Should Portland appropriate grant award of $35 million for Section 108 Loan Guarantee Program?

This ordinance allows the City to appropriate $35,000,000 in funds awarded by the U.S. Department of Housing and Urban Development (HUD) for the Section 108 Loan Guarantee 2025 Legacy Challenge to support the creation of an affordable housing loan fund targeted to projects that create or preserve housing affordable to low- and moderate-income households. In June 2025, the City of Portland through PHB submitted an application to the U.S. Department of Housing and Urban Development (HUD) for the Section 108 Loan Guarantee 2025 Legacy Challenge for $35 million to support the creation of an affordable housing loan fund targeted to projects that create or preserve housing affordable to low- and moderate-income households. PHB had previously applied and been awarded Section 108 funds in 2009 and created a similar loan fund. In May 2026, HUD notified the City that our application was approved and sent a grant agreement for review.

The reviewed sources do not clearly identify every existing policy, service, contract, or obligation that would remain unchanged.

This proposal concerns other city business and requires action through Portland’s public legislative process.

The proposed Affordable Housing Loan Fund seeks to address Portland's need to add 38,000 units of affordable to households earning 0-80% AMI by 2045, as described in the City's 2023 Housing Needs Analysis. Alongside this expected need for new units, preservation efforts are critical to avoid displacement of low-income tenants and ensure housing production gains are not offset by loss of existing affordable housing. As a result, the legislation is expected to most directly impact all low-income households including those most vulnerable to displacement such as Black, Indigenous, and People of Color households; seniors; people with disabilities; and families with children. Funds will be made available to projects City-wide; however, projects may leverage local tax increment financing (TIF) resources from the Gateway, Central City, East Portland, and Cully TIF districts. The City's Section 108 loan proposal was informed by the intensive community engagement conducted for the Housing Production Strategy (HPS) and the 2021-2025 Consolidated Plan, as well as ongoing engagement with technical advisors and industry partners including other public agencies, developers/owners, lenders, and service providers. The priorities outlined in the Housing Production Strategy and Consolidated Plan were informed by years of prior community engagement and project-specific outreach. Outreach for the HPS included an online open house and survey for community members, as well as workshops and presentations with Community-Based Organizations and their members. Outreach for the Consolidated Plan followed the requirements outlined in the Consortium's Public Participation Plan and included two hearings on public needs and three Action Plan hearings. All events were advertised in the Portland Tribune, the Gresham Outlook, newsletters, email lists, and on the jurisdiction's webpages. Citizen participation was also encouraged via surveys and comment cards. Lastly, outreach for the Consolidated Plan included consultation with community services and housing partners.