Good Shepherd Village
DEVELOPMENT SCOPE
New construction of 143 affordable apartment units, including 58 homes prioritized for people who have experienced or are at risk of homelessness.
PROJECT OVERVIEW
Good Shepherd Village is the first regulated affordable housing development within the city limits of Happy Valley, Catholic Charities’ largest development to date, and one of the first projects to receive funds from the 2018 Metro affordable housing bond. The new development contains 143 apartments, ranging in size from studios to three-bedroom units. Fifty-eight permanent supportive housing (PSH) units are prioritized for people who have experienced or are at risk of homelessness, including 15 units prioritized for veterans.
The site design reflects outcomes of a community engagement process involving Asian Pacific American Network of Oregon (APANO), El Programa Hispano Católico, Familias en Acción, and other partners. The three-building development contains community gathering and activity spaces, play areas and protected bike pathways for children, garden beds, and an outdoor kitchen. Residents benefit from nearby access to public transit, grocery stores, schools, a public library, multiple parks, and healthcare resources. Nonprofit Forth Mobility manages an onsite shared electric vehicle and staff-driven shuttle program for residents.
Creative Solutions
One of the challenges facing the Good Shepherd project was a steeply sloping building site. Heavy sitework, including construction of a massive retaining wall and public road, was needed to meet zoning requirements and to create enough buildable area for the project to be financially viable. Entitlement processes and fee waivers commonly granted to affordable housing projects were unavailable in the local jurisdiction, adding to construction complexity and cost.
The project hit tough economic headwinds when construction-loan interest rates spiked after financing closed. To offset an interest cost increase of nearly $1 million, the team pursued a bold strategy of buying materials early, thus eliminating budgeted materials-inflation costs. Knowing this decision foreclosed the option to upgrade finishes later, the team made a last-minute decision to wire the main building for solar and the parking lot for EV charging infrastructure—thus opening a path to use leftover contingency funds for energy upgrades. The investment paid off when construction came in under budget, and a large 166.5 kW solar array and 20 EV charging stations were installed before move-in.
SPONSOR
Catholic Charities
LOCATION
Happy Valley, Oregon
HDC ROLE
Financial structuring and construction management
DEVELOPMENT PARTNERS
→ Walsh Construction
→ MWA Architects
→ U.S. Bank
→ Banner Bank
→ Oregon Housing and Community Services
→ Metro
→ U.S. Department of Housing and Urban Development
→ Housing Authority of Clackamas County
FUNDING SOURCES
→ Low income housing tax credit equity (4%)
→ Tax-exempt bonds
→ Oregon PSH capital funds
→ Oregon Multifamily Energy Program
→ Metro affordable housing bond funds
→ Seller’s note
→ Deferred developer fee
→ Sponsor capital contribution
SQUARE FEET
Residential: 106,403
Common Space: 26,629
Total: 133,032
COST
Construction: $42.0 million
Total Development: $63.8 million
TIMELINE
Winter 2020 to Fall 2023