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CommEcDev---FYFP-Combined — Intro — Part 6 of 6

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The Bureau has relatively modest resources remaining in the post-TIF era, including federal funds, the Construction Excise Tax (CET), rental registration fees, and short-term rental resources. This will be a similar level of resources as seen before the TIF Lift in 2015, and the bureau’s focus may again shift toward project financial restructures, rehabilitation, and regulatory compliance with fewer new unit production projects. Continued stability from the Bureau’s federal grants will be a key component of this future funding mix. U.S. Department of Housing and Urban Development (HUD) entitlement grant amounts reflect the existing federal budget agreement for 2024 federal funds. Community Development Block Grant (CDBG) funding to the city can fluctuate slightly due to changes in regional poverty statistics. Loan income for both major entitlement grant funds continue to decline over the period. Further declines are attributed to loan payoffs and restructures. Construction Excise Tax (CET) income had been exceeding forecasts until the economic downturn caused by COVID-19 and the subsequent decline in construction activities due to high interest rates, among other economic factors. A significant reduction in CET income has occurred since the first year of the COVID pandemic and is expected to continue over the next year, with a slow recovery forecasted to start in the FY26- 27. Other Risks to the Forecast • Costs associated with funding Permanent Supportive Housing (PSH) are higher than originally forecast due to the intensive resource requirements and increasing acuity of the population being served. • Funding for homeownership programs is limited as demand continues to expand outside of TIF districts. • As a result of a combination of factors, including a rising interest rate environment, increased input costs due to inflationary pressure, and supply chain disruptions, nearly every project currently in the production pipeline has encountered funding gaps. • Affordable housing costs are inherently higher than market-rate housing due to requirements around facilities (community areas, play spaces, program facilities, etc.) • Competitiveness of other resources needed for the housing pipeline including private activity bonds (PAB), 4% Low-Income Housing Tax Credits, and Oregon Housing and Community Services (OHCS) gap funding. The following is a brief discussion of the outlook for these and other funding sources. It contains forward- looking statements that are subject to change by the future policy direction of the City Council and/or Bureau management, as well as federal budget decisions and economic conditions. Note that most fund summaries reflect unbudgeted working capital to show the movement of unused funds from one fiscal year to the next where it may be utilized. Therefore, some totals in the forecast won’t match the budget load appropriations. FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Resources CY Estimate Plan Plan Plan Plan Plan General Fund $10.95M $10.78M $11.11M $11.44M $11.78M $12.14M Hsg Investment Fund $10.08M $3.46M $5.79M $5.74M $5.69M $5.65M Renter Registration $8.53M $8.90M $9.07M $9.25M $9.43M $9.61M Portland Clean Energy $33.08M $29.59M $13.60M $15.25M $8.0M $0.0M Federal Grant $17.93M $10.32M $5.76M $5.67M $5.69M $5.70M CDBG $17.22M $10.21M $10.08M $9.94M $9.81M $9.67M HOME $16.14M $15.97M $3.83M $3.78M $3.46M $3.23M Tax Increment Financing $37.30M $39.19M $32.79M $22.29M $22.22M $9.69M Construction Excise Tax $13.34M $5.43M $2.42M $2.42M $2.43M $2.55M Inclusionary Hsg $3.31M $2.32M $3.41M $3.37M $1.81M $1.82M Properties $6.36M $7.19M $7.19M $7.40M $7.64M $7.90M PDX Bonds $33.03M $13.45M $1.31M $0.0M $0.0M $0.0M Metro Bond $69.99M $46.28M $20.60M $0.62M $0.0M $0.0M Total $277.25M $203.09M $126.96M $97.17M $87.95M $67.95M

General Fund Revenue CY Estimate FY 2025-26Plan FY 2026-27Plan FY 2027-28Plan FY 2028-29Plan FY 2029-30Plan GFD - General Fund Discretionary $ 10,987,189 $ 10,783,095 $ 11,106,588 $ 11,439,786 $ 11,782,979 $ 12,136,469 Revenue Total $ 10,987,189 $ 10,783,095 $ 11,106,588 $ 11,439,786 $ 11,782,979 $ 12,136,469 Expense PERSONAL - Personnel $ 3,922,084 $ 6,453,548 $ 6,647,154 $ 6,846,569 $ 7,051,966 $ 7,263,525 EMS - External Materials and Services $ 6,373,712 $ 2,651,401 $ 2,755,043 $ 2,391,775 $ 2,429,608 $ 2,175,133 IMS - Internal Materials and Services $ 355,708 $ 1,325,746 $ 1,351,990 $ 1,849,042 $ 1,949,005 $ 2,345,411 FNDXFER - Fund Transfers - Expense $ 335,685 $ 352,400 $ 352,400 $ 352,400 $ 352,400 $ 352,400 Expense Total $ 10,987,189 $ 10,783,095 $ 11,106,588 $ 11,439,786 $ 11,782,979 $ 12,136,469 Historical Look PHB has been identified as a General Fund bureau for years, although most of its funding comes from other sources. This funding mix began to change in FY 2006-07 when over $6 million in one-time General Fund resources were allocated to the bureau in the Fall Budget Monitoring Process (BMP). This use of one-time funds for what would become ongoing services led to a structural imbalance, and each subsequent annual budget submission included a substantial request for General Fund resources (ongoing and/or one-time) to fill the gap. Unfortunately, the gap was filled primarily with additional one-time funds. General Fund Discretionary PHB’s Base General Fund allocation increased in FY25-26 to include the full returning TIF Set Aside funds. In FY24-25 GF allocation to PHB included the ongoing $4.0M allocation plus $2.0M one-time funding and a carryover of $5.9M of the ARPA Swap Funds. Internal Resources Internal General Fund resources consist primarily of indirect cost recovery charges to the CDBG, TIF, and Bond funds. The bureau levies a 94.45% indirect charge (as outlined in the City’s indirect cost plan) against the program staff costs in each of these funds. These charges offset the indirect costs (not staffing costs, which are charged directly) not attributable to the General Fund. Please note that the table above shows indirect charges as a contra-expense in Internal Material & Services category. Future Look The bureau funds homeownership, rental access, and stabilization programs with Tax Increment Financing (TIF) resources. While an excellent tool within TIF Districts (TDs), limiting these programs to those areas does not address gentrification and displacement in the 85% of the city not located in a TD; General Fund dollars are a potential tool to provide these services Citywide. As mentioned previously, the Housing Bureau collaborates with the Portland Clean Energy Fund through an existing Interagency Agreement (IGA) to match PCEF funds with other PHB investment sources (i.e., CDBG, TIF, CET, etc.) to preserve existing housing stock currently regulated by the Housing Bureau or OHCS. This IGA allocates $60 million in Portland Clean Energy Funds over 5 years for energy efficiency and renewable energy enhancements in newly regulated, multi-family affordable housing. An additional $40 million over 5 years ($8 million per year) has been allocated in FY24-25 onwards and aims to support energy upgrades in approximately 300 units alongside other PHB-funded capital improvements. The FY22-23 Adopted Budget included a Budget Note directing the City Economist to set aside $20 million in ongoing resources from expected returning Tax Increment Finance (TIF) revenues beginning in FY24-25. The City Budget Office is directed to place $8 million – or 25% of the total forecasted returning TIF resources - in a policy set-aside for the Portland Housing Bureau. The returning TIF resource is crucial in maintaining the bureau’s staffing and operational capacity in addition to supporting single-family home access and retention programs, as mentioned above. The FY25-26 requested budget includes $7 million of returning the TIF net of 10% City’s GF constraint, which is now part of the ongoing GF Discretionary. The out years of the forecast show placeholders for additional one-time funding in the event PHB needs a bridge in the process of right-sizing the bureau to new resource limitations.

