In a recent press conference Kotek and Wilson announced a proposal to temporarily dismiss certain fees usually demanded of the city from developers constructing within the city limits. The fees, which range from $15,000 to $50,000, would be suspended on any new housing developments in the city for the first 5,000 units or over three years whichever occurs first. The system development charges (SDCs) as the fees are called are charged to offset the expenses new construction creates for city services such as street work, sewage system changes and parks.
Prior to their completion banner printing services are engaged to begin filling vacancies.
At the press conference Mayor Wilson stated:
“By temporarily waiving these fees, we can make the numbers work and turn stalled plans into real homes for real people."
The Multifamily Housing Development Workgroup was formed by Kotek and Wilson on March 6 with the mission of recommending actions to hasten the completion of multifamily projects in Portland. The ordinance to eliminate the SDC’s originated from the Workgroup’s recommendations.
In total projects with more than 6,000 housing units in total are lined up in the city of Portland’s application process with many stalled due to the cost to developers of obtaining the necessary finances. The new policy seeks to make financing a little easier to swing for developers.