Hey Portland,

Budget season finally ended in June. After a series of very long meetings, Council got through the amendments that councilors submitted to the Mayor’s proposed budget for FY 26-27 and voted on final passage. Most amendments didn’t pass and two councilors voted against passing the budget as a whole. But before we get to my thoughts on the entire process, what I think you need to know, and what comes next, I just want to say: Thank you.

I am proud that our community showed up in enormous numbers to testify, organize, email, and fight for the values they believe Portland should stand for. I am proud that people refused to quietly accept cuts to frontline workers, immigrant communities, climate justice investments, parks, civic participation programs, and alternative public safety systems without a fight.

That’s what gave us strength to keep fighting on the dais, even as some of us faced enormous pressure from institutional powerbrokers to accept the idea that austerity is inevitable while some systems remain politically untouchable.

We didn’t leave with all the wins we wanted. But I’m grateful that we were able to work together to secure some improvements through the budget process.

• We made sure to plan for future health care costs so our workers don’t see a loss in benefits (Avalos 10)
• We protected PCEF dollars from being rerouted to other City programs unrelated to already-approved climate goals (Pirtle-Guiney 12; I sponsored this amendment)
• We rallied and stopped the raid of police accountability dollars (Clark-Novick-Pirtle Guiney-Ryan-Smith 1).
• We partially restored services in Project Ceasefire, Portland Street Response, CHAT and Summer Free for All (Morillo 1).
• We saved Engine 22, a critical resource for communities in D2 and D4 (Kanal 2).
• We supported our Neighborhood Prosperity Networks with $197,000, which sustain beloved East Portland organizations like Division Midway Alliance (Dunphy 1).
• We provided $1 million for public bathrooms, free laundry, free showers, and other services for people experiencing homelessness (Green 3 and Green 6).
• We restored 14 positions in tree permitting and Urban Forestry to protect our urban tree canopy (Koyama Lane 2).

You can see a full list of the amendments that passed and how councilors voted here and here.

This was never going to be easy. As I’ve explained in previous newsletters and in my 2026 D1 Budget Survey Report, our City was facing a massive budget hole. Cuts were inevitable.

But austerity wasn’t.

Time and time again, we saw some councilors choose to take the convenient route rather than the path of innovation and progress. We saw councilors choose not to add accountability to our homeless shelter system and instead stick with the expensive status quo. We saw councilors dismiss calls from frontline workers to slow down and add more transparency to a layoff process that has felt confusing. And we saw councilors leave East Portland’s priorities – from parks positions to immigrant and refugee support – on the cutting room floor. I’m not going to lie: I’m very disappointed to be told that our community’s needs aren’t worth protecting in the budget. But that doesn’t mean the fight to save basic services is over.

Recaps of the Budget Meetings

• If you’re on Instagram, I posted highlights from Day 1, Day 2, and Day 3 of our 2026 Budgetpalooza.
• If you’re on Bluesky, you can read through my livethreads from Day 1, Day 2, Day 3.
• The Mercury also published live reports from Day 2 and Day 3, and OPB published a summary.
• Bluesky livethreads of the first reading of the budget are here and here.
• For a summary of the final vote and overall budget process, read OPB’s coverage here.

Here’s a TL;DR of this month’s newsletter:

Our new ordinance to restore frontline services and protect workers

Candace at Work:

• MIRL passed!
• Council Voted to Keep Portland Housed
• Holding Our Shelter System Accountable
• League of Oregon Cities Spring Conference in Pendleton
• Inner Eastside for All Passed!

Candace in Community:

• Hearing from you about Moda
• Celebrating Raymond Park’s new playground
• New District Office
• Touring Kindness Farm
• DDHS Immigration Town Hall

Candace at City Hall

• Housing and Permitting Committee
• City Life Committee
• Committee of the Whole

East Portland Stories and Happenings

• Multnomah County’s Preschool for All is still accepting applications for the 2026-2027 school year!
• If your kids are older, Portland Public Schools is also accepting applications for the PPS Early Learners PreK program.
• I talked with OPB about my concerns about efforts to privatize parks.
• I spoke with Street Roots on why sweeps don’t solve homelessness.
• I joined KATU to talk about the Moda renovations and my priorities in the negotiations.
• On Fridays and Saturdays from June 12 - August 22, you can take a free shuttle straight to Washington Park and Forest Park!
• Portland Parks and Recreation’s Summer Free for All is getting in full swing!
• On July 25, 11:30am - 1:30pm at Farragut Park, join families, local businesses, non-profits, and community leaders for a day of connection at the 3rd Annual Kitchen Killa & Friends Community Cookout!

I’m leading a new ordinance to restore frontline services and protect workers

As you might remember from a previous newsletter, I joined Councilors Green and Morillo to introduce the Services First budget amendment. It would have addressed some of the most damaging cuts included in the Mayor’s proposed budget - cuts to frontline services, parks, public safety support positions, immigrant services, and other programs Portlanders rely on every day. It also would have given us more time to consider a realignment (City organization restructure) process that many workers have said is flawed.

If you’ve been paying attention to this year’s budget process, what came next isn’t surprising either: Services First failed to pass on a 6-6 vote.

But just because the budget process is over doesn’t mean councilors don’t have a responsibility to protect frontline services or respond to real community concerns. I’m leading a new proposal with Councilors Green, Morillo, Kanal, and Koyama-Lane that restores a targeted package of high-impact services that Portlanders rely on every day including:

• 13 critical Parks maintenance and operations staff responsible for maintaining thousands of acres of natural areas, trails, community gardens, and facility infrastructure. 

• The Senior Center Project, preserving programming for older adults with disabilities through existing county funding. 

• Two 311 Customer Service Representatives, protecting residents' ability to access City services. 

• 12 Public Safety Support Specialists, Portland Police Bureau's unarmed civilian responders who handle property and vehicle crime reports. 

• Fully restoring 24/7 service for three Portland Fire & Rescue advance life support rescue vehicles, helping maintain emergency response capacity in East and Southeast Portland. 

• Additional positions identified by labor and prior Council analysis carrying considerable operational risk if eliminated across bureaus for water, transportation, and environmental services. 

• A delay in layoff date for layoff-impacted employees so they can retain health benefits longer and have more time to prepare a transition.

Budgets require difficult choices. But Portlanders deserve confidence that when jobs are cut, those decisions are based on evidence, and a clear understanding of what services will be lost. This proposal protects critical frontline functions while giving us the information we need to make smarter long-term decisions.

Candace Call to Action: Contact your councilors and tell them to support our ordinance to save frontline services and jobs! You can see the email contact information for council offices here.

One last note: You might have seen an alternative proposal that includes restoring some of the same positions as our ordinance. It uses funding from the Office of Community-based Police Accountability (OCPA) aka the same raid of voter-approved police accountability resources six of us on council already said was a dealbreaker.

The sponsors claim that they aren’t trying to "delay, defund, or interfere with" the OCPA. I’m choosing to listen to the actual members of the Community Board for Police Accountability, six of whom wrote to say that:

 “[The alternative ordinance] will set a dangerous precedent for undermining the new police accountability system regardless of where the removed funds are spent — but transferring them in part to the police bureau looks especially bad and will further deteriorate public trust on this issue.”

I’m choosing to listen to the 82% of Portland voters who said they want a strong police accountability system, with the budget and resources to match.

Candace at Work

MIRL Passed!

The Middle-Income Revolving Loan (MIRL) program addresses a fundamental problem in our City: working Portlanders don’t have enough housing options. They’re often not eligible for income-restricted affordable housing, but they don’t make enough to afford to buy a home.

Recently, council passed my ordinance that will create our City’s MIRL program so we can tap into interest-free state money and build housing with locked-in affordability for 10 years for middle-income Portlanders, like teachers, truck drivers, cooks, and retail employees. With housing costs continuing to rise, we can't afford to leave resources on the table. MIRL positions Portland to compete for millions in state funding and helps us move urgently toward creating the housing our city needs.

I’m excited to see the future homes that get built for working Portlanders because of MIRL, and I thank my colleagues and staff for all their work putting our City in the best possible position to make the most of this funding for middle-income housing.

Council Voted to Keep Portland Housed

ICYMI: Council passed our Keep Portland Housed package in the Spring Technical Adjustment Ordinance (TAO) on April 8! The proposal I led with Council President Dunphy, Councilor Green, and Councilor Morillo makes real progress toward building and preserving affordable housing and addressing housing insecurity:

• $9 million for rent assistance
• $8.8 million to stabilize affordable housing, reduce rents, and improve building security
• $1.9 million for eviction defense
• $800,000 for down payment assistance for tenants ready to purchase a home
• $17.5 million for a social housing revolving loan fund
• $200,000 for tenant rights and landlord education

In the months leading up to this moment, we heard from people who were struggling to stay in their homes, families falling behind on rent, seniors on fixed incomes, and neighbors who were one unexpected expense away from losing their housing. At the same time, we continued to see more people entering homelessness than we are able to house.

Then we learned that tens of millions of dollars — resources that were intended to support housing — were sitting unallocated or planned for uses down the road. That raised a fundamental question for Council: how do we use these resources in a way that actually meets the urgency of this moment?

The final passage of Keep Portland Housed was the joyful conclusion of a long, winding process. We had multiple conversations as a Council. We held a work session to surface priorities, heard from community partners, and worked collaboratively across offices and with Housing Bureau staff to shape a path forward. We worked through competing priorities for the same pots of funding.

Importantly: this was our community’s win. I am so grateful to every Portlander that stuck with us and pushed councilors to include as many resources as possible for the programs and policies that work to help those most at risk for homelessness.

Some of the emergency rent assistance is now available, but staff are still working through how to implement all the different parts of Keep Portland Housed. Please stay tuned for future updates!

Candace Call to Action: Call 211 or email help@211info.org to be referred for new emergency rent assistance. Eligibility requirements apply. Visit Multnomah County’s website to learn more.

Holding Our Shelter System Accountable

In May, I joined my colleague Councilor Kanal to call on City administration leadership to provide additional information about how shelter oversight systems are working at the City. This came in response to a recent investigation finding that, from July 2023 through December 2025, the ombudsman received a total of 85 complaints about Urban Alchemy staff – including allegations of sexual violence, drug dealing, drug use, theft, and retaliation. It is deeply inappropriate and unacceptable that we have communities that are already in a vulnerable position in our shelters who are alleging that they are experiencing sexual assault, harassment, theft, and drug dealing. And the allegations raise serious questions about the systems and processes intended to keep shelter guests safe.

That’s why I was disappointed that some of my colleagues chose not to support my amendment or Councilor Green’s budget amendment that would have held funding from Urban Alchemy until we have a better accounting of the oversight systems in place.

The responses from the administration and Urban Alchemy show some steps in the right direction, but Council has a role in examining how we better prevent similar situations. If we are paying a provider millions of dollars to work with vulnerable populations, then we have a duty to hold them accountable to that responsibility.

League of Oregon Cities Spring Conference in Pendleton

I joined the League of Oregon Cities Spring Conference in Pendleton to learn how communities across Oregon are addressing the same challenges we face in Portland — from housing and economic development to climate resilience and energy infrastructure. My biggest takeaway: Portland can’t operate in a bubble. Strong leadership means showing up, listening, and learning from others, especially in a time of economic and political uncertainty. I talked with folks about microgrids, enterprise zones, youth pathways into local government, disaster preparedness, and how to ensure investments reach frontline communities. Looking forward to bringing these ideas back to East Portland!

Inner Eastside for All Passed!

Housing justice is realized one step at a time. I am proud that City Council unanimously adopted the Inner Eastside for All resolution in April. My work with IE4A started when I joined Portland Neighbors Welcome (P:NW) as a founding board member. Now, with the leadership of community, I helped carry this vision across the finish line with a vote. Inner Eastside for All is about putting more housing in neighborhoods that have some of our City’s greatest amenities. When people can afford to live where they want to, that means less displacement and less gentrification in other parts of town like East Portland. It’s also about building a blueprint, so we can bring the lessons learned about upzoning to other neighborhoods.

Learn more about the Inner Eastside for All project here.

Candace in Community

Hearing from you about Moda

Thanks to all the Portlanders who took the time to meet with District 1 councilors at Lents and Parklane Parks to discuss their take on Moda. This is a complex issue, and I appreciate hearing directly from the neighbors I represent. One of the biggest frustrations I’ve heard from you is that this process has felt confusing. There’s not enough information out there about the negotiations – including basic information about what we’re being asked to fund in the renovations and what’s in the current lease agreement that runs through 2030. Councilors had a lot of the same questions for the administration at the first work session we’ve held on the Moda Center renovation. As we requested, City staff have uploaded the current Moda agreement here, for those who want to do some more digging on their own. Again, we’re still in the middle of negotiations and there is no done deal. I’m going to continue to push for the best possible return for Portlanders, and I hope you’ll continue to add your voice to the conversation because this is your money. One thing I’m looking for in any agreement for the Moda renovation? Private investment. And I do mean a capital investment in the RENOVATION itself. Buying the Blazers doesn’t count. And neither do ticket user fees, parking revenue, or rent. Our next work session on Moda is currently scheduled for Wednesday, July 22 at 2:00 p.m. – 5:00 p.m.

Celebrating Raymond Park’s new playground

It was a beautiful Friday afternoon to celebrate the accessible new playground at Raymond Park with our East Portland community! The playground was packed with kids and families playing on the new play-sets and swings, getting their faces painted, enjoying free hot dogs and ice cream, and connecting with City and community resources.

Seeing everyone out and about was a perfect example of how a park can act like the whole neighborhood’s backyard. It’s a top priority for me that we invest in keeping our parks safe, clean, and well maintained, so East Portlanders can fully benefit from these precious green spaces.

Shout out to Portland Parks and Recreation and the Portland Parks Foundation for partnering on the event and the new playground!

New District Office

The District 1 office is getting up and running! Council President Dunphy and I are excited to bring City Hall to the east side with our new office in Gateway, where we plan to host community events, constituent meetings, mutual aid, and more. Stay tuned for an open house party this summer!

Touring Kindness Farm

I had a great time visiting Kindness Farm in East Portland with Council President Dunphy and Councilor Koyama Lane! On 2.5 acres in Pleasant Valley, staff at the Farm are doing beautiful work connecting kids, immigrant and refugee families, and community organizations to land, food, and nature. From environmental education to community garden plots for families facing food insecurity, this is what community investment (including funding from PCEF and the Portland Children’s Levy) can look like. Huge thank you to Kindness Farm and the many community partners who are helping to build a healthier, more connected East Portland!

DDHS Immigration Town Hall

Thank you to David Douglas H.S. Latino Student Union for hosting an incredible community Town Hall on Immigration. I sat on a panel stacked with local leaders, including East County’s own Rep. Ricki Ruiz and Congresswoman Maxine Dexter! As a former educator, I was often told to invest in the youth because they are the leaders of tomorrow. I would disagree. They are the leaders of today. I was inspired by the safe space that was created, the information and accountability expected from electeds, and the commitment to culture, love, and joy. DDHS-LSU put the move in MOVEment!

Candace at City Hall

Housing and Permitting Committee

Since my last monthly newsletter, our new Housing and Permitting Committee has gotten up and running! As I told my colleagues, my goal as Chair is to make this a productive and collaborative space. I also want us to be thoughtful about how we pace our work. We have a responsibility to move important items, particularly land use and permitting decisions, without creating unnecessary delays, while still making space for discussion and good policy development.

Most importantly, I want to stay grounded in what we hear from Portlanders. This work doesn’t just happen in this room, it’s shaped by the experiences of people we represent across the city, and I intend to keep that connection front and center.

Here’s some of the policies that have been heard in the H&P Committee:

• Keep Portland Housed package (passed at the 4/8 full council meeting)
• True North affordable housing project emergency ordinance (passed at the 5/13 full council meeting)
• Portland Permitting & Development Fee Schedules amendment ordinance (passed at the 6/11 full council meeting, 11-1)
• Moderate-Income Revolving Loan Program ordinance (passed at the 6/18 full council meeting, 11 yes votes)

We’ve seen a lot of recent headlines and public conversations related to Home Forward. Those concerns are real, and accountability matters.

At our 5/6 H&P committee meeting, we had a great panel discussion on affordable housing that got into a lot of systemic issues and challenges that often go unnoticed in the media and the public. We focused on the state of our affordable housing system — specifically, the conditions providers, agencies, and partners are navigating right now, and what that means for the people who this system is intended to serve.

Panelists included:

• Michael Buonocore, representing Portland Housing Bureau
• Ian Davie, Home Forward
• Madison Moskowitz, REACH CDC
• Traci Manning, Housing Development Center
• Brian Hoop, Housing Oregon
• Angela Martin, Here Together
• Elsa Natal, Our Just Future
• Erika Silver, Director of Housing & Stabilization Services, NAYA

I recommend reading the whole thread or listening to the whole conversation, but here are some of the highlights.

On the current state of affordable housing in Portland — comparing pre-COVID to today — and the greatest challenges to housing stability:

Brian Hoop, Housing Oregon: The "old affordable housing model is broken." Before, rents covered the various costs of affordable housing providers, from operating costs to the cost of paying interest on loans. After COVID, the cost of operating housing shot up. Insurance, labor, maintenance, and utilities all became more expensive due to inflation.

Brian also explained that tenant needs became more costly after COVID because people coming in had higher acuity needs: from the spread of fentanyl use and overall failure of our behavioral health system (Oregon is ranked near the bottom in access).

Basically: needs went up while resources from the local, state, and federal level either decreased or didn't keep up.

"Without actions, the consequences are clear. Housing providers will be forced to reduce services. Units will destabilize or go offline, and some providers will exit altogether at a time when they are needed most."

On the primary causes of vacancy within their respective portfolios, and why rents are not reduced to attract tenants to vacant units:

Ian Davie, Home Forward: There are 3 main trends that they see coming up in terms of occupancy. The first is affordability. The second is geography, and the third is bedroom size. Half of Home Forward's vacancies are in just 8 out of more than 100 buildings they manage - all within the urban core. These units tend to be smaller, either SROs, studios, or one-bedrooms.

They’ve reduced rents at some properties but they also have to be financially prudent and budget for unexpected costs due to market trends.

Erika Silver, NAYA: Brought up property management. It's a real struggle to find quality property management that will stick with it, have staff retention, and work together to build a nice, positive, healthy community in the building - especially at the margins affordable housing providers are working with.

Traci Manning, Housing Development Center: Pointed out that the same areas where affordable housing providers are struggling with vacancies are where market-rate multifamily is struggling (based on Multifamily Northwest's recent survey).

On the occupancy trends PHB is seeing across the city's regulated affordable housing portfolio:

Michael Buonocore, PHB: Talked about economic vacancies, which is where people are living in apartments but can't pay their rent (vs. physical vacancies, where the unit is unfilled).

"And when we talk about all of the economic pressures that providers are facing, it doesn't help them to fill their apartments if the folks who are living in them don't have the means to make their rent. And the choices that are associated with solving for that are really difficult, right? There's eviction for non-payment of rent, and no one wants to do that, particularly mission-driven organizations."

What we heard clearly during the panel discussion is that these are not isolated challenges, this is a system under real strain across multiple fronts, from operations to financing to the increasing complexity of tenant needs.

Our next Housing and Permitting meeting is Tuesday, July 7, 2:00 pm.

City Life Committee

Portlanders: the first part of the City Life Committee is held for public comment, so don’t feel shy about weighing in on our priorities! Here’s highlights of what’s moved through the committee:

• Sidewalk signs (sandwich board) ordinance (passed 6/25 full council, 10 yes votes)
• Portland Children’s Levy grant allocations ordinance (passed 5/13 full council, 11 yes votes)
• Arts Tax reform ordinance (passed 5/27 full council, 7-5)
• Rideshare driver protections ordinance (moved to full council, 5-0)

Our next City Life Committee meeting is Tuesday, July 14, 2:00 pm.

Committee of the Whole

At our 5/28 Committee of the Whole meeting, we considered appointments to the Urban Forestry Commission and the Sustainability and Climate Commission. For both Commissions, I appreciated the emphasis on bringing in a diversity of perspectives and experiences and taking special attention to have East Portland voices at the table.

Climate resilience, transportation equity, environmental justice, urban heat, and community engagement are not abstract issues. Many East Portland neighborhoods experience some of the highest urban heat impacts in the city and the greatest exposure to pollution. Those inequities have real consequences for public health and quality of life.

Thank you to all the Portlanders who choose to serve on our boards and commissions. You make our City work!

Some highlights of what’s moved through the committee:

• Transportation Utility Fee ordinance (passed 4/29 full council, 9-3)
• Street Damage Restoration Fee ordinance (passed 4/15 full council, 11 yes votes)

Our next Committee of the Whole meeting is Wednesday, July 15, 2:00 pm.

East Portland Stories and Happenings

• Parents: Multnomah County’s Preschool for All is still accepting applications for the 2026-2027 school year! To be eligible, a child must be 3 or 4 by September 1st of the preschool year and have a parent or legal guardian living in Multnomah County.
  • If your kids are older, Portland Public Schools is also accepting applications for the PPS Early Learners PreK program. What's great about this program? They serve all families regardless of income that have a need! There are still around 200 open preschool spots at PPS’s 14 locations across Portland.
    • Serves children ages 3–5
    • Full school day sessions (6.25 hours)
    • Help connecting families to health and community resources.
    • All teachers are licensed educators through the State of Oregon 
• I talked with OPB about my concerns about efforts to privatize parks.
• I spoke with Street Roots on why sweeps don’t solve homelessness.
• I joined KATU to talk about the Moda renovations and my priorities in the negotiations.
• On Fridays and Saturdays from June 12 - August 22, you can take a free shuttle straight to Washington Park and Forest Park! Portland has one of the largest urban forests in the country, but getting over there can be tough for people on our side of town. Learn more here.
• Portland Parks and Recreation’s Summer Free for All is getting in full swing! Check out fun cultural events like An Evening of Latin & Soul at Ventura Park on July 11 at 6:00pm, or Free Lunch + Play at one of several East Portland parks, Monday-Friday from June 22-August 21.
• Save the date! On July 25, 11:30am - 1:30pm at Farragut Park, join families, local businesses, non-profits, and community leaders for a day of connection at the 3rd Annual Kitchen Killa & Friends Community Cookout! This free event hosted by Chef Kiara and friends is a celebration of food, fellowship, and community service in our city, providing thousands of FREE meals to parents, families, veterans and youth. All are welcome! RSVP here.

In solidarity,

Candace Avalos