WEBVTT 1 00:08:03.574 --> 00:08:04.593 Good afternoon. 2 00:08:04.786 --> 00:08:07.956 I will call the meeting of Housing and Permitting Committee to order. 3 00:08:08.651 --> 00:08:11.336 It is Tuesday, August 4th at 2 PM. 4 00:08:11.514 --> 00:08:12.860 Diego, please call the roll. 5 00:08:13.206 --> 00:08:13.831 Good afternoon. 6 00:08:14.105 --> 00:08:14.653 Koyama Lane? 7 00:08:15.007 --> 00:08:15.281 Here. 8 00:08:15.651 --> 00:08:16.069 Novick? 9 00:08:16.762 --> 00:08:16.875 Here. 10 00:08:17.245 --> 00:08:17.454 Green? 11 00:08:18.855 --> 00:08:18.983 Here. 12 00:08:19.516 --> 00:08:19.966 Pirtle-Guiney? 13 00:08:20.175 --> 00:08:20.497 Here. 14 00:08:20.949 --> 00:08:21.173 Avalos? 15 00:08:21.528 --> 00:08:21.817 Present. 16 00:08:22.495 --> 00:08:23.961 Claire, please read the statement of conduct. 17 00:08:24.512 --> 00:08:25.012 Thank you, Chair. 18 00:08:25.483 --> 00:08:27.990 Good afternoon and welcome to the meeting of the Housing and Permitting Committee. 19 00:08:28.394 --> 00:08:39.285 To testify before this committee in person or virtually, you must sign up in advance on the committee agenda at portland.gov/council/agenda/housingandpermittingcommittee or by calling 311. 20 00:08:40.052 --> 00:08:43.168 Registration for virtual testimony closes 1 hour prior to the meeting. 21 00:08:43.745 --> 00:08:46.780 In-person testifiers must sign up before the agenda item is heard. 22 00:08:47.278 --> 00:08:52.865 If public testimony will be taken on an item, individuals may testify for 3 minutes unless the chair states otherwise. 23 00:08:53.541 --> 00:08:55.386 Your microphone will be muted when your time is over. 24 00:08:56.028 --> 00:08:56.912 The chair preserves order. 25 00:08:57.250 --> 00:09:05.020 Disruptive conduct such as shouting, refusing to conclude your testimony when your time is up, or interrupting others' testimony or committee deliberations will not be allowed. 26 00:09:05.647 --> 00:09:07.557 If you cause a disruption, a warning will be given. 27 00:09:08.071 --> 00:09:10.125 Further disruption will result in ejection from the meeting. 28 00:09:10.799 --> 00:09:13.721 Anyone who fails to leave once ejected is subject to arrest for trespass. 29 00:09:14.331 --> 00:09:17.302 Additionally, the committee may take a short recess and reconvene virtually. 30 00:09:18.184 --> 00:09:20.047 Your testimony should address the matter being considered. 31 00:09:20.174 --> 00:09:22.278 When testifying, please state your name for the record. 32 00:09:22.775 --> 00:09:25.168 If you are a lobbyist, identify the organization you represent. 33 00:09:25.649 --> 00:09:28.875 And finally, virtual testifiers should unmute themselves when the clerk calls your name. 34 00:09:29.164 --> 00:09:29.405 Thank you. 35 00:09:30.384 --> 00:09:30.818 Thank you, Claire. 36 00:09:31.572 --> 00:09:33.611 We have 4 main items on our agenda. 37 00:09:33.740 --> 00:09:35.232 We'll have some time for public comment. 38 00:09:35.361 --> 00:09:39.788 Then we will do a continuation of the foreclosure properties that we discussed on July 21st. 39 00:09:40.414 --> 00:09:44.105 Then we will have an ordinance on housing and a housing financing grant. 40 00:09:44.570 --> 00:09:52.927 And after a short break, we will talk about the single stair design and hear from Portland Neighbors Welcome about a local design competition that they organized. 41 00:09:53.634 --> 00:09:59.955 So, but before we get to our main items, we need to adopt committee minutes for our meetings on June 2nd and June 16th. 42 00:10:00.148 --> 00:10:01.479 Diego, can you please read the item? 43 00:10:02.426 --> 00:10:08.090 Item 1, June 2nd through June 16th, 2026, Housing and Permitting Committee minutes. 44 00:10:09.044 --> 00:10:10.727 The minutes are approved by unanimous consent. 45 00:10:10.775 --> 00:10:11.715 So are there any objections? 46 00:10:13.840 --> 00:10:15.344 Without objection, the minutes are approved. 47 00:10:15.408 --> 00:10:16.621 Diego, please read the next item. 48 00:10:17.576 --> 00:10:23.988 Item 2, document number 2026-271, Housing and Permitting Community Feedback. 49 00:10:24.456 --> 00:10:29.683 All right, we will now hear from community members on their ideas or concerns or feedback regarding housing and permitting issues. 50 00:10:30.183 --> 00:10:31.554 Each testifier will have 3 minutes. 51 00:10:31.763 --> 00:10:33.159 Diego, go ahead and call the first person. 52 00:10:35.389 --> 00:10:37.581 First up, we have Madeline Masters. 53 00:10:53.259 --> 00:10:53.469 Welcome. 54 00:10:53.549 --> 00:10:55.174 Go ahead and introduce yourself and get started. 55 00:10:55.759 --> 00:10:56.263 Thank you. 56 00:10:56.490 --> 00:10:57.807 My name is Madeline Masters. 57 00:10:57.871 --> 00:10:58.668 I'm in District 2. 58 00:10:59.849 --> 00:11:01.004 Good afternoon, councilors. 59 00:11:01.309 --> 00:11:03.527 I'm here to discuss unintended consequences. 60 00:11:04.201 --> 00:11:09.919 I'd like to give you the view from North Portland, where what you call infill smells an awful lot like urban renewal. 61 00:11:10.450 --> 00:11:14.691 It smells a lot like extracting value from city dwellers to enrich suburban developers. 62 00:11:15.380 --> 00:11:16.297 It's a Trojan horse. 63 00:11:17.549 --> 00:11:26.979 Soon to be demolished is a landmark of my street, an old-growth bungalow with twinkling multi-pane windows listed by the city as a significant contributing historic resource. 