*Authorize grant agreement with St. Vincent de Paul to purchase and preserve Kelly Butte Manufactured Home Park and regulate affordability at Kelly Butte and Strawberry Acres Manufactured Home Parks not to exceed $3,500,000 (amend Ordinance 191729)

On May 22, 2024, Portland City Council adopted Ordinance No. 191729 authorizing the Portland Housing Bureau (“PHB”) to provide up to $3.5 million to St. Vincent de Paul for acquisition of Kelly Butte Manufactured Home Park, an 11-space park located at 3344 and 3362 SE 112th Avenue (“Kelly Butte”). PHB now seeks a technical clarification to allow the $3.5 million in acquisition funding to be provided in the form of a grant to St. Vincent de Paul. All other findings and terms outlined in Ordinance No. 191729 and the accompanying impact statement remain in effect. The funds will allow the City to enter into regulatory agreements for both Kelly Butte and Strawberry Acres Manufactured Home Park, a 24-space park located at 5110, 5122, 5148 & 5200 SE 132 nd Avenue (“Strawberry Acres”), to preserve their use as manufactured home parks and prevent resident displacement.

The $3.5 million previously approved by Council is from the City General Fund and is included in PHB’s Fiscal Year 2024-25 budget. PHB has never intended to accept payments or charge interest on the acquisition financing. Therefore, clarifying that the funds will be provided as a grant does not result in a loss of expected revenue.

Community impacts: Two manufactured home parks will be permanently preserved, comprising 35 spaces for naturally occurring affordable homeownership. All current park tenants will be able to remain in their homes. Future rentals of all 35 park spaces will be restricted to households at or below 120% AMI. Community involvement: Kelly Butte residents have strongly advocated to remain in their homes and preserve the property as a manufactured home park since 2020, working with tenants’ rights organizers and Legal Aid Services of Oregon. Kelly Butte residents have also been in conversation with the City since 2021, first with Commissioner Ryan’s Office and more recently in 2023 with Commissioner Rubio’s Office. In November 2023, PHB and Commissioner Rubio’s Office sent a letter to Strawberry Acres residents updating them on the negotiations between the City and the owner of Strawberry Acres and inviting them to a town hall at Gilbert Park Elementary School. Legal Aid Services of Oregon also communicated this information to Kelly Butte residents. A majority of Strawberry Acres and Kelly Butte residents attended the November 2023 townhall. Residents requested expedient action to preserve their homes and prevent displacement. In response to their concerns regarding unit affordability, PHB opted to restrict future resident’s income at 120% AMI instead of 100% AMI. In December 2023 and April 2024 PHB and Commissioner Rubio’s Office sent Kelly Butte and Strawberry Acres residents follow-up information regarding the updated deal terms, anticipated timeline, and opportunity to provide Council testimony for this item. Unit Mix and Affordability Project Overview: Preservation of manufactured home parks Total Units: 35 spaces Regulated Affordable: 35 at 120% AMI Current Unit Sizes Total No. Units Kelly Butte (120% AMI) Strawberry Acres (120% AMI) 3 BR 32 10 22 4 BR 3 1 2 Total 35 11 24