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Portland Mayor Ted Wheeler has directed the Housing Bureau to stop issuing housing bonds, pending a review.

But Kurt Creager, the bureau’s director, said that some of its work will continue despite Wheeler’s review.

鈥淭his does not sideline any deals that were already in the pipeline,鈥� Creager said in an interview.

Nevertheless, the move effectively stops new deals for the Housing Bureau as city officials struggle to respond to an ongoing housing crisis. Creager said he expects the review to take three to six months.

Projects that are already under way will continue, Creager said.

鈥淚 feel like we’re still responsive,鈥� he said.

Wheeler entered office on the heels of criticism that the Housing Bureau was building too few affordable housing units for its spending. Media dug into deals like a $2.4 million loan to Hacienda Community Development Corporation for a new office building that included no affordable housing. Yet in November, voters approved a $258 million ballot measure to fund affordable housing in response to skyrocketing rents and home prices across the metro area.

Wheeler wants to make sure the money is well spent.

Wheeler last week met with Creager to discuss the way forward for affordable housing spending. Shortly thereafter, Wheeler wrote on Twitter, 鈥淚 have directed (the) Housing Bureau to suspend the use of housing bond funds until we clarify our goals and priorities.鈥�

Creager said he expected housing spending to endure a 鈥渉iatus鈥� as Wheeler took office.

鈥�(Wheeler) needs some time to understand what the original plan was that was proffered by Commissioner (Dan) Saltzman and approved by the voters, and either validate or adjust the strategy,鈥� Creager said.

Creager said he would meet with Housing Bureau staffers in a previously scheduled retreat to work on ways to evaluate what they’ve accomplished. Wheeler has asked for metrics to measure housing production.
鈥淚’m looking forward to a very robust conversation with Mayor Wheeler as far as benchmarking performance,鈥� Creager said.
Wheeler’s moratorium on new Housing Bureau deals came after the City Council agreed to buy the Ellington Apartments in Northeast Portland, and preserve 44 units as affordable. The property, at 1610 N.E. 66th Ave., has 263 units total.
The Housing Bureau had to move quickly, Creager said. Federal Housing and Urban Development dollars will be leveraged along with city dollars to renovate the property.

鈥淲e’ll be improving the whole property,鈥� he said.

The $47 million purchase comes with an additional $900,000 in closing costs. The deal will be funded in the short term by a transfer of money from the Bureau of Development Services.聽The Housing Bureau will repay BDS with bond funding and HUD money. The City Council approved the deal on Dec. 21.

In an unusual move, the council is also serving as the oversight committee for the bond issuance.

鈥淚 fully expected and understood that was a temporary outlier,鈥� Creager said.

Guardian Management was extended as property manager temporarily, but the Housing Bureau will seek a replacement聽within six months, Creager said.

The Housing Bureau is moving forward with potential redevelopment of a property at 5020 N. Interstate Ave.聽The bureau plans to issue a 鈥渓ightning round鈥� notice of fund availability on聽Jan. 23, Creager wrote in a Jan. 4 internal Housing Bureau memo.

The property is adjacent to the MAX yellow light-rail line and a busy intersection with North Alberta Street.

鈥淲e think it’s a key site,鈥� Creager said.

The parcel is currently occupied by J’s Market, a convenience store. The owner is interested in redevelopment options that would allow the store to continue operating, Creager said.

The Interstate Corridor Urban Renewal Area is the only URA in Portland with sufficient resources for development, Creager wrote in the memo. The Interstate project can leverage a 9 percent tax credit from Oregon Housing and Community Services. The Interstate area also has $4 million available for multifamily development, $5 million for homeownership development and the Housing Bureau-owned parcel at 5020 N. Interstate Ave.