The U.S. Department of Agriculture (USDA) Rural Development is investing $7.2 million to preserve four apartment complexes providing 122 units of affordable rental housing in rural Oregon, announced State Director John Huffman today.
"Access to affordable housing is not just an issue in urban areas; people living in rural communities also struggle to find rentals they can afford," said Huffman. "We are proud to announce this significant investment to preserve affordable rental housing for rural Oregonians."
Glenhaven Park LLC will purchase and renovate four apartment complexes using $7,259,000 in loans from the Network for Oregon Affordable Housing that have been guaranteed by USDA Rural Development. The apartments in Heppner, McMinnville, Newberg, and Tillamook will maintain affordable rates and retain rental assistance provided by USDA for eligible low-income residents.
The apartment complexes will be completely renovated by Chrisman Development, Inc. On the exterior, new roofs and siding will be installed, parking lots will be repaved, concrete walkways will be added, the landscaping will be updated, and the buildings will be painted. The interior of the apartment complexes will also be thoroughly remodeled by replacing windows, doors, insulation, cabinets, flooring, lights, and appliances. The renovation will include accessibility improvements such as handicap parking spaces and ramps throughout the complexes. Building safety will also be improved with new fire extinguishers, smoke detectors, and door locks.
Overall, these renovations will preserve 122 units of much-needed affordable rental housing, along with rental assistance provided by USDA for 110 low-income residents at these apartments to help ensure they pay no more than 30 percent of their income on housing.
The funding is being provided through USDA's Multi-Family Housing Loan Guarantee Program, and is contingent upon the recipient meeting the terms of the loan agreements. Glenhaven Park LLC is also assuming prior Rural Development loans for the construction of the properties. Additional funding is being provided by Oregon Housing and Community Services (OHCS) in the form of low-income housing tax credits and housing preservation financing. The property reserve funds and Glenhaven Park LLC are also contributing to the renovation costs. In all, the total cost of these projects will be $26,239,263.
The Multi-Family Housing Loan Guarantee Program guarantees loans made by private-sector lenders to finance the purchase, construction, or renovation of affordable rental housing for low-income residents in rural areas with a population of 35,000 or less. Most state and local government entities, nonprofits, for-profit organizations, and federally-recognized Tribes are eligible borrowers under this program. Applications from lenders are currently being accepted through December 31, 2021.
USDA Rural Development provides loans and grants to expand economic opportunities and create jobs in rural areas. This assistance supports infrastructure improvements; business development; housing, community facilities such as schools, public safety, and healthcare facilities; and high-speed internet access in rural areas. Learn more at www.rd.usda.gov/or.