AFFORDABLE HOUSING TAX INCREMENT FINANCING SET ASIDE POLICY
Binding City Policy
Section 1. The Council finds:
1. The City of Portland is experiencing a housing affordability crisis, renters are facing some of the highest month over month rent increases in the nation, and homeownership opportunities are limited for many moderate income families.
2. The Tax Increment Financing Set Aside for Affordable Housing policy sets an aggregate citywide minimum, not a maximum, percentage of urban renewal funds that shall be used for affordable rental housing and homeownership.
3. The Comprehensive Plan Housing Policy provides the overall policy framework for City housing goals, programs, and funding decisions.
4. The City of Portland consolidated the housing functions that existed at the City and Portland Development Commission (PDC) through Ordinance No. 182465 on January 7, 2009, and established the Portland Housing Bureau (PHB).
5. PHB is responsible for implementation of the City of Portland’s housing policy, Portland Policy Document HOU-1.04.
6. The City of Portland has adopted and is in the process of adopting policies and plans to address the need for affordable housing including: the 2035 Comprehensive Plan; the Central City 2035 plan, and subsequent quadrant plans; the East Portland Action Plan; A Home for Everyone; the N/NE Neighborhood Housing Strategy; No Net Loss for Affordable Housing in the Central City, the Affordable Housing Preservation Ordinance; and the Fair Housing Plan.
7. Affordable housing for working families, people with disabilities, seniors, and low income households earning at or below 80% MFI is a high priority for the City of Portland as the Portland Housing Bureau implements its equity agenda and Fair Housing Action Plan.
8. According to the October 2015 State of Housing Report in Portland, the City is not meeting production goals for units at 0 to 60% MFI, due in part to a lack of available resources. A family of three people at 60% MFI make $39,720.
9. According to ORS 457.085 (3), urban renewal plans, including tax increment fund (TIF) expenditures, must comply with the City’s Comprehensive Plan and adopted Economic Development Plans.
10. According to ORS 457.095 and 457.220, City Council approves each urban renewal plan for a new urban renewal district and substantial amendments to each urban renewal plan.
11. Every fifth year of implementation, the adopted policy requires City Council and PHB to conduct a thorough review of the policy and consider changes to the policy, if necessary.
12. PHB, on behalf of City Council and in concert with PDC, has conducted a policy performance review.
13. Since the policy’s adoption, over $275 million in Tax Increment Financing Set Aside dollars have been directly invested in the development and preservation of affordable housing units and community facilities serving families, seniors, and people with disabilities.
14. Proposed revisions to the policy will increase set aside resources for affordable housing rental housing, homeownership, and home repair.
NOW THEREFORE, The Council directs:
a. As of July 1, 2015 the Tax Increment Financing Set Aside for Affordable Housing should be raised from an aggregate citywide minimum of 30% to an aggregate citywide minimum of 45%.
b. The City Council hereby adopts the recommended changes to the Tax Increment Financing Set Aside for Affordable Housing Policy shown in Exhibit A, the Tax Increment Set Aside for Affordable Housing Implementation Plan in Exhibit B, and the Tax Increment Financing Set Aside for Affordable Housing Proposed Income Guidelines in Exhibit C.
c. The Housing Bureau to engage communities within each affected urban renewal area and community-wide organizations in a discussion regarding the implementation of the additional resources. Based on community input and taking into account the unmet goals in each urban renewal area, the Housing Bureau will prepare a recommendation for program implementation which will be reviewed by City Council during the City’s budgeting process.
d. This ordinance is binding city policy.
Section 2. The Council declares that an emergency exists because there is a declaration of a housing emergency; therefore, this ordinance shall be in full force and effect from and after its passage by the Council.
Ordinance No. 180889, passed by City Council April 12, 2007 and effective May 12, 2007.
Amended by Ordinance No. 185007, passed by City Council November 16, 2011 and effective December 16, 2011.
Amended by Ordinance No. 187242, passed by City Council July 1, 2015 and effective July 31, 2015.
Amended by Emergency Ordinance No. 187415, passed by City Council and effective October 28, 2015.
Renamed by Housing Bureau from "Income Guidelines for Affordable Housing Tax Increment Financing Set Aside Policy" August 2, 2017.