Committee refers eight foreclosure ordinances to council after years of code complaints; $432,000 in liens cited

The Portland City Council Finance Committee on Sept. 8 voted to refer eight foreclosure ordinances to the full council, asking that each be considered for foreclosure to collect delinquent city liens. City revenue and permitting staff told the committee the properties are vacant or in extreme disrepair, have chronic code violations, and have not responded to repeated outreach.

Thomas Lanham, revenue division director, and Kevin Foster, the city’s foreclosure prevention manager, said the foreclosure process is a last resort after years of attempts to engage owners and address fire, life and safety violations, graffiti, trash, and unauthorized encampments. Foster said the city’s foreclosure program began in 2016 and that referrals originate from Portland Permitting and Development when code violations go uncorrected.

Foster presented details on the eight properties the committee considered. He said the combined total of liens across the properties is 36 and the combined delinquent amount is $432,000. He described individual sites as follows (delinquent amount and summary from staff presentation):

- 1541 W. I. / SW Market Street (West of I-5): delinquent since 2024; $9,100 owed. Former medical office, vacant five years, fire damage from multiple fires, graffiti, trash and reports of unlawful occupants.

- 3821 NW Saint Helens Road: delinquent since 02/2024; $22,000 owed. Abandoned warehouse, graffiti, excessive trash, unlawful occupant camping in an RV; owner LLC listed as inactive with the Secretary of State.

- 5130 SE 804th Ave (Southeast 80 Fourth Ave in transcript): delinquent since 2020; $118,000 owed. Out-of-state owner; excessive trash and debris, unlawful occupants, unpermitted work, prior fire damage and numerous police calls.

- 8315 N Wayland Ave: delinquent since 02/2023; $38,000 owed. Referred to the Extremely Distressed Properties Enforcement Program; owner deceased and property in probate; son lives out of state and staff are negotiating a payment plan.

- 1810 SE Cesar E. Chavez Blvd and 1822 SE Cesar E. Chavez Blvd: delinquent since 2023; $65,000 and $34,000 owed respectively. Both owned by same LLC; single-family structures were demolished for an affordable housing project that remains incomplete and permits have expired; sites now vacant with overgrown vegetation and trash.

- 1140 SE 130th Ave: delinquent since 02/2008; $111,000 owed. Current owner listed as U.S. Bank following foreclosure; long history of code violations including driveway expansion without permits, abandoned vehicles and trash.

Lanham and Foster said staff have attempted to engage owners and that, where possible, payment plans or lien-reduction review can be offered after compliance. Bridget O'Callaghan, who manages the foreclosure legal work for the city, explained that property owners or recorded-interest holders have an opportunity to pay liens through the morning of a sale; any surplus after the city’s liens are satisfied would be returned to property owners or other recorded lienholders, such as mortgage lenders.

Councilor Novick moved to refer the listed ordinances (document numbers recited by the clerk) to council with a recommendation to pass; Vice Chair Pertal Guinee seconded. The committee took the referral as a block to save time; the clerk read the ordinance document numbers into the record. The committee noted that items 3 and 7 were referred back to the mayor’s office and were not included in the referral.

Staff emphasized that foreclosure is a last resort after lengthy enforcement efforts; Foster said the city prefers resolution through compliance, lien reduction review, or payment plans when owners engage. The list will move to the full council for formal ordinances and possible final action.