Option 3: Build Off-Site - New Construction

Applicants can elect to build IH Units off-site in another new development (New Construction Receiving Building), on a separate site from the multifamily development that is subject to the IH Program requirements (Sending Building).
On this page

Eligible Scenarios

  1. Provide 20% of the Sending Building’s total number of residential units, affordable at 60% MFI in the New Construction Receiving Building; or

  2. Provide 10% of the Sending Building’s total number of residential units, affordable at 30% MFI in the New Construction Receiving Building.


  • Sending Building retains any FAR/density bonus (varies by zoning code and plan district; see Maximum Base and Bonus Density/FAR table in PCC 33.120);

  • Sending Building will be exempt from parking requirements as detailed in Title 33.266;

  • Receiving Building’s affordable units eligible to receive the Affordable Housing Construction Excise Tax (AHCET) exemption; 

  • Receiving Building’s affordable units eligible to receive SDC exemptions; and

  • Receiving Building’s IH Units may be eligible for 10-year property tax exemption.

Key Requirements

  • Receiving Building remains subject to any additional Inclusionary Housing program requirements. It must meet its own IH requirement before approval to receive other building’s IH obligations;

  • IH Units built in Receiving Building must be reasonably equivalent in size, quality and bedroom count to units in Sending Building;

  • Receiving Building must be identified and approved by PHB prior to building permit issuance for Sending Building;

  • Sending Building must be identified and approved by PHB prior to building permit issuance for Receiving Building;

    • If building permit of the Receiving Building is issued prior to approval of the Sending Building’s application, the Receiving Building will be considered an Existing Receiving Building and the Sending Building would have to utilize Option 4 to send their IH obligation to the same selected building.

  • Receiving Building must be within a one-half mile radius of Sending Building, or in an area of equal or higher Combined Opportunity Map Score*;

  • Affordable units fulfilling the Inclusionary Housing requirements in the Receiving Building cannot be supported by any additional PHB subsidy;

  • PHB staff determines whether proposed New Construction Receiving Building is compatible with program requirements (if determined incompatible, applicant must choose another option);

  • IH Units must be made available as set forth in the Inclusionary Housing Covenant (“IH Covenant”) or Sending Building subject to financial penalty. Receiving Building is also subject to IH Covenant but is only subject to financial penalty for its own IH obligation;

  • General Contractor for New Construction Receiving Building will enter into agreement with third-party technical assistance provider (approved by PHB prior to opening bids for construction). For more information please review the Option 3: DMWESB-SDVBE Requirement section in our FAQ; and

  • New Construction Receiving Building must receive its Certificate of Occupancy within five years of Sending Building’s receipt of Certificate of Occupancy (or Sending Building may be subject to financial penalty).

*Combined Opportunity Map Score can be verified on Portland Maps. Search property address and select "zoning and districts" under "permits and zoning."

FAQ - Option 3: DMWESB-SDVBE Requirement

1. What is DMWESB-SDVBE and who is required to use it? DMWESB-SDVBE stands for Disadvantaged, Minority, Women and Emerging Small Businesses or Service Disabled Veteran-Owned Business Enterprises. By electing Option 3: Build Off-Site: New Construction the general contractor of the Receiving Building will be required to enter into an agreement with a third-party technical assistance provider that is approved by PHB prior to opening up bidding for the Receiving Building.

2. What must the DMWESB-SDVBE Agreement with the technical service provider include? It must include a plan to meet the City’s goal of 20% or higher participation of DMWESB-SDVBE firms in construction contracting. The third-party technical assistance provider must provide a written report summarizing the outcomes of the efforts made to reach the goal, including successes, barriers and any areas of improvement.

3. Who do I need to contract to help connect with Minority, Women and Emerging Small Businesses (MWESBs)? The City has identified at least three organizations who can provide the technical assistance contract, although there are other organizations or individuals who may be qualified:

Metropolitan Contactor Improvement Partnership (MCIP)
Tony Jones | (503) 288-1211 | tony@mcip-pdx.org

National Association of Minority Contractors Oregon (NAMCO)
Nate McCoy | (503) 756-8660 | nate@namc-oregon.org

Donaldson Enterprises
Suzanne Donaldson-Stephens | (360) 280-2321 | suzanne@donaldson-enterprises.com

4. How much should I expect to pay for the DMWESB-SDVBE technical assistance contract? You should expect to pay approximately $5000 to $10,000, depending on the capacity necessary to be provided.

5. What do I need to provide to the City to meet the DMWESB-SDVBE requirement? You need to submit a copy of your signed contract with technical assistance provider prior to building permit issuance and opening up bidding of construction of the Receiving Building. The general contractor will need to report quarterly to the City’s Procurement Compliance Specialist; the provider will provide PHB with a summary report.

6. How can the technical assistance help me and what is required in the contract? The provider will review your DMWESB-SDVBE plan or help you create one if necessary, make recommendations on the timing and bidding process in order to be most effective, help with outreach to potential DMWESB-SDVBE bidders, and report to PHB on successes and any barriers.

For more information on the IH requirement of DMWESB-SDVBE please review section IV.A.3.l in the Inclusionary Housing program Administrative Rules.

Start an Intake Form

Follow the link for forms for Inclusionary Housing, as well as applications for other development incentives. These forms are all available on the Inclusionary Housing homepage.