Portland advances state‑funded MURAL program to second reading after council splits on unit minimum and oversight

Portland City Council advanced, on first reading, an ordinance to adopt the Moderate Income Revolving Loan Program (MURAL) intended to let the city access state no‑interest loans to support mixed‑income housing projects. The ordinance designates Prosper Portland as the administrator and sets program parameters to align with state rules; the Housing and Permitting Committee had earlier reduced the affordability threshold and lowered a proposed minimum project size from 75 to 20 units.

Councilor Green proposed three separate amendments. Green Two, which would remove the minimum‑unit requirement and strike a mixed‑use project priority so smaller infill projects (cottage clusters, townhomes and 4–19 unit projects) could access funds, won council approval in a roll call (transcript records the amendment passing by a large majority). Proponents said removing the minimum helps deploy a limited pot of state funds more quickly across many smaller projects and supports more immediate housing production in neighborhoods; opponents had argued the council should prioritize larger projects that move the housing‑production needle.

Green Three, which would codify a pathway for the council to see project underwriting/financial documents for oversight, and Green Four, which would move program administration from Prosper Portland to the Portland Housing Bureau (PHB), both failed after extended debate. Administration witnesses said Prosper currently has capacity and experience to stand up the state program quickly and that moving administration to PHB could slow timely disbursement; advocates for the PHB option argued in‑house administration improves democratic accountability and mitigates counterparty risk. Testimony from developers and housing organizations—including Robert Pyle of Oak Leaf Redevelopment and Zach Lindell of Multifamily Northwest—urged removal of the unit minimum to access the state fund more broadly.

Council advanced Document 2026‑124 to second reading, leaving the program’s administrator as Prosper Portland for now, and instructed bureaus to continue coordination on implementation details, oversight, and any intergovernmental agreements needed to address tax/exemption interactions and enforcement.