$106 Million In Unbudgeted Housing Funds To Be Added To Portland City Budget – KXL

PORTLAND, Ore. — Approximately $106 million in previously unbudgeted housing funds will now be reflected in the City of Portland’s budget, City Administrator Raymond C. Lee III said in a memo to the City Council on Friday.

The funds were identified through an analysis conducted by city finance and housing staff and include money that had accumulated over multiple years but was not incorporated into the city’s formal budget process.

More than 40% of the unbudgeted total comes from the Housing Investment Fund, which was established in 2016 to track financial activity related to multifamily housing operations. The remaining funds — being publicly reported for the first time — come from other Portland Housing Bureau accounts that are subject to stricter spending restrictions, according to the memo.

Lee said the disclosure reflects a broader shift in how the city manages its finances under its new form of government.

“This moment reflects the City’s ongoing shift from bureaus and offices developing budgets independently to the City of Portland managing its finances holistically,” Lee wrote, adding that he is prepared to support the City Council in making informed decisions about how the funds are used.

City officials noted that it is common practice for municipal governments to allow funds to accumulate over several years before deploying them for major projects or programs. Going forward, Lee said the city will include such contingency and reserve funds in its annual budget process.

Lee also said the administration will select outside legal counsel to conduct an independent investigation into the housing funds.

“The administration is committed to providing accurate information to support Council deliberations and decision-making about these funds, the broader budget, and the City’s long-term financial health,” he wrote.