Inclusionary Zoning Reform Passes in Oregon Legislative Short Session (opens original article in a new tab)

Oregon's legislature passed SB 1521 during the 2026 Short Session to address issues with inclusionary zoning by requiring jurisdictions in the Portland metropolitan area to fully fund their programs, preventing unintended consequences like reduced affordable housing construction.

• SB 1521 requires cities in specific Oregon counties to fully fund inclusionary zoning programs.
• Portland's 2016 inclusionary zoning ordinance faced issues due to underfunding, leading to fewer affordable units and more small projects.
• The new law mandates offsetting below-market rents through cash payments, tax exemptions, or fee waivers to prevent suppression of large multi-family developments.