64 00:11:28.023 --> 00:11:37.480 As a habitable 5-bedroom, it could be multigenerational housing, or to increase the development value, could be expanded and adapted to multifamily or even commercial use. 65 00:11:38.220 --> 00:11:41.248 But these possibilities are prohibited under R-2.5. 66 00:11:42.166 --> 00:11:48.524 To maximize value under the new zoning, the developer must demolish it, even as nearby houses and lots sit empty. 67 00:11:49.374 --> 00:11:50.173 Is this sustainable? 68 00:11:51.912 --> 00:11:57.020 Bought privately for $450,000, it is now listed as a raised development site for $695,000. 69 00:11:58.486 --> 00:12:07.288 The developer's other nearby projects— project features 900-square-foot houses selling for nearly $400,000, double the cost per square foot. 70 00:12:07.979 --> 00:12:08.734 Is this affordable? 71 00:12:09.986 --> 00:12:14.051 We are losing lifelong housing in a neighborhood of multigenerational households. 72 00:12:14.323 --> 00:12:19.029 The buyers of these new vertical units will have to sell when they can no longer take the stairs. 73 00:12:19.703 --> 00:12:21.230 They'll probably have to leave Portland. 74 00:12:21.567 --> 00:12:22.644 Is this wealth building? 75 00:12:22.932 --> 00:12:23.928 Is it community building? 76 00:12:25.467 --> 00:12:31.464 A thoughtful answer could have created a mix of ground floor and upper floor units using the existing structure with new additions. 77 00:12:32.136 --> 00:12:37.106 The design would show consideration of the existing neighbors and the history and aesthetics that make a neighborhood special. 78 00:12:37.652 --> 00:12:38.485 That's infill. 79 00:12:39.270 --> 00:12:49.610 But when you massively upzone the entire city or state, you don't target the areas that need investment, but areas that are stable, and you destabilize them. 80 00:12:50.172 --> 00:12:52.625 You discourage investment in existing structures. 81 00:12:53.058 --> 00:12:57.083 You encourage land speculation and demolition and vacancy. 82 00:12:58.335 --> 00:13:03.210 With historic structures often on larger lots, you put a bigger target on the most special properties. 83 00:13:03.626 --> 00:13:09.705 You take out markers of local identity and end up with the same new developments cut and pasted in every neighborhood. 84 00:13:10.235 --> 00:13:12.030 Is this housing diversity? 85 00:13:13.265 --> 00:13:19.572 There's currently a $64 million listing by one developer for a portfolio of 170 new-build homes. 86 00:13:20.230 --> 00:13:22.142 This is who is building wealth under this scheme. 87 00:13:22.753 --> 00:13:23.506 Is this equitable? 88 00:13:24.085 --> 00:13:24.807 Is it democratic? 89 00:13:26.011 --> 00:13:33.703 I also question how the city is meant to support housing, housing, housing while we are losing commercial tax base and cutting schools and fire stations. 90 00:13:34.779 --> 00:13:39.885 But as to zoning, 6 major points which are a bit more fleshed out on the page that I shared. 91 00:13:40.705 --> 00:13:46.149 One, transparency is essential to market participation as well as to democracy. 92 00:13:46.518 --> 00:13:50.322 2, Targeted rezoning works better than sweeping changes. 93 00:13:50.691 --> 00:13:55.039 3, Restrict demolition but give historic preservation an upside. 94 00:13:55.634 --> 00:14:01.234 4, Form-based zoning and use flexibility are better incentives than bulk bonuses. 95 00:14:01.972 --> 00:14:03.850 5, Design for longevity. 96 00:14:04.331 --> 00:14:06.514 6, Aesthetics matter to everyone. 97 00:14:07.589 --> 00:14:09.418 Pretty neighborhoods draw taxpayers. 98 00:14:09.724 --> 00:14:11.504 Stable neighborhoods retain them. 99 00:14:12.019 --> 00:14:12.788 Please remember this. 100 00:14:13.063 --> 00:14:13.405 Thank you. 101 00:14:15.754 --> 00:14:16.553 Thank you for your testimony. 102 00:14:17.929 --> 00:14:18.817 Diego, please call the next person. 103 00:14:19.190 --> 00:14:20.967 Next is Lacey Sutton. 104 00:14:24.841 --> 00:14:29.796 Hi, Lacey Sutton. 105 00:14:31.259 --> 00:14:33.995 I'd like to talk more about the balcony railings at Cherry Blossom. 106 00:14:34.566 --> 00:14:40.928 It's not our most pressing concern, but it's a really good example of the sort of thing your self-proclaimed biggest customer was able to get away with. 107 00:14:41.908 --> 00:14:53.313 Even before moving into our new homes, parents expressed concerns about having horizontal bars immediately outside the sliding glass door on the second story with concrete below, but Habitat for Humanity refused to replace them. 108 00:14:53.940 --> 00:15:00.421 In the years since, I have witnessed countless times children climbing these bars and felt immense frustration with such a stupid, careless design. 109 00:15:01.350 --> 00:15:07.703 So imagine my surprise when I discovered that the design commission had actually made vertical railings a condition of Approval. 110 00:15:08.072 --> 00:15:08.312 Why? 111 00:15:09.193 --> 00:15:11.725 Because they shared the same concerns about horizontal bars. 112 00:15:12.318 --> 00:15:18.297 During the recorded hearing, a commissioner said the ladder has other problems, which is kids can actually climb and jump over them. 113 00:15:19.434 --> 00:15:24.145 Vertical balcony railings were a legal requirement of this build, so why do we have ladders? 114 00:15:25.059 --> 00:15:36.197 By the way, the condition also states unit entry stoop safety railings shall be vertical, but some of these have horizontal railings as well, and the rest of them are just big bars with no safety railings at all. 115 00:15:36.743 --> 00:15:38.216 Nothing for small hands to hold on to. 116 00:15:38.280 --> 00:15:38.376 Thank you. 117 00:15:39.403 --> 00:15:49.583 I've previously testified about how, following my complaint to PP&D, I was told that former Director Kuhnhausen met with CEO Steve Messinetti to discuss the things they missed. 