Homeless & Housing Committee - 2026-03-10
Meeting Intelligence Preview
Meeting Summary
The Homeless & Housing Committee heard public testimony on housing issues and received an update on Portland's temporary SDC exemption program. After five months, 265 housing units have complied with the exemption requirements, with 206 units issued and 1,248 enrolled, representing 34.4% progress toward the 5,000-unit goal. Approximately $6.6 million in SDCs have been exempted for complied units, averaging $25,221 per unit.
Key Decisions (1)
SDC Exemption Program Progress Report
Staff from Portland Permitting and Development presented the first implementation report on the temporary SDC exemption program adopted in July 2025. The program has 265 complied units, 206 issued units, and 1,248 enrolled units toward a 5,000-unit goal over three years. Total exempted SDCs for complied units equal approximately $6.6 million across BES, PBOT, Water, and Parks bureaus.
Development Activity (2)
Monarcha (formerly Minnesota Places)
Originally 72-unit project abandoned by previous developer, restructured to 57 larger family units. State invested $4 million initially, another $13 million allocated. Seeking $3.5 million from city to complete.
Broadway Corridor Parcel 6
Over 200 homes, 100% income-restricted serving households from 60-120% AMI. Net zero energy building. Mixed affordable and moderate income housing restricted for 60 years.
Market Signals (5)
Housing Demand
Multifamily permits dropped from 2,169 units in 2023 to 954 in 2024 to 495 in 2025, representing consecutive 50% year-over-year declines, indicating a dry supply pipeline that will likely increase rents in 2027-2028.
Commercial Demand
Construction costs have surged approximately 50% since the pandemic onset and remain at historic highs with no signs of cooling, presenting significant barriers to project feasibility.
Sentiment
Developers report the SDC exemption is helpful but insufficient alone for large projects; multiple incentives and favorable interest rates are needed to move larger multifamily developments forward.
Housing Demand
Home Forward has approximately 2,000 unoccupied affordable housing units sitting vacant while waitlists remain stagnant, indicating administrative bottlenecks in affordable housing placement.
Infrastructure
Oregon's $75 million moderate income revolving loan program went into effect July 2025 with Tillamook and Coos Bay participating, but Portland has not enrolled as a sponsoring jurisdiction.