Committee presses Home Forward on vacancies and $30 million shortfall; legal options, consultant review discussed

The Committee of the Whole on July 15 spent extensive time questioning Home Forward leadership about rising vacancies, safety complaints at some properties and an estimated $30,000,000 unrestricted operating deficit that the agency says requires a long-term financial stabilization plan.

"We are now entering into our budget development process for FY27 and face a significant deficit of about $30,000,000," Michael Buonacore, interim executive director of Home Forward, told the committee, adding that the agency has issued an RFP for an organizational assessment that it expects to select by September and complete by January to help redesign operations and address financial challenges.

Buonacore and his team described the agency’s portfolio: more than 110 apartment communities across Multnomah County, with a small number of urban-core properties accounting for a disproportionate share of vacancies (Home Forward said eight properties accounted for about 47% of its vacancies). He outlined steps to address occupancy and habitability—targeted security measures, rental concessions, marketing, leasing agents, debt relief and staff retention incentives—and said the agency is increasing the visibility of board and financial reporting.

City Attorney Adrian Delgado explained the city’s legal relationship with housing authorities: housing authorities are independent public bodies created under state statute and the city’s primary power is appointing commissioners. Delgado said the council could pass a resolution to transfer statutory housing-authority powers back to council and, in extreme cases, could dissolve the housing authority, but those options are legally significant and carry procedural safeguards such as notice and opportunity to be heard.

Portland Housing Bureau interim director Quisha Lyd described how PHB’s funding and regulatory role intersects with Home Forward’s operations and said PHB has invested roughly $470 million in the city’s affordable housing portfolio through bond funds and TIF; she noted Home Forward administers a substantial voucher and rental-assistance program (Buonacore said Home Forward’s subsidy administration totals about $227 million). Portland Solutions staff outlined the mayor’s shelter and housing "strike team," which coordinates weekly on shelter and biweekly on vacancy reduction and tenant safety and set a 5.4% portfolio vacancy target by year-end.

Council members voiced a mix of system-level and organization-specific concerns. Several asked for immediate, property-level actions—security upgrades, better property management oversight, and clarity on screening and leasing practices—while others pressed for a portfolio-level analysis to distinguish economic vacancy (tenants unable to pay) from physical vacancy (units empty). Councilor Zimmerman emphasized public outrage over vacant publicly subsidized units and said the council must consider whether Home Forward’s current structure can be repaired.

Buonacore said Home Forward is reviewing its reporting, has a new interim CFO in place, and is taking steps to improve fiscal forecasting and board visibility; he also said the agency is under oversight by state and HUD audit processes. The committee did not take a formal vote on oversight actions but directed staff and Home Forward to return with more detailed analysis and asked for the consultant’s work product and updated financial reports at future meetings.

Public testimony stressed wraparound supports and services for residents; one speaker recommended focusing on outcomes—helping residents move from subsidized housing into greater stability and employment—not just unit counts.

The committee paused the discussion for a 10-minute recess during the presentation and agreed to continue the Home Forward conversation at a future meeting with additional materials and follow-ups on proposed organizational and fiscal changes.