Accept Understanding Portland Tax Increment Finance District Investment Impacts 2000-2022 Report
In the fiscal year 2021-22 City of Portland adopted budget, City Council approved a budget note directing the City Budget Office “to place $8 million – or 25 % of the total forecasted returning TIF (tax increment finance) resources as of February 2022 – in a policy set-aside for Portland Housing Bureau and $8 million – or 25% of the total forecasted returning TIF resources as of February 2022 – to Prosper Portland.”
The approved budget note further stated, “prior to any allocation of funding to Prosper Portland and the Housing Bureau in FY 2024-25, they are directed to engage in and complete a 3rd party evaluation of all TIF districts associated with expected returning TIF revenues in order for Council to better understand how outcomes aligned with the original intent of district creation.”
City Council provided funding to Prosper Portland to fund a third-party consultant, ultimately contracting with ECOnorthwest.
Following are the research questions that ECOnorthwest was asked to address:
- What might have happened in areas that are part of TIF Districts had TIF not been available?
- How did demographics change in TIF Districts versus other districts?
- How did TIF contribute to a faster or slower rise in rents?
- What unintended consequences occurred?
Among the major findings in the report:
- Relative to non-TIF comparison areas, TIF Districts saw:
- 6x the amount of total square footage of development
- 25x the amount of high-density development
- 4x the growth rate in housing production
- 5,300 units of TIF-funded affordable housing (46% of all affordable housing built in the city)
- 24,000 more jobs, which generally had 20% higher wages
- Neighborhoods with TIF Districts saw substantially more private investment, market-rate housing, and affordable housing than comparison areas. Rent grew more quickly in some districts, but that increase was slower than it might have been had there been less new construction. Overall, housing precarity in TIF Districts improved.
- BIPOC populations were impacted in distinct ways. The Albina neighborhood, with its concentration of Black residents, disproportionately felt the effects of Interstate TIF investments. This neighborhood saw an outmigration of its Black population, even as the other Districts’ BIPOC populations increased slightly faster than comparison areas. In the remainder of the city, by contrast, BIPOC populations grew faster than in TIF Districts or comparison areas.
Official Record (Efiles)
Impact Statement
Purpose of Proposed Legislation and Background Information
At the April 10, 2024, City Council meeting, staff from ECOnorthwest will share the findings of its analysis titled “Report on Understanding Portland Tax Increment Finance District Investment Impacts, 2000-2022.’
Financial and Budgetary Impacts
There are no financial or budgetary impacts as this is an informational update and does not require any action.
Community Impacts and Community Involvement
The ‘Report on Understanding Portland Tax Increment Finance District Investment Impacts, 2000-2022’ was primarily a quantitative analysis of existing sources and did not include community engagement specific to its findings and completion.
100% Renewable Goal
Does not apply
Financial and Budget Analysis
Analysis provided by City Budget Office
No fiscal impact to accept the report. The report may inform the allocation of returning General Fund revenues resulting from the expiration of former TIF districts to Prosper Portland and the Portland Housing Bureau, as well as the City’s future adoption of new TIF districts.