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Affordable housing developers have a new, streamlined design review process as the result of a pilot project approved by the Portland City Council on Wednesday.

The proposal from Commissioner Dan Saltzman creates an alternative to Type III design review for projects subsidized by the Portland Housing Bureau. Instead, developers may opt to go through a new 鈥淭ype IIx鈥� design review process that does not require a public hearing.

The City Council’s move effectively creates a two-track design review process 鈥� a longer, Type III track for market-rate housing and an abbreviated Type IIx review for affordable housing.

The new process is designed to accelerate projects such as a 12-story one proposed by Innovative Housing Inc. at Northwest 14th Avenue and Raleigh Street in the Pearl District. That project would have 93 units, including 44 for tenants with 鈥渧ery low income鈥� 鈥� up to 30 percent of the median family income, said Kurt Creager, director of the Portland Housing Bureau.

Another project that could soon benefit is RiverPlace Parcel 3 from Bridge Housing and Williams & Dame Development. Plans for that project call for 203 affordable units and 162 market-rate units along with 30,000 square feet of ground-floor retail space.

鈥淏oth (projects) have an extreme amount of public value,鈥� Creager said.

City commissioners unanimously approved the new design review process after airing some sharp questions.

The changes were welcomed by affordable housing developers. A faster timeline will aid development of affordable units, said Julie Garver, IHI’s housing development director.

鈥淭hat will definitely be really helpful for affordable projects,鈥� she said.

IHI may choose to go through the Type IIx process, Garver added.

鈥淚 think there’s a good chance; we still have to discuss it with the Housing Bureau,鈥� she said.

The changes should accelerate the review process and reduce costs, REACH Community Development CEO Dan Valliere said. The nonprofit company last year in partnership with the Housing Bureau developed Gilman Court, which has 60 affordable units in the Gateway District. REACH also is redeveloping the Bronaugh Apartments, a downtown historic building at Southwest 14th Avenue and Morrison Street.

鈥淭his action won’t lower the standard of quality in any affordable housing project, but it will allow it to go faster, which is a great thing,鈥� Valliere said.

A quicker, cheaper process may even prompt developers to add more affordable units, he said.

Any help is welcome for affordable housing developers, who typically run tight economic margins with each project.

Commissioners at Wednesday’s meeting portrayed the design review change as a short-term measure to address the city’s declared affordable housing emergency, and they pledged to revisit the program in October, when they will decide whether to extend it.

鈥淟et’s give it a try,鈥� Mayor Charlie Hales said.

Instead of a public hearing before the Design Commission, most proposals would be heard by Bureau of Development Services staff. Only if an appeal is lodged would the projects go before the Design Commission or the Historic Landmarks Commission.

Applicants will still have the option of choosing a more thorough Type III design review if they prefer.

At least 20 percent of units must be affordable to use the Type IIx process, and only projects subsidized by the Housing Bureau are eligible. Saltzman agreed to change the minimum threshold of affordable units from five to 20 percent, after being nudged by Fish and Tad Savinar, vice chairman of the Design Commission.

Critics said the resolution limits public participation and includes few safeguards to ensure developers will follow through with the affordable units.

鈥淭his will do nothing to expedite the process in a meaningful way, but it could leave the city with incompatible uses or mangled historic structures,鈥� said Peggy Moretti, executive director of Restore Oregon, a historic preservation group.

Moretti warned, 鈥淲hat is approved during our housing emergency will outlive all of us.鈥�

John Czarnecki, principal of New Traditional Architecture, said design review should be thought of as an integral part of development costs, rather than as an additional expense. The new process risks 鈥渄owngrading the quality of our neighborhoods,鈥� he said.

鈥淲e’re backing off of the standards that we have established,鈥� he said.

Rebecca Esau, principal planner with the Bureau of Development Services, attempted to allay the concerns.

鈥淚n no way are we lowering the bar of design and design quality,鈥� she said.

Commissioner Amanda Fritz, who voted for Saltzman’s proposal, questioned what prevents developers from winning design approval, and then forfeiting public funds to build luxury condos.

鈥淲hat’s to stop a developer from doing a bait and switch?鈥� she asked.

Creager responded that the city could use property liens or claw-back provisions to ensure developers follow through with affordable units.

鈥淲e’ll be mindful of that risk,鈥� he told Fritz.

Commissioner Nick Fish, even as he voted for the resolution, expressed concerns about limiting public hearings for projects. He said important design modifications have come as a result of public discussions.

Residents pay attention to development, especially in key locations, Fish said.

鈥淧ortland really cares about the look and feel of their city,鈥� he said.

Creager said the Housing Bureau aims to reduce the additional costs that are imposed during design review. He cited as an example an affordable housing project that was asked to switch to 18-gauge steel cladding, thicker than the proposed 22-gauge steel. 鈥淭hat’s a $395,000 difference in the project鈥� that made no visible improvement, he said.

City officials said Type IIx design review would save developers thousands of dollars, with fees ranging from $5,000 to $9,000, down from $9,000 to $31,000 for a Type III design review.

Fish asked for reassurance that there would be no loosening of quality standards under the new process.

鈥淭hat’s something we can commit to because that’s what we do,鈥� said Paul Scarlett, director of the Bureau of Development Services.

Paul Grove of the Home Builders Association of Metropolitan Portland also spoke in support of a cheaper, faster review process.

鈥淭hese costs, although they may not seem like much to some, are very impactful to the viability of a project,鈥� he said.

The City Council in October declared a housing emergency. Portland home prices increased the most in the nation in 2015, and rents have risen sharply as well. The median sale price jumped 11.4 percent to $278,000, according to the S&P/Case-Shiller U.S. National Home Price Index and CoreLogic, a real-estate data firm.