Oregon Housing and Community Services

1. Oregon Housing and Community Services What we do matters! Seizing the Day in a Pro-Preservation Environment October 2009

2. Seizing the Day in a Pro-Preservation Environment

3. Background • Oregon currently provides approximately 9,900 units of Section 8 “project-based” housing to over 30,000 Oregonians. • Oregon’s Rural Development project-based portfolio consists of more than 4,600 units across the state. • Between the period of 2007 and 2013, Oregon estimates that approximately 8,000 total units of project-based housing was at risk due to expiring federal contracts. • Beginning in 2007, Oregon Housing and Community Services began a comprehensive strategy to preserve project-based housing in Oregon.

4. Key Elements of Oregon’s Preservation Strategy • Coordination and Planning • Data and Information • Outreach and Communication • Resources Conifer Gardens in Medford A rehabilitation project that generates income in the local community while providing much needed housing for seniors.

5. Coordination and Planning • Created partnership with Network of Oregon Affordable Housing. • Through partnership, created a preservation council to: • Identify, discuss and recommend key policies. • Develop resource strategies and proposals. • Identify and remove barriers to preservation. • Developed improved communication channels with local HUD office and identified solutions to regulation issues. • Established working group of housing preservation practitioners in areas of underwriting, housing rehabilitation and architecture to identify and develop best practices.

6. Data and Information • Developed statewide database to provide information on specific projects at risk of expiring • Created comprehensive preservation overview to provide to decision makers in seeking support for resources. • Developed methodologies that identified replacement costs of at-risk housing, federal subsidies to be retained, and economic benefits of preservation.

7. Outreach and Communication • In collaboration with HUD, contacted all Section 8 housing project owners to educate them about preservation opportunities. • Developed postcards to be sent to potential affordable housing owners on preservation opportunities. • Reached out to federal delegation to seek opportunities to support further preservation in Oregon (i.e. – use of residual receipts). • Provided training and technical assistance to housing developers in financing preservation projects.

8. Resources • Developed a short-term and long-term approach to providing resources for preservation. • In 2008, launched a short-term approach by creating a public/private partnership that has leveraged approximately $32.7 million in funding from state, banks, and private foundations. • Short-term approach provides three to four year very low interest rate loans to partners for the immediate purchase of preservation properties. • To date, the short-term approach has protected seven projects with 287 units of housing that will be preserved for the long term.

9. Resources (continued) Developed a long-term approach which includes: • Generating $24.3 million in Legislative support over the last three years. • Addition of $4 million in Oregon Affordable Housing Tax Credits, equating to nearly $100 million in very low interest rate loans for preservation. • Dedicated revenues from a new document recording fee estimated to bring $15 million in the next two years.

10. Resources (continued) • Since January 2008, OHCS and its partners have preserved 1,013 units and targeted nearly 1,600 units for preservation in the next two years. • By the end of 2013, OHCS estimates it will preserve 5,484 units of housing. Questions?

11. 725 Summer St. NE, Suite B Salem, OR 97301 503-986-2000 info@hcs.state.or.us Oregon Housing and Community Services What we do matters!