Investing in East Portland and Central City

I want to share an exciting update about our recent partnership with community to bring desperately needed investments in economic revitalization and stabilization to Portland.

Under my direction, Prosper Portland and the Portland Housing Bureau have been exploring new Tax Increment Financing (TIF) districts in East Portland and the Central City. That process is now complete, and community-endorsed proposals for six new TIF districts are moving forward for adoption this fall! Please join me in thanking everyone who participated in shaping the future of Portland.

TIF is a long-term source of public funding that can be invested in community priorities for physical improvements within specific areas of Portland. It is not a new tax: Once created, these TIF districts will capture increases in property taxes that happen over time and invest the increase within set geographic areas to support local priorities related to housing and economic development.

TIF resources have been one of the most significant ways that we fund the construction of new affordable housing. To date, half of the affordable housing in Portland was created with the help of TIF. More recently, TIF resources have increasingly been used to help stabilize and support small businesses and residents in neighborhoods experiencing gentrification and displacement – for example, with grants that allow an entrepreneur to install a commercial kitchen or help a family buy their first home.

As we look toward the future, new TIF districts have the potential to create new dedicated funding streams to advance our shared priorities in East Portland and Central City.

In East Portland, as private market pressures intensify, there is an urgent need for stabilization of existing business and residents and inclusive economic growth. According to the City’s 2022 State of Housing Report, between 2016 and 2021, four neighborhoods in East Portland showed the most significant increases in median home sales price, which disproportionately affect low-income communities and communities of color. Here are the proposed East Portland TIF districts:

Meanwhile, our Central City is experiencing longer-term and more permanent changes as a result of the pandemic and increased remote work. While office buildings sit empty, high interest rates and rising construction costs have impacted the production of housing within the Central City. At the same time, a handful of large-scale redevelopment efforts are gaining steam, and there is an opportunity for targeted public investments to help move these catalytic projects forward and create new, mixed-income neighborhoods on both sides of the Willamette River. Here are the proposed Central City TIF districts:

The work is not done yet! The six proposed districts will be presented at Prosper Portland’s board meeting August 28th. This will be followed by a Council report on September 11th and a public hearing then Council vote in October.

I want to share my sincere gratitude to all of the community stakeholders who participated in this exploration process, including those who dedicated hours and hours over the past year to participate in one of the steering committees or work groups, as well as those who took the time out of their busy schedules to attend an event to learn more and share their feedback.

TIF is a powerful tool to help keep people and businesses in their neighborhoods and create a Portland where everyone has an opportunity to thrive. Your input, passion, and dedication to your neighborhoods were essential to the work. 

* * *

I also want to celebrate a major milestone involving the Broadway Corridor, site of the former central post office between Old Town and the Pearl District.

A new, vibrant, diverse neighborhood is coming to the heart of our city! The Portland Housing Bureau just awarded more than $40 million for Broadway Corridor’s first building: a 14-story mixed-use affordable housing development that will provide homes for more than 400 Portlanders.

Home Forward and the Urban League of Portland intend to break ground in the summer of 2026 and expect to complete construction in the summer of 2028. Click here to learn more information.

* * *

Finally, as summer winds down, I know that Portlanders continue to be impacted by extreme weather that’s become the new normal with our rapidly changing climate. But I want to share some great news about a program that’s offering essential relief for our community’s health and safety.

Portlanders can now dial 3-1-1 to get help applying for a cooling unit through the Cooling Portland program. They have already installed more than 11,000 units to date – including nearly 4,000 units this year alone!

This innovative program connects people in need with free, efficient, and portable units that provide cooling and heating. Priority is given to Portlanders who are most vulnerable to the impacts of heat, including people who are older than 60, who have medical conditions, and who live alone.

Cooling Portland was launched in response to the 2021 heat dome, recognizing that access to cooling is a key tool to make our communities more resilient. The program is funded by the Portland Clean Energy Community Benefits Fund, a voter-passed fund to equitably address climate change.

By partnering with the 311 program, Cooling Portland can get more cooling units out faster to folks who need them the most.  You can get your questions answered by a live person, and translation services are available in most languages.

And please note this is a year-round program: These cooling units can help keep people safe and more comfortable during the hot months, and the heat pump equipment also provides supplemental heating in the cooler months. You are encouraged to apply as soon as possible to give program partners time to verify eligibility, order cooling units, and schedule installation.