*Authorize payment to Home Forward Development Enterprises Corporation for an option agreement securing site control of southern portion of 3032 SE Powell in amount not to exceed $727,099

The City of Portland ordains: Section 1. The Council finds: On behalf of the City of Portland, the Portland Housing Bureau (“PHB”) administers affordable housing programs using resources, including federal pass-through Community Development Block Grant and Portland Housing Bond funds, to support the development of affordable housing. On May 21, 2019, PHB issued a reservation of funds (ROF) to Home Forward (“HF”, “Owner”) indicating their selection as the developer for a new affordable housing project located at 3000 SE Powell, a site currently owned by PHB. Adjacent to the city-owned site is a parcel at 3032 SE Powell (3032) that is currently owned by HF, which they acquired to facilitate developability of the 3000 SE Powell (3000) site. 3032 site is split zoned and will undergo a lot line adjustment. The northern portion is CE zoned and will combine with 3000 into one site to complete the development of the 3000 SE Powell project. The 3032 southern portion is zoned R2.5 which is incompatible with higher density multifamily rental housing and PHB desires to secure control of the portion for future development of an affordable multifamily, home ownership project. PHB has elected to secure site control of 3032 southern portion through an Option Agreement. HF has agreed to hold the site for a period of up to seven years for the future development and to convey the land for $1 to the developer to whom PHB awards development rights through a future home ownership solicitation at a future date. PHB and the HF subsidiary Home Forward Development Enterprises Corporation, upon approval, will execute an Option Agreement secures PHB site control for a price of $727,099 (the “Option Price”). On August 5, 2021, the PHB Housing Investment Committee recommended approval of funding for the site. NOW, THEREFORE, the Council directs: The PHB Director is hereby authorized to execute the Option Agreement and to enter into any and all agreements related to the transaction, subject to the approval as to form of such documents by the City Attorney’s Office. The PHB Director is further authorized to approve amendments or modifications to the Agreement or other related agreements within the maximum amounts approved under this Ordinance, consistent with City housing policies, and subject to the approval as to form of such documents by the City Attorney’s Office. Section 2. The Council declares that an emergency exists because a delay in the City’s approval would impair the ability of the Project to meet the timeline required by other financing sources and would delay the Project and could affect the budget; therefore, this Ordinance shall be in full force and effective from and after its passage.