Portland approves $56 million housing spending plan

Portland city council approved a $56 million housing spending plan on an 8-4 vote after staff discovered about $106 million in unspent housing bureau funds; roughly $56 million was available for new initiatives and will fund a loan program, rent assistance, debt relief and a transfer to the general fund.

Portland city council approved a $56 million housing spending plan in an 8-4 vote. The resources became available after staff identified about $106 million of unspent housing bureau funds that had accumulated over several years. Because some of that money was restricted, the council had about $56 million to allocate amid ongoing housing and budget pressures. Key facts: - The proposal was moved unanimously through the newly formed Housing and Permitting Committee the day before the council vote. - The approved allocation includes nearly $22 million for a new loan fund to support housing construction, preserve affordable units and create government-owned social housing. - The plan sets aside roughly $9 million for rent assistance, about $9 million to pay down debt of affordable housing landlords in exchange for lower rents or improved security, and $8.6 million to the city's general fund. - A February memo from city administrator Raymond Lee reported that funds came from fees on short-term rentals, programs that no longer exist, and risk mitigation funding under the Housing Investment Fund, and identified prior gaps in spending and oversight. Summary: The allocation directs funding toward construction loans, rent assistance, landlord debt relief and a transfer to the general fund, providing new resources while the city faces housing and budget challenges. Undetermined at this time.