OHCS has several ways to support owners of existing affordable multifamily properties, or an entity acquiring such a property.
There are different ways that OHCS assists in preserving affordable housing. For example, one preservation opportunity may include extending the affordability of developments with expiring program restrictions, such as in the Low-Income Housing Tax Credit program. Preserving affordable housing is especially important for stabilizing rents at an affordable rate and ensuring property well-maintained and up-to date.
Preservation funding categories
For 2024, $60 million is available to preserve affordable multifamily rental housing and manufactured parks. The available funding for 2024 is categorized as follows:
Physical and Financial risk of loss: $30 million
This funding is to help rehabilitate affordable multifamily properties at risk of losing affordability. OHCS will also consider financial restructuring and recapitalization efforts to address operational issues that may threaten the loss of affordability. OHCS does not expect to fund acquisition costs in this category.
Portfolio stabilization in cases of imminent risk of loss: $10 million
As an example, this could refer to any property on an OHCS Property Improvement Plan and used to help stabilize a property portfolio. This would not necessitate a full rehabilitation but would assist properties with access to a more sustainable financial pathway, and potentially aid in future rehabilitation or recapitalization requirements. There is no developer fee provided for portfolio stabilization projects as it is intended to be act like a short-term rescue operation to help property portfolios become more financially sustainable.
Properties with federal project-based rent assistance at risk of loss: $10 million
Acquisition of multifamily projects to preserve federal project-based rent assistance. This can include necessary rehab after acquisition.
Manufactured Park Preservation: $10 million
Acquisition of manufactured home parks to preserve long-term affordability (either by a resident cooperative or a nonprofit organization). This can include addressing deferred maintenance of park infrastructure.
Generally, "risk of loss" categories imply that a property has urgent repair needs or suffering operational losses that can't be addressed through existing reserves or cash flow, and those challenges threaten the housing stability and/or health and well-being of tenants. "At-risk" under these categories generally indicates a property cannot wait two years for funding. The main goal of preservation funds is to prevent affordable housing from turning into market-rate housing so that rents remain affordable for tenants.
Eligibility
Eligible applicants include:
- Nonprofits
- Private companies
- Government organizations including public housing authorities and Tribal Nation housing agencies.
- Residents of a manufactured home park may apply as a resident cooperative to acquire and preserve their manufactured park.
Important note for applicants: Applicants may not submit a scattered site application or one application for multiple properties during the 2024 ORCA round.
How to apply for funding
To apply for funding, applicants will need to submit an
Oregon Centralized Application (ORCA). Because demand for preservation resources is expected to exceed available funding, OHCS has developed the following approach within the ORCA Impact Assessment step to prioritize which projects in each of the two “at risk” preservation categories will be recommended for a soft commitment and move to Financial Eligibility soonest.
- At regular intervals, OHCS will review newly received applications for each of the two “at risk” categories and add them to the ranked list of projects divided into critical, high, or medium priorities under each category. The criteria and evaluation process are described in more detail below.
- These priority lists define OHCS’ immediate funding priorities. Projects at the top of each At Risk list will receive a conditional hold for resources and move to Financial Eligibility once they’ve met all other ORCA evaluation standards.
- The lists also set out longer-term intentions and priorities: Any projects ranked during Impact Assessment but NOT advancing to Financial Eligibility will remain on the ranked list and will be considered relative to remaining projects and available funding as the ORCA process continues.
- Projects still unfunded but ranked when funds are exhausted will form the initial ranked list for the next ORCA cycle. Projects stay on the ranked lists until funded, the sponsor requests that they’re removed, or there is some other material change that requires re-considering their status.
- High-priority properties will be eligible for funding once all projects on the critical list have been addressed. Projects under the medium priority will be considered after high-priority projects have been addressed, as resources allow.
- If your project is not funded in an ORCA round and has not changed significantly, you can keep your current application without having to start from scratch in future funding rounds.
Aside from this prioritization process, the ORCA Impact Assessment step is substantially identical to the process for other applicants. Once we confirm prioritized projects meet all evaluation standards to complete the Impact Assessment step, sponsors will be issued a Letter of Intent and invited to submit materials required for Financial Eligibility.
Important note for applicants: Capital Needs Assessment (CNA) will be required until the Financial Eligibility step.
Owners of eligible projects are encouraged to apply, even if they are unsure whether they will be funded this year. Part of the new approach to establishing preservation priorities is building a list of specific projects that illustrates the need for more funding, while assisting the agency plan with a more complete dataset.
More information
Preservation funding framework
Preservation dashboard
Affordable housing preservation