The City of Portland pushed out a decision on the controversial Local Transportation Infrastructure Charge (LTIC) until early 2018 after issues were raised regarding potential amendments.
The original program passed in Spring 2016 would provide an option for developers to pay a fee ($600 per linear foot of frontage) for street improvements rather than build improvements themselves. However, upon implementation, there were a series of unintended consequences that proved problematic for property owners and developers alike – stalling the potential production of new housing by creating charges not commensurate to the value of the property or proposed home.
The updated proposal put forth by PBOT would have implemented a cap based on city zone and distribution plan and methodology based on areas of need within the city. Yet at the hearing last week, there were still a series of outstanding questions that remained around the formula for determining those areas that will receive funding, the amount of the cap, and other potential options to fund improvements not currently incorporated in the proposal.
Recognizing the outstanding issues, Council asked to revisit the proposal and further refinements in early 2018. While the current PBOT proposal is a step in the right direction, the HBA will continue to work with our partners and city to craft a more suitable policy.