Portland Fast-Tracks Housing & Economic Growth + 6/2/25 Weekly Oregon Legislative Update
On Thursday of last week, Governor Tina Kotek and Portland Mayor Keith Wilson added more focus to efforts to speed housing development in Portland. And we have our weekly legislative update.
Key Initiatives
-
Housing Development Acceleration Goal: Construct 5,000 multifamily housing units within three years through initiatives such as waiving system development charges for developers. Focus on streamlining permitting processes and easing affordable housing construction.
-
Office-to-Apartment Conversions Business Oregon will designate office-to-housing projects as “essential to the economic well-being of the state,” enabling rapid approval processes in collaboration with the city, developers, and the Building Codes Division. They will establish a $15 million fund for office-to-housing conversions, targeting middle-income housing, and finance it through the Portland Clean Energy Fund (PCEF).
Economic Development Strategy
-
To attract and retain businesses, they will create a six-month economic development roadmap that aligns with established plans, such as Prosper Portland’s Advance Portland.
-
The strategy aims to foster affordable housing, economic growth, and revitalized communities in Portland and beyond.
Broader Goals
-
Promote housing options for all income levels, particularly affordable and middle-income housing.
-
Position Portland as a hub for housing opportunities and economic renewal by reducing bureaucratic barriers and incentivizing development.
Regulatory Improvements
-
The State Building Codes Division, under the direction of Oregon Gov. Tina Kotek, has been tasked with supporting Portland’s efforts to improve permitting and inspections through a mutual aid agreement with other Oregon cities. A reboot of Portland’s self-certification program is planned to speed up building approvals.
-
Exploration of Builder’s Remedy. Inspired by California, this measure could limit local jurisdictions’ ability to deny affordable housing projects if they fail to meet the state’s housing production laws. Here’s how it works: The “Builders Remedy” is a provision in California housing law that allows developers to bypass certain local zoning rules if a city or county is out of compliance with state housing law—specifically if their Housing Element is not certified as compliant by the California Department of Housing and Community Development (HCD).
Key Points:
1. Legal Foundation
-
The Builders Remedy stems from the Housing Accountability Act (HAA) and SB 330, but the core provision is in Government Code Section 65589.5(d).
-
A city triggers it when it lacks a state-certified Housing Element, the legally required plan for accommodating housing growth.
2. How It Works
-
If the state hasnot approved a jurisdiction’s Housing Element, housing developers are allowed to submit projects that:
-
Include at least 20% of units as affordable to lower-income households or 100% moderate-income housing.
-
The local government cannot reject or reduce the density of these projects for being inconsistent with zoning or General Plan standards unless it can prove threats to public health or safety.
3. What It Overrides
-
This remedy overrides the usual height, density, parking, and other zoning restrictions.
-
Design review and other local ordinances may also be limited under this remedy.
4. Where/When It Applies
-
This remedy is only applicable when a city lacks a compliant Housing Element, usually at the onset of a new regional housing planning cycle known as RHNA—Regional Housing Needs Allocation.
-
Recently (notably 2022-2024), dozens of cities in LA, the Bay Area, and other regions have been exposed due to delayed Housing Element updates.
5. Purpose
-
Designed as a consequence for cities that fail to plan for enough housing, especially affordable housing.
-
It gives developers leverage and encourages cities to comply with state housing laws.
Santa Monica: California Builder’s Remedy in Action – Background
-
In October 2022, as part of a new housing planning cycle, Santa Monica failed to have its updated Housing Element certified by the California Department of Housing and Community Development (HCD) by the deadline.
-
This left the city temporarily out of compliance, triggering the Builders Remedy.
What Happened
-
Developers quickly filed over two dozen (20+) “Builders Remedy” applications for housing projects across Santa Monica.
-
These applications included projects much taller and denser than what local zoning would normally allow. Some proposals reached 14 stories in areas typically limited to much lower heights.
-
Many projects included hundreds of new units, with at least 20% reserved as affordable housing, qualifying them under the Builders Remedy rules.
Notable Example
-
1433-1443 5th Street: A developer proposed a 15-story apartment building with 200+ units, far higher than allowed under current zoning.
-
710 Broadway: Another proposal called for a high-rise apartment complex with a significant portion of affordable units.
-
Santa Monica’s planning staff described the volume and scale of these proposals as “unprecedented.”
Outcome
-
The mere threat and filing of these applications pressured the city to quickly adopt and submit a compliant Housing Element, thereby regaining local control over zoning.
-
As of 2024, many of these projects are still in the approval process or being negotiated, but several are moving forward, demonstrating that the Builders Remedy is a real and active enforcement tool.
Impact
-
The situation in Santa Monica made headlines and inspired developers across California to consider using the same tactic in other non-compliant cities.
-
It effectively demonstrated that cities could lose local zoning power by failing to comply with state housing laws.
