The Portland Housing Bureau recently completed a periodic review of the Inclusionary Housing (IH) program according to a statement released September 26th. The City of Portland currently has a deficit of 22,000 affordable housing units for low- and moderate-income households.

The IH program, which went into effect on February 1, 2017, is designed to supplement publicly financed affordable housing development and help bridge this gap by linking the production of affordable housing to the production of market-rate housing. Under the program, all residential buildings proposing 20 or more units are required to provide a percentage of the new units at rents affordable to households at 80% Median Family Income (MFI), with an emphasis on households earning 60% MFI or less.

An estimated 19,000 residential total units were vested prior to the implementation of the IH program effectively vesting those projects under the existing zoning code. Their review estimates this represents 4-5 years’ worth of multifamily residential development needed to accommodate projected population growth in Portland with projected demographic trends.

Portland’s 2035 Comprehensive Plan Policy 5.25 sets a goal of producing 10,000 new regulated housing units affordable at 0-80% MFI by 2035.

Key highlights of their analysis include:

  • 8,294 units (in buildings with 20+ units) from the pre-IH vested pipeline remain in some stage of permitting
  • 8,578 units (in buildings with 20+ units) have entered permitting, land use review, or pre-application/early assistance since IH went into effect
  • 362 affordable inclusionary housing units (in projects with 2,269 total units) have permitted or are close to permitting
  • Multifamily permitting in 2017 set a historic high at over 6,000 permits
  • Market indicators are signaling a shift in the market cycle based on factors unrelated to the IH Program

For more information and links to story map: