Governor Kotek’s Financing Tool Helps Coastal Communities Build 132 Homes for Working Families

Salem, OR - Today, Governor Tina Kotek and the Oregon Housing and Community Services (OHCS) announced that the City of Coos Bay and Tillamook County will soon be able to construct an estimated 132 new housing units through the Moderate-Income Revolving Loan (MIRL) Program - the first local governments to do so. MIRL was created by Governor Kotek to help finance the construction of housing for moderate-income families.

"Hard-working families should have an easier path to finding a home they can afford," Governor Kotek said. "We must work together and use every tool we have to achieve housing affordability for every Oregonian. Thank you to the City of Coos Bay and Tillamook County for blazing the trail on this new loan program."

"Local leaders are the voice of Oregon's cities and towns. They are the level of government closest to the people, and we must equip them with more of the resources they need to continue leading the way in making life better and more affordable for our communities," said OHCS Executive Director Andrea Bell.

MIRL provides zero-interest loans to cities and counties for new housing units that do not have enough financing to start construction. Housing built under this program must be rented or sold to families making less than 120% of the Area Median Income (AMI) during the lifespan of the loan, typically ten years. The loan is repaid through a fee in-lieu of property taxes, allowing the state to repeatedly lend out the funds and drive future housing construction.

Governor Kotek built flexibility into the program to empower city and county leaders to design an approach that best fits the needs of their communities. Cities and counties must first establish a local program and pass an ordinance before entering into a master agreement with OHCS. OHCS created a toolkit and has staff ready to assist local governments in setting up their local program.

"The City of Coos Bay is proud to be among the first communities to implement the Moderate-Income Revolving Loan Program, providing a critical new tool to help bridge financing gaps and make housing projects possible that otherwise wouldn't pencil out," said Nichole Rutherford, City Manager for the City of Coos Bay. "We expect this program to be a game-changer for our city's efforts to encourage housing development. Initially, it unlocks an estimated 50 new units of housing for the working families in our community who need them."

"Tillamook County's master agreement with OHCS unlocks two shovel-ready housing developments. We will be able to build 82 new units that have been stalled without funding," Tillamook County Commissioner Erin Skaar said. "This type of housing simply could not be done financially in Tillamook County without the MIRL program."

The Governor created MIRL as part of her mission to reverse decades of underbuilding and drastically increase the availability and affordability of homes for Oregon families. Senate Bill 1537, the Governor's 2024 housing package, created MIRL and allocated $75 million to the fund. Senate Bill 1537 created a menu of tools to increase housing production, including the Housing Accountability and Production Office (HAPO).

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