Grant

Network for Affordable Housing ($1,000,000)

Program-Related Investment

Network for Affordable Housing ($4,000,000)

Background

Over the last 15 years, Oregon has experienced high rates of in-migration, rapid escalation of real estate prices, and high growth in low-wage jobs. These trends have not only put homeownership out of reach for many, but also have led to a steady decline in housing affordability. Regardless of income, 26 percent of all renter households in Oregon pay more than 50 percent of household income on housing — this is the second-highest rate in the U.S. Over the next five years, federal subsidy contracts will expire for 80 percent — nearly 5,500 units — of Oregon’s privately-owned, federally-subsidized rental housing stock. Nearly one-quarter of these units are located in Portland, where more than 2,700 applicants are waiting for Section 8 rental assistance. Seventy-one of Oregon’s 1,300 manufactured home parks have closed since 1995, displacing 2,736 households. These homes provide a less-expensive housing alternative to low-income residents in markets that may not have access to subsidized multifamily properties.

Project Description

Created in 2007, the Housing Acquisition Project is a collaboration of the State of Oregon’s Housing and Community Services Department, the City of Portland’s Bureau of Housing and Community Development, and the Network for Oregon Affordable Housing (NOAH). NOAH is a nonprofit 22-bank consortium that has provided technical assistance, and interim and permanent financing for affordable housing projects since 1990. The Housing Acquisition Project consists of the Oregon Housing Acquisition Fund and complementary activities to encourage affordable rental housing preservation. These new tools supplement the permanent financing NOAH already provides, thus creating more funding options for the different stages of a preservation project.

The grant will help enhance the Housing Acquisition Project’s management by making it possible to hire additional staff to support the full-time director in meeting the project’s preservation objectives. New staff will focus on increasing the level of cooperation and coordination between local, state, and federal government housing agencies to streamline the property transfer and subsidy contract renewal processes. Funds from the grant will help improve and maintain an already-functioning website that includes a comprehensive database of Oregon’s subsidized and affordable properties, and enhance the site to incorporate current project information that will be accessible to all interested parties. The grant will ensure that the staff improves tenant outreach, especially to residents living in properties whose subsidy contracts are expiring. Part of this effort will include working with an established statewide network of tenant advocacy organizations to develop educational materials to inform tenants of their rights and options, especially when property owners decide to opt out of or not renew their subsidy contracts.

The program-related investment will further capitalize the Oregon Housing Acquisition Fund, a revolving loan fund created to finance the purchase of at-risk properties on an interim basis until a developer can assemble permanent financing. Resources will be available at below-market interest rates and well above traditional loan-to-value limits, which will allow less well-capitalized nonprofit organizations to compete with market investors to purchase properties with expiring rental subsidy contracts. In addition to federally-subsidized properties, the Fund will be used to acquire land for future affordable housing, and for targeted acquisition of existing market-rate projects for conversion to affordable housing and manufactured home parks at risk of closure.

Contact

Rob Prasch
Preservation Director
Network for Oregon Affordable Housing
1020 SW Taylor, Suite 585
Portland OR 97205
Phone:  503 501-5688
robp@noah-housing.org