Sunday, July 5, 2015

Projected $184 Million in Long Term Federal Committments Get 40 More Years of Affordable Housing for the Largest HUD Insured Senior Project in Oregon.

Project is Westmoreland's Union Manor in SE Portland. 

Oregonian story is HERE and the (Portland) Housing Development Center press release is HERE.

Full Disclosure: Housing Development Center is consultant to sponsor, Union Labor Retirement Center; I am a HDC Board member.

Key points, Westmoreland's Union Manor rehab:

This is the largest HUD insured senior assisted project in Oregon. It was initially insured in 1965; the adjacent Oregonian advertisement was from June 1967.

Using only state and federal funds the project required no additional City of Portland subsidy, a significant cost avoidance. [Property is tax exempt].

Westmoreland is only 1 of 12 projects in the country that got in on the first round of HUD SPRAC funding. SPRAC funding added 67 units of assisted housing to the 217 project based Section 8 units so 284 of the 300 units will now be HUD assisted. (and available to tenants with very low incomes).

Westmoreland's is receiving significant system upgrades including energy and seismic upgrades, as well as ADA retrofits for several units. Phased tenant moves while construction is underway will be fully paid by the project.

Westmoreland's received $14.7 M in 4% [federal] low income housing tax credits awarded by Oregon Housing and Community Services , and a $25.9 M FHA insured multfamily loan. (OHCS is also providing a $29.4 million construction loan).

Adding the value of the FHA loan ($25.9 M), federal LIHTC's ($14.7 M) and the projected 40 year value of HUD rent subsidies ($144 M, using a 2% annual rent inflation factor), the total 40 year federal funding commitment to Westmoreland's Union Manor is projected at $184+ million.

BIG congrats to Union Labor Retirement Association, Oregon Housing and Community Services, ACRE Capital LLC, the Portland HUD Multifamily Program Center, the Portland Housing Bureau , the Housing Investment Trust of the AFL-CIO,  J.P Morgan Chase and PNC Financial Services Group [the tax credit investors], Walsh Construction, and the Housing Development Center for working through complex issues over a 2+ year period to get this project underway. 

[Prior posts detail the living wage jobs and the number of construction jobs created by this project].

Originally created and posted on the Oregon Housing Blog.

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