Colonia Paz II
DEVELOPMENT SCOPE
New construction of 116 affordable homes that serve farmworker and workforce families in Lebanon and surrounding Linn County, Oregon.
PROJECT OVERVIEW
Farmworker Housing Development Corporation (FHDC) develops farmworker leadership for stronger and more secure families and communities through affordable housing, social services, education, and economic development. Located in the rural community of Lebanon, Oregon, FHDC’s Colonia Paz II provides affordable housing and culturally responsive services to a mix of resident populations: current farmworkers, former farmworkers who have moved on to other employment, and the local Lebanon workforce.
Colonia Paz II sits adjacent to Colonia Paz I, a 24-unit FHDC housing community that opened to residents in 2022. At both properties, residents have access to a broad spectrum of services to ensure they stay stably housed and meet their needs. Services range from after-school activities and homework support programs for youth to workforce training and financial literacy classes for adults.
Creative Solutions
FHDC originally planned to build out the Colonia Paz I/Colonia Paz II site in three phases. But to compete successfully for financing, the project team consolidated the second and third phases into a single development (Colonia Paz II). HDC supported FHDC to financially restructure the enlarged project and secure a mix of sources, including 4% low income housing tax credits, tax-exempt bonds, and LIFT funds, to cover total development costs of $33 million.
After financing closed, Colonia Paz II faced construction delays and rapidly escalating construction interest rates. To help address the cost impacts, HDC assisted FHDC to secure an additional bond allocation. To reduce interest costs and ensure rapid project stabilization and timely conversion to permanent financing, HDC’s finance and asset management teams, FHDC, and its affiliated property management company, Evolve, worked together in lock-step to ensure a smooth lease-up on a condensed timeline.
SPONSOR
Farmworker Housing Development Corporation
LOCATION
Lebanon, Oregon
HDC ROLE
Financial structuring
DEVELOPMENT PARTNERS
→ LMC Construction
→ Pinnacle Architecture
→ Raymond James
→ CitiBank
→ Umpqua Bank
→ Oregon Housing and Community Services
FUNDING SOURCES
→ Low income housing tax credit equity (4%)
→ Construction and permanent loans
→ Oregon LIFT funds
→ Oregon Multifamily Energy Program
→ Deferred developer fee
SQUARE FEET
Residential: 96,648
Common Space: 18,304
Total: 114,952
COST
Construction: $23.4 million
Total Development: $33.0 million
TIMELINE
Spring 2019 to Spring 2023