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Portland permitting bureau warns reserves strained under fee‑based model, outlines tech and process fixes
Summary
Portland Permitting and Development told the Homelessness and Housing Committee it is drawing down reserves as construction valuations fall, that staffing levels are the lowest in a decade, and that technology, collaborative plan review and targeted hires are planned to reduce permit timelines.
Portland Permitting and Development (PPD) told the Homelessness and Housing Committee that its largely fee‑dependent funding model has left the bureau drawing reserves and operating with far fewer staff than a decade ago. Donnie Olivera, deputy city administrator for community and economic development, and the bureau’s interim director said the bureau began the fiscal year drawing roughly $3.2 million from reserves after roughly $25 million in revenues versus $28 million in expenditures during the first four months.
The interim director said PPD started the year with just over $19 million in reserves and currently has just under $16 million, and that at the current early‑year run rate the project valuation for fiscal year 2025–26 is anticipated to be just under $1,000,000,000 — the lowest in more than a decade. He told the committee that roughly 94% of PPD’s ongoing funding comes from fees for services and review, with only small shares from the general fund and PSEF, leaving the bureau vulnerable to construction market cycles.
PPD described staffing pressures from layoffs, attrition and recent program transfers. Staff said the bureau peaked at about 457 budgeted FTE in fiscal year 2019–20 and currently shows roughly 341 budgeted FTE; within the transferred programs there are 93 FTE and the bureau has seen about 25 voluntary separations so far in 2025. The presenters said they have used a mix of targeted hires and attrition management and, where necessary, layoffs, to balance service delivery with the financial position.
To reduce permit cycles and applicant variance, PPD said it is standardizing back‑office tools (ProjectDocs), expanding a collaborative plan‑review approach so applicants and reviewers are in the same conversation, and publishing more detailed permitting dashboards. Staff emphasized the goal of a 15 business‑day first review for many residential scopes and a 10‑day goal for typical tenant improvement (commercial alteration) reviews, which they said the bureau is meeting on average.
On incentives, staff noted the temporary SDC exemption (effective Aug. 15, 2025) has been widely used by single‑family builders and smaller projects up to about 19 units; larger projects have expressed interest but financing cycles mean projects may take months to materialize. PPD will continue work on seismic requirement adjustments, evaluation of third‑party review and self‑certification options, and design review changes as part of future cap rounds.
Committee members asked for more granular follow‑up on hiring decisions, the practical effects of program transfers from other bureaus, and whether additional general fund support or structural funding changes should be considered to stabilize customer service. The committee plans further hearings and a January listening session for permit applicants to share experiences.
