Tuesday, December 26, 2017
Wednesday, December 20, 2017
- Individual and pass-through income will be taxed in seven brackets, with rates ranging from 10-37%
- A portion of pass-through business income will qualify for a 20% deduction
- REIT dividends are fully eligible for a 20% deduction
- The current-law 27.5-year depreciation period for multifamily buildings is now extended to 30 years
- Businesses may expense $1 million in qualifying property in the year of purchase
- Like-kind exchanges for real properties are preserved
- Assets must be held three years to receive capital gains tax treatment
- Low Income Housing Tax Credits and private activity bonds will be preserved, but will likely be affected by the cut in corporate tax rates
- The estate tax exclusion is doubled from $5.49 million for a single filer and $10.98 million for a married couple
Read more on the NMHC website, or find details on specific provisions in their tax reform chart.
Monday, December 18, 2017
This week: Cities across the country are looking to retain millennials by adding duplexes, triplexes, rowhouses and other medium-density housing options that serve the middle class and keep them from being forced out; a local expert says Portland's MSA needs 30,000 more housing units each year to keep up--something builders are saying is impossible due to development fees and permit timelines. Marketwatch returns January 8th.
Thursday, December 14, 2017
Wednesday, December 13, 2017
Tuesday, December 12, 2017
Monday, December 11, 2017
This week: Oregon Department of Land Conservation and Development approves the City of Portland's 2035 Comprehensive Plan as at least one neighborhood readies its appeal; Portland Housing Bureau director Kurt Creager gets ousted by Mayor Ted Wheeler; the City of Portland buys 240 planned affordable housing units at $285-thousand dollars each.
Thursday, December 7, 2017
Wednesday, December 6, 2017
According to the paper, all these ideas except the last two are opposed by Mayor Ted Wheeler. Read the full story.
Tuesday, December 5, 2017
Owners hope to engage politicians in finding a financial solution that works for them as the clock starts ticking on a 15-year reinforcement deadline they say will result in renter displacement and demolition of thousands of affordable apartments. Read the full story.
Monday, December 4, 2017
This week: City audit of its Prosper Portland department uncovers financial mismanagement; Oregon's population grows at a record level for the second straight year; Congressional Republicans' tax plan could throw a wrench into plans for thousands of affordable housing units in Oregon.
Wednesday, November 29, 2017
The study indicated Oregon's population increased by 64,750 between 2016 and 2017, up from a similar gain of 62,505 between 2015 and 2015; both numbers represent a 1.6% year-over-year increase and the largest growth over a two-year period since the early 1990s.
Since 2012 net migration into Oregon has added 200,000 residents. Portland continued to add more residents than other cities, with 11,705 new residents this past year, an increase of 1.8%.
Tuesday, November 28, 2017
Business Journal: Private Sector Creative Solutions for Homelessness DOA at City of Portland, Multnomah County
The news outlet cites the failures of government in addressing the homeless problem--specifically using the examples of Multnomah County's failure to accept the use of Wapato as a homeless transition center, and the City of Portland's rejection of turning the City's Terminal 1 facility in Northwest Portland into a huge campus for a shelter and services.
The City of Portland says it needs help from the business community, but local developers are discouraged by the bureaucratic responses to their efforts. Some of the many local developers taking action to help with homelessness include Tom Brenneke, Brad Malsin, Barry and Jordan Menashe, Homer Williams, Rob Justus and others. Kevin Cavenaugh of Guerrilla Development will open a multifamily project, reserving 18 units to rent at $600 a month for social workers seeking to make an impact in area homelessness.
If you have a Business Journal subscription, read the full article here.
Monday, November 27, 2017
The Milwaukie City Council is also set to consider a new resolution to extend the housing state of emergency. They originally declared the emergency in April 2016, and then voted on a six month extension in April 2017. That extension is now expired, but according to City Manager Ann Ober the 90-day notice for no-cause evictions remains in effect. The City Council will likely extend the housing emergency until April 2018, unless the vacancy rises above 4% before that date. Read more.
Wednesday, November 22, 2017
Monday, November 20, 2017
This week: A major Portland homebuilder announced he will no longer build in the city due to excessive permitting times; Portland Mayor Ted Wheeler calls on the business community to help with homelessness; businesses complain city bureaucrats won't work with them.
Thursday, November 16, 2017
Local Developer: Portland's Permitting Process is "Slower and More Complicated Than Any Other City We Work In"
Wednesday, November 15, 2017
Tuesday, November 14, 2017
This week: Metro regional government releases a report concluding that Portland lacks adequate affordable housing; Bend considers ways to assist renters and affordable housing advocates speak out about the loss of specialized bonds that could eliminate construction of hundreds of thousands of affordable housing units.
