Allen Fremont Plaza Provides Affordable Housing in a Gentrifying Community
When GBC Inc. decided to sell the Allen Fremont Plaza Apartments, an attractive 64-unit affordable housing development in Northeast Portland, they looked for a purchaser who they could count on to keep the rents affordable for the seniors who resided in the building. GBC selected REACH Community Development, Inc. as the future owner. REACH is a large nonprofit affordable housing developer and owner in the Portland metro area, with a strong track record of providing quality housing and services to residents.
In 2015, NOAH provided an acquisition loan to REACH to purchase the building. REACH made property upgrades, enhanced operations, and obtained rental assistance for 30 of the units. Once the building was stabilized, they approached NOAH for the permanent financing. In July 2017 NOAH provided a permanent loan in the amount of $2.4 million to REACH.
Offering one-bedroom apartments, this building is conveniently located near shopping and transit and services. There is an outdoor patio on the south side of the building and a parking lot with 27 spaces. A tenant storage room is located on each floor, with a total of 82 small storage lockers. The Allen Fremont Plaza is a valuable resource in this community providing affordable homes to long-time residents of the area.
A Team Effort Preserves Two Rivers Homeowners Cooperative
With 142 spaces for manufactured homes, and an ideal location in Gladstone, Oregon, the Two Rivers Homeowners Cooperative (formerly known as the Gladstone Mobile Home Park) is an oasis of affordability in a sea of escalating home prices. Built in 1962 on 12 acres, the park provides affordable home ownership to residents age 55 and older. Amenities include a recreation building, laundry facility and two community gardens.
When the park owner received an unsolicited bid to buy the park from an out-of-state entity at a price that would have likely resulted in pad rent increases, residents, who were notified under Opportunity to Purchase legislation, reached out to CASA of Oregon for assistance. CASA is a ROC USA certified technical assistance provider. They specialize in providing financial and technical assistance to residents of parks, and help organize resident cooperatives that take on park ownership.
CASA helped the cooperative identify and assemble the necessary financing for the acquisition. NOAH provided a $2 million gap loan and a $6 million acquisition loan. RCAC, a national organization dedicated to creating vibrant, healthy and enduring communities, participated in the acquisition loan with $3 million of capital. CASA provided a $1.5 million loan to complete the financing package. With the acquisition in hand, the cooperative will now work with CASA to secure permanent financing for the park.
Shoreview Meadows Homeowners Secure Their Future
Oregon’s red hot real estate market can make manufactured home parks vulnerable to sales that result in either redevelopment or sharp increases in pad rent. When the owner of the Shoreview Meadows Cooperative (formerly Dorena Lake Mobile Home Park) decided to sell, he approached residents and CASA of Oregon to see if resident ownership would be a viable option. CASA worked with the residents to form a cooperative and with NOAH to obtain financing.
The 23 space, all-age park, was secured by the cooperative with a $947,000 permanent loan from NOAH and $805,000 from Oregon Housing and Community Services. The park was built in 1973 on 6.2 acres in a lovely setting near Dorena Lake in Cottage Grove.
Capital Campaign a Success
Many thanks to the 12 banks who stepped up to invest in NOAH’s $25 million capital campaign. To date, $24.2 million in new bank capital has been committed to financing the acquisition, preservation and development of housing for families with low and moderate incomes. NOAH launched a capital campaign last summer to grow its impact and produce more affordable housing units.
Current members of NOAH’s banking consortium that participated in the campaign are: Banner Bank ($818,000), Bank of the Cascades ($470,000), Columbia Bank ($2,000,000), Heritage Bank ($400,000), Pacific Continental Bank ($1,500,000), Riverview Community Bank ($277,000), The Commerce Bank ($750,000), Umpqua Bank ($5,000,000), US Bank ($3,000,000), and Wells Fargo Bank ($3,000,000). Two new banks joined NOAH’s consortium: Beneficial State Bank ($5,000,000) and Northwest Bank ($2,000,000).
In addition to raising bank capital, NOAH is also working to increase lower-cost, non-bank capital that will leverage bank dollars. To date NOAH has raised another $650,000 with $500,000 coming from The Collins Foundation and $150,000 from The Seton Enablement Fund ($150,000). These funds are targeted to our manufactured home park financing.
NOAH is grateful for this support at a time when our work is needed more than ever to address the housing crisis in Oregon.
Manufactured Housing Work Advances
NOAH’s work to advance manufactured housing as a viable affordable housing resource for Oregonians is hitting its stride. Beginning last April, 13 individuals from 12 Oregon nonprofit and public agencies have been engaged in a peer learning program with a goal of raising the bar of professional practice in this area. Working with consultants Charlie Baum of Starting Point and Stan Biles of Management Solutions, participants are tackling a range of issues including financing park acquisitions, developing new parks, improving energy efficiency and infrastructure and addressing regulatory and land use issues.
NOAH is also hosting a convening on Manufactured Housing Best Practices and Policy on August 9th. The convening is co-sponsored by Oregon Housing and Community Services and Prosperity Now, a national organization dedicated to helping people achieve financial security and stability. For more information about the meeting, click here.
NOAH Provides Important Testimony
For the past several months, NOAH’s staff has worked closely with the Oregon Housing Alliance to provide testimony at the Oregon legislature regarding housing needs and solutions. The end of the session brought good news for several proposed housing bills:
- The Oregon Affordable Housing Tax Credit, a tool that NOAH uses extensively to fund the development and preservation of affordable housing, was extended to 2026 and increased to $25 million.
- A bill to fund the preservation of affordable housing, another priority of NOAH’s, appropriated $25 million in lottery-backed bonds for that purpose.
Additional legislative successes can be found on the Alliance website. The passage of these bills results in more resources to meet the housing needs in the state. Many thanks to the advocates and the legislators who supported this legislation.