Housing Investment Fund Historical Look The Housing Investment Fund (HIF) was formally created in 1995 to achieve the City's housing goals as established in the Metro 2040 plan and to provide gap financing for housing projects that fulfilled the goals of the Livable City Housing Initiatives, and the strategies developed by the Livable City Housing Council. City Council allocated $34.6 million over a 12-year period. The funds were almost exclusively transferred to Prosper Portland for housing development and retention programs. These funds were tracked in a Prosper Portland Housing Investment Fund that is now merged with the City HIF. A significant portion of the funds was packaged into loans, and income from these loans is the funding source for the primary HIF fund. HIF Funds Total Revenue CY Estimate FY 2025-26Plan FY 2026-27Plan FY 2027-28Plan FY 2028-29Plan FY 2029-30Plan BEGBAL - Beginning Fund Balance $ 4,369,416 $ 356,686 $ 382,603 $ 409,360 $ 436,994 TAXES - Taxes $ 1,800,000 $ 1,700,000 $ 1,674,500 $ 1,649,383 $ 1,624,642 $ 1,600,272 FNDXFERS - Fund Transfers - Revenue $ 3,160,949 $ 746,653 $ 3,127,849 $ 3,086,217 $ 3,045,210 $ 3,004,818 INTERGOV - Intergovernmental $ 165,835 $ - $ - $ - $ - MISC - Miscellaneous $ 8,851,773 $ 9,909,005 $ 9,701,846 $ 9,871,525 $ 10,039,794 $ 10,216,715 Revenue Total $ 18,347,973 $ 12,355,658 $ 14,860,881 $ 14,989,728 $ 15,119,006 $ 15,258,798 Expense PERSONAL - Personnel $ 2,178,358 $ 1,997,693 $ 2,079,598 $ 2,164,862 $ 2,253,621 $ 2,346,020 EMS - External Materials and Services $ 9,883,140 $ 7,455,602 $ 7,616,801 $ 7,782,837 $ 7,903,853 $ 8,080,001 IMS - Internal Materials and Services $ 875,776 $ 1,227,526 $ 1,236,965 $ 1,246,592 $ 1,256,412 $ 1,266,428 FNDXFER - Fund Transfers - Expense $ 626,085 $ 380,213 $ 393,258 $ 406,775 $ 420,782 $ 435,297 CONT - Contingency $ 4,784,323 $ 1,294,624 $ 3,534,259 $ 3,388,662 $ 3,284,337 $ 3,131,054 CAPITAL - Capital Outlay $ 291 Expense Total $ 18,347,973 $ 12,355,658 $ 14,860,881 $ 14,989,728 $ 15,119,006 $ 15,258,798 Program Income Program income includes loan income from the original HIF loans discussed earlier. HIF program income is used primarily to cover staff costs and special projects. The major issue with loan income is that it is forecasted to decline over time due to restructures and loan payoffs. To that end, the Bureau is more conservative in planning ongoing staff costs against this income stream, and the forecast therefore reflects declining Personnel Services usage of HIF resources beyond the forecast period. This downward trend is tempered somewhat by the potential payoff of original HIF loans and the City being repaid a portion of the principal. This is an unpredictable occurrence, and the long-range forecast does not rely on any such payoffs. Reserve and Match Funds Risk Mitigation Guarantee Pool Revenue CY Estimate FY 2025-26Plan FY 2026-27Plan FY 2027-28Plan FY 2028-29Plan FY 2029-30Plan FNDXFERS - Fund Transfers - Revenue $ 335,685 $ 352,400 352400 352400 352400 352400 MISC - Miscellaneous $ 41,715 $ 25,000 25000 25000 25000 25000 Revenue Total $ 377,400 $ 377,400 $ 377,400 $ 377,400 $ 377,400 $ 377,400 Expense EMS - External Materials and Services $ 377,400 $ 377,400 $ 377,400 $ 377,400 $ 377,400 $ 377,400 Expense Total $ 377,400 $ 377,400 $ 377,400 $ 377,400 $ 377,400 $ 377,400 The Risk Mitigation Pool is used to pay damage claims by subscribed landlords for excess wear and tear on Permanent Supportive Housing (PSH) units for extremely low-income residents, often experiencing other challenges. A risk factor for this pool is that it is over-subscribed. The bureau has worked with OMF Risk Management to mitigate potential issues, but annual claims will need to be monitored closely for any trends that would indicate higher usage than the pool can withstand. In addition, the size and usage of the Pool will

