Settling Historical Injustice: Portland’s Proposed $2 Million Payout For Displaced Albina Residents

A significant step toward justice is being taken for the descendants of a historically Black neighborhood in Portland, where homes were seized and demolished under the threat of eminent domain. As part of a proposed settlement stemming from a civil rights lawsuit, these residents are set to receive a $2 million payout and have some land returned to them. This agreement aims to acknowledge the harm inflicted upon these families and their communities.

Just before the lawsuit was file Opio Sokoni did a Portland show on Mr. Elijah Muhammad’s Ghetto Rise television show. On the citywide broadcast displaced person, Ms. Bird, talked about the injustices that happened to her family. 

The lawsuit, initiated in 2022 by the Oregon Law Center on behalf of 26 Black plaintiffs, addresses the displacement of families in the Albina neighborhood adjacent to Legacy Emanuel Medical Center, which began with discriminatory policies from the late 1950s through the 1970s. The legal action alleges that the city of Portland and its economic development agency, Prosper Portland, colluded with the hospital to force hundreds of Black families out of their homes, using the pretense of urban renewal to justify the demolition of their properties. The plaintiffs contend that they were inadequately compensated for their homes, resulting in the loss of millions of dollars in generational wealth.

On Friday, the city of Portland and the Oregon Law Center announced a proposed settlement, which will be presented for a vote by the full City Council on Thursday. The settlement stipulates that the city will contribute $1 million, while Prosper Portland will match this amount, directing the total of $2 million to the Emanuel Displaced Persons Association 2 (EDPA2). If approved, Prosper Portland will also transfer two parcels of land back to the association in the area formerly known as Central Albina, now referred to as the Eliot neighborhood.

In 2023, Legacy Emanuel resolved its part in the lawsuit, although the specifics of that settlement remain confidential. The Oregon Law Center has shared videos featuring testimonials from some affected residents, who recount the challenges faced in predominantly white neighborhoods where they were relocated. Many families had to rebuild their lives after losing the stability and wealth associated with homeownership.

The lawsuit highlights that the hospital was established in the Albina neighborhood in 1915, with expansion discussions commencing in the late 1950s. At that time, Central Albina was home to approximately 69% of the city’s Black population. The plaintiffs assert that the city assured the hospital it would receive compensation through tax incentives for the costs associated with seizing and demolishing homes. This plan was backed by federal funding from the 1949 Housing Act, which permitted municipalities to partner with private enterprises to redevelop areas deemed “blighted” or “slums.”

The suit further notes that similar discriminatory practices were employed by the city for other projects, resulting in the displacement of numerous families and the subsequent gentrification of Central and Lower Albina, which caused home values to surge. Notably, the hospital expansion never materialized, potentially due to federal funding cuts that hindered the city’s ability to fulfill its commitment to Legacy. Many of the lots where the plaintiffs’ homes once stood remain vacant to this day.