The Portland City Auditor on Wednesday reversed its October determination that Rene Gonzalez’s city council campaign violated campaign finance limits by accepting a subsidized $250 monthly rent for over 3,000 square feet of office space and two designated parking spots in downtown Portland owned by campaign supporter and real estate mogul Jordan Schnitzer.

Susan Mottet, director of Portland’s Small Donor Elections program, wrote in an Oct. 10 letter to Gonzalez that the city, under administrative rules, can withhold public funds in cases of “high outstanding penalty amounts” or “egregious violations.”

The boost in Gonzalez donors cuts into one of Hardesty's touted political strengths throughout much of the race.

Portland City Council candidate Rene Gonzalez on Tuesday formally asked elections officials to waive a whopping $77,000 fine, arguing that a deeply discounted downtown office space he received from a wealthy supporter does not run afoul of the city’s campaign finance rules.