A memo Helmi Hisserich sent to city councilors says city administration viewed unspent funds as "a big PR problem." by Jeremiah Hayden The former director of the Portland Housing Bureau says she was ousted for trying to advance City Council’s social housing policy and was unfairly blamed for revenue that went unspent prior to her appointment to the bureau’s top position. Helmi Hisserich, who led the Portland Housing Bureau (PHB) until she was put on leave and forced to resign in November, sent a memo to Portland city councilors on December 4, outlining her perspective on what happened in the months leading up to her termination.  Wilson did not give Hisserich a reason for her termination at the time. But her memo suggests she was denied opportunities for advancement, and pushed out of her position for uplifting the same social housing strategies she was hired to implement. “I came to Portland because it is a major city with progressive values that has been a leader on many of the country’s most important pro housing policies,” Hisserich wrote. The memo raises further questions about the relationship between the city’s administrative branch, led by the mayor, and the City Council, which sets the legislative agenda. On countless occasions in the first year under the new form of government, councilors have raised concerns that the administration is not transparent about its work and may at times slow the flow of information for political purposes. In the 10-page memo obtained by the Mercury, Hisserich made clear she accepts Mayor Keith Wilson’s decision to place her on leave and ultimately terminate her, and she is not interested in being reinstated or pursuing litigation. “I want to begin by stating that I accept the Mayor’s decision,” Hisserich said. “I am not asking to be reinstated and have no interest in litigation. I write today to set the records straight, to speak up for myself and for all bureau directors who have been summarily dismissed from city service without cause.” Hisserich’s memo comes less than two weeks after The Oregonian reported that PHB had been sitting on $21 million in unspent funds generated by the Rental Services Fee—a nominal cost to landlords for doing business in the city since 2018. News of the funding came one day after the City Council adopted its Fall Technical Adjustment Ordinance (TAO) to address a $16 million budget shortfall on November 20. However, the newly available funds were not discussed or presented to city councilors despite multiple opportunities before the adoption of the TAO. But Hisserich said she did not attempt to hide the ball, as has been suggested. In her memo, she said she requested an audit of the rental services fund balance and expenditures after a conversation in June with Councilor Eric Zimmerman, who chairs the city’s Finance Committee. Public records show Hisserich then helped craft a spending plan and reported the findings to Deputy City Administrator Donnie Oliveira. She claims Oliveira advised her not to share the information with city councilors, including Zimmerman, as it could create a “big PR problem.” Hisserich sent the letter the same day the City Council postponed a previously scheduled housing and homelessness work session, during which Wilson was expected to provide updates to councilors. Wilson’s spokesperson Cody Bowman said in a statement to the Mercury that Wilson and his team “are reviewing unanswered questions about the funds that were not reported to the DCA and the circumstances surrounding them. At the same time, these funds represent an opportunity for the mayor to work collaboratively with Council colleagues to better serve the housing needs of the community.” Bowman said the city is unable to comment on personnel matters. Oliveira’s office acknowledged the Mercury’s request but was unable to respond at the time of publishing. This story will be updated. Hisserich said in her memo that she believes the administration used the funds she unearthed as a way to undermine her social housing expertise. "I think I should have been thanked for finding money that was stuck in the system," Hisserich told the Mercury when reached by phone Thursday. "Instead, I'm being vilified for it." The City Council adopted a resolution on April 2, directing the city administrator to explore social housing models as a solution to the city’s affordable housing and subsequent homelessness crisis. Hisserich was tapped to lead the study, and PHB was to deliver a report by May 31, 2026. But during the course of that work, Wilson placed Hisserich on leave without cause on October 30. Now, Hisserich wants to clear her name. “I don’t want to get mired in the past. I think it is far more important to keep looking forward. But I want to leave the city with my reputation for good public service intact,” Hisserich wrote. Hisserich says she told Oliveira of the audit results in a July meeting, and public records show she sent Oliveira a list of funding recommendations on August 28.  That included reserving $9 million for one operational year of the Rental Services Office, with $11.7 million left for one-time expenditures for rapid rehousing programs, eviction protections, rent and relocation assistance for renters, as well as technical assistance for landlords. The recommendations were amended by October 13 to send $2.75 million seeking to help address the city’s shortfall. In July, Hisserich had initiated an audit of the unspent funds, which had accrued from 2021-2024. Hisserich joined PHB in early 2024 after then-Commissioner Carmen Rubio appointed her to the position in 2023. The memo comes one day after city councilors grilled outgoing City Administrator Michael Jordan on the $21 million, raising questions about how the administrative side of city government shares information with the legislative body, particularly during the budget process in November.  In the December 3 meeting, Councilor Mitch Green said there is a conversation to be had about the City Council’s oversight power. As the Council votes to confirm a new city administrator later this month, and council president early next year, Green said he needs reassurance that the administration will allow councilors the information they need to do their jobs. He added that the Council should exercise its oversight power. “We have not yet used our formal oversight power to engage in these questions, which is a way for us to punch through what could be a desire to stymie that flow of information,” Green said. “So, I think that we need to have that hearing at some point very soon. And I think that that's in the spirit of what my colleague [Councilor Morillo] is getting after. Because we need to be very good at understanding how these dollars are executed, how they come in, and whether there was a lapse in the process.” Jordan added fuel to the question of what happened saying the decision to remove Hisserich and the funding woes were not necessarily related. “It’s very challenging to talk about a personnel issue in public, so I'm not going to do that,” Jordan said. “But I also want to make sure that the public knows that the implied linkage between this money and the personnel issue you're referring to is not a complete picture. So, I just want to make sure the public understands that.” ...read more read less