Adopt a supplemental budget for the Portland Housing Bureau for FY 2025-26

The ordinance amends the FY 2025-2026 Appropriation Schedule and allocates specified funds to existing City programs focused on rent and down payment assistance, eviction defense, landlord/tenant education, affordable housing development, social housing acquisition and development, and an allocation to the General Fund. These allocations are illustrated in Exhibits A and B of the Ordinance.Background:A November 2022 internal review process identified $20.7 million in unspent funds within the Portland Housing Bureau's Residential Rental Registration Program, funds that are typically used to provide landlord-tenant services, support, technical assistance, and public information about rental housing units in Portland. Program fees are deposited into the City's Housing Investment Fund, the purpose of which is described by City Policy FIN-3.11 as supporting "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." The Rental Services Office administers the funds for various purposes, provided the uses are related to the stated purpose of the Housing Investment Fund. In early 2026, City finance and Portland Housing Bureau staff identified unbudgeted balance in specified sub-funds within the Housing Investment Fund, including $19.7 million in the Short-Term Rental (0-60 nights) and the Short Term Rental 2%/Transient Lodging Tax sub-funds, $10.7 million in the Construction Excise Tax sub-funds within the Inclusionary Housing Fund, and $4.8 million in the River District Tax Increment Financing via Prosper Portland.The City Council held a work session on March 5th, 2026 to discuss the unbudgeted sub-fund balances and identify priorities for how the funds could be appropriated within the current fiscal year (FY 25-26). This ordinance translates those priorities into targeted, one-time allocations to housing stabilization, tenant protection and down payment assistance, and affordable housing and social housing development and acquisition programs within the City.

Decreasing rent burden on Portland households has net economic benefits by reducing the proportion of income spent on rent and increasing renters' ability to contribute in other ways to the local economy. Similarly, down payment assistance to tenants in a position to purchase a home supports wealth generation, and lowers barriers to entry for first-time homebuyers, ultimately increasing housing demand. The ordinance also allocates funds directly to two housing developments as well as to the acquisition of one or more properties for social housing, increasing affordable rental and potential ownership opportunities for lower and middle-income Portlanders.

Homelessness and housing insecurity in Portland are disproportionately experienced by Black, Native American, Pacific Islander, Latine, senior, single mother, and immigrant households, which have significantly lower median incomes and higher rates of poverty in Portland. This ordinance prioritizes rental assistance for low-income tenants facing eviction, as well as for individuals experiencing homelessness.A resolution directing the allocation of $20.7 million in unspent funds and two ordinances directing adoption of a supplemental budget yielded extensive public input at committee meetings and Council meetings between December 2025 and March 2026. Councilors received written and verbal testimony from numerous community-based organizations, including BIPOC communities, immigrant communities, affordable housing providers, housing justice advocates, social service organizations, landlord and tenant advocates, renters, homeowners, and persons who are experiencing or have experienced housing insecurity or homelessness.

The ordinance amends appropriations to the following funds for FY 25-26, as illustrated in Exhibits A and B of the ordinance:$40,400,000 to the Portland Housing Bureau Housing Investment Fund$4,800,000 to the Portland Housing Bureau Tax Increment Fund$10,700,000 to the Portland Housing Bureau Inclusionary Housing Fund$4,000,000 to the Fund and Debt Management General FundThe majority of funds appropriated through the ordinance will be administered by current staff within the Portland Housing Bureau. It is anticipated that current staffing levels can absorb the administration of these designated funding allocations.

Not applicable.