Portland City Council on Wednesday will consider a proposal by Mayor Charlie Hales to dedicate an additional $66.7 million to subsidize affordable housing over the next 10 years.

Hales today announced he'll introduce a plan to increase the amount of tax-increment financing (TIF) set aside specifically for creating affordable housing in five urban renewal areas (URAs)—Interstate Corridor, River District, Lents, North Macadam, and Gateway—from 30 percent to 45 percent.

The announcement comes just weeks after Hales declared a housing state of emergency in Portland. The increase in TIF spending is likely a result of a proposal from the Portland Housing Advisory Commission (PHAC) that the city increase TIF spending to 50 percent. PHAC in July was approached by Portland-based civic group Metropolitan Alliance for Common Good (MACG) with the proposal. Since then, MACG has been petitioning the commissioners and the Portland Development Commission (PDC) to raise the floor from 30 to 50 percent. An increase to 50 percent would have dedicated approximately $90 million to affordable housing.

"We are in a housing crisis," Hales wrote in a news release. "Given that, we have scrubbed each URA in detail, looking at both opportunities and costs, in an effort to direct money toward affordable housing while maintaining projects to enhance jobs, livability and equity.”

Leah Greenwood, a former senior housing policy manager for PDC who's been working with MACG on the proposal, says she's pleased with the proposed increase.

Housing Commissioner Dan Saltzman and Commissioner Nick Fish both support Hales' proposal, but commissioners Steve Novick and Amanda Fritz have expressed reservations.

We should be looking to find out how much is there in each URA that really isn’t needed for other important promises—particularly transportation," Fritz said on Thursday. "People in affordable housing need parks, and they also need safe ways to get in and out of their homes."

PDC board members aren't sold on the increase either. At a hearing last week, PDC Director Patrick Quinton said he wants to see more money dedicated to affordable housing, but worries that taking TIF money from the coffers will decrease the amount of revenue-generating projects the city can support.

City Council will consider the increase at a Wednesday, October 28 public hearing. They're expected to vote the following week.