Portland city councilors made their first steps yesterday toward spending $56 million in housing funds that were discovered unspent over the last several months.

Why it matters: The city is simultaneously in a housing crisis and a budget crisis, so the money — accumulated over years — represents a rare windfall.

The latest: The council approved the $56 million proposal on an 8-4 vote after it was moved unanimously through the newly formed Housing and Permitting Committee the day before. It includes:

• Nearly $22 million to create a new loan fund for housing construction, preserve affordable housing and create government-owned social housing.
• Roughly $9 million for rent assistance and another $9 million to pay down the debt of affordable housing landlords in exchange for them lowering rents or improving security at their properties.
• $8.6 million to the city's general fund.

Catch up quick: A series of discoveries over the last few months revealed $106 million of unspent funds in the housing bureau that had accumulated over several years, but was never budgeted.

• Due to restrictions on how that money can be spent, the council was left with around $56 million to put toward new housing initiatives as of Wednesday.

Between the lines: In a February memo, city administrator Raymond Lee spelled out how the funds were collected but never spent.

• Some of the funds came from fees on short-term rentals, money allocated to programs that no longer exist and funding for risk mitigation, all under the umbrella of the Housing Investment Fund.

How it happened: Under Portland's previous form of government, where city commissioners also oversaw city bureaus, information was siloed and there was a lack of accountability, Frankline Muthomi, a public administration professor at Portland State University, told Axios.

• The scale of the unspent funds likely grew because revenue collection systems were in place, but the city lacked clear plans, authority or coordination to spend the money.
• "Each bureau was managed by a council member who was both a policy maker and also a policy implementer," Muthomi said. "So it's very hard to hold yourself accountable."

What we're watching

A new, highly anticipated bagel shop opening this weekend is claiming it can go toe-to-toe with New York's best.

The big picture: Known for repeatedly selling out at farmers markets and pop-ups across the city since 2024, Pipsqueak Bagels will be slinging its hand-rolled bagels five days a week at its brick-and-mortar home in Creston-Kenilworth starting Saturday.

• "I've had New Yorkers be like, 'This is better than bagels I've had in New York,'" owner Madilyn Gibbons told the Portland Mercury.

Best bites: Gibbons' process — cold fermenting the dough for up to two days, rope-rolling it into formation, then briefly boiling and baking — gives her bagels a crisp, golden brown outer shell, a tender bread-like interior and overall chewy texture.

• They're also not flat and sad, but have some height and heft.
• When Pipsqueak opens its doors, they'll have six bagels on offer: everything, jalapeño cheddar, poppy seed, rosemary sea salt and plain. Cream cheese options include plain, lox and scallion to start.

There will also be sandwiches — think lox with red onion, capers and dill, the classic bacon, egg and cheese, as well as an Italian grinder.

• Pipsqueak is also working with long-time collaborator Puff Coffee on a specialty blend.

If you go: Pipsqueak Bagels (3844 SE Gladstone Street) opens Saturday, and will be open Thursday through Sunday, 7am to 2pm.

• The hype for these bagels is real. Expect crowds and long lines if you go opening weekend.

🌊 Ecola State Park, home to some of the most scenic hikes on the coast, reopened this week after shutting down in December due to large landslides. (The Oregonian)

👎🏼 Officials in Washington and Clackamas counties rejected Mayor Keith Wilson's request for the counties to chip in more than $10 million to maintain shelter beds in Portland. (KOIN)

🛰️ Oregon State researchers are using satellite imagery to track destruction in Iran to better understand the ecological impact of war. (OPB)

🏙️ The new owners of the Block 216 tower, home to the Ritz-Carlton hotel, agreed to pay a nearly $8 million fee to the city after the previous owner chose not to include affordable housing units in the building. (The Oregonian)

Gasoline prices are expected to start reversing over the next few days — dropping a few cents daily — after the U.S. agreed to a two-week ceasefire with Iran, according to GasBuddy head of petroleum analysis Patrick De Haan.

Why it matters: Average gas prices in the Portland metro area have climbed roughly 60 cents over the past month due to the conflict.

• The average cost for a gallon of gas in Multnomah County currently sits at $5.11, per AAA.

Zoom in: West Coast fuel prices are especially exposed to price volatility because they're closely tied to markets in Asia due to geography and limited pipeline connections, Ryan Cummings, with the Stanford Institute of Economic Policy Research, told Axios' Christine Clarridge.

• We also tend to pay more for gas here compared to much of the U.S. due to a mix of state taxes and regional market dynamics.

What we're watching: Prices tend to fall more slowly than they rise, Cummings said.

Now through May, millions of birds will be passing through the Portland night sky as they make their twice-yearly migration along the Pacific Flyway — but they need a little help.

City lights can disorient birds that use the moon and stars to safely get to their destinations. Concentrations of artificial light in urban areas can also lead to higher collision risks.

• The Bird Alliance of Oregon urges everyone to turn off any outdoor lights that could disrupt this crucial nocturnal migratory period.

👍 Doing your part is as simple as flicking a switch.