Development permit fees increase

Effective July 1, the City of Portland’s Bureau of Development Services (BDS) is increasing fees for permits. Land Use Services, which is where applications are reviewed for initial approval, carries the smallest increase, at 3.8%. Neighborhood Inspections at 7% and the Sign Program at 7.5% increase the most.

The notice I received from the City states:

“In 1988, the Portland City Council determined that construction-related programs operated by BDS should be supported solely by permit fees, rather than by general taxpayer dollars. The Council also directed BDS to create the Development Services Operating Fund to tide the bureau over in times of lower permit revenues. Since that time, BDS has kept these programs self-supporting.“

This policy has relevance to people who aren’t developers in two ways. One, the City has the philosophy that “development should pay its way”, at least to the extent of permit fees covering the services provided for them. Subsidies to development come in other ways, either by overt tax breaks like the one on the Council’s agenda this Wednesday, or by the City providing services (streets, transportation connections, parks, etc.,) that don’t necessarily show up on the accounts of a particular development. The second way BDS fees impact non-developer citizens is in increasing the cost of new development to the purchaser, since almost all fees are passed on to the buyer. “Making development pay its way” can mean a dearth of affordable housing for native Portlanders.

BDS also announced service changes with the new fee structure. The Field Issuance Remodel Program allows streamlined plan review and inspection for residential remodels and additions. The City is returning to the practice of issuing Certificates of Occupancy for new homes, so buyers know all inspections are completed. That’s definitely A Good Thing. And a new Engineering Plan Review has been created, called the Residential Structural Plan Review Exemption. It’s said to “improve efficiencies” while “still ensuring compliance with applicable codes and regulations”. That last one sounds a bit dodgy to me. Speeding up review of structural engineering plans has the potential to encourage contractors and inspectors to cut corners – literally. This change seems to rest on the license of the engineer employed in the home, rather than on city staff checking the work. Not necessarily a good idea.