In a recent push to address the housing crisis in Portland, Governor Tina Kotek and Mayor Keith Wilson unveiled a plan aiming to fast-track the development of 5,000 new housing units. The pair announced the initiative as a component of the Multifamily Housing Workgroup's efforts, which launched earlier this year. The plan would involve a temporary suspension of System Development Charges (SDCs) for developers until the construction of the housing units is underway or for three years, whichever comes first, as reported by the City of Portland's official news portal.
Expressing urgency over the housing supply crisis, Governor Kotek said, "Portlanders are impatient for more progress on the city’s housing supply crisis. So am I, and so is the Mayor," as noted by the city's official website. She further emphasized the need for creative solutions during budget constraints. Mayor Wilson highlighted the potential impact of waiving these fees, stating, "By temporarily waiving these fees, we can make the numbers work and turn stalled plans into real homes for real people.” There are over 4,000 homes in Portland developers ready to build, but escalating costs frequently hamper project feasibility.
Since taking office, Kotek has kept a solutions-oriented approach towards housing, which has manifested in the establishment of the Housing Accountability and Production Office (HAPO) and a moderate-income revolving loan fund (MIRL) that aids in housing development across various cities and counties. According to a statement released by the City of Portland, by July, HAPO aims to have financed approximately 2,800 affordable housing units with expectations of supporting infrastructure for an additional 25,000 units over the next two years.
Support for the initiative is strong among local stakeholders. Andrew Colas, CEO of Colas Construction, Inc., noted the city's pressing need for affordable housing and commended the leadership for taking actionable steps forward. “The solution is to be pro-housing and accelerate housing production," Colas told the City of Portland. "Thank you, Governor Kotek and Mayor Wilson, for your united leadership in driving real action to build more affordable homes.”
Sarah Zahn from the Oregon Smart Growth Board remarked on the challenges faced in advancing multifamily housing development due to financial constraints. “We are in a crisis when it comes to multifamily housing development in Portland. I see firsthand how challenging it has become to make projects financially feasible," said Zahn, as per the city's official website. She expressed support for the proposed moratorium on SDCs, which can add significant costs of up to $20,000 per unit for developers looking to build. The City of Portland currently has over 6,000 housing unit applications pending, many stifled by financing hurdles that a temporary SDC waiver could help overcome.
System Development Charges are typically employed by local governments to offset costs for urban services necessitated by new development. The proposed SDC waiver aims to provide a crisis-time advantage for developers to build at reduced costs. With average SDC charges in Oregon hovering around $15,000 and spiking as high as $50,000, these fees significantly contribute to the total development cost, limiting the number and scale of housing projects. On March 6, 2025, the Multifamily Housing Development Workgroup convened by Governor Kotek and Mayor Wilson began exploring potential actions to jumpstart housing projects in Portland, with the SDC waiver emerging as one of the early actions from their draft recommendations.
