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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