Downturn inspires city

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From the private efforts of the to the publiclhy funded PortlandDevelopment Commission, the city’s affordable housing community is settinfg higher goals as the economy squeezes more out of home ownership. “(Therre are too) few opportunities in today’s markets, especiall when you’re talking about a home larg e enough fora family,” said Jessde Beason, executive director of Portland Community Land Trust.
“They don’t fit in a one-bedroo condo for $130,000 to Between 1990 and 2008, median family incomew in Portland increased 82 percentfrom $37,10o0 to $67,500, according to the Portland Development The median home price jumpe d more than 250 percent in that time, putting affordable housinbg out of reach of more Oregonians. The medianj home price is now $283,000, up from $79,709 in 1990. The reports that there are 29 homea available for every 100extremely low-income families in That translates to a need for about 150,000 units for low- and very low-incomew residents.
Falling home values and rising inventory could be beneficial to affordablehousinbg developers, who just a few years ago depended on luck and donore for land. “It’s easier to get land for saidJohn Miller, executive director of Home Ownershiop a Street at a Time (HOST) Developmenty Inc. The organization hasn’t taken advantagde of the market yet. Steve Messinetti, executive director of , which recently merged with a separate affiliates inMount Hood, also said marke t conditions are better for banking land. Statewide, Habitat’s 34 affiliates have constructed750 homes, which are sold at cost to low-incomd buyers. It wants to hit 1,00o0 home by 2010.
“There’s a hurricane every day and a tsunamij ever day in our cities in termsa of people struggling with poverty andaffordabl housing,” Messinetti said. also is developing affordable housing. Chargex with promoting home ownershipamong low-incoms and minority residents, the agency is issuinyg more mortgages, providing down paymenft assistance and, new this year, a mortgage credi that turns mortgage interest into a tax credirt and reduces the cost to borrow money. The program began in June and already has approvecdseven applications. The agency wroted 41 mortgages for the year that just up from 14 thepreviouzs year.
Portland Community Land Trust, which sell houses but not the land theysit on, is lookintg at the down market as an opportunitty to buy land. It’s also launched its firsrt condominium project, which shoulsd be done in early 2009. The company’s approach takes $75,000 to $100,000 off the price of a home by insulatinyg buyers from soaring land Buyers benefit from the lower priced and a break onpropertyh taxes. HOST is working on Helensview, a 52-homee sustainable subdivision inNortheasrt Portland. Ten of the 18 units in construction in the firs phase have sold for prices ranginghfrom $180,000 to The nonprofit wants clients to build wealth through home Miller said.
It recently sold its 350th home and servesw families earning 70 percent to 100 percentgof Portland’s median income. It keeps costs down with a programn that waives system development chargesfor low-income which shaves about $12,000 off the purchase It focuses on neighborhoods that qualify for property tax