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Label:
Emergency ordinance
*Authorize conveyance of City-owned real property at 4931-4947 N Williams Ave and 20, 106, and 114 N Alberta St and financing not to exceed $11,400,000 to Strong AA Limited Partnership or a Community Development Partners/Self-Enhancement, Inc. affiliate for development of a new affordable housing project
Passed
The City of Portland ordains:
Section 1. The Council finds:
The Portland Housing Bureau (PHB) purchased 4931-4947 N Williams Avenue and 20, 106, and 114 N Alberta Street (referred to commonly as the “Strong Family Property”) using Interstate Corridor Tax Increment Finance District resources in 2019, as part of its North/Northeast Neighborhood Housing Strategy.
Per the North/Northeast Neighborhood Housing Strategy, the Strong Family Property was land banked to provide affordable housing opportunities for N/NE Preference Policy (Preference Policy) households.
The Preference Policy aims to address the harmful impacts of urban renewal by giving priority placement to housing applicants who were displaced, are at risk of displacement, or are descendants of households that were displaced due to urban renewal in North and Northeast Portland.
In 2022, PHB published a Metro Bond Opportunity Solicitation (M-BOS) inviting developers to submit proposals for affordable rental housing projects. The M-BOS offered the Strong Family Property for affordable housing development.
The Metro Housing Bond (Metro Bond) Measure 26-199 was approved by voters in the Metro region in 2018 authorizing Metro to distribute the Metro Bond funds to local jurisdictions to fund affordable housing.
The Portland Housing Bureau is charged with implementing the housing policies of the City of Portland (City) under City Council Ordinance No. 184329 including the Local Implementation Strategy for the Metro Bond approved by City Council Ordinance No. 190095 on August 12, 2020.
On June 16, 2023, PHB issued an Award Letter to Community Development Partners (CDP) and Self-Enhancement, Inc. (SEI) indicating the selection of their project to receive Metro Bond funds and/or ICURA TIF funds, along with development rights to the Strong Family Property.
CDP and SEI formed a limited partnership, Strong AA Limited Partnership (Developer), to acquire the site from PHB to develop a new 4-story, multifamily rental project known as Strong Family Apartments (Project). The Project consists of 75 affordable units in the Humboldt neighborhood.
Sixty-four (64) units in the Project will be affordable to individuals and families earning up to 60% of area median income (AMI) and 11 units will be affordable to those earning up to 30% AMI.
The Project consists of 21 one-bedroom units, 32 two-bedroom units, and 22 three-bedroom units. Fifty-four (54) units will be family-sized, two-bedroom or larger, comprising 72% of the total units.
All units in the Project are subject to the N/NE Preference Policy targeting households who have histories of displacement from North and Northeast Portland.
The Developer will enter into a regulatory agreement with PHB requiring affordability for 99 years and comply with additional City requirements. The 75 affordable housing units will count toward the City’s total unit production goals for the Metro Bond.
The Project will result in the conveyance of City-owned parcels to support the development of affordable housing.
- On July 8, 2024, the PHB Housing Investment Committee recommended approval of the use of Metro Bond funds, ICURA TIF funds, and conveyance of the Strong Family Property for the development of the Project.
NOW, THEREFORE, the Council directs:
- The Director of the PHB is hereby authorized to execute, amend, and modify a Disposition and Development Agreement and any other documents as may be required to convey the Strong Family Property to the Developer or an affiliate of Community Development Partners / Self-Enhancement, Inc. , subject to the approval as to form of such documents by the City Attorney’s Office.
- The Director of PHB is hereby authorized to execute, amend and modify any and all financing and related documents necessary to provide an amount not to exceed $11,400,000 to the Developer or a CDP/SEI affiliate, for the construction and operation of the Project, 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 by the Council.
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
- This Ordinance requests City Council approval:
- To convey the City-owned site located at 4931-4947 N. Williams Avenue and 20, 106, and 114 N. Alberta Street to Strong AA Limited Partnership or a Community Development Partners (CDP) / Self-Enhancement, Inc. (SEI) affiliate (Developer), and
- Of financing in an amount up to $11,400,000 consisting of $3,150,000 of Metro Housing Bond funds and up to $8,250,000 in ICURA TIF.
- PHB awarded development rights to the Developer for the site through the 2022 Metro Bond Opportunity Solicitation. The award included Metro Housing Bond funds and ICURA TIF funds in an amount of up to $11,400,000.