be part of the ongoing discussions surrounding PSH funding as new units are added to the Pool. PHB has been transferring over $352 thousand per fiscal year from the General Fund PSH resources to replenish the Pool. Other funding sources under HIF: The HIF also includes: 1) the Short-Term Rental lodging tax, 2) the Short-Term Rental per night fee, and 3) the Rental Registration fee. All funding sources are being used or may be used in conjunction with both Portland and Metro Bond affordable housing projects either as funding for use before the collection of program delivery fees or as a potential source for any project deficits. Short -Term Rental Lodging Tax Revenue CY Estimate FY 2025-26Plan FY 2026-27Plan FY 2027-28Plan FY 2028-29Plan FY 2029-30Plan BEGBAL - Beginning Fund Balance $ - FNDXFERS - Fund Transfers - Revenue $ 2,825,264 $ 394,253 $ 2,775,449 $ 2,733,817 $ 2,692,810 $ 2,652,418 MISC - Miscellaneous $ 223,489 $ 181,871 $ 176,967 $ 172,035 $ 167,071 Revenue Total $ 2,825,264 $ 617,742 $ 2,957,320 $ 2,910,784 $ 2,864,845 $ 2,819,489 Expense PERSONAL - Personnel $ 538,478 $ 526,678 $ 548,272 $ 570,751 $ 594,152 $ 618,512 EMS - External Materials and Services $ 196 $ 293 $ 305 $ 318 $ 331 $ 344 FNDXFER - Fund Transfers - Expense $ 86,610 $ 90,771 $ 95,133 $ 99,706 $ 104,501 $ 109,527 CONT - Contingency $ 2,199,980 $ 2,313,610 $ 2,240,010 $ 2,165,862 $ 2,091,106 Expense Total $ 2,825,264 $ 617,742 $ 2,957,320 $ 2,910,784 $ 2,864,845 $ 2,819,489 In November 2015, the City Council approved shifting the Short-Term Rental (STR) portion of Transient Lodging Tax proceeds from the City’s General Fund to the Housing Investment Fund. This transfer receives an annual cost of living adjustment and is limited to housing initiatives. In the FY24-25 revenue has recovered to pre-pandemic levels and is expected to maintain steady growth. These funds will factor into the Bureau’s future resources and could be used to support 0-60% AMI housing. Moving forward, STR will be a key source of staff funding and transitional Bureau operations funding as affordable housing projects move from TIF and bond funding. Additionally, STR has been used to cover non- bond eligible costs when sufficient bond project delivery fees have not yet been collected and may be used for this purpose again if additional bond issues are approved. Short -Term Rental Nightly Fee Revenue CY Estimate FY 2025-26Plan FY 2026-27Plan FY 2027-28Plan FY 2028-29Plan FY 2029-30Plan TAXES - Taxes $ 1,800,000 $ 1,700,000 $ 1,674,500 $ 1,649,383 $ 1,624,642 $ 1,600,272 MISC - Miscellaneous $ 113,000 $ 106,905 $ 105,826 $ 99,764 $ 98,718 Revenue Total $ 1,800,000 $ 1,813,000 $ 1,781,405 $ 1,755,209 $ 1,724,406 $ 1,698,990 Expense EMS - External Materials and Services $ 1,000,000 $ 1,700,000 $ 1,700,000 $ 1,700,000 $ 1,650,000 $ 1,650,000 CONT - Contingency $ 800,000 $ 113,000 $ 81,405 $ 55,209 $ 74,406 $ 48,990 Expense Total $ 1,800,000 $ 1,813,000 $ 1,781,405 $ 1,755,209 $ 1,724,406 $ 1,698,990 Short-term rental per night fee resources were established in FY 2018-19. Starting in FY19-20, collections were heavily affected by the COVID-19 pandemic, resulting in a 24% drop in revenue in FY20-21 from the prior year’s collections. Starting in FY24-25, the Short-term rental tax income has recovered, and it is at its pre- pandemic levels. These funds will factor into the Bureau’s future resources and could be used to support 0- 60% AMI housing.

Rental Services Office Sub Fund Revenue CY Estimate FY 2025-26Plan FY 2026-27Plan FY 2027-28Plan FY 2028-29Plan FY 2029-30Plan MISC - Miscellaneous $ 8,525,648 $ 8,896,161 $ 9,070,084 $ 9,247,486 $ 9,428,436 $ 9,613,004 Revenue Total $ 8,525,648 $ 8,896,161 $ 9,070,084 $ 9,247,486 $ 9,428,436 $ 9,613,004 Expense PERSONAL - Personnel $ 1,037,462 $ 1,114,102 $ 1,159,780 $ 1,207,331 $ 1,256,832 $ 1,308,362 EMS - External Materials and Services $ 4,828,067 $ 5,372,909 $ 5,534,096 $ 5,700,119 $ 5,871,123 $ 6,047,256 IMS - Internal Materials and Services $ 875,776 $ 1,227,526 $ 1,236,965 $ 1,246,592 $ 1,256,412 $ 1,266,428 CONT - Contingency $ 1,784,343 $ 1,181,624 $ 1,139,243 $ 1,093,444 $ 1,044,069 $ 990,958 Expense Total $ 8,525,648 $ 8,896,161 $ 9,070,084 $ 9,247,486 $ 9,428,436 $ 9,613,004 The Rental Services Office (RSO) is responsible for fair housing and landlord-tenant services, developing code and administrative rules associated with local landlord-tenant law, processing exemptions to local mandatory relocation assistance, and providing technical assistance and information (in person, via email, and over the phone) to renters and landlords on general landlord-tenant law. City Council authorized rental registration fees, increasing in 2022 to $70per unit per year, to raise revenue to cover some of the costs of the RSO. The fees’ level will need to be adjusted to account for inflation and to ensure sufficient program resources. Five-year forecast growth occurs due to assumed additional compliance with three-percent fee increases every two years and continuation of current service levels. The growth in RSO revenue allowed this funding source to cover staffing and program costs with the potential to cover other bureau overhead expenses. Inclusionary Housing Fund Construction Excise Tax Revenue CY Estimate FY 2025-26Plan FY 2026-27Plan FY 2027-28Plan FY 2028-29Plan FY 2029-30Plan BEGBAL - Beginning Fund Balance $ 9,000,000 $ 3,000,000 TAXES - Taxes $ 4,343,540 $ 2,430,887 $ 2,418,424 $ 2,422,148 $ 2,426,216 $ 2,547,527 Revenue Total $ 13,343,540 $ 5,430,887 $ 2,418,424 $ 2,422,148 $ 2,426,216 $ 2,547,527 Expense PERSONAL - Personnel $ 222,255 $ 240,854 $ 250,729 $ 261,009 $ 271,710 EMS - External Materials and Services $ 13,121,285 $ 5,430,887 $ 2,177,570 $ 2,171,419 $ 2,165,207 $ 2,275,817 Expense Total $ 13,343,540 $ 5,430,887 $ 2,418,424 $ 2,422,148 $ 2,426,216 $ 2,547,527 This fund tracks receipts from the City's CET which funds affordable housing initiatives. Per City Code chapter 6.08, 4% of these receipts are retained by the Bureau of Development Services for administration. Of the remaining proceeds, 15% are remitted to the Oregon Department of Housing and Community Services (OHCS); 50% remain in this fund for use on finance-based incentives for programs that require affordable housing; and 35% remain in this fund to support the production and preservation of affordable housing units at and below 60% AMI. Future income forecasts are informed by economic forecast factors used by the Bureau of Development Services for tracking building permit fee activity. This forecast reflects both the current and future development of multi-family projects and the use of CET for predevelopment loans for both Portland and Metro Bond projects. Tax collections in FY 2020-21 dropped significantly due to COVID-19 and were expected to recover to pre-pandemic levels in FY24-25. However, the decline in construction activity and increased interest rates contributed to a further decline in CET revenue. While this will not adversely impact the use of CET in support of current Portland and Metro Bond projects, it will reduce funds available for future multi-family projects.

