On December 18th, the Portland City Council voted to authorize up to $300 million in grants from the Portland Clean Energy Community Benefits Fund (PCEF) to address the impacts of a changing climate. Within those approved eight grant applications, the 82nd Avenue Transit Project will receive $55,500,000 towards its Federal Transportation fund matching requirement for a planned Bus Rapid Transit (BRT) project on 82nd Avenue. The awarded amount is short of the $67 million requested but brings this project closer to meeting local funding goals, a critical step to securing federal support.
The 82nd Avenue Transit Project will replace the TriMet 72 bus line along 82nd Avenue from Clackamas Town Center to the Cully neighborhood with faster travel times. Planners anticipate project costs at approximately $362 million. Funds will purchase new 60-foot articulated zero-emission buses and extensive infrastructure along the BRT path. TriMet will reduce stops on its most used route and replace boarding locations with near-level bus platforms featuring shelters, lighting, digital schedule signage, and other amenities. Transit vehicles will spend less time in traffic through Transit Signal Priority upgrades to signal lights along the route, changing to green in sync with bus travel times. The project also funds $3 million towards training and apprenticeships in construction and clean energy careers for many PCEF-defined priority populations. PCEF’s designers recognized that people with low incomes, people of color, and people living with disabilities are some of the most impacted populations negatively affected by climate change.
In addition to improving the rider experience for the daily 11,000 72 bus line users, these transit improvements intend to reduce traffic congestion on 82nd Avenue and lower greenhouse gas emissions in the region. If fully funded, crews will reconstruct sidewalks and fill in missing walkway segments around new stations. Station design and sidewalk work will also include increased street tree placement to expand the urban canopy.
The 82nd Avenue Transit Project Steering Committee will vote on a final Locally Preferred Alternative (LPA) in winter 2025, allowing local and regional governments to vote on the proposal. After project partners complete a National Environmental Policy Act (NEPA) process, they can pursue a Federal Transit Administration Capital Investment Grant matched by local funding bolstered by this $55,500,000 PCEF grant. 82nd Avenue Transit Project planners anticipate construction will begin in 2027, with service starting in the summer of 2029.
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On December 5th, the Joint Office of Homeless Services (JOHS) held a community meeting about a new alternative shelter planned for the former RV sales lot at 1818 SE 82nd Avenue. This first community outreach gathering precedes a December 19th Multnomah County Board of Commissioners vote to fund the construction of this project. JOHS officials plan to have future community meetings and work on a Good Neighbor Agreement (GNA) after the County selects a service provider to operate the shelter site—presenters at the event anticipated service provider selection to occur in early 2025.
Community feedback at the meeting included many levels of concern for the proposed shelter’s operations and placement but also included some community support for the added short-term accommodations. Several residents felt this second county site was too close to another Multnomah County-owned location 15 blocks north on SE 82nd Avenue at 333 SE 82nd Avenue. Crews working for the JOHS are currently building the Oak Street Village there, and staff anticipates that sites will begin accepting residents in late January 2025. Other meeting attendees asked if the JOHS could delay work on the second site to give the neighborhood time to work through livability issues with the first site and learn from that experience to improve future site relations.
Illustration courtesy JOHS
Presenters and project designers leading this meeting intended to focus on design elements for the shelter site. Demolition crews will remove the current sales building on the property but salvage some wood roof beams for reuse in covered outdoor spaces. Staff and residents will access the site from SE Mill Street, where crews working with the Portland Bureau of Transportation will install new sidewalks and street trees and provide other road improvements as part of a separate project. Designers of the shelter site intend to erect a 7-foot-high fence around the property and provide signage and artwork at the perimeter that reflect community interests and values. Workers will remove sections of the asphalt pavement in the parking lot to create green spaces and a pet relief area. Portable units that will house showers, bathrooms, kitchenette space, and a laundry facility for residents are placed along the SE 82nd Avenue perimeter to create a sound barrier. Onsite parking is available for staff and service providers only. This site will not provide space for residents to park personal vehicles. Some neighbors questioned the placement of the trash enclosure on the property. However, designers felt its placement was necessary for trash hauler access. Despite efforts to keep the meeting focused on site design issues, audience questions often addressed programmatic functions and concerns regarding the site’s placement in the community.
Illustration courtesy JOHS
Parents living in the area and other attendees at the December 5th meeting expressed concern for the proposed shelter’s proximity to two public schools and a park. Bridger Creative Science School is one block west of the Mill Street site, and Harrison Park Middle School is several blocks southeast on SE 87th Avenue. JOHS representative Rory Cuddyer explained that his engagement group has communicated with both schools and anticipates their participation in the GNA creation process. Other presenters at the meeting addressed concerns about drug consumption at the shelter, indicating that it was not allowed at county-funded sites. However, due to the shelter’s low-barrier referral-only admission process, operators do not require sobriety for placement in one of the 38 free-standing sleeping pods. That raised other attendees’ concerns regarding drug use in the surrounding neighborhood. Select audience members and presenters noted that not all houseless people are drug users and that the full-time wraparound services offered at the shelter work to connect users to recovery services, in addition to other programs intended to move people into permanent housing.
