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Option 3: Build Off-Site - New Construction | Inclusionary Housing

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 Buidling).

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.


Incentives

  • 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 two years of Sending Building’s receipt of Certificate of Occupancy (or Sending Building may be subject to financial penalty).


*Combined Opportunity Map Scores can be verified on PortlandMaps.com. Search property address and select ‘zoning and districts’ under ‘permits and zoning’.