- The land conveyance and financing will allow the Developer to construct a new 75-unit, affordable rental housing project at the site, known as Strong Family Apartments (Project). Approval of the Ordinance will authorize the Director of the Portland Housing Bureau to execute a Disposition and Development Agreement (DDA) governing the terms of the conveyance and to advance the Project including the construction and operation of the development as affordable housing.
Financial and budgetary impacts
- The Metro Bond award of up to $3,150,000 is from the City of Portland’s eligible share of Metro Bond funds totaling $211,056,579.
- PHB will regulate and monitor the project for a term of 99 years.
- PHB will charge a fee over the life of the project to cover compliance monitoring costs.
- The Project has been approved for System Development Charge (SDC) waivers, totaling an estimated $1,664,544 in foregone City revenue.
- Costs to PHB to maintain the site (security, cleanup) will be eliminated in the FY 2024-25 budget after the Project reaches financial close, anticipated Q3 2024.
- PHB purchased the site for $6,800,000 with Interstate Corridor Tax Increment Financing resources in 2019. The property's value will be removed from the City’s accounts upon conveyance.
Community impacts and community involvement
Community impacts:
- Redevelopment of a vacant .97-acre site in a high-opportunity neighborhood.
- 75 units of affordable housing in north Portland, in the Humboldt neighborhood.
- The project is subject to PHB’s N/NE Preference Policy. Priority will be given to households who have histories of displacement from North and Northeast Portland due to harmful urban renewal practices.
- 11 (or 15%) of the units will be restricted to households earning 30% AMI or less and the remaining 64 units will be restricted to households earning at or below 60% AMI.
- 54 (or 72%) of the units will be family-sized (two and three bedrooms).
- Self-Enhancement, Inc. will provide resident services to help residents navigate social services and access community resources.
- The Project is on track to meet or exceed PHB’s required equity in contracting goals of 30% certified DMWESB-SDV firms for construction costs and 20% for professional services.
- The Project will employ strategies addressing climate resilience and sustainability. The Project will pursue Earth Advantage Certification, targeting a Platinum rating
Community involvement:
The Strong Family Apartments is part of a multi-site vision known as Alberta Alive. Co-developed by SEI and CDP, the Alberta Alive initiative aims to celebrate and strengthen Portland’s historically Black N/NE neighborhoods by providing affordable housing and supportive services. SEI with its deep ties to the community, leads the community engagement efforts for the Alberta Alive initiative, including the Strong Family Apartments.
SEI and CDP hosted a neighborhood meeting, inviting local neighborhood associations, businesses, school districts, and community members to review and provide input on the design and programming. Additionally, the project was presented to the N/NE Oversight Committee, where it received support and feedback that was integrated into the design process. A public notice for design review was also published to solicit community comments.
Unit Mix and Affordability
Project Overview: DDA and financing for future low-income affordable multifamily construction
Total Units: 75
- Permanently Affordable: 75 (11 at 30% AMI, 54 at 60% AMI)
- Unit Mix:
| Unit size | No. of units | 30% AMI | 60% AMI | Project-Based Vouchers | Permanent Supportive Housing (PSH) |
| 1 bedroom | 21 | 3 | 18 | 0 | 0 |
| 2 bedrooms | 32 | 5 | 27 | 0 | 0 |
| 3 bedrooms | 22 | 3 | 19 | 0 | 0 |
| Total | 75 | 11 | 64 | 0 | 0 |
100% renewable goal
The Strong Family Apartments is pursuing Earth Advantage Platinum certification. This project will contribute to the City’s goals to reach 100% of energy needs with renewable energy by 2050.
Financial and budget analysis
Analysis provided by City Budget Office
PHB awarded development rights to the Developer for the Strong site through the 2022 Metro Bond Opportunity Solicitation. The award included Metro Housing Bond funds and Interstate Corridor Urban Renewal Area (ICURA) TIF funds in an amount of up to $11.4 million. This Ordinance requests City Council approval of financing in an amount up to the $11.4 million, consisting of $3,150,000 of Metro Housing Bond funds and up to $8,250,000 in ICURA TIF. The Metro Bond award of up to $3,150,000 is from the City of Portland’s eligible share of Metro Bond funds totaling $211.1 million. PHB will charge a fee over the life of the project to cover compliance monitoring costs. The Project has been approved for System Development Charge (SDC) waivers, totaling an estimated $1,664,544 in foregone City revenue. Costs to PHB to maintain the site (security, cleanup) will be eliminated in the FY 2024-25 budget after the Project reaches financial close, anticipated Q3 2024. PHB purchased the site for $6.8 million with ICURA TIF resources in 2019. The property's value will be removed from the City’s accounts upon conveyance.