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Label:
Ordinance
Authorize the Portland Housing Bureau to charge direct, indirect, and administrative costs to bureau funds for effective and consistent administration of housing policy and programs
Passed
The City of Portland ordains:
Section 1. The Council finds:
- The Portland Housing Bureau is charged with administering housing policies and programs in the City, including but not limited to funding the production and preservation of affordable rental housing, increasing and stabilizing homeownership, preventing houselessness and displacement, administering development incentives, and regulating and assisting landlords and tenants in the rental housing market.
- The Portland Housing Bureau administers funds from various local funding sources, mainly restricted for particular purposes, including City, state, federal, and other funds allocated to the Portland Housing Bureau’s budget.
- Allowing the Portland Housing Bureau to charge direct and indirect costs, including administrative costs to the bureau funds, will support its operation to achieve the City’s housing goals through policies, programs, and activities.
NOW, THEREFORE, the Council directs:
- The Portland Housing Bureau is hereby authorized to use the bureau’s funds on direct and indirect costs, including administrative costs, associated with implementing all programs administered by PHB to further the City’s housing policies, programs, and activities.
Official record (Efiles)
An ordinance when passed by the Council shall be signed by the Auditor. It shall be carefully filed and preserved
in the custody of the Auditor (City Charter Chapter 2 Article 1 Section 2-122)
Passed by Council
Auditor of the City of Portland
Simone Rede
Impact Statement
Purpose of proposed legislation and background information
- The Housing Bureau administers funds from various local funding sources, mainly restricted for particular purposes (special revenue funds).
- All of the funding sources require extensive administration activities.
- Allowing the PHB to charge direct and indirect costs, including administrative costs, to all of the Bureau’s funds, will greatly increase the stability of its administrative, compliance, and risk mitigation activities in all of its programs and activities.
- The proposed legislation does not change any specific City policies.
Financial and budgetary impacts
- This legislation does not involve long-term financial impacts to the City. It is concerned with the definition of expenses across its existing funding sources.
- The action will change appropriations as follows: A percentage (up to 20% similar to what applies to federal grants) of gross revenue funding source will be defined as an administrative or indirect expense (which is calculated by the Central Budget Office) category. This change will take place after internal bureau analysis in the FY24-25 budget cycle and going forward.
- This legislation will not change current and future revenues, including dollar amounts and funding sources.
- This legislation will contribute to greater stability of current and future staffing levels but does not call for any changes to those staffing levels.
Community impacts and community involvement
- This internal budgetary tool will support PHB's operation to achieve the City’s housing goals through policies, programs, and activities provided to the community.
- PBH’s programs and operations, which would be positively served by this change, are subject to extensive community outreach and oversight.
100% renewable goal
This action does not increase or decrease the City’s total or renewable energy use.
Financial and budget analysis
Analysis provided by City Budget Office
This legislation formalizes a new framework for the Portland Housing Bureau to be implemented in FY 2024-25 and beyond. Allowing the bureau to charge direct and indirect costs, including administrative costs, to all of the bureau’s funds, is expected to increase the stability of its administrative, compliance, and risk mitigation activities in all of its programs and activities. Formerly, these indirect and administrative costs have been paid for by the bureau’s Tax Increment Financing and housing bond resources. The action will change how such indirect and administrative costs are charged as follows: A percentage (up to 20%, similar to what applies to federal grants) of gross revenue funding sources will be defined as an administrative or indirect expense, which is calculated annually by the bureau and the City Budget Office.