Monday, November 13, 2017
Thursday, November 9, 2017
Wednesday, November 8, 2017
Tuesday, November 7, 2017
- New homes built after September 2020 and commercial buildings built after October 2022 must be equipped for solar panel installation.
- By October 2022, all new homes and commercial buildings must be wired for at least one electric vehicle charger.
- By October 2023, all new homes will be required by the Building Codes Division to be "zero-energy ready."
Monday, November 6, 2017
Check out this episode!
Friday, November 3, 2017
Tuesday, October 31, 2017
This week: Want to live in the nation's best place for business and careers in 2017? If you live in Portland, Forbes says to stay put; more "for rent" signs are cropping up on lawns these days and the Washington Post says affordable housing stock has dropped 60% since 2010.
Thursday, October 26, 2017
Wednesday, October 25, 2017
Tuesday, October 24, 2017
This Week: Portland City Commissioner Chloe Eudaly stops strict enforcement of code restrictions against sleeping in RVs and tiny houses built on private property without a permit; Portland State University reports that wages in Portland are rising, and housing prices are increasing at a slower rate.
Wednesday, October 18, 2017
This week: a Portland Landlord slams Commissioner Eudaly for violating City of Portland social media policy and blocking him from her public Facebook page; the Portland Tribune reports that more than 15% of the cost of new apartment buildings comes from City of Portland fees and development charges.
Monday, October 16, 2017
Bhajaria says it wasn't until he threatened the city attorney with a lawsuit that he was unblocked and allowed to comment. The opinion piece states that while Eudaly and mayor Ted Wheeler claim to embrace diversity, they met privately with "mostly white liberals" who had not registered as lobbyists, and that these groups were "allowed a seat at the table in almost every discussion around housing policy in Portland." Read more.
Bhajaria's previous Op-Ed in opposition to the ordinance requiring payment of relocation fees to renters appeared in the Oregonian on Sunday, February 25, 2017.
Wednesday, October 11, 2017
Tuesday, October 10, 2017
This week: Chloe Eudaly's First Right of Refusal ordinance for renters would likely apply to all types of rental housing; Portland developers propose to build up to 2,500 units on Portland's waterfront, including 500 affordable units, in exchange for increased height limits.
Thursday, October 5, 2017
Tuesday, October 3, 2017
This week: Portland Commissioner Chloe Eudaly wants to give tenants first right of refusal to buy apartment buildings before they hit the market, and Mayor Ted Wheeler to ask for an 18-month extension of Portland's housing emergency, this time requiring agencies to figure out when to end it.
Wednesday, September 27, 2017
Bombshell: Chloe Eudaly to Propose Tenant "First Right of Refusal" to Purchase Apartment Buildings Listed for Sale
- The Housing State of Emergency will be extended by 18 months, until April 4, 2019, unless the City Council chooses to extend or terminate it
- Affordable housing projects will be subject to Type IIX rather than Type III design review
- The Portland Housing Bureau and Joint Office of Homeless Services will decide what criteria must be met to end the Housing State of Emergency within 180 days
Tuesday, September 26, 2017
This week: The Tribune turns a spotlight to the City of Portland's dysfunction; hurricane disasters could result in a construction slowdown due to scarcity of workers and increasing materials costs; and six months in -- the inclusionary zoning requirement's impact on apartment construction applications in the City of Portland.
Monday, September 25, 2017
In an interview with HFO partner Greg Frick, Multifamily NW spokesman John McIsaac relates the bureaucratic difficulties facing developers in the City of Portland. Estimates are that 50,000 new apartments will be needed by 2030 to accommodate the nearly 100 people moving to the city every day.
Wednesday, September 20, 2017
Tuesday, September 19, 2017
This week: the Metro council considers new taxes to help pay for affordable housing outside the city limits of Portland; The U.S. Census reports Oregon's median household income rose 6.2% in 2016, after decades of trailing the rest of the United States.
Monday, September 18, 2017
Friday, September 15, 2017
Thursday, September 14, 2017
Tuesday, September 12, 2017
This week: The Portland Unreinforced Masonry Policy Committee holds a final public meeting October 4th and then heads to City Council; Vacancy rates for studios and one-bedroom units are increasing; national economics professors argue that restrictive land use policies are adding drag to the national economy.
Monday, September 11, 2017
Thursday, September 7, 2017
Wednesday, September 6, 2017
This week: lender to the rescue for Portland's pending seismic upgrade requirement? Cap rates continue to decline despite an increase in interest rates.
