Portland city officials have hired a national consulting firm to review the city’s 10-year-old inclusionary zoning ordinance amid growing criticism from developers who contend the requirements are contributing to stalled housing projects.
The Planning and Urban Development Department selected CZB LLC earlier this month to conduct a comprehensive analysis of the ordinance, which currently requires 25 percent of units in new developments to be designated “workforce housing,” affordable to households earning up to 80 percent of the area median income.
…. Developers have been among the most vocal critics of the strengthened mandate, arguing that the 25 percent requirement, combined with high interest rates and rising construction costs, has made many projects financially unworkable.
Jonathan Culley, managing partner at Redfern Properties, said regulatory costs, including the inclusionary zoning requirement, are among the few expenses city officials can directly control. He noted that several projects, including a development on Washington Avenue, have stalled under current conditions.
“It would cost us $15 million to the city right off the bat,” Culley said of one proposed project, reflecting broader concerns that few new developments are breaking ground under the existing rules.
Supporters of the policy say inclusionary zoning is intended to increase affordable housing supply, while critics say it can deter construction without significantly increasing overall housing production.
I wrote about this disastrous housing policy back in November, and you can get the details there, but it’s the preceding quote that’s my point this morning: “Supporters say inclusionary zoning is intended to increase affordable housing”. In the face of 10 years of failure of that policy to produce more affordable housing — in fact, it’s caused a reduction of supply —its advocates refuse to reconsider and try something else, but insist that it be continued “because our intentions are good”. That’s the same rationale used to justify everything done in the Great War on Poverty: 67 trillion spent, yet the poor are still among us; in fact, as was pointed out some few years ago, The poor shall never cease out of the land.
Hence the title of my November piece: