Establish City Council’s priorities for the allocation of approximately $20,700,000 in unspent Rental Services Office funds and urge the Mayor to reflect these priorities in the Proposed Budget

WHEREAS, nearly half of Portland renters are cost-burdened and 24 percent are severely cost burdened, meaning they pay more than half their income toward rent, which is one of the strongest predictors of homelessness; and

WHEREAS, between 2021 and 2022, Portland rental prices increased by 39 percent, twice the national average, and during that same time, the number of people experiencing homelessness in Multnomah County rose by over 30 percent; and these rent increases compounded existing rent burden, pushing more households into eviction risk; and

WHEREAS, evictions across Portland—particularly for low-income households, immigrant and refugee families, and communities of color— are a worsening crisis in Portland. In 2019, 5,904 eviction cases were filed with Multnomah County; in 2024, there were 11,761 evictions filed. Preventing evictions can prevent homelessness, and access to legal counsel improves tenants' abilities to maintain their housing and get better outcomes in court —all of which are eligible uses of Rental Services Office funds under Ordinances 189086 and 189650; and

WHEREAS, Portland continues to face severe housing instability that is driving an increasing number of households into homelessness, and Multnomah County data shows that while approximately 1,100 people are housed each month, roughly 1,400 people become newly homeless, indicating that the inflow into homelessness exceeds the system's ability to house people; and

WHEREAS, federal policy shifts are expected to further intensify local housing instability, including projected HUD funding reductions—resulting in putting a minimum of 2,000 Portland-area households who rely on federal rental subsidies at imminent risk of losing their housing, potential disruptions to LIHTC (Low Income Housing Tax Credit)-funded housing development, and the loss of SNAP benefits for hundreds of thousands of Oregonians beginning in early 2026, all of which will reduce household income and increase eviction risk; and

WHEREAS, the Portland metro area is short more than 60,000 affordable and available units for people earning less than 30 percent of median income (approximately $26,000 annually), while the average rent in 2024 reached $1,677 per month, far exceeding the income of those living on minimum wage or disability benefits; and

WHEREAS, community-based organizations report that increased federal immigration enforcement has resulted in the detention or removal of family breadwinners, leaving Portland households suddenly unable to cover rent or basic needs and at imminent risk of housing loss; and

WHEREAS, traditional affordable housing development takes years from start of project to opening apartments to residents and we need to invest in solutions that keep and move people and families in housing more immediately; and

WHEREAS, the City of Portland already operates a set of proven, effective renter-stabilization programs—including the Rental Services Office, Bridge Funding, Eviction Legal Defense, and culturally specific stabilization partnerships—that prevent homelessness and keep residents safely housed, but these programs are under-resourced relative to community need; and

WHEREAS, investing in upstream renter stabilization is a fiscally responsible and evidence-based strategy that reduces homelessness, reduces public safety and sanitation costs, and minimizes the need for more expensive downstream interventions such as emergency shelter expansion; and

WHEREAS, the Portland Housing Bureau (PHB) has identified $20.7 million in Rental Service Office fees that need to be programmed and spent at the direction of City Council as outlined in a November 22, 2025 memo to Council from the Deputy City Administrator; and

WHEREAS, Ordinance 189650, "Annual residential rental unit registration fee to fund the Rental Services Office", requires that the Revenue Division deposit revenue from the fee into PHB's Housing Investment Fund (HIF) and that the revenue be administered by the PHB Rental Services Office (RSO), and further allows the Revenue Division to cover collection costs with fee revenue. City Policy Statement FIN-3.11, which is a binding City Policy, describes the HIF's purpose as follows: Support the City's housing initiatives, all of which serve to develop or preserve affordable housing in Portland or help low-and moderate-income individuals access affordable housing. These programs include affordable housing services and financial assistance, the Risk Mitigation Pool and fee-supported activities, such as the administration of City limited tax abatements and system development charge waivers. The RSO may use the funds for various uses so long as they are related to the stated purpose of the HIF.

