Work Session-Unbudgeted Housing Funds - 2026-03-05
Meeting Intelligence Preview
Meeting Summary
Portland City Council held a work session on March 5, 2026 to discuss allocation of approximately $106 million in previously unbudgeted housing funds. Council identified roughly $55.9 million as potentially allocatable, with $20.7 million in Rental Services Office funds having the most discretion. Discussion centered on balancing rent assistance, eviction prevention, affordable housing preservation through mortgage buy-downs, and potential general fund contributions, with no final allocations made during this work session.
Key Decisions (1)
Work Session on Unbudgeted Housing Funds Allocation
Council held a work session to discuss allocation of approximately $106 million in unbudgeted housing bureau funds. Staff clarified that only about $55.9 million is potentially allocatable by council, with $20.7 million in RSO funds having full discretion, $30.4 million in planned but uncommitted uses (CET and short-term rental funds), and $4.8 million in TIF River District funds. No votes were taken as this was a discussion session.
Development Activity (6)
Broadway Corridor Parcels 4A and 6
$5 million already committed ($2 million for Parcel 4A, $3 million for Parcel 6). Council discussed potentially adding $4.8 million from TIF River District funds for gap funding. Governor identified this as one of her single most important priorities for affordable housing and downtown construction.
Williams and Russell
Affordable housing project with homeownership component. State legislature passed $10 million in funding the previous day. Project identified as needing gap funding.
Urban Plaza
Funding would help leverage necessary conversation between owner and tenant. Listed as potential project for gap funding.
Self Enhancement Inc. Homeownership Program
Homeownership program identified for potential funding support.
Mount Tabor and Gateway Properties NOFA
PHB preparing to release production NOFA with two PHB-controlled sites paired with available funding.
Hollywood Hub
$5 million committed from Portland Housing Bond. Project in development pipeline.
Market Signals (6)
Housing Demand
Home Forward has approximately 14% vacancy rate in affordable housing units, with 1,800 units lying fallow across the affordable housing portfolio, indicating operational challenges rather than lack of demand.
Housing Demand
Multnomah County averages roughly 1,000 eviction filings for nonpayment of rent every month, indicating severe affordability crisis and potential displacement pressure.
Commercial Demand
Downtown Portland rental apartments in Slabtown area commanding $3,000 rents, with market not building apartments affordable to middle-income families in downtown areas.
Infrastructure
PHB forecasts significant decline in housing production funding over next five years due to wind-down of bond funds and diminishment of TIF revenues, with no new major revenue sources anticipated.
Sentiment
Governor identified Broadway Corridor as one of her single most important priorities for building affordable housing and activating downtown construction.
Housing Demand
60% AMI units are now essentially equivalent to market rent, suggesting public subsidy threshold may need adjustment to serve populations the private market won't reach.