Oregon Legislative Update – Week of 6/2/25
Bills remaining this session
Note: *= Scary stuff
Heading to the Governor for Signature:
-
SB 426 A makes an owner and a direct contractor jointly liable in a civil action for any unpaid wages to an unrepresented employee; it passed the House floor 31-26 and subsequently re-passed the Senate 17-12, clearing its path to the Governor’s desk. (This bill does not exempt homeowners and has a 3-year lookback, even after a property is sold. It is not yet known how Title Insurance companies will manage this new wrinkle.)
High Oppose
-
*SB 690-1 would ban evictions on pregnant women and mothers of children under the age of 1 if they are set to receive rent assistance through the OHA 1115 waivers; Leah and Zach are still working on the amendment with Senator Reynolds’ office while in the Rules Committee. Requires landlords to monitor pregnancies!
-
HB 3521 A requires providers to pay damages if a lease isn’t executed, even for reasons beyond their control, increasing costs: waiting for a floor vote in the Senate. This essentially means that deposits will be eliminated, and landlords may not rent out units until they are fully available to a qualified renter.
-
*HB 3974 limits the applicant screening charges a residential landlord may collect to $20; referred to Rules – scheduled for hearing at 8 am Monday, 6/2 in the House Rules Committee.
High Support
-
SB 974 B This bill expedites permitting timelines, requires cities to respond to applicants within 2 weeks, and has certain timelines for final engineering approval, waiting for a floor vote in the House.
-
HB 3522 A. This bill simplifies the process of removing squatters, making units available to responsible tenants more quickly, currently pending a floor vote in the Senate.
Medium Support
-
SB 50 provides LIHTC funding for projects located in Clackamas County and is currently under review by the Ways and Means Committee.
-
SB 586 A reduces from 90 to 60 days the termination notice that a landlord must give the tenant when selling the dwelling, and you have to pay a relocation fee; waiting for floor vote.
-
SB 684 directs the Housing and Community Services (OCHS) department to establish a program to issue low-interest short-term loans for the construction of mixed-income public developments, sitting in the Ways and Means Committee.
-
HB 2968 makes OHCS defer SDC; in Ways and Means.
- HB 3145 provides funding from the Local Innovation and Fast Track Housing Program for factory-built housing, and it is currently in the Ways and Means Committee.
- HB 3589 OHCS to develop senior housing development initiative; in Ways and Means.
-
HB 5011 OHCS funding package; in subcommittee on Transportation and Economic Development.
Medium Oppose
-
*SB 444 A requires the Director of the Department of Consumer and Business Services to adopt rules to conform the state building code to accessibility requirements under the Fair Housing Act and certain American National Standards Institute standards for housing accessibility. This bill effectively increases the number of Type A dwelling units by 5x for all buildings over 15 units. Builders would likely circumvent this by constructing assets with 14 units.) Type A units cater to individuals in wheelchairs and are not associated with seniors aging in place. A poll was conducted, revealing that all accommodation needs in units are currently being met. The financial impact is approximately $10,000 in extra materials per unit, excluding labor costs.
Low Support
-
HB 2067 directs the State Department of Energy to establish a rebate program for the purchase of battery leaf blowers –in Ways and Means (impacts MF maintenance).
-
HB 2138 expands allowable middle housing and expands middle housing requirements to include urban unincorporated lands; in Ways and Means
-
HB 2139 requires OHCS to provide grants to eligible tribes in Ways and Means.
-
HB 2964 A requires the Housing and Community Services (OHCS) department to provide awards for predevelopment costs for affordable housing–currently waiting for a floor vote.
-
HB 3031 A states that the Oregon Infrastructure and Finance Authority may provide financial assistance for infrastructure, which is currently stuck in Ways and Means (budget).
-
HB 3179 calls for a study of the economic impact of proposed rate increases and allows Public Utility Commissions (PUCs) to adjust rates; it is currently in the Ways and Means Committee.
Low Oppose
-
HB 3054 is a manufactured housing rent control bill that would cap rent increases at 6%; the engrossed-A version allows for a greater increase if agreed upon by park residents; it is awaiting a Senate floor vote.
This week: 24-hour notice for hearings is required, and the end of the 2025 session (Sine Die) is imminent.
Lloyd Center Concert Venue—Construction Begins This Month
-
Project Overview: A new 68,000-square-foot concert venue is planned at the Lloyd Center mall in Portland, Oregon. The venue will occupy the former Nordstrom building on Northeast Multnomah Street and is scheduled to open in early 2027. It will accommodate between 2,000 and 4,250 attendees.
-
Competition: Live Nation is developing a 3,500-capacity venue in Portland’s Central Eastside, which is expected to open in 2026. Live Nation faced regulatory hurdles in building on industrially zoned land, requiring a conditional land-use decision that was appealed and is now pending before the Oregon Land Use Board of Appeals.
Watch HFO’s latest YouTube interviews and subscribe.