Developers Opting-Out of Inclusionary Zoning by Building Fewer Than 20 Units

The Daily Journal of Commerce reports that planning officials in the City of Portland are tracking development trends to see if the city's inclusionary zoning (IZ) policy is driving developers to keep projects to 19 units or less. The policy, which went into effect in February 2017, requires developers to include affordable housing units in projects with 20 or more units. So far, the number of 15-19 unit buildings proposed between February 1st and July 7th has been roughly equal to what it was over the same period in 2016. According to Tyler Bump of the Portland Bureau of Planning and Sustainability, the city is concerned that developers are planning to build 19-unit properties on parcels that could support more density. This would indicate that the IZ policy is working against the interests of the city, which is facing a housing shortage. David Wark, Chairman of the Design Commission, believes Portland should promote incentives for density rather than requiring developers to shoulder additional requirements. Read more.