$20 Million Affordable Housing Project in Corvallis Gets City Financial Support | Local
A proposed $20 million, 60-unit low-income development has the backing of Corvallis town officials.
Corvallis City Council on Monday, April 4, unanimously approved a $400,000 interest-free loan as part of the excise tax financing for the construction of affordable housing for the Rivergreen Apartments project in Willamette Landing. . The board also unanimously approved a letter of support to the plaintiff, based in Portland Green light developmentto continue state funding.
“The timing of this resource is really important,” said Brigetta Olson, housing and neighborhood services manager for Corvallis. “Being able to have a local resource before the application of the State is very useful; it shows local support, community support for housing development.
Excise tax money on affordable housing construction comes from other developers doing business in the city, who pay a tax to help fund future affordable housing projects. The award requires the development to remain affordable housing for 60 years. The $400,000 loan is due at the end of the affordability period.
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The project site is at the northwest corner of Southeast Rivergreen Avenue and Southeast Midvale Drive. The 60-unit development would include a mix of one-, two- and three-bedroom apartments for people at or below 60% of the area’s median income, according to a city document.
With a regional median income of $85,000, that means a Corvallis family of four earning $51,000 or less a year would qualify.
“We are in a housing crisis,” Councilor Charles Maughan said. “In the past, when tax credit funds were already set at 60%, that was low income. Now it really is housing for the workforce. I heard recently that 66% of the people who work in Corvallis don’t live here. We desperately need this accommodation.
In a phone interview, Olson said the apartments, which will be eligible for Housing Choice Vouchers (Section 8), would have a monthly cost of $956 for one bedroom, $1,147 for two bedrooms and $1,326 for three rooms. She said households with Section 8 vouchers pay 30% of their income in rent.
“Eligible individuals generally earn less than $17 per hour and work in the local community, including restaurants, grocery stores, and various entry-level and service industry jobs,” the funding application states. from the developer.
Developer plans to work with community partners to provide services to residents that may include health and wellness, budgeting, credit and finance, energy assistance, legal protection, mediation, eviction prevention and professional and professional advancement, depending on the request for funding.
The request also cites a dearth of affordable housing options in Oregon, especially for historically underserved and low-income communities. The plaintiff cites a report from Oregon Housing and Community Services that Corvallis is the most burdened community by state rents.
The plaintiff also cites a report by the Oregon Housing Alliance which concluded Benton County faces a deficit more than 4,500 affordable housing units offered to individuals and families. The organization reports that nearly 40% of renters pay more than 50% of their income in Benton County.
In April, Green Light Development plans to apply for state resources, including Fast Track funds for local innovation, 4% low-income housing tax credits, and permanent and construction debt, according to city documents, which indicate that local funding would demonstrate support that would be helpful in leveraging state and federal resources.
The developer expects to raise just over $20 million for the project by combining Corvallis’ $400,000 with $6.4 million in Fast Track Loan Funds for Local Innovation, $6.8 million in permanent loan financing and $6.06 million in 4% low-income housing tax credits. as well as $512,162 from deferred development costs.
During the meeting, the board also voted unanimously to begin contract negotiations to accept a $1 million state grant to address housing insecurity, lack of affordable housing, or homelessness. The money comes from Senate Bill 5561which has awarded million dollar prizes to more than a dozen cities for housing issues.
One-time funds must be expended by the end of June 2023. The Housing and Neighborhood Services Division will send a distribution plan to City Council once it is finalized. The board is also expected to discuss the allocation of $1.9 million in federal funds for social services in the near future.
“The more money the better,” Councilor Gabe Shepherd said. “I’m glad we have this influx of money, and I think it’s going to great causes. I have full faith in our staff to make sure it gets where it needs to go.
Cody Mann covers Benton County and the towns of Corvallis and Philomath. He can be reached at 541-812-6113 or [email protected] Follow him on Twitter via @News_Mann_.
“Being able to have a local resource in front of the state application is very helpful.” ~Brigetta Olson, Corvallis Housing and Neighborhood Services