*Authorize conveyance of City-owned real property located at 322 SW 11th Ave and financing not to exceed $7,152,500 to Community Partners for Affordable Housing or an affiliate for an affordable housing project

The City of Portland ordains: Section 1. The Council finds that: On behalf of the City of Portland, the Portland Housing Bureau (PHB) administers affordable housing programs using funding resource that include tax increment proceeds, Portland Housing Bonds, and the conveyance of City-owned real property to support the development of affordable housing. In 2016, the PHB acquired real property located at 322 SW 11 th Avenue (Property) in the South Park Blocks Urban Redevelopment Area (SPB URA) to preserve housing options in the downtown core. In the spring of 2019, PHB published a Bond Opportunity Solicitation (BOS) to invite developers to propose redevelopment of the site for affordable housing using Portland Bond Funds. On October 7, 2019 PHB issued an Award Letter to Community Partners for Affordable Housing, Inc (CPAH) indicating its selection for rehabilitation and redevelopment of the site using SPB URA Tax Increment Financing (TIF) funds and Portland Housing Bond funds. CPAH proposes to rehabilitate the 4-story residential building to consist of 66 residential units, all of which are single resident occupancy units (the Project). All 66 rental units will be regulated to be affordable to households earning at or below 30% of the area’s area family income (MFI). All units are targeted for Permanent Supportive Housing (PSH) with rental support from Federal Project-Based Section 8 vouchers and operational support from the Joint Office on Homelessness (JOHS), totaling up to $10,000 per year per unit. PSH units are intended to serve the homeless or those at risk of homelessness. PHB and CPAH or an affiliate intend to enter into a Disposition and Development Agreement (DDA) that sets forth the terms and conditions by which PHB will convey the Property, and the redevelopment, construction and long-term affordability requirements for the Project. PHB intends to convey the Property for zero dollars but the deed of conveyance will reflect an obligation for the Property to be used for affordable housing for 99 years. The Borrower will enter into regulatory agreements with PHB in accordance with City policies to maintain the affordability of the Project for 20 years to comply with the Portland Bond requirements and for 99 years to comply with additional City requirements . The proposed City funding leverages nearly $14 million of other public and private financing contributed by Umpqua Bank, Red Stone Equity Partners, CPAH and the Oregon Housing and Community Services Department. On October 28, 2021 the PHB Housing Investment Committee recommended approval of the actions contemplated by this Ordinance. NOW, THEREFORE, the Council directs: The Director of the Portland Housing Bureau is hereby authorized to execute, amend or modify a Disposition and Development Agreement and any other documents as may be required to convey the Property to CPAH or its affiliate, subject to the approval as to form of such documents by the City Attorney’s Office. The Director of PHB is hereby authorized to execute all financing and related documents necessary to provide an amount not to exceed $7,152,500 to the Borrower or its affiliate for the construction and operation of the Project. The Director of PHB is authorized to approve amendments or modifications to all financing and related documents, 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 delay the ability of the Project to meet the timeline required by other financing sources and would delay the Project and could affect the project’s budget and impact the availability of funds to complete the Project; therefore, this Ordinance shall be in full force and effective from and after its passage.