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Staff reports: Mount Washington redevelopment resumes; vacancy rate edges higher as new units come online
Summary
City staff updated commissioners on multiple housing projects and market indicators: Mount Washington redevelopment is restarting with a new equity partner, several market‑rate and workforce projects are moving forward, multifamily vacancy rose to 3.7% in 2024, and CDBG/HOME funding demand exceeded allocations.
City staff briefed the Housing Opportunities Commission on current housing projects and market conditions on April 9, saying a major redevelopment is resuming after the developer secured a new equity partner and that the multifamily vacancy rate has risen as recent projects have opened.
Peter White, a city staff member, said the Mount Washington redevelopment—work to rehabilitate an existing core structure and add two additional buildings—had paused after a capital partner’s portfolio collapsed late last year. The developer has found a replacement equity partner and staff said permits are in order; the project will include more than 200 units and will be classified as workforce housing.
White said recent openings have increased the city’s apartment vacancy metrics. Citing an industry report that tracks local listings, staff said the multifamily vacancy rate rose to 3.7% for 2024 from 1.2% in 2023. White added the citywide vacancy estimate across all housing types is about 4.7% based on local analyst data.
Staff listed several projects under way or preparing to break ground: the second phase of PNR Properties in the Cannery District; the Paragon project off Highway 53; a Mark Held project on Sessions Avenue (studios and one‑bedrooms) that staff said should be able to be built under forthcoming zoning pathways; and activity in Orchard Hills. White said the Paragon and other projects are contributing to a healthier vacancy level and, in some cases, property managers are offering promotions and specials.
Staff also reported on financing and programmatic constraints. The initial round of CDBG and HOME recommendations will go to council in early May; applications requested more than $1 million while the allocation totals roughly $600,000. White said a developer specializing in the Low-Income Housing Tax Credit (LIHTC) program is seeking sites; the staff noted that scoring rules tied to Qualified Census Tracts limit where projects can viably compete for tax credits. White mentioned a proposed state bill to raise the program funding cap that could improve local prospects.
Commissioners asked about the permanence of subsidized units that lose covenants; staff said conversions or covenant expirations can remove affordable units from the stock unless replaced by new subsidized development. White described nonprofit partners and experienced LIHTC developers who continue to pursue applications but said the long time commitments and restrictions on resale limit private-sector participation.
Staff said they will continue tracking projects, vacancy trends and the CDBG/HOME award process and will present specific vacancy and affordability data at future meetings.
