Amid a Housing Shortage, Portland Has $106 Million in Housing Funds Sitting Dormant
Amid a housing shortage, Portland City Administrator Raymond C. Lee has disclosed that a surplus of $106 million allocated for new homes is lying dormant in several City Council accounts.
The Surplus is a Relic of a Previous Accounting System
This huge surplus could be “a relic” of Portland’s previous system of accounting, explains City Council President Jamie Dunphy. He was referring to Portland’s commission-run government until its switch to a mayor-council controlled government in 2025.
Before the changeover, the mayor and individual commissioners controlled the budgets of various bureaus that were not controlled by a central administrative branch.
In a memo to the city council on Friday, Lee states that there is $62.1 million in four different housing bureau accounts, $24.9 million in the Housing Investment Fund, and $20.7 million in the Rental Services Office.
Source: City of Portland memo / Portland Housing Bureau Unbudgeted Balances / February 6, 2026
Dailytidings.com
City Administrator Believes the Surplus is an Isolated Incident
To resolve the budget oversight, Lee suggests that city councilors institute an independent investigation. In his memo, Lee states that he does not believe funds are regularly under budgeted and that the $106 million surplus suggests an isolated incident.
However, as a safeguard, the City Administrator suggests that the city council implement an evaluation process of other city funds to ensure that the issue of under-budgeting is resolved.
Lee recommends that city funds be systematically reviewed to confirm that balances accurately reflect existing reserves and contingencies. He also suggests a series of rigorous cross-checks to confirm balances held in various city council funds.
The Surplus Coincides With Portland’s Growing Homelessness and Housing Shortage
The revelation coincides with Portland’s housing shortage and the growing problem of homelessness, which increased by 61% in the two years ending in 2025.
| Metric | Latest figure | Source |
|---|---|---|
| People experiencing homelessness | 12,034 across the tri county region on Jan 22, 2025 / 61% higher than 2023 | 2025 Tri County PITC Summary Report |
| Multnomah County count | 10,526 people on Jan 22, 2025 | 2025 Tri County PITC Summary Report |
| Shelter vs unsheltered | 4,525 in shelters (38%) / 2,419 unsheltered (20%) | 2025 Tri County PITC Summary Report |
| Shelter capacity change | 1,148 shelter beds added since 2023 | 2025 Tri County PITC Summary Report |
| Affordable homes delivered | 928 affordable homes opened in 2025 | Portland Housing Bureau update |
| Pipeline | 632 units broke ground in 2025 / 1,544 in the pipeline for 2026 to 2029 | Portland Housing Bureau update |
Homelessness is sparked by a chronic shortage of affordable housing, coupled with a 40% increase in rentals since 2021, leaving over 12,000 people sleeping in the open.
According to the Portland Housing Bureau, 928 affordable houses across 10 developments came online in 2025, while a further 632 affordable units broke ground last year, bringing 1,544 units in the pipeline for completion between 2026 and 2029.
This suggests that the real constraint may be the capacity to deliver, rather than a lack of housing dollars.