City Program Providing $15 Million for Apartment Purchases Attracts Four Bidders

That was fast.

Two weeks after soliciting bids from developers who want city money to buy apartment buildings instead of building them, the Portland Housing Bureau has four bids, totaling more than $15 million, the amount available for the novel program.

Unless one of the bids is found to be deficient, no others will be considered, according to novel rules aimed at speeding purchases by evaluating bids on a rolling basis. Usually, bidders are given a deadline and are eligible if they meet it.

The Housing Bureau’s aim with the rolling bids was speed. The program is designed to secure affordable housing by buying bargain-priced buildings that may go fast.

One broker learned that the program was likely tapped after inquiring about a bid.

“Thank you for reaching out and expressing interest in PHB’s Rapid Acquisition RFP,” Housing Portfolio Finance Coordinator Kara Hamilton said in an emailed response to the broker. “To date we’ve received four proposals with requests that exceed the amount of funds available, so any additional applications will only be reviewed if earlier proposals are not selected. So, while you are still welcome to submit through Oct. 7, there is a good chance that the proposal will not be reviewed.”

Housing Bureau spokesman Gabriel Mathews confirmed that the bureau had four bids. The bureau’s “Rapid Acquisition RFP” made the rules clear when it was announced.

“Once staff receive three proposals, or proposals totaling twice the amount of funding available (whichever comes first), any subsequent proposals will be accepted but not actively reviewed, unless the initial proposals are determined to be ineligible or additional funds become available,” the request for proposal said.

The Portland Housing Bureau wouldn’t own the buildings outright. Rather, it would offer developers up to $100,000 per unit toward the purchase. At that level, the bureau’s cash would subsidize the purchase of 150 units. To be eligible targets, buildings must have at least 40 units. Sellers must be able to close between Jan. 1 and June 30, 2025.