Commonwealth Development Corporation and WNC & Associates have teamed up to build Pacific Flats, an all-new affordable housing community in Phoenix, Oregon. The property will include five three-story residential buildings comprised of 72 family LIHTC units.
The property will include a separate clubhouse building with amenities including a fitness center, business center, and community room. Energy-efficient building design features will include high-efficiency windows and ENERGY STAR rated appliances and building mechanical equipment. Eight units will be reserved for families at 30% of area median income (AMI), 20 units at 50% AMI, and 44 units at 60% AMI.
Pacific Flats will play a key role in providing affordable housing units in a community with an acute need as it continues to recover from the damage caused by the Almeda Fire in 2020. The Almeda Fire destroyed more than 2,800 structures in Phoenix and the southern adjacent neighboring cities of Talent and Ashland, OR. An estimated 2,500 homes were lost, displacing residents into a limited number of available temporary housing units (i.e., RV units, manufactured homes, or transitional housing units) or outside the region.
“Demand for rental units within this market remains significant, as all LIHTC properties in the region are fully occupied with waiting lists ranging from three months to over five years,” said Darrick Metz, Senior Vice President of Originations at WNC. “This statistic, combined with the destruction of homes from the Almeda Fire, highlights the need for more affordable housing options in the region.”
In an additional effort to ensure that the project serves the local population authentically, Commonwealth Development Corporation has partnered with Native of One Wind Indigenous Alliance Unete (“NOWIA Unete”), a local organization focused on serving the needs of local indigenous and immigrant farmers, to develop Pacific Flats.
WNC’s total investment is approximately $25.1M. The deal was structured with 4% LIHTC Equity, a construction and perm loan through Legacy Bank, a $13.5M soft loan using LIFT funds, and a $170K soft loan using OHCS MEP funds.
