3 City of Portland and Metro Funded New Rental Projects Per Unit Average Funding at $472K, Up $63K/15% from Previous Estimates.

The Portland Housing Bureau recently posted HUD required environmental notices in the Oregonian for 3 new construction  non profit owned rental projects that are funded by Metro Housing Bond funds. 

In reviewing the "total funding" amounts in these projects I noticed that they were higher than prior funding estimates. 

The table below shows the affordability levels, the count of units, and the funding totals published in the public notices and in prior City of Portland project summaries. 

The table pasted below shows that 

• Total funding is now estimated at $180 million, a $24 million increase from the previous estimate of $156 million. 
• Average per unit funding increased by $63K/15% from $409K to $472K.

Additional Annual On Going Subsidies: $3.16 Million. 

These three projects also have a total of 131 permanently supportive housing units and 142 HUD project based housing vouchers. 

At an estimated $10,000 annually for both supportive services and housing vouchers that would mean an annual on going subsidy cost of $2.73 million. (131 PSH units x $10K+ 142 project based voucher units X $10K= $2.73 million)

Because these properties are owned by non profits they will likely receive property tax exemptions. The most recent City of Portland report on property tax exemptions shows an average per unit tax exemption for non profits at  $1,145. 

So for the 381 total units (all units are tax exempt) that would add an additional $436K annual subsidy. 

Combining the PSH services, HUD project based vouchers, and property tax exemptions brings the total additional annual subsidy to $3.16 million.

Originally created and posted on the Oregon Housing Blog.