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Residential Infill ProjectPortland City Council
December 11, 2019
Addressing Portland’s housing crisis 2
Residential Infill ProjectSingle-dwelling Zones
Better Housing by DesignMulti-dwelling Zones
Mixed-Use Zones ProjectCommercial/Mixed Use Zones
Rewriting the code 3
Planning and Sustainability Commission Recommendation
Guest speakers
State Legislation• HB2001• SB534
Recommendations• Housing Types and Affordable Rents• Displacement Risk Analysis
Agenda 4
Equitable Benefits and Cost• Lower displacement• Increased home ownership
More Housing Options• Increased range of types• More locations• Internal conversions• Age-friendly options
Less Expensive Options• Smaller units• More supply• Lower SDCs/costs
Multiple Goals 5
Guest Speakers
Concept Phase (2015-2016)26-member Stakeholder Advisory Committee9500 questionnaire responses1500 comments to staff280 testifiers at City Council
Legislative Phase (2017-2020)3500 comments on the Discussion Draft135,000 notices mailed to property owners1200 pieces of testimony and 1000 testifiers to the PSC
Public Involvement 7
Public Awareness 8
Residential Infill Project Outcomes 9
• Increases access to more types of housing in all Portland neighborhoods
• Allows more units at lower prices on each lot
• Applies new limits on building scale and height
• Reduces displacement overall
The needs of households are changing 10
• Growing by 100,000 households (now to 2035)
• Increasing income gap
• Smaller households – 68% have 1 or 2 people
• Aging population – double by 2035
1920
2010
1920 1980 2010
Houses have gotten larger over time 11
The cost of housing is becoming out of reach 12
Zoning limits housing choice and supply 13
Mixed Use 7%
Multi-Dwelling 8%
Single-Dwelling 43%
Use of Land
Turning the dials achieves different results 14
# of units Size of building Location allowed1-2 6,750 sf EverywhereToday:
State legislation 15
HB2001 – Middle Housing Bill 16
HB2001: Allow duplexes on all lots where houses are allowed.
Included in Residential Infill Project Allow duplexes on all lots in R2.5, R5, R7 except in ‘z’ overlay
Future Project - effective June 30, 2022• Allow duplexes in the ‘z’ overlay in R2.5, R5 and R7 zones
• Allow duplexes on all lots in R10 & R20 zones
• Develop clear and objective cottage cluster code
HB2001 – Middle Housing Bill 17
HB2001: Allow triplexes and fourplexes “in areas zoned for residential use”
Included in Residential Infill Project Allow triplexes and fourplexes on all lots in R2.5, R5, R7 except
lots: In the ‘z’ overlay Below minimum lot size On unmaintained street
Included in Residential Infill Project Rezone half of narrow platted lots from R5 to R2.5 Retain R5 zoning on half of narrow platted lots, but allow
attached houses.
Amendment to Residential Infill Project – Effective March 1, 2020• Allow development on platted lots regardless of size or zone only
when they are not constrained by natural resources, slopes, floodplains, or infrastructure.
