2015 Low-Income Discount Report
Expanding City Utility
Discounts in Portland
September, 2015
2015Low‐IncomeDiscountReportExpandingCityUtilityDiscountsinPortland
Contents
ExecutiveSummary.........................................................................................................................5 Background.........................................................................................................................................6 TheWorkGroup................................................................................................................................8 Solutions...............................................................................................................................................9 Challenges.........................................................................................................................................11 Conclusion........................................................................................................................................14
Appendices:
A.WaterSewerBillReliefProgramReport‐1994
B.FinancialAssistanceProgramsandLifelineRatesReport‐1997
C.ServicestoLowIncomeCustomers‐2015(PortlandWaterBureau)
D.ExaminationoftheBillDiscountPass‐ThroughModel‐2015
(PortlandWaterBureau)
E.LowIncomeUtilityAssistance:History‐2015
(PortlandWaterBureau)
F.OregonAffordableHousingTaxCredit‐RentReductionPassThrough
G.SummaryofAffordableHousingData‐2015
(PortlandWaterBureau)
H.FederalRegister:40CFR352140‐UserChargeSystem
I.BillDiscountOregonianArticles
PortlandWaterBureau
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2015Low‐IncomeDiscountReportExpandingCityUtilityDiscountsinPortland
Executive Summary
In1995,Portlandbecameoneofthefirstbigcitiesinthenationtoofferlow‐
incomeutilitydiscounts,withagoalofreaching10,000households.1About
8,000residentsnowreceiveutilitydiscountsfromthePortlandWaterBureau
andtheBureauofEnvironmentalServices.Cityofficialshavenotyetfounda
practicalwaytoextendthosereductionstomorethan40,000otherlow‐income
Portlanderswhorentapartments.TheCity,includinga1997advisorygroup,2
hasexploredwaystoextenddiscountstorenters,butwithoutsuccess.
InJanuaryofthisyear,CityCommissionerNickFish,Commissioner‐in‐Chargeof
theBureauofEnvironmentalServicesandtheWaterBureau,appointedawork
grouptofindnewwaystogivelow‐incomerentersdiscountsandtoensureall
eligibleresidentsareawareofthebenefit.Afterfivemeetings,thegroup
producedsomeanswers:
 TheCitycouldgiveeligiblerentersadiscountiftheyreceivedbillsdirectly,
butthatwouldrequireawatermeterforeachoftheirapartments.Multi‐
familybuildingstypicallyhaveasinglewatermeter,producingacollective
billforalltenants,whothenpayfullsewerandwatercostsindirectly
throughtheirrent.Withoutindividualmeters,theCitycannotgivethem
individualbillstodiscount.
 TheCitycouldaskhousingagenciesthatmanageregulatedbuildingstopass
thediscountontotheirtenants.Thispass‐throughoption,ifsuccessful,could
reachatleast13,000renterswholiveinsubsidizedhousing.
 Reachingmorethan30,000otherlow‐incomerenterswhopayfullmarket
pricefortheirapartmentsisverydifficultbecause,unlikeregulatedhousing,
privatelandlordsdonotverifyincomeandthereisnopracticalwayto
identifythem.Intheinterestofequity,theworkgrouprecommendstheCity
digdeeperwithmoreanalysisforasolution.
 TheCitycouldmakemorelow‐incomeresidentsofsingle‐familyhomes
awareofthesewerandwaterdiscountbyforgingpartnershipswithlow‐
incomeserviceproviders.Earlierthisyear,theWaterBureauformeda
partnershipwithHomeForward,ahousingagencyservinggovernmentsin
MultnomahCounty,andhasalreadyreachedoutto300familiesthatqualify
forthediscount.
IftheCityextendsdiscountstothousandsofadditionalresidents,itmustthen
makesomedifficultpolicydecisionsabouthowtopayforthem.ShouldtheCity,
1AppendixA:Water‐SewerBillReliefProgramforPortlandLow‐IncomeHouseholds‐1994
2AppendixB:FinancialAssistanceProgramsandLifelineRates‐1997
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2015Low‐IncomeDiscountReportExpandingCityUtilityDiscountsinPortland
forexample,lowerdiscounts,tapitsgeneralfund,orraiseratesforall
customerstosubsidizethediscounts?
Work Group Members
CommissionerFishappointedninecommunitymemberstotheworkgroup.
Theyrepresentarangeofhousing,advocacyandsocialjusticeorganizationsthat
supportlow‐incomePortlanders.JaniceThompsonoftheCitizens’UtilityBoard
ofOregoncouldnotattendallmeetingsandforthisreasonwasnotonthework
group.Shewasanobserveratseveralmeetings.
Community Members
JoAnnHerrigal
EldersinAction
SeanHubert
CentralCityConcern
DeborahImse
Multi‐FamilyNorthwest
AnnelieseKoehler
OregonFoodBank
TomLewis
EastPortlandNeighbors
MaryLi
MultnomahCountyDepartmentofHumanServices
MollyRogers
HomeForward
JillSmith
HomeForward
SteveWeiss
Communitymember/recipientofthebilldiscount
City Staff
BradBlake
PortlandWaterBureau,Low‐IncomeDiscountProgramManager
KristynCastro
PortlandWaterBureau,AdministrativeSupport
VickiGrudzinski
BureauofEnvironmentalServices
KathyKoch
PortlandWaterBureau,CustomerServiceDirector
SamMurray
BureauofEnvironmentalServices
MarciRees
PortlandWaterBureau,CustomerServiceSeniorManagement
Analyst
SarahSantner
PortlandWaterBureau,WaterConservationProgramCoordinator
SoniaSchmanski
OfficeofCityCommissionerNickFish
DavidShaff
PortlandWaterBureau,WaterUtilityDirector
RossTurkus
WorkGroupFacilitator
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2015Low‐IncomeDiscountReportExpandingCityUtilityDiscountsinPortland
Background
PortlandfirstlauncheditsplantodiscountCityutilitybillsforitslow‐income
residentsin1995.Sincethenithassearchedforwaystoextendthesebenefitsto
morepeople.Inadditiontodiscountingbills,theCity’sLow‐IncomeUtility
AssistanceProgramoffersone‐timecrisisvouchersforemergenciesandfree
repairofleakytoilets,faucets,plumbing,andundergroundleaks.3
However,somelow‐incomePortlandersarenotawareoftheutilitydiscount,
andthenearlyalllow‐incomePortlanderswhorentapartmentsdonotreceive
thediscount.Councilsetagoalofserving10,000householdswhenitestablished
theprogram,butthatnumberhasnotyetbeenreached.
Crisisvouchersandfreeplumbingrepairalsoaregivenonlytolow‐income
residentsinsingle‐familyhomesandnottothoserentingapartments.Low‐
incomeresidentswhorentapartmentscannotreceivediscountsandcrisis
vouchersbecausetheydon’tgetindividualwaterbills.TheCitybasesutility
chargesonwatermeterreadings,andapartmentcomplexestypicallyhaveonly
onemeterregisteringwaterusedcollectivelybythetenants.Landlordsthen
dividethecostsamongtheresidents.Ultimately,residentsofmulti‐familyunits
indirectlypaythefullcostoftheirwaterandsewerwithoutanydiscounts,even
thoughtheymaybeeligibleiftheyhadameter.
TheLow‐IncomeUtilityAssistanceProgramdetermineseligibilityforresidents
inhousesthatdohavewatermetersbycontractingwithMultnomahCountyto
verifyapplicants’income.TheCounty,inturn,partnerswithninecommunity
organizations,includingSelfEnhancementInc.CommunityServices,theNative
AmericanYouthandFamilyCenter,andHumanSolutions.Householdmembers
mustshowidentification,verifytheirresidence,andprovideproofofincome
throughpaystubsorbyfillingoutadeclarationofincome.
Currentincomeguidelinesarebasedon60percentofthestatewidemedian
familyincome(MFI)–about$28,000forafamilyoftwoor$41,000forafamily
offour.4Customerswhoqualifyreceiveadiscountequaltoabouthalfthetotal
billofatypicaluser.Thisamountstoaquarterlydiscountof$130,or$520per
year.
Customersareaskedtoreapplyeverytwoyearsinordertomakesuretheystill
qualify.TheCitysendsarenewalpackettwomonthsbeforethetwo‐yeartermis
up,andcustomerscanreapplythroughthemaildirectlywiththeCityorthrough
apartneragency.
3AppendixC:ServicestoLow‐IncomeCustomers‐2015
4TheCity’sutilitiesusethesameMFIstandardasthefederalLow‐IncomeEnergyAssistancePlan
(LIEAP)andOregonEnergyAssistancePlan(OEAP).TheCommunityCentersthatprovideincome
verificationfortheCity’sdiscountprogramalsoenrollLIEAPandOEAPparticipants.
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The Work Group
InJanuaryofthisyear,CommissionerFishappointedaworkgrouptoaddress
thefollowingquestions:
1. HowcantheWaterBureauensurethatallcurrentlyeligiblecustomersare
awareofthediscountprogram?
2. Canthediscountprogrambeexpandedtoincludemulti‐familybuildings?
Inaddressingthequestions,theworkgroupreviewedtheCity’sdiscount
programhistory,lookedatutilitydiscountprogramsinothercities,housing
demographicdata,regulatoryconstraints,obstaclestoprogramenrollment,
criteriaforasuccessfuldiscountprograms,andwaystoincreaseprogram
participationandextendutilitydiscounts.
Theworkgroupagreedwith“essentialanddesirable”programcriteria5adopted
byanearlierstudygroupthatreviewedthediscountprogramin1997.6That
groupconcludedthatadiscountprogramshouldgenerateminimalrateimpacts,
beacceptedbythepublicanddistributeresourcesfairlyandequitably.Itshould
alsobeabletoadapttomarketchanges,havehighenoughparticipationratesto
justifythecosts,beeasytoadministerandbeabletomeasureitssuccess.
Theworkgroupfoundthatutilitybilldiscountprogramsarenotuncommonin
theUnitedStates.However,ofthenation’s50largestcities,32donotofferabill
discountatall.
Utilitiesthroughoutthecountryfinditachallengetoextendalow‐incomebill
discounttohouseholdsthatdonotreceiveabill,suchasthoseinmulti‐family
buildingsortrailerparkswhereunitsshareasinglemeter.7Thisisthechallenge
CommissionerFishaskedtheworkgrouptoanalyzeinthehopeoffindinga
potentialsolution.
Othercitieshaveexploredvariousoptionstoensurethatmorelow‐income
householdsreceiveautilitydiscount,includingthefollowing:
 Offeringdiscountsthroughthemunicipalelectricbill,whichismetered
separatelyforeachunit,orwheretheelectric,sewer,andwaterbillsare
combined.
 Placingtheburdenofmanagingadiscountprogramonthelandlord.The
landlordisrequiredtocontractwithathird‐partybillertochargeforutilities
andoverseediscountsforqualifiedresidentsinmulti‐familybuildings.
Leasesandcopiesofbillsarerequiredtoshowthattenantspayfortheutility
5AppendixD:ExaminationoftheBillDiscountPass‐ThroughModel‐2015
6AppendixB:FinancialAssistanceProgramsandLifelineRates‐1997
7AppendixE:Low‐IncomeUtilityAssistanceHistory‐2015
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2015Low‐IncomeDiscountReportExpandingCityUtilityDiscountsinPortland
apartfromtheirrent.Thelandlordretainsdocumentationtoprovetothe
utilitythattheyhavebilledanddiscountedonaregularbasistoreceive
funds.
Solutions
Initsresearchandanalysis,theworkgroupfocusedonmeetingthetwo
objectivesthatgrewoutofthequestionsCommissionerFishaskedittoexplore.
TheworkgrouplookedatwaystheCitycouldensurealleligibleresidentsare
awareofutilitydiscountsandconcludeditcouldmeetthisobjectivebycreating
morepartnershipslikethatbetweentheCityandHomeForward.Meetingthe
secondobjectiveofextendingthediscountprogramtolow‐incomeresidents
wholiveinapartmentbuildingswithasinglewatermeterwouldbemore
complicated,butmaybepossible,thegroupconcluded.
ObjectiveOne:Ensureeveryonewhoiscurrentlyeligibleisawareofthe
discount.
OnFebruary4,2015,theCitysignedanintergovernmentalagreementwith
HomeForward,whichmanagesthevoucherprogramforlow‐incomeresidents
withgovernmentsubsidizedSection8housing.8HomeForwardagreedto
ensurethatSection8residentsinsingle‐familyhomeswereofferedaccesstothe
City’sutilitydiscountprogram.
Sincethen,300eligiblecustomeraccountshavebeenidentifiedandofferedthe
opportunitytoparticipate.Sofar,84customershavesignedupfortheprogram,
and37haverenewedtheirenrollment.Further,withtheirpermission,future
Section8voucherholderscanbeautomaticallyenrolledintheCity’sdiscount
program.
Theworkgroupbelievesthismodelcouldbeexpandedtoincludeother
programsthatarebasedonthesameincomecriteria.Applicationsforlow‐
incomeserviceslikeaffordablehousingcouldtriggeranautomaticinvitationto
signupfortheCity’sutilitydiscount.
Anautomaticinvitationlikethiscould,forexample,beextendedtoabout30,000
MultnomahCountyresidentswhoqualifyforMedicaidbasedonage,disability,
andincome.Italsocouldbeofferedtoupto17,000income‐eligiblehouseholds
intheCountywhoreceiveenergybillassistancethroughtheLow‐Income
EnergyAssistanceProgram(LIEAP).Apercentageofthetotalhouseholds
referencedabovecouldbeaddedtotheprogram,assomeduplicationis
8ThefederalSection8programallowsprivatelandlordstorentapartmentsandhomesatfairmarket
ratestoqualifiedlow‐incometenants.Participatinglow‐incometenantsreceivearentalsubsidy
administeredbyHomeForward.Section8isfederallyfundedbytheU.S.DepartmentofHousingand
UrbanDevelopment.
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2015Low‐IncomeDiscountReportExpandingCityUtilityDiscountsinPortland
expectedamongtheMedicaidandLIEAPeligiblehouseholds,andsomealready
receivethediscount.Similarly,someofthehouseholdsresideinmulti‐family
housingwithoutaccesstothediscount.
ObjectiveTwo:Expandthediscountprogramtolow‐incomeresidentsof
multi‐familybuildingswithouttheirownmeter.
Portlandhasmorethan80,000multi‐familyrentalunits.Abouthalfofthose
unitsareoccupiedbylow‐incomehouseholdsthatmakelessthan50percentof
thestatemedianfamilyincome,andthusqualifyfortheCity’sutilitydiscount
program.Ofthoseunitsoccupiedbylow‐incomefamilies,about30,000are
rentedatmarketrates,andatleast13,000morearesubsidized,orregulated.9
ThePortlandHousingBureaucurrentlyhas12,900regulatedmulti‐familyunits
initsportfolio.
Asafirststep,theworkgroupfocusedonfindingawaytoextendthediscountto
rentersinregulatedmulti‐familyhousing.Thiswouldincludegovernment
subsidizedSection8housing,unitsoperatedorownedbyHomeForward,and
apartmentsprovidedbynonprofitorganizationsthatrentonlytolow‐income
residents.Rentersmustqualifyforregulatedhousingbymeetingcertainincome
criteria.TheCitycouldadjustitsdiscountprogramtousethesameincome
thresholdthatregulatedhousingusessothattenantswouldautomaticallymeet
thediscountincomecriteria.
TheCity’sutilitiescouldofferadiscounttorentersinregulatedapartmentsby
askingthemanaginghousingagencytopassaCitydiscountontotenantsby
reducingrent,thusensuringtheutilitydiscountdirectlybenefitstherenter.
Theseagenciesalreadyhaveregulatoryoversightandeligibilityrequirements
thatwouldenablethemtohandlethisservice.Theyalsohaveproceduresfor
passingthroughfederallow‐incomeandaffordablehousingtaxcreditsto
tenantsbydiscountingtheirrent.
Asacomparison,theworkgroupexploredthepass‐throughapproachnowused
byregulatedhousingagenciesthatapplyfederalandstateLow‐IncomeHousing
TaxCredits(LIHTC).10
Theseagencieswillpassastateorfederaldiscountalongtotheirtenantsby
givinghouseholdsadollarfordollardiscountonrent.Theworkgroupsuggests
thissamemodelmaybeusedtooffsetutilitycostsforlow‐incomerenters.The
Citycouldgiverentersinregulatedhousingthesameflat‐ratediscountorit
couldtrytocalculateadiscountforeachhouseholdasapercentageofthewater
9Datacompiledfrom2007‐11ACS‐CHAS,OregonHousingandCommunityServices,and2011Metro
RegionalInventory.(SeeAppendixGSummaryofMulti‐FamilyAffordableHousingData‐2015).
10AppendixF:OregonAffordableHousingTaxCreditProgram–RentReductionPassThrough
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ituses.Citystaffcalculatedthataflat‐ratediscountwouldaverage$43.35a
monthandcouldbeextendedtoatleast13,000morehouseholds.
Theworkgrouppreferredafixed‐ratediscountoverapercentage‐basedmodel.
Basingthediscountonapercentageofeachbillwouldbemoredifficultto
calculateandmanage,asthediscountwouldfluctuatealongwithquarterly
usage.
Intheflat‐rateapproach,allhouseholdswouldreceivethesamediscount
regardlessofsize.Theagencymanagingthebuildingmightreceivethediscount
onitstotalutilitybillandthendividethatamongitseligibletenants.Agencies
overseeingregulatedhousingalreadyidentifytheincomesoftenantswho
qualifyforaffordablehousing.TheCitycoulduselistsofthosetenantsto
discoverwhowouldbeeligiblefortheflat‐ratediscount.
TheCitymustconductadditionalanalysistodeterminewhetherPortlandcould
carryoutapass‐throughdiscountwithreasonableadministrativecosts.The
programrequirementsandimpactsofbothfixed‐rateandpercentage‐based
discountpass‐throughmodelsaredescribedinAppendixD:Examinationofthe
BillDiscountPass‐ThroughModel.11
Thissolutiondoesnotreachthemajorityoflow‐incomeresidentswhodonot
liveinPortland’sregulatedhousingunits.Theworkgroupraisedthequestionof
equity,aswellasthepotentialcomplexityofadministratingaprogramthat
includesmarketraterentalunitswherenostructurecurrentlyexiststohold
landlordsaccountableforpassingthroughthediscounttotenants.
Acknowledgingthechallenges,theworkgroupsuggestedtheCitykeep
searchingforwaystoallowlow‐incomerentersinmarket‐rateapartmentsto
alsohaveaccesstothediscountprogram.
Asuccessfuldiscountpass‐throughprogramfortenantsofregulatedhousing
wouldstillbeadramaticstepforward.Itcouldmeanthatupto13,000more
customerswouldreceiveabreakontheirCityutilitybill.
Challenges
Anydiscountprogramforresidentsinmulti‐familybuildingswouldrequirea
significantadministrativecommitmentofCitystafftime.TheCitymustdesigna
sophisticatedsystemthatcanadjustforvariationsinbuildingmanagement,
tenantincomelevels,regulatedhousingincomecriteriaandwateruse.Federal
regulationsmayalsocomplicatethiseffort.
11AppendixDincludesaPWBCustomerServicereviewofalistofregulatedfacilitiesprovidedbyHome
Forwardthathighlightstheneedforadditionalfeasibilityreviewwitharigorousanalysisof
administrativecosts.
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2015Low‐IncomeDiscountReportExpandingCityUtilityDiscountsinPortland
ChallengeOne:Calculatingdiscountrateisdifficultbecausebuildingtypes
andtenantsvary.
Multi‐familybuildingsvaryinhowtheymanagestormwater,irrigatecommon
groundsandlandscaping,anddistributethosecostsamongtheirtenants.
Vacancyrates,whichaffectcalculationsforwaterusepertenant,alsovary
amongmulti‐familybuildingsandfrommonthtomonth.Eachoftheseitems
mustbeconsideredinthecalculationofadiscountrate.
Theprofilesoftenantsandapartmentsvaryamongbuildings,too.Families
eligiblefordiscountsliveinbothregulatedhousingandinmarket‐rateunits,
sometimesmixedinthesamebuilding.Individualapartmentsinonebuilding
mayvaryinsizeandnumberofoccupants,fromasinglepersonresidingina
studiotoalargefamilywithmultiplerooms.Somemulti‐familybuildings
includecommercialtenants,suchasarestaurant,whichusemorewaterthan
householdsandarenoteligibleforthisincome‐baseddiscount.
TheCitywouldalsohavetomakeadjustmentstomatchitswaterandsewer
discountcriteriawiththoseofhousingagenciesthatoverseeregulatedhousing.
WhiletheCityoffersdiscountstohouseholdswithincomesatorbelow60percent
ofthestatemedian,regulatedhousingagenciesusearangeofpercentagesupto80
percentofalocalaveragemedianincome,suchasthatofMultnomahCounty.
Basedonthefactorsdescribedabove,theworkgroupfavorsaflat‐ratediscount
asopposedtoadiscountbasedonapercentageofeachbill.Aflatratecanbe
appliedtoeachmulti‐familyunitthatqualifiesbasedonabuilding’srentroll.If
theCitypressedforwardwiththeflat‐ratepass‐throughdiscountthatthework
groupfavors,itwouldhavetoweighallofthesevariablesincalculatingaflat
ratethatwouldapplytoeveryhousehold.
Inordertoestablishtheflatrate,theCitywouldalsohavetomakeanew
calculationforaveragewateruseinapartments.Thecurrentlow‐incomediscount
programforsinglefamilyhomesisaflatratediscountbasedontheaveragelevelof
wateruseforasingle‐familyhome.Averagewateruseinanapartmentislikely
lowerthantheaveragewateruseinahousesoitwouldnotberealistictousethe
flatrateappliedtohouses.Tosetaflat‐ratediscountforapartments,theCitywould
needtocalculatetheaverageuseforanapartmentinamulti‐familybuilding.
ChallengeTwo:Obtainingfederalapprovalcouldprovedifficultandcostly.
Anexpansionofthediscountprogramcouldalsobeinconflictwithfederal
regulations.SincetheBureauofEnvironmentalServiceshasbeenarecipientof
EPAfunding,Portland’ssanitarysewerserviceissubjecttofederalguidelineson
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2015Low‐IncomeDiscountReportExpandingCityUtilityDiscountsinPortland
howitstructuresratediscounts.12
In2000,theCitysoughtEPAapprovalofadiscounttonon‐profithousing
providerstooff‐setaproposedrateincreaseforcustomersusinghighvolumes
ofwater.
Ultimately,therequestwasrejectedbecausetheproposeddiscountdidnot
includeapass‐throughmechanismthatwoulddirectlybenefitthetenant.Any
changetothecurrentdiscountprogramwouldrequireEPAapproval.Obtaining
thisapprovalneedstobefactoredintoevaluationofadministrativecosts.
ChallengeThree:Payingforthediscountexpansionhasnotbeenstudied.
TheworkgroupalsolookedatwaystheCitymightpayforanexpansionofthe
discountprogram.Currently,thecostofthediscountprogramissharedbyboth
BESandtheWaterBureau,andisbudgetedat$5millioninforegonerevenuefor
10,000customers.Toexpandthediscountprogramtoinclude13,000additional
customerswouldincreasetheforegonerevenuebyapproximately$7.5million
andincreasethetotalprogrambudgetto$12.5million.Alternatively,theCity
couldspreaditsexistingdiscountmoneyoveralargerpoolofhouseholdsby
reducingthediscount.Itcouldalsoraiseratesonallresidentstosubsidizemore
discounts.
Anotheroptionwouldbetotryapracticeusedinothercities–offering
customersachancetomakeelectivedonationsontheirutilitybillstospecific
low‐incomecharitiesorsocialserviceagencies.Thoseagenciescouldinturn
provideutilitydiscountstolow‐incomerenters.PortlandGeneralElectrichas
donethistosomedegreethroughanaffiliationwithHEATOregon.13Inthepast
PGEhasprovidedopportunitiestoitscustomerstosendcontributionstoHEAT
Oregonbyincludinggivingenvelopesintheircustomer’sbills.HEATOregonin
turnfundsemergencyenergyassistancethroughsocialserviceagenciesforPGE
andotherenergyutilitycustomers.PGEcustomersalsomakemandatory
contributionstoOEAP(OregonEnergyAssistanceProgram).OEAPisayear‐
roundassistanceprogramfundedbyastate‐mandatedchargeaddedtoallPGE
customers’bills.
Additionally,theworkgroupexploredsettingasidegeneralfunddollarsto
subsidizeanexpandedprogram.Citybureauswoulddonateasetamountof
12AppendixH:CodeofFederalRegulations40C.F.R/35.2140
13For25years,HEATOregon,aprivate,501(c)(3)nonprofitorganization,hasbeengiftingwarmthand
powertocustomersstrugglingtopaytheirwinterutilitybills.It’sfundedbydonationsfrom
partnershipswithPGEandotherutilitycompanies,aswellasfromprivateindividuals.One‐timegrants
aredistributedthroughcommunitynonprofitorganizations.
(https://www.portlandgeneral.com/residential/your_account/billing_payment/bill_payment_assistance
.aspx)s
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2015Low‐IncomeDiscountReportExpandingCityUtilityDiscountsinPortland
moneyeachyeartoathird‐partyagencythatwouldadministerthefunding.The
Citywouldneedrulestodeterminehowthediscountwouldbeadministered
andneedassurancethatthediscountgoestowardrentonly,sincesewer,storm
water,andwatercostsaretypicallyincludedinrent.
Conclusion
Portlandleadershavewrestledfor20yearswithfindingwaystoextendutility
discountstomorelow‐incomeresidents,buthaveyettoreachtheoriginalgoal
of10,000households.PreviousCityCommissionersanda1997advisorygroup
searchedforsolutionswithoutsuccess.
ThisworkgrouphasidentifiedpromisingpathsthatcouldallowtheCitytomore
thandoublethe8,000residentsreceivingdiscounts.Buthurdlesremaininthe
formofresolvingcomplicationsandrelatedadministrativecostscreatedby
federalrulesandvariationsinapartments,tenantfamilysize,incomecriteria
andwateruse.
Thisyear,theCityreachedthroughitspartnershipwiththelocalhousing
authority,HomeForward,300low‐incomefamiliestomakethemawarethat
theyqualifyforthediscount.Ofthose300families,84havesignedupforthe
program,and37morehaverenewedtheirenrollment.
Workingwithadditionalcommunitypartners,theCitycanreachevenmorelow‐
incomehouseholdswhoseincomequalifiesforadiscount.TheCitycould,for
example,workwithprogramsservinglow‐incomepopulationssuchasthose
whoreceiveMedicaidorenergyassistance.
Thebiggerchallengeistoreachatleastsomeoftheeligibleresidentswhorent
apartmentsandlackindividualwatermeters.Withoutmeters,theCitycannot
givethemindividualbillstodiscount.Soitmustfindanotherway.Abouthalfof
Portland’smorethan80,000apartmentsareoccupiedbylow‐income
householdsthatwouldqualifyforthediscount.
TheworkgroupconcludedtheCitycouldpotentially,withmoreanalysis,findaway
togivediscountstoatleast13,000ofthosefamilieswholiveinregulated
(governmentsubsidized)housing.Cityutilitiescouldasktheagenciesthatmanage
affordablehousingprogramstopassadiscountontotheirtenants.Thiswouldbe
complicated,butfeasible,andadministrativecostmustbeconsidered.
Inadditiontoacknowledgingthesefeasibilityissues,theworkgroupalso
identifiedequityconcernsinthatthisapproachstillfailstoreachmorethan
30,000eligiblelow‐incomehouseholdswhorentapartmentsatmarketrates.In
reviewingpossibleexpansionpaths,theworkgrouprecommendstheCity
continuestostudyandaddressequityissues.
IftheCitydoessuccessfullyextenddiscountstothousandsofadditional
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2015Low‐IncomeDiscountReportExpandingCityUtilityDiscountsinPortland
residents,itmustalsofindawaytopayforthem;potentialfundingsources
includeraisingeveryone’sratestosubsidizethediscounts,tappingtheCity’s
generalfund,loweringdiscounts,oridentifyinganothersourceofrevenue.
Ultimately,thecurrentworkgrouphasidentifiednewwaystogivelow‐income
rentersdiscounts,specificallyrentersinregulatedhousing.Theworkgroupalso
reviewedthebarrierstofurtherexpansionanddiscussedoptionsforensuring
alleligibleresidentsareawareofthebenefit.Thechallengenowpassestothe
Citytodelvedeeperintotheissuesidentifiedandincreasethenumberoflow‐
incomePortlandresidentsreceivingadiscountontheirCityutilitybill.
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