Oregon Housing and Community Services (OHCS) has announced a significant stride in addressing the state’s affordable housing crisis, particularly benefiting Black, Indigenous, and People of Color (BIPOC) communities and other underserved populations. The initiative, backed by a $72.8 million budget approved by the Housing Stability Council, aims to fund the development, preservation, and rehabilitation of 421 homes across multiple cities.
OHCS outlined its ambitious plan in a recent press release, emphasizing its commitment to equitable housing solutions. The approved budget will funnel resources into new construction projects, as well as the preservation and rehabilitation of existing housing stock, ensuring long-term affordability. These efforts target low-income households, with a special focus on bridging gaps in housing access for Oregon’s diverse communities.
In addition to funding specific projects, the Housing Stability Council approved updates to two critical programs aimed at fostering homeownership and development opportunities for low-income Oregonians. These changes are expected to streamline processes, reduce barriers, and create more inclusive opportunities for community-driven housing solutions.
Key updates have been made to the Local Innovation and Fast Track (LIFT) Homeownership program, a pivotal initiative for expanding affordable homeownership options. These include:
- Shift to Per-Home Subsidies: Loan amounts will now be determined based on per-home subsidies rather than appraised land value. This change is designed to provide more consistent and equitable funding support.
- Simplified Applications: Small housing projects will benefit from a streamlined application process, reducing administrative burdens and expediting development timelines.
- Incentives for Emerging Developers: Additional support will be available for small, culturally specific, and emerging developers, particularly in underserved counties. These incentives aim to empower community-driven solutions and amplify voices often underrepresented in housing development.
The Oregon Affordable Housing Tax Credit (OAHTC) Homeownership program is also undergoing significant enhancements. The program has been expanded to include support for limited equity cooperatives, an innovative and growing model of homeownership in the state. Limited equity cooperatives allow residents to collectively own and manage housing, offering a more sustainable and affordable pathway to homeownership.
By providing tax credits to developers’ permanent lenders, the OAHTC Homeownership program reduces overall financing costs. These savings are directly passed on to residents, ensuring housing affordability for individuals and families earning 80% or less of the area median income.
Oregon’s affordable housing crisis has long been a challenge, with rising costs and limited inventory disproportionately affecting BIPOC and low-income communities. The new initiatives reflect OHCS’s broader strategy to address systemic inequities and expand access to safe, stable, and affordable housing.
“These changes and investments are a significant step forward in our efforts to create housing opportunities for all Oregonians, especially those who have been historically underserved,” said an OHCS representative.
The $72.8 million investment signals Oregon’s renewed commitment to tackling its housing crisis head-on. By focusing on equity, innovation, and community-driven solutions, OHCS aims to lay the foundation for a more inclusive and sustainable housing landscape in the state.