SB534 – Platted Lots Bill 18
Residential Infill ProjectRecommendations
1. Allow more housing types 20
House + ADU
House + 2 ADUs
Duplex
Duplex + ADU Fourplex
HB2001 – all lots
Triplex
HB2001 – some places
2. Allow in Residential Areas 21
Residential Infill Project| 21
Additional housing types allowed
Additional housing types not allowed (‘z’ overlay)
Additional housing types not allowed (RF/R20/R10)
a. Use floor-to-area ratio (FAR)b. Vary by number of unitsc. Bonus FAR for affordability or preserving house
3. Reduce the scale of development 22
• House +2 ADUs• Duplex +1 ADU• Triplex
• House • House +ADU• Duplex
• Fourplex
2,500 sf 3,000 sf 3,500 sf
4,000 sf
Bonu
s
3,500 sf
3. Reduce the scale of houses 23
4. Rezone historically narrow lots 24
Annual Income and Housing Costs
HUD Area Median Income (2019) 26
Household Size
30%Extremely
Low Income
60%Very LowIncome
80%Low Income
100%MedianIncome
120%AMI
140%AMI
160%AMI
1 $18,480 $36,960 $40,040 $61,530 $73,836 $86,142 $98,448
2 $21,120 $42,240 $56,320 $70,320 $84,384 $98,448 $112,512
3 $23,760 $47,520 $63,360 $79,110 $94,932 $110,754 $126,576
4 $26,370 $52,740 $70,320 $87,900 $105,480 $123,060 $140,640
Monthly Affordable Rent 27Number of bedrooms
30%Extremely
Low Income
60%Very LowIncome
80%Low
Income
100%MedianIncome
120%AMI
140%AMI
160%AMI
Studio $462 $924 $1,232 $1,538 $1,845 $2,153 $2,460
1BD $495 $990 $1,320 $1,648 $1,977 $2,307 $2,636
2BD $594 $1,188 $1,584 $1,977 $2,373 $2,768 $3,163
3BD $685 $1,371 $1,829 $2,285 $2,742 $3,200 $3,656
Monthly Affordable Rent 28Household Size
30%Extremely
Low Income
60%Very LowIncome
80%Low
Income
100%MedianIncome
120%Moderate
Income
140%AMI
160%AMI
Studio $462 $924 $1,232 $1,538 $1,845 $2,153 $2,460
1BD $495 $990 $1,320ADU $1,648 $1,977 $2,307 $2,636
2BD $594 $1,188 $1,584 $1,977fourplex $2,373 $2,768 $3,163
3BD $685 $1,371 $1,829 $2,285 $2,742triplex
$3,200duplex $3,656
170% AMIHouse $5,400
Income and housing costs 29
Portlanders by Area Median Income80% AMI 100% AMI 120% AMI 140% AMI
$130K(2 x $65K)
Example:Scientist &Accountant+2 children
Rent$1,400/mo
ADU
Rent$1,975/mo
fourplex
Rent$2,750/mo
triplex
Rent$3,250/mo
duplex
$110K(2 x $55K)
Example:Carpenter &
Social worker+2 children
$79K(2 x $40K)
Example:Admin assistant
& Construction worker+1 child
$56K(2 x $28K)
Example:Manufacturing
fabricator &nurse assistant
Lower priced houses, 3 potential futures… 30
Built 20182BR, 1000 sf units
$380,000
Built 19552BR, 780 sf unit
$430,000
Built 20194BR, 3,200 sf unit
$1,100,000
❶
❷
Lower priced houses, 3 potential futures… 31
2011
$350,0002019
$600,0002005
$284,000
❸
Built 19153BR, 2,300 sf unit
Displacement Risk Analysis
Evaluation of displacement risk 33
1. Which properties are likely to redevelop under new zoning? Where?
2. Who is affected by redevelopment of these sites? In general and in specific locations?
3. Is this impact greater or less than current zoning?
Properties likely to redevelop 34
Comparison:
Current zoning and Residential Infill Project household growth
Vulnerable Areas
Displacement Impacts 35
Benefits & Mitigations:
1. Citywide benefit: • 28% reduction in displacement• Reduces one-for-one demos• Makes it possible to have more,
smaller, less expensive units
2. FAR bonus for affordable housing (0.1 FAR)
Turning the dials achieves different results 36
# of units Size of building Location allowed1-2 6,750 sf EverywhereToday:
1-2 3,000 sf EverywhereProposed:3-4 3,500 sf Many places
More housing types +Smaller size, scaled by number of units +
Allowed everywhere =
More unitsSmaller units
Less-expensive units And less displacement overall
Summary 37
Discussion
Housing Opportunity Initiative Timeline 39
Better Housing by Design December 18 – Council Vote
Residential Infill ProjectHearings: January 15 and 16Work Sessions begin: January 29
Anti-Displacement Action PlanInter-Bureau Work Group: Launched Nov 2019Community Co-led Task Force: Launch late summer 2020