SB 1521
Prohibits cities and counties within the Portland MSA from enforcing requirements that developers provide affordable units in multiunit dwellings unless the city or county first calculates the developers' average expected losses due to providing affordable housing and the city or county offsets those losses.
Jurisdiction
Oregon
Session
2026 Regular Session
At the request of
(at the request of Senate Interim Committee on Housing and Development)
Take action
Record your position on this measure.
Sign in to record your position, submit testimony, or contact your legislator.
Sign in to take actionPublic sentiment
Support
79%
Oppose
21%
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Bill overview
This bill restricts how cities and counties in the Portland metropolitan area can require developers to include affordable housing units in new multiunit buildings. It mandates that local governments first calculate the potential financial losses a developer would experience by providing affordable units and then offset those losses with incentives like cash payments, property tax breaks, or reduced fees. The bill also establishes specific criteria for evaluating these losses and provides developers with options like paying an in-lieu fee instead of including affordable units. The requirements are phased in, starting with rental housing in 2028 and all housing in 2029.
Sponsors
Official sponsors from legislative records.
Primary sponsor
Senate Interim Committee on Housing and Development
Arguments in favor
Reasons to support this legislation.
Supporters of SB 1521 generally agree that modernizing Oregon's inclusionary zoning statute is crucial to addressing the state's housing shortage. They argue that the current system's inflexibility and unfunded requirements exacerbate the issue, making it difficult for developers to build affordable projects below a certain price point. By increasing flexibility in city design programs and reducing building assessments, proponents believe the bill can promote more diverse and affordable housing options, such as multifamily buildings alongside one-unit homes and accessory dwelling units, without concentrating poverty or privilege. Many testifiers also emphasize the need for transparency, accountability, and alignment between policy goals and market conditions, citing lessons learned from Portland's inclusionary zoning program and the unintended consequences of underfunding affordability requirements.
Source: Testimony Summaries
Arguments opposed
Reasons to oppose this legislation.
Opponents of SB 1521 express concerns that the bill's provisions may shift the financial burden of long-term affordability requirements to future property owners, potentially undermining the sustainability of multifamily housing. They argue that the subsidies for affordable housing development compromise the original policy of inclusionary zoning, which aimed to share costs between developers and taxpayers. Furthermore, some that government-funded affordable housing projects unfairly benefit developers at the expense of taxpayers, who would be required to subsidize these initiatives through taxes.
Read the latest version inline or switch to a previous version.