HUD Decision in San Francisco Raises Questions About Portland's Neighborhood-Preference Housing Plan

San Francisco, in an effort to combat the displacement of black residents, settled on a plan to award "neighborhood preference" in new affordable housing—a plan with some similarities to a strategy chosen by Portland officials.

But the San Francisco plan was ruled discriminatory last month by the federal government.

The plan, which would give preference to residents already living in the district of the new housing projects, was ruled a violation of fair housing rules because preferences "limit equal access to housing and perpetuate segregation," the U.S. Department of Housing and Urban Development said.

The decision is currently under review by HUD, but Portland has its own version of a neighborhood preference plan for affordable housing in North/Northeast neighborhoods.

Portland Housing Bureau director Kurt Creager draws a distinction between San Francisco's plan and Portland's, which is focused on families displaced by the city's seizure of property for an Emanuel Hospital project and the Coliseum but includes neighborhood ties as well.

"It was never predicated on race or ethnicity," says Creager. "It was predicated on city actions that displaced residents. I think they are quite different. We're confident that ours will withstand legal scrutiny."

There's another distinction, says Creager: Because San Francisco's project was entirely funded by HUD, the city had to undergo a pre-approval process for their lottery preferences. While HUD has jurisdiction over Portland's plan, Portland does not have to undergo the same review.

Willamette Week