After years of austere budgets, City Hall has scraped up some extra cash for the upcoming budget cycle. Some of it could go to building affordable housing, aiding homeless individuals, helping distressed renters and other initiatives.
In December, the Office of Management and Finance announced that revenue streams for the city were picking up, generating $6 million in ongoing program funding and $3.3 million in one-time spending. With extra cash on hand, Portland Mayor Charlie Hales told bureaus that, unlike past years, they wouldn’t have to make cuts. Hales also announced that bureaus could even get extra money if it was to be directed toward the mayor’s three priority areas: complete neighborhoods; homelessness and hunger; and emergency preparedness.
Seeking to get some of this extra money, the Portland Housing Bureau has submitted a package of proposals asking for $1.85 million in ongoing funding in addition to $3 million in one-time funding for programs aimed at Portland’s neediest.
Perhaps the most significant request in the package is for $3 million in one-time funding to build affordable housing in Portland. If approved, this funding would come just as another source of cash for the bureau is tapering off. The bureau’s largest source of direct funding, tax increment financing — a method of public financing used to subsidize infrastructure and redevelopment — is projected to drop by half in coming years.
PHB spokesperson Jaymee Cuti says that federal funds often have strings attached and money from urban renewal areas restricts where housing can be built. However, this fund, she says, could be used to make capital investments in affordable housing virtually anywhere in the city, particularly near jobs, schools or natural areas.
Commissioner Dan Saltzman, who oversees the PHB, says that the money, if approved, will be used to create or rehabilitate housing for people making 60 percent of the region’s median income or lower. He says that the bureau would prioritize the rehabilitation of existing housing. The funds will also likely target neighborhoods in Northeast and Southeast Portland, he says.
“I don’t have a specific neighborhood or two in mind, but it’s a huge need throughout the city,” says Saltzman.
John Miller, the executive director of the Oregon Opportunity Network, supports the PHB’s funding package, which he says is particularly welcome after years of budget cuts ushered in by the recession. His organization will be advocating for the PHB’s funding package during the budget process, he says. While he supports the request for more money for affordable housing, he is concerned that it might be used in expensive areas, which could eat up the funds more quickly.
As part of the package, the PHB is asking for $100,000 in one-time funds to support a series of clinics to be held in North, Northeast and East Portland operated by renters’ rights.
The PHB is also asking for $1 million in ongoing funding for housing-placement services and rent assistance to help homeless individuals move from the street and shelters into permanent housing. In total, the bureau hopes that the funding will help 250 individuals. Additionally, the PHB is asking for $350,000 in ongoing funding to increase capacity at homeless shelters, particularly those that need more capacity in the winter. Part of this money would go to 211Info system, which refers individuals to social services and would help coordinate response in the event of a natural disaster — to expand its capacity.
The requested funding package from the PHB also includes an ask for $500,000 in ongoing funding to reinstate programs to transition homeless youth to housing programs. The PHB expects that 70 youths will be served per year with case management and support. It expects 80 percent of served youths to move to permanent housing.
However, these are still just requests and could easily be modified or dropped during the budget process.
“I would be pleasantly surprised if we got the whole package through intact,” says Saltzman.
