Portland mayor adjusts demolition tax proposal

Charlie Hales wants a $25,000 penalty for developers who don’t spur density after demolitions.

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Portland Mayor Charlie Hales wants the city to enforce a $25,000 penalty for developers who don’t spur density after demolitions.

Developers would be additionally fined $25 for each year the livable house had existed before being scrapped.

Under new guidelines released last week, however, builders who tear down a single home and replace it with either affordable housing or multiple new dwellings would be able to apply for a rebate. The fee would also not apply to derelict homes or those seriously damaged by fires, landslides, floods or other disasters.

The city projects that the fees could generate between $1.25 million and $3.75 million, depending on how many demolitions take place and how many would trigger the fee. The latter number would represent 150 demolitions. The city had about 180 demolitions in 2014.

(SOURCE: Portland Business Journal)

The revision comes after meeting with affordable housing advocates.

In the years ahead, Portland planners predict most residential growth will be from apartments and condos, not from replacing one single-family home with two or more.

“Two for one helps a little,” Hales said of added density through single-family home construction. “But when you’re talking about thousands (of apartment units), dozens (of single family homes) don’t make much of a difference.”

(SOURCE: OregonLive.com)

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