passed ordinance 2026-182

Appropriate $2,500,000 from the Construction Excise Tax Sub-fund 225020 for homeownership development in District 2

housing
equity
budget appropriation

Department: Housing Bureau
Service area: Community and Economic Development
Introduced by: Councilor Loretta Smith Councilor Eric Zimmerman Councilor Elana Pirtle-Guiney Councilor Dan Ryan Council Vice President Olivia Clark
Status: Passed

Impact statement

Purpose & background

This ordinance allocates $2,500,000 from theConstruction Excise Tax Sub-fund 225020to support the development of new homeownership opportunities in District 2 through projects led by Self Enhancement, Inc. (SEI) and the Williams & Russell development CDC. The purpose of this legislation is to expand access to homeownership as a strategy to address housing instability and prevent displacement in historically impacted communities, including communities that experience racial wealth disparities. This investment is particularly significant given the historic displacement of Black residents in North and Northeast Portland and the ongoing barriers to homeownership faced by low- and moderate-income households. The SEI and Williams & Russell projects represent community-rooted efforts to create ownership opportunities in areas where such opportunities have been limited.

Financial impacts

This ordinance appropriates and allocates $2,500,000 from the Construction Excise Tax Fund 225020 within the Portland Housing Bureau budget. No new General Fund resources are required. Funds will be provided as direct investments to support project feasibility and the creation of affordable homeownership units. These investments are intended to advance City housing and equity goals and are not expected to return to the Fund.

Economic impacts

The proposed investment will support the development of new homeownership units, contributing to increased housing supply and diversification of housing types in District 2. By funding predevelopment and construction activities, this ordinance will: Stimulate local economic activity through construction and development jobs; Support community-based development organizations; Increase opportunities for first-time homebuyers to enter the housing market. The focus on homeownership development promotes long-term neighborhood stability and helps expand access to ownership in areas where rising costs have limited entry into the market.

Community impacts

This ordinance is expected to have positive impacts on communities at risk of displacement, including Black households and other historically marginalized groups in North and Northeast Portland. The SEI and Williams & Russell projects are rooted in longstanding community relationships and reflect ongoing efforts to reinvest in neighborhoods that have experienced historic disinvestment and displacement. The Portland Housing Bureau will work with project partners to ensure culturally specific outreach, equitable access to homeownership opportunities, and alignment with community priorities. Reporting requirements included in the ordinance will provide transparency and accountability regarding outcomes. These investments are intended to support not only housing production, but also broader goals of community stability, wealth-building, and equitable development.

▸ Full text (the legislation as adopted)

The City of Portland ordains. Section 1.The Council finds: On June 29, 2016, the Council adopted Ordinance 87855, establishing a Construction Excise Tax to fund affordable housing initiatives from an Inclusionary Housing Fund, in response to Council's finding that the City had a critical need for housing affordable to households earning at or below 80% of the median household income. Portland City Code Section 6.08.130(C) allows Commercial Construction Excise Tax Revenue to be use for the production and preservation of affordable housing units at or below 60 percent median family income. Homeownership is a primary driver of household wealth creation, yet access to homeownership in Portland remains inequitable, particularly for Black households and other historically marginalized communities. The Williams & Russell site represents a historically significant location in North/Northeast Portland, where past displacement of Black residents has had lasting economic and cultural impacts. Self Enhancement, Inc. (SEI) is a trusted, community-based organization with a demonstrated track record of serving Portlanders, including Black youth and families and advancing economic opportunity. Targeted investment in homeownership development in high-displacement-risk areas is a necessary strategy to prevent further displacement, promote community stability, and support intergenerational wealth-building. The Council finds that allocating a portion of the Construction Excise Tax (CET) Sub-Fund for homeownership development is consistent with the Sub-Fund's purpose when structured to maintain long-term public benefit and potential reinvestment. Affordable housing homeownership projects located within the Interstate Corridor Urban Renewal Area that receive funding administered by the Portland Housing Bureau are subject to the N/NE Preference Policy. NOW, THEREFORE, the Council directs: The Council hereby appropriates $2,500,000 from the CET Sub-Fund 225020 within the Portland Housing Bureau budget. Funds shall be distributed as follows: $1,500,000 to Self Enhancement, Inc. (SEI) for homeownership development projects in District 2; $1,000,000 to the Williams & Russell development for homeownership development in District These funds shall be disbursed through execution of a grant agreement and associated documents (the "grant documents") that specify that the funds must be used solely for development costs associated with creating new homeownership units, including but not limited to predevelopment, construction, and related project costs and may impose affordability requirements. Funded projects must: Serve households earning at or below 120% of Area Median Income (AMI), prioritizing households earning between 60% to 80% AMI when practicable; and Include strategies to increase access for first-time homebuyers; and Employ culturally appropriate outreach and marketing to potential homebuyers. The requirements in Code Subsection 6.08.130(C) are hereby waived for the purpose of this Ordinance and Appropriation only.

Tally

10 yea 2 nay