Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Housing Finance topic
No spam. Unsubscribe anytime.
Committee forwards $35 million HUD Section 108 loan appropriation to council
Summary
The committee recommended full council passage of an ordinance to appropriate a $35,000,000 HUD Section 108 loan award for an affordable housing loan fund aimed at projects serving households earning 0–80% AMI; members pressed staff on underwriting, repayment risk, and program design.
City grants staff told the committee that HUD notified the city of a $35,000,000 Section 108 affordable housing loan award that the Portland Housing Bureau plans to use for acquisition, rehabilitation and preservation of regulated affordable housing. "HUD notified the city of the Section 108 affordable housing loan fund award to the city in the amount of $35,000,000," Carrie Mosden said during her presentation.
PHB staff said the loan fund will target projects serving households at 0–80% of area median income and expects to fund a pipeline of projects over a five‑year period; the first loan may close as early as late 2027, with repayment terms running roughly 2027–2052 per the HUD agreement. Staff cautioned the committee that Section 108 is a financing tool (a loan guarantee) rather than a grant to the city, and the city remains ultimately responsible for repayment.
Members asked about program design, outreach, and how the loan fund will complement existing local resources. Amanda Sall of the Portland Housing Bureau said staff plan to prioritize preservation projects and to issue a solicitation that sets priorities and invites proposals: "Initially, we will focus the funding on preservation of existing affordable housing projects because that's where we're seeing the most need in the community right now."
Councilors also pressed on underwriting and risk mitigation, including a plan to set aside a portion of future CDBG entitlement as a reserve to cover potential repayment gaps. After questions, Chair Avalos moved the ordinance to full council with a recommendation to pass; roll call recorded five 'Aye' votes.
The ordinance and the bureau's forthcoming solicitation will return to council with staff recommendations on program rules, underwriting standards and solicitation criteria.