118 00:15:50.690 --> 00:15:55.565 And in an exceedingly rare moment of accountability, Habitat was given directives to replace the railings. 119 00:15:56.302 --> 00:15:59.299 But after this made the evening news, PP&D reneged. 120 00:16:00.389 --> 00:16:09.535 When I asked for an explanation repeatedly for weeks, I was merely forwarded the memo the director sent to City Council, which dismissed All my concerns about Cherry Blossom. 121 00:16:10.136 --> 00:16:11.289 He never wrote a word to me. 122 00:16:11.678 --> 00:16:15.235 Why should he when he can just send out some BS he knew no one would fact-check? 123 00:16:16.381 --> 00:16:22.408 On the balconies, he said, well, there was a condition in the land use review for this site stating that the railing must be vertical. 124 00:16:22.456 --> 00:16:24.818 This condition was related to aesthetics, not safety. 125 00:16:27.197 --> 00:16:32.969 The railings were shown as horizontal in the 2019 land use review, which amended the previously approved design. 126 00:16:33.813 --> 00:16:38.125 He's referring to the Type 2 review Habitat got for minor changes. 127 00:16:38.302 --> 00:16:40.330 They weren't minor, but I digress. 128 00:16:41.198 --> 00:16:50.392 It didn't even mention railings because a single staffer could not and did not amend a condition of approval decided upon by the Design Commission during a Type 3 review. 129 00:16:51.099 --> 00:16:53.533 The idea that an architect's drawing could do that is absurd. 130 00:16:54.789 --> 00:16:58.307 To amend this condition, Habitat would have had to get another Type 3 review. 131 00:16:59.019 --> 00:17:01.922 Here's a PP&D supervisor telling them this via email in 20—. 132 00:17:01.937 --> 00:17:02.245 2019. 133 00:17:02.879 --> 00:17:03.312 19. 134 00:17:03.986 --> 00:17:08.146 Any condition of approval not met would require a follow-up Type 3 DZ. 135 00:17:08.227 --> 00:17:12.226 Please meet all conditions of approval so another Type 3 DZ is not required. 136 00:17:13.045 --> 00:17:21.220 But then, like so many things that were required for Cherry Blossom Habitat, just didn't do it, and the city just signed off on it, and there were zero consequences. 137 00:17:21.974 --> 00:17:28.736 Unless a kid falls, I guess, or until a tree falls on a house, or there's a fire, then there will be consequences. 138 00:17:28.784 --> 00:17:29.025 Thank you. 139 00:17:33.329 --> 00:17:34.520 That concludes testimony. 140 00:17:35.422 --> 00:17:39.363 Thank you again for folks for testifying in front of us today. 141 00:17:40.231 --> 00:17:42.627 Always an opportunity to share your experience at committee. 142 00:17:43.528 --> 00:17:49.240 Um, Diego, go ahead and call the next item, or actually, um, please open items 3 through 16. 143 00:17:51.928 --> 00:18:03.240 Item 3, document number 2026-247, initiate foreclosure action on 7545 Northeast Sandy Boulevard for the collection of delinquent delinquent city liens placed against the property. 144 00:18:03.690 --> 00:18:16.049 Item 4, document number 2026-248, initiate foreclosure action on 7545 WI/Northeast Sandy Boulevard for the collection of delinquent city liens placed against the property. 145 00:18:16.049 --> 00:18:27.890 Item 5, document number 2026-249, initiate foreclosure action on 6307 North Montana Ave for the collection of delinquent city liens placed against the property. 146 00:18:27.890 --> 00:18:38.021 Item 6, document number 2026-250, initiate foreclosure action on North Columbia Boulevard for the collection of delinquent city liens placed against the property. 147 00:18:38.458 --> 00:18:51.517 Item 7, document number 2026-252, initiate foreclosure action on 7250 Northeast Sandy Boulevard— excuse me, Northeast Lombard Street for the collection of delinquent city liens placed against the property. 148 00:18:52.077 --> 00:18:57.446 Item 8, document number 2026-253, initiate foreclosure action on 7101—. 149 00:18:57.446 --> 00:18:58.243 7101. 150 00:18:59.339 --> 00:19:04.980 7103 Southeast Division Street for the collection of delinquent city liens placed against the property. 151 00:19:05.200 --> 00:19:16.440 Item 9, document number 2026-254, initiate foreclosure action on 1625 Southeast 35th Ave for the collection of delinquent city liens placed against the property. 152 00:19:16.440 --> 00:19:28.789 Item 10, document number 2026-255, initiate foreclosure action on 2706 Southeast 122nd Ave for the collection of delinquent city liens placed against the property. 153 00:19:29.099 --> 00:19:42.579 Item 11, document number 2026-256, initiate foreclosure action on 2734-2738 Northeast Alberta Street for the collection of delinquent city liens placed against the property. 154 00:19:42.640 --> 00:19:54.319 Item 12, document number 2026-257, initiate foreclosure action on 4324 Southeast 65th Ave for the collection of delinquent city liens placed against the property. 155 00:19:54.640 --> 00:20:06.640 Item 13, document number 2026-258, initiate foreclosure action on 6627 Southeast Woodstock Boulevard for the collection of delinquent city liens placed against the property. 156 00:20:06.640 --> 00:20:19.339 Item 14, document number 2026-259, initiate foreclosure action on 10104 Southeast Herald Street for the collection of delinquent city liens placed against the property. 