City partnership to save largest affordable housing complex in Salem
A partnership between the city and a real estate investment company is set to preserve northeast Salem's Orchard Park Apartments — Oregon's largest affordable housing complex outside the greater Portland area.
City officials said the 224-unit building at 4100 Kacey Circle NE is set to become the "latest beacon of hope" for low-income households earning 80% or less of the median area income.
In 2021, a fire at Orchard Park affected 21 units. Construction work is set to begin on these units and is expected to be completed this fall. Residents have continued to live in the other units, but potential rent increases loomed when the affordable housing complex reached the end of its 30-year affordability term in December 2021.
The complex had begun converting rents away from low-income rates to market rates.
Recognizing the property's value to the community, Salem Housing Authority prioritized its preservation by establishing a special limited partnership agreement with Orchard Park Preservation Partners. The partnership with real estate investment company Aberdeen Capital ensures the apartments will continue to serve low-income households.
"We are thrilled that this project will restore all 224 units to affordable housing," said Jessica Blakely, assistant housing administrator at Salem Housing Authority. "This will provide much-needed stability to current residents who may have been concerned about potential rent increases."
She said the term ensures affordable rates for 60 years, after which the project comes up for renewal and Salem Housing Authority has the first right of refusal.
Orchard Park Apartments, located in a residential neighborhood near Interstate 5 and Portland Road, has a pool, fitness center and playground and offers one-, two- and three-bedroom apartments.
The project had been made possible through funding from Oregon Housing and Community Services, the Enterprise Preservation Fund, Deutsche Bank and Aberdeen Capital.
The project did not require any direct city funds. According to city documents, the partnership will provide the development with full property tax exemption. Salem Housing Authority will be compensated for its role in this partnership through an annual fee to cover the costs of program oversight.
In a report to Salem City Council on July 10, Nicole Utz, housing administrator for Salem Housing Authority, said the project exemplified the housing authority's commitment to expanding public/private partnerships to address the critical need for affordable housing in Salem.
Salem Housing Authority, which is comprised of city councilors, voted unanimously to approve a resolution to authorize entering into the partnership.
Following the announcement, Mayor Chris Hoy said he couldn't have been happier to see the partnership come to fruition.
"This is why I ran for mayor," Hoy said after the announcement. "It’s days like today that make it all worth it. Today, we got to help 224 families stay in their homes."
Prospective tenants interested in leasing can contact Orchard Park at orchardparkapts@cirrusami.com.
More information on Salem Housing Authority's projects, including Orchard Park and the upcoming Sequoia Crossings development, can be found at salemhousingor.com.
For questions, comments and news tips, email reporter Whitney Woodworth at wmwoodworth@statesmanjournal.com, call 503-910-6616 or follow on Twitter at @wmwoodworth
This article originally appeared on Salem Statesman Journal: City partnership to save largest affordable housing complex in Salem
