Portland OKs construction tax to pay for affordable housing

The Portland City Council unanimously approved a new tax Wednesday projected to raise more than $12 million a year for affordable housing.

"The lack of affordable housing is the greatest crisis facing our city right now," said Commissioner Dan Saltzman, who oversees the Portland Housing Bureau, recycling the same line he used during a meeting two weeks ago.

The construction-excise tax - 1 percent of the permitted value of commercial and residential projects - will ensure that "growth pays for growth," Saltzman said.

Officials will begin collecting the tax Aug. 1 but will exempt housing built for people with limited incomes.

Separately, Saltzman on Thursday will ask the City Council to send a $258.4 million bond measure to voters to pay for 1,300 units of affordable housing.

Also during Wednesday's City Council meeting, officials unanimously approved changes to the city's lobbying regulations. The tweaks narrow restrictions on former employees who lobby the city. Auditor Mary Hull Caballero previously said existing rules are so broad they are "all but unenforceable."

At the same time, Hull Caballero convinced the City Council to increase the maximum fine for violations from $500 to $3,000.

"Rules are not meaningful unless there's meaningful enforcement," Commissioner Steve Novick said.

-- Brad Schmidt

503-294-7628

@cityhallwatch

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