Oregon legislature provides funding for programs

By Kathleen Ellyn

Wallowa County Chieftain

Legislators are well aware that the state is in the midst of a housing crisis. As a result, they have passed a number of bills to expand existing programs and followed that up with more funding to address the issue.

“The Legislature can do two things,” said State Sen. Bill Hansell, who represents Wallowa County. “We, as the Legislature, need to look for ways to incentivize private sector affordable housing in all parts of the state; and second, we shouldn’t pass laws or polices that disincentivize or make things more difficult for those people who are wanting to build the housing units.”

Wallowa County has a good catalog of “assisted housing,” much under the Oregon Section 8 housing program, which offers qualified beneficiaries lower rental rates each month. However, there is another program for “affordable housing” handled through Oregon Housing and Community Services (OHCS), which the legislature has championed.

“Affordable housing” is basically “rent-controlled” housing available to individuals earning 60 percent of local median income or below, according to Ariel Nelson, government relations and communications liaison for OHCS.

The U.S. Census Bureau reports that in 2011-15 Wallowa County’s household median income was $40,581 meaning households making approximately $24,000 or less would qualify for “affordable housing” if it were available.

The state program’s budget for the 2017-19 biennium was approved by the legislature at $1.1 billion and then the additional money the legislature saw fit to bestow began to roll in.

Another piece of legislation provided for two permanent staffing positions so that the service could maintain a statewide database to monitor publicly supported housing.

Another bill made changes to the definition of “low income households” in the Local Innovation and Fast Track (LIFT) Housing Program so that single-family units could qualify for bonds to support affordable homeownership.

(See related article in this week’s Chieftain).

Funding for the expanded fast track program immediately followed as $80 million was diverted to support it. The legislature approved another $2.5 million to establish an Affordable Housing Land Acquisition Revolving Loan Program within OHCS. This program is modeled after a successful Washington state program, which creates a loan fund that affordable housing developers can tap to purchase and hold land for future development.

Another bill addressed the concerns of landlords with regard to appropriate renters. The bill puts $223,247 in a “rent guarantee fund.” Local partner organizations around the state educate potential renters through programs such as “Ready to Rent,” teaching them how to take ownership of their unit and be a good renter.

Those completing the course receive a certificate proving they have attended the classes. If landlords rent to graduates of the program and they fail as renters, the landlord can access the rent guarantee fund for limited compensation for damage and eviction costs.

Statics provided by the state claim that less than one percent of “Ready to Rent” graduates fail as tenants.

More money –– $25 million in Lottery Bonds –– came to the housing and community service’s coffers to support the “preservation of existing housing,” which means funding is available for affordability contracts that keep rents low and also to provide grants for restoration of federally funded multifamily units.

“That’s a big increase,” Nelson said. “In past sessions we’ve gotten $5 or $10 million so $25 million is a big deal.”

The legislature also assented to renewed and expanded funding for the Oregon Affordable Housing Tax Credit boosting it from $17 million to $25 million. That money is paid to the mortgage lender to help offset the cost of reduced rent (rent control) in both new and “preserved” properties that provide affordable multifamily unit housing.

Oregon Housing and Community Services also received presents in what has been called the “Christmas Tree Bill,” which contains last-minute approvals of unrelated projects. The organization received $1.3 million for the Oregon Foreclosure Avoidance program, which provides counseling and education for Oregonians who are experiencing foreclosure.

In Wallowa County the program is available through Community Connection.

Another $20 million was awarded for the Emergency Housing Assistance and State Homeless Assistance program. Community Services added another $20 million from general funds to the program, bringing the program’s total budget to $40 million.

Another $1.5 million was set aside this past session for veteran’s homelessness in partnership with Oregon Department of Veterans Affairs.

Wallowa County does not have a “local partner organization” to act as a contact point for many of these programs and interested developers, homeowners and landlords may have to rely upon regional contact organizations. Those seeking more information on these programs may contact Nelson directly and be directed to the appropriate partner or department. Ariel Nelson, government relations and communications liason at Oregon Housing and Community Services (OHCS) can be contacted at 503-949-0201.

Oregon homeowners offered grant money

Millions of dollars have already been awarded to communities across the state, several rural, from the The Homeownership Stabilization Initiative. The $95 million program is available for homeowners behind on property taxes or mortgage payments. The initiative, which includes several programs, is run by the state in partnership with local housing nonprofits. In Wallowa County the programs are handled through Community Connection.

The Home Rescue Program is open to individuals who have had their income reduced by at least 10 percent compared to any tax year 2009-2016. This program can provide homeowners with monthly mortgage payments for up to one year with a maximum benefit of $20,000.

The Loan Preservation Assistance program can bring mortgages, past due property taxes and reverse mortgage accounts current with a maximum benefit of $40,000.

Funding for the initiative is provided by the U. S. Treasury’s Hardest Hit Fund, which allocated $220 million to Oregon in 2010 and an additional $94.5 million in 2016 for the administration of foreclosure prevention programs. To date, the initiative has provided more than $230 million in assistance to more than 12,000 homeowners.

Info: Homeowner.Help@oregon.gov or by phone at 503-986-2025.

Oregon LIFT program available in Wallowa County

Part of the solution to the housing crisis in Wallowa County is state and federal agencies. One assistance program is the Local Innovation and Fast Track Housing program managed by Oregon Housing and Community Services. The program began when Oregon Legislature committed $40 million of general obligation bonds to fund the program in 2015. In July of 2017, the Oregon Legislature allocated an additional $80 million.

A primary goal of the program is to serve rural communities with less than 25,000 people and to do so as quickly as possible. Projects requesting $38,000 per unit or less receive priority consideration and both traditional and alternative construction is allowed. All newly constructed units must be available for those earning 60 percent below the area median income at the time of initial lease. However, tenants may stay in their unit regardless of future income and potential tenants with higher income may rent if space is available.

LIFT awarded over $39 million to 12 programs in 2016.

• Two 50-unit apartment buildings in Central Point and White City.

• The renovation of 21 units at Fisterra Gardens Townhomes in Yachats to provide workforce housing for employees in the local tourist economy.

• A new 42-unit multifamily housing project in La Pine called La Pine Townhomes.

The first project was a 180-unit apartment complex in Salem that includes a community center housing a mini health clinic, adult English literacy education and GED preparation, among others.