NOW, THEREFORE, BE IT RESOLVED that the Portland City Council's shared intent is to slow the inflow into homelessness by prioritizing upstream, proven renter-stabilization investments that keep Portlanders housed and protect families from displacement or get them out of homelessness as quickly as possible; and

BE IT FURTHER RESOLVED that the City Council urges the Mayor to make allocations to the following investments to create and expand proven prevention programs that would be administered and managed by the Rental Services Office with an emphasis on prioritizing, funding to community-based organizations serving all Portlanders at risk of experiencing housing insecurity, including immigrant, refugee, Black, Indigenous, and People of Color (BIPOC), and linguistically isolated households; and

1. Rent Assistance for Tenants- New funding for flexible, short-term aid for households at risk of losing housing before facing eviction.
   1. Recommended funding amount: $4 million in FY 25-26, FY 26-27, and FY 27-28 which results in an increase of $500k for FY 25-26, $2 million for FY 26-27, and $1.5 million for FY 27-28.
2. Rent Assistance and Rapid Rehousing for Tenants Facing Eviction – Expanded funding for current Eviction Defense program that includes tenant legal services, rent assistance to cover non-payment amounts, and landlord-tenant mediation. Would include the addition of rapid rehousing funds to rehouse tenants facing eviction, ideally in units with rents that are sustainable for the household long-term;
   1. Recommended funding amount above what is currently budgeted annually: $2 million over FY 25-26, FY 26-27, and FY 27-28 which results in an increase of $500k for FY 25-26, $750,000 for FY 26-27,  and $750,000 for FY 27-28.
3. Rent Assistance for Individuals Experiencing Homelessness- New funding to provide rent subsidy and related financial assistance for households exiting homelessness into affordable vacancies. Prioritize working with providers who are currently facing state cuts to minimize a decline in capacity needed to get rent assistance to people currently in shelter This investment supports rent and move-in costs only and does not support staffing of shelter providers.
   1. Recommended funding amount: $3 million over FY 25-26, FY 26-27, and FY 27-28 which results in an increase of $1 million for FY 25-26, $1 million for FY 26-27, and $1 million for FY 27-28.
4. Eviction Defense Services – Administered by the Portland Housing Bureau for eviction defense contractors and new funding to launch a Right to Counsel Pilot in a limited geography and offer every household facing eviction in that geography access to legal assistance.
   1. Recommended funding amount: $1.9 million for FY 26-27.
5. Broadway Corridor Affordable Housing via Prosper Portland, enabling development of approximately 230 units.
   1. Recommended funding amount: $5.6 million for FY'26-‘27.
   2.  The $5.6 million appropriation is contingent upon receipt of matching funds from the State by December 31, 2026. If such matching funds are not secured by that date, the funds shall be reallocated to the rent assistance programs listed above in 1-3 (Rent assistance for tenants, individuals experiencing homelessness, and rapid rehousing for tenants facing eviction).
6.  Affordable Housing Development – enabling additional development of affordable housing units. 
   1.  Recommended funding amount of $1 million in gap funding for the Williams & Russell Project, enabling the development of 85 affordable units for rent, 20 affordable units for purchase. 
   2. Recommended funding amount of $1.5 million in gap funding for the Self Enhancement, Inc's NE 13th Ave permanently affordable homeownership project, enabling the development of an additional 18 units beyond the other 31 fully funded units.
7. Landlord/Tenant Education- Expanded funding to provide support for landlords implementing tenant protections (resources like education and guidance), expand landlord tenant education, support City development of a publicly available rental registry, and an informational campaign so tenants know their rights.
   1. Recommended funding amount above what is currently budgeted annually:  $200k for FY 26-27.
8. Affordable Housing Portfolio Stabilization- New funding to stabilize operations for nonprofit affordable housing providers in the N/NE Preference Policy catchment area with high vacancy rates, as well as emergency safety and security supports for providers throughout the City.
   1. Recommended funding amount: $750K for FY 26-27.
9. Downpayment Assistance for Tenants Ready to Purchase- New funding to offer downpayment assistance to tenants in position to purchase a home.
   1. Recommended funding amount: $750K for FY 25-26; and

BE IT FURTHER RESOLVED that by adopting this resolution, the Council signals its expectation that these renter-stabilization investments will be reflected in the Mayor's  Proposed Budget for the fiscal years indicated, and that if these priorities are not included, the Council will consider appropriate budget amendments and reallocations to ensure they are funded at the amounts recommended through the budget process.