Friday, September 1, 2017
Wednesday, August 30, 2017
Wednesday, August 23, 2017
Monday, August 21, 2017
-Deferment of development fees or long-term loans for developers building homes for families that make less than 125% area median income
-Tiered system for development fees based on home size
-Measuring density by radius rather than lot-by-lot
-Allowing four-plexes to be built in single-family neighborhoods
-Altering the requirement for open space when a home is built near a park
-Raising allowable lot coverage for multifamily housing from 40% to 60%
Tuesday, August 15, 2017
Landlords are still allowed to screen applicants on employment, credit scores, income ratios and other criteria.
Read a statement on the City of Seattle website.
News Reports: City of Portland Plans to Extend Relocation Assistance Following Landlords' Judicial Appeal
The news comes on the heels of two Portland landlords filing an appeal of a recent judges' ruling allowing the relocation assistance.
This week: The City of Portland considers special tax breaks for projects approved before inclusionary zoning took effect; Mayor Ted Wheeler criticized for lack of action on affordable housing initiatives; and Portland's relatively low rent-to-income cost average.
Monday, August 14, 2017
As of the second quarter, Portland's rent-to-income ratio is just a shade under 25%, at 24.96%. The average income in metro Portland is about four times average rents. That is higher than some places, such as Raleigh at 18.77% or Austin at 21.53%, but a lot less than other markets, and less than the national average of 28.99%.
The highest rent-to-income ratio in the country is New York, at 51.33%. Other pricey markets include LA at 42.95%, San Francisco at 38.57% and San Diego at 33.28%. Among major West Coast markets, Portland has the lowest of all rent-to-income ratio.
Source: August, 2017 report from CBRE.
Wednesday, August 9, 2017
In this week's news: REIS announces the national vacancy rate; streamlining Portland's design review; affordable housing bill proposed in U.S. Senate.
In an interview with HFO partner Greg Frick, Portland attorney Andy Hahs discusses the 2017 legislative session and Portland's relocation assistance program, which is likely to be modified and extended this year by Portland's City Council.
Friday, August 4, 2017
Landlords were previously provided with 60 days' notice on which units would be inspected. Now they will receive a 60 day notice of pending inspection and a 10 day notice of the exact day, but they will not know which units will be inspected.
Previously, landlords could hire a private inspector if they didn't want the city inspector to conduct the inspection, but landlords weren't required to provide the resulting written report. The rules will now require inspectors turn over the resulting report to the city.
Thursday, August 3, 2017
- The state and most counties offer a 60-day appeal window, but some only offer 30 days.
- Your property has significant deferred maintenance or capital needs
- Your property has construction defects
Portland will remain among the highest income growth for multifamily in 2017, even as vacancy rates increase. Freddie Mac estimates Portland gross income will increase by 5.7% with a year-end vacancy rate of 5.1%.
Download the full mid-year report here.
Yardi forecasts that as that new supply is absorbed, occupancy rates are likely to fall, especially in construction-heavy submarkets like downtown Portland and Austin's Hyde Park, which have seen occupancy decline by more than 3% in the past year.
Yardi expects the second half of 2017 to have slow rent growth the second half of 2017 with increases more in line with wage growth and increases in supply reducing occupancy. Occupancy rates in Portland and Austin have fallen as much as 80 basis points, according to Yardi.
The company forecasts effective annual rent growth in Portland this year will be 2.5%.
A mid-year report by Fredie Mac Multifamily Research Group forecasts Portland's gross rent growth at 5.7% for 2017, with an end of year vacancy rate at 5.1%.
Tuesday, August 1, 2017
Seattle's Vacancy Rate Jumps 2.8%
Census estimated Seattle-Tacoma-Bellevue's vacancy rate has also increased the same amount -- 2.8% in the past three months -- from 1.9% to 4.7%.
The nation's lowest vacancy rates:
Allentown-Bethlehem-Easton, PA-NJ (1.2%)
Fresno, CA (2.2%)
Grand Rapids-Wyoming, MI (2.7%)
Jacksonville, FL (3.2%)
San Jose-Sunnyvale-Santa Clara, CA (3.5%)
Syracuse, NY (3.5%)
San Diego-Carlsbad, CA (3.6%)
Buffalo-Cheektowaga-Niagara Falls, NY (3.7%)
Los Angeles-Long Beach-Anaheim, CA (3.8%)
Worcester, MA (3.8%)
Average National Rental Vacancy Rate
The average national rental vacancy rate for Q2 2017 was 7.3 percent for multifamily dwellings of five or more units -- up 0.6% from one year earlier.
Year-over-year vacancy rates in the western U.S. have climbed from 4.9% to 6.0%.
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U.S. Homeownership Rate Increases
After falling to a 26-year low last year, homeownership rates have been increasing. The current homeownership rate in the West has increased the past 12 months by 1%.
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*The margin of error for the Greater Portland MSA is 2.9%