Council debates temporary loosening of income limits on SDC‑exempt homeownership units; amendments fail, ordinance sent to second reading

Council took up a first reading of an ordinance to amend SDC exemption rules for affordable homeownership units, including proposals to temporarily remove income verification tests so unsold units could move off developers' books. Councilor Pertelguini introduced an amendment (Pearl Guinée Koyama Lane 1) that would have phased income limits upward (120% AMI after 60 days, 140% after 120 days, and full removal after 180 days) while directing the city administrator and Portland Housing Bureau to identify down‑payment assistance sources and expand marketing. The amendment's sponsors characterized it as a compromise to preserve homeownership opportunities while helping move existing inventory.

Housing bureau staff told council that roughly 200–400 homes could fall under the policy and cautioned that the bureau's small team would require resources to administer stair‑stepped verification and reporting. "We're estimating around 200 to 400 depending on current status of ones that are pending for sale," Dori Hellyer, manager of development incentives programs, told council during technical questioning.

Council debated tradeoffs at length: some members warned that complicating verification and reporting could burden PHB and risk diverting scarce down‑payment funds from other priorities; others argued the stair‑step would better protect the policy goal of homeownership for average‑income households. The stair‑step amendment was put to a roll call vote and failed. Council later considered and rejected other amendments including a Dunphy 1 amendment that would have opened a three‑bedroom FAR density bonus pathway after a 90‑day unsold period and adjusted penalties; that amendment also failed. After debate, council passed the underlying ordinance to second reading to allow further refinement and staff work on metrics and implementation.