Real Estate

Accessory Housing Units in Portland Promise "Smart growth"

New changes made by the City of Portland just put an Accessory Housing Unit (ADU) within the reach of most homeowners. On March 3, 2010, Portland City Council waived System Development Charges for ADUs for 3 years, subtracting up to $ 15,000 from the cost of developing an ADU. The council also voted to increase the size limits to 800 square feet or 75% of the primary structure. These policy changes have opened a key window of opportunity for the creation of ADUs in Portland that, according to local home builders, brings the promise of a new “smart growth” spurt just when the city’s economy needs it most.

ADUs, also called “grandma’s flats” or “backyard cabins,” are separate, compact spaces, complete with a bed, bathroom, kitchen, and entryway, that provide a second home on a residential property.

History of ADU politics in Portland

Before World War II, Accessory Housing Units were a common fixture in American neighborhoods. They were easily integrated into existing communities, provided affordable housing options for young and old, and made intergenerational life easier for families.

But after World War II, national patterns of urban development shifted toward low-density sprawl, and new zoning rules emerged that segregated land uses and housing types. During this period, ADUs fell out of favor and, in fact, were banned in most urban areas of the country.

After several decades of expansion, accompanied by urban blight, automobile dependency, and loss of green space, communities across the country began to advocate for smarter growth. The city of Portland became one of the first leaders of this movement and was one of the first to allow the development of ADU. But it wasn’t until 1998 that the City began promoting ADUs by relaxing the minimum area requirements; eliminate owner occupancy requirements; and allow ADUs in most residential areas.

Despite this progress, SF’s onerous maximum requirements and System Development Charges (SDC) of up to $ 15,000 were maintained. With an average ADU construction cost of $ 75,000, these SDC and square foot restrictions caused most consumers to abandon ADU projects entirely or modify them to avoid ADU designation and permits.

Thus, the many “smart growth” benefits of ADU development, each firmly aligned with the City’s Portland Plan, have largely not been realized. These missed opportunities include:

  1. Increase the supply of affordable housing in a way that easily integrates with existing neighborhoods;
  2. Support the creation of a compact urban form that allows for walking, transit and vibrant neighborhoods;
  3. Provide an independent living option for the elderly / disabled that promotes intergenerational living;
  4. Generate additional rental income for landlords and tax base for the City;
  5. Provide further residential development without major new infrastructure.

Key obstacles removed

In 2008, the City began a review of its zoning codes and regulations governing green building technologies and forms. The effort, called RICAP5 (Regulatory Improvement Code Amendment Package 5), was guided by a Citizen Advisory Committee of key stakeholders that recommended removing regulatory hurdles to ADU development.

The committee’s work is highly successful. On March 3, 2010, the Portland City Council removed all SDCs for ADUs. Soon after, the Council increased the maximum size restrictions to 800 square feet or 75% of the primary structure, whichever is less. In the words of Mayor Sam Adams: “This could not happen at a better time, given the significant difficulties faced by builders and the construction industry, and in terms of our sustainability goals in the community.”

The last ADU boom was during the Great Depression. Now, according to local builders and lawmakers, ADU development could help homeowners and the local economy emerge from the Great Recession. But the window of opportunity is not open forever; The relaxation of ADU development regulations by the City ends on June 30, 2013.

Potential benefits of ADU projects for homeowners and the community

ADUs promise to benefit homeowners and the community such as:

  1. Local and sustainable drivers of neighborhood prosperity and vitality
  2. Homes that significantly improve the value and marketability of properties;
  3. Economic projects with high built value and return on investment (ROI);
  4. “Plug-and-Play”, simple developments.

Many in the homebuilding and real estate community see the ADU development as a boon to Porltand’s future. “Is he people that make Portland interesting: young entrepreneurs bringing business to the city and life to the sidewalks, “says local agent Kama Dersham.” ADUs are modern and affordable for these people and will help keep Portland vibrant and viable. “

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