http://www.portlandonline.com/phb/in...52610&a=301631
This new housing development will be a five story wood frame building constructed on Block 49 in the North Macadam Urban Renewal Area. The project will have 209 affordable apartments over ground-floor commercial space and both underground and at-grade parking. ll 209 of the apartments will be affordable to households earning 60% of median income or less ($29,000 for a single person household). The project will include 42 apartments targeted to veterans and affordable to households earning less than 30% MFI ($14,700). The first-floor commercial space may be used for retail, office, or community services. The project will be very “green,” achieving, at minimum, a LEED Silver standard.
Construction is expected to start in late fall 2010, with completion in 2012. Financing for the $50 million project includes TIF subsidy from the North Macadam Urban Renewal Area (NMAC URA), 4% LIHTC, and federal and state grants. Additional private activity bond financing will be temporarily used during construction.
What is the plan for the building, and who will be living there?
All of the apartments will be affordable to households earning 60% of median income or less ($29,000 for a single person household). The project will include 42 apartments affordable to households earning below 30% MFI ($14,700) and targeted to veterans. The first-floor commercial space may be used for retail, office, or community services. The project will be very “green,” achieving, at minimum, a LEED Silver standard.
What is the program for the very low income units?
Veterans will be assisted through the Veterans Administration Supportive Housing program (VASH) and the Housing Authority of Portland’s (HAP) Moving to Work program. Both programs utilize HUD Section 8 program-based and tenant-based rental assistance. Support services for the Veterans will be provided by the Veterans Administration allowing the development to target homeless Veterans, or those at-risk of homelessness.
Who is developing the project?
The Portland Development Commission (PDC) purchased Block 49 as part of the strategy for funding infrastructure improvements in the south waterfront. The former owners, North Macadam Investors LLC (NMI), have been working with PDC to plan the project and have designed and permitted construction plans through the efforts of Ankrom Moisam Architects and Walsh Construction. Although PDC and NMI agreed that NMI would repurchase the site from PDC and develop the project; both parties believe that the development process will be facilitated by having an experienced non-profit organization control the ownership and operation of the project. The non-profit sponsor will be solicited through a Request for Qualifications to be released in May 2010. The selected non-profit will form a related entity to act as the general partner or manager of the limited partnership, or limited liability corporation, to own and operate the development. It is anticipated that NMI (doing business as Williams and Dame Development), Ankrom Moisam and Walsh Construction will continue in their respective roles as development consultant, architect and contractor. The new entity, controlled by the sponsor non-profit, will develop and own the project.
Is PDC managing the project, or the new Housing Bureau?
PDC will continue to own the site until it is transferred to the new owner. PDC and the Portland Housing Bureau (PHB) are working cooperatively to implement the project with PHB as the lead bureau. It is anticipated that the new owner will enter into a Disposition and Development Agreement (DDA) with both PDC and PHB for the conveyance of the property and into loan agreements with PHB for the funding.
How will the project be financed?
Primarily, the project will utilize bond financing and tax credit equity resulting from an allocation by the state of the 4% low income housing tax credit.
How much TIF will be used?
An estimated $28 million in new TIF is needed for this project. This new TIF funding and past TIF expenditure for land acquisition and predevelopment expenses results in a total TIF expenditure of approximately $30 million.
Will this project always be off the tax rolls?
As affordable housing controlled by a not-for-profit corporation, the residential portion of the building will not be taxed. It is expected that the commercial spaces will be subject to property taxes unless the uses otherwise qualify it for exemption.
What are the TIF set-aside income guideline goals?
The following TIF set-aside income guidelines apply to the North Macadam Urban Renewal Area (NMURA).
Proposed Income Guidelines: Resource allocations will meet the following criteria: Income/Spending Category
(MFI/housing type)
Proposed Income Guidelines
Estimated Unit Potential
FY06/07 – FY11/121
0-30% MFI Rental Housing
50% - 70%
NMURA - 135-190 units
31-60% MFI Rental & 0-60% Homeownership3
20% - 40%
NMURA - 85-175 units
61-80% (100%2) Homeownership
0% - 20%
NMURA - 0-65 units
Low Income Community Facilities4
0% - 10%
Not applicable
Will this project meet the income guidelines of the Set Aside?
During the current timeframe, TIF set-aside goals require 39% of the TIF available for projects in the North Macadam Urban Renewal Area to be spent on affordable housing projects. After completion of the Central District projects, the TIF set-aside goal will adjust to 30% of total URA project resources. All of the 208 units in the Block 49 project are affordable (0-60% MFI) thus bringing the North Macadam URA expenditures into alignment with the TIF set-aside policy.
The project will be the first affordable housing project in the district. In addition to meeting the goal of spending at least 30% of Urban Renewal Area TIF on affordable housing, the project will also strive to meet some of the TIF set-aside policy income guideline goals. The Income Guidelines require at least 50% of the URA TIF set-aside allocated to units in the 0-30% MFI range and at least 20% allocated to units in the 31-60% MFI range.
How does the project meet NMURA Housing policies?
The North Macadam Housing Development Strategy and the Central District Development Plan are the key documents that outline quality, production, and income goals for housing in the North Macadam URA. This project meets many of the housing goals outlined in these strategies by creating a mixed income mixed use housing project near major employers and transportation.
Project Timeline:
Summer 2010 – Issue Request for Qualifications
September 2010 – Obtain City Council approval of funding
October 2010 - Underwriting and closing
Late Fall 2010 – Begin Construction
Other ways the project meets public policy goals:
* Project transforms a formerly contaminated site into a highly sustainable, LEED Silver apartment building
* Will add to the tax base for the commercial portions of the building
* Provides transit oriented housing opportunities at the end of the Streetcar line
* Meets the City’s Minority, Women, and Emerging Small Businesses percentage of contracting goals of 20%
* Provides apprenticeship opportunities for construction workers
* Pays quality, family wages (BOLI Commercial)
* Adds to the economic diversity of the South Waterfront district
* Builds a vibrant neighborhood with active ground floor office and retail
* Provides stimulus to the local economy now while it is needed the most
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