Portland Opens 45 Acres of City Land for Affordable Mixed-Use Development

Portland officials released details on July 10 for the first round of land parcels under the 2026 development initiative, with applications accepted starting August 1 for sites totaling 45 acres across two zones.

The move addresses a shortfall in permitted sites after the Metro regional government updated its 2040 growth forecast last month, projecting an additional 28,000 households by 2035 that exceed current zoned capacity in the urban growth boundary. Rising construction costs and limited inventory have pushed median home prices to $485,000 in Multnomah County, according to the most recent county assessor data released in May.

Two parcels sit along SE Division Street between 20th and 28th avenues, while three others border the Overlook neighborhood near the Fremont Bridge. The Portland Bureau of Planning and Sustainability will review submissions in coordination with the Portland Housing Bureau, which sets the affordability thresholds for any residential component.

Eligibility rules

Developers must demonstrate at least five years of experience completing projects of 50 units or more and commit to designating 25 percent of units as affordable to households earning 60 percent of area median income. Nonprofits and certified minority-owned firms receive a 10-point scoring advantage in the evaluation rubric, which totals 100 points across criteria that include design quality and transit access. Single-family home builders are excluded from this round.

Application steps

Interested parties submit forms through the city's online portal by September 15, including site plans, financing letters and a $7,500 application fee per parcel. Staff will score proposals by October 31, with selected teams entering exclusive negotiation periods that run through March 2027. The Bureau of Planning and Sustainability will host an information session at the Portland Building on July 22 to outline required documentation and scoring weights.

Successful applicants gain 99-year ground leases at below-market rates, with the first payment due upon permit issuance. City records show similar past releases in 2022 produced 620 units, 28 percent of which met affordability standards within three years of opening. Prospective applicants should verify parcel boundaries on the bureau's interactive map before preparing submissions.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.