Golden Eagle II
DEVELOPMENT SCOPE
Financially preserve and renovate an RD-financed apartment complex that provides affordable homes to very-low-income and low-income households. The rehab added one unit to the formerly 32-unit property.
PROJECT OVERVIEW
Golden Eagle II is an important source of rent-restricted affordable housing serving Oregon’s north coast. The 33-unit apartment complex, built in 1975, comprises seven buildings on two sites located a half-block apart. Residents are primarily very-low-income families and singles, including many seniors on fixed incomes. Golden Eagle II had a for-profit owner when, in 2016, the landlord filed a request to prepay the property’s USDA Rural Development loan. Had the request been approved, rents would have been allowed to rise to market rate.
HDC worked with nonprofit housing provider Northwest Coastal Housing (NWCH) to acquire Golden Eagle II and preserve the project’s affordability. Many partners, including resident activists, elected officials, the nonprofits such as the Oregon Law Center and social services provider CARE Inc., took part in the preservation effort. HDC helped NWCH to plan and manage the preservation process, from assessing the property’s physical needs to negotiating property-transfer conditions with the owner, lenders, and public funders.
Creative Solutions
Finance. Properties financed with Rural Development (RD) loans are subject to unique funding and procedural requirements. HDC supported NWCH to navigate these requirements, working with multiple funding partners. The team scored an important win when, in 2021, USDA agreed both to extend the project’s RD loan for 30 years and to expand rental assistance from 19 units to all 32. Commitments of 9% low-income housing tax credits and General Housing Assistance Program funds from the State of Oregon rounded out the financing package.
Design and Construction. HDC and NWCH worked with BDA Architecture & Planning and LMC Construction to plan and manage a comprehensive physical rehabilitation of the Golden Eagle II apartments. The construction team made it a priority to minimize disruption to residents. All seven buildings received complete envelope replacements, and apartment units were enhanced with interior upgrades. The scope of work also included installation of new water supply lines, new ventilation and lighting systems, improved outdoor walkways and other outdoor improvements, and a new game room and laundry area.
SPONSOR
Northwest Coastal Housing
LOCATION
Tillamook, Oregon
HDC ROLE
Financial structuring and construction management
DEVELOPMENT PARTNERS
→ LMC Construction
→ BDA Architecture & Planning, P.C.
→ Oregon Housing and Community Services
→ U.S. Department of Agriculture
→ U.S. Department of Housing and Urban Development
→ Housing Assistance Council
→ Redstone Equity Partners
→ Tillamook County
→ HDC Community Fund
FUNDING SOURCES
→ Low income housing tax credit equity (9%)
→ Oregon GHAP funds
→ HUD CPF-EDI funds
→ Tillamook County funds
→ USDA Rural Development 515 Loan (permanent mortgage)
→ USDA rental assistance
→ Construction loan
SQUARE FEET
Residential: 20,266
Common Space: 926
Total: 21,192
COST
Construction: $5.9 million
Total Development: $11.4 million
TIMELINE
Fall 2019 to Spring 2023