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Astoria adopts $500,000 housing initiative and resiliency grants to spur multifamily development
Summary
The council adopted a Housing Initiative Program (HIP) and Community Resiliency Program using fund 1140 (about $500,000) to offer low-interest loans (typical award $100,000) and matching resiliency grants to incent duplexes, triplexes, fourplexes and multifamily projects; deed restrictions and loan forgiveness are possible for projects meeting workforce housing goals.
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The Astoria City Council voted Oct. 20 to adopt a Housing Initiative Program (HIP) and a Community Resiliency Program intended to leverage a flexible city fund to encourage housing development and support community nonprofits.
City Manager Spence said the city has set aside about $500,000 in fund 1140 for the initiative. The program would offer low-interest loans typically capped at $100,000 to support “missing middle” housing (duplexes, triplexes, fourplexes, cottage clusters and multifamily projects). Spence said the program also reserves $100,000 for a Community Resiliency Program that would provide $20,000 matching grants on a one-for-one basis.
“If applicants can meet desired project characteristics such as building 10 or more units, keeping the cost down per unit … meeting workforce housing goals, then a portion of that loan could be forgiven or potentially more than $100,000 could be allocated,” Spence said.
During council discussion, members asked whether renovation of existing structures would qualify. Spence answered that renovations and conversions could be eligible and that deed restrictions or development agreements could be required to secure long-term affordability. He said the city defined workforce housing for the program as households at 60 to 100 percent of area median income (AMI).
Public commenters raised enforcement and prioritization questions. Lisa Morley (Aldenbrook Neighborhood) said a previously marketed waterfront project that had been described as workforce housing now rents units for about $2,600 per month and asked who enforces restrictions on developers. Spence replied that the waterfront development was privately funded and therefore not subject to city-funded deed restrictions.
The council adopted the HIP and Community Resiliency Program and directed staff to bring a resolution renaming fund 1140; Councilor Lampe moved the adoption and Councilor Mozzarella seconded.
Nut graf: The package aims to use a modest city loan and grant pool to incentivize small-scale multifamily and renovation projects that meet affordability and workforce targets, while allowing deed restrictions and other contractual tools to preserve affordability when public funds are used.
Council members also discussed establishing an evaluation timeline; several suggested reviewing the program’s results after about a year to decide whether to adjust loan sizes, eligibility or other elements.
The program will be implemented by Community Development staff, who will publish application materials and may include deed restrictions or contract terms on projects that receive loan forgiveness or larger awards.
