Require City Administrator to prepare a report with recommendations to reform the City design review process
WHEREAS, the 2035 Comprehensive Plan housing goals and policy objectives commit to providing Portlanders with high-quality, affordable housing across income levels that promotes access to jobs, goods and services; and
WHEREAS, the 2045 Housing Needs Analysis estimates that Portland must build approximately 6,000 units per year for the next 20 years to meet current needs and population projections; and
WHEREAS, outside of the Central City and Historic Districts, Oregon land use law provides that a local government must adopt and apply only clear and objective standards, conditions and procedures regulating the development of housing, and that these standards, conditions and procedures may not have the effect of discouraging needed housing through unreasonable cost or delay; and
WHEREAS, a March 2025 ECONorthwest report indicated that in the fourth quarter of 2024, the City of Portland produced the fewest housing units in a single quarter since 2011; and
WHEREAS, the 2035 Comprehensive Plan Goal 6.B: Development states that in supporting an environment for industrial, commercial, and institutional job growth and development, Portland will maintain a local development review system that is nimble, predictable, and fair; and
WHEREAS, in June 2021, Council adopted Ordinance 190477 amending the Zoning Map, Title 33 Planning and Zoning, and Title 32 Signs and Regulated Regulations to implement the Design Overlay Zone Amendments project to update the process and tools of the Design Overlay Zone and related code sections; and
WHEREAS, in August 2023, the Portland City Council adopted Resolution 37628, directing the consolidation of development review and permitting staff into one entity by July 1, 2024, with the goal of improving City delivery of development review and permitting services; and
WHEREAS, in January 2024, the Portland City Council approved Ordinance 191609, the Housing Regulatory Relief Project, to increase residential development through temporary waivers, including waiving specified design rules, and temporarily reducing procedure types for design reviews of projects that include residential uses; and
WHEREAS, in August 2024, the Seattle City Council passed a Design Review Exemption Ordinance for designated downtown districts for a period of three years to help promote housing and job production at a lower permit cost and a with shorter permit review times; and
WHEREAS, the City Council must analyze all constraints on development in order to maximize Portland's opportunities for economic growth and the development of needed housing.
NOW, THEREFORE, BE IT RESOLVED that no later than 120 days from the date this resolution is adopted, the City Administrator shall deliver a report to Council on Portland's design review process, to include but not be limited to:
- An overview of discretionary and non-discretionary design review, including explanation of state land use laws with which the City must comply;
- An overview of the two-track design review process, including each of the design review types (Type I, Type II, and Type III), related fee structures, procedures and timelines;
- An overview of the design overlay zone, design districts and other conservation and historic districts to which design guidelines apply; and
- An analysis of current and projected short- and long-term economic impacts of required design review processes on commercial and residential development timelines for projects located within the City within the previous five years, and the potential impacts of these processes for the next five years.
BE IT FURTHER RESOLVED that 120 days from the date this resolution is adopted, the City Administrator shall prepare a set of recommendations and outline a legislative pathway to reform the City's design review process in order to increase residential and commercial development within the City, including:
- Options for a temporary exemption on design review requirements, where legally feasible; and
- Concepts on potential changes to Portland City Code Chapters 33.825, Design Review; 33.710.050, Design Commission; and other related code sections.
Official Record (Efiles)
Impact Statement
Purpose of Proposed Legislation and Background Information
This resolution aims to analyze the City's current design review process and identify a potential legislative pathway to reform the design review process in order to increase commercial and residential development in Portland.
The resolution directs the City Administrator to deliver a report to Council on the City's design review process, including an analysis of impacts of the design review process on commercial and residential development timelines for projects within Portland in the previous five years as well as anticipated impacts in the next five years. The resolution also directs the City Administrator to develop a set of recommendations for Council consideration to reform the design review process in support of increasing residential and commercial development, including a temporary exemption on design review requirements and concepts on potential changes to sections within Portland's Zoning Code, Title 33, pertaining to Design Review or the Design Commission.
Background information:
The City's 2045 Housing Needs Analysis estimates that Portland needs to build 6,000 residential units per year for the next 20 years to meet current housing needs and projected population growth. The 2024 Portland Housing Bureau State of Housing Report indicated that from 2010 to 2024, Portland permitted approximately 4,340 residential units per year. A March 2025 ECONorthwest report indicated that in the fourth quarter of 2024, the City produced the fewest housing units in a single quarter since 2011.
In July 2025 City Council passed an ordinance issuing a temporary exemption on System Development Charges on housing units permitted over the next three years, with a goal of producing 5,000 new housing units in this time period. The Code Alignment Project adopted by Council in September 2025 temporarily suspended certain rules on projects that add to or alter existing development, aiming to speed up permitting and development timelines.
This resolution parallels current efforts to identify areas within the development review process, specifically design review, that may contribute to deterring or slowing commercial or residential development projects, and improve the Council's understanding of design review and its alignment with state and local land use laws as well as City policy goals.
Financial and Budgetary Impacts
The resolution is not anticipated to have immediate budgetary impacts, provided the work can be absorbed within existing staff workplans in the Community and Economic Development Service Area, specifically the Bureau of Planning and Sustainability and Portland Permitting and Development.
Economic and Real Estate Development Impacts
While the resolution will not have immediate economic and real estate impacts, the intended long-term outcome is that potential reform of the design review process will lead to an increase in production of commercial and residential units.
Community Impacts and Community Involvement
The resolution directs the City Administrator to deliver a report to Council on the City's design review process, including concepts on potential changes to the current process. When the recommendations are submitted to Council, it is anticipated there will be opportunity for public comment on any potential policy changes based on the City Administrator's recommendations.
100% Renewable Goal
The directives of the resolution do not increase or decrease the City's total energy or renewable energy use.
Economic and Real Estate Development Analysis
Analysis provided by Prosper Portland
An Economic and Real Estate Development Impact Analysis was not submitted for this proposed action. Pursuant to City Council Resolution 37664, Prosper Portland staff has reviewed the action and agree that it does not require an Economic and Real Estate Development Impact Analysis.
Financial and Budget Analysis
Analysis provided by City Budget Office
No immediate fiscal impact if the work can be absorbed within existing staff workplans in the Community and Economic Development Service Area, specifically the Bureau of Planning and Sustainability and Portland Permitting and Development. Fiscal impacts of any changes to current City processes arising from the report are currently unknown as the recommendations have yet to be developed.
Document History
Document number: 2025-446
President's referral: Climate, Resilience, and Land Use Committee