The program waives system development charges, or SDCs, that developers normally pay toward infrastructure such as sewer and water lines, streets and parks. The fees average about $20,000 per housing unit. City leaders adopted the waivers to spur construction during a slow period and set a goal of 5,000 new homes between Aug. 15, 2025, and Sept. 30, 2028 — about 1,600 a year.

In the program’s first year, roughly 980 units had received building permits, had their SDC fees waived and were under construction. Another 1,680 units had applied to join the program but had not yet received permits. Just over 200 units had permits but had not received waivers. The report did not say how many waiver-supported projects had been completed.

Portland issued about 1,375 housing permits in 2025 and had issued roughly 1,070 so far this year. The report projects the city will meet or exceed last year’s total. Most applications submitted since the waivers began have been for smaller developments with fewer than 20 units; larger projects continue to face financing, design and permitting hurdles.

Deputy City Administrator Donnie Oliveira, who oversees the city’s housing and development bureaus, wrote that the incentive has not been enough to overcome broader financial pressures. Home Building Association of Greater Portland government affairs director Ben Hemson said interest rates and the economy are preventing some projects from reaching the permit stage, though the waiver can help projects that are financially viable.

Real estate broker Eric Hagstette said the fee relief is welcome but does not address delays he described in Portland’s permitting system, which can be especially difficult for smaller builders. “Time is money,” he said.

The city surveyed about 115 property owners enrolled in the program. Respondents identified the SDC waiver as the strongest factor in their decisions to pursue construction, ahead of interest rates, market conditions and other costs. But the relief comes at a cost to public works: If all 2,871 units that applied for waivers in the first year receive permits as expected, Portland would forgo about $51 million in revenue, including roughly $22 million for Portland Parks & Recreation.

Councilor Candace Avalos, who chairs the Housing Committee, said the city needs evidence that the waivers are creating housing that would not otherwise be built. She also warned that lost fee revenue matters in East Portland and other communities that need investments in streets, utilities and other infrastructure. The city report says the revenue gap has already delayed planned public infrastructure projects.

The waiver program is scheduled to run through mid-2028. The city says it will use that period to improve permitting and address other barriers to larger apartment developments. Hemson said the outlook beyond the program remains uncertain, particularly if market conditions do not improve.