The Portland City Council will vote for the second time Monday night on whether to allocate $1.2 million of federal funding to a loan to developers building an affordable housing project next to Dougherty Field.

The council is considering a loan to 45 Dougherty, LP, the developer of a new housing project that will include 63 units – 35 one-bedroom units, 18 two-bedroom units and 10 three-bedroom units.

According to a memorandum on the project to the council, the units will be earmarked for residents earning at or below 60% of the area median income, or $56,820 for a two-person household or $70,980 for a four-person household.

The project, described as “shovel ready” in the memorandum, is slated for what is currently an empty lot at 43 Douglas St., next to Dougherty Field.  

Greg Watson, the city’s director of housing and economic development, said Friday that the property was formerly owned by the city, and one of five such one-time city-owned development projects in the works right now.

“This particular project fills a need to add a level of affordability that we think is important to include in Portland,” he said.

The project was granted approval in March 2023, but since then costs have climbed, Watson said.

“This project has encountered some cost creep in their budget overall, things like building materials, supply chain issues as well as the cost of labor have all driven up the cost of producing the housing,” he said. 

If approved, the $1.2 million will come from 2021 American Rescue Plan Act funding, currently kept in the city’s housing trust fund. Developers will have up to 30 years to pay it back.