Funds sought to help address OR housing shortage

Groups working to address Oregon’s shortage of affordable housing are backing a bill to fund the state’s Homeownership Development Incubator Program.

Originally launched by the state in 2022, the program funds developers who build housing for low- to moderate-income families.

Katie Curry, executive director of McMinnville Area Habitat for Humanity, one of eight projects awarded the first round of funds, said the money helped them ramp up housing construction.

“We’re just able to build at a much quicker pace and offer these homeownership opportunities for people in our community,” Curry explained. “It’s been a game changer.”

Funds are available both for nonprofit and for-profit organizations, and also for tribes and private developers. The homes must be priced based on the area’s median income. The state is seeking $50 million to fund the program again and the bill is now in committee in Salem.

Research shows rapid population growth, housing underproduction and pandemic-driven costs have all made Oregon’s housing shortage worse, with home prices far outpacing wages.

Curry pointed out the average household income in McMinnville is a little over $65,000 but would need to be more than double that in order to afford a typical home in the area. State and local governments recognize it is a serious issue in Oregon, Curry added. The question is how to address it.

“The HDIP allows for a lot of really flexible and innovative ways to get more inventory of affordable housing,” Curry emphasized.

According to Oregon Housing and Community Services, things may be looking up. A slowing population growth rate, coupled with a strong residential construction sector, will help address the affordable housing shortage. The state needs to build 500,000 housing units over the next two decades to meet the need.

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