Chuck Slothower//January 27, 2017//
Developers often complain that the city of Portland takes too long and charges too much to process permits. This time, city officials agree.
Mayor Ted Wheeler and Commissioner Chloe Eudaly are co-sponsoring a resolution that would direct city bureaus to accelerate the permitting process and evaluate ways to cut fee amounts for projects that include affordable units.
The proposed resolution is due to be considered at the City Council’s meeting on Thursday. It would direct bureaus involved with permitting – Development Services, Transportation, Fire, Water, Environmental Services and Parks – to examine existing permitting fees and formulate a plan to reduce or waive some in order to promote affordable housing construction.
Wheeler wants to reduce the cost, time and burden placed on affordable housing developers in Portland, spokesman Michael Cox said.
When asked if the fees and charges would be reduced, Cox answered, “Absolutely.”
The changes would apply only to developments that include affordable or workplace units, according to the city’s definitions.
Tim O’Brien, president of Urban Asset Advisors, said high development fees can pose an obstacle to development. His firm typically budgets about $19,000 per apartment unit in city fees and system development charges. Actual costs are coming in slightly lower, he said.
Charges were about $15,000 per unit when Urban Asset Advisors built the Lower Burnside Lofts, O’Brien said. The 63-unit Southeast Portland building was completed in June 2015.
“We’d love to find a way to reduce permit and SDC costs,” he said.
Meanwhile, inclusionary zoning rules will take effect Wednesday, requiring developers to dedicate 15 percent of apartments as affordable units. Many projects will no longer make financial sense, O’Brien said.
“Right now, we can’t make projects work in an (inclusionary zoning) zone with the cost and the reduction in income,” he said. “We just passed on a deal yesterday that we couldn’t make work – a prime location.”
Cox said the resolution is an attempt to improve coordination among the city bureaus – which he said can be “siloed” in their work.
Each city bureau charges its own fees, and the bureaus typically do not harmonize when they raise fees or impose new costs.
“We need those bureaus to work together,” Cox said.
The measure is a companion to an ordinance that is also co-sponsored by Wheeler and Eudaly; it would require landlords who issue no-cause evictions to pay moving costs. The emergency ordinance would take effect immediately, but it requires a unanimous vote with at least four commissioners present.