We are at a pivotal decision point in our collective and ongoing city-making and city-remaking responsibilities.
Depending on the choices we make, and how we spend tax increment financing, we can greatly influence affordability for perhaps the next two generations of Portland families.
Rarely have the stakes for Portlanders been higher.
The state legislature has been resistant to taking needed action on housing.
The current federal administration has made some phenomenally bad choices that now have them defunding many federal affordable housing programs.
In the FY 06-07 budget, we as a City Council backfilled some of the federal cuts on a one-time basis with local funds. But the City's General Fund cannot continue indefinitely to backfill all of these federal government affordable housing cuts.
State inaction and the federal government disinvestment in affordable hosing come at a very bad time for Portland - many local wages are not keeping up with the rising cost of living. We do not control things in Salem and we cannot immediately change the misadventures of the current federal administration, but until times get better with this nation's government, we must respond locally.
Are we going give in to gentrification or fight it? Are we going to be a city with a diverse range of incomes or are we going to be a city that hollowed out its middle class?
I know first hand that low-income families rarely make the leap to middle income status without getting help through tough times. And with this discussion about setting aside 30% citywide, we have the opportunity to municipally to actually do something to help poor families become middle income earners.
My approach is to raise the maximum indebtedness in increment districts where housing can be built to reach the 30% set aside. By raising the debt we do not raid projects already approved in each tax increment district. As always, if someone has a better idea, I look forward to hearing about it.
I want to thank Commissioner Erik Sten, Mayor Tom Potter, the Portland Development Commission and the Bureau of Housing and Community Development for shepherding this conversation. I look forward to the discussions ahead.
For more information about the proposal to set aside a percentage of urban renewal dollars, visit PDC's website [1]. Read The Oregonian's coverage here [2].