Councilors Avalos, Dunphy, Green, Morillo Introduce Ordinance to Keep Portlanders Housed

Portland, OR -Today Councilors Candace Avalos (District 1), Jamie Dunphy (District 1), Mitch Green (District 4), and Angelita Morillo (District 3) announced the introduction of their ordinance to fund programs and policies that prevent homelessness and increase affordable housing. The Keep Portland Housed ordinance allocates close to $56 million in unbudgeted Portland Housing Bureau (PHB) funds that were disclosed in recent months.

After an internal PHB review of Rental Services Office finances conducted last year foundclose to $21 million in unspent funds that had accumulated over the past several years, PHB, Budget Office and City Attorney's Office teams engaged in a comprehensive review that identified a total of approximately $106 millionin unbudgeted housing funds. During a March 5 work sessionwhere councilors discussed the potential uses of the available housing funds, it was further clarified that only some funding in the total $106 million was truly flexible, while other sources already had planned uses.

The Keep Portland Housing ordinance builds on previous Council conversations about the unbudgeted housing funds. It prioritizes policies and programs that help people stay in the homes they already have, preserve existing affordable housing units and construction opportunities, and support future affordable housing projects. Notably, the ordinance finances a debt buy-down program that could permanently lower rents for tenants in several properties.

"Previous fragmented housing strategies haven't worked to meet the scale of need, and today we're seeing the results: more people are becoming homeless than we can house in our region," said Councilor Avalos. "As Housing Chair, I've been working with my colleagues to create a plan that actually meets the moment and addresses the whole housing system - upstream, midstream, and downstream. The Keep Portland Housed ordinance takes a full approach to the homelessness and housing crisis, keeping people in their homes, stabilizing affordable housing, and building the foundation of a more just housing system."

"While every level of government is slashing their budgets, these previously unbudgeted Housing Bureau funds are an opportunity to help those struggling the most with housing security," said Council President Dunphy. "Healthcare and housing have a lot in common: an ounce of prevention is worth a pound of cure. Prevention works. While the amount of money is just a drop in the bucket compared to the enormous need in our community, it's a meaningful step toward meeting this moment of crisis."

"This is a generational opportunity to use these one-time dollars to set ourselves on a path towards truly affordable housing for all," said Councilor Green. "This package includes significant investments in programs proven to keep people housed now, and represents a major step towards a social housing model that can address our affordability crisis in the long-term."

"We are at a crossroads: we can keep throwing money at the same band-aids that temporarily stop the bleeding caused by a structurally flawed housing market, or we can make strategic investments grounded in proven solutions," said Councilor Morillo. "At a time when wealth inequality is at record highs, we owe it to the people of Portland to choose the path that delivers real stability and resilience. We can fix this housing crisis, by both responding to immediate need and seizing this opportunity to lay the groundwork for social housing that provides lasting affordability. We simply need the courage to do so."

Specifically, the Keep Portland Housed ordinance allocates approximately $56 million in unspent housing funds towards:

1. Rent Assistance (total $9 million):
   1. $5 million in new funding for flexible, short-term aid for households at risk of losing housing before facing eviction.
   2. $2 million in expanded funding for rent assistance and rapid rehousing for tenants facing eviction. Expanded funding for current Eviction Defense program that includes tenant legal services, rent assistance to cover non-payment amounts, and landlord-tenant mediation. Will include the addition of rapid rehousing funds to re-house tenants facing eviction.
   3. $2 million in new funding for rent assistance for individuals experiencing homelessness. Funding to provide rent subsidies and related financial assistance for households exiting homelessness into affordable vacancies. Prioritize working with shelter providers who are currently facing state rent assistance cuts to minimize a decline in capacity needed to get rent assistance to people currently in shelter. This investment supports rent and move-in costs only and does not support staffing of shelter providers.
2. Right to Counsel Pilot/Eviction Defense:
   1. $1.9 million in new funding for eviction defense services administered by the Portland Housing Bureau for eviction defense contractors and Right to Counsel Pilot. New funding to launch a Right to Counsel Pilot in a limited geography and offer every household facing eviction in that geography access to legal assistance.
3. Debt Buy-Down:
   1. $8.8 million in funding to Portland Housing Bureau to administer operating support, including debt buy-down, to enhance the preservation, access, affordability and living experiences of residents in non-market housing and improve the stability of housing providers and the City's affordable properties.
4. Landlord/Tenant Education:
   1. $200,000 in expanded funding to provide support for landlords implementing tenant protections(resources like education and guidance), expand landlord tenant education, and an informational campaign so tenants know their rights.
5. Downpayment Assistance for Tenants Ready to Purchase:
   1. $800,000 in new funding to offer downpayment assistance to tenants in position to purchase a home.
6. General Fund Allocation:
   1. $4 million from the Transient Lodging Tax to the general fund.
7. Broadway Corridor:
   1. $5.6 million in new funding for Broadway Corridor, Parcel 6.
8. Affordable Housing Development:
   1. $3 million in gap financing for William & Russell, Self Enhancement Inc., and Urban Plaza.
9. Social Housing Acquisition:
   1. $10 million in new funding for direct acquisition of one or more properties for social housing, permanent public ownership.
10. Notice of Funding Availability:
    1. $12.6 million shall remain unallocated at this time and is intended to support a future Notice of Funding Availability (NOFA) for housing development.
    2. The Portland Housing Bureau, in coordination with Prosper Portland, shall return to Council with a proposal outlining the structure of the NOFA process, including options for supporting social housing development and/or acquisition.

The full text of the ordinance can be read here. A summary of the ordinance can be read here.