The second year on the deal is non-guaranteed, according to a source.
The Blazers also agreed with forward Derrick Jones Jr., the reigning dunk champion, on a two-year, $19 million deal, according to The Athletic and other outlets.
Hood, 28, declined his $6 million player option with the Blazers to become a free agent earlier this week.
Hood tore his left Achilles tendon in December 2019 but with nearly a year of recovery time, the small forward can play right away for Portland.
The injury cut short a promising season in which Hood was averaging 11 points per game and shooting nearly 50% from 3-point range in 21 games for the Blazers.
A trade-deadline acquisition two seasons ago, Hood averaged 9.9 points and shot 35.5% from 3 during Portland's run to the 2019 Western Conference finals. He re-signed with the team on a two-year, $16 million deal with a player option.
Jones, 23, became an unrestricted free agent after completing a two-year, $3.16 million contract he signed with the Heat in 2018.
He went on to average a career-high 8.5 points per game on 52.7 percent shooting from the field this past season.
Jones, a UNLV product, began his pro career with the Phoenix Suns, who signed him as an undrafted free agent in 2016.