30.01.120 Inclusionary Housing.

City Code Section

(Added by Ordinance 188163; amended by Ordinances 189071, 189213, 189302, 190145, 190523 and 191610, effective March 1, 2024.)

  1. A. Purpose statement. The purpose of the Inclusionary Housing (“IH”) program is to:
    1. 1.  Establish an IH program structured to support the production of units affordable to households’ earning 80 percent of the median family income (“MFI”), with an emphasis on households earning 60 percent MFI or less,
    2. 2.  Structure the IH program to provide a variety of compliance options with an emphasis on mixed-income buildings in high opportunity areas.
    3. 3.  Provide IH program options and requirements to support the production of a variety of affordable unit types regarding unit size and bedroom count.
    4. 4. Ensure IH units are equivalent to market rate units regarding in-unit amenities and are distributed throughout the building with access to all building amenities.
    5. 5. Allocate IH program fee-in-lieu, fees, and charges, collected and paid into the inclusionary housing fund for housing opportunities affordable to households earning 80 percent MFI or less, with an emphasis on households earning 60 percent MFI or less.
  2. B.  Administration.
    1. 1.  PHB will certify whether the applicant’s proposed building, as defined in PCC Section 3.103.020, meets the standards and any administrative requirements set forth in this Section.
    2. 2.  The Director of PHB or a designee may enter into covenants and agreements, establish and charge administrative fees, prepare forms and adopt, amend and repeal administrative rules which establish, procedures, policies, program requirements, compliance monitoring standards, and penalties, for implementation, administration, and enforcement of a program consistent with the provisions of this Section. The Director of PHB, or a designee, has authority to make changes to the administrative rules as is necessary to meet current City housing program requirements. PHB administrative rules will set forth clear and objective criteria to establish minimum standards for units restricted under the IH program.
    3. 3.  PHB will review the inclusionary housing outcomes periodically in order to determine if the IH program options and incentives in Subsection 30.01.120 C. are consistent with City goals and market conditions.
  1. C.  Financial incentives. The following financial incentives are provided for the respective options of IH program compliance:

    1. 1.  When the proposed building will include 20 percent of the units or total number of bedrooms configured into IH units at or below 80 percent MFI:

      1. a.  Ten-year property tax exemption in accordance with PCC Chapter 3.103; and

      2. b.  Construction Excise Tax exemption for the IH units in accordance with PCC Subsection 6.08.060 A.2.

    2. 2.  When the proposed building will include 10 percent of the units or total number of bedrooms configured into IH units at or below 60 percent MFI:

      1. a.  Ten-year property tax exemption according to PCC Chapter 3.103; and

      2. b.  Construction Excise Tax exemption for the IH units in accordance with PCC Subsection 6.08.060 A.2.; and

      3. c.  SDC exemption for the IH units in accordance with Section 30.01.095.

    3. 3.  When the proposed building elects to construct IH units offsite in a building that has yet to receive a building permit issuance from Portland Bureau of Development Services:

      1. a.  Ten-year property tax exemption according to PCC Chapter 3.103 for the building containing the IH units;

      2. b.  Construction Excise Tax exemption for the receiving building's IH units in accordance with PCC Subsection 6.08.060 A.2.; and

      3. c.  SDC exemption for the receiving site’s IH units in accordance with Section 30.01.095.

    4. 4.  When the applicant elects to dedicate IH units in an existing building or building that has already received a building permit issuance, there are no financial incentives.

    5. 5.  When the applicant elects the fee-in-lieu option, there are no financial incentives.

  2. D.  Standards. Buildings providing IH units must satisfy the following standards:

    1. 1.  The IH units must meet clear and objective administrative criteria that ensure a reasonable equivalency between the IH units and the market-rate units in the building;

    2. 2.  The IH units will remain affordable for a period of 99 years;

    3. 3.  Owners of the building subject to the IH program must execute a covenant with the City and record it with the property where the IH units are located;

    4. 4.  The owner or a representative will submit annual documentation of tenant income and rents for the IH units to PHB;

    5. 5.  The City may inspect the IH units for fire, life and safety hazards and for compliance with IH program requirements and may inspect files documenting tenant income and rents of the IH units; and

    6. 6.  Failure to meet the requirements of the IH program applicable at the time the building permit is reviewed by PHB, or anytime during the 99 year affordability restriction period, will result in penalties as detailed in the inclusionary housing administrative rules, could result in legal action if unpaid.

    7. 7.  When the required minimum IH units are reconfigured based on a percentage of the total number of bedrooms within the proposed building, the IH units must be provided in 2 or more bedrooms per unit.

  3. E.  To the extent that a financial incentive as set forth in this Section is not available to a building that otherwise complies with PCC Chapter 33.245, the IH program will not be applicable to the building. If the IH program is not applicable to the building, PHB will provide a letter certifying that the building is not subject to any IH program requirements.

  4. F.  Fee-In-Lieu. When the applicant elects the fee-in-lieu option, the fee-in-lieu must be paid at the time of building permit issuance. The fee-in-lieu per gross residential and residential related square foot (GSF) of the proposed building is:

    1. 1.  For buildings in zones outside the Central City Plan District: Fee per GSF $23

    2. 2.  For buildings in zones within the Central City Plan District: Fee per GSF $27

    3. 3.  For bonus FAR in non-residential buildings and for residential buildings not otherwise subject to inclusionary housing: Fee per GSF of bonus FAR $24

Upcoming and Recent Changes

Ordinance 191610

Effective Date
Back to top