Posted Nov 5, 2022, 12:53 AM
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Join Date: Jan 2009
Location: Portland
Posts: 7,405
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Quote:
State ruling slows delivery of affordable housing
Crews in Northeast Portland are finally turning what was once a collection of old Pepsi warehouses into a 4.7-acre mixed-use development, Security Properties announced recently.
Construction of the first phase, including the Splash Apartments, was poised to start a year ago. The building permit for the eight-story structure had been issued – as had the alteration permit for restoration of the now 60-year-old bowstring-truss bottling plant. Excavation equipment was on site at 875 N.E. 27th Ave., in the Kerns neighborhood. Everything appeared set and ready to go.
However, behind the scenes that was not the case.
The project’s financing had stalled. Oregon officials in February ruled that developer Security Properties could not use a tax-exempt bond portfolio and low-income housing tax credit to cover construction costs.
The Splash Apartments will hold 219 apartments. Originally, 44 would have been for renters earning 60 percent of the area median income or less to meet city requirements. In return, the developer would gain flexibility regarding capacity, height, and site configuration.
Security Properties wanted to build all affordable units within the first phase of development, in the Splash Apartments. Two legal entities were created to separate the affordable and market-rate components, said John Marasco, Security Properties’ chief development officer.
“At the end of the day, I think in very simplified terms,” he said. “The state (officials) could not wrap their arms around having a mixed-income building with affordable housing units together with market-rate units.”
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...continues at the DJC. ($)
A perhaps surprising tidbit at the end: "Entitlement for phase two will begin early next year, Marasco said."
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