Development Incentives Revenue CY Estimate FY 2025-26Plan FY 2026-27Plan FY 2027-28Plan FY 2028-29Plan FY 2029-30Plan BEGBAL - Beginning Fund Balance $ 2,311,944 $ - $ - $ 812,977 $ 782,136 SC - Charges for Services $ 1,000,000 $ 2,324,885 $ 3,414,312 $ 3,371,741 $ 1,000,000 $ 1,040,000 Revenue Total $ 3,311,944 $ 2,324,885 $ 3,414,312 $ 3,371,741 $ 1,812,977 $ 1,822,136 Expense PERSONAL - Personnel $ 1,244,204 $ 1,146,834 $ 1,193,854 $ 1,193,854 $ 1,242,802 $ 1,242,802 EMS - External Materials and Services $ 1,706,129 $ 877,779 $ 1,917,808 $ 1,866,604 $ 250,000 $ 250,000 IMS - Internal Materials and Services $ 14,869 $ 20,873 $ 14,869 $ 14,869 $ 14,869 $ 14,869 FNDXFER - Fund Transfers - Expense $ 346,742 $ 279,399 $ 287,781 $ 296,414 $ 305,306 $ 314,465 Expense Total $ 3,311,944 $ 2,324,885 $ 3,414,312 $ 3,371,741 $ 1,812,977 $ 1,822,136 This fund tracks the revenues and expenditures associated with indirect subsidies and fees paid in lieu of participating in the Inclusionary Housing (IH) Program. The Bureau has several programs that subsidize affordable rental housing and homeownership without direct funding. For-profit and nonprofit housing developers benefit from exemption programs, reducing permitting expenses and the ongoing cost of property taxes for both rental and homeownership projects, in both single- family and multifamily developments. Developers providing deeper affordability or family-sized units and manufactured dwelling park owners can receive density bonuses. Homeownership programming restricts income levels up to 100%-120% of area median income (AMI). Rental programming restricts income levels up to 60%-80% of AMI. The IH Program requires that buildings with 20 or more new units make at least 20% of the units affordable to households earning at or below 80% of AMI with options for complying. The options include: 1) provide 10% of the new building’s units at or below 60% AMI; 2) provide 20% of the new building’s units at 60% AMII; 3) provide 20% of the new building’s units at 60% MFI, or 10% of the new building’s units at 30% AMI, in another new building; 4) provide 25% of the new building’s units at 60% AMI, or 15% of the new building’s units at 30% I, in an already existing building; or 5) pay a fee-in-lieu of providing affordable units. Fees paid by applicants for these programs cover some of the cost of administration. Added in FY 2021-22 were fees to process additional legal documents and changes to already approved applications for programs with existing fees (the System Development Charge (SDC) Exemption and Limited Tax Exemption Programs). New fees and fee adjustments, starting in FY 2023-24, allowed for better recovery of program administration costs. Housing Property Fund Revenue CY Estimate FY 2025-26Plan FY 2026-27Plan FY 2027-28Plan FY 2028-29Plan FY 2029-30Plan BEGBAL - Beginning Fund Balance $ 400,000 $ 101,105 $ 114,860 $ 129,486 $ 145,074 MISC - Miscellaneous $ 129,414 $ 223,027 $ 124,147 $ 122,783 $ 121,199 $ 119,339 SC - Charges for Services $ 6,463,165 $ 6,879,085 $ 7,075,206 $ 7,306,324 $ 7,545,000 $ 7,791,480 FNDXFERS - Fund Transfers - Revenue $ 86,610 $ 90,771 $ 95,133 $ 99,706 $ 104,501 $ 109,527 Revenue Total $ 7,079,189 $ 7,192,883 $ 7,395,591 $ 7,643,673 $ 7,900,186 $ 8,165,420 Expense PERSONAL - Personnel $ 91,086 $ 113,514 $ 118,170 $ 123,016 $ 128,061 $ 133,313 EMS - External Materials and Services $ 5,775,282 $ 5,399,666 $ 5,576,891 $ 5,759,961 $ 5,949,069 $ 6,144,414 IMS - Internal Materials and Services $ 313,679 $ 355,161 $ 371,926 $ 389,499 $ 407,920 $ 427,231 FNDXFER - Fund Transfers - Expense $ 202,906 $ 187,449 $ 193,421 $ 199,583 $ 205,942 $ 212,504 BOND - Debt Service $ 696,236 $ 800,512 $ 696,236 $ 696,236 $ 696,236 $ 696,236 CONT - Contingency $ 336,581 $ 438,947 $ 475,378 $ 512,958 $ 551,722 Expense Total $ 7,079,189 $ 7,192,883 $ 7,395,591 $ 7,643,673 $ 7,900,186 $ 8,165,420 This fund was created in 2016 to house and track financial activity associated with Bureau-owned multi-family housing property operations. Reflected in the table are the gross operating revenues and expenses for the Ellington, Headwaters, and East Burnside, and costs associated with parcels held for future development.

