Authorize the Portland Housing Bureau to charge direct, indirect, and administrative costs to bureau funds for effective and consistent administration of housing policy and programs

The Housing Bureau administers funds from various local funding sources, mainly restricted for particular purposes (special revenue funds). All of the funding sources require extensive administration activities. Allowing the PHB to charge direct and indirect costs, including administrative costs, to all of the Bureau’s funds, will greatly increase the stability of its administrative, compliance, and risk mitigation activities in all of its programs and activities. The proposed legislation does not change any specific City policies.

This legislation does not involve long-term financial impacts to the City. It is concerned with the definition of expenses across its existing funding sources. The action will change appropriations as follows: A percentage (up to 20% similar to what applies to federal grants) of gross revenue funding source will be defined as an administrative or indirect expense (which is calculated by the Central Budget Office) category. This change will take place after internal bureau analysis in the FY24-25 budget cycle and going forward. This legislation will not change current and future revenues, including dollar amounts and funding sources. This legislation will contribute to greater stability of current and future staffing levels but does not call for any changes to those staffing levels.

This internal budgetary tool will support PHB's operation to achieve the City’s housing goals through policies, programs, and activities provided to the community. PBH’s programs and operations, which would be positively served by this change, are subject to extensive community outreach and oversight.