Oregon Housing and Community Services (OHCS) has announced plans to auction 140 modular homes that were found to be uninhabitable due to defects. The homes were initially purchased in 2021 to help rebuild the Royal Oaks Mobile Manor in Phoenix, which was devastated by the 2020 Almeda Fire. Survivors of the fire were prioritized for the housing program, with the goal of providing new homes to families who lost everything. However, the project has faced significant setbacks, resulting in the state opting to auction the defective homes.
The modular homes were discovered to have serious issues last summer, including mold, water leaks, and other structural defects, making them unsuitable for occupancy. The exact cause of these problems remains under investigation, raising concerns about the manufacturing process and handling of the homes before installation. OHCS initially planned to repair the homes with a new manufacturer but later decided to replace them entirely. The state’s housing agency is now aiming to recoup part of the $24 million spent on the project through the auctions.
Caleb Yant, deputy director of OHCS, stated that prospective buyers will be informed about the condition of the homes prior to purchase. The auctions, which are being coordinated with the Department of Administrative Services (DAS) Surplus and a third-party platform called GovDeals, will begin on October 29. The first two-week auction will feature 33 homes stored in Medford, followed by a second auction on November 7, with 35 additional homes available. The remaining 72 homes, currently held by the manufacturer Nashua Builders in Boise, Idaho, will be transported to Oregon for a spring 2025 auction.
The original plan aimed for wildfire survivors to move into the new modular homes by September 2023. However, ongoing issues have pushed back the estimated move-in date to April 2025. OHCS has contracted a new manufacturer to build replacement homes for Royal Oaks, which are currently under production.
Legal proceedings involving OHCS and the Oregon Department of Justice are ongoing to determine the root cause of the defects. While some have speculated that improper storage and delays in finding a suitable installation site may have contributed to the problems, OHCS maintains that the defects were due to manufacturing errors rather than any neglect on the state’s part.
The auction serves as one of several strategies the housing agency is pursuing to recover funds from the failed project. Questions about oversight, quality control, and accountability have surfaced, with some officials expressing concerns over how the situation was managed. The state is taking steps to prevent a similar outcome in the future, as the replacement homes undergo a more rigorous inspection process to ensure they meet quality standards.
For Josephine County, the situation highlights the importance of diligent checks and balances, especially when taxpayer money is involved. Local leaders have expressed concern over the potential for similar issues if careful oversight is not maintained in public housing projects. As OHCS moves forward with the auctions and litigation, the incident serves as a reminder of the challenges and risks associated with large-scale housing initiatives aimed at disaster recovery.