Salem Housing Authority unveils plan for affordable homeownership and property dispositions

The City of Salem Council convened on July 14, 2025, to discuss significant developments in affordable housing initiatives, particularly focusing on the disposition of public housing properties and the introduction of new homeownership programs. The meeting highlighted the ongoing efforts to address the city's housing challenges, with a particular emphasis on creating opportunities for low- and moderate-income families.

The session began with a presentation by Jessica Blakely from the Salem Housing Authority, who outlined plans for two multifamily buildings: Shelton Village and Glen Creek Village. Shelton Village, located at 20 Fifth and Lee Street, is set to go on sale this summer after two years of preparation. Glen Creek Village, situated on Orchard Heights Road, is also slated for disposition, with plans to demolish and rebuild it into higher-density housing.

Blakely detailed a broader strategy involving 79 scattered-site properties across Salem and Keizer, which include a mix of single-family homes, duplexes, and triplexes. Instead of selling these properties at fair market value as recommended by HUD, the Housing Authority plans to collaborate with community partners, notably Habitat for Humanity, to convert these homes into affordable homeownership opportunities. Specifically, 33 homes will be sold to Habitat for Humanity at reduced prices, allowing for the potential development of middle housing.

The remaining 46 units will be retained for different homeownership programs, with options such as silent second mortgages to assist buyers who may struggle with financing. This approach aims to create pathways for generational wealth among low-income families, ensuring that homes remain affordable over time.

The council discussed the importance of preferences in the homeownership program, including a veteran's preference and neighborhood-based preferences to support existing residents. These preferences are designed to prevent displacement and maintain community ties, allowing families to remain in their neighborhoods while transitioning to homeownership.

Blakely emphasized the necessity of these initiatives in light of HUD's pressure on housing authorities to reposition public housing assets due to declining federal funding. The council members expressed support for the plan, recognizing the potential impact on affordable housing availability in Salem.

The meeting concluded with a call for the adoption of the proposed plan, which is due for submission to HUD later this week. The council's commitment to enhancing affordable housing options reflects a proactive approach to addressing the city's housing crisis and fostering community resilience.