Washington County Housing Authority approves Forest Grove purchase for permanent supportive housing

The Housing Authority of Washington County on Jan. 28 authorized its executive director to execute a purchase-and-sale agreement for a 1.54-acre, 67,000-square-foot property in downtown Forest Grove intended for a permanent supportive housing (PSH) development.

The board vote approved the measure 5–0 with one abstention after staff described the site and development plans and public commenter Dale Feek urged the board to approve the acquisition. "I wanna just give my support for an action item ... the approval and resolution you're authorizing the housing authority executive director to enter into the purchase and sale agreement to purchase property in the city of Forest Grove for the future development permanent supportive housing," Feek said.

Housing Authority staff presenters said the Housing Authority of Washington County (HAWC) proposes to be the developer and owner of the Forest Grove Permanent Supportive Housing project in collaboration with Central Cultural and CareOregon. Lisa Varn, a housing authority presenter, told the board the project would serve "households with disabling conditions that experience or are at risk of prolonged homelessness," and said the development would target a population that is largely single adults and couples with high supportive needs.

Staff said HAWC secured a letter of interest on the site in late December and that early project assumptions call for up to 60 regulated units—about 45 studios and 15 one-bedroom units—with rents limited to 30% of area median income. The site currently contains a small building, an asphalt parking area and unimproved land; it is a single tax lot staff said is generally flat and located on a commercial corridor near TriMet frequent bus service, shopping, Pacific University, an Open Door Access Center, a senior center and library.

Board members and staff described due diligence work now underway: a Phase I environmental survey, a hazardous materials review, zoning evaluation and other site assessments. Staff said the acquisition and development are contingent on pending funding applications submitted at the end of December to Oregon Housing and Community Services (OHCS), Metro, and the Corporation for Supportive Housing, and that operating and rental subsidies from the state would be expected as part of project financing.

Several commissioners voiced support. Commissioner Snyder said the project map showed a strategic location; another director said she would abstain from the vote "out of an abundance of caution" because she works at Oregon Housing and Community Services and did not want a conflict of interest. Chair Harrington and other directors emphasized the project team has revisited prior site choices (including an Elm Street property) and determined the downtown Forest Grove site better matches the access and services needs of the target population.

Staff also told the board Metro previously declined to pursue the Forest Grove site because a separate contract encumbered it; that contract has since ended, staff said, allowing HAWC to move forward with negotiations. Staff emphasized environmental remediation remains an uncertainty and will be addressed during due diligence.

The board approved a motion to "approve and authorize the execution of a purchase and sale agreement to purchase a property in the City of Forest Grove for the development of permanent supportive housing project." The motion passed 5–0–1 (five in favor, zero opposed, one abstention).

Next steps listed by staff were finalizing the PSA terms, completing due diligence (including environmental review), pursuing the pending funding awards, and continuing community outreach and stakeholder engagement prior to closing.