TO: Chair and Housing Authority Commissioners
THROUGH: Steve Powers, Executive Director
FROM: Andrew Wilch, Administrator
SUBJECT:
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Application for Local Innovation and Fast Tract Program (“LIFT”) funding from Oregon Housing and Community Services to build and renovate the property located at 4107 Fisher Road NE Salem
Ward(s): All Wards
Commissioners(s): All Commissioners
Neighborhood(s): All Neighborhoods
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ISSUE:
Shall the SHA Commission adopt Resolution No.2223 to authorize application for up to a $1.7 million, no-interest, deferred payment, LIFT loan from Oregon Housing and Community Services to provide affordable housing at 4107 Fisher Road NE Salem?
RECOMMENDATION:
recommendation
Adopt Resolution No.2223 to authorize application for up to a $1.7 million, no-interest, deferred payment, LIFT loan from Oregon Housing and Community Services to provide affordable housing at 4107 Fisher Road NE Salem.
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SUMMARY AND BACKGROUND:
The Salem Housing Authority (SHA) has identified a 19,336 square foot multi-family building located at 4107 Fisher Road NE (Attachment 1) as an affordable site for 38 low-income housing units. The property is currently under contract by SHA.
The property contains a substantially completed multi-unit housing facility that was built to house a senior citizen population in 19 suites on three floors in addition to a full commercial kitchen and first floor flex space. The Property was never occupied.
The building is 80% complete, with the second and third floors in roughed-in condition and ready for finish work. The elevator shaft is in place, but requires installation of the elevator car and mechanicals. SHA plans to complete the finish work and convert the building to 38 single-room occupancy units with one restroom for every two units.
To facilitate the affordable housing, on February 12 the Salem Urban Renewal Agency amended the North Gateway Urban Renewal Area to include the Property, and authorized funding to assist SHA with the acquisition of the Property.
The no-interest, deferred payment loan from Oregon Housing and Community Services will allow SHA to finish the building.
FACTS AND FINDINGS:
This is an opportunity to provide up to thirty-eight (38) additional new housing units to house low income clients. While the LIFT program requires the units to be maintained at least as “affordable” housing for a 20-year period, SHA plans to utilize the Property for low-income residents. In addition, the loan is no interest, payments are deferred for 20 years, and there is no requirement for capital or operating reserves.
LIFT Terms
• 0% interest loan
• No payments required for the first 20 years
• 20 year affordability period required
• At the end of 20 years, balloon payment due in full for amount of loan, 0% interest so only actual amount received would need to be paid back
• Site control mandatory
The Property is within a mile of education, grocery, and medical facilities, and within walking distance to bus lines via walking and bicycle paths along major roadways. An adjacent vacant site at 4075 Portland Road will be acquired by SHA at the same time as the Property. The vacant site will be developed separately from the LIFT loan, through a land bank tool for acquisition of the vacant land.
Andrew Wilch
Administrator
Attachments:
1. Resolution No. 2223
2. Scope of Work
3. Site Map