The Housing Development Grant Program (HDGP) “Trust Fund” was created to expand Oregon’s housing supply for low- and very low-income families and individuals. HDGP is designed to provide grants to construct new housing, acquire and/or rehabilitate existing structures, or operate housing for low-income households living in multifamily rental housing.
Funding requirements
HDGP came out of the 2009 legislative session. It is
funded through the public purpose charges and are required to be deployed as
grants.
Preference will be given to projects with resident services geared towards the needs of the residents (i.e. daycare, job counseling, emergency assistance, finance management). HDGP dollars are allocated throughout Oregon based on regional unmet needs.
HDGP funds may be taken as a grant or low-interest loan with flexible terms, as requested by the awardee.
If the funds are requested as a loan, the interest rate begins at 0% and may be as high as the U.S. Treasury Long-Term Obligation rate. Repayment is due as a balloon payment between year 30 and year 60. OHCS reserves the right to approve loan terms at the agency’s sole discretion.
Affordability requirements
75% of annually allocated HDGP funding is reserved for housing serving very low-income residents. These households earn 50% of the area median income (AMI) or below as determined by the US Department of Housing and Urban Development (HUD).
The remaining 15% of annual funds may be given to housing that serves residents earning 80% AMI or lower. The project will be restricted to serve at this affordability level for 60 years. Annual compliance reporting will be required to ensure affordability requirements are being met.
Eligibility
- Nonprofits
- Housing authorities
- Local governments
- Manufactured dwelling park cooperatives
- Private companies
- Federally recognized Tribal Nations
- Individual developers
How to apply
Applications for HDGP funding are accepted through the Oregon Centralized Application (ORCA) process. This is an open application and may be applied for as long as enough funding is available.
Funding is refreshed on a biennial basis. The maximum award amount is $500,000 per development project. Applicants are encouraged to leverage grant dollars with other public and private funds.
More information
HDGP Manual (pdf)