Multnomah County Commissioner representing Montavilla, Julia Brim-Edwards, attended the meeting as an audience member, listening to all comments and speaking to individuals after the meeting concluded. Montavilla News first reported on the County’s purchase of the two properties in 2022. However, many attendees did not learn about this planned shelter until days before the meeting. Cuddyer explained that the County had an issue producing a mailer ahead of the first meeting, and staff hand-delivered notices instead. They intend to have a broader mailing out to area residents later in the process but encourage people to join the Montavilla Neighborhood Association‘s email list and follow updates on the JOHS project page to stay informed about upcoming community engagement. Cuddyer also urged people to provide comments if they wished at the December 19th Multnomah County Board of Commissioners session. People intending to provide public testimony on the vote must register by 4 p.m. on Wednesday, December 18th. To find the agenda item for this upcoming vote, check the County’s Board Meetings page the week of the meeting.
The article above originally published December 6th
Update December 18th, 2024: The JOHS posted a Frequently Asked Questions document on the 1818 SE 82nd Avenue shelter site’s project webpage addressing many questions received from the community expressed at the December 5th meeting. People intending to provide public testimony on the vote have until 4 p.m. on Wednesday, December 18th to register for Resolution R.1, seeking approval to “Proceed with Construction at the Harrison Community Village Project.”
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On December 9th, the Montavilla Neighborhood Association (MNA) voted unanimously to sign the Good Neighbor Agreement (GNA) for the Oak Street Village shelter site at 333 SE 82nd Avenue. The Multnomah County-owned property will open to temporary residents in early 2025, and formalizing a community agreement is a significant step toward launching this shelter. The 32-page non-binding document covers the signers’ shared commitment to adhere to their agreed responsibilities and follow set communication standards to resolve conflicts.
The GNA signers include the Joint Office of Homeless Services, the City of Portland, shelter services providers Straightway Services, the Montavilla East Tabor Business Association, and the MNA. Each party has distinct responsibilities and roles in the agreement, and the GNA can update through its duration with the consent of the signers. The MNA sees the Community Advisory Committee formed by the GNA as a critical part of the document’s strength. That committee meets monthly with members from each signing party and village residents to review operations in a collaborative problem-solving format. This continual engagement ensures the parties maintain strong lines of communication and identify opportunities for collaboration between the village participants and the Community.
The GNA establishes an Engagement Zone bordered by the west side of SE 80th Avenue, the east side of 83rd Avenue, the north side of SE Ash Street, and the south side of SE Stark Street. The City will grant high-priority services within the defined area, and the site operator commits to regularly engaging with people in the zone to limit community impacts around Oak Street Village. The prioritized city services include the removal of unsanctioned campsites or abandoned vehicles, emergency calls, non-emergency calls, and cleaning services. The City has to adhere to its policies regarding each service but agrees to rank occurrences higher in the Engagement Zone.
Zone map from GNA (Engagement Zone – Red, Good Neighbor Zone – Blue)
The GNA states that the service provider will initially favor referrals into Oak Street Village from Montavilla’s unsheltered population, potentially reducing the number of persistent unsanctioned campsites in the neighborhood. This site prioritizes individuals living in vehicles who want to keep their car while moving into sleeping pods. Oak Street Village supports people making that transition by offering onsite parking for one personal vehicle per resident. This somewhat unique shelter feature generated many questions from neighbors during community engagement meetings. The GNA includes Straightway Services’ written policies, which outline the provider’s prohibition of onsite vehicle repair, prolonged idling, sleeping in a vehicle, or extensive property storage in the cars. The cars must fit within the marked parking stalls, blocking the storage of recreational vehicles or other oversized trucks. Owners of parked cars leaking fluids must use drip pans and properly dispose of hazardous materials to prevent runoff contamination of the stormwater system.
The agreement also covers future site placement, limiting Multnomah County’s expansion of the JOHS Community Sheltering Strategy within the Good Neighbor Zone. The Good Neighbor Zone surrounding the Engagement Zone is bordered by SE 75th Avenue, SE 88th Avenue, E Burnside Street, and SE Yamhill Street. It also has an extension from E Burnside Street up NE 80th Avenue and NE 82nd Avenue to incorporate the Vestal School. This agreement and other potential sites with a similar GNA will significantly reduce the potential for more County-owned sites along Montavilla’s section of 82nd Avenue.
