Tuesday, June 12, 2018

Wheeler Defends High Price of New Affordable Housing Bond Purchase

Portland Mayor Ted Wheeler announced last week that the city intends to purchase a nearly completed development at E 105th & Burnside using money from the affordable housing bond passed in 2016. The $14.3 million price tag works out to approximately $280,000 per door for the 51 unit building. Mayor Wheeler argues that the city is willing to pay more to purchase and develop affordable housing built with high-quality materials, but developers including Rob Justus of Home First Development are pushing back on that claim. According to Justus, the city assumes that their buildings will never require work, but all buildings require maintenance every 20 years or so. Since 2017, only three multifamily properties in the eastern portion of Multnomah County sold for over $200,000 per door. Two of those properties were originally built as condos, and all three included larger townhome units. The highest price per door was just under $236,000 for a converted condo building completed in 2000 and sold in 2018. Read more.