passed ordinance

*Authorize financing to M. Carter Commons Limited Partnership or a Northwest Housing Alternatives affiliate for development of a new affordable housing project at 3675 N Interstate Ave not to exceed $3,500,000

housing
ordinance

Department: Housing Bureau
Introduced by: Former Mayor Ted Wheeler
Status: Passed

Impact statement

Purpose & background

This Ordinance requests City Council approval of up to $3,500,000 in new construction financing from Interstate Corridor Urban Renewal Area Tax Increment Financing (TIF). The purpose of the financing is to enable Northwest Housing Alternatives and Urban League to construct 62 new units of affordable housing plus one manager’s unit at 3675 N. Interstate Avenue, in the Overlook Neighborhood. Approval of the Ordinance will authorize the Director of PHB to execute all funding and related documents needed to advance the Project including construction and operation of the development as affordable housing.

Financial impacts

The financing amount requested in this legislation is included in the PHB FY 2024-2025 Adopted Budget and the five-year forecast. PHB will regulate and monitor the project for a term of 99 years, charging a fee over the life of the project to cover compliance monitoring costs. The Project received a City loan for predevelopment costs; the outstanding principal and interest totaling approximately $1,000,000 will be paid to PHB at closing. The Project has been approved for System Development Charge (SDC) waivers, which collectively total an estimated $1,078,659 in forgone City revenue.

Economic impacts

The Project is not expected to have a negative impact on the cost of doing business or real estate or negatively impact other development projects in Portland. It will have a positive economic impact on housing costs by adding to the City’s regulated affordable housing stock, creating 62 new affordable studio and one-bedroom units plus one manager’s unit. Twenty-one (21) units will serve households with extremely low incomes earning up to 30% AMI with the remaining 41 units for households earning up to 60% AMI. The Project assists in filling the need for affordable senior housing with all regulated units targeted to serve people 55 years and older.

Community impacts

Community impacts: 62 units of new affordable housing in the Overlook neighborhood, targeted to serve Black senior households. 51 of these units will be subject to the N/NE Preference Policy, a City strategy to address the harmful legacy of displacement in North and Northeast Portland. 34% of affordable units will be affordable to those with extremely low incomes, earning up to 30% of area median income. These deeply affordable units are made possible by federal rental assistance vouchers from Home Forward and tax credits administered by the Oregon Housing and Community Services Agency. Redevelopment of a site adjacent to frequent-service public transit, with great neighborhood amenities within a several block radius including a community garden, public park, a hospital, and restaurants. Resident Services will be provided by Urban League and will include financial planning, workforce training, and eviction prevention intervention for the low- and extremely low-income populations being served. Urban League provides culturally specific services focused on increasing independence and self-determination along with developing life skills and improving access to benefit and entitlement programs. Community involvement: The development and design team for the Project held two design workshops in June of 2023 to solicit feedback and set priorities for programming and building design. Top priorities of those attending were varied community spaces, and safety and security concerns. The feedback from attendees at the two sessions has shaped the project design, evident in the building design with a package room, robust access control, a small waiting area, and a large community room that can be divided into smaller salons. Unit Mix and Affordability: Project Overview: New multifamily rental housing construction Total Units: 63 Permanently Affordable: 62 Unit size (no. of bedrooms) No. of units AMI % PSH PBVs Square feet/unit Studio 2 30% 0 398 Studio 4 60% 0 398 1-bedroom 19 30% 0 11 517-581 1-bedroom 37 60% 0 517-581 1-bedroom 1 Manager 0 581 Total 63 0 11

▸ Full text (the legislation as adopted)

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, including the use of Tax Increment Financing (TIF) to support the development and preservation of affordable housing. In Fall of 2022, PHB published a Notice of Funding Availability inviting developers to submit proposals for affordable housing projects on four sites, including the southwest corner of N. Interstate Avenue and N. Overlook Boulevard, a site donated by Kaiser Permanente for redevelopment as affordable housing. PHB issued an award letter to Northwest Housing Alternatives and Urban League offering them PHB-controlled funds including $3,500,000 in Interstate Corridor Urban Renewal Area Tax Increment Financing (TIF) funds, and the rights to develop the site donated by Kaiser Permanente. Northwest Housing Alternatives, Urban League, and equity investor NEF have together formed M. Carter Commons Limited Partnership (Borrower) to accept the site donation from Kaiser Permanente and construct a multifamily affordable rental project of 63 units known as M. Carter Commons (Project). The project is located at 3675 N. Interstate Avenue, in the Overlook Neighborhood. The Project is comprised of 6 studio and 57 one-bedroom units. One unit will be occupied by the building’s manager, and the remaining 62 units will be regulated at affordable rents. Two (2) studios and 19 one-bedrooms will be affordable to households with extremely low incomes earning up to 30% of area median income by household size. Four (4) studios and 37 one-bedroom units will be available to those with low incomes, earning up to 60% of the area median. All regulated affordable units will be available to those 55 years old or older. Project-based Section 8 vouchers from Home Forward will support 11 of the one-bedroom units available to households with extremely low incomes; all other affordable units are subject to the N/NE Preference Policy. The Borrower will enter into regulatory agreements with PHB in accordance with City policies to maintain the affordability of the Project for 60 years to comply with the Metro Housing Bond requirements and for up to 99 years to comply with additional City requirements. The proposed City funding including Metro Bonds and ICURA TIF leverages over $26 million in other public and private financing. On November 21, 2024, the PHB Housing Investment Committee recommended approval of the use of TIF funds for the Project. NOW, THEREFORE, the Council directs: The City Administrator or its designee is hereby authorized to execute any and all financing and related documents necessary to advance the project and provide an amount not to exceed $3,500,000 to M. Carter Commons Limited Partnership or a Northwest Housing Alternatives affiliate for construction of the Project. The City Administrator or its designee is hereby authorized to approve amendments or modifications to any and 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 impair the ability of the Project to meet the timeline required by other financing sources and increase the risk of displacement for current tenants; therefore, this Ordinance shall be in full force and effective from and after its passage.

Tally

4 yea 0 nay 1 other