Multifamily Permit Applications Still Down, PHB Looking to Increase IZ Incentives

Since the City of Portland's Inclusionary Zoning (IZ) requirement went into effect February 1, the number of applications for multifamily permits has stalled. The Portland Tribune estimates that a valuation of $270 million worth of development could be eliminated by the IZ program. The Portland Housing Bureau claims that the slowdown in development is due to a softening of the market, a tariff on Canadian lumber, and increasing interest rates rather than the IZ program itself. The bureau is offering incentives to projects that were vested prior to February 1 in hopes of getting more affordable units built in the city. In January, the city received 20 permit applications valued at $74.7 million. Since February, there have been only 6 permit applications for developments with more than 20 units, the threshold for the IZ requirement. Four of those projects are being developed with assistance from PHB. Read more.