Portland Approves Office-to-Residential Loan Forgiveness Program

Portland Approves Office-to-Residential Loan Forgiveness Program
News| October 13, 2025| Jasmine Kilman
Seattle & Northwest + Apartment Buildings

Prosper Portland, a group focused on economic growth and opportunity for the city, has approved a new loan forgiveness program for office-to-residential conversions.

The conversion pilot loan program targets projects that would convert underused office buildings into housing. The program offers up to $60,000 per unit to account for savings from embodied carbon and up to $25,000 per unit for energy efficiency improvements.

The loans would be structured as a 2%, 10-year forgivable loan as long as the project is performing and rents stay within 60% to 120% of the local median income. The principal balance of the loan will be forgiven at one 10th per year, reported the Portland Business Journal.

The forgiveness program is part of Portland’s efforts to repurpose vacant commercial buildings, with office-to-residential being one potential solution. Earlier this year, Portland ranked as one of the top ten cities for office 30 U.S. cities for office conversion feasibility.

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