Oregon's affordable housing costs draw scrutiny
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Oregon is spending more than the national average to build affordable housing, raising questions about how efficiently the state is using public dollars, according to a new investigation by the Oregon Journalism Project.
Why it matters: Higher construction costs could limit how many affordable homes Oregon can build with its housing budget.
By the numbers: Projects funded by Oregon Housing and Community Services averaged $318 per square foot last year — 31% above the agency's national benchmark, OJP reported.
- The agency has exceeded its own benchmark for three consecutive years.
- It expects to build or renovate nearly 8,000 affordable homes during the current two-year budget cycle.
Zoom in: The costs drew unusual scrutiny during a September meeting of the Oregon Housing Stability Council, which approves state housing investments.
- Council member Ed McNamara, a retired Portland developer, questioned the price of two proposed projects.
- One, a 72-unit development in McMinnville, is expected to cost $413 per square foot to build.
- By comparison, a 168-unit development in Corvallis was budgeted at $173 per square foot.
The other side: State housing officials told OJP that construction costs vary based on location, building design and other requirements, and that imposing strict cost limits could exclude worthwhile projects.
What they're saying: "Every dollar wasted on an overpriced project is housing someone else doesn't get," state Sen. Dick Anderson, a Republican from Lincoln City, told OJP.
The bottom line: Gov. Tina Kotek's office said it expects the housing agency to follow performance benchmarks and spend public money efficiently.