Elected-in-charge: Mayor Ted Wheeler
Bureau or Office Director: Kimberly Branam
We are tracking three reports and 11 recommendations
The audits assessed property management practices, urban renewal in the Lents neighborhood, and pandemic relief grants for small business.
Highlight from Last Year
We recommended Prosper Portland improve how it measures and reports progress on urban renewal activities in the Lents neighborhood. The agency took some steps to improve reporting and is in the process of hiring a contractor to provide updates on economic indicators at the city and neighborhood level. However, the agency said it does not expect its work to affect economic outcomes and delayed some work due to the pandemic.
To Do
Two recommendations remain open from our audit of property management practices. Prosper Portland has not yet finished renegotiating the operating agreement for Union Station to include reporting requirements and a compensation structure. It also has not yet upgraded its parking control system at Station Place Garage.
Prosper Portland: Disciplined property management needed to achieve future revenue goals, equitable outcomes
Report published November 28, 2017 | Follow-up report | Contact Elizabeth Pape
Our 2017 audit of Prosper Portland found that without income goals or equity plans, the agency had limited ability to rely on property management as a major source of income or overcome a legacy of gentrification and displacement. We recommended that Prosper Portland create financial and strategic goals for each property, document equity considerations, perform risk assessments, and adequately monitor third-party operated properties. After the audit, Prosper Portland improved fiscal management by documenting strategic purposes for each property, conducting risk assessments, and requiring more detailed contract provisions. It also documented equity assessments for each property. It performed a competitive solicitation for an operator of the Inn at the Convention Center and was in the process of upgrading parking and renegotiating an operating agreement at Union Station.
On this audit there were seven recommendations implemented and two in process.
Lents Urban Renewal: 20 years of investment with minimal evaluation
Report published February 12, 2020| Follow-up report | Contact Minh Dan Vuong
Our 2020 audit found that Prosper Portland's and the Housing Bureau's investments in Lents had mixed results when compared against the City's ambitious goals. Prosper Portland had not comprehensively assessed or reported how its investments totaling more than $200 million since 2001 changed Lents.
On this audit there was one recommendation in process.
Prosper Portland Emergency Grants: Standards needed to ensure program integrity
Report published May 12, 2021 | Contact Elizabeth Pape
Prosper Portland's Small Business Relief Fund provided a lifeline during the early days of the pandemic. Staff successfully delivered dollars to struggling businesses but in haste, short-changed program integrity. We make recommendations for building a stronger program the next time disaster strikes.
This is a new audit with one recommendation pending follow-up.
In Process Recommendation Details
We recommended renegotiating the operating agreement for Union Station to include reporting requirements and a compensation structure. Prosper Portland delayed signing a new agreement with the City until finalizing a new lease with Amtrak. The new lease may change the scope of work for the City if Amtrak becomes responsible for security. (Prosper Portland: Disciplined property management needed to achieve future revenue goals, equitable outcomes)
We recommended upgrading the parking control system at Station Place Garage. Prosper Portland solicited proposals to upgrade the system in November 2019 and anticipated installation by June 2020. (Prosper Portland: Disciplined property management needed to achieve future revenue goals, equitable outcomes)
We recommended that Prosper Portland begin to periodically measure economic results for the goals they set, update goals as needed, and report progress to the public. Prosper Portland took steps to improve reporting, but pandemic put some work on hold. In the past year, the bureau took some steps to meet our audit recommendation but stressed that they do not expect their programs to affect broad economic results. Prosper postponed the reevaluation of goals and economic analysis to prioritize emergency relief to businesses due to the Covid-19 pandemic. Prosper is now seeking a contractor to begin in Fiscal Year 2021-22 to provide regular updates on economic indicators at the city and neighborhood level. The agency plans to engage with Lents stakeholders in summer 2021 to determine future priorities. Prosper and Housing published a Lents Five Year Action Plan Close-Out Report and presented it to various groups before the shutdown began in 2020. (Lents Urban Renewal: 20 years of investment with minimal evaluation)
Implemented Recommendation Details
We recommended developing strategic purposes for each property and income goals as outlined in the draft business plan. Prosper Portland’s Board approved property plans for real estate in September 2019. The plans include strategic purposes and income goals. (Prosper Portland: Disciplined property management needed to achieve future revenue goals, equitable outcomes)
We recommended amending the financial investment policy to require the committee to regularly review all real estate holdings for potential financial return, even those without pending decisions. Prosper Portland’s Board directed the financial investment committee to review the financial performance of properties at least twice per year. (Prosper Portland: Disciplined property management needed to achieve future revenue goals, equitable outcomes)
We recommended performing and documenting risk assessments for each income generating property. Prosper Portland conducted market risk analysis on 10 of its income-generating properties and determined all to be low risk except for one medium-risk property. (Prosper Portland: Disciplined property management needed to achieve future revenue goals, equitable outcomes)
We recommended competitively soliciting an operator for the Inn at the Convention Center if Prosper Portland decided to continue ownership. Prosper Portland solicited proposals for an operator for the Inn at the Convention Center in the Fall of 2018. The Agency reviewed three proposals and selected the operator it considered to provide the most value. (Prosper Portland: Disciplined property management needed to achieve future revenue goals, equitable outcomes)
We recommended developing contract provisions related to budgeting, reporting, and protecting physical assets that reflect the level of risk. Prosper Portland is amending contracts to add these provisions, including new parking management contract and a draft property management contract. Existing contracts have not been amended, but contracts drafted since March 2018 have included the provisions. (Prosper Portland: Disciplined property management needed to achieve future revenue goals, equitable outcomes)
We recommended creating a monitoring program for each income generating property tailored to contract provisions. Prosper Portland has begun to monitor properties in compliance with contract provisions. Adoption of a new module in its asset management system in March 2020 will allow it to monitor properties more closely and routinely. (Prosper Portland: Disciplined property management needed to achieve future revenue goals, equitable outcomes)
We recommended documenting equity assessments for each property in the portfolio. Prosper Portland conducted equity assessments and provided documentation. (Prosper Portland: Disciplined property management needed to achieve future revenue goals, equitable outcomes)
Pending Recommendation Details
We recommend that Prosper Portland create procedures for future Prosper grant programs that will ensure that staff implement adopted program standards or officially change them prior to implementation. (Prosper Portland Emergency Grants: Standards needed to ensure program integrity)
Data Notes
At the end of every audit report, we issue a series of recommendations intended to make programs work even better. This report includes the status of Bureau recommendations since 2018, which was the beginning of our new follow-up process. We prepared it with a few audiences in mind:
- City Council can use it to identify bureaus that may need additional resources or support in order to implement recommendations.
- Bureau directors can use it to assess bureau performance and to determine if any changes in policy or procedure are necessary.
- Bureau management and staff can use it to track recommendation status across audits to develop work plans and priorities.
- General public can use it to monitor the status of recommendations related to topics of interest and to compare performance across bureaus.
This report includes recommendation status as of December 31, 2021.
Translated reports
Reports from this year and most of 2021 are available in four languages: Spanish, Vietnamese, Chinese, and Russian. We are translating new reports as they’re released, but older reports may not be available in a language other than English. If you would like to request a translated version of a report, please contact Leslie Chaires.
Links
- Prosper Portland: Disciplined property management needed to achieve future revenue goals, equitable outcomes
- Lents Urban Renewal: 20 years of investment with minimal evaluation
- Report Link https://www.portlandoregon.gov/auditservices/article/753641
- Follow-up Link http://www.portland.gov/year1Lents
- Prosper Portland Emergency Grants: Standards needed to ensure program integrity
- Report Link https://www.portland.gov/emergency-grants-audit