Federal Grants Community Development Block Grant Fund Revenue CY Estimate FY 2025-26Plan FY 2026-27Plan FY 2027-28Plan FY 2028-29Plan FY 2029-30Plan INTERGOV - Intergovernmental $ 9,338,909 $ 8,836,578 $ 8,897,739 $ 8,775,639 $ 8,655,371 $ 8,536,907 MISC - Miscellaneous $ 1,222,515 $ 1,369,551 $ 1,186,114 $ 1,168,322 $ 1,150,797 $ 1,133,535 Revenue Total $ 10,561,424 $ 10,206,129 $ 10,083,853 $ 9,943,961 $ 9,806,168 $ 9,670,442 Expense PERSONAL - Personnel $ 1,654,922 $ 1,755,967 $ 1,808,646 $ 1,862,905 $ 1,918,793 $ 1,976,356 EMS - External Materials and Services $ 7,694,778 $ 7,233,619 $ 7,050,420 $ 6,849,606 $ 6,649,878 $ 6,459,137 IMS - Internal Materials and Services $ 410,000 $ 410,000 $ 410,000 $ 410,000 $ 410,000 $ 410,000 BOND - Debt Service $ 801,724 $ 806,543 $ 814,787 $ 821,450 $ 827,497 $ 824,949 Expense Total $ 10,561,424 $ 10,206,129 $ 10,083,853 $ 9,943,961 $ 9,806,168 $ 9,670,442 This fund is used to hold and account for the City’s CDBG entitlement from HUD, as well as program income. HUD uses a formula to determine each grantee’s share of the CDBG funding pool. That pool for a particular year is contingent upon the federal budget process. Many times, the HUD budget is the result of a continuing resolution passed after the start of the federal fiscal year (October 1st). Once the total CDBG amount is determined, HUD develops the allocations within 60 days, often after the City deadline for the PHB request budget. In the past, this led the Bureau to budget the prior year’s entitlement allocation. Caps Among the limits on CDBG funding are caps on the use of funds for administration, planning, and public service. The cap percentage for administration and planning is 20% of the entitlement and program income; the percentage for public service is 15% of the entitlement and program income. PHB puts a mix of administrative support staff and indirect costs under the administration and planning cap in addition to some service contracts and consulting services. Also found under the administration and planning cap are administrative activities under sub-recipient contracts with area service delivery agencies and Fair Housing programs. Homebuyer assistance is funded under the public service cap. Program Income CDBG program income has been in decline from highs of approximately $2-5 million in the past 15 years. Loan income is approximately $1.2 million. PHB and HUD use program income figures from the HUD IDIS tracking system for cap calculations. This resource is also forecast to go down over time due to restructures and loan payoffs, which could impact staffing and program delivery spending. Program Delivery PHB funds program delivery staff under CDBG. Most program services are delivered via third-party contracts (the same is true with almost all the Bureau’s funding), though in the case of housing development projects, the exact nature and amount of the funding are not known very far into the future. The Bureau can build up CDBG funds to use in years where other resources are less available, but this can cause less future flexibility in using CDBG funds for other programs and present the risk of missing HUD expenditure timelines. The availability of CDBG for rental housing development and homeownership programs is one of the few resources available to PHB outside of TIF Districts. Future Look As the graph on the next page shows, the Bureau has seen a decline in CDBG entitlement funding from ten to fifteen years ago; and then a significant increase in the FY 2019 allocation. The Bureau takes a conservative approach and assumes a 1.5% decline over the near term of the forecast, with an eventual corresponding decrease in spending. There is the potential for some loan payoffs in the forecast.

HOME Revenue CY Estimate FY 2025-26Plan FY 2026-27Plan FY 2027-28Plan FY 2028-29Plan FY 2029-30Plan INTERGOV - Intergovernmental $ 14,842,464 $ 15,965,087 $ 3,130,652 $ 3,083,692 $ 3,037,437 $ 2,991,875 MISC - Miscellaneous $ 1,300,000 $ 246,250 $ 242,556 $ 238,918 $ 235,334 Revenue Total $ 16,142,464 $ 15,965,087 $ 3,376,902 $ 3,326,248 $ 3,276,355 $ 3,227,209 Expense PERSONAL - Personnel $ 697,299 $ 427,205 $ 320,806 $ 315,994 $ 311,254 $ 306,585 EMS - External Materials and Services $ 15,445,165 $ 15,537,882 $ 3,056,096 $ 3,010,254 $ 2,965,101 $ 2,920,624 Expense Total $ 16,142,464 $ 15,965,087 $ 3,376,902 $ 3,326,248 $ 3,276,355 $ 3,227,209 This fund is used to hold and account for the City’s HOME entitlement from HUD, as well as program income. Much like CDBG, HOME is a formula-based entitlement grant. It is subject to the same timeline as the CDBG entitlement, and thus the Bureau has tended to budget the prior year's entitlement allocation at the start of the City budget cycle. Currently, HUD has an adopted budget and is in the process of developing allocations for participating jurisdictions. Caps As with CDBG, HOME has a cap on the use of funds for administration. The HOME cap percentage for administration is only 10% of the entitlement and program income – there is no public service cap. PHB puts a mix of administrative staff and indirect costs under the administration cap. PHB budgets right up to the cap. HOME also has sub-funds, which put additional restrictions on some of the allocations to benefit community- based developers. Another unique feature is that HOME funds are part of a local consortium with Gresham and Multnomah County, and PHB provides billing and administrative assistance via an IGA. Program Income HOME program income has declined from highs of approximately $2 million in the past fifteen years. Program income is currently approximately $1.2 million. PHB and HUD use program income figures from the HUD IDIS tracking system for program incomes and sub-fund usage calculations. The Bureau currently budgets HOME program income conservatively as the administration cap usage has been traditionally low under HOME. This resource is also forecast to go down moderately over time, which could impact staff and program delivery spending. Program Delivery PHB funds program delivery staff working on HOME-funded projects from CDBG funds per HUD recommendation. HOME funds are used primarily for affordable housing development. The availability of HOME for rental housing development is one of the few resources available to PHB outside of TIF Districts. The Bureau can build up HOME funds to use in years where other resources are less available, but this can cause less future flexibility in using HOME funds for other programs and presents the risk of missing HUD expenditure timelines. Future Look As the graph on the following page shows, the Bureau has seen a decline in CDBG entitlement funding from ten to fifteen years ago; and then a significant increase in the FY 2019 allocation. The Bureau takes a conservative approach and assumes a 1.5% decline over the near term of the forecast, with eventual corresponding decreases in spending. Loan income is forecast to continue to decline as noted above, though there is the potential for some loan payoffs in the forecast.

