Builder’s Remedy and Permit Delays: What’s Next for Oregon?
Policy & Legislation
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Portland Adopts Unified Housing Strategy.
On Wednesday, August 6, Portland’s City Council voted 11-1 to approve a Unified Housing Strategy resolution, directing the City Administrator to align housing, zoning, permitting, and homelessness policies into a single comprehensive plan (portland.gov). A draft strategy is due by December 1, 2025, aiming to streamline the city’s response to its housing crisis and coordinate with county and state partners. Councilors stressed the importance of measurable goals and regional coordination and indicated that rent regulation policies will be explored as the plan is developed.
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“Builder’s Remedy” for Oregon? Oregon state leaders are exploring bold measures to accelerate housing production, including concepts like California’s “builder’s remedy.” This will allow developers to bypass certain local zoning restrictions if cities fail to meet state housing goals. In early August, housing officials suggested that a builder’s remedy could help fast-track projects in jurisdictions that are lagging on growth targets, effectively preempting NIMBY local regulations. No such law has been passed yet in Oregon, but Gov. Kotek’s team has convened stakeholders to recommend strategies for the 2026 legislative session. Developers should remain vigilant, as the enactment of this law could potentially free up sites previously restricted by local zoning, especially in high-demand Metro areas.
Portland and Vancouver, WA, Angling for Local Rent Control
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Rent Control Debates Evolve in Portland and Vancouver. Portland’s Unified Housing Strategy discussions hint at revisiting rent stabilization at the city level (beyond Oregon’s existing statewide rent cap). Any push for stricter local rent control would face political hurdles due to state preemption, but tenant advocates remain vocal as rents continue to be burdensome. Washington State’s new rent cap (7% + inflation) also has landlords in SW Washington navigating compliance (see our Washington Newsletter for details). Additionally, Vancouver’s rollout of its rental ordinance in 2026 (including registration and inspections) means higher operating scrutiny. Owners should plan for potential regulatory changes: staying engaged with local councils is key, as both Portland and Vancouver are refining housing policies that could affect rent increase procedures, lease requirements, and property upkeep standards.
Portland Permit Approval Delays vs. Vancouver, WA
Current Timelines – Portland
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Commercial New Construction: Median approval time is 147 business days, about twice the city’s target of 71 days (set in 2021).
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Permit Distribution: One-third takes 90–182 business days.
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Multifamily Projects: Median of 211 business days (10 months), average of 319 business days (14.5 months)
Historical and Transparency Measures
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The city’s updated permit dashboard now includes: (a) more permit types and subtypes. (b) historical data back to 2020 and (c) weekly updates for ongoing tracking.
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Interim Director David Kuhnhausen says the goal is greater transparency in the permitting process.
Improvement Initiatives
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Portland Permit Improvement Task Force: Created by former commissioners Dan Ryan and Mingus Mapps to reduce permit times.
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Policy Changes: The Code Alignment Project temporarily pauses specific building code requirements. Fee Waivers: System development charges are waived for new housing projects until 5,000 units are constructed.
Key Takeaways
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Portland’s permit delays significantly exceed its own goals and lag behind nearby cities.
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Regional peers, such as Vancouver and Beaverton, demonstrate shorter and more predictable timelines.
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The city has launched multi-pronged reform efforts, but notable delays persist.
Vancouver Pipeline & SDC Deferrals Pass Council Vote
At last night’s City Council meeting, the Vancouver City Council voted unanimously. They decided to defer Impact Fees and System Development Fees from “due at application” to a later stage. Specifically, allowing a deferral of these development payments until the granting of a permanent occupancy permit. The city will grant a temporary occupancy permit. Later, a permanent permit will be granted once the required fees have been paid to the city. It estimates that the move will delay payments for most projects by about 9 months.
The decision to allow delayed payments surfaced because Vancouver is only at 25% of its goal of 2,000 new multifamily housing units per year.
Sustainability & Energy Efficiency
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Oregon Launches Building Energy Performance Standards. Oregon became the fourth state to require energy performance targets for existing large buildings under a new Building Performance Standards (BPS) program. Enabled by 2023’s House Bill 3409, the program targets big commercial buildings and multifamily properties statewide—≥20,000 sq. ft. Owners of covered buildings must benchmark and report energy use and ultimately meet prescribed Energy Use Intensity (EUI) targets through efficiency upgrades. Compliance phases are scheduled to begin in 2028, but the Oregon Department of Energy is already notifying owners to initiate audits and upgrades. The goal is to cut energy use and emissions from large apartments and commercial properties, aligning with state climate mandates and potentially reducing operating expenses in the long run. Multifamily assets smaller than 35,000 SF have fewer reporting requirements. Note: A similar program is starting in Washington State, but the state requires reports to be submitted earlier, beginning July 1, 2027.
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Vancouver Plans Rental Energy/Health Inspections. Vancouver will increase oversight of rental housing through a new Rental Registration & Inspection program approved in July. Beginning in 2026, all rental units in Vancouver will be required to be registered annually ($30/unit), and starting in 2027, the city will phase in property inspections. The program aims to improve housing quality, safety, and energy efficiency by identifying substandard conditions. Additionally, it will create a fund to support renters displaced due to hazardous conditions or code compliance actions. Landlords in Southwest Washington should budget for the fees and ensure their properties meet habitability and energy code standards, as this regulatory push unfolds.
Economic Indicators & Market Trends
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Mortgage Rates Dip, Offering Relief. National interest rates have ticked down slightly, with the average 30-year mortgage at 6.58%—the lowest in 10 months. A year ago, rates were roughly similar (around 6.5%), but this decline from recent highs eases financing costs marginally. For multifamily investors, any drop in borrowing costs can improve project feasibility at the margins. Industry analysts note that while rates remain elevated compared to 2021 levels, the recent cooling of inflation and the Fed’s pauses are improving investor sentiment and could lead to a modest uptick in development activity or refinancing in the Pacific Northwest.
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