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Council approves TIF and credit‑enhancement for 8‑unit Portland Housing Development Corp. project; critics question scale of affordability
Summary
Council approved a tax‑increment financing district and a credit‑enhancement agreement for an eight‑unit townhouse condominium project; six units will be income‑restricted, and the parcel's assessed value and projected revenue capture were presented to councilors and the public.
The City Council approved creation of an affordable housing tax‑increment financing (TIF) district and an associated credit‑enhancement agreement for a Portland Housing Development Corporation project at a neighborhood parcel described in the packet. The project will create eight townhouse‑style condominium units, six of which will be restricted to households at or below 120% of area median income (AMI), with two units unrestricted.
Staff described the income thresholds and purchase prices included in the application: for reference staff said 120% AMI corresponds to $109,050 for a two‑person household and $155,007.50 for a four‑person household (staff provided these AMI figures as part of the packet). The purchase prices staff listed were roughly $298,500 for a two‑bedroom unit and $358,000 for a three‑bedroom unit. Portland Housing Development Corporation is seeking gap financing from the Genesis Community Fund in the amount of $370,000 to help complete construction.
Staff estimated the total assessed value at project completion would be about $3,586,320 and presented estimates of captured revenue returned to the developer if the district remained in place for its maximum term; staff told council the estimated total captured revenue over the life of the district could be approximately $1.6 million and that non‑captured revenue deposited to the general fund was estimated at roughly $535,402 (annual averages shown in the packet).
A public commenter criticized the project as an inadequate use of land and said the parcel could have accommodated more units and deeper affordability; the commenter recommended pursuing larger‑scale social housing options. Councilors asked clarifying questions about homeowners association fees and noted that the project was approved by the city's planning board in February 2019 and therefore is not subject to changes in the inclusionary zoning ordinance adopted after that date.
The council moved and approved the two related orders (TIF district and credit‑enhancement agreement) by roll call. Staff noted the developer expects loan repayment in roughly 15 years under the proposed finance structure.