A steady downward trend in HOME and CDBG funding (in actual dollars) is interrupted only by boosts in funding early in the Great Recession of 2008-11 and then the significant increase of FY 2018. Funding has been mostly flat in the years from FY20 through FY23. However, FY24 HOME allocation was 17% lower than the average award amount in the past five-years. The forecast assumes a steady 1.5 percent annual decline in all entitlement award amounts over the next five years. Other Federal Grants Entitlement Grants PHB receives two other, smaller entitlement grants in addition to HOME and CDBG – the Emergency Solutions Grant (ESG), used for shelter and supportive housing services; and Housing for Persons with AIDS (HOPWA). They are formula-based and subject to a similar allocation timeline process as HOME and CDBG and are subject to similar constraints as noted in the discussions of those grants. Other Grants (Federal, State, and Local) Revenue CY Estimate FY 2025-26Plan FY 2026-27Plan FY 2027-28Plan FY 2028-29Plan FY 2029-30Plan INTERGOV - Intergovernmental $ 21,590,708 $ 10,315,231 $ 5,762,606 $ 5,671,577 $ 5,686,801 $ 5,702,365 Revenue Total $ 21,590,708 $ 10,315,231 $ 5,762,606 $ 5,671,577 $ 5,686,801 $ 5,702,365 Expense PERSONAL - Personnel $ 876,446 $ 1,069,551 $ 997,945 $ 1,009,480 $ 1,021,245 $ 1,033,246 EMS - External Materials and Services $ 20,638,262 $ 9,096,667 $ 4,680,648 $ 4,578,084 $ 4,581,543 $ 4,585,106 IMS - Internal Materials and Services $ 76,000 $ 149,013 $ 84,013 $ 84,013 $ 84,013 $ 84,013 Expense Total $ 21,590,708 $ 10,315,231 $ 5,762,606 $ 5,671,577 $ 5,686,801 $ 5,702,365 The HOPWA grant has shown significant growth over the past three funding cycles, leading future estimates to continue at the FY 2023 level, as shown in the graph above, with a higher confidence level. ESG is forecast at a stable level, but prior year experience shows random decreases in the award, so there is some risk to a stable forecast. Lead Hazard Abatement For over twenty years, PHB has been successfully applying for the HUD Lead Grant, the most recent version of which was awarded $7 million in FY 2024-25 with a four-year period of performance. This is by far the largest federal award in the Bureau’s history for the LEAD Remediation Program.

Tax Increment Financing – Housing Set-Aside Tax Increment Financing (TIF) is not new to either the City or to housing development. TIF funds for housing (also known as the Housing Set-Aside) are expended by PHB, which is reimbursed by Prosper Portland. Because the City of Portland holds affordable housing loans, PHB receives program income directly. Affordable housing funding in TIF Districts (TDs) is driven by the Housing set-aside passed by the City Council in 2006, updated in 2011, and modified in 2015 to allocate 45% of TIF dollars to affordable housing. Structure PHB has set up a series of funds to be able to track costs by TD. Indirect costs are collected in a TIF Reimbursement fund and are allocated to each TD based upon direct expenses. Indirect costs are allocated as outlined in the General Fund section. TIF is similar to many of PHBs’ grant sources in that it has restrictions on use. However, in addition to restrictions on use, TIF funds are required to be deployed in the same district in which they are generated. The location restrictions also put pressure on the Bureaus’ less restrictive funding sources when needs outside of TDs arise. Tax Increment Revenue Forecast – Future Look The affordable housing emergency and the demand for new units led to adjustments in the forecast that resulted in TIF resources being deployed earlier than originally planned. Funding from TIF sources will decrease rapidly in the first three years of the five-year forecast window. Income from the new six TIF districts in Central City and East Portland, adopted in October 2024, is expected to start during the first two to three of the forecast windows. Looking forward into the second half of the 2020s, residual income from loans made to affordable housing projects will continue to provide income for restructures or rehabilitation of existing projects. Indebtedness Indebtedness Maximum TIF District Issued as of Remaining as Indebtedness 6/30/24 of 6/30/24 Lents Town Center (Amended) $245.0M $242.76M $2.24M Gateway $164.24M $121.75M $42.49M Central Eastside (Amended) $125.97M $125.97M $0.0M North Macadam $288.56M $260.51M $28.06M Interstate Corridor $402.0M $402.0M $0.0M Cully $350.0M $0.14M $349.86M Westside $800.0M $0.0M $800.0M Lloyd $290.0M $0.0M $290.0M Central Eastside Corridor $200.0M $0.0M $200.0M East 205 $770.0M $0.0M $770.0M 82nd Ave $460.0M $0.0M $460.0M Sumner-Parkrose-Argay- $310.0M $0.0M $310.0M Columbia Corridor (SPACC) As the table above shows, Lents, Gateway, Central Eastside, North Macadam, and Interstate districts are reaching maximum indebtedness and/or the final year to issue debt during the forecast. Additional TIF districts beyond Cully were added by the City Council. The projected Housing Set Aside from the new district is as follows:

New TIF Districts FY 2025-26Plan FY 2026-27Plan FY 2027-28Plan FY 2028-29Plan FY 2029-30Plan Westside $0.0M $0.53M $1.08M $1.66M $2.25M Lloyd $0.0M $0.19M $0.38M $0.58M $0.79M CES Corridor $0.0M $0.12M $0.25M $0.38M $0.52M East 205 $0.0M $0.63M $1.30M $1.98M $2.68M 82nd Area $0.0M $0.38M $0.78M $1.19M $1.61M SPACC $0.0M $0.25M $0.52M $0.79M $1.07M Total $0.0M $2.11M $4.30M $6.59M $8.92M The following is a brief discussion of trends in the current and expiring districts. TIF Districts finishing: The Downtown Waterfront, South Park Blocks, and Convention Center TIF districts are all well past the date to issue new debt and at the maximum limit (debt issued is scheduled for payoff in 2024-25). For these districts, PHB drew down the remaining TIF housing set-aside during FY 2019-20. In both Downtown Waterfront and South Park Blocks, PHB has limited cash resources available from loan payments, loan payoffs, and interest income. Neighborhood TIF Districts winding down: The Gateway, Interstate, and Lents TDs (commonly known as the neighborhood districts) still have housing set aside funds available, and the forecast shows these funds being programmed through the next three years of the forecast. With resources winding down and unrealized available indebtedness in each district, the potential for either extension of time and/or increasing debt limits where possible has been discussed. • Gateway Regional Center – The Nick Fish affordable housing project was completed in 2021, using a mix of HOME and TIF funding. The ability to issue debt in Gateway expired in 2022, and current tax forecasts for the district do not anticipate enough incremental growth to issue any additional debt (beyond that planned for known expenditures) by that deadline. A substantial amount of the remaining set aside has been allocated to the Gateway Children’s Resource Center project and any unused set aside still available will be bundled with other funding sources on future development projects. Revenue CY Estimate FY 2025-26Plan FY 2026-27Plan FY 2027-28Plan FY 2028-29Plan FY 2029-30Plan INTERGOV - Intergovernmental $ 2,589,198 $ 5,051,831 $ 3,900,000 $ 3,023,656 $ 13,499,130 $ - Revenue Total $ 2,589,198 $ 5,051,831 $ 3,900,000 $ 3,023,656 $ 13,499,130 $ - Expense EMS - External Materials and Services $ 2,589,198 $ 5,051,831 $ 3,900,000 $ 3,023,656 $ 13,499,130 $ - IMS - Internal Materials and Services $ - $ - $ - $ - $ - $ - Expense Total $ 2,589,198 $ 5,051,831 $ 3,900,000 $ 3,023,656 $ 13,499,130 $ - • Interstate – The table above includes the additional funds generated from the increase in maximum indebtedness approved by Council. Project spending will be robust through the remainder of the forecast period as several projects funded by a combination of ICURA and Portland Bond funds begin construction. This includes the development of both the Strong/Abbey and William and Russell properties – both of which are expected to provide much sought after homeownership opportunities.

Revenue CY Estimate FY 2025-26Plan FY 2026-27Plan FY 2027-28Plan FY 2028-29Plan FY 2029-30Plan INTERGOV - Intergovernmental $ 15,198,282 $ 18,885,879 $ 12,000,000 $ 5,278,000 $ - $ - MISC - Miscellaneous $ 1,000,000 Revenue Total $ 15,198,282 $ 19,885,879 $ 12,000,000 $ 5,278,000 $ - $ - Expense PERSONAL - Personnel $ 659,110 $ - $ - $ - $ - $ - EMS - External Materials and Services $ 11,360,360 $ 19,263,407 $ 12,000,000 $ 5,278,000 $ - $ - IMS - Internal Materials and Services $ 3,178,812 $ 622,472 $ - $ - $ - $ - Expense Total $ 15,198,282 $ 19,885,879 $ 12,000,000 $ 5,278,000 $ - $ - • Lents Town Center –Current activity is focused on programs for homeownership preservation and new homeownership opportunities. Revenue CY Estimate FY 2025-26Plan FY 2026-27Plan FY 2027-28Plan FY 2028-29Plan FY 2029-30Plan INTERGOV - Intergovernmental $ 2,839,047 $ 1,478,952 $ 1,479,084 $ - $ - $ - MISC - Miscellaneous $ 125,186 $ 123,308 $ - $ - $ - Revenue Total $ 2,839,047 $ 1,604,138 $ 1,602,392 $ - $ - $ - Expense PERSONAL - Personnel $ 271,468 $ - $ - $ - $ - $ - EMS - External Materials and Services $ 1,259,556 $ 1,551,521 $ 1,602,392 $ - $ - $ - IMS - Internal Materials and Services $ 1,308,023 $ 52,617 $ - $ - $ - $ - Expense Total $ 2,839,047 $ 1,604,138 $ 1,602,392 $ - $ - $ - Downtown TIF Districts winding down: The River, North Macadam (South Waterfront), and Central Eastside districts are winding down as well, also reaching the last dates for issuing new debt during the forecast period. Each district still has housing set aside funds available, and the forecast shows these funds being programmed through the end of the forecast period. • North Macadam/South Waterfront – The forecast reflects availability of significant opportunity funds for a future project(s), as well as the slight possibility of additional increment growth before the ability to issue debt expires in 2025. Revenue CY Estimate FY 2025-26Plan FY 2026-27Plan FY 2027-28Plan FY 2028-29Plan FY 2029-30Plan INTERGOV - Intergovernmental $ 5,590,236 $ 5,445,617 $ 9,291,977 $ - $ - $ - Revenue Total $ 5,590,236 $ 5,445,617 $ 9,291,977 $ - $ - $ - Expense EMS - External Materials and Services $ 5,590,236 $ 5,445,617 $ 9,291,977 $ - $ - $ - IMS - Internal Materials and Services $ - $ - $ - $ - $ - $ - Expense Total $ 5,590,236 $ 5,445,617 $ 9,291,977 $ - $ - $ - • Central Eastside – Funds available in the Central Eastside district are for multi-family development projects. The Clifford apartments rehabilitation is in the pre-planning stage while Alder 9 is currently under construction. The ability to issue debt in Central Eastside expired in 2022, and current plans for the district do not anticipate issuing any additional debt (beyond that planned for known expenditures) by the deadline. Revenue CY Estimate FY 2025-26Plan FY 2026-27Plan FY 2027-28Plan FY 2028-29Plan FY 2029-30Plan INTERGOV - Intergovernmental $ 4,990,948 $ 1,851,905 $ - $ - $ - $ - MISC - Miscellaneous $ 1,000,000 $ - $ - $ - $ - Revenue Total $ 4,990,948 $ 2,851,905 $ - $ - $ - $ - Expense EMS - External Materials and Services $ 4,990,948 $ 2,851,905 $ - $ - $ - $ - IMS - Internal Materials and Services $ - $ - $ - $ - Expense Total $ 4,990,948 $ 2,851,905 $ - $ - $ - $ -

• River District – The forecast reflects remaining projects in the district, as well as funding earmarked via an agreement with Prosper Portland for the development of property owned by PHB in the Broadway Corridor project area. Remaining opportunity funds could be used for this project, or to address funding needs of existing affordable housing facilities in the district. Loan income and potential loan payoffs will continue to provide limited resources through the end of the decade. Revenue CY Estimate FY 2025-26Plan FY 2026-27Plan FY 2027-28Plan FY 2028-29Plan FY 2029-30Plan BEGBAL - Beginning Fund Balance $ - $ - $ 2,102,911 $ - $ - $ - INTERGOV - Intergovernmental $ 4,307,148 $ 1,700,000 $ - $ - $ - $ - Revenue Total $ 4,307,148 $ 1,700,000 $ 2,102,911 $ - $ - $ - Expense EMS - External Materials and Services $ 4,307,148 $ 1,700,000 $ 2,102,911 $ - $ - $ - IMS - Internal Materials and Services $ - $ - $ - $ - $ - Expense Total $ 4,307,148 $ 1,700,000 $ 2,102,911 $ - $ - $ - Portland and Metro Bonds Revenue CY Estimate FY 2025-26Plan FY 2026-27Plan FY 2027-28Plan FY 2028-29Plan FY 2029-30Plan BNDNT - Bond & Note Proceeds $ 41,039,048 $ 11,525,560 $ - $ - $ - $ - SC - Charges for Services $ 1,990,047 $ 1,921,010 $ 1,310,328 $ - $ - $ - FNDXFERS - Fund Transfers - Revenue $ 1,300 $ - $ - $ - $ - $ - Revenue Total $ 43,030,395 $ 13,446,570 $ 1,310,328 $ - $ - $ - Expense PERSONAL - Personnel $ 860,328 $ 725,276 $ 860,328 $ - $ - $ - EMS - External Materials and Services $ 41,090,818 $ 11,585,678 $ 50,000 $ - $ - $ - IMS - Internal Materials and Services $ 529,249 $ 585,616 $ 400,000 $ - $ - $ - FNDXFER - Fund Transfers - Expense $ 550,000 $ 550,000 $ - $ - $ - $ - Expense Total $ 43,030,395 $ 13,446,570 $ 1,310,328 $ - $ - $ - The tables above reflect activity for the Housing General Obligation (GO) Bonds. This includes both Portland and Metro bond issues. Both are expected to be expended by the end of the forecast period, coinciding with the exhaustion of available TIF resources. On November 6, 2018, voters state-wide changed the Oregon Constitution to allow for the lending of GO Bond proceeds for the creation of affordable housing. This notable change to the program allowed PHB to return to its typical public-private partnership model for the creation of affordable housing. This is a first-of-its-kind funding model for an Oregon GO Bond and has required the creation of a program delivery fee for the recovery of Bureau and City ancillary costs (staffing, indirect, support services). PHB may also reconsider the disposition and ultimate ownership of the properties already acquired under the Bond program. Revenue CY Estimate FY 2025-26Plan FY 2026-27Plan FY 2027-28Plan FY 2028-29Plan FY 2029-30Plan INTERGOV - Intergovernmental $ 69,987,142 $ 46,284,709 $ 20,596,102 $ 620,542 $ - $ - Revenue Total $ 69,987,142 $ 46,284,709 $ 20,596,102 $ 620,542 $ - $ - Expense PERSONAL - Personnel $ 678,989 $ 572,624 $ 596,102 $ 620,542 $ - $ - EMS - External Materials and Services $ 69,308,153 $ 45,712,085 $ 20,000,000 $ - $ - $ - Expense Total $ 69,987,142 $ 46,284,709 $ 20,596,102 $ 620,542 $ - $ - Also in 2018, Portland-area voters approved Measure 26-199, the Metro Regional Affordable Housing Bond, which authorizes Metro to issue up to $652,800,000 in general obligation bonds for the development of (new) or acquisition of (existing) affordable housing. PHB receive approximately $211 million of these funds.

Portland Clean Energy Fund (PCEF) The Housing Bureau has partnered with the Portland Clean Energy Fund (PCEF) to award up to $60 million over the next five years for energy efficiency and renewable energy improvements to multi-family affordable housing projects. The portfolio includes projects in the development pipeline which are under Phase 1 that closed in FY 2022-23 and FY 2023-24. Phase 2 Includes projects that are targeting closing starting FY 2024- 25 and/or are still in the very early award/predevelopment stage so that the inclusion of additional clean energy features can be readily incorporated before design and permitting. $20.9 million was budgeted for FY23-24 covering multi-family projects, staffing, and administrative expenses. The $40 million Decision Package for FY24-25 onwards aims to support energy upgrades in approximately 300 units alongside other PHB-funded capital improvements for the next 5-years ($8 million per year). Revenue CY Estimate FY 2025-26Plan FY 2026-27Plan FY 2027-28Plan FY 2028-29Plan FY 2029-30Plan MISCFUND - Miscellaneous Fund Allocation $ 45,852,692 $ 29,594,596 $ 13,597,521 $ 15,247,873 $ 8,000,000 $ - Revenue Total $ 45,852,692 $ 29,594,596 $ 13,597,521 $ 15,247,873 $ 8,000,000 $ - Expense PERSONAL - Personnel $ 874,989 $ 1,122,895 $ 476,300 $ 476,300 $ 476,210 $ - EMS - External Materials and Services $ 44,297,239 $ 28,178,260 $ 12,461,575 $ 14,478,129 $ 7,230,346 $ - IMS - Internal Materials and Services $ 680,464 $ 293,441 $ 293,444 $ 293,444 $ 293,444 $ - Expense Total $ 45,852,692 $ 29,594,596 $ 13,231,319 $ 15,247,873 $ 8,000,000 $ -

Parent: CommEcDev---FYFP-Combined · ← Part 5