Salem City Council to vote on millions in bond spending for affordable housing

Salem City Council is set to vote Monday on moving millions of infrastructure bond dollars to two large affordable housing developments planned in the city.

In 2022, Salem voters approved a $300-million infrastructure bond to fund new roads, sidewalks, libraries, and parks. The bond included $10 million set aside for expanding affordable housing.

Two motions during Monday's meeting aim to put some of that $10 million to use.

Council will vote on whether to approve an allocation of $3 million from the bond to pay for improvements to land at the intersection of Joseph Street SE and Aumsville Highway for a 183-unit affordable housing complex. Neighborly Development, the developer behind the Jory Apartments and the Cornerstone Apartments, requested the money to fund offsite improvements, including street, water and sewer infrastructure.

"Due to bond requirements, these funds can only be expended on improvements that will stay in City ownership for the life of the bond," city staff said in a report to council.

The proposed development consists of two phases with the first phase entailing 183 affordable units.

The project is also dependent on receiving LIFT funds through Oregon Housing and Community Services.

If funding is secured, construction will begin in spring 2025.

The affordability level for this project will be 60% of the area median income. Anticipated rent for a one bedroom is $1,028 per month, staff said in the report.

Council will also vote on whether to use $3.4 million in bond funds to acquire the 10-acre property on 23rd Street and between D Street and Center Street from Salem Health and $400,000 for structure pedestrian improvements on D Street.

A development planned for the land, the site of the former Salem General Hospital, could bring as many as 200 affordable housing units.

The first phase of development will include 120 affordable housing units designed for families. The next phase will add as many as 80 more units and a child care facility.

Developers said the apartments will be built with the needs of the community in mind, with lots of community space, a basketball court, bike path, in-unit washers and dryers, dog run, a playground and community building.

In late 2023, the city agreed to buy the land from Salem Health for $3.8 million.

The city then entered into a purchase agreement and lease with Green Light-Home First to sell the property to Green Light to allow them to develop the property for affordable housing.

City leaders said they wanted to retain ownership of a 50,000-square-foot area within the property. The area is subject to a historic designation and can only be used or developed for passive recreation purposes.

In a report to council, city staff said Salem Health has indicated a desire to assist Salem in preserving and protecting the conservation area and has agreed to reduce the purchase price by $400,000 to facilitate that goal.

Other Salem City Council agenda items

• Councilor Virginia Stapleton's resignation as council president. Stapleton, who was elected in 2020, opted to not seek reelection and is running for office in the Oregon Legislature. In a letter to council, Stapleton said she feels like it is time to step down as president and transition into new leadership. She will remain on the council until her term ends in January. After accepting her resignation, council will vote for a new council president.
• A motion from Mayor Chris Hoy regarding modifications to the Multiple Unit Housing Tax Incentive Program to require transparency documentation of the identity of each contractor, subcontractor and companies performing work on projects getting tax breaks from the city. The motion was made after allegations of wage theft and unethical business practices were made by subcontractors connected to projects helmed by Deacon Development.

How to participate in the Salem City Council meeting

The meeting is at 6 p.m. It will be held in person in the City Council Chambers at the Salem Civic Center, 555 Liberty St. SE, and can be watched on Comcast Cable CCTV Channel 21 or on the Salem YouTube channel in English/American Sign Language and Spanish .

Those wishing to comment in person can sign up on the rosters at the chamber entrance before the start of the meeting.

Written public comments on agenda items can be emailed by 5 p.m. Monday to cityrecorder@cityofsalem.net . Or preregister between 8 a.m. and 2 p.m. Monday at cityofsalem.net/Pages/Public-Comment-at-Salem-City-Council-Meeting.aspx to speak during the meeting via Zoom.

For questions, comments and news tips, email reporter Whitney Woodworth at wmwoodworth@statesmanjournal.com , call 503-910-6616 or follow on X at @wmwoodworth

This article originally appeared on Salem Statesman Journal: Salem City Council to vote on millions in bond spending for affordable housing