Corvallis could see a $20 million affordable housing development |
A developer wants support from the Corvallis City Council and $400,000 to help with a 60-unit, $20 million low-income housing project.
City documents say staff are recommending council approve an allotment of $400,000 in excise tax funding for affordable housing construction to build the proposed Rivergreen Apartments at Willamette Landing. The money comes from other developers doing business in the city, who pay a tax to help future affordable housing projects.
Applicant Green Light Development is also requesting a letter of support from the mayor and city council for their state application.
The project site, which is zoned for residential and commercial use, is at the northwest corner of Southeast Rivergreen Avenue and Southeast Midvale Drive. The 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 city documents.
“Eligible individuals generally earn less than $17 per hour and work in jobs in the local community, including restaurants, grocery stores, and various entry-level and service-sector jobs,” a funding application states. . “Our development seeks to blend into the surrounding neighborhood and be part of the larger Corvallis community.”
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Corvallis City Council is expected to decide on the allocation of the $400,000 funding and letter of support at its meeting on Monday, April 4.
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 by Oregon Housing and Community Services that Corvallis is the most burdened community for state rents.
“New developments like the Rivergreen Apartments are essential in providing individuals and families with affordable housing options at a time when the lack of safe and stable housing options has led to an increase in the number of homeless individuals and families as well than heavy rental charges,” the plaintiff said. wrote.
The plaintiff also cites a report by the Oregon Housing Alliance indicating that Benton County faces a shortfall of more than 4,500 affordable housing units available to individuals and families. The organization reports that nearly 40% of renters pay more than 50% of their income in Benton County.
“Rivergreen Apartments directly address the critical need for affordable housing in Corvallis and Benton County,” states the applicant.
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.
The council passed the Building Affordable Housing Excise Tax on New Residential, Commercial and Industrial Developments Ordinance in 2016. The ordinance requires revenue to be applied to projects and programs that expand the supply of affordable housing in Corvallis. Funding is available on an ongoing basis.
The excise tax budget for the construction of affordable housing for the 2021-2022 fiscal year is $1.3 million. City documents say the only other major expense for the budget year was $520,000 for a homeownership project in December.
The Excise Tax Policy for Building Affordable Housing requires 60 years of affordability, and if granted, the financing terms would be a zero rate loan.
Oregon Senate Bill 8, passed in 2021, makes it easier to get affordable housing. Under the legislation, the local government is prohibited from requiring a change of zone or a conditional use permit for affordable housing on property zoned for commercial purposes.
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_.