Affordable housing boom surges $133M into Oregon college town

When complete, The Union on Pacific Highway in Corvallis will offer 174 affordable apartments.

An Oregon college town has transformed into a construction hotspot.

More than 400 units of affordable and supportive housing are on the way in Corvallis — the most ever built at one time in the city’s history, officials say.

After years of what city leaders say were restrictive policies and anti-growth attitudes, the low-income building boom is designed to combat high rents in Corvallis, which is consistently ranked the most rent-burdened city in Oregon, according to state figures. Thirty-seven percent of residents are defined as severely rent-burdened, which means they spend more than 50% of their income on rent.

Paul Bilotta, Corvallis’ community development director, said Oregon State University’s 24,000 undergraduates snatch up apartments near campus and are willing to pay higher rents, exacerbating the housing crisis and leaving little room for low-income families.

“We have employers across the city that are screaming for workers,” said Bilotta. “If you look at the top rent-burdened cities in the state, they are all college communities.”

To help counter the issue, city councilors worked to rezone major parcels of land for high-density uses in 2018 and implemented an affordable housing construction excise tax in 2016, which locally funds the projects.

Three private developers and one local nonprofit are now at work on four projects worth a combined $133 million, with the primary funding coming from state grants, federal tax credits and loans.

Third Street Commons, overseen by the nonprofit Corvallis Housing First, is a planned three-story apartment building offering permanent supportive housing at the site of the former Budget Inn Motel in Southtown off Oregon 99W.

During a tour of the site ahead of a planned demolition next month, Program Director Dan Easdale said the replacement building will use trauma-informed design, with apartments set back away from the street for a sense of security, and no interior hallways, which could seem inhospitable due to a lack of windows.

Easdale said the motel previously served as a temporary shelter with tenants making “a good little community” through shared meals and conversations. The new project, however, will also provide long-term supportive services like counseling and legal help.

“You can live there forever, and we’re going to provide some ongoing support, potentially for the rest of your life if you need,” Easdale said.

Further along Oregon 99, excavators dug at a mound of earth, preparing for the completion of private developer Annex Group’s 174-unit Union at Pacific Highway. This building provides rentals considered affordable to those making only 60% of the area median income. Amenities include a gym, playground and dog wash.

“We take this piece of dirt from the farmland and take it all the way through construction,” said Greg Moynahan, a construction manager at Annex.

The Union has moved in 28 residents so far and plans on welcoming more in early August as the rest of the buildings are finished, Moynahan said.

53rd Flats, another affordable housing development, is complete and already moving residents in. The final complex, Rivergreen Apartments, should wrap up by the end of 2024.

Bilotta said voter-approved annexation, which allowed citizens to approve or veto land being placed within city limits, once hindered development, as voters wanted to keep Corvallis a small town and vetoed some of the proposals. State lawmakers banned voter-approved annexation policies in 2016; Corvallis challenged the ban but lost on appeal in 2020.

According to city officials, the city of Corvallis will be working on a partnership with Benton County — which provides mental health, alcohol and drug services — for future transitional housing development.

“It’s a good start,” said Bilotta, “but there’s still plenty more to do.”

–Chloe Lierheimer, Grant High School

–Chase McMullen, Yamhill-Carlton High School