FY 2015-16 REVISED BUDGET FOR HOUSING EMERGENCY
Binding City Policy
Section 1. The Council finds:
1. On October 7, 2015 City Council passed Ordinance #187370 declaring a housing emergency.
2. The housing emergency requires additional funding in the current year for various property purchases, shelter costs, and other programmatic expenses totaling $2.75 million. The specific line item details for these expenses are include in Attachment A.
3. The General Fund unrestricted contingency balance of $1.1 million in the current year is not sufficient to fund the identified expenses. In order to achieve the desired results for FY 2015-16, other revenue sources need to be identified.
4. The Bureau of Revenue & Financial Services executed settlement agreements with online travel companies regarding the collection and remittance of hotel/motel taxes from bookings between 1999 and June 30, 2015. The online travel companies agreed to a gross settlement that included $1,613,248 to the City of Portland. Payment has been received from these companies and is available for recognition and appropriation in the City’s General Fund.
5. On May 13, 1987, the Portland Development Commission (PDC) and Rouse Company executed the Amended and Restated Disposition and Development Agreement (DDA) to develop the Pioneer Place project. This agreement provided PDC with the right to receive certain defined Participation Payments.
6. On September 9, 2014, General Growth Properties (GGP) sent the Portland Development Commission a formal offer for release of the 1987 DDA by paying a one-time Termination Payment.
7. On December 16, 2015, the Portland Development Commission passed Resolution No. 7158 that released GGP from their remaining obligation to make future Participation Payments in exchange for a cash payment of $12,500,000. Under a separate agreement between the City of Portland and the Portland Development Commission, the City is entitled to 9.1% of this cash payment or $1,137,500.
8. The $2,750,748 in new resources identified in sections four through seven should be recognized and immediately appropriated to the bureaus incurring the current year costs associated with the housing emergency.
NOW, THEREFORE, the Council directs:
a. The FY 2015-16 Appropriations Schedule is hereby amended as follows:
Portland Housing Bureau
Fund – 100
Business Area – HC
Bureau Program Expenses – $2,064,226
Office of Management & Finance
Fund – 703
Business Area – MF
Bureau Program Expenses – $686,522
Fund & Debt Management
Fund – 100
Business Area – FM
Interfund Cash Transfers – $686,522
b. The actions amending the FY 2015-16 budget contained in this ordinance are binding City policy.
Section 2. The Council declares that an emergency exists because the City lacks the necessary budget appropriation to address the current year needs of the housing emergency; therefore, this ordinance shall be in full force and effect on and after its date of passage.
Link to Attachment A (PDF Document, 338 kb)
Emergency Ordinance No. 187629, passed by City Council and effective March 16, 2016.