Strategy in Action

In 2018, a coalition of community-based organizations in the Cully neighborhood, a diverse, low-income neighborhood in Northeast Portland, approached Prosper Portland, the economic and urban development agency for the city, to explore the idea of a community-centered tax increment financing (TIF) district. The proposal was passed unanimously by the city council in late 2022 and centers historically disadvantaged communities and community voices in the TIF design and decision-making process.

The TIF plan for the Cully neighborhood requires that 45% of TIF-funded investments be allocated to affordable housing. The remainder must be used to support neighborhood businesses, affordable commercial space, local job opportunities, and property acquisition. It can also be used to support development of commercial space for businesses and nonprofits that are owned, led by, and/or support residents who live within the district and are vulnerable to displacement.