157 00:20:19.339 --> 00:20:30.484 Item 15, document number 2026-261, initiate foreclosure action on 5706 Southeast Lambert Street for the collection of delinquent city liens placed against the property. 158 00:20:30.920 --> 00:20:41.453 Item 16, document number 2026-261, initiate foreclosure action on 855 Northeast Church Street for the collection of delinquent city liens placed against the property. 159 00:20:45.037 --> 00:20:46.284 Thank you, Diego. 160 00:20:46.997 --> 00:20:49.458 All right, give me one quick second, folks. 161 00:20:49.732 --> 00:21:05.928 I am clarifying okay, so at the mayor's request, we are withdrawing 2 items from the agenda and referring these back to the mayor's office. 162 00:21:06.410 --> 00:21:16.512 That is item 9, document 2026-254, property located at 1635 Southeast 35th Avenue, where the owner has satisfied the balance owed on the liens. 163 00:21:16.564 --> 00:21:16.665 So moved. 164 00:21:16.717 --> 00:21:16.818 Second. 165 00:21:16.869 --> 00:21:16.971 Second. 166 00:21:17.503 --> 00:21:30.339 And item 10, document 2026-255, property located at 2706 Southeast 122nd Avenue where the owner has closed their open case and entered into a payment plan. 167 00:21:32.109 --> 00:21:42.413 Additionally, before we take on the remaining items, I'd like to note that I will not be calling for a vote today on item 14, document 2026-256. 168 00:21:46.192 --> 00:21:46.306 Yes. 169 00:21:48.292 --> 00:22:00.142 Based on information that has recently come to my attention, I believe additional time is appropriate to allow the property owner's family to determine whether they can resolve the situation without the need for foreclosure. 170 00:22:00.239 --> 00:22:03.898 And we can ask questions on that if you'd like. 171 00:22:05.016 --> 00:22:15.765 And then as a reminder, we continued this ordinance package to allow more time for committee member questions about specific properties that are eligible for foreclosure under city administrative rule. 172 00:22:15.957 --> 00:22:28.101 So I will ask Kevin Foster, our Foreclosure Prevention Manager, to provide us with any updates on the properties and potential resolution, and then we will open it up to committee questions and discussion. 173 00:22:28.373 --> 00:22:29.848 So with that, take it away. 174 00:22:30.474 --> 00:22:35.239 All right, good afternoon, Chair Avalos, Vice Chair Green, and the Housing Committee. 175 00:22:35.981 --> 00:22:41.958 For the record, I'll state my name, Kevin Foster, Foreclosure Prevention Manager for the city. 176 00:22:47.759 --> 00:22:52.231 Okay, as we discussed, these are the 2 properties that were removed within the last 2 weeks. 177 00:22:54.660 --> 00:23:01.727 So actually, we're taking off one more today, so there's actually going to be 11 properties that we're moving forward with. 178 00:23:04.699 --> 00:23:09.414 All right, and where would you like me to start? 179 00:23:09.643 --> 00:23:10.357 Yeah, Chair Avalos. 180 00:23:12.296 --> 00:23:12.555 Wherever. 181 00:23:12.619 --> 00:23:14.269 Just— okay, okay. 182 00:23:14.318 --> 00:23:20.482 So this is the, um, this property, 7545 Northeast Sandy Boulevard. 183 00:23:21.311 --> 00:23:22.684 Um, we went over it last week. 184 00:23:22.749 --> 00:23:27.595 There's been no engagement with the owner, um, or any of the parties of interest. 185 00:23:28.701 --> 00:23:35.423 Um, in the last 2 weeks, I did speak with one party of interest like I told you last time, and they told me there's nothing they can really do. 186 00:23:36.240 --> 00:23:40.327 Um, so of course this is why it's remaining on the list. 187 00:23:44.314 --> 00:24:04.689 Now this property, 6307 North Montana Avenue, we received an email within the last hour, and they've been able to— the attorney that's working with the lender they've been able to get closer to resolving the property, resolving the issues at the property and getting a certificate of occupancy and certificate of completion. 188 00:24:05.030 --> 00:24:07.013 So this one we won't be moving forward with. 189 00:24:11.319 --> 00:24:22.315 So I think what I'm going to do is, because I've already gone through the presentation with you guys before, if we could just get to some— maybe you guys have specific questions about properties. 190 00:24:23.818 --> 00:24:24.911 And I could just go from there. 191 00:24:28.440 --> 00:24:29.036 All right, sounds good. 192 00:24:29.440 --> 00:24:31.455 We will kick it off with Councilor Pirtle-Guiney. 193 00:24:32.747 --> 00:24:34.441 Thank you, Chair, and thank you for being back. 194 00:24:34.506 --> 00:24:38.798 There were 2 properties I had asked questions about the previous time you were here. 195 00:24:38.862 --> 00:24:44.450 It sounds like one of them, 10104 Southeast Herald, we're not moving forward today. 196 00:24:45.277 --> 00:24:48.084 The other was 855 Northeast Church Street. 197 00:24:49.108 --> 00:25:04.403 You told us a few weeks ago that the property owner there had plans for the property but hadn't been able to provide any proof of engagement with a contractor or anything else to show you that they were moving forward with those plans. 198 00:25:05.029 --> 00:25:07.568 Have there been any updates over the last few weeks? 199 00:25:07.616 --> 00:25:15.038 Have they been able to produce anything, or are we still in a situation where they are reporting plans but not able to give you any concrete information? 200 00:25:15.152 --> 00:25:16.368 To show those moving forward? 