190539

The City of Portland ordains:

Section 1. The Council finds:

1. On behalf of the City of Portland, the Portland Housing Bureau (PHB) administers affordable housing programs using resources including Portland Housing Bonds (Portland Bonds) to support the development of affordable housing.
2.  The Division Transit Project’s Locally Preferred Alternative (LPA) adopted by City Council on December 7, 2016 included a goal of between “100-300 affordable housing units” to be developed in the vicinity. The Powell-Division Local Action Plan associated with the transit project identified a need for at least 300 affordable housing units in the corridor. In response to this need, PHB initiated a property search and through this identified the 3000 SE Powell Boulevard site. On August 16, 2017 City Council authorized PHB to acquire the site as part of the Division Transit Project, formerly known as the Powell-Division Bus Rapid Transit Project. PHB initially engaged Home Forward as an owner’s representative to redevelop the site as the Oregon constitution required the City to own projects developed with Portland Bonds.
3. An Oregon constitutional amendment in 2018 allowed leveraging of the Portland Bonds with other capital sources, after which PHB and Home Forward (HF) entered into an agreement for development of affordable housing on the site.  On May 21, 2019 PHB issued a reservation of funds to Home Forward awarding development rights to the 3000 SE Powell site and associated Portland Bond funding.
4. The Project is located at 3000 SE Powell Boulevard in the Creston-Kenilworth neighborhood and consists of 206 affordable rental units.
5. HF will acquire the site from PHB under a Disposition and Development Agreement for a nominal fee in exchange for a 99-year covenant to maintain the site for affordable housing and form a limited partnership, 3000 Powell  Limited Partnership (Borrower), to develop a new 4-story multifamily rental project. 
6. Thirty (30) Permanent Supportive Housing (PSH) units in the Project will receive additional funding for supportive services provided from the Joint Office of Homeless Services (JOHS) totaling up to $10,000 per year per unit. PSH units are intended to serve the homeless or those at risk of homelessness. All of the PSH units will have rental support from Project-Based Section 8 vouchers.
7. One hundred and thirty eight (138) units in the Project will be affordable to individuals and families earning up to 60% of median family income (MFI) and sixty-eight (68) units, of which thirty (30) are PSH, will be affordable to those earning up to 30% MFI.  The Project does not include any manager’s units.
8. The Project consists of 123 studios, 18 one-bedroom units, 59 two-bedroom units, and 6 three-bedroom units. Family-sized units, defined as two- and three-bedroom units, comprise thirty-one percent (or 65) of the total units.
9. The Borrower will enter into two regulatory agreements with PHB. The first agreement will be for 20 years to comply with the Portland Bond requirements.  The second regulatory agreement will be for 99 years to continue affordability requirements and comply with additional City requirements. 
10. The proposed Portland Bond funding leverages more than $48 million of other public and private financing contributed by Bank of America, Bank of America CDC, Impact Community Capital, the Oregon Housing and Community Services Department and other funders, and City development incentives in the form of System Development Charge exemptions.
11. On August 5, 2021 the PHB Housing Investment Committee recommended approval of the use of Portland Bond funds for development of the Project.

NOW, THEREFORE, the Council directs:

1. The Director of the Portland Housing Bureau is hereby authorized to execute, amend or modify a Disposition and Development Agreement and any other documents as may be required to convey the property Home Forward , subject to the approval as to form of such documents by the City Attorney’s Office.
2. The Director of PHB is hereby authorized to execute any and all financing and related documents necessary to provide an amount not to exceed $33,063,000 to the Borrower or a Home Forward affiliate for the construction and operation of the Project.
3. The Director of PHB is authorized to approve amendments or modifications to any and all financing and related documents, within the maximum amounts approved under this Ordinance, consistent with City housing policies, and subject to the approval as to form of such documents by the City Attorney’s Office.

Section 2.  The Council declares that an emergency exists because a delay in the City’s approval would impair the ability of the Project to meet the timeline required by other financing sources and would delay the Project and could affect the budget: therefore, this Ordinance shall be in full force and effective from and after its passage.