The GNA mandates the regular collection of metrics to track the shelter’s impact on the neighborhood. Members of the Community Advisory Committee will monitor the data, which will become publicly accessible through existing dashboards and other group communications. As the County prepares a second site at 1818 SE 82nd Avenue, this GNA will likely play an influential role in that site’s Good Neighbor Agreement. The other parties will have to sign the document, but JOHS leaders expect that will happen before the residents begin moving into the 333 SE 82nd Avenue site.
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Harrison Birds Eye View titled image courtesy JOHS
This proposed shelter at SE 82nd Avenue and Mill Street is just 15 blocks south of the site under construction. Several JOHS documents refer to the site as Harrison Village. However, County staff changed the working title for Oak Street Village during community engagement, and the Harrison Village name could be a placeholder. JOHS plans to install 38 sleeping pods and larger portable units that will house showers, bathrooms, kitchenette space, and a laundry facility for residents. Like other shelters of this type, outreach specialists refer people into this temporary housing, and residents receive case management with the support necessary to move into more stable housing.
JOHS staff anticipate that this second County-owned Montavilla shelter will begin serving unhoused community members in late 2025. Organizers ask that people RSVP for the 6 p.m. meeting that will take place within the Montavilla United Methodist Church at 232 SE 80th Avenue. Attendees will learn more about the JOHS plan for the site and have the opportunity to provide feedback about the project’s design layout. The hour-and-a-half meeting should conclude around 7:30 p.m. People interested in staying informed but unable to attend the Thursday night gathering can follow the JOHS site for details.
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On November 12th, the Montavilla Neighborhood Association (MNA) held its annual election, adding two new board members and reelecting Louise Hoff for another two-year term. The membership also voted to update language in the group’s bylaws to remove membership term limits and mail notification requirements for shorter annual meeting notices, along with other minor updates. Due to an access issue, the in-person meeting was relocated from its planned location to Montavilla Brew Works at 7805 SE Stark Street.
New board members Steph Cleary and Colleen Howard received unanimous approval from 21 ballots, as did the write-in incumbent Louise Hoff. Cleary is a freelance writer and is a former high school English teacher. She will take on the Secretary board position, freeing former Secretary Spencer Knowles to take the newly renamed leadership position of board President. Howard has lived in Montavilla for 40 years and is a retired nurse. She wants to use her sense of strong community involvement to keep Montavilla a “great place for everyone.” Hoff, a former board chair, will continue to lead the Parks committee for the neighborhood. Sarah Hartzel will continue in the Treasurer position, and Laura Mulligan will remain in the second leadership position with its new designation as board Vice President. Hartzel will continue to serve as the Neighborhood Coalition Delegate until another board member takes on that role and the SE Uplift board accepts their nomination from the MNA.
Neighborhood Coalition Executive Director for SE Uplift, Nanci Champlin, oversaw the election and provided the posted notice of the venue change at the Montavilla United Methodist Church. Montavilla Brew Works opened its covered outdoor seating for the MNA members and turned on their heater, quickly warming the space during the rainy night. A few members purchased pints to support the business offering last-minute meeting accommodations.
Prior to the elections, Spencer Knowles presented the proposed bylaws updates. The bylaws remained unchanged since its last review in 2015, and community concern over membership eligibility requirements expressed during the 2023 board elections prompted a reevaluation. All but two members voting by raised hands approved the bylaws edits. In the changes, the MNA determines eligibility by an adult person’s primary residence, rented or owned, existing in the Montavilla boundary. Owners of property or a business are allowed membership. Alternatively, one representative from a business or organization within the neighborhood can join on that group’s behalf. The updates also removed the three-year term limit on membership, allowing people to retain members until they are no longer eligible. Neighborhood youths 14 to 17 can become members with parental permission, and anyone can still request membership exceptions from the board to join.
The bylaws no longer require an Election Committee to manage elections, shifting that responsibility to the board. Updates to the board officers listed in the bylaws now use the term “President” instead of “Chair” and added Neighborhood Coalition Delegate to the list of officers. In other new language, the bylaws retain the required seven-day member notices of an upcoming Annual Meeting but no longer need that notice to happen by Postal mail if not presented within 30 to 60 days by communication in another form. People can review all updates that include minor word changes in the proposed bylaws document.
Although the annual election is the most efficient way for people to join the MNA board, processes allow mid-term board appointments. People wanting to serve should contact the MNA to learn more. Perpetual free general membership is now as simple as attending a meeting and affirming that you meet the requirements and want to join. The MNA recommends people subscribe to the non-profit’s email newsletter to stay up to date. More information is available at montavilla.org.
Disclosure: the author of this article served as MNA Board Chair until 2023
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On October 30th, the Portland City Council approved six new Tax increment financing (TIF) districts that will set the stage for more than $2.5 billion in focused investment in those geographic areas over the next 30 years. Three of the approved districts encompass vast sections of East Portland, including most of 82nd Avenue and half of Montavilla. At the same session, the City Council passed a related Resolution to review Portland’s Set Aside Policy, which requires 45 percent of TIF funds to support affordable housing.
