*Appropriate grant for $175,000 from State of Oregon Department of Land Conservation and Development for the Portland Housing Code Bonus Alignment Project
The City of Portland ordains.
Section 1. The Council finds:
- Bureau of Planning and Sustainability applied to State of Oregon Department of Land Conservation and Development (DLCD) for a 2023-2025 Housing Planning Assistance grant in the amount of $175,000 for the Portland Housing Code Bonus Alignment Project on July 31, 2023; and
- State of Oregon Department of Land Conservation and Development has notified the City of Portland that it will award a grant for the Portland Housing Code Bonus Alignment Project to Bureau of Planning and Sustainability in the amount of $175,000.
- In addition to grant funding, the Bureau of Planning and Sustainability and other City bureaus will utilize existing positions to manage and support this grant project.
- The Portland City Council shares DLCDs goals for smart planning that readies land for development, removes barriers to private investment, improves affordability and increases the range of types of housing units available in Portland.
NOW, THEREFORE, the Council directs:
- The City Administrator is authorized to execute a grant agreement with the DLCD in a form substantially similar to Exhibit A.
- The FY 2024-25 budget is hereby amended as follows:
GRANT FUND
Fund: 217
Business Area: PN
Bureau Program Expenses: $70,000
Section 2. The Council declares that an emergency exists because a delay would unnecessarily postpone the City’s ability to perform the activities authorized by the grant; therefore, this Ordinance shall be in full force and effect 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
The purpose of this legislation is to accept and appropriate a $175,000 grant from the State of Oregon to identify and propose additional incentives to increase needed housing production in mixed-use and multi-dwelling zones that account for 60% of Portland’s residential growth capacity. The Project seeks to align current affordable housing bonuses, while evaluating other potential bonus types and structures to achieve specific housing types, including affordable, family-sized units, age-friendly and accessible housing.
Following the adoption of the City of Portland’s first Housing Production Strategy, the City is beginning to implement the actions outlined. This grant allows City staff to further fulfil obligation for the on-going implementation of Goal 10 and related provisions. The result of this grant will be a legislative proposal to facilitate housing production, affordability, and choice where, and for who, housing is needed most through careful study and alignment of housing bonuses and incentives.
This grant project is part of the multi-year, multi-bureau effort to create a regulatory and code environment that promotes the development of needed housing. This ordinance will provide funding to support the work identified in the Housing Production Strategy, actions C.3. and F.1.
Financial and Budgetary Impacts
DLCD has awarded a $175,000 grant to the City for this project, which will be incorporated into the BPS FY2024-25 and FY 2025/2026 budgets under grant number PN000123.
This grant has no match requirement.
Economic and Real Estate Development Impacts
This resolution accepts grant funding in order to conduct a study to evaluate and prepare future proposed legislative action and does not have any direct economic and real estate development impacts at this time.
Community Impacts and Community Involvement
The acceptance of the grant will not directly or indirectly impact communities. The work resulting from this grant will include community discussions about creating additional incentives to facilitate increased housing production. Those discussions may include the topics of refinements or changes to the types of bonuses offered in order to align with Portland’s 20+year forecasted housing need.
This grant work will provide additional outreach to developer and impacted communities to create an awareness of the potential changes, educate and inform about the policy issues that are impacting development, and gather input on needed changes.
The adoption process for future code changes will undergo a separate legislative engagement process, ordinance and impact statement.
100% Renewable Goal
Not applicable
Budgetary Impact Worksheet
| Fund | Fund Center | Commitment Item | Functional Area | Funded Program | Grant | Sponsored Program | Amount |
|---|---|---|---|---|---|---|---|
| 217006 | PNCP000001 | 511100 | CDCPUDHE000000GC | Non-program | PN000123 | PN01230001 | $16,667 |
| 217006 | PNCP000001 | 514100 | CDCPUDHE000000GC | Non-program | PN000123 | PN01230001 | $8,333 |
| 217006 | PNCP000001 | 521100 | CDCPUDHE000000GC | Non-program | PN000123 | PN01230001 | $45,000 |
| 217006 | NCP000001 | 441100 | CDCPUDHE000000GC | Non-program | PN000123 | PN01230001 | $70,000 |
Financial and Budget Analysis
Analysis provided by City Budget Office
This action authorizes appropriation of $175,000 in state grant funding for the Portland Housing Code Bonus Alignment Program. Appropriation of funds would occur between the current (FY 2024-25) and upcoming (FY 2025-26) budget years. No matching funds or additional City resources are required as a result of this action.