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In response to Portland鈥檚 housing crisis, a proposal is on the table to temporarily suspend and permanently modify zoning codes to facilitate housing production, including changes to the development review process.

On Sept. 25, Bureau of Planning and Sustainability staffers briefed the agency鈥檚 Planning Commission on the city鈥檚 housing need and their proposed housing production strategy (outlined in the Housing Regulatory Relief Project) that will eventually go before the Portland City Council.

The project identified a total of 16 issues that warranted address. They involved development and design standards, Central City focused initiatives, and the process itself. These were taken from a Bureau of Development Services (BDS) survey in which parties were asked to identify the top obstructions or issues impeding housing production. It received 610 responses.

An extensive proposal

For projects with residential use, all temporary suspension of policies and zoning codes would last five years. The biggest changes would be reducing bicycle parking requirements, suspending the need for ground-floor active uses in areas outside of the central city, removing eco-roof and bird-safe glazing requirements, and shortening the development review process. Also, land review expiration dates would be permanently extended from three to five years for all approved projects.

鈥淲ith the economy and some of the issues with financing right now, there was a concern of getting permits out and issued on time,鈥� BPS planner Phil Nameny said. 鈥淪o, hopefully this would provide a little relief to that.鈥�

Multiple project teams 鈥� including those pursuing the Hyatt Place tower and the Clay + Tiffany Apartments 鈥� have opted to let their land use review entitlements expire recently due to financing challenges and market constraints.

Zoning code changes

Under the new rules, bicycle parking requirements would be temporarily reduced for projects with residential use from 1.5 per unit to 1 for developments in and near downtown and from 1.1 per unit to 0.7 for those farther out. Also, the requirement for large 鈥榗argo鈥� bicycle spaces would be suspended. Nameny said that rule had 鈥渃aught鈥� developers off-guard and in turn affected sizes of bicycle rooms, causing delays.

Bicycle parking requirements were in the top five issues deemed to slow housing production from the BDS survey. The proposal stated that the matter often generated 鈥渃heck sheets鈥� that would add to the time it takes for building permits to be issued.

Similarly, ground-floor active use, height standards and higher window coverage requirements were among the zoning codes that survey respondents said created potential barriers to development and increased costs, especially for affordable housing projects.

The requirements鈥� main purpose was to ensure 鈥渕ixed-use, walkable neighborhoods,鈥� according to the proposal. In some instances, however, the active use component was not a programmed part of the development, but the ground floor was still required to have 12-foot-high ground floors that are 25 feet deep for commercial uses. This increased development costs for projects in locations where commercial activity is limited. The rule would remain for developments within the central city, where Nameny said BPS felt having commercial uses on the ground floor was still important.

The proposal would also temporarily waive nonconforming upgrade requirements. Typically, if an alteration or addition to a site exceeds $347,000, owners would need to spend up to 10 percent of their project cost to bring a portion of the building up to current zoning standards. This had surprised owners and caused a time delay and added expense to provide additional plans that delayed housing retrofits, according to the proposal.

Development review alterations

To quicken the review process for projects to be approved, BPS proposes temporarily reducing the type of design review projects need by one level. Buildings that would normally be required to go through a Type III design review consisting of a pre-application conference and Portland Design Commission approval, could opt to take the Type II design review route consisting of a design advice meeting the Portland Design Commission and BDS staff approval.

Projects that currently trigger a Type II design review, including affordable housing developments, could opt for a Type 1x design review, which does not have a local appeal option. All appeals would need to go before the Land Use Board of Appeals (LUBA).

While simplifying the development review process was not a choice included within the survey sent out by BDS, it was mentioned several times in the comment section, according to the proposal.

Along with the scaled-back review process, all neighborhood contact requirements for developments prior to land use review and submission for a permit would be suspended. Regulations usually required developers to notify nearby residents and listed organizations of development by placing notice boards with project information on sites and holding neighborhood meetings. This has slowed development and added costs, according to survey respondents.

The proposal would move to permanently change the neighborhood contact process to include only two forms of contact. Small to medium projects would provide on-site posting (Neighborhood Contact I), while larger projects would include a meeting hosted by the developer (Neighborhood Contact II).

Central City rule suspensions

To reduce development requirements that may increase costs or delays, eco-roof and bird-safe glazing requirements would be temporarily waived in the Central City.

Three years ago, the Portland City Council adopted plans that required eco-roofs atop buildings of 20,000 square feet or more in commercial zones within the Central City. This was a sustainability measure to aid stormwater management and reduce the urban heat island effect.

A common criticism of the eco-roof requirement is that the element competes with solar panels for rooftop space.

Commissioners raised concerns with the proposed suspensions of these standards. Commissioner Erica Thompson said that she鈥檚 鈥渧ery, very hesitant鈥� to remove the eco-roof requirement, and Commissioner Steph Routh echoed that sentiment.

However, with Portland in need of around 120,000 new housing units over the next two decades, commissioners recognized that a housing crisis exists.

鈥淚f we say that we are in a housing emergency, it鈥檚 an emergency where uncomfortable things need to be on the table,鈥� Routh said. 鈥淭hese (proposed changes) are really uncomfortable for me.鈥�

Next steps

A public hearing with the Planning Commission is scheduled for Oct. 24. Commissioners will hear testimony on the proposal prior to submitting their recommendation to City Council for consideration and further public review.