TIF is a funding tool for physical improvements to a specific geographic area. Although funding comes from people’s property tax payments in that District, it does not raise tax rates on its own. Instead, it freezes the portion of the taxes sent to the County and City general funds at its current level and then diverts any increases to a special fund that TIF districts can use for projects in the area where those funds were collected. Because of Ballot Measure 50 passed by voters in 1996, property tax increases are mostly capped at three percent annually unless the county reassesses a property due to construction or other upgrades. After the first five years, the City can issue bonds based on that expected three percent TIF district income, providing capital for projects in the district years ahead of collection. TIF offers the benefit of reserving a segment of tax dollars for use in the community where it’s collected instead of spreading tax funds across all areas of the City. Portland mandates 45 percent of TIF funds towards affordable housing, a policy that has led to 47 percent of Portland’s affordable housing units residing in former TIF districts.
A year ago, Prosper Portland began working with community members in the proposed areas to create new urban renewal districts in the Central City and East Portland. Prosper Portland focused its East Portland TIF Exploration on the Sumner-Parkrose-Argay-Columbia Corridor, East of 205 centers, and the 82nd Avenue area. During that year, group and community representatives participated in Steering Committees and Working Groups to shape the TIF plans to meet specific goals within the district. People attended numerous public meetings and submitted feedback through comments or surveys. The unanimous City Council vote on October 30th represents the final step in authorizing the TIF districts. Starting in 2025, Prosper Portland will begin forming the Community Leadership Committee (CLC) for each TIF district. CLC members will work on the first five-year Action Plan that uses the limited early funds to meet goals shaped by the working groups. As with many other modern TIF districts, early work in the 82nd Avenue district focuses on stabilizing vulnerable communities and preventing displacement. TIF districts receive relatively low funds during the first five years due to the incremental tax revenue growth that increases by around three percent a year. After five years, bonds can help even out spending in the district over the next quarter-century.
82nd Avenue District Map courtesy Prosper Portland
In October 2015, the Portland City Council approved Ordinance 187415 that amended the City’s 30 percent affordable housing Set Aside Policy to a citywide target of 45 percent within active TIF districts. During the October 30th, 2024, City Council discussions, Portland Mayor Ted Wheeler recalled that the percentage increase was an estimate, and council members at the time expected a revaluation to occur after five years. Based on this past expectation of review and an expressed challenge to the percentage by Commissioner Rene Gonzalez, Mayor Wheeler and Commissioner Carmen Rubio proposed a Resolution directing the City Administrator to review the current Set Aside Policy in collaboration with Prosper Portland and the Portland Housing Bureau. After working with public, private, and community stakeholders, the City Administrator’s review team will brief Prosper Portland’s Board of Commissioner and return to City Council with recommended amendments by November 30, 2026.
At the objection of Mayor Wheeler, City Council approved two amendments to the Set Aside Policy Review Resolution that elevated affordable home ownership. Commissioner Mingus Mapps’ amendment significantly altered the Resolution by dictating that recommended amendments will include affordable housing Set Aside Policy at “a minimum of 20% for affordable homeownership activities with a remaining 25% allocated to other affordable housing work” in the three East Portland TIF Districts. Mayor Wheeler’s objections centered on the prescriptive nature of this amendment, which could force reviewers to override input on affordable housing ratios in one part of the city. For East Portland residents critical of city leadership’s treatment of their community, this is another example of elected officials overriding their voices. A benefit of Commissioner Mapps’ amendment is it will secure the 45 percent affordable housing set aside minimum for the East Portland TIFs. Ultimately, the 2026 City Council will have the option to consider the proposed amendments with the understanding that the affordable homeownership ratio could be a disingenuous number.
Glisan Landing Affordable Housing in Montavilla (Jacob Loeb)
The new wave of TIF districts, approved on October 30th, has the potential to invigorate development in their respective communities and expand the stock of affordable housing while working to reduce the displacement of residents and small businesses. The details of the TIF-funded projects will come from the five-year Action Plans crafted by CLC members and Prosper Portland staff in a co-creation process. Results will take years to materialize in each district. However, the funding mechanism needed for positive transformation can now begin collecting money in the 2025-2026 fiscal year. For 82nd Avenue and Montavilla, residents can expect increased funding towards improvements over the next three decades, with more affordable housing and infrastructure updates.
Disclosure: The author of this article served on the 82nd Avenue TIF Working group and voted in favor of forming the district.
Commissioners Rene Gonzalez, Carmen Rubio, Mingus Mapps are running for Portland Mayor. Commissioner Dan Ryan is running for City Council District 2. Montavilla News does not endorse candidates or ballot measures.
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On Thursday, October 17th, TriMet leaders and members of Oregon’s congressional delegation gathered in a warehouse on NE Columbia Boulevard to address attendees. This celebratory event marked the $69 million public investment that will transform a former industrial site into a hub for hydrogen fuel-cell electric buses that will serve 82nd Avenue. Federal funds will help TriMet purchase the organization’s first zero-emissions buses powered by hydrogen and build the support infrastructure needed to operate the environmentally friendly fleet.
The Columbia Operations Facility is a vital component of TriMet’s transition to a zero-emissions bus fleet with a capacity for 250 buses. With a targeted completion date of 2030, the former Caterpillar Power Systems dealership site will play an essential role in meeting state and regional climate goals. The public transportation provider intends to replace its diesel vehicles over the next 15 years as it strives to operate an entirely zero-emissions bus fleet by 2040. In 2022, TriMet switched to renewable diesel for all fixed-route buses and WES vehicles. Earlier this year, they began taking delivery of new battery electric buses.
Conceptual rendering of TriMet’s Columbia Operations Facility
TriMet General Manager Sam Desue Jr. explained that the transition to zero-emissions technology will significantly impact the region’s climate goals due to the region’s sizable transit usage. “Where home to more than 1.6 million people. Our region is the 23rd largest metro area in the country and the 13th highest transit ridership,” said Desue. “As Oregon’s largest consumer of diesel, TriMet’s switch to renewable diesel made the state’s transportation industry greener. And now, with TriMet adding hydrogen fuel-cell electric buses to our zero emissions bus fleet, we will help create demand for green hydrogen hubs here in the Pacific Northwest.”
Eighty-second Avenue will become an early user of the hydrogen fuel-cell electric buses as TriMet works to convert its highest ridership, line 72, to a faster system. “The federal funding we’ve received will also help purchase TriMet’s first hydrogen-powered buses that will run along our future FX or Frequent Express bus rapid transit line, which will be coming at 82nd Avenue in the years ahead. These buses will be powered by cutting-edge hydrogen technology that will emit zero pollution into the communities that we serve,” explained Desue.
Event Speakers. Left to right: TriMet General Manager Sam Desue Jr., U.S. Representative Earl Blumenauer, and U.S. Representative Suzanne Bonamici
As a longtime advocate for improving 82nd Avenue, U.S. Representative Earl Blumenauer’s remarks focused on the opportunities these investments will bring to a transforming district. He noted the road’s history as a freight and private vehicle conduit has caused harm to the surrounding communities, but this project can make needed repairs. “Legacy highways have played a critical role in Oregon and around the country but no longer serve that purpose. They don’t work well, they’re dangerous, and they don’t invite development,” said Blumenauer. “I think we have an opportunity to transform a street that divides the region into a corridor that’s going to unite us.”
Event Speakers. Left to right: TriMet General Manager Sam Desue Jr., U.S. Representative Suzanne Bonamici, and U.S. Representative Earl Blumenauer
Funds for TriMet’s Columbia operation facility upgrades and the hydrogen fuel-cell electric buses come from multiple sources. A U.S. Department of Transportation grant from the Rebuilding American Infrastructure with Sustainability and Equity (RAISE) program provided $25 million, with another $5 million from community-initiated programs and the federal budget. However, a $39 million Federal Transit Administration contribution from its Low or No Emission Grant Program provided the bulk of the $69 million public investment. U.S. Representative Suzanne Bonamici celebrated the joint effort of the Oregon Congressional Delegation in obtaining this level of federal funding for a regional transportation project. “I understand and appreciate that it is the responsibility of the federal government to provide resources when projects are so big and so critical, and the local jurisdictions just can’t do it on their own. So that’s part of our role,” said Bonamici.
Conceptual rendering of TriMet’s Columbia Operations Facility
Closing remarks at the event recognized the enormous collection of people who contributed to this milestone and celebrated the green jobs created by this project at the Columbia facility. “We will train more operators, more mechanics at this location. This site will support hundreds of family wage union jobs,” exclaimed Desue. The site will look significantly different as new buildings replace the industrial landscape with environmentally supportive infrastructure that can improve communities across the Portland Metro area. Already, road users are seeing crews building new sidewalks, traffic signals, and road improvements in front of the TriMet facility at 4421 NE Columbia Boulevard. As TriMet readies for a hydrogen-powered future, work will continue on the NE Columbia Boulevard facility and eventually along 82nd Avenue.
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On Thursday, October 10th, demolition crews with Buildskape razed the single-story auto sales building on the Multnomah County-owned property at 333 SE 82nd Avenue. As they prepared the site for an alternative outdoor shelter, workers removed the signage and high-intensity light poles used by RV and automotive sales tenants over the last several decades. In early 2025, people transitioning out of houselessness will begin moving into 29 one-room sleeping pods and receive support from site operator Straightway Services.
At an October 9th community meeting, engagement coordinators with the Joint Office of Homeless Services (JOHS) announced the final name of the shelter site. Up to this point, JOHS referred to the project under the working name of Montavilla Community Village. After consulting with community groups and business association members, officials selected the site name Oak Street Village. This final name establishes its location and will disambiguate it from a planned second Montavilla shelter location further south at SE 82nd Avenue and Mill Street. That other location will start development next year, with residents expected in 2026.
With the site nearly cleared of debris, crews will soon begin digging trenches for water and sewer infrastructure connecting to portable units that house showers, bathrooms, kitchenette space, and a laundry facility for residents. The site uses Pallet branded shelters for the eight-by-20-foot shed-style sleeping pods. Residents and staff will have 33 onsite parking spaces, trash services, and other communal spaces for pet relief and covered outdoor seating. Straightway Services staff members operate the site 24 hours a day, working from the office building at the SE Oak Street entrance.
Oak Street Village site rendering courtesy Multnomah County
Up to 40 adults can reside at the Oak Street Village. That number varies based on the number of couples staying at the shelter who can share a single sleeping pod. The JOHS-funded program intends for guests to have a limited stay at this site and use it as a stepping stone to finding stable housing. Rules of the shelter prohibit the use of illegal substances and alcohol. People may not possess dangerous weapons at Oak Street Village, and visitors are not allowed unless they are part of an approved support service. Residents will abide by quiet hours from 10 p.m. to 7 a.m., and Straightway Services will answer an onsite phone line available to the public to respond to questions or hear neighbor’s concerns.
These Oak Street Village policies and other considerations are part of a community engagement process that includes a lengthy Good Neighbor Agreement (GNA) working group process that is wrapping up ahead of the site’s opening. Representatives of the JOHS, Straightway Services, Montavilla Neighborhood Association, Montavilla East Tabor Business Association, and the City of Portland participated in the process and will sign the agreement. That document calls for a community advisory group to track set metrics for area livability and will meet quarterly to review and advise on changes that could improve conditions.
Montavilla News first reported on the County’s intentions for two former RV sales sites along 82nd Avenue at the end of 2022. Over the last two years, the County increased its engagement strategy and held several community meetings. Organization representatives on the GNA working group described the process as productive at the October 9th meeting. They said people can view a complete version of the document at an upcoming neighborhood association meeting planned for later this year. Once signed, it will become a public document for anyone to read, with amendments and other relevant data appearing online. Construction crews will work on the site over the next three to four months before Straightway Services takes over the property to ready it for guests’ arrivals around February 2025.
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On September 11th, Prosper Portland presented a report to Portland City Council on six proposed Tax Increment Financing (TIF) districts. After the presentation, Commissioner Rene Gonzalez questioned the merits of the city code requiring 45 percent of TIF funds set-aside for affordable housing in those districts. Based on comments during the session, the pending changes to the city’s form of government and a shift from past developer-friendly policies by the bureau prompted his objection. It is a sentiment supported by a business development advocacy group whose CEO recently penned an opinion piece published in the Oregonian.
Portland City Council adopted a TIF set-aside Policy for affordable housing in 2006, and that percentage of funding dedication increased from 30 percent to 45 percent in 2015. A 2024 ECOnorthwest TIF district investment impact report highlighted the policy’s effects across nearly two decades of development post that City Council change to TIF. The report found that 47 percent of all affordable housing in the city now resides within former TIF districts, and those areas experienced subsequent market-rate housing production growth four times greater than in other comparable segments of the city. Portland’s modern application of TIF differs from its historic Urban Renewal past, which removed housing for freeways and large civic projects. Current district proposals and recently approved TIF districts take a more holistic approach to economic development that aims to prevent displacement. Those new priorities strengthen communities before investing in large transformative projects like new parks, MAX light rail, or street grid enhancements similar to the Broadway Corridor Redevelopment plans.
Commissioner Gonzalez’s post-report comments did not question the need for housing or directly challenge the efficiency of past affordable housing production funded by TIF districts. However, they contested Prosper Portland’s ability to develop significant projects within TIF districts due to the current level of affordable housing required. “All of these choices have trade-offs. It’s great to talk about the plusses but also understanding the opportunity costs. And one of the biggest critiques that we discussed about Prosper over the last 15 years is the ability to deliver big projects, and we’re taking away tools from Prosper again to solve specifically one of the many problems we have in our community,” said Gonzalez.
Members of Prosper Portland and the Portland Housing Bureau addressed the Commissioner’s questions, supporting the current integration of affordable housing in TIF spending while reframing the assertion that Prosper Portland’s current approach has pulled back from all other areas in favor of affordable housing. “My top line assumption is that affordable housing and the resources that have gone to affordable housing if you compare the year 2000 to the year 2024, there’s a much higher level of investment in affordable housing. If you were to compare the kinds of investments that we’re making in public, private partnerships that support commercial development or major Community priorities, it’s probably about the same. What I think has declined precipitously since 2000 is the amount of funding that’s going into infrastructure,” explained Kimberly Branam, the outgoing Executive Director of Prosper Portland.
Although infrastructure support from TIF funds has declined in recent decades compared to past urban renewal spending, they have not disappeared. Infrastructure investment and projects that hasten gentrification are now shifted later in the TIF lifecycle. Modern TIF planning focuses on community stabilization ahead of significant project investment, strengthening existing residents and businesses against displacement before rents rise. This approach attempts to improve neighborhoods for the people already there, using the tax dollars collected in that district for its benefit. These programs now encourage private development and transportation funding but share economic growth with existing communities instead of predominantly benefiting private investment. “Historically, when you look at many TIF districts that were neighborhood TIF districts, a lot of them were anchored by a potential for new light rail lines. The challenge with having the first [TIF] investments out of the gate focused on the local match for federal [transit] investments is that then, you don’t have resources for the first five to ten years for other priorities. So the desire that we’ve heard is let’s learn from the lessons [of past TIF districts] and make sure that we’re stabilizing communities early on as those major infrastructure investments take place,” said Branam. “So along 82nd, as you’re planning for major investments, I think there’s a desire to make sure that early investments go towards the kinds of things that help small businesses purchase their property and homeowners stay in their homes,”
Portland Housing Bureau Director Helmi Hisserich reinforced the need to stabilize housing ahead of infrastructure investment as a tactic to fight gentrification and make more efficient use of public funding. “There is a direct corollary between major investments in the public sector, such as transportation and open space –which are very desirable– and the increase in property value, housing prices, and displacement,” said Hisserich. When public works projects increase area property value, the inflated costs for land will eat into the government’s budget for affordable housing developments. “Our current approach to affordable housing is to invest at the tail end, taking all of that value increase into our cost of that housing. So I think we need to be talking about a strategy where we’re investing early,” remarked Hisserich.
Commissioner Gonzalez expressed a perspective that the city is more vulnerable than when City Council first enacted this affordable housing funding policy. “Set-aside and the theory behind it goes back to 2006 [when] the city was booming. We were doing quite well at creating big projects and doing quite well at building. We were concerned that we were leaving people behind and so that it was not shared economic prosperity. I want to make space for this Council not to just hand off policies to the next Council that are based on very different assumptions. I think we are in a very different place in 2024 than we were in 2004. We’re not generating big projects, market [rate] housing has collapsed. I mean, we’re looking at a downtown armageddon if we don’t significantly change this trajectory,” said Gonzalez. He also noted that middle-income housing production is still relatively weak, and many Portlanders earn too much to qualify for the affordable housing TIF funds create. However, the greatest need for housing remains in the regulated affordable segment.
Lisa Abuaf, the Director of Development and Investment for Prosper Portland, addressed the agency’s efforts to support middle-income housing and the headwinds to working as a catalyst for middle-income housing creation. “We actually set aside a portion of our citywide funds to support middle-income housing. I want to acknowledge middle-income housing is not regulated affordable and you don’t have the federal programs to tap into. So it’s really challenging because we’re very dependent on what’s happening in the private debt and equity market. I think that’s actually what we’re seeing right now, and the volume of resources we have today in TIF can’t take the place of what has been private investment to date.” said Abuaf. Helmi Hisserich also cited an increased need for regulated affordable housing above all others. “While middle[-income] housing is a great area when we talk about affordability, 53 percent of the housing need is in households earning below $81,000 a year.” In 2024, a household of three people earning 80 percent of the Median Family Income would make $84,960 and could qualify for many TIF-funded affordable housing.
In Monique Claiborne’s opinion piece published in the September 15th Oregonian, she echoed the Commissioner’s desire to reexamine the affordable housing requirements. Claiborne is CEO of the regional economic development group Greater Portland Inc., a private agency that bolsters business development in Portland and surrounding areas. The article reiterates Commissioner Gonzalez’s perspective regarding TIF’s required affordable housing percentages and argues for returning Prosper Portland’s independence from the City Council before the new year’s changes to City Council. Since 2007, city leaders have gained increased control over Prosper Portland’s activities and budgets. Changes to Prosper Portland control and TIF allocations are not yet under consideration at City Hall. However, these comments could represent a test to see if there is support for rolling back changes made to TIF district project allocation and Prosper Portland’s operational stance.
With many officials and research pointing to housing costs as a leading factor for Portland’s social problems, initiatives removing funding sources for affordable housing would likely fail to receive widespread support. However, Commissioner Gonzalez’s suggestive inquiries and Monique Claiborne’s opinion piece show signs of a growing cohort seeking change in TIF district set-aside percentages. People should expect more discussion of affordable housing set-aside in the coming months before a new 12-person City Council takes control. Prosper Portland staff committed to bringing additional information to the October 23rd City Council public hearing on TIF District Exploration.
Disclosure: The author of this article served on the 82nd Avenue TIF Working group and voted in favor of forming the district that includes a 45% affordable housing set-aside.
Commissioner Rene Gonzalez is running for Portland Mayor. Montavilla News does not endorse candidates or ballot measures.
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Over the next 30 years, more property tax dollars collected in parts of East Portland could go directly towards projects in that geography. If evaluators recommend new Tax Increment Financing (TIF) expansion to Portland City Council later this year, Portland could gain new TIF Districts along 82nd Avenue, East of Interstate 205, and in the Parkrose-Columbia Corridor. In 2023, Portland City Commissioner Carmen Rubio’s office convened an East Portland TIF Exploration Steering Committee to identify three possible TIF locations. That work progressed to the next phase of investigation in November 2023 with the formation of working groups charged with creating TIF boundaries, guiding principles, and permissible project lists. Those groups of community members, organization leaders, and business people must also communicate with the people in the affected area to determine if a TIF District is the right project funding tool for each proposed District. Community members can learn more about TIF and voice their opinions at TIF Open Houses this May.
Tax Increment Financing (TIF) is a funding tool for physical improvements to a specific geographic area. Although funding comes from people’s property tax payments in that District, it does not raise tax rates on its own. Instead, it freezes the portion of the taxes sent to the County and City at its current level and then diverts any increases to a special fund that TIF Districts can use for projects in the area where those funds were collected. Because of Ballot Measure 50 passed by voters in 1996, property tax increases are mostly capped at three percent annually. The City can issue bonds based on that expected three percent TIF District income, providing capital for projects in the District years ahead of collection. TIF has the benefit of reserving a segment of tax dollars for use in the community where it’s collected instead of spreading all tax funds across all areas of the City. Portland also dedicates 45 percent of funds collected towards affordable housing, a policy that has led to TIF districts now supporting 47 percent of Portland’s affordable housing units. Even with those upsides, forming a TIF District has the potential to cause harm to communities and has displaced people for decades under another name, Urban Renewal.
Past Urban Renewal projects used TIF District funds to fuel the destruction of communities across the country by demolishing “blighted” neighborhoods. The municipalities created new infrastructure and other public works in those areas, causing displacement and gentrification. The Albina neighborhood stands as a prime example from Portland’s past, where Urban Renewal displaced hundreds of Black families and businesses by creating Interstate 5 and other public projects where people once lived. However, even the relatively recent Interstate TIF District caused substantial displacement in the corridor surrounding the MAX Yellow line. Consequently, Prosper Portland adopted a new approach to implementing TIF Districts that relies on community guidance and early anti-displacement work. Portland’s newest TIF District in the Cully neighborhood spent nearly four years shaping a plan to fund projects meant to strengthen the existing residents while improving conditions. Approved in November 2022, the Cully TIF District is too young to prove this new model, and it will take years to see if it can meet all its goals. However, the three new TIF Districts under consideration will leverage the Cully work in an effort to create an equitable tool for funding improvements and provide community stabilization during a transformation already underway.
The issues around TIF District formation are complex. Past projects have shown that an improvement for some can cause injury to others, and it often disproportionately harms people from communities of color. It is essential that a variety of residents participate in conversations, learning about the positive impacts and helping shape risk mitigations that will prevent harm. Montavilla Residents can attend the May 6th meeting in The Orchards on 82nd building at 8118 Southeast Division Street from 6 to 8 p.m. or the May 9th meetings held in the African Youth & Community Organization (AYCO) building at 2110 SE 82nd Avenue. All three sessions are presented in English with translators available for Cantonese at 6:15 p.m., Vietnamese at 6:50 p.m., and Somali at 7:20 p.m. Attendees are asked to pre-register online for the Orchards meeting and the AYCO meeting. For people looking to attend on another day or are more invested in the East of I-205 TIF, there is an event on Saturday, May 11th, from 11 a.m. to 1 p.m. in the Gethsemane Lutheran Church at 11560 SE Market Street. People can request translation services when registering online.
Update: Added additional meeting information for May 6th event.
Disclosure: The author of this article serves on the 82nd Ave TIF Working Group. It is a unpaid volunteer position. However, participants can receive honorariums for attending each meeting that have a cash value. Montavilla News does not endorse candidates, ballot measures, or government initiatives. The Authors participation in this Working Group and votes should not be considered the opinion of this publication.
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