201 00:25:16.834 --> 00:25:20.550 Yes, right now we're still in that same state, but she is out of town right now. 202 00:25:21.464 --> 00:25:24.814 Um, so that's why one of the reasons when I spoke with her last, she was out of town. 203 00:25:25.309 --> 00:25:28.145 I believe she comes back either late this week or next week. 204 00:25:28.227 --> 00:25:36.157 Uh, I wanted her to have the contractor just call me just so I could speak with someone and, and get this removed from the list, but we haven't been able to do that yet. 205 00:25:37.647 --> 00:25:49.551 Do you think that she'll have sufficient time between when this moves out of committee and when it moves to to full council to be able to be in touch with you, given what you know about her schedule and her ability to have her contractors in touch. 206 00:25:49.777 --> 00:25:50.001 Yes. 207 00:25:50.259 --> 00:25:54.208 And the good thing about it is that once it goes to— it's not going to full council until September 9th. 208 00:25:54.673 --> 00:25:58.462 We still have a month until then, but you won't be voting that date either. 209 00:25:58.848 --> 00:26:00.471 So you won't vote on the 9th as well. 210 00:26:00.535 --> 00:26:02.767 You guys vote like, I think, 2 weeks or a week later. 211 00:26:03.730 --> 00:26:07.439 So we still have time to remove it if we're able to get some commitment from her. 212 00:26:08.467 --> 00:26:19.958 Chair, given that timeline, and I think there's been more clarity in what the city needs from this property owner since we first met, I am comfortable moving this one forward today. 213 00:26:21.001 --> 00:26:27.196 I would ask that as you have conversations with the council president, these not be put on the consent agenda. 214 00:26:27.244 --> 00:26:33.537 I don't know if that's something he's been planning for or not, because I would like the opportunity to ask about this property again at full council. 215 00:26:33.601 --> 00:26:33.744 Thank you. 216 00:26:33.809 --> 00:26:36.758 Council with the hopes that there are some updates within the next month. 217 00:26:37.465 --> 00:26:40.817 Remind me the document number for the property you're mentioning. 218 00:26:41.413 --> 00:26:42.878 Let me find it on the list. 219 00:26:42.926 --> 00:26:45.662 I apologize, I was looking at the address. 220 00:26:46.627 --> 00:26:50.310 It is— give me just a moment— uh, 16. 221 00:26:51.242 --> 00:26:54.359 Oh, okay. 222 00:26:54.520 --> 00:26:57.027 This is the one that we're talking about, the same property? 223 00:26:57.573 --> 00:26:59.163 Is that what we're—. 224 00:26:59.163 --> 00:27:05.396 I thought you had said that you were pulling document 14, um, 9, 10, and 5 off the list. 225 00:27:05.478 --> 00:27:09.604 I don't know if my numbers are correct, so tell me the document number. 226 00:27:09.970 --> 00:27:12.621 Oh, uh, 2026-261. 227 00:27:12.750 --> 00:27:13.769 Okay, 261. 228 00:27:13.817 --> 00:27:16.000 Yeah, that's why it's, it's numbered differently on my end. 229 00:27:16.082 --> 00:27:19.817 So that one you are saying you would like to move forward with, is what I'm hearing? 230 00:27:19.865 --> 00:27:26.836 That one I'm saying— I assume we are moving these forward today, and if so, I had raised concerns about this property. 231 00:27:26.916 --> 00:27:45.531 What I'm sharing is that if you are hoping to move all of these forward today, I'm comfortable moving this forward with that, but would ask that it come to council in such form that I can ask questions about whether progress has been made over the next month when we're at full council. 232 00:27:45.596 --> 00:28:03.142 So if you are having conversations with the council president about either a consent agenda or bulking items for a vote at council, I would ask that this not be included in any actions like that and that it come forward as a standalone item where I'll have the opportunity to check in on any progress. 233 00:28:05.070 --> 00:28:05.788 Great, sounds good. 234 00:28:06.391 --> 00:28:06.842 Thank you, Chair. 235 00:28:10.278 --> 00:28:11.967 Committee, any other questions? 236 00:28:16.609 --> 00:28:16.772 Okay. 237 00:28:18.862 --> 00:28:20.478 Was there anything further you wanted to share? 238 00:28:22.436 --> 00:28:23.113 No, that's all I had. 239 00:28:23.275 --> 00:28:24.031 Okay, great. 240 00:28:24.788 --> 00:28:29.172 Well then, in that case, I'm just trying to get the right language up here. 241 00:28:30.099 --> 00:28:39.566 So like I said last time, we are able to move them in bulk, and what I'm going to do is I'm going to name all of the properties as was stated. 242 00:28:39.615 --> 00:28:40.211 Let me just check. 243 00:28:40.342 --> 00:28:47.962 1, 2— Okay, yeah, so 11 total properties that I will read. 244 00:28:48.539 --> 00:28:49.518 Are we on the same page about that? 245 00:28:50.222 --> 00:28:50.462 Yes? 246 00:28:51.232 --> 00:28:52.098 No, 10 properties. 247 00:28:52.547 --> 00:28:55.336 Okay, we're not on the same page. 248 00:28:55.576 --> 00:28:57.147 Let's figure out what the discrepancy is. 249 00:28:58.046 --> 00:29:30.859 I have— why don't I— so the numbers that I have that we are approving today or moving forward, I'm going to list them: 247, 248, 249, 250, 252, 253, Chair, I think, and Kevin can clarify, item 5, which is 2026-249, is the 6307 Montana. 250 00:29:30.859 --> 00:29:36.299 And that one you are asking be referred back to the mayor's office, meaning the committee does not need to take action, correct? 251 00:29:36.299 --> 00:29:36.359 Yes. 252 00:29:36.359 --> 00:29:38.759 So are there 3 that are getting referred back to the mayor's office? 253 00:29:38.890 --> 00:29:39.240 Yes. 254 00:29:39.240 --> 00:29:40.480 'Cause on my list I only have 2. 255 00:29:40.500 --> 00:29:42.701 Yeah, this just came in within the last hour. 256 00:29:42.958 --> 00:29:48.500 Okay, so 2— and the numbering's off, so don't tell me the number of the item, tell me the actual number of the item. 257 00:29:48.566 --> 00:29:49.416 So 249. 258 00:29:49.770 --> 00:29:51.184 Chair, point of information, I'm sorry. 259 00:29:51.844 --> 00:29:59.508 Um, you all are talking about 3 items being referred back to the mayor's office, but I thought you had said there were 4 not moving forward. 260 00:29:59.571 --> 00:30:01.548 Could you help us understand what the 4th item is? 261 00:30:01.837 --> 00:30:06.384 So the 3 that are not moving forward were— are from the mayor. 262 00:30:06.786 --> 00:30:11.903 259 Is going to just live in limbo, essentially, is what I'm understanding. 263 00:30:12.096 --> 00:30:17.180 It's— it'll be lit— it'll be in committee, stay open, and can be scheduled at a later date. 264 00:30:18.094 --> 00:30:27.269 Um, we did consult with the city attorney on this, Chair, and the advice we got is— so it's a little bit different than the other 3 that are being referred back to the mayor's office. 265 00:30:27.333 --> 00:30:46.934 So effectively, with unanimous consent from the committee, you can continue the item to a future to-be-determined date that you don't need to state that keeps it alive, but it would not— that item 250— sorry, 2026-259 would not be moving on with the package to Council at that September date. 266 00:30:47.498 --> 00:31:00.186 So should we understand as committee members that the other 3 are being removed because of actions that have taken place with the administrative office and that this one is being removed for other reasons? 267 00:31:00.299 --> 00:31:03.425 It's being delayed, so that's why it's not being removed. 268 00:31:03.473 --> 00:31:05.012 It's still going to be on the committee docket. 269 00:31:05.060 --> 00:31:08.154 The other 3 are getting officially removed from the list. 270 00:31:08.811 --> 00:31:14.550 259 will stay technically on the list and just kind of live in limbo while we give that homeowner some time. 271 00:31:14.598 --> 00:31:20.273 We've gotten some information that they need some more time, and then we can put it on another committee agenda in the future. 272 00:31:20.611 --> 00:31:33.262 And is that the recommendation of the administration, or is this an action that you're asking for separate from I think I misunderstood and thought that this was an ask from the administration as well. 273 00:31:33.953 --> 00:31:35.078 It is an ask from me. 274 00:31:36.241 --> 00:31:38.714 Am I correct that that's how we're phrasing it? 275 00:31:40.809 --> 00:31:41.803 Let me check with my team. 276 00:31:45.665 --> 00:31:51.625 Okay, the info that we received was from Mr. Foster, but this is my request. 277 00:31:53.801 --> 00:31:54.285 Correct. 278 00:31:55.184 --> 00:32:00.922 Okay, questions on that or thoughts on that? 279 00:32:01.982 --> 00:32:11.380 Like I said, it is simply being delayed to be put on another agenda once we get more information because we've— they've been in touch and they need more time is what we were told. 280 00:32:11.992 --> 00:32:18.125 Yeah, okay, so to confirm, 249 is what I need to cross off my list? 281 00:32:19.203 --> 00:32:24.663 249, 254, And 255 are the ones that are pulled back by the mayor's office, correct? 282 00:32:25.852 --> 00:32:26.348 That's correct. 283 00:32:26.605 --> 00:32:29.849 Okay, so let me cross this out so I don't get confused. 284 00:32:30.267 --> 00:32:35.886 Um, and so then therefore there will be 10, as we said, because we took that off. 285 00:32:36.064 --> 00:32:36.256 Yes. 286 00:32:37.010 --> 00:32:43.657 Okay, so I'm gonna go ahead and move forward with, uh, entertaining a motion unless there are other questions or discussion. 287 00:32:44.094 --> 00:32:44.451 On this. 288 00:32:46.276 --> 00:32:50.087 Okay, so I am going to entertain a motion to move the following ordinances. 289 00:32:51.715 --> 00:33:26.680 Um, document number 2026-247, document number 2026-248, 2026-250, 2026-252, 2026-253, 2026-256, 2026-257, 2026-258, 2026-260, and 2026-261 to the full council with a recommendation to pass. 290 00:33:27.730 --> 00:33:29.740 So I entertained a motion, so I need somebody to move it. 291 00:33:30.769 --> 00:33:31.589 So moved. 292 00:33:31.589 --> 00:33:33.650 Okay, moved by Vice Chair Green. 293 00:33:33.650 --> 00:33:34.140 Do I have a second? 294 00:33:34.309 --> 00:33:34.329 Second. 295 00:33:34.329 --> 00:33:36.130 Seconded by Councilor Novick. 296 00:33:36.130 --> 00:33:37.390 Okay, any further discussion? 297 00:33:39.913 --> 00:33:40.894 Okay, please call the roll. 298 00:33:49.286 --> 00:33:49.334 Aye. 299 00:33:51.777 --> 00:33:51.825 Aye. 300 00:33:53.304 --> 00:33:53.384 Aye. 301 00:33:54.990 --> 00:33:55.152 Aye. 302 00:33:56.356 --> 00:33:56.453 Aye. 303 00:33:57.320 --> 00:34:30.909 With 5 ayes, the motion carries, and the ordinances, document number 2026-247, 2026-248, 2026-250, 2026-252, 2026-253, 2026-256, 2026-257, 2026-258, 2026-260, 2026-261 will move to the full council with the recommendation they be passed. 304 00:34:32.061 --> 00:34:32.320 Thank you. 305 00:34:32.369 --> 00:34:33.114 Thank you, Mr. Pastor. 306 00:34:34.085 --> 00:34:35.202 Diego, please read the next item. 307 00:34:39.005 --> 00:34:51.418 Item 17, document number 2026-272, appropriate grant award of $35 million for Section 108 Loan Guarantee Program. 308 00:34:53.048 --> 00:35:01.913 All right, so this ordinance appropriates award funds from HUD Section 108 Loan Guarantee Program for the city's use in supporting regulated affordable housing. 309 00:35:02.409 --> 00:35:11.697 The funds must serve households earning 0 to 80% AMI and can be used for property acquisition, conversion, or rehabilitation of existing affordable housing properties. 310 00:35:12.146 --> 00:35:16.396 So I will go ahead and hand it off to our colleagues in the Grants Office and the Housing Bureau. 311 00:35:17.583 --> 00:35:17.793 Go ahead. 312 00:35:18.130 --> 00:35:18.900 Good afternoon. 313 00:35:19.172 --> 00:35:20.552 Can you hear me okay? 314 00:35:21.594 --> 00:35:21.835 Great. 315 00:35:22.076 --> 00:35:23.134 My name is Kari Mosden. 316 00:35:23.197 --> 00:35:24.545 I'm with the Grants Management Division. 317 00:35:24.626 --> 00:35:28.251 I'm stepping in for Sheila Craig, who was taken away today. 318 00:35:28.570 --> 00:35:28.967 Not taken away. 319 00:35:29.036 --> 00:35:29.762 That's the wrong language. 320 00:35:31.250 --> 00:35:32.416 Pulled aside for other things today. 321 00:35:33.840 --> 00:35:42.545 So budget appropriation ordinance for the item that you just mentioned, appropriating the award for Section 108 Loan Guarantee Program for $35 million. 322 00:35:45.983 --> 00:35:47.454 Let me get— there we go. 323 00:35:48.748 --> 00:35:52.726 So this, as you have just outlined, I will just say again what you've just said. 324 00:35:52.773 --> 00:36:00.172 The ordinance amendment amends the budget to appropriate funds awarded by the U.S. Department of Housing and Urban Development into the grants fund. 325 00:36:00.909 --> 00:36:09.577 This grant application with SAP ID HC204 was submitted on July 1st, 2025. 326 00:36:10.443 --> 00:36:18.246 HUD notified the city of the Section 108 Affordable Housing Loan Fund award to the city in the amount of $35 million. 327 00:36:18.295 --> 00:36:24.208 Typically with awards, there is a period of performance, but there is not one with this award agreement that has been specified. 328 00:36:24.273 --> 00:36:24.449 Thank you. 329 00:36:25.025 --> 00:36:29.181 And the Housing Bureau expects to fund a pipeline of projects over a 5-year period. 330 00:36:29.775 --> 00:36:41.695 First loan may close as early as the end of 2027, meaning the repayment period would then run from 12/2027 to 12/2052, which is 20 years from the date of the final loan closing. 331 00:36:42.931 --> 00:36:50.117 The award does not require any matching funds, and it is intended to supplement, not replace existing city revenues. 332 00:36:52.088 --> 00:36:56.458 I'll just do a high-level overview of what the award will fund. 333 00:36:57.155 --> 00:37:05.414 It's seeking to support the creation of an affordable housing loan fund targeted to projects that create or preserve housing affordability to low- and moderate-income households. 334 00:37:06.184 --> 00:37:20.889 The proposed affordable housing loan fund seeks to address Portland's need to add 38,000 units of affordable housing to households earning 0 to 80% AMI by 2045, as described in the city's 2023 Housing Needs Analysis. 335 00:37:22.012 --> 00:37:34.173 The Portland Housing Bureau is in the process of developing a recommended spending plan as well as investment requirements and preferences for an upcoming solicitation for funding requests to use these Section 108 funds. 336 00:37:35.246 --> 00:38:05.202 And generally, Section 108 funds can fund the following types of projects: rehabilitation of existing regulated affordable rental housing and units owned by low and moderate income homeowners, acquisition and rehabilitation of existing office or residential buildings for conversion to affordable housing, and activities to facilitate new affordable housing development, including land acquisition, clearance, site preparation, infrastructure remediation, relocation, or other eligible uses. 337 00:38:06.277 --> 00:38:11.538 That is the end of my presentation, and I welcome questions about the award. 338 00:38:11.603 --> 00:38:11.778 Thank you. 339 00:38:12.420 --> 00:38:13.641 Process itself. 340 00:38:14.057 --> 00:38:19.858 We have some folks from the Housing Bureau if there are, uh, PHB-specific questions as well. 341 00:38:20.324 --> 00:38:20.436 Great. 342 00:38:20.485 --> 00:38:23.184 Before we do that, um, do we have folks to sign up to testify? 343 00:38:26.384 --> 00:38:28.164 We have one individual signed up. 344 00:38:29.784 --> 00:38:30.335 Would you like me to—. 345 00:38:30.577 --> 00:38:34.990 Without objection, are we okay to take that person and then come back to questions, committee? 346 00:38:35.090 --> 00:38:35.949 Okay, let's go ahead. 347 00:38:38.168 --> 00:38:43.827 Um, home-forward-cages-people-for-profit. 348 00:38:44.746 --> 00:38:47.923 End-the-suffering-now. 349 00:38:57.164 --> 00:38:58.032 That concludes testimony. 350 00:39:00.079 --> 00:39:03.509 All right, well then we'll go ahead with questions in the queue, starting with Councilor Koyama Lane. 351 00:39:05.507 --> 00:39:06.422 Thank you for being here. 352 00:39:07.273 --> 00:39:15.590 First, I wanted to say thank you and congratulations to the staff at PHB for working on this, for the work in securing the funding. 353 00:39:16.168 --> 00:39:23.313 I understand that these are long processes and appreciate the hard work and public engagement and dedication to this. 354 00:39:23.554 --> 00:39:24.516 Thank you. 355 00:39:25.159 --> 00:39:29.815 Wondering if we can hear a little bit more about the types of eligible projects. 356 00:39:30.713 --> 00:39:40.679 Looking to support through the Affordable Housing Loan Fund and also the outreach plan to— and how— what the intention is to let partners know more about this. 357 00:39:41.048 --> 00:39:41.449 Absolutely. 358 00:39:41.672 --> 00:39:45.664 I'll rely on my colleague Amanda Saul from the Housing Bureau. 359 00:39:46.961 --> 00:39:47.954 Good afternoon, everyone. 360 00:39:48.003 --> 00:39:49.862 I'm Amanda Saul with Portland Housing Bureau. 361 00:39:50.422 --> 00:39:51.271 Thanks for your question. 362 00:39:51.864 --> 00:39:56.047 I think we're still working on figuring out our implementation process. 363 00:39:56.675 --> 00:40:08.380 I think initially we will focus our— focus the funding on preservation of existing affordable housing projects because that's where we're seeing the most need in the community right now. 364 00:40:10.713 --> 00:40:13.813 So those are ones that are already in the process of—. 365 00:40:14.168 --> 00:40:26.059 Those are ones that are already— that already have affordable housing restrictions and may have had, you know, renters living in them for 20 or 40 years, and it's time to do a big rehab. 366 00:40:26.516 --> 00:40:34.324 Replace the roof, replace the HVAC system, sort of do a whole rehab plus financial restructure. 367 00:40:34.789 --> 00:40:38.077 And that's what these funds are often used for. 368 00:40:38.719 --> 00:40:45.679 And will PH be going out to do outreach to figure out those, or partners can come and say, hey, what about us? 369 00:40:46.096 --> 00:40:51.179 Yeah, we, we often, when we allocate our funding, do a solicitation process. 370 00:40:52.092 --> 00:41:02.565 And so We will create a solicitation that says these are our goals and priorities for this funding, and then people will, will bring us their projects and apply. 371 00:41:03.335 --> 00:41:03.978 Great, thank you. 372 00:41:04.300 --> 00:41:04.557 Yeah. 373 00:41:06.630 --> 00:41:08.286 All right, I am next in the queue. 374 00:41:08.398 --> 00:41:09.088 Thanks again. 375 00:41:10.005 --> 00:41:24.519 We all know that Portland is continuing to face a significant shortage of affordable housing, and one of the biggest barriers to getting projects built or preserved is access to So I see today's ordinance as adding another financial tool to our toolbox. 376 00:41:25.226 --> 00:41:35.130 And this action, while it appropriates the $35 million federal award, it's important that we remember that the Section 8— Section 108 program is not a traditional grant. 377 00:41:35.179 --> 00:41:41.568 So it's only allowing the city to borrow federally guaranteed funds and then relend them to affordable housing projects over time. 378 00:41:41.632 --> 00:41:48.632 So I do think that used responsibly, this can help stretch our local resources and make more affordable housing projects financially feasible. 379 00:41:48.762 --> 00:41:58.365 But at the same time, because the city is ultimately responsible for repayment, I think it's important that we understand how PHB plans to manage both the opportunities and the risks with the program. 380 00:41:58.414 --> 00:42:03.311 So you mentioned that PHB previously operated a Section 108 loan fund. 381 00:42:03.360 --> 00:42:08.965 Can you just talk me through what lessons from that experience are informing how this new program is going to be structured? 382 00:42:09.623 --> 00:42:11.021 Yeah, thank you for your question. 383 00:42:11.391 --> 00:42:14.728 I appreciate that you made it also very clear that this is a loan. 384 00:42:14.842 --> 00:42:17.360 This is not a grant to the city. 385 00:42:17.505 --> 00:42:18.836 This is a loan to the city. 386 00:42:19.976 --> 00:42:38.699 And so one of the things we're thinking about structuring this time is that we loan these funds to the project at the same interest rate and with the same term that matches the loan from HUD to the city so that repayment is more assured. 387 00:42:39.567 --> 00:42:40.947 In addition to that, we will—. 388 00:42:40.947 --> 00:42:41.139 Thank you. 389 00:42:41.813 --> 00:42:53.527 We plan to set aside part of our annual CDBG entitlement that comes to the city to help fund any gaps that might happen or lags in payment from the borrowers. 390 00:42:55.657 --> 00:43:01.998 And how do you envision this financing tool complementing PHP's existing affordable housing programs rather than duplicating them? 391 00:43:02.902 --> 00:43:17.070 Yeah, so, um, I think it could I think, you know, I could imagine this complementing PSEF funds to do preservation projects. 392 00:43:17.248 --> 00:43:21.306 So it's providing a low-interest loan, less than what the market provides. 393 00:43:21.739 --> 00:43:26.773 And in addition to that, some PSEF funds that support specific energy upgrades. 394 00:43:31.195 --> 00:43:33.291 I might have forgotten the second part of your question. 395 00:43:33.340 --> 00:43:33.534 I'm sorry. 396 00:43:33.632 --> 00:43:40.929 I was just curious if you could talk about yeah, I was just asking in general how we felt that we were complementing our existing programs. 397 00:43:41.106 --> 00:43:41.827 Yeah, thanks. 398 00:43:42.965 --> 00:43:56.378 Traditionally, PHB provides cash flow contingent subordinate loans to its— to our affordable housing projects, and those funds recycle over time. 399 00:43:57.387 --> 00:44:02.925 And this will be just like a little bit different because It will be a loan instead of a cash flow contingent loan. 400 00:44:03.510 --> 00:44:05.768 It'll be a hard debt, likely in first position. 401 00:44:07.387 --> 00:44:15.327