Discussion: Portland development has slowed a lot.

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One thing people really need to take into consideration is the current lending situation. Projects that penciled 1.5 years ago just don’t pencil anymore. Many nonprofits have stalled housing projects too, and they’re scrambling to figure out what to do. The state and Prosper Portland have to pony up gap funding. Problem is, there isn’t much out there from what I’m hearing, unless it’s reallocated from some other failed project that was facing the same financing issues. There are even conversion issues right now, with projects stuck in construction lending products and unable to get into permanent financing given the contingency requirements of lenders that can’t be met with the new world of interest rates.

Also the eviction moratorium absolutely decimated some landlords, including nonprofits, some of whom are really doing triage and just trying to make it out of this alive.