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The city of Portland is in the process of finalizing an update of its Comprehensive Plan and zoning code, which will govern development over the next 20 years. The new Comprehensive Plan, adopted in June, is based on a new urban design framework that directs future growth to dense urban centers and corridors, rather than large-lot commercial and single-family neighborhoods that have characterized outer Portland.

It is important that Portland property owners develop at least a rudimentary understanding of the proposed land use regulations, which may substantially affect their properties.

Portland鈥檚 code revisions touch virtually all of its land uses, including multifamily, commercial, industrial and institutional as well as Central City development. These changes will significantly alter the regulations by which land is developed and used throughout the city, and on balance, place more restrictions on most existing development types.

The plan will be the governing document for land use decisions in the city and be implemented by a revised Portland zoning code, set forth in Title 33 of the city code. Although all land use decisions must be in conformance with the plan, the city code is where the rubber meets the road for most developers, real estate professionals and citizens.

The Comprehensive Plan and code must be approved (鈥渁cknowledged鈥�) by the Oregon Land Conservation and Development Commission, and its decision is subject to review in the Oregon appellate courts. Barring appeals, the new code will become effective in late 2017 or early 2018. Inclusionary housing will come into effect on Feb. 1, 2017.

Key dates include:

• February 2017: Inclusionary zoning regulations become effective, affecting multifamily properties with more than 20 units
• Late 2017/early 2018: New zoning code becomes effective
• January 2018: Last chance to get building or land use permits approved under current rules 鈥� Schwabe recommends starting due diligence work now because the city could be inundated with applications prior to the effective date

Risks include:

The primary risk caused by the new zoning code is the specter of nonconforming status. Nonconformity increases the long-term risks and costs associated with expanding or selling property. It can also affect property owners鈥� ability to replace a like property in case of fire or casualty.

Common examples of nonconformity include parking and circulation layout, ground-floor windows, and active ground-floor uses.

Property owners should:

Use the city鈥檚 map app to see how area properties are affected. Simply visit the site, select 鈥淶oning Map Changes and Amendments鈥� and enter the property address to determine the existing and proposed zoning.
Begin due diligence work now on properties you鈥檇 like to develop, remodel or expand under current zoning: The new zoning code will become effective in late 2017 or early 2018. If you are planning or considering property redevelopment, a remodel or expansion, it is still possible under the current zoning regulations by submitting a land use application (if required) or building permit application prior to the effective date. It is advisable to begin design and due diligence work on such projects as soon as possible, as there will likely be a large volume of projects submitted prior to the January 2018 effective date.

Garrett Stephenson is an attorney for Schwabe, Williamson & Wyatt in its real estate and land use practice group. Contact him at 503-796-2893 or [email protected].