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Springfield staff previews use of $620,000 ARPA housing funds; $500,000 proposed for two Deb Northwest projects
Summary
City staff described plans to convert federal ARPA funds passed through the State of Oregon into affordable housing at two Springfield addresses and said contract approval will return to council for a later vote.
City staff told the Springfield City Council work session that $620,000 in one-time federal American Rescue Plan Act (ARPA) funds allocated through the State of Oregon are available for local affordable housing and that staff proposes converting $500,000 of that amount into two projects to be developed by Deb Northwest.
Nancy Newton, a city staff member presenting the item, said the two proposed sites are listed in staff materials as 190 South 40 First Street and 1577 Laura Street and that both projects would be constructed by Deb Northwest, a nonprofit developer the city has used previously. Newton said the remaining $100,000 of the ARPA allocation would be reserved for an additional potential project that is not yet ready to move into construction.
The presentation emphasized that the funding must be expended by Dec. 31, 2026, and that staff will return to council with a formal contract for approval. Newton said the two pipeline projects would produce 13 units; staff will provide income-target percentages and a corrected scope-of-work item (item e) before council considers the contract. Newton also noted the item had been scheduled for consent on the May 5 agenda but that staff expects to set aside time for council discussion when the contract returns.
Councilors asked procedural questions. Councilor Weber asked whether a separate property the mayor referenced was included in this funding; Newton said she would check. Weber also asked about disbursement timing and expressed concern about compliance if funds cannot be fully expended by the deadline; Newton said the funds pass through the state, carry quarterly reporting requirements, and that qualification for reimbursement can depend on factors such as issuance of occupancy permits. Newton said she was confident the developer could advance the pipeline projects and that specific affordability levels would be supplied to council before action.
No formal motion or vote was taken at the work session; staff characterized the meeting as a conceptual conversation and said a contract will be brought forward for formal council action at a later date.
