TO: Chair and Housing Authority Commissioners
THROUGH: Krishna Namburi, Executive Director
FROM: Nicole Utz, Director of Housing
SUBJECT:
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Glen Creek Floodway Parcel Disposition - Authorization to submit HUD Section 18 Disposition Application - Land Only
Ward(s): All Wards
Commissioners(s): All Commissioners
Neighborhood(s): All Neighborhoods
Result Area(s): Welcome and Livable Neighborhood
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SUMMARY:
summary
The Salem Housing Authority (SHA) is seeking approval to submit a Section 18 application to HUD to dispose of a 1.473-acre floodway parcel at Glen Creek Village Apartments. The parcel contains no housing units or buildings and is considered unsuitable for redevelopment because it lies within a mapped floodway.
This action is considered Phase 1 of a larger repositioning strategy. After removing the constrained floodway parcel, SHA plans to pursue a future RAD/Section 18 Blend redevelopment strategy for the remaining property, subject to separate approvals from both the Board and HUD.
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ISSUE:
Shall SHA Commission adopt Resolution No. 2324 authorizing the SHA to submit a Section 18 disposition application to HUD to dispose of a vacant parcel located in the mapped floodway area associated with Glen Creek Village Apartments, and authorize the Director of Housing (or designee) to execute all related certifications?
RECOMMENDATION:
recommendation
Adopt Resolution No. 2324 authorizing the SHA to submit a Section 18 disposition application to HUD to dispose of a vacant parcel located in the mapped floodway area associated with Glen Creek Village Apartments, and authorize the Director of Housing (or designee) to execute all related certifications.
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FACTS AND FINDINGS:
Development and Property Description
Development: Glen Creek Village Apartments / AMP 3 (Development No. OR011203300)
Date of Full Availability (DOFA): 02/27/1975
Total site acreage (development): 7.76 acres
Remaining site acreage after disposition (anticipated): 6.287 acres
Existing improvements (for context): 7 residential buildings; 1 non-residential building; constructed 1971
Proposed disposition (Phase 1): Land only - Floodway Parcel (no units; no buildings).
Estimated value (preliminary): $19,000 based on appraisal summary; appraisal dated 03/2026 by William E. Adams (per draft HUD-52860).
NOTE: Parcel identification: recorded acreage proposed for disposition (1.473 acres), and the legal description will be included in the HUD submission. The remaining development acreage after disposition is anticipated to be 6.287 acres (7.76 total acres less 1.473 acres).
Proposed Action (Phase 1)
SHA will submit a Section 18 disposition application to HUD Special Applications Center (SAC) to remove the Floodway Parcel from public housing use restrictions and dispose of the land through offering it as surplus property. This is a land-only disposition; no public housing dwelling units will be removed as part of Phase 1.
Staff anticipate the following schedule upon HUD approval (subject to change based on HUD review and transaction timing):
Execute contract for removal/disposition: within approximately 120 days after HUD approval
Complete disposition/removal of the property: within approximately 120 days after HUD approval
Resident Impacts / Relocation / TPVs
This is a land-only disposition and is not expected to displace any residents. SHA is not requesting Tenant Protection Vouchers (TPVs) for this Phase 1 action. Relocation activities are not anticipated because no occupied units are proposed for removal.
Consultations and Environmental Review (Status and Next Steps)
Resident consultation and local government consultation are required components of the Section 18 disposition submission package. SHA will provide a narrative description of consultation along with supporting documentation (notices, agendas, sign-in sheets, minutes, and any comments/responses) in the HUD submission.
Environmental Review (ER): SHA will ensure environmental clearance documentation is included with the HUD submission. Per the draft HUD-52860, the ER is conducted by the Responsible Entity under 24 CFR Part 58; the listed RE is the City of Salem, with ER date 10/2022. Staff will confirm the correct clearance documentation and ensure it covers the proposed disposition and any known related actions.
Fiscal Impact
This Commission action authorizes submission of the HUD application and does not, by itself, obligate SHA to a specific disposition contract or conveyance. Near-term costs are expected to include reasonable application/transactional costs (e.g., appraisal, survey/legal, title and recording). If SHA realizes proceeds, staff will propose HUD-eligible uses of net proceeds subject to HUD approval and will return to the Board for any additional approvals required by policy, law, or transaction structure.
BACKGROUND:
SHA is pursuing a phased repositioning strategy for Glen Creek Village Apartments. The first step (Phase 1) is to dispose of a constrained portion of the site that lies within the mapped floodway (the “Floodway Parcel”). The floodway condition limits feasible development and materially impacts the Authority’s ability to reposition the remaining site in a feasible and financeable manner.
After HUD approval and completion of the Floodway Parcel disposition, SHA intends to proceed with a subsequent RAD/Section 18 Blend repositioning strategy for the remaining portion of the asset (Phase 2), subject to separate Board actions and HUD approvals.
Nicole Utz
Director of Housing
Attachments:
1. Resolution No. 2324