ARTICLE
In a major move to address Portland’s housing crisis, Mayor Wilson and Governor Tina Kotek have announced a new city initiative that will waive System Development Charges (SDCs) for the next three years or the next 5,000 housing units built—whichever comes first. They were joined at the announcement by Portland City Councilors Jamie Dunphy and Eric Zimmerman. According to the Oregon System Development Charges Study, SDCs in Oregon average around $15,000 per unit, and can reach up to $50,000, often making up 3–6% of total development costs. These charges frequently become the tipping point for whether a project pencils or not. The City of Portland currently has over 6,000 units in the development pipeline that are stalled, with many projects no longer financially feasible. This SDC moratorium could be the incentive needed to unlock those units and jumpstart housing production in the city. HBA applauds the announcement and will remain actively engaged with our coalition partners as the details of the proposal are finalized. We will keep members informed as the process moves forward. HBA also plans to support the measure when it comes before the City Council, tentatively expected in June.
In a major move to address Portland’s housing crisis, Mayor Wilson and Governor Tina Kotek have announced a new city initiative that will waive System Development Charges (SDCs) for the next three years or the next 5,000 housing units built—whichever comes first.
They were joined at the announcement by Portland City Councilors Jamie Dunphy and Eric Zimmerman. According to the Oregon System Development Charges Study, SDCs in Oregon average around $15,000 per unit, and can reach up to $50,000, often making up 3–6% of total development costs. These charges frequently become the tipping point for whether a project pencils or not.
The City of Portland currently has over 6,000 units in the development pipeline that are stalled, with many projects no longer financially feasible. This SDC moratorium could be the incentive needed to unlock those units and jumpstart housing production in the city.
HBA applauds the announcement and will remain actively engaged with our coalition partners as the details of the proposal are finalized. We will keep members informed as the process moves forward. HBA also plans to support the measure when it comes before the City Council, tentatively expected in June.