A developer wants Corvallis City Council’s support and $400,000 to help with a $20 million, 60-unit low-income housing project.
City documents say staff is recommending the council approve an award of $400,000 in Affordable Housing Construction Excise Tax funding to build the proposed Rivergreen Apartments in 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 its state application.
The project site, which is zoned for both residential and commercial purposes, is on 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 median income, according to city documents.
“Qualifying individuals typically make less than $17 per hour and work jobs in the local community, which include restaurants, grocery stores, and various entry-level and service industry jobs,” a funding application states. “Our development seeks to blend into the surrounding neighborhood and become part of the larger community of Corvallis.”
People are also reading…
The Corvallis City Council is slated to decide on the $400,000 funding award and the letter of support at its meeting Monday, April 4.
Support local news coverage and the people who report it by subscribing to the Corvallis Gazette-Times.
The developer plans on working with community partners to feature resident services that may include health and wellness, budgeting, credit and finance, energy assistance, legal protection, mediation, eviction prevention, and employment and career advancement, according to the funding application.
The application also mentions a shortage of affordable housing options in Oregon, particularly for historically underserved and low-income communities. The applicant cites an Oregon Housing and Community Services report that Corvallis is the state’s most rent-burdened community.
“New developments like the Rivergreen Apartments are essential to providing individuals and families with affordable housing options at a time when a lack of safe and stable housing options has led to an increase in homeless individuals and families as well as severe rent burdens,” the applicant wrote.
The applicant also cites an Oregon Housing Alliance report stating Benton County faces a deficit of more than 4,500 affordable units available to individuals and families. The organization reports that close to 40% of renters are paying more than 50% of their income in Benton County.
“The Rivergreen Apartments directly respond to the critical need for affordable housing in Corvallis and Benton County,” the applicant states.
In April, Green Light Development plans to apply for state resources, including Local Innovation Fast Track funds, 4% Low Income Housing Tax Credits, and construction and permanent debt, according to city documents, which say the local funding would demonstrate support which would be helpful in leveraging state and federal resources.
The developer plans to reach slightly more than $20 million for the project by combining the $400,000 from Corvallis with $6.4 million in Local Innovation Fast Track loan funds, $6.8 million in permanent loan financing, and $6.06 million in 4% Low Income Housing Tax Credits equity, as well as $512,162 from a deferred development fee.
A conceptual drawing of Rivergreen Apartments for illustrative purposes only.
The council passed the Affordable Housing Construction Excise Tax ordinance on new residential, commercial and industrial development in 2016. The ordinance requires that the revenue be applied to projects and programs that expand the supply of affordable housing in Corvallis. The funding is available on a rolling basis.
The Affordable Housing Construction Excise Tax budget for fiscal year 2021-2022 is $1.3 million. City documents say the only other major expenditure for the budget year was $520,000 for a homeownership project in December.
The Affordable Housing Construction Excise Tax policy requires 60 years of affordability, and if awarded, the funding terms would be a zero-interest loan.
Oregon Senate Bill 8, passed in 2021, makes it easier to site affordable housing. Under the legislation, local government is prohibited from requiring a zone change or conditional use permit for affordable housing on property zoned for commercial uses.
Cody Mann covers Benton County and the cities of Corvallis and Philomath. He can be contacted at 541-812-6113 or [email protected]. Follow him on Twitter via @News_Mann_.
Subscribe to our Daily Headlines newsletter.