2026 Housing-Related News Coverage

A court-ordered receiver has taken control of Rockwood Tower, a 65-room family homeless shelter in Gresham, after owner East County Housing LLC defaulted on $2.37 million in loans following Multnomah County’s termination of its contract over alleged financial mismanagement. The shelter was purchased in 2021 with a $6.8 million Project Turnkey grant—state funds distributed by the Oregon Community Foundation to convert hotels into homeless housing—but the owner began using the property as collateral for loans in early 2025 and stopped making payments by September. Despite deed restrictions requiring the property remain permanent housing, it’s unclear whether the shelter will continue serving homeless families as WaFD Bank pursues sale of the distressed property.

Oregon’s Urban Growth Boundary (UGB) system, established by SB 100 (1973), is creating tension between housing affordability and economic growth as cities struggle to expand within restricted boundaries. Hillsboro’s failed Oregon Jobs Act, sponsored by Senator Janeen Sollman to add 1,700 acres for industrial development including data centers, exemplifies how UGB expansion has become contentious, with critics like Oregon Agricultural Trust opposing development on farmland. While the Legislature has passed piecemeal measures to help high-rent communities expand their boundaries, the state faces larger questions about redesigning the UGB framework to balance housing costs, economic growth, and land preservation.

Home Forward, Portland’s housing authority, passed a 2022 policy change that significantly narrowed when it would terminate rent assistance for voucher holders, requiring felony convictions rather than arrests or evidence for drug dealing and violent crimes—a move led by then-policy director Taylor Smiley Wolfe, who now works as deputy chief of staff for Governor Tina Kotek. The policy change, justified on racial equity grounds despite data showing white tenants were overrepresented in most termination categories, has left residents like those at the Louisa Flowers apartment building frustrated with unchecked drug dealing and dangerous behavior. Home Forward has not studied the policy’s effects since implementation over three years ago, though it hired a consultant in February 2025 to begin assessment, and the agency’s board maintains the approach prioritizes housing stability over punitive measures.

Up to 134 shelter beds funded by the city of Portland will close or relocate following the shutdown of nonprofit contractor Sunstone Way, which has faced allegations of fiscal mismanagement including a whistleblower lawsuit and a 2022 Multnomah County audit finding it overbilled by $525,000. Mayor Keith Wilson’s administration will close a 38-pod shelter in the Lloyd District and decommission 96 beds at a Centennial neighborhood shelter (opened as part of Wilson’s pledge to add 1,500 shelter beds), while transferring management of a 55-pod Naito Parkway shelter to Transition Projects. The closures represent a significant setback to the city’s shelter capacity amid ongoing homelessness challenges and concerns about contractor accountability.

Up to 134 shelter beds funded by the city of Portland will relocate or close following the shutdown of nonprofit contractor Sunstone Way, which faces allegations of fiscal mismanagement including a whistleblower lawsuit and past overbilling. The closures affect multiple shelters including a 96-bed Centennial facility opened as part of Mayor Keith Wilson’s pledge to create 1,500 new shelter beds in his first year, while a Southwest Naito Parkway shelter will transfer to Transition Projects’ management. The city’s Homeless Services Department is working to keep two county-operated Sunstone shelters open and will seek new providers through an expedited process.

Multnomah County is scrambling to replace shelter space after cutting ties with East County Housing LLC over accounting discrepancies at Rockwood Tower, a former Best Western in Gresham converted to family shelter with a $6.8 million state grant. The contractor, founded by former tech executive Brad Ketch, lost the property to foreclosure by WaFD Bank after losing its county shelter contract, forcing the displacement of homeless families who had been housed there. County Commissioner Vince Jones-Dixon announced plans to use a Days Inn & Suites on Southeast Stark Street fell through due to financing issues, leaving the county without immediate replacement shelter capacity.

The Oregon Business Council urged Gov. Tina Kotek’s economic prosperity council to pursue more ambitious policies to address the state’s economic challenges, including high housing costs, outdated land use rules, and concerns about businesses leaving Oregon. The council, led by former Senate Minority Leader Tim Knopp, was created in December to develop policy recommendations on issues like permitting reform and tax incentives, with formal proposals expected in summer. The business group criticized Oregon’s corporate activity tax and called for 2027 legislative action on land use reform, warning that Portland’s high taxes and regulatory burden are hindering the state’s ability to compete for talent and investment as it faces negative population growth for the first time in modern history.

Home Forward, Portland’s housing authority managing over 12,000 federal housing vouchers and 7,000 affordable units, briefed its board on March 17 about ongoing financial struggles including an 11.7% vacancy rate (over 900 empty units), widespread rent nonpayment, and operational challenges. Agency leaders attributed the crisis to factors including market rents dropping to match affordable rents, the city’s FAIR ordinance requiring landlords to accept tenants who may struggle to afford rent, oversupply of studio and one-bedroom units at 60% area median income levels, and poor performance by property management companies like Pinehurst Management. The agency’s budget shortfall has shrunk from $30 million to $13.8 million due to increased federal funding, while Portland City Council is considering using unspent housing dollars for “rent buy-downs” to help address vacancies.

Two bills passed this session to expand Oregon’s 2024 urban growth boundary expansion law for affordable housing: HB 4035 (2026), which broadened eligibility to “rent burdened” cities and allows use of resource land, and HB 4082 (2026), requested by Gov. Tina Kotek, which enables expansions for manufactured housing for seniors. The legislation particularly benefits Woodburn, a rent-burdened city surrounded by farmland that can now pursue development of a 120-acre site outside its Urban Growth Boundary (UGB), though concerns remain from 1000 Friends of Oregon about prioritizing development within existing boundaries. The bills aim to address Oregon’s housing crisis by streamlining the expansion process while maintaining local land-use requirements and public input procedures.

Oregon private equity executive John von Schlegell has filed eleven ballot measures seeking to reshape state policy on taxes, Urban Growth Boundary (UGB) expansion, campaign finance, and other issues, representing what critics call the biggest assault on representative democracy since the Bill Sizemore era. Key measures include Petition 60 (10-year sunset on state taxes), Petition 66 (estate tax abolition), and Petition 61 (adding urban reserves to cities’ growth boundaries), which would dramatically increase developable land in metro areas overnight. The article frames von Schlegell’s actions as part of a broader trend of ultra-wealthy conservatives using their resources to influence politics following Donald Trump’s 2024 election.

Sunstone Way, a nonprofit operating homeless shelters in Portland, is closing on July 1 due to reduced government funding and rising costs, while unionized workers discovered billboard advertisements for the organization’s services during severance negotiations for employees at the 120-bed Market Street Shelter. The closure follows a 2022 audit revealing Sunstone Way overbilled Multnomah County by $525,000 and a recent lawsuit by a former finance executive alleging overspending on office rent and retreats. Oregon AFSCME argues the situation demonstrates that the city and county should manage shelters directly rather than contracting with nonprofits to reduce reliance on expensive consultants and protect public resources.

A Gresham family shelter called Rockwood Tower has been placed into receivership after its owner, East County Housing LLC, defaulted on $2.37 million in loans and other debts following Multnomah County’s termination of its contract over alleged mismanagement of funds. The shelter was purchased in 2021 with a $6.8 million Project Turnkey grant—state money distributed by Oregon Community Foundation to convert hotels into homeless housing—and is now managed by a court-appointed receiver while Portland-area homeless families face displacement. The property’s founder, Brad Ketch, had previous accounting issues flagged by board members, and the receivership raises questions about whether the building will continue serving its mandated permanent housing purpose as required by Project Turnkey grant terms.

WaFD Bank foreclosed on Rockwood Tower, a 65-room family shelter in Gresham, after owner East County Housing LLC defaulted on $2.37 million in loans following Multnomah County’s termination of its contract over alleged financial mismanagement. The shelter was purchased in 2021 with a $6.8 million Project Turnkey grant distributed by Oregon Community Foundation, despite past accounting issues involving founder Brad Ketch, a former technology executive. The foreclosure raises questions about whether the property will continue serving homeless families as required by Project Turnkey deed restrictions, though Gresham continues renting rooms there after the county stopped payments in July.

Homeless shelter provider Sunstone Way, which announced it will close July 1 citing financial constraints, has been running billboard advertisements around Portland despite its claimed budget shortfall. Multnomah County and city officials confirmed they do not reimburse contractors for advertising expenses, though Sunstone Way did not respond to questions about how the billboards are funded. Commissioner Meghan Moyer expressed concerns about oversight of reimbursements for administrative costs and whether the county is receiving adequate services for its payments to the nonprofit.

A whistleblower lawsuit accused homeless shelter provider Sunstone Way of excessive spending, and the nonprofit announced closure plans for July 1 citing financial constraints, yet billboards advertising its services remain visible around Portland. Multnomah County and city officials confirmed government contracts don’t reimburse advertising expenses, though providers can use non-government funding for marketing. Commissioner Meghan Moyer expressed concern about oversight of reimbursements for other line items like case management and administration, stating “I am not convinced we are getting what we are paying for.”

The video features a discussion about Portland’s housing crisis centered around “Dear Portland,” an exhibition created by Michael Larson’s nonprofit Humans for Housing that uses personal video portraits to humanize homelessness data and combat compassion fatigue among residents. Megan Howard of Tandem Properties, a second-generation Portland housing provider, argues that landlords are misunderstood and should be seen as part of the solution, noting that rising property taxes, insurance, and utility costs drive rent increases while Portland’s loss of major employers prevents wage growth from keeping pace. Both guests emphasize that housing alone is insufficient—chronically homeless individuals need wraparound services like case management and behavioral health support, but government funding cuts are forcing service providers to lay off staff and close shelters. The discussion highlights a troubling dynamic in Multnomah County where for every three people stably rehoused, four enter homelessness, a ratio expected to worsen as federal and local funding shrinks. The exhibit and conversation represent a broader call for collaboration among housing providers, nonprofits, and government to address what both guests frame as an interconnected economic and social crisis rather than blaming any single group.

Federal immigration enforcement actions are creating housing insecurity across the country, with over 1,100 Nebraska families creating emergency plans and eviction filings in Minneapolis-St. Paul rising 25% above previous years, prompting local governments to allocate emergency rental assistance while Oregon lawmakers passed legislation restricting landlords from disclosing tenants’ immigration status and sensitive personal information. The crackdown affects the 9.6 million immigrant-headed renter households that comprise 21% of all renters, with proposed federal HUD rules threatening to remove approximately 80,000 people—including 37,000 U.S. citizen children—from subsidized housing by prohibiting “mixed-status” families. Housing advocates warn that enforcement actions are pushing families into informal “shadow housing” arrangements while creating broader economic ripple effects including lost rental income, declining property values, and reduced business activity in affected communities.

McMenamins is renovating the historic Taft Hotel in downtown Portland, which will feature 63 hotel rooms, three bars and restaurants, and a direct bridge to the adjacent Crystal Ballroom. The building previously operated as the Taft Home, a low-income senior residence that closed in 2021 after displacing over 70 residents due to building violations. McMenamins purchased the 1906 property for $1.5 million in 2024, with plans to preserve original architectural features while adding new amenities, though no official opening date has been announced.

Sunstone Way, a nonprofit shelter provider operating six low-barrier shelters in the metro area with funding from Multnomah and Clackamas counties and the city of Portland, announced it will close July 1 due to reduced government funding and rising costs. The closure comes after former finance director Kate Fulton filed a whistleblower lawsuit last month alleging financial mismanagement, including overspending on office space and staff retreats, and follows a 2022 county audit that found the nonprofit had overbilled Multnomah County by $525,000. County and city officials say they are working with urgency to ensure continuity of services for shelter residents and assess impacts on the overall homeless services system.

Portland city councilors are increasing scrutiny of Home Forward, the city’s housing authority that manages 7,000 affordable apartments, after investigations revealed a 10% vacancy rate, six-month average turnover times for empty units, and struggles with nonpayment of rent and drug markets in buildings. The council is debating how to spend $20 million in unspent Portland Housing Bureau funds, with proposals including rent buydowns to help financially distressed affordable housing providers, though some councilors like Eric Zimmerman question whether this amounts to a bailout for Home Forward’s operational failures. Councilor Elana Pirtle-Guiney has proposed withholding public funding from Home Forward unless it meets occupancy standards, while interim housing bureau director Michael Buonocore (Home Forward’s former executive director) argues the entire affordable housing sector faces a “near crisis” due to rising operating costs outpacing rental income growth.

Metro President Lynn Peterson is stepping down from her elected position to become Lake Oswego’s city manager, leaving nine months before her second term ends on March 13. Deputy council president Duncan Hwang will serve as interim president until the Metro Council selects a new president within 90 days, with Metro Councilor Juan Carlos González widely expected to win the May primary election. Peterson highlighted her accomplishments including building over 5,600 affordable homes with city and county partners and housing more than 15,000 people across the region.

Oregon’s Building Code Division board voted 7-1 to adopt new energy-efficiency standards that encourage builders installing air conditioning in new homes to use heat pumps instead of conventional AC units, with rules taking effect in October. The updated code, which aims to help Oregon meet its requirement to reduce energy use in new residential buildings by 60% from 2005 standards by 2030, is expected to cut energy use by 27% compared to the 2023 code and save homeowners approximately $171 annually. Oregon joins California, Colorado, New York, and Washington in promoting heat pump adoption through building codes, part of a broader trend as approximately 25% of Americans now live in jurisdictions that require or encourage zero-emission buildings.

The Oregon Legislature passed HB 4082, allowing cities to expand their Urban Growth Boundary (UGB) to add affordable housing for older adults, resolving a conflict with another UGB expansion bill for Woodburn. The bill, requested by Governor Tina Kotek, passed the House 41-8 and eliminates the typically expensive and lengthy state approval process for UGB expansions when used for senior housing, manufactured homes, and similar developments. Lawmakers also passed SB 1501 to use $365 million in state bonds to renovate Portland’s Moda Center, with repayment tied to tax revenues from the venue and Trail Blazers.

Multnomah County’s Fiscal Compliance Unit is conducting a routine three-year review of Sunstone Way, a nonprofit shelter provider operating six shelters in the Portland area, following a whistleblower lawsuit filed by former finance director Kate Fulton alleging excessive spending on office space, staff retreats, and a $210,000 overbilling by another nonprofit. The review, already scheduled before Fulton’s February 12 complaint, examines internal controls and expense validity at an organization with a history of accounting issues, including a 2022 overbilling of Multnomah County by $525,000. County auditors visited Sunstone Way this week as part of the ongoing investigation, though the nonprofit claims the review has been completed on their end.

A federal judge barred federal agents at Portland’s ICE facility from using tear gas and chemical munitions that could seep into nearby affordable housing complex Gray’s Landing unless there is an “imminent threat to life,” following a lawsuit by residents and Reach Community Development. U.S. District Judge Amy M. Baggio found federal agents showed “deliberate indifference” after eight months of deploying crowd control munitions during protests that caused residents to experience wheezing, migraines, and trauma, with some sleeping in bathtubs and wearing gas masks to bed. The ruling represents a significant constraint on federal immigration enforcement operations in Portland, with another similar case brought by protesters and journalists represented by the Oregon ACLU expected to be decided by U.S. District Judge Michael Simon by Monday.

The Oregon Legislature passed HB 4035, allowing Woodburn to expedite its Urban Growth Boundary (UGB) expansion to build 600 homes, including affordable farmworker housing, with Gov. Tina Kotek’s signature still needed. The bill streamlines timelines while maintaining compliance with SB 100 (1973)’s land use protections, after an earlier proposal (Senate Bill 1564) that would have bypassed the process entirely stalled following opposition from land use watchdogs like 1000 Friends of Oregon. The unique agreement requires private developer Mountainview Land Company to donate five acres for farmworker housing, marking an unprecedented collaboration between private development and community organizations in addressing housing needs for Woodburn’s majority-Latinx agricultural workforce.

Portland’s Housing Bureau and Mayor Keith Wilson launched a “home sharing” program offering homeowners $1,000 to rent spare rooms for 12 months at up to $800/month through PadSplit or Ecumenical Ministries of Oregon. The program aims to increase housing stock and address homelessness, though the $800 rent may be unaffordable for many currently unhoused residents, leaving the target demographic unclear. This follows Multnomah County’s 2022-2024 “Housing Multnomah Now” pilot that housed 311 households by incentivizing landlords to rent to people from streets or shelters.

The Oregon Bureau of Labor and Industries reversed its December 2025 ruling that prevailing wages must be paid for derelict vessel removal, saving the Port of Newport and other ports statewide significant costs on a $19 million state cleanup program. The reversal came after the Oregon Public Ports Association challenged BOLI’s initial determination that boats qualified as “structures” under prevailing wage law, though BOLI provided no explanation for its amended decision. The rare reversal comes amid ongoing controversy over BOLI’s prevailing wage interpretations affecting housing projects, with state Sen. Dick Anderson reportedly considering challenging Labor Commissioner Christina Stephenson’s reelection after SB 1566 (2026), which would have clarified prevailing wage law, died in committee.

The Oregon Senate passed House Bill 4123 on Monday by a 24-3 vote, allowing tenants to collect up to twice their monthly rent if landlords knowingly disclose confidential information like immigration status, Social Security numbers, or medical records. The bipartisan bill, now heading to Gov. Tina Kotek’s desk, strengthens 2025 protections for immigrants without permanent legal status by establishing explicit monetary penalties, with Republican Sen. Dick Anderson calling it a “balanced approach” that protects privacy without burdening landlords. The legislation comes as Oregon Democrats push to bolster immigrant protections during the Trump administration’s immigration crackdown, building on Oregon’s 1987 sanctuary state status.

Oregon relaxed building codes after the 2020 Almeda Fire to ease rebuilding, but state officials and Energy Trust of Oregon used pandemic relief funds and doubled utility-funded incentives to encourage fire survivors to rebuild to current energy-efficiency standards instead. The approach proved successful in Canby’s neighboring communities of Talent, Phoenix, and Ashland, where builder Suncrest Homes and others constructed 35 highly efficient, fire-resistant homes using triple-pane windows, improved insulation, and heat pumps, though manufactured home parks housing low-income and Latine residents have been slower to recover. State Rep. Pam Marsh, whose district includes the fire zone, says the “carrots-instead-of-sticks” strategy demonstrates how to rebuild more resiliently after disasters while meeting climate goals.

Oregon issued permits for only 4,800 multifamily housing units in 2024—the lowest in 12 years—falling far short of Gov. Tina Kotek’s 36,000 annual unit target set in her 2023 homelessness emergency declaration. The state needs 95,000 units immediately and nearly 500,000 over the next 20 years, but despite five new housing laws enacted in July to simplify permitting and expand “middle housing” options, private sector construction remains constrained by cautious lenders, higher interest rates, and out-of-state banks’ negative perceptions of Oregon’s quality of life. While state funding helps stimulate development, experts say it cannot overcome these larger market forces that are driving the housing shortage.

Some members of Governor Tina Kotek’s Prosperity Council, including real estate investor Jordan Schnitzer, have criticized her support for Senate Bill 1507A, which disconnects Oregon from federal “bonus depreciation” tax cuts in Trump’s tax bill, costing businesses $267 million over two years. The bill, which passed along party lines, retains tax cuts on tips and overtime but eliminates accelerated depreciation for business investments, prompting Portland developer Bob Ball and others to warn it will hurt housing production and economic competitiveness. Democrats argue the $900 million in potential revenue losses from fully adopting Trump’s tax cuts would devastate Oregon schools and social services, while business groups contend bonus depreciation incentivizes job-creating investments.

Portland’s Home Forward housing authority is approaching financial distress, with its debt service coverage ratio plummeting from 2.36 in 2020 to 1.14 in 2024—barely above the 1.1 breaking-even threshold required by most lenders. The agency, which owns about 7,000 affordable units, is struggling with units taking an average of 185 days to fill, nearly half of tenants being more than 30 days delinquent on rent, and $8.4 million in lost revenue from vacancies in 2025, forcing it to make interagency loans to cover struggling properties. Despite a projected $30 million budget deficit, Home Forward’s top four executives received salary increases ranging from 59% to 74% between 2022 and 2025, with CEO Ivory Mathews’s compensation rising from $215,001 to $342,849.

A whistleblower complaint alleges that Sunstone Way CEO Andy Goebels charged bar tabs totaling $257 to the nonprofit shelter provider on February 21, 2025, potentially violating Multnomah County contracting rules that prohibit using Homeless Services Department funding for alcohol expenses. Former finance director Kate Fulton, who filed the complaint in Multnomah County Circuit Court after being terminated, documented credit card charges from Paddy’s Bar & Grill, while three anonymous former employees described a “boozy culture” including weekly “Thirsty Thursday” gatherings at Portland bars. The allegations raise questions about compliance with both county funding requirements and Sunstone Way’s own employee handbook, which prohibits charging alcohol to the organization except under specific circumstances.

The Urban League of Portland received an eviction notice from its landlord, Portland Community Reinvestment Initiatives (PCRI), requiring the nonprofit to vacate its longtime headquarters at 10 N Russell St. by March 1, 2026. The dispute stems from disagreements over building conditions and a 2006 agreement in which PCRI bought the building to bail out Urban League financially, with Urban League claiming there was an understanding the building would eventually be sold back. Urban League’s general counsel urged Portland Mayor Keith Wilson and City Council to intervene, calling the eviction “retaliatory” after Urban League publicly highlighted the building’s disrepair and noting PCRI received $1.5 million in city loan dollars.

The Oregon Department of Justice ruled that the Oregon Community Foundation can withhold applications for the $125 million Project Turnkey housing program from public disclosure, despite the program being funded by taxpayer money through the Oregon Legislature. Willamette Week sought the records to investigate Rockwood Community Development Corporation, a major grantee that purchased a Best Western in Portland for $6.7 million but later lost its Multnomah County contract over billing disputes and had a history of governance issues. The DOJ determined OCF doesn’t qualify as the “functional equivalent” of a public body under Oregon’s public records law, though Deputy Attorney General Benjamin Gutman noted this “does not mean that nondisclosure is good governance.”

Gov. Tina Kotek and state lawmakers are addressing Oregon’s affordable housing crisis with hundreds of millions in funding and new programs, including legislation to expand mobile home communities for older residents. Half of Oregon’s 620,000 renting households are “rent burdened” (paying over 30% of pretax income on housing), with 1 in 4 spending 50% or more, according to a 2021 Oregon Law Center report. Coastal counties face particular challenges as seasonal tourism reduces available housing for lower-wage hospitality workers, prompting Tillamook County to restrict new rentals in 2023 to just 1% annual growth.

A Pearl District landlord has filed a tort claim threatening to sue Portland for $5 million over an emergency homeless shelter opened last fall under Mayor Keith Wilson’s direction, alleging the facility has decreased property values and created safety issues. The landlord, who controls the nearby luxury ORO Apartments, hired private security to document drug use, tent camps, and waste around the shelter operated by the Salvation Army in a leased office building at Northwest Northrup Street and 14th Avenue. The tort claim demands the city address the alleged problems by March 15 or face a lawsuit for inverse condemnation, nuisance, and negligence.

A whistleblower lawsuit alleges that Sunstone Way, a nonprofit receiving $13 million annually to operate homeless shelters in Multnomah and Clackamas counties including facilities in Northeast Portland, mismanaged public funds on upscale offices, staff retreats, and bloated contracts before firing its finance director who raised concerns. The Oregon Department of Justice ruled that the Oregon Community Foundation can keep Project Turnkey housing program applications secret despite the $125 million state-funded initiative’s use of public money, blocking transparency into how grantees like Rockwood CDC—which lost its Multnomah County contract over billing issues—qualified for funds. Governor Tina Kotek has reportedly soured on the Made in Old Town shoe manufacturing project after its executive director resigned, following the project’s failure to meet private fundraising requirements tied to its $7 million Prosper Portland loan.

Home Forward, Portland’s housing authority, takes an average of 185 days to fill vacant units in its buildings, according to new data, with its contractor Pinehurst Management averaging 292 days—a timeline affordable housing developers call “egregious” given the city’s housing crisis where 7,500 people sleep homeless nightly. Mayor Keith Wilson, who has recently focused attention on Home Forward’s 11% vacancy rate, is working to strengthen coordination with housing providers to speed up unit turnover, though he does not directly control the agency’s operations. The lengthy turnover times stem from extensive unit repairs, marketing processes, and waitlist management, even as Home Forward continues rapidly developing new affordable housing projects with units at 60% area median income—the same type it struggles to fill.

Home Forward, Portland’s housing authority, faces criticism over tenant screening policies that limit consideration of felony convictions, which readers believe contributed to drug activity moving from Dawson Park into a low-income apartment complex. Critics argue the policy prioritizes ideological goals over tenant safety, with readers calling for better solutions to prevent destructive individuals from endangering other residents in public housing. The controversy highlights ongoing debates about balancing fair housing access with community safety in Portland’s affordable housing programs.

SB 1566 (2026), sponsored by Dick Anderson and Vikki Breese-Iverson, would clarify prevailing wage laws to reduce costs for affordable housing and child care projects, but has stalled after powerful labor leader Robert Camarillo warned lawmakers not to pursue such reforms. The bill emerged from disputes over Oregon Bureau of Labor and Industries interpretations that developers say have increased project costs by 10-20%, preventing child care facilities from being built in affordable housing developments, though unions argue the bill represents a “false choice” that would cut worker wages. Despite Tina Kotek’s housing emergency declaration, Democratic leadership has blocked the bill from advancing, highlighting the rift between affordable housing advocates and labor unions.

The American Federation of State, County and Municipal Employees is organizing a campaign calling for the removal of Sunstone Way’s CEO Andy Goebels and two other executives following a whistleblower complaint alleging financial mismanagement, including profligate spending and contractor overpayments at the Portland-area nonprofit shelter provider. The union, representing 130 Sunstone Way workers, has coordinated 200 letters to the organization’s board and is planning a Feb. 24 rally amid concerns about staff cuts and the closure of the Market Street Shelter. Sunstone Way was Multnomah County’s 11th-largest contractor in fiscal year 2024 but has recently lost major contracts, including the city’s 100-bed pod village in Southwest Portland.

A former finance director at Sunstone Way, a major homeless shelter operator in Portland, has filed a $4.5 million whistleblower lawsuit alleging financial mismanagement, including overspending on office space, staff retreats, and questionable contracts with related organizations, followed by retaliation after she raised concerns. Kate Fulton’s complaint details how CEO Andy Goebel allegedly moved offices while still paying rent on the old space, overbilled the county, paid consulting fees to connected individuals, and failed to disclose transactions, leading to severe cash flow problems that nearly caused payroll to be missed. The lawsuit adds to Sunstone Way’s troubled history with Multnomah County, which previously found the organization overbilled the county by $525,000 in 2022, and comes as the nonprofit has already lost some shelter contracts.

A group of nonprofits, including the Sunnyside Shower Project, has taken over the former Sunnyside United Methodist Church in Portland to provide community services ranging from youth basketball to free showers, clothes, and hygiene supplies for unhoused residents three days a week. Director Lindsay Cogan-Sant says the project, founded by Hannah Wallace during the pandemic, now relies on 70 volunteers who help connect housed and unhoused neighbors to resources they need. The collaborative effort has transformed the historic building into a community hub serving residents who have been coming to the space for decades.

Oregon lawmakers advanced SB 1523, which would require landlords to offer paper-based alternatives for rental applications, rent payments, and keys to accommodate renters who lack access to or familiarity with technology. Housing advocates testified that online-only portals create barriers for older adults, low-income renters, and people with disabilities, with nearly 1 in 4 seniors lacking smartphones, while landlords opposed the bill citing concerns about processing delays and inefficiency. The bill addresses a gap in the Oregon Fair Housing Act, which doesn’t cover age or income-based accommodations despite existing disability protections.

Multnomah County Commissioner Julia Brim-Edwards announced her candidacy for county chair, challenging Commissioner Shannon Singleton to succeed Jessica Vega Pederson, who is not seeking reelection. Brim-Edwards, a former Nike executive who won a special election representing Southeast Portland in 2023, has been critical of the county’s handling of homelessness and drug deflection programs, promising “greater urgency and action” to achieve measurable results. She secured endorsements from Portland Mayor Keith Wilson and several centrist City Council members, contrasting with Singleton’s more progressive support base.

Portland’s Housing Bureau has $106 million in unspent housing funds, far exceeding the $21 million initially reported and the $40 million figure disclosed by City Councilor Loretta Smith. City Administrator Raymond Lee revealed the total in a Friday memo but offered little explanation for how such a large sum accumulated without being used to address the housing crisis. City councilors are now demanding answers about how the bureau failed to budget and spend these resources.

This article introduces a special edition examining three housing and development challenges across Portland neighborhoods, illustrating how local policy decisions create unintended consequences beyond the downtown core. Editor Aaron Mesh highlights stories about a low-income apartment building in Eliot where city housing authority reforms have led to deteriorating conditions, preservationists blocking the demolition of Cleveland High School in Hosford-Abernethy, and disputes over new fourplex development in the Ashcreek neighborhood. The piece argues that while viral moments downtown capture national attention, these quieter neighborhood dramas reveal the complex realities of Portland’s housing crisis and urban development struggles.

Lloyd Center mall in Northeast Portland is closing permanently after this past holiday season, with developers planning to redevelop the 18-block site into a mixed-use neighborhood with housing, retail, transit connections, and public open space. Tenant Matt Henderson of Virtua art gallery is leading a Save Lloyd campaign with over 5,000 petition signatures, arguing the mall has experienced a creative rebirth with businesses like Floating World Comics and Star Tropics Pinball Museum. A design commission hearing is scheduled for February 5 to allow public testimony on the redevelopment plans.

Portland has found approximately $106 million in unspent Housing Bureau funds—far exceeding the $21 million initially reported in November—which City Administrator Raymond Lee attributed to the old government structure where bureaus accumulated program funding without reporting to city budget leaders. Despite optimism from Mayor Keith Wilson and other officials, the funds cannot simply cover the city’s $67 million budget shortfall because each source has specific designated purposes. Lee said the issue appears unique to the Housing Bureau but pledged to closely analyze funds across all bureaus going forward.

The new owners of Portland’s Lloyd Center, Urban Renaissance Group and KKR Real Estate, unveiled plans to demolish the historic mall and its iconic ice rink to build a mixed-use development featuring park space, walking paths, housing, and businesses. At a public hearing Thursday before Portland’s Design Commission, dozens of community members submitted comments opposing the demolition, defending the importance of the mall and year-round ice rink to those who visit and work there daily.

Developers Urban Renaissance Group and KKR have submitted a master plan to Portland’s Design Commission to demolish Lloyd Center mall and replace it with mixed-use housing, retail, and park spaces, notably excluding the iconic ice rink that has stood since 1960. Dozens of community members testified against the demolition, citing the mall’s role as a multicultural gathering space and criticizing the exclusion of communities of color from the planning process. The Design Commission is accepting public comments through at least February 13 before voting on the plan.

Bandon has imposed a 120-day moratorium on new vacation rental applications to study their impact on local housing availability, as the coastal city faces a shortage of middle-market housing for professionals like doctors and teachers. A 2023 housing needs study projects Bandon will need over 500 new housing units in the next 20 years to serve its roughly 2,000 existing homes. The moratorium, which can be extended up to six months, allows city staff to evaluate whether current vacation rental policies align with projected housing needs, following similar measures adopted by other Oregon coastal communities.

City Administrator Raymond C. Lee III disclosed on February 6, 2026, that Portland’s Housing Bureau has accumulated $106 million in unspent funds—far exceeding the $21 million initially believed available and the roughly $40 million later identified by City Councilor Loretta Smith. Lee’s detailed memo outlined where the “previously unbudgeted housing funds” were found and how they may be legally spent, attributing the accumulation to Portland’s “ongoing shift” to holistic financial management under its new government structure. City councilors have been demanding answers about how the Housing Bureau stockpiled such significant revenue while the city faces an ongoing housing crisis.

A program in Oregon gave homeless youth $1,000 per month for two years. Most participants were able to find housing and improve their living situations by the end of the program.

Oregon’s Direct Cash Transfer Plus program gave 120 homeless youth ages 18-24 $1,000 monthly for two years, and 94% secured housing by the program’s end in January 2025. The program, operating in Multnomah, Clackamas, and Deschutes counties, paired cash assistance with case management and a one-time $3,000 enrichment fund. Oregon became the second state after New York City to implement such a program, and a second cohort began receiving payments in September with expanded coverage to Jackson County.

Sen. Dick Anderson (R-Lincoln City) is introducing Senate Bill 1566 to reform Oregon’s prevailing wage laws for housing projects, including clarifying affordability exemptions, allowing up to 50% commercial ground-floor space, raising height exemptions from four to seven stories, and exempting renovations of previously used buildings. Anderson says current interpretations by the Oregon Bureau of Labor and Industries have inflated costs and stalled development, undermining over $1 billion in state investment and Governor Tina Kotek’s housing priorities.

U.S. Sen. Jeff Merkley proposed legislation in October 2024 to ban hedge fund ownership of single-family homes and force large investors to sell to first-time homebuyers or face tax penalties, a stance that received unexpected support from President Donald Trump in January 2025. Though institutional investors account for less than 5% of home purchases, their ability to pay well above typical prices is seen as driving up housing costs. Nevada’s legislature recently considered similar restrictions through SB 10, which narrowly failed, and Oregon lawmakers could take up comparable measures as early as 2025.

U.S. Rep. Janelle Bynum launched her “K-30” agenda on January 26, 2026, a 16-bill package targeting affordability challenges for young Oregonians in education, housing, and jobs. Key proposals include a $1.5 billion developer grant program, $200 million for residential construction training, rural student loan relief, federal tax incentives for mass timber, and subsidized child care for semiconductor workers. While at least seven bills have bipartisan support, many rely on federal agencies the Trump administration is actively seeking to eliminate.

Cities across the U.S. are increasingly adopting rental registries—from basic ownership tracking to mandatory licensing with inspections—to monitor rent trends, identify property owners, and enforce habitability standards, with programs now in Denver, Cedar Rapids, Oakland, and other municipalities. Advocates like Allison Pretto of Oakland’s Rent Adjustment Program cite benefits in understanding “rent increase trends, tenant turnover, geographic patterns,” while landlord groups such as the American Apartment Owners Association oppose registries as added costs that discourage investment and raise rents. CityHealth reported in 2023 that 17 of the nation’s 75 largest cities have registries with regular inspection requirements, though no centralized national database exists for comprehensive tracking.

In this interview, Mark McMullen, VP of policy and research at the Common Sense Institute of Oregon and former longtime state chief economist, discusses the major barriers preventing Oregon from reaching Governor Tina Kotsek’s goal of building over 30,000 housing units annually. McMullen identifies several key obstacles: complex zoning laws and slow permitting processes (especially in major metro areas), high systems development charges that burden developers upfront, restrictive post-financial-crisis lending standards that make land development loans expensive and hard to obtain, and elevated construction costs paired with high interest rates that make projects difficult to pencil out. He notes that while the 30,000-unit target may need to be revised downward due to Oregon’s stalled population growth and slowing in-migration—driven largely by housing affordability problems—a significant supply gap still exists. McMullen recommends that policymakers focus on removing regulatory barriers, expanding the construction workforce, and streamlining approval processes now so that development can ramp up quickly when market conditions improve. He also highlights that Oregon’s economy is shifting from one driven by population growth to one increasingly reliant on wage growth, capital investment, and entrepreneurship, and that housing affordability remains critical to attracting new residents and retaining younger generations.

Oregon Sen. Jeff Golden has introduced a bill requiring home insurers to factor in wildfire prevention efforts—such as fire-resistant improvements and defensible landscaping—when setting premiums, following a Colorado model as insurance costs have risen over 27% since 2020. Insurers using catastrophic modeling would need to show their formulas account for these homeowner investments, with rate-setting information filed confidentially with the Oregon Department of Consumer and Business Services. Industry representatives from the Northwest Insurance Council expressed cautious support but said the bill needs refinement on the scope of discounts and which prevention actions would qualify.