Inka Bajandas//September 12, 2014//

When Portland architect Raphael Goodblatt helped bring into city compliance a project that increased the number of units in an existing apartment complex, the idea struck a chord with him.
Goodblatt, a principal with Ah Ha! Architecture, believes Portland-based Stark Firs Management owner Moe Farhoud, has found a great way to provide more affordable housing in Portland. This is one reason why he argues the city of Portland should incentivize apartment conversion projects like Farhoud’s that create more housing by reducing or waiving system development charges.
鈥淚 just think he hit on the perfect solution from affordability, sustainability and to create jobs,鈥 Goodblatt said.
Farhoud hired Goodblatt, who previously worked for the city as a life safety plans examiner, after city building inspectors figured out the second chance landlord converted the Alder Royal Apartments without permits. The project, which made the Southeast Portland complex profitable, took 40 two-bedroom, two-bath apartments and converted them into 75 one-bedroom and studio units.
Farhoud said he converted the Alder Royal Apartments despite city building officials telling him multiple times that it couldn’t be done without compromising fire safety. He disagreed.
鈥淚 said, 鈥楾his is doable because we can maintain the life safety.’ 鈥
As Goodblatt helped Farhoud navigate the process of bringing the project up to code and paying the appropriate fees, they noticed that each city department made no distinction in SDCs for renovating an existing building to add more units. Farhoud, whose company owns12 apartment buildings in outer Southeast Portland, said he was charged as if he was constructing a complex from the ground up.
鈥淲e’ve tried to repeat this project in other buildings,鈥 he said. 鈥淭he city of Portland treats us like a new project.鈥
Goodblatt contends that the city should offer reduced SDCs for conversion projects like Farhoud’s because they often require simple adjustments to existing buildings. City officials forcing Farhoud to spend $80,000 to widen sidewalks in front of Alder Royal was completely unnecessary, he said.
鈥淭he goal is scalable SDCs,鈥 Goodblatt said. 鈥淧eople should get credit for what they have.鈥
He has written a report proposing revised SDC policies for apartment conversions and reached out to city officials with the proposal.
Portland Mayor Charlie Hales‘ spokesman Dana Haynes said in an email that the mayor’s office could not comment on the issue until after staffers can discuss the proposal with Goodblatt later this month.
If the city were to reduce or waive SDCs for apartment conversions, the number of projects would increase, Goodblatt said. The result would be similar to how accessory dwelling unit construction exploded in Portland after the city waived SDCs fees for the backyard cottages, he said.
鈥淚f you want to be a sustainable city, then remodel existing buildings,鈥 he said. 鈥淚f we do scalable SDCs, it incentivizes developers to create affordable units all over town.鈥
Farhoud said he hopes to encounter fewer barriers from the city when he increases the number units in other existing apartment buildings.
鈥淭here’s a lot of bureaucracy here,鈥 he said. 鈥淚’m trying to do business with the city of Portland. I think they work against you.鈥