AMENDMENT NO. 1

An Amendment to Agreement No. 34405 between the City of Portland and Portland Development Commission.

RECITALS:

1.  An ordinance authorizing Agreement No. 34405 with the Portland Development Commission was passed by City Council on August 14, 2002 to administer housing and economic development programs that primarily benefit low- and moderate-income residents. The total contract was for $9,348,505 of which $6,021,759 was from the Community Development Block Grant (CDBG) budget and $3,326,746 was from the HOME Program budget. The City now desires to modify that agreement.

2.  The City intends to allocate, via the Supplemental Budget, $2,084,485 of CDBG funds for a variety of housing, economic development, and facilities development projects.

3.  The City intends to allocate, via the Supplemental Budget, $6,999,454 in HOME funds for affordable rental housing development.

4.  The Council now desires to amend Agreement No. 34405 with the Portland Development Commission so that it can carry forth these activities. The contract budget will be increased by $2,084,485 in CDBG funds and $6,999,454 in HOME funds.

AGREED:

The undersigned agree to amend Agreement No. 34405 between the City of Portland and the Portland Development Commission as follows:

1.  IV. Compensation and Method of Payment is amended to read total compensation under this agreement shall not exceed EIGHTEEN MILLION, FOUR HUNDERD THIRTY TWO, FOUR HUNDERD AND FORTY FOUR DOLLARS ($18,432,444).

2.  The following activities are receiving CDBG funds via the Supplemental process:

a)  Homebuyer Program        $ 128,000

b)  Homeowner Rehabilitation Loans    $ 98,343

c)  Affordable Rental Housing      $ 569,520

d)  0-30 Rental Housing (Royal Palm)    $ 532,000

e)  Non-profit facilities        $ 380,000

f)  Sewer Hook-up          $ 10,624

g)  Storefront Improvement Program      $ 252,866

h)  DOS            $ 79,910

i)  Business Development Financing      $ 33,222

3.  The following activities are receiving HOME funds via the Supplemental process:

a)  Affordable Rental Housing      $6,999,454

All other terms and conditions of Agreement No. 34405 between the City of Portland and Portland Development Commission shall remain the same.

Dated this day of , 2003

CITY OF PORTLAND        PORTLAND DEVELOPMENT COMMISSION

___________________________      _____________________________

Erik Sten          Donald Mazziotti

Commissioner of Public Works      Executive Director

APPROVED AS TO FORM:

___________________________      _____________________________

Jeffrey L. Rogers          Henry H. Lazenby        

City Attorney            PDC Attorney