Housing Authority approves purchase agreement for Forest Grove permanent supportive housing site

The Washington County Housing Authority board on Jan. 28 authorized its executive director to execute a purchase-and-sale agreement for a property in downtown Forest Grove that staff said would be developed as permanent supportive housing.

The board voted to approve and authorize the agreement by a 5–0–1 margin, with Director Michael Savara recorded as abstaining. The board’s motion formalizes the authority’s effort to acquire a 1.54-acre (about 67,000-square-foot) site staff proposed for a largely single-adult permanent supportive housing project.

Assistant Director Jill Chen, of the Housing Authority of Washington County, said the authority has identified a downtown Forest Grove site and is in due diligence. “We are thrilled to be able to come before you, for the presentation of a new site for permanent supportive housing,” Chen said during the presentation.

Staff member Lisa Varn described the site and preliminary program assumptions: the lot is a single tax parcel that currently contains a small building and asphalt parking, and is generally flat. “It is anticipated that the PSH property would include up to 60 studio and 1‑bedroom units, currently assumed at 45 and 15,” Varn said. Staff said proposed rents would be regulated at 30% of area median income and that they expect a combination of rental and operating subsidies if state funding is awarded.

In outlining acquisition steps, staff said they submitted a letter of interest and funding applications to Oregon Housing and Community Services (OHCS), Metro, and the Corporation for Supportive Housing. They are conducting standard due diligence including a Phase I environmental assessment, soil review and zoning evaluation. Staff flagged uncertainty related to potential environmental remediation as an outstanding issue that could affect acquisition and development timelines.

Public commenter Dale Feek of Forest Grove spoke in support of the purchase-and-sale authorization, telling the board the project would provide “permanent supportive housing” and urging the board to move forward. Multiple board members expressed support for the location’s proximity to transit and services; one board member said the site is better suited for the target single-adult population than a previously discussed Elm Street parcel.

Director Michael Savara said he would abstain from the vote because of a potential conflict of interest tied to his employment at Oregon Housing and Community Services. The board recorded the action as approved 5–0–1.

Next steps described by staff include finalizing PSA terms, completing due diligence, and pursuing funding awards pending OHCS and Metro decisions.

Details not specified in the meeting record include the exact purchase price and the contract’s closing date. Staff said those items remain subject to final negotiation and to satisfying due-diligence conditions.