Development News for Portland, Oregon

Portland Adopts Moderate Income Revolving Loan Program to Boost Housing Production

The City Council voted to adopt and implement the Moderate Income Revolving Loan Program (MERL), authorizing the city to access state funding (Senate Bill 1537) to provide grants for eligible housing projects. The program aims to finance housing for residents earning between 50% and 120% of the Area Median Income (AMI). Prosper Portland was initially designated as the program administrator, but after debate and amendment votes, the final ordinance did not specify an administrator, leaving that for future determination or potential IGA. Key amendments included removing the minimum unit count requirement, which was initially 75 units, then lowered to 20, and finally set to zero, as well as removing a preference for mixed-use developments. The ordinance also established a framework for tax exemptions for eligible projects using a fee-in-lieu option and clarified affordability requirements. The final vote on the underlying ordinance was 7-5 in favor.