Central Adopts New Zoning Rules to Boost Affordable Housing Supply

Central officials are advancing a suite of housing policy changes designed to address the city's growing affordability crisis, drawing on approaches tested in New York City, Portland, Los Angeles and London. The proposals, still in draft form, would overhaul zoning rules, mandate more affordable units in new developments and streamline approvals for higher-density projects.

What the plan does

The centerpiece of the changes is a zoning amendment expected to enable thousands of new homes over a decade by allowing more housing in every neighborhood, similar to New York City's 'City of Yes for Housing Opportunity' zoning amendment adopted in December 2024, which is expected to enable 82,000 new homes over 15 years. Central's version would eliminate single-family-only zoning in many areas and permit duplexes, triplexes and small apartment buildings on residential streets. Officials say the goal is to produce a significant share of affordable units without relying solely on large-scale developments.

The plan also strengthens affordable housing requirements for developers. Following the lead of Westminster City Council in London, which this year adopted a new City Plan requiring 35% on-site affordable provision, Central is considering a similar mandate for projects above a certain size. The policy would resist large residential units in prime areas to ensure more family-sized affordable homes are built. Los Angeles adopted three ordinances in February 2025 under its Housing Element Rezoning Program to proactively plan for more housing and satisfy state-mandated requirements, another model Central is studying.

Why it matters now

Central has seen rents rise sharply over the past two years, with vacancy rates falling below 2% in many neighborhoods. The city's housing department estimates that demand for affordable units outstrips supply by several thousand homes annually. The draft plan comes as Portland released a proposed draft to update Central City regulations in April 2026 to address acute housing needs, pandemic-driven work changes, and high office vacancy rates, with a Planning Commission hearing scheduled for May 26, 2026. Central faces similar pressures: a shift to remote work has left downtown office towers with elevated vacancy, and conversion of underused commercial space to residential is a key part of the strategy.

New York City Mayor Mamdani's recently released 'Block by Block' housing plan, which aims to build 200,000 new affordable homes and preserve 200,000 over the next decade backed by a $22 billion capital investment, has influenced Central's thinking. Local officials are exploring comparable capital funds to subsidize below-market-rate units, though no dollar amount has been set in Central's draft.

What it means for residents

For Central residents, the changes could mean more housing options in established neighborhoods, particularly along transit corridors. Density allowances near light-rail stations and bus routes would increase, potentially shortening commute times for workers and reducing pressure on suburban fringe development. The affordable housing mandates would require developers to include units priced for households earning 60% to 80% of the area median income in most new projects of 10 units or more.

Existing homeowners may see property values affected as zoning changes allow infill development on previously single-family lots. City planners have held community meetings in several wards to explain the tradeoffs: more housing supply should moderate rent growth over the long term, but some residents have expressed concern about neighborhood character and parking impacts.

The plan also addresses office vacancy, a legacy of the COVID-19 pandemic. By easing rules for converting vacant commercial buildings into residential use, the city hopes to revitalize downtown. A similar approach in Portland, released in April 2026, specifically cited pandemic-driven work changes and high office vacancy as drivers of the regulatory update.

What happens next

The draft zoning amendment and affordable housing policy are now open for public comment through September. A series of neighborhood meetings are scheduled in each of Central's seven wards, with the first set for August 3 at the Central City Hall. The city planning board will hold a formal hearing in October before sending a final recommendation to the city council. If approved, the new rules would take effect in January 2027, with the first new affordable units expected to break ground by late 2027.