Presented by Leah Greenwood

1
Tax Increment Financing For Affordable Housing
Annual Report FY2006/2007 February 2008
Presented by Leah Greenwood Brian Fordham
2
Briefing Agenda

• Review of Adopted Policy
• Review of Methodology
• Summary of FY2006/07 Expenditures
• Questions and Comments

3
Background

• City Council Resolution No. 36403 established the
  Councils policy intent to dedicate a percentage
  of Tax Increment Financing (TIF) revenues from
  all Urban Renewal Districts to affordable housing
• Between May 2006 and February 2007 the Tax
  Increment Financing For Affordable Housing Policy
  was development and adopted by the Portland City
  Council and Portland Development Commission

4
Summary of URA Allocations

• Resolution 6402 established the following TIF
  expenditure requirements for Affordable Housing
  beginning July 1, 2006 for a cumulative 5-year
  period
• Interstate Corridor URA a minimum of 30 of all
  TIF
• Gateway Regional Center URA a minimum of 30 of
  all TIF
• Lents Town Center URA a minimum of 30 of all
  TIF
• River District URA a minimum of 30 of all TIF
• North Macadam URA a minimum of 30 of all TIF
• South Park Blocks URA a minimum of 30 of all
  TIF
• Oregon Convention Center URA a minimum of 26
  of all TIF
• Downtown Waterfront URA a minimum of 22 of all
  TIF
• Central Eastside Urban Renewal Area a minimum
  of 5,100,000 of the first 35 million of TIF
  debt issued and a minimum of 30 of all TIF for
  any additional debt beyond 35 million.

5
Summary of Income Guidelines Recommendation

• Different guidelines for different geographic
  areas.
• Minimum threshold spending for extremely low
  income rental housing (0-30 MFI)
• Flexibility in spending for either rental or
  homeownership in 31-60 MFI income range
• Cap spending on homeownership above 60 MFI
  (allow spending up to 100 MFI for larger family
  sized units)
• Cap spending allowed for community facilities.

6
TIF Set Aside FY06/07 Annual Report

• What is in the FY06/07 Annual Report?
• Actual expenditures only
• Expenditures between July 1, 2006 and June 30,
  2007
• Only projects in which there is certainty the
  project is eligible under the TIF Set Aside for
  Affordable Housing policy
• All eligible project expenditures
• What is not included in the FY06/07 Annual
  Report?
• Project expenditure in which there is uncertainty
  whether affordable housing will be part of the
  development program
• Any expenditures for staffing, overhead and
  administration
• Anticipated future spending or forecasted budgets

7
TIF Set Aside FY06/07 Annual Report

• Some key highlights of FY2006/2007 expenditures
  include
• Nearly 20,000,000 of TIF was spent on affordable
  housing that is eligible under the TIF Set Aside
  Income Guidelines 20 of total TIF expenditures
• Downtown Waterfront and South Park Blocks urban
  renewal areas exceeded the spending requirements
  in FY2006/2007.
• The Downtown Waterfront URA expenditures fell
  within the adopted income guidelines for all
  categories.
• The Oregon Convention Center URA met its targets
  for Affordable Homeownership (61-100 MFI) but
  did not meet Rental Housing targets
• The Interstate Corridor URA met Affordable
  Homeownership (61-100 MFI) and Community
  Facility targets, but did not meet Rental Housing
  targets
• The Lents Town Center URA exceeded spending
  targets in Affordable Homeownership (61-100
  MFI).
• The River District URA and South Park Blocks met
  spending targets for housing below 60 MFI, but
  did not meet 0-30 MFI Rental Housing targets.

8
TIF Set Aside FY06/07 Annual Report

• Expectations for FY2007/2008 and FY2008/2009
  include
• Many projects were in predevelopment during
  FY2006/2007 resulting in limited direct
  expenditures
• Significant expenditures are expected on
  affordable rental housing projects in Downtown
  Waterfront, Interstate Corridor, North Macadam
  and South Park Blocks in FY2007/2008
• Major expenditures in the Central Eastside,
  Oregon Convention Center, Lents Town Center and
  River District are not expected until FY2008/2009

9
TIF Set Aside FY06/07 Annual Report
10
Opportunities for Input

• Opportunities for Input
• The TIF Set Aside Annual Report is anticipated to
  be presented to the Commission on February 27th.
  The FY2007/2008 Annual Report is expected to be
  released by December 31, 2008.
• PDC and the City Council are currently engaged in
  budget planning for the FY2008/2009. This
  includes the adoption of an annual budget and
  forecasted budget through FY2012/2013.
• PDC-City Council meetings February 4th 14th
• PDC Reviews Proposed Budget April 16th with
  budget hearing in Late April
• PDC Approves Budget in May
• PDC Adopts Budget in June
• More information on the budget process is
  available at www.pdc.us/budget