Housing bureau details bond‑funded production, preservation and acquisition strategies

The Portland Housing Bureau briefed City Council on Jan. 30 about recent production, preservation and acquisition activity supported by voter‑approved housing bonds, metro bond funds and other financing tools.

Director Helmi Hisrick told councilors that PHB has organized its work around “five P’s” including producing new housing, preserving vulnerable housing, preventing displacement, promoting equity and prioritizing environmental sustainability. She said the bureau leverages the Portland housing bond, the Metro housing bond, tax increment financing and other sources to support affordable housing development and long affordability terms—recent projects have 99‑year affordability covenants.

Hisrick said PHB has loaned approximately $469 million in bond proceeds over the last five years to create about 4,000 new affordable units, and that Portland and Metro bond funds have leveraged outside investment at roughly a 3‑to‑1 ratio. She said the 2016 Portland housing bond ($261.1 million) and the 2018 Metro housing bond (city portion roughly $211 million) have exceeded initial production targets: the Portland bond produced about 1,859 affordable homes across 15 projects and is fully committed; the Metro bond has produced over 2,150 homes and exceeded its initial projections.

PHB also described preservation and rapid acquisition strategies. The bureau cited a recent example in which it provided $9 million in bond or county‑passed funds to Home Forward to acquire a market‑rate property (the Caesar Apartments) for conversion to permanent supportive housing, and a $6 million loan to preserve affordability at the Belmont Dairy Apartments by extending affordability restrictions on 67 of 85 units for 99 years.

Hischrick said PHB has programs for renter services—eviction legal defense, landlord‑tenant mediation and a renter hotline reached via 311 or (503) 823‑1303—and home repair and lead‑abatement grants aimed at preventing displacement. She also highlighted goals for contracting with disadvantaged, minority and women‑owned small businesses, including a 30% contracting target for projects receiving PHB funding.

Councilors asked about PHB’s role in acquiring distressed or foreclosed commercial properties for conversion to housing; Hisrick said PHB has used acquisition NOFAs and currently has acquisitions in the pipeline and that acquisitions can be more cost‑efficient than new construction in some cases. She warned, however, that conversions sometimes present unforeseen costs and must be evaluated case‑by‑case. PHB said it is also evaluating land banking and other strategies but noted that some resources are drawn down and further acquisition will require identifying new funding sources.

PHB told councilors it is developing an online leasing system to make vacant units easier to find and track in real time, and said its overall utilization goal for funded units is 100%.