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The push by the city of Portland to enact an inclusionary zoning ordinance appears to be barreling ahead even as the panel of experts convened by Commissioner Dan Saltzman questions some of the underpinnings of the plan.

At a meeting on Tuesday, the panel of developers, affordable housing advocates and others debated the details of land cost assumptions, the realities of building affordable housing in the Central City versus outlying areas of Portland and whether developers will simply pay fees rather than actually build affordable rental units.

Consultants hired by the Portland Housing Bureau said inclusionary zoning would be most feasible in two scenarios: 20 percent of a building’s units restricted to people earning 80 percent of median family income, or 10 percent or a building’s units restricted to people earning 60 percent of median family income.

鈥淚t certainly does seem feasible to us to put together a program that does include units and incentives and still have development in the city of Portland,鈥� said Matthew Tschabold, a consultant with David Paul Rosen and Associates.

Eric Cress, principal at Urban Development + Partners, said it may be easier to support projects that include affordable units at 80 percent of median family income.

鈥淔orget what developers think 鈥� it’s investors running the show,鈥� he said. 鈥淢ost investors think mixing 60 percent in is more risky than mixing 80 percent.鈥�

Under the state law passed in March, cities cannot require deeper affordability than 20 percent of units at 80 percent of median family income. But Tschabold said the consultants are working on crafting incentives for deeper affordability that developers could opt for voluntarily.

Developers could also pay a yet-to-be-determined fee in lieu of including affordable units in their developments.

City officials are moving rapidly toward enacting the inclusionary zoning policy. Developers have warned that if the city doesn’t provide adequate incentives, projects will grind to a halt.

Saltzman is expected to release his recommendations for the policy in early September, and then the Bureau of Planning and Sustainability is set to issue a proposed draft of the zoning code on Sept. 19.

After hearings before the Planning and Sustainability Commission, the City Council is expected to consider the recommendations in December.

At Tuesday’s meeting, some panelists wondered aloud how much influence the so-called 鈥減anel of experts鈥� can have on the policy.

Panelist Greg Goodman, whose Downtown Development Group is among Portland’s most prominent property owners and developers, asked directly if the recommendations would be put up for a vote by the panel.

Shannon Callahan, policy director for Saltzman, said the group was not formed to vote on the zoning code.

鈥淚 don’t know that we’re expecting this group to endorse it,鈥� she said. 鈥淲e want your advice and expertise.鈥�

Lisa Bates, a Portland State University associate professor of urban studies and planning, said she understands that the panel’s role is advisory.

鈥淚’m comfortable not voting,鈥� she said.

Vivian Satterfield, deputy director at OPAL Environmental Justice Oregon, a Portland-based civil rights advocacy group, asked when the panel would consider racial and social integration, along with the city’s track record in delivering affordable housing. Tschabold replied that the September and October meetings would be appropriate forums.

The panel’s next meeting is scheduled for Sept. 13.

Portland’s inclusionary zoning efforts drawing attention

While Portland charges ahead toward enacting an inclusionary zoning policy, other Oregon cities are watching 鈥� and waiting.

The state law passed by the Legislature in March that allowed Portland to create a zoning code requiring multifamily developers to build affordable units also permits other municipalities to do the same.

Yet Portland is far ahead of other cities in considering an inclusionary zoning regime. A spokesman for the League of Oregon Cities said no other city has moved toward enacting inclusionary zoning requirements.

Planners for other cities are watching to learn from Portland’s experience.

鈥淎t the staff level, there’s quite a few conversations about what the legislation means and what Portland’s doing,鈥� said Robin Hostick, planning director for the city of Eugene.

Planning staffers have not received direction from the Eugene City Council to begin an inclusionary zoning process, he said.

Eugene has its own affordable housing challenges, paired with lower wages than Portland workers earn on average, Hostick said.

鈥淭he housing affordability issue is huge in Eugene, just like it is in Portland,鈥� he said.

Portland officials were better prepared to go forward, Hostick said.

鈥淭hat legislation is really hot off the press,鈥� he said. 鈥淭hey were ready to go from basically day one.鈥�

Eugene has a program similar to Portland’s MULTE (Multiple-Unit Limited Tax Exemption) program that awards developers property tax breaks in exchange for affordable units. In Eugene the program is called MUPTE (Multi-Unit Property Tax Exemption).

In Beaverton, city officials published a draft Housing Action Program in June. The city has not yet moved forward on inclusionary zoning.

Beaverton officials project that by 2035 the city will need 7,045 additional rental units priced at $620 or less per month 鈥� affordable to renters spending 30 percent or less of their income on housing.