Portland Housing Bureau Budget Worksession Presentation Slide 1

Overview of Portland Over 257,000 households with roughly half, over 125,000, renter households 66% of renter households earn less than 80% of the area median family income, below $58,800 for a family of three; 30% of renter households earn less than $20,000 per year - $20,000 equals roughly a full time minimum wage worker Portland is currently experiencing increases in rent that are the highest annual increases in the nation Slide 2

Overview of Portland… In 2015, the average monthly rent for new rental housing units was $1,954, or $23,448 per year. A full time minimum wage worker earned roughly $1,603 per month, before taxes, in 2015 In 2015, a full time minimum wage worker would need to spend 78% of their income to meet the average rent in Portland Slide 3

Rental Affordability in Portland Rent increases of $130/month (+12%) in last 12 months Slide 4 3 Person Household Rental Affordability 30% MFI: $19,85060% MFI: $39,720 80% MFI: $52,950

Rental Affordability in Portland Slide 5 3 Person Household Rental Affordability White BlackLatino Native AmericanAsian

Homeownership Affordability in Portland 3 Person Household Homeownership Affordability WhiteBlackLatinoNative AmericanAsian Slide 6 A household of 4 at 80% Median Family income can afford a mortgage of about $200,000. Current median sales price in Portland for 2015 is $340,800 and anticipated to increase 5% in 2016.

Homeownership Interventions Identification of resources that can be used citywide in neighborhoods that are currently more affordable than the Urban Renewal Areas. Focus on developing new homeownership opportunities instead of relying on the availability of existing homeownership inventory Innovation: land banking, tax exemption programs for existing homes, employer assisted housing, lease to own programming, and mortgage guarantees Connect economic development resources to households pursuing the path to homeownership Slide 7

Portland Affordable Housing Actions Release of an unprecedented NOFA at $61 M, which is expected to have an economic impact of $180 M Tripling the size of the city’s affordable housing tax exemption program A 50% increase to the amount of urban renewal funding dedicated to affordable housing Dedicating short-term rental tax revenue to affordable housing Slide 8

Portland Affordable Housing Actions Reforming and expanding the city’s FAR density bonus and transfer program to prioritize affordable housing above other public benefits Renter protections that extend no cause eviction notice to 90 days and notice for increasing rent/housing cost by more than 5% set at 90 days Inclusionary Housing programs… Slide 9

What is Inclusionary Housing? For the purposes of this discussion: Inclusionary housing programs are local land use, regulatory, direct financing, fee waiver, tax abatement, or other incentive programs, that require or encourage private developers to include affordable units in new multifamily residential developments or that raise revenue for the provision of affordable units by the City. Slide 10

Inclusionary Housing Programming Active Programs Multiple-Unit Limited Tax Exemption System Development Charge Exemption Direct Financing Programs in Development Voluntary Incentive Zoning Affordable Housing Linkage Fee Potential Programs Mandatory Inclusionary Zoning Construction Excise Tax Slide 11

PHB investments in ending homelessness City general funds and federal HUD grants directly invested in: ◦ Supportive housing & rent assistance for vulnerable populations ◦ Short-term rent assistance & eviction prevention ◦ Shelter & emergency services ◦ Access & stabilization services Selected FY Outcomes 11,952 individuals served, 58% from communities of color 1,620 permanent housing placements (19% families, 40% disabled) 12

Joint City/County office focused on ending homelessness Implementation date July 1, 2016

Working together to: End veterans homelessness by end of 2015 Decrease by half the unmet housing need among people experiencing homelessness by June 2017 Prioritize options so that no women, children or disabled adults have to sleep on the streets in January 2017 Engage health care providers and funders in ending homelessness Increase the alignment of employment and housing support