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In response to pressure brought by developers, Commissioner Dan Saltzman has modified his inclusionary zoning recommendations for Portland so that fewer affordable units would be required for projects in the program’s first two years.

Saltzman’s program now would require developers of buildings in mixed-use zones with 20 or more units to include 15 percent of the units affordable at 80 percent of median family income, or 8 percent of units affordable at 60 percent of median family income.

Those targets were reduced from 20 percent and 10 percent of total units, respectively. However, the reduced targets apply for only two years. Beginning in 2019, developers must meet the 20 percent or 10 percent affordability targets.

The move is the latest by Saltzman to fine-tune inclusionary zoning ahead of adoption, which is anticipated by the City Council in January. A new local chapter of the developers’ group LOCUS has advocated for a lighter hand in mandates for affordable units.

Saltzman released his revised recommendations on Tuesday as the City Council held a work session on the inclusionary zoning policy. A public hearing is set for Dec. 8.

The targets won’t apply to projects in the Central City, where a separate set of requirements and incentives apply.

Saltzman urged his fellow commissioners to move forward, saying there will be opportunities to tinker with inclusionary zoning policy in the years ahead.

鈥淭his is an art, not a science,鈥� he said. 鈥淭he best way to figure out whether we’ve got it calibrated right is to go ahead and do it.鈥�

But others, including consultant David Rosen, argue that a two-year ramp-up is at best unnecessary.

鈥淭he issue of ramp-up is a political issue, not an economic issue,鈥� he said, noting that land prices tend to adjust quickly in light of new regulations.

Rosen added that a ramp-up period could add to market confusion.

鈥淭o continually change the rules would inject a lot of risk and uncertainty into the marketplace,鈥� he said.

Developers have already reacted to looming inclusionary zoning regulations by rushing to submit permit applications. The city now has approximately 14,000 multifamily units in the development pipeline 鈥� about triple the normal amount, Housing Bureau Director Kurt Creager said.

Developers are even submitting applications for projects they don’t plan to build for years.

鈥淭hey have themselves created their own ramp-up period,鈥� Creager said.

Developers may opt to pay a fee in lieu of building affordable units, but city officials and housing advocates said they want to structure the fee to encourage construction of affordable units on site.

Creager said allowing developers to pay a fee in lieu of building affordable units could delay construction of units by two to three years.

鈥淭here’s a value to time, and that’s lost if we don’t build units on site,鈥� said Margaret Tallmadge, a member of the Planning and Sustainability Commission.

Saltzman is proposing a menu of incentives to entice developers. These include property tax and construction excise tax exemptions, fee waivers and density bonuses. Many of the incentives were required by the state law that lifted the ban on inclusionary zoning policies.

Inclusionary zoning is part of a raft of measures, including the $258 million affordable housing bond approved by voters in November, meant to address Portland’s self-declared housing emergency. Portland officials lobbied the Oregon Legislature to lift a state prohibition on requiring affordable housing; the Legislature obliged in March.

At that point, the city had already hired David Paul Rosen & Associates to analyze inclusionary zoning policies nationwide and to make recommendations.

Saltzman in April convened a panel of 13 experts consisting of developers, housing advocates and others. The inclusionary zoning policy met a mixed reception from the Planning and Sustainability Commission, which recommended adoption contingent on a list of conditions.