The city of Wilsonville held a groundbreaking ceremony for a mixed-use affordable housing development at the Wilsonville Transit Center on Monday, Aug. 26.
Scheduled for completion in late 2025 or early 2026, the mixed-use building, named Vuela, will have 121 affordable housing units. The ground floor will include space for Wilsonville Community Sharing, a local social service organization that operates a food bank, a coffee shop and a welcome center for South Metro Area Regional Transit (Wilsonville’s transit provider).
According to a press release, the Transit-Oriented Development project is funded through $28.4 million in state tax-exempt bonds issued by Oregon Housing and Community Services, $24.6 million in equity from federal low-income tax credits also allocated by OHCS, $8 million from Metro Affordable Housing Bond funds awarded through Clackamas County and $250,000 from a Metro Transit-Oriented Development grant. The ground floor amenities will be funded with a $1.9 million grant from the Oregon Legislature.
Wilsonville Senior Planner Kimberly Rybold said the total cost of construction is $57 million. The amount of funding for the project amounts to over $63 million, which Rybold said accounts for ongoing operating expenses beyond the cost of construction.
The city of Wilsonville sold the 1.3-acre property to developer Palindrome for $1, and is subsidizing $1.4 million in System Development Charges. These are one-time fees charged to developers to help the city fund infrastructure projects.
Vuela will have affordable housing options for households making between 30% and 80% of the area median income. A recent housing analysis shows that 24% of Wilsonville residents earn 30-60% of the median family income for Clackamas County, and 11% earn 60-80% of the median family income.
The analysis showed less than a quarter of Wilsonville residents can afford new homes near the median sales price, which is $585,000 in Wilsonville. It also said that 55% of Wilsonville renters are cost burdened or severely cost burdened. As a whole 38% of the city’s residents are cost burdened, and half of that number are severely cost burdened. A household is considered cost burdened if 30% or more of income is spent on housing, and severely cost burdened if 50% or more of income is spent on housing.
“We are thrilled to reach the construction stage of an important project that is addressing a regional housing shortage and providing new opportunities for individuals and families to find stability in Wilsonville,” Fitzgerald said in the press release. “Wilsonville is delivering on Oregon’s biggest need with a project that will empower people by providing new, more affordable homes that have broad access to transit and supportive services.”
Fitzgerald and Rep. Courtney Neron, D-Wilsonville, said a goal of the project is to provide units large enough to accommodate families.
“This will stabilize our communities, our community members, and provide safe, accessible housing for so many people who are looking for it now,” Neron said at the groundbreaking ceremony.
Neron described the new building as an “incredible community asset” for Wilsonville.
“As many of you know our region and state continue to face significant challenges when it comes to affordable and achievable housing,” Neron said, adding that the rising cost of living poses increasing challenges for people to find stable housing. “This transit-oriented development is another crucial step forward in addressing this issue.”
Sen. Aaron Woods, D-Wilsonville, said the project is “exactly the kind of thing that we need,” in providing affordable housing for the community.
“This project isn’t just about housing. It’s about creating a vibrant community with amenities like the SMART welcome center, outdoor plazas and permanent housing once again for Wilsonville Community Sharing,” Woods said at the groundbreaking ceremony, adding that he commends the city of Wilsonville for ensuring the project meets the needs of the community with its “visionary approach,” and by providing land and subsidizing costs. “The project shows what we can achieve when state, regional and local governments, private developments and community organizations come together.”
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