Should Portland authorize conveyance of City-owned real property to Habitat for Humanity Portland/Metro East for the construction of True North project?

The City of Portland ordains.Section 1. The Council finds:On behalf of the City of Portland, the Portland Housing Bureau (PHB) administers affordable housing programs using resources including at times the disposition of real City owned property.In 2019, PHB on behalf of the City of Portland purchased an approximately 3-acre parcel of real property at and adjacent to 6631 N. Syracuse Street from the Portland Water Bureau, for purposes of redevelopment into an affordable homeownership opportunity to meet the N/NE Neighborhood Housing Strategy to acquire land for permanently affordable housing and address the community's strong desire to preserve property within the Interstate Corridor Urban Renewal Area (ICURA) for the development of affordable housing.City-owned real property consists of 11 (eleven) parcels and 1 (one) tax lot located at 6623 N/N Syracuse St.; 6631 N Syracuse St.; 6631 N/N Syracuse St.; 6634 S/N Oberlin St.; N Oberlin St.; 7235 N Minerva Ave; 6767 N/N Syracuse St.; 6767 N Syracuse St.; 6767 W/N Syracuse St.; 6702 W/N Syracuse St.; and 67020 W/N Syracuse St. Portland, OR 97203 (the "Property"). In September 2022, PHB made the aforementioned Property available as part of Notice of Funding Availability (NOFA), coupled with Metro Housing Bond and ICURA TIF funds, for the development of affordable homeownership. The NOFA required that the project include a minimum of 40 new units, with an average of two or more bedrooms per unit.PHB selected Habitat's application which proposed the construction of 50 new homes with unit sizes ranging from two to four bedrooms. PHB and Habitat executed a letter conditionally awarding the project $6,087,267 in Metro Housing Bond funds (including $137,267 in Program Development Fees) and $2,000,000 in ICURA TIF funds in addition to the disposition of real property located at and adjacent to 6631 N. Syracuse St.The Project is located in the University Park neighborhood and consists of 50 affordable homeownership units. Habitat will acquire the site from PHB under a Disposition and Development Agreement in exchange for a 60-year regulatory agreement recorded on the land to maintain the site for affordable housing in compliance with Metro Bond Requirements. PHB will also require the project to record an affordable housing covenant on each home to maintain affordability in perpetuity.Twenty-five (25) homes will be affordable to individuals and families earning up to 60% of median family income (MFI), and twenty-five (25) homes will be affordable to those earning up to 80% MFI at initial sale. After initial sale, all fifty (50) homes will be affordable to those earning up to 80% MFI.The Project consists of 20 two-bedroom units, 19 three-bedroom units, and 11 four-bedroom units. Family-sized units, defined as two-bedroom units and larger, comprise one hundred percent (or all 50) of the units.PHB's Housing Investment Council approved the financing of Metro Housing Bond and ICURA TIF funds and the disposition of real property on June 23, 2025, and recommended forwarding for approval to Portland City Administrator and Metro Chief Operating Officer.NOW, THEREFORE, the Council directs:Approve the conveyance of the Property to Habitat, the transfer of which will be executed by the City Administrator in accordance with Code Section 30.01.180 which authorizes the City Administrator to execute, amend or modify a Disposition and Development Agreement and any other documents as may be required to convey the property to Habitat, subject to the approval as to form of such documents by the City Attorney's Office. Section 2. The Council declares an emergency exists because a delay in the City's approval would impair the ability of the Project to meet the timeline required by other financing sources and would delay the Project and could affect the Project‘s budget and financing; therefore, this Ordinance shall be in full force and effect from and after its passage by the Council.