacting the feasibility of conversions with a focus on office-to residential conversions and included several recommendations on possible code and policy changes. Relevant City bureaus will consider consultant's recommendations and available resources and prioritize which to pursue in the near and longer term. Some recommendations may require further investigation, additional resources, or code changes through legislative processes and/or advocacy at higher levels of government.
• Expansion of historic resource incentives to allow a wider variety of uses not otherwise allowed will be included in TBD future project.
• Select code provisions related to adaptive reuse in the Design Overlay Zone are being studied through Design Review Reform Report.
   

4. Implement heat adaptation recommendations

Status: In progress, complete in 2030

Overview

The City faces limitations in its role at the local level. Community feedback on the Housing Production Strategy indicated a need for the City to advocate for funding and policy changes as the State and Federal level. These changes will help promote housing production and the type of housing needed in Portland. The following strategies identify state and federal action that would advance Portland’s housing production strategies and goals. This list is meant to highlight various advocacy efforts that would help the City overcome some of the financial and regulatory barriers to housing production.

Every year, the City develops Legislative Priorities, informed by staff across the City. The Office of Government Relations develops and shares these on their site while they work through the year to elevate key issues at the State and Federal level.

Read 2025 City Legislative Priorities.

Read 2026 City Legislative Agendas here.

Ongoing priorities

1. Advocate for Funding for Production and Preservation
2. Advocate for Regulatory and Code Changes to Meet Housing Need
3. Advocate for Policy that Supports the Building of Resilient Homes