Portland finance committee backs three-year temporary waiver of system development charges to spur housing

The Portland City Council Finance Committee voted 5-0 on June 16 to send an amended ordinance to full council that would temporarily exempt new residential units from system development charges for projects that meet eligibility rules and timelines set in the measure.

City staff described the proposal as a three-year, citywide SDC exemption intended to jump-start housing production by improving project feasibility and sending a market signal to developers and lenders.

City staff framed the measure as a targeted intervention to accelerate projects already in the pipeline and to attract new investment. "We're waiving SDCs for new housing for 3 years to help create 5,000 units," Kristina Gahn, a bureau staff member, said during the presentation. Donnie Olivera, DCA Olivera for the record, told committee members the proposal is “not designed to solve for every challenge” but aims to activate Portland’s stalled housing pipeline.

The ordinance would amend Title 17 of the Portland City Code to exempt transportation, parks, water, sewer and stormwater SDCs for eligible newly constructed dwelling units and congregate living facilities. Eligible projects include detached single-family, middle housing, apartments and many conversions (for example, office-to-housing), but exclude transient lodging and medical/hospital uses. Mixed-use buildings would generally qualify only on the residential portion; the legislation contains a limited exception for stormwater because impervious area is difficult to split.

Under the final, amended language the committee…