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County agrees to IGA to enable city access to state MERL housing funds; commissioners press for targeting and impact data
Summary
Multnomah County authorized the chair to sign an intergovernmental agreement with Oregon Housing and Community Services to enable the City of Portland to apply for MERL funds targeting moderate‑income rental housing (up to 120% AMI); commissioners requested clarified targeting, vacancy data and per‑unit impact estimates before widespread use of tax‑exemption options.
The county authorized the chair to enter an intergovernmental agreement with Oregon Housing and Community Services (OHCS) to enable the City of Portland’s application to the state’s Moderate Income Revolving Loan (MERL) program, a new statewide financing pool created by SB 1537.
County and city presenters said MERL provides gap financing for rental projects that serve households up to 120% of area median income. Repayment can be structured through an assessment akin to a 10‑year property‑tax exemption, and projects in TIF districts or with PILOT agreements have alternative repayment pathways. County officials said administrative costs for the county (appraisals, annual reporting and program startup) are expected to be modest, roughly $5,000–$7,000 per 10‑year exemption, and gave a hypothetical example in which a $10 million project could result in about $31,000 in foregone tax revenue annually over 10 years (approximately $310,000 total), assuming certain taxable‑value assumptions.
Commissioners sought clarity on who benefits, expressing concern that broad 120% AMI eligibility could subsidize projects that primarily serve higher‑income households. Commissioner Jones Dixon asked whether the county could target benefits to larger families or lower AMI bands; presenters said the state’s statute and OHCS underwriting drive final approval decisions, though city underwriting will screen for financing gaps and Prosper Portland anticipated evaluating applicants to ensure projects truly need MERL financing.
The board approved the IGA to permit the city’s application process, while commissioners asked staff to return with vacancy data, estimated units produced per dollar of foregone revenue and other targeting metrics to inform future decision‑making.
County staff noted the statewide pot was revised to $55 million with a portion reserved for rural projects and estimated Portland could receive roughly 10%–15% of available funds depending on competition and eligibility.
