Appropriate $2,500,000 from the Construction Excise Tax Sub-fund 225020 for homeownership development in District 2

The City of Portland ordains.Section 1.The Council finds:On June 29, 2016, the Council adopted Ordinance 87855, establishing a Construction Excise Tax to fund affordable housing initiatives from an Inclusionary Housing Fund, in response to Council's finding that the City had a critical need for housing affordable to households earning at or below 80% of the median household income. Portland City Code Section 6.08.130(C) allows Commercial Construction Excise Tax Revenue to be use for the production and preservation of affordable housing units at or below 60 percent median family income. Homeownership is a primary driver of household wealth creation, yet access to homeownership in Portland remains inequitable, particularly for Black households and other historically marginalized communities. The Williams & Russell site represents a historically significant location in North/Northeast Portland, where past displacement of Black residents has had lasting economic and cultural impacts. Self Enhancement, Inc. (SEI) is a trusted, community-based organization with a demonstrated track record of serving Portlanders, including Black youth and families and advancing economic opportunity. Targeted investment in homeownership development in high-displacement-risk areas is a necessary strategy to prevent further displacement, promote community stability, and support intergenerational wealth-building. The Council finds that allocating a portion of the Construction Excise Tax (CET) Sub-Fund for homeownership development is consistent with the Sub-Fund's purpose when structured to maintain long-term public benefit and potential reinvestment. Affordable housing homeownership projects located within the Interstate Corridor Urban Renewal Area that receive funding administered by the Portland Housing Bureau are subject to the N/NE Preference Policy.NOW, THEREFORE, the Council directs:The Council hereby appropriates $2,500,000 from the CET Sub-Fund 225020 within the Portland Housing Bureau budget.Funds shall be distributed as follows:$1,500,000 to Self Enhancement, Inc. (SEI) for homeownership development projects in District 2;$1,000,000 to the Williams & Russell development for homeownership development in District These funds shall be disbursed through execution of a grant agreement and associated documents (the "grant documents") that specify that the funds must be used solely for development costs associated with creating new homeownership units, including but not limited to predevelopment, construction, and related project costs and may impose affordability requirements.Funded projects must:Serve households earning at or below 120% of Area Median Income (AMI), prioritizing households earning between 60% to 80% AMI when practicable; andInclude strategies to increase access for first-time homebuyers; andEmploy culturally appropriate outreach and marketing to potential homebuyers.The requirements in Code Subsection 6.08.130(C) are hereby waived for the purpose of this Ordinance and Appropriation only.