Housing bureau outlines $243 million budget; proposes pilot, cuts to down-payment and repair programs

Portland Housing Bureau Director Helmi Hysorek presented a high-level overview of the bureau's proposed FY25-26 budget to the City Council and said the bureau expects to spend about $243 million next fiscal year.

"The Portland Housing Bureau in fiscal year 25-26 has a $243,000,000 budget and 89 staff," Hysorek said. She said the proposed budget includes about $14.7 million for personnel, $24.8 million that will pass through to the Joint Office for homeless services, and approximately $203 million for affordable housing programs and capital.

Hysorek told council that the bureau received confirmation of its HUD federal entitlement at about $14.2 million, a roughly 1% reduction from prior years, and that a federal pro-housing grant had been approved. "We learned prior to coming here that our federal entitlement funds have been confirmed at 14,200,000.0, which is a 1% reduction from prior years," she said.

Decision packages and program changes: Hysorek reviewed proposed programmatic adjustments. The bureau proposes a home-share pilot targeted at lower-cost housing options, with particular attention to seniors, but said program design is not yet final. To meet budget reductions, PHB proposes cutting the down-payment assistance loan program by $400,000, which the bureau estimates would reduce supports by roughly three to five loans. The bureau also proposed a reduction to locally funded home repair grants that currently prevent displacement for low-income homeowners by supporting 10 to 20 units.

Hysorek emphasized that some reductions are to pass-through funds and that PHB does not control spending decisions for those pass-throughs. She noted the Joint Office passthrough to the county is proposed to decline by $1.6 million ongoing (about 5%) and $4.8 million one-time in the mayor's proposal; those amounts are budgeted as pass-throughs and the bureau said it is not the primary decision-maker for the Joint Office funds.

Anticipated outcomes: The bureau said it anticipates more than 600 new rental homes opened, preservation of about 50 affordable units through repair programs, approximately 400 new affordable homes for sale through homeownership programs, and expanded rental management and homeowner repair supports. Hysorek said multifamily development continues to be the largest spending line and is funded by a mix of TIF, housing bonds, PSF and federal grants.

What councilors asked: Councilors raised questions about eviction legal-defense funding; Councilor Greene praised a mayoral restoration of a proposed $400,000 cut to eviction legal defense but asked whether the restored amount meets demand. PHB replied the need exceeds current funding and that county funding coordination remains uncertain.

Bottom line: PHB said it is balancing federal and local funds, rolling down capital resources, and proposing targeted pilot programs and modest program cuts to meet a 1% bureau-reduction target. Directors emphasized federal entitlement confirmation and the new pro-housing grant as stabilizing elements for some program lines.