Oregon Housing and Community Services commits $39 million to preserve 30 affordable housing properties

With the approval of funding for the Yards at Union Station C in Portland at Friday's Housing Stability Council meeting, Oregon Housing and Community Services (OHCS) fully allocated its Property Stabilization Investments (PSI) program, delivering more than $38 million to stabilize 30 affordable rental housing properties across the state-in Gresham, Eugene, Hillsboro, Brookings, Springfield, Milton-Freewater, and Portland.

In the 2025 legislative session, the Oregon legislature allocated over $50 million in lottery bonds for affordable housing preservation, including the growing and urgent need for stabilization. The need is not unique to Oregon as states across the county are seeing affordable properties struggle with rising costs, aging buildings, and operating challenges that threaten long-term affordability. OHCS structured PSI to move quickly, ensuring funding reached properties most at risk, and holding recipients accountable for measurable progress. $35 million of the allocation was coupled with other funding to devote $39 million to meet the immediate demand for stabilization, with the balance of the new funding made available for preservation projects to rehabilitate affordable rental housing.

The agency notified affordable housing owners and operators beforehand when PSI resources would be available. This helped ensure property owners and organizations prepare for the first-come, first-served application process. When the application opened in early October, interest surged. The agency received a total of 43 completed PSI applications, requesting more than $55 million - significantly exceeding the available $39 million and demonstrating the scale of the statewide stabilization need. OHCS prioritized properties at greatest risk of affordability loss and made funding decisions within 60 days of each completed application.

The full $39 million allocated has now been awarded to 30 projects. As loans begin to close, OHCS is implementing strong accountability measures. Award recipients must commit to strategies that address key issues such as high vacancies and security concerns, and they are required to submit quarterly reports showing progress on occupancy, financial performance, and other indicators of improved property stability and tenant experience.

Preserving affordable homes ensures housing affordability and stability for current and new affordable housing residents. It's also more cost effective to preserve existing affordable housing than to construct new housing. OHCS has updated its preservation dashboard which provides transparency on the affordable housing preservation work and need throughout Oregon.

OHCS' PSI program was also highlighted in the National Housing Trust's report, "Affordable Housing Stabilization Funds," recognizing Oregon as a national leader in developing tools to preserve at risk affordable housing.

About Oregon Housing and Community Services (OHCS)

OHCS is Oregon's housing finance agency. The state agency provides financial and program support to create and preserve opportunities for quality, affordable housing for Oregonians of low and moderate income. OHCS administers programs that provide housing stabilization. OHCS delivers these programs primarily through grants, contracts, and loan agreements with local partners and community-based providers. For more information, please visit: oregon.gov/ohcs.

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