04/23/2024

Oregon May Strip Portland of Its NIMBY Powers

People can’t afford to be poor in Portland, Oregon. Nearly half of the households that rent in the Portland metro area pay too much. Almost one-quarter (24.3 percent) of these households are severely cost burdened, meaning half of their household income goes to keeping a roof over their heads. The median income of Portland metro homeowners is nearly twice that of renters: $81,900 versus $41,600, per a new Harvard report on housing.

Oregon has decided to do something to boost affordable housing in the state. A new law before the legislature has opened unexpected fault lines in the already fractured political debate over housing costs. The bill represents something of a mixed blessing for affordability boosters: it’s designed to remove barriers to new construction, but at the cost of local authority.

House Bill 2007 would make it harder for local governments to restrict developments that include affordable housing. The bill would require city or county governments to complete a review of an application for a development with affordable housing within 100 days. Given the high costs associated with permitting, this bill could help pave the way for apartments and homes that Portlanders can afford.

Its benefits notwithstanding, H.B. 2007 is a preemption bill. Like other efforts by states to preempt cities, this bill would strip local governments of certain regulatory powers. Unlike other motions targeting cities—everything from bills banning sanctuary-city immigration policies to micromanagement efforts to keep local governments from tacking a nickel tax onto plastic bags—this one may work to